Navigant Research Blog

Sensus Lands Great Britain Smart Grid Communications Deal

Richelle Elberg — August 14, 2013

Raleigh, North Carolina-based Sensus was the only American company to win a piece of the long-awaited Great Britain smart meter deployment contracts, which were announced on August 14.  The U.K. Department of Energy and Climate Change (DECC) selected  Arqiva Limited as the preferred bidder to provide the smart metering communications service for Northern England and Scotland.  In conjunction with Arqiva, Sensus will provide the long-range radio technology for the communications network.  DECC estimates the value of the communications service contract to be £625 million ($828.5 million) over 15 years.

Sensus’ FlexNet technology will deliver data from both gas and electric meters at 10.2 million locations across the region, or between 16 million and 17 million meters.  Sensus will be providing base stations and long-range radios that will communicate with a hub at each meter location.  Base stations will be mounted on Arqiva-owned communications towers; Arqiva owns 8,000 cellular towers and several thousand radio and television broadcast towers across the U.K.

Sensus says the complexity of the region to be served was a big reason for its selection.  Covering both rural and urban areas, the district reaches from the Highlands of Scotland to the City of Manchester.  Sensus reports a range of up to 40 miles in rural locations for its Flexnet wireless network, and 2 to 3 miles in urban and suburban locations.  Cellular provider Telefónica UK was chosen for the more urban central and southern region communications contracts.

FlexNet is a point-to-multipoint private radio frequency (RF) solution.  In the United States, FlexNet operates on licensed 900 MHz spectrum; in the U.K. the solution will operate over licensed 400 MHz spectrum owned by Arqiva.  The use of licensed spectrum allows for higher power transmission than unlicensed communications networks, and is generally not subject to the interference that may occur in unlicensed systems.  The system uses a star topology, with nodes communicating with a centrally located tower.  Each node typically sees more than one tower, allowing for network redundancy.

Big Win

The solution was designed to meet DECC’s service level requirements and has the ability to prioritize data through channelization.  The FlexNet system can support data throughput of 1 megabit per second.

The solution will support pre-pay and load-shedding applications, and will also facilitate British consumers’ ability to change retail energy providers in the deregulated market.

The deal is a very big win for Sensus and positions the company well for future business in Europe.  Sensus says that it already serves 475 electric, gas, and water utilities worldwide.  Previously, however, the bulk of Sensus’ business was in North America.  PECO in Philadelphia, for example, is deploying the FlexNet communications network in its 1.8 million meter smart grid program and plans a wide range of distribution automation applications over the network, in addition to traditional AMI applications.

Navigant Research estimates that point-to-multipoint communications nodes accounted for just 2% of total smart grid communications nodes worldwide at the end of 2012.  With Sensus’ significant entrée into Europe, however, it’s possible that share may grow in coming years.

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