Welcome to the second part of interview with Shawn Papi, Senior Advisor at ESKOM Holdings.

In this segment, we explore the communication standards and technologies shaping smart metering in Africa. Mr. Shawn sheds light on the lessons learned from successful deployments, the role of policy in driving adoption, and how customer engagement is being handled to ensure smooth transitions.

If you missed the first part of our interview, you can catch up on it here.

Which communication standards and technologies are most used for smart metering systems in Africa and how are distribution companies ensuring interoperability of communication systems across different regions?

As for the communication between the meter and the customer interface unit, typically, it’s G3PLC, but we’ve taken the position that it will be up to the manufacturer. At the end of the day, we cannot buy a customer interface unit from another supplier. So, if the meter comes with a customer interface unit, our position is that the link will be proprietary. But the meter’s interface to the back office, to a data concentrator, will be standard.

I’ve seen products using M-Bus, for example, between the meter and the CIU as well.

We use both PLC and the mobile network. So, where installations require SIM cards and public networks, we use that. Where we can use PLC, we use PLC.

It depends on the type of installation. For example, if you have a customer in a rural area with a transformer dedicated to their premises, you can’t install a concentrator in a meter for just that customer—it’s too expensive. In that case, you simply put a SIM card there, which is much more affordable. But for dense areas with a lot of customers close to each other on a single transformer feeder, a data concentrator makes sense. You can put a lot of those meters on the DC and use one SIM card, one public network channel, to transmit that data.

As for our experience with PLC, particularly in substation regions, communication has been successful overall. I don’t have exact figures, like 90% or more, but I can tell you we started with G1 PLC in the early days, and we had a lot of problems because it used a single carrier channel for PLC information. Whenever there was noise blocking that band, we had no communication at all. That’s why we moved to G3 PLC.

So far, we haven’t encountered many issues. There have been a few cases, like customers with inverters, but that’s usually more about network configuration than the technology itself. By optimizing the attributes of the G3 PLC network for those specific installations, it works well. We haven’t had drastic problems.

Another key learning is the number of meters a data concentrator can handle. We found that we need to tune the parameters or attributes to ensure optimal performance as the number of meters per DC grows. If we don’t manage that, it creates congestion, making it seem like there’s insufficient bandwidth, but it’s actually due to the setup of the G3 PLC parameters.

So those are some lessons we’ve learned, but overall, we’ve had good performance from G3.

Are we satisfied with G3 PLC communication? Yes. We do have some solar panels on customers’ roofs in certain PLC regions, but it’s not widespread.

Is the use of G3 PLC communication cheaper than using mobile communication? Yeah, look, we haven’t crunched the numbers, but it seems to be the case because it costs more to deploy SIM cards. There’s also a risk that thieves might break into the meters and try to retrieve the SIM cards to use them in their devices. Whether or not they’re successful, that risk is still there.

But with PLC, we reduce the number of SIM cards in the field, and that helps a lot. We haven’t done a direct comparison of the amount of data transmitted through a DC versus using multiple meters with SIM cards, but just from observation, it seems like PLC is more cost-effective.

Our first choice is G3 PLC communication, and only when it’s not practical do you use mobile communication.

I just wanted to add that the base technology we use is DLMS. In the future, if other technologies emerge that we can’t connect to, we’ll adopt them as long as they have a DLMS profile. For example, there’s a drive towards NB-IoT, and we’ll take a look at that. As long as it’s backward compatible with the DLMS model we’re using, it’s an option we can explore as well.

There are installations with 3G, with GPRS as a backup. Recently, we’ve mandated 4G, again with GPRS as a backup. There is a drive, primarily from the telcos, not the utilities, to switch off GPRS. So, in that case, it will just be 4G with 3G as a backup. But at the moment, 2G or GPRS base stations are still active and operational. So, our backup is still GPRS, but primarily, we use 3G.

4G coverage is very good in South Africa, so we are well covered. As I mentioned, there are still base stations with 2G in areas where, perhaps, the signal strength isn’t good enough. GPRS tends to cover longer distances compared to the newer mobile technologies. In that case, one might still use it, and because of the lower bandwidth, it tends to be cheaper to transmit data over GPRS. So, in certain cases, it’s worth considering. But overall, 4G coverage is quite good at this time.

The biggest challenge with NB-IoT isn’t the technology itself but its availability from the telcos. There aren’t enough telcos that have switched on NB-IoT yet, maybe because they haven’t seen a business case for it—I’m not sure. But we’ve already considered it, and we are aware that there is a DLMS profile, for example, for NB-IoT. So, it’s something we’re looking forward to.

