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Title LG CNS Enters the Smart Grid Market in Europe Date 2014-09-23
- LG CNS signs US $ 45 million AMI contract with Polish utility, Tauron. –

■ Implement AMI system based on OSGP technology and head-end systems for 330,000 households in Wroclaw, Poland

■ Won the contract based on experience in various energy businesses, including microgrid solutions, smart grid distribution and construction of solar power plants.

■ Secured a foothold in Poland's US $1 billion AMI market and Europe's future energy management market.



LG CNS successfully entered the European smart grid market after their success with the transit card system in Europe.

LG CNS(www.lgcns.com) has won an Advanced Metering Infrastructure(AMI) contract from Tauron Dystrybucja S.A.(www.tauron-dystrybucja.pl, hereinafter Tauron), an electric power company servicing southwestern Poland, to provide 330,000 smart meters.

This is the largest scale business among Korean companies who had smart grid contracts with Poland.
LG CNS formed a consortium with three local companies, Eltel Networks from Denmark, Eltel Networks Olsztyn and WorldIT Systems from Poland, to win this contract valued at US $45 million(Net Sales). This consortium went through two phases of bidding, in fierce competition with world-class companies in Europe and Asia, to win the contract.

LG CNS will start working on the project in September 2014 to implement the AMI system for 330,000 households in Wroclaw and its neighboring areas in southwestern Poland. Also, the company will build a head-end system that analyzes the