In the sixth webinar of Smart Talks with Jovan, we had the pleasure of hosting esteemed guests Mr. Daniel Bungey, Future Energy Leader at World Energy Council and a past recipient of the Young Energy Professional Award (Sub-Saharan Africa) from the AEE, Mr. Shawn Pappi, a Senior Advisor for ESKOM Holdings, and Mr. Klemen Belec, a Chairman of the DLMS UA Technical Board.
During this engaging session, we explored various topics, including the critical role of governments, utilities, and international partners in accelerating smart metering rollouts, the importance of regulatory frameworks, and the potential of adapting international standards to meet Africa’s unique challenges.
What do you think, how can government, utilities and international partners accelerate large-scale Smart Metering rollouts and ensure widespread adoption across the Africa?
Bungey:
I think, as a young analytics leader and having a stint in the space of smart metering in Africa, it presents a really huge opportunity for improving performance for utilities, the majority of which in Africa, except only two, do not have positives in their balance sheets. This is mainly due to heavy losses from technical and commercial inefficiencies.
Governments have a huge responsibility to address this, as a substantial number of utilities in Africa are state-owned, and therefore, the influence of government is quite strong. The opportunity that governments have is to put in place clear regulatory frameworks and policies that support the rollout of smart metering systems, especially connecting them with national development plans. For instance, when building components of physical infrastructure, countries can align these with the development of smart metering infrastructure. If you’re looking at building a digital superhighway, how do you connect that to a metering element? Governments have a significant role to play in this.
The international community also has a strong role, especially as many reforms historically have been driven by development partners like the World Bank. For example, reforms in the 1990s were largely influenced by these institutions. They have a role to play by using their power in funding, convening best practices, and fostering technology sharing to drive the adoption of smart metering. Collaboration between governments and these development partners is crucial to enabling the uptake of smart metering systems across the African continent.
Pappi:
I think governments have a very important role in this, as they set the legislative agenda not only for their countries but also for the continent. If smart metering technology is seen as an enabler for economies, utilities across the continent, and for protecting the revenue streams of critical institutions like electricity utilities, that alone should be motivation enough for governments to introduce regulations.
Similar to what Europe achieved with the M441 mandate a few years ago, which led to a large-scale rollout of smart meters in countries like France, African governments could adopt a similar approach by providing regulatory instruments to accelerate the deployment of smart meters.
International partners also have a significant role to play by offering expertise and knowledge to avoid reinventing the wheel where it’s unnecessary. They can help enable the adoption of state-of-the-art technologies already implemented in other regions and adapt them to the African context. The collaboration between governments and international partners could significantly drive the advancement of this technology across the continent.
Belec:
A lot has already been said by my predecessors, so I’ll avoid repeating too much. However, I definitely see the government as the main driver of smart metering deployment in Africa. One aspect I’d like to emphasize is funding. In many cases, if you can secure funds to support the rollout of a project, this brings significant benefits and, in some cases, even makes the deployment of smart metering systems in a particular country possible.
While it’s been mentioned already, I must stress the importance of not reinventing the wheel. I’m optimistic because local regulatory associations in Africa, such as those working with DLMS, are already collaborating with us. Their efforts in harmonizing specifications and profiles will likely be instrumental in the forthcoming rollouts in Africa.
Of course, there are specific standards unique to Africa, such as the STS prepaid meter. However, I believe that many best practices can still be adopted from the European Union and beyond, leveraging lessons learned with various technologies. This includes understanding the connectivity options and infrastructure available in different countries to ensure efficient data transfer from devices to central system.
This comprehensive approach has the potential to advance smart metering significantly in Africa, bringing positive impacts to both the economy and the development of the countries that choose to implement it.
How do you think the regional adaptation of international standards, like the prepayment functionality in Africa, could influence the global development and adoption of smart metering technologies?
Pappi:
One thing that is certain is that there are standards that cover most of the use cases applicable to Africa. However, there are a few unique functionalities or use cases, such as prepayment, which has a long history in Africa and has not previously been fully integrated with technologies like DLMS. The foundation for these standards has already been laid, and from an African perspective, the focus should be on building on what already exists.
The approach should not just involve defining the technology but also clearly specifying the prepayment requirements, for example. Additionally, there is a strong push for use cases like fraud detection and theft detection, which need to be adapted to the current standards. What’s beneficial about following a standards-based approach is that it allows for adapting existing frameworks to meet specific needs while maintaining backward compatibility.
Standards play a central role in ensuring that Africa establishes a baseline for smart metering technology and then tailors it for the continent’s unique requirements. Within Africa, there may also be diverse needs and use cases across different regions. By adhering to established standards, common solutions can be developed that enable economies of scale and leverage existing successes.
Having unified standards on the continent will also strengthen Africa’s position in forums such as the DLMS UA and IEC. This will help shape standards to better address African needs. To achieve this, increased participation and thorough documentation of the continent’s specific use cases will be essential.
Belec:
I can only add, and perhaps clarify further, that the new ACESM profile recently created and released by DLMS was developed in cooperation with Shaun, particularly focusing on the prepayment aspect. This means we are already establishing common standards, profiles, and frameworks to support Africa in advancing smart metering.