We picked up on NB-IoT way back, I think around 2015, when Vodafone was pushing for its adoption—not only in South Africa but globally. At that point, we were already aware of it, but we couldn’t move forward because there weren’t enough telcos supporting it.

I think on the continent, we lacked a unified standard for some time. In Nigeria, I know recent projects use open standards based on IEC, mainly using NB-IoT and GPRS. In some cases, they use M-Bus between meters and the CIU. But there are also many installations using proprietary solutions for wireless communication, and some are using proprietary PLC.

I know in Rwanda, there are installations with broadband PLC, which is proprietary. So, there isn’t a unified set of technologies or standard technologies across the continent yet. AFSEC is trying to get a standardized, open set of communication protocols across the board, but at the moment, there’s a huge variety, including both open and proprietary standards.

The goal is to have this new standard published by the end of the year, and it is expected to be widely adopted by other African countries. For example, Nigeria has set up a manufacturing plant, and Ethiopia has one as well. Egypt might be going that route too. With a single set of common communication standards that are interoperable, it will be possible to trade within the continent and possibly beyond. Even if manufacturers from Europe or the U.S. invest on the continent, there will be a clear set of requirements, allowing technology providers to invest wisely based on a market they are sure of.

The goal of this standard is to create that clarity. It’s an initiative driven by African utilities, and my belief is that they’ve realized the disadvantages of using proprietary solutions, which is why they’ve pushed for this standard. Once it’s published, the aim is to widely adopt and use it across the continent.

Regarding meter manufacturing in Africa, there are a few locally manufactured meters, but very few factories on the continent. The majority comes from international manufacturers. Ethiopia, Nigeria, Egypt, and South Africa have local manufacturers at this point in time. Several other African countries are also looking into it.

From the few interactions I’ve had with European experts, performing rollouts using mobile technology like NB-IoT and LTE-M has been raised as an issue. One thing I’ve noticed as a response from PLC technology developers is that they’ve now come up with hybrid PLC, combining RF and PLC on the same chip. I’m assuming this is because they’ve also recognized the potential problems with PLC and have augmented it with RF. So, just from observing that, I agree that the move is generally towards wireless technologies.

However, it’s important to note that in Europe, there’s likely very good infrastructure for mobile networks now, which might not be the case in Africa. What we’re doing now is laying a solid foundation with open standards, so if we need to migrate to these newer technologies in the future, we’ll be able to do so.

The infrastructure in Africa isn’t the same as in Europe, which could be a hindrance. And, of course, the pricing isn’t the same either. European operators already have the infrastructure in place, so they’re able to reduce costs for using that infrastructure. They have an abundance of it, making it cheaper to attract customers.

We’re still building that infrastructure here, but once we get to that point, we’ll have a good foundation for transitioning. In my view, it’s important not to be locked into one technology. If better technologies come up, we must be able to migrate to them, while also considering the economics and other factors.

What initiatives or partnerships are in place to accelerate smart metering deployment and what role does policy or regulatory reform play in the modernization of distribution networks in Africa? How is customer engagement being addressed in the smart meter rollout to ensure smooth adoption?

At the moment, as I said, we lack regulation, but I think AFSEC, as a standardization organization within the African Union, is well positioned to influence policy, at least at the continental level. We’ve started looking at policy contributions in that respect, and hopefully, in the next few years, that will materialize. As I mentioned earlier, there are a lot of benefits for distribution operators in using smart meters, and those benefits have been realized. The only thing we need now is some policy and regulation to drive the market forward and ensure implementation. But at this point, there’s no regulation in place—it’s just a few organizations driving this agenda.

From a South African perspective, the government recently issued a national tender. It wasn’t from ESCOM, but from the national treasury, particularly aimed at municipalities that are not operated by ESCOM, to enable them to purchase smart meters. The goal is to allow these municipalities to use the technology to efficiently collect revenue. That tender has gone out, and a number of manufacturers have been listed on the panel. So, when you look at that, it becomes clear that even at the governmental level, there’s a clear goal to implement this technology and a clear understanding of its benefits. Once these kinds of initiatives start running and prove successful, I believe policy and regulation will follow.

So, we don’t have a concrete policy yet, but we do have a few initiatives involving the government, and hopefully, those will lead to policies. In terms of partnerships, I’m mostly involved in standardization, and I know the IEC has been very active. They’ve helped us with several trainings, webinars, and knowledge transfers to ensure we’ve got the standardization part right. I’ve mentioned the DLMS UA, which has been a huge support by giving us access to experts from manufacturers, system integrators, and others in that space. The G3 PLC Alliance and the Prime PLC Alliance have also been very supportive. In some instances, they’ve created webinars specifically to address African questions, which has been very helpful.

