Meralco explores Siemens partnership in smart grid technology pilot project

By MYRNA M. VELASCO
December 25, 2009, 4:08pm

Utility giant Manila Electric Company (Meralco) is exploring partnership with German firm Siemens AG as potential technology supplier for the former’s proposed smart grid undertaking.

With technology movement in electricity systems embracing the digital pace, Siemens AG is among the players keeping up with the industry’s demand for advancement.

“We are looking at Siemens technology,” Meralco president Jose P. de Jesus said, adding that some of the company’s executives already checked on a smart grid project undertaken by Siemens in Greece.

The company indicated though that all talks with potential technology suppliers and providers are still at very preliminary stages. Meralco’s planned pilot site for smart grid is Malabon.

In this era of modernization in electricity networks, smart grids are equated to applications using digital technology that not only increases system’s reliability and efficiency, but will also coach in consumers into managing their electricity consumption so they can save on their electricity bills as well as contribute to the global call of abating climate change risks.

One of the major features of smart grid, apart from upgrading transmission and improving distribution networks, would be the installation of intelligent meters that will aid end-users on efficiently managing their electricity usage.

Based on Meralco’s proposed project blueprint, the intent is to showcase its smart grid as another turning point for “technology convergence” – that may entail integration of electricity system with that of telecommunications via its proposed broadband over power lines (BPL) venture.

In addition, Meralco is looking at prospects of introducing prepaid retail electricity service (PRES) that may also start at its Malabon pilot project.

The choice of Malabon as introductory site for the utility firm’s smart grid, the company noted, is built upon intent of serving “marginalized end-users,” which in power networks are considerably more physically challenging to cater to.

The prepaid electricity metering is envisaged in a manner that consumers can already buy electricity loads via the internet, mobile phones or vending machines or any other mode of selling for the service.

In other countries, the pricing is based on peak and off-peak rates, in lieu of the flat rate which customers have gotten accustomed to in a non-deregulated environment.