GREENER, SAFER, SMARTER Considerations in Building a Smart Grid Communications Network John Eichhorn, CFO November 2010 Agenda • • • • • • • • Background on Tropos What’s a Smart Grid? Smart Grid Communications Strategies Smart Grid – A Network of Networks Distribution Area Network Considerations Multi-use Networks Customer Highlights Q&A © 2010 Tropos Networks, Inc. | Page 2 TROPOS End-to-End Smart Grid Wireless Mesh Communications Founded in 2000 Headquarters in Sunnyvale, CA Focus Areas: - Security - Reliability - Resiliency - Scalability - Ease of use - Total Cost of Ownership - Partnerships ©©2010 2010 Tropos Tropos Networks, Networks, Inc. Inc. | Page 3 3 PROVEN TECHNOLOGY 30 patents; additional 30 pending +750 customers 30 countries ©©2010 2010 Tropos Tropos Networks, Networks, Inc. Inc. | Page 4 4 Smart Grid: Enter Your Definition Here Demand Response AMI Renewable Integration SMART GRID Field Data Applications Outage Management PHEV Management Distribution Automation Power Quality and Planning Distributed Intelligence, Automated Controls, Broadband Communications © 2010 Tropos Networks, Inc. | Page 5 Selecting a Communications Strategy Traditional Approach • Network per project – Build/pay as you go • • • • SCADA AMI Distribution Automation Field data applications,… © 2010 Tropos Networks, Inc. | Page 6 Strategic Approach • Layered communications architecture • Supports for current plus future smart grid apps Strategic Approach = Better Long-Term ROI Extended Utility Roles Expected Value Demand Response Distribution Operations & Automation AMI Source: AEP © 2010 Tropos Networks, Inc. | Page 7 Initial Capital Outlay • Meter functionality • Communications infrastructure • Head-end & legacy systems modifications Incremental Capital Commitment SmartGrid = Network of Networks HAN Neighborhood Area Network AMI Network Distribution Area Network Distribution Area Network Core Network Utility Core Systems Demand Response PHEV Station Power Quality Sensors © 2010 Tropos Networks, Inc. | Page 8 Outage Management Distribution Automation Mobile Applications SmartGrid Considerations Distribution Area Networks are challenging Application Latency Bandwidth (msec) (kbps) 10's 100's 1000's <56 <56 56 1000's <56 100's 100's 100's 100's 100's 100's 10's <56 56 <56 <56 <56 1000's 1000's Reclosers Capacitor Bank RTU Motor Operated Disconnect Line Regulator Advanced Metering IDR Demand Mgmt MWM Voice MWM Data Aggregate © 2010 Tropos Networks, Inc. | Page 9 Addt’l high traffic apps: • Substation Video • PHEV Station • Mobile GIS • AVL …more in the future SmartGrid Considerations (cont.) Own Rent • Capital expense • Low capital, pay-as-you-go • High reliability • Less reliable • Utility controlled - coverage, capacity, priority, security • Limited visibility, no control over coverage, capacity, priority, security • Cost effective for multi-use • Limited economies of scale © 2010 Tropos Networks, Inc. | Page 10 Opportunities for Greater Community Value Efficient, on-time public transport Enhancing education Enhancing revenue capture and improving $ visitorRE experience Improving public safety Mobile data access for city workers Timely information for city visitors Conserving resources/ reducing carbon footprint Reducing traffic congestion and carbon emissions Building economic development © 2010 Tropos Networks, Inc. | Page 11 Community-wide mobile Internet access Funding Options • Utility’s own budget • Pooling multiple city departmental budgets • Grants – Smart Grid, public safety, traffic, … • Bonds • Performance-based contracts © 2010 Tropos Networks, Inc. | Page 12 Glendale Water and Power Nation’s First ARRA Smart Grid Grant Recipient • ARRA Smart Grid award - $20M; total project $51M • Phase 1: smart meters - 85,000 power and 33,400 water • Wireless broadband network aggregates communications for utility applications • Additional smart grid applications: distribution automation, thermal energy storage, demand response • Other city departments plan to leverage network © 2010 Tropos Networks, Inc. | Page 13 Tropos Networks Inc. Company Confidential Burbank Water & Power Creating a Smart Grid to Manage Demand and Minimize Capital Spending • Smart meter (power and water) • Power conservation through automated demand response program • Delaying construction of new power generation • Enables direct load management and customer curtailment • Mobile access to work orders and real-time data • Other city departments plan to leverage network © 2010 Tropos Networks, Inc. | Page 14 Rock Hill Utilities Single Cost-effective Network for Multiple City Services • AMR/AMI network projected payback, 7–8 years • Customers can monitor power and water usage encouraging conservation • Utility workers have easy access to information in the field, reducing repair times • Mobile police and fire access information and file reports improving efficiencies © 2010 Tropos Networks, Inc. | Page 15 United Arab Emirates Efficient Management of Scarce Resources Emirate-wide • Wireless mesh network used to read 1.5 million power and water meters in urban, suburban and rural areas • Smart grid applications include AMI, realtime SCADA substation control, distribution automation, street light control, broadband connectivity for mobile workers, substation video security • Upon completion the network will cover 5,000+ square kilometers © 2010 Tropos Networks, Inc. | Page 16 Avista Distribution Automation Project to Reduce Outage Time • $42 M Spokane Smart Circuits Project includes $20M DOE grant funding; communications ~15% of budget • Project goal - faster pinpointing of faults in distribution feeder lines to reduce outage times • Tropos network for 16 substations and distribution automation (~450 DA devices) • Opportunity to extend and leverage network for AMI and Mobile Workforce © 2010 Tropos Networks, Inc. | Page 17 Multi-Use Networks Improve Efficiencies – Simplifies network management and control, reduces redundant infrastructures – Mobile workers have access to current information – work orders, GIS data, … – Improves workflow efficiency Reduced Operating Costs – Reduces OPEX – Replaces costly recurring communications costs: T-1 lines, cellular, … Deliver Broad Community Benefit – Utility applications - Smart Grid, Water, Gas – Municipal departments – public safety, transportation, …. © 2010 Tropos Networks, Inc. | Page 18 Q&A GREENER, SAFER, SMARTER John Eichhorn, CFO john.eichhorn@tropos.com (408)331-6802 or ir@tropos.com November 2010