Going forward, hopefully, we can formalize some of these partnerships. There’s also an important issue around conformity assessments for smart metering, to ensure that we get quality products on the continent, whether they’re from international or local manufacturers. That’s a gap we currently have, but entities like PTP in Germany and NMI in the Netherlands are actively helping us build capacity for conformity assessments. So, we’ve got some foundational elements, but we don’t have a solid policy or regulation yet. However, I believe that as the standard gets published and these rollouts increase, policy and regulation will follow.

We have the African Union, but the best they can do is provide policy for such technologies. As I mentioned earlier, we’ve been requested within AFSEC to put together a document on policy recommendations regarding the technologies that AFSEC covers. That document will go directly to the African Union, which includes representation from many, if not all, countries in Africa. From there, I think it will trickle down into regulation in each country.

From my own observation, governments, especially recently, are becoming motivated and are seeing the benefits. The main issue is that it’s becoming more and more expensive for DSOs to collect revenue. Smart meters will help by providing more accurate bills and making the collection of readings more efficient, which means we’ll be able to produce bills faster.

One major topic is energy theft, which is a concern not just for utility personnel but also for governments. As energy theft becomes more widespread, governments are losing a lot of revenue, and infrastructure is being damaged. They see that smart meters will provide a way to monitor the low voltage network for tampering and notify utility operators. The quality of supply will also improve, as smart meters will give us real-time visibility into the status of the networks, allowing us to respond to faults more quickly. Previously, we only had visibility up to the medium voltage networks, but not much on the low voltage networks. That’s where most energy theft and infrastructure damage occur, so having visibility at that level is really beneficial.

Customers are also becoming more demanding when it comes to information about their energy usage. This is in line with the spread of information through smartphones—people are aware of many things, and it’s inevitable that they’ll also demand more knowledge about their electricity consumption. Communication with meters, near real-time, will provide that kind of information to customers as well.

So, from an African context, the main benefits are related to revenue and the operational efficiency of distribution networks.

We mainly engage with customers before rolling out smart meters in any area. We hold customer engagements, and there are media drives on TV and, these days, on social networks to try and educate customers about the technology. We organize these engagements per area before the smart meters are rolled out. We also provide brochures at the time of installation to ensure that customers understand the product they’re receiving. Additionally, we conduct a lot of training for customer support staff so they understand the technology before it’s rolled out.

As for customer engagement with the smart meters, it’s mostly about managing prepayment. Even the smallest customer in a rural area is aware that when they see a zero, there’s a problem. Especially for those who don’t have a lot of money, we’ve seen that they do monitor their daily consumption. We receive complaints that maybe the meter isn’t accurate enough, and they get that information from the CIU (customer interface unit) by monitoring their consumption. So yes, they do interact with it, and they also check the last token that’s been inserted.

Recently, we’ve also had a drive to change meter keys, and we’ve handed out additional tokens to customers. We’ve been getting feedback on that, showing that they do interact with their CIUs. For high-end customers, especially those with PV installations on their roofs, they also monitor whether their prepayment credit increases or decreases depending on whether they’re consuming from their own supply.

Regarding utility ownership in Africa, there’s a mix. Many utilities are government-owned or public-owned, but in some countries, especially in West Africa, there are privately owned energy distributors. Some of these are owned by international companies with shares in local utilities, and there are also locally owned ones as well.

What is the most important lesson you have learned throughout your career?

You must be open to continuous learning. If you’re too stuck in your ways and in the knowledge you already have, you’ll stay in the same place. You have to be open to absorbing and learning new things. Especially in the current environment with artificial intelligence and all these new technologies emerging, one has to continuously adapt and gain new knowledge.

For me, what has worked in my career is being able to quickly learn and being open to learning from other experts. That’s why I’ve found myself in many standardization committees—I realized there’s a lot to learn from other experts who have been engaged in these topics for years. They help speed up your learning. So, for me, it’s about gathering knowledge as much as possible and staying up-to-date in your field.

Conclusion:

Smart metering systems in Africa primarily use G3 PLC and mobile networks (3G, 4G) depending on the area and infrastructure. However, interoperability between different regions is still a challenge due to the lack of unified communication standards.

Although G3 PLC is widely adopted and efficient, utilities are open to integrating emerging technologies like NB-IoT, as long as they are backward-compatible with the existing DLMS profile.

While regulation for smart metering is currently lacking in many African countries, initiatives by governments and organizations such as AFSEC are underway. The push for standardization across Africa is crucial to enable seamless integration and ensure that future technologies can be adopted without major disruptions.

Question for the audience:

What do you think are the key factors that will drive the adoption of new technologies like NB-IoT in African smart metering systems?