Now that the profile is released, we expect to see certification in place within roughly half a year. This will enable all African countries to test devices from vendors against the new profile, ensuring interoperability. Additionally, this approach will positively impact the overall cost of projects. By creating larger volumes of standardized products for multiple markets, vendors can avoid producing specific product variants for individual markets, leading to cost efficiencies.
This is undoubtedly the right direction, and I’m pleased that we are already collaborating with AFSEC to develop a profile that will serve multiple regions and continents effectively.
Bungey:
I don’t have much to add, as most of it has been covered, but I’d like to layer it with the observation that the uptake and success of any innovation often depend on building upon what is already familiar and widely accepted. In East Africa, for example, the prepayment system is heavily integrated with mobile platforms, such as M-Pesa, where using phones to pay bills is very common.
As standards are developed, whether at the regional level or by regulatory bodies in different countries, it’s crucial to take these existing practices into account. This approach supports scalability and encourages widespread adoption while also minimizing the cost of development by leveraging what is already prevalent and functional. I believe this is an important dimension to consider moving forward.
What do you think are the key factors that will drive the adoption of new technologies like NB-IoT in African smart metering systems?
Belec:
If we are talking about communication technologies, I’d like to tie my answer back to the previous question, where it was mentioned that fraud is one of the challenges Africa needs to overcome. It’s worth noting that Europe is not immune to this either. When you create a smart meter connected to a central system, you significantly enhance your ability to detect fraud, measure its extent, and identify areas or meters where it is occurring. This is a key reason to evolve from standalone meters to smart, connected ones.
From a technology perspective, there is a range of options available today, from Narrowband IoT (NB-IoT) to LTE and even LTE-BIS, which is a simplified version of Cat 1 LTE. The choice of technology depends largely on the specific purpose it will serve. There’s a big difference between using a communication channel solely for billing purposes, like retrieving data or downloading credits to prepaid meters, and using it for advanced grid monitoring, such as detecting voltage or current thresholds.
In Africa, most countries are still transitioning from traditional STS prepaid systems to smarter meters with richer feature sets. However, it may take several years before there is a widespread need for near real-time data or advanced features like power quality monitoring. The shift is underway, but more time and development are needed to fully realize these capabilities.
Bungey:
Communication technology options, particularly those emphasizing low power consumption and reliability, are critical in the African context. Many remote and rural areas are sparsely populated, which presents unique challenges. These areas align with government priorities, particularly in terms of investment aimed at supporting electrification and fostering private sector involvement in developing mini grids. However, these mini grids often face limitations related to power capacity and reliability.
Choosing technology options and standards that can adapt to these site-specific dynamics is essential. Equally important is ensuring that these technologies are accompanied by proper supporting mechanisms, including standards that strike a balance between functionality and cost. Cost sensitivity plays a significant role in determining which technologies can be feasibly deployed under the given constraints.
There has been considerable progress in exploring low-power technologies that hold critical potential for supporting the deployment of smart metering systems, particularly in Africa’s rural regions. These technologies can address the unique needs of these areas, facilitating broader access and more reliable energy solutions.
Pappi:
Daniel previously mentioned technologies like M-Pesa, highlighting how payment services are delivered over public cell phone networks. This provides hope that as such services expand, public cellular networks will continue to grow as well. The increasing number of smartphones on the African continent further supports this notion, as it reflects growing connectivity in many regions.
While not yet covering the entire continent, there is significant potential to leverage these cell phone network technologies for smart metering. The widespread presence of 4G base stations, which serve as a foundation for technologies like NB-IoT, opens possibilities for integrating these communication channels to transport metering data. As 4G continues to expand and some regions move toward 5G, the opportunity to utilize these advancements for smart metering grows.
For example, during the COVID-19 pandemic, countries like South Africa saw a shift toward remote work, which inadvertently strengthened communication infrastructure in some areas. This demonstrates the adaptability of existing communication media and its ability to support data transmission for smart metering systems.
Standardized communication technologies for meters should be designed with flexibility, allowing for integration with both current and future technologies. Where connectivity exists, it can serve as a foundation for transporting metering data and enabling use case growth.
By building with standardization in mind, even small initial deployments can expand seamlessly. The potential of NB-IoT, in particular, has been noted, though its broader adoption remains to be seen. Nonetheless, it presents a promising avenue for supporting smart metering and other applications on the continent.
Conclusion:
By integrating smart metering with national development plans and establishing clear regulatory frameworks (similar to Europe’s M441 mandate), governments in Africa can drive large-scale adoption, improve utility performance, and reduce technical and commercial losses.
International partners, such as development organizations and technology providers, are critical in offering funding, expertise, and proven technologies to avoid “reinventing the wheel.” Adopting and adapting global standards such as DLMS while integrating Africa-specific functionalities like prepaid, ensures interoperability, cost efficiency, and scalability.
The adoption of communication technologies like NB-IoT, LTE, and mobile platforms can address challenges in rural and remote areas. Expanding 4G and 5G networks provides opportunities for smart metering integration, enabling fraud detection, advanced grid monitoring, and data-driven decision-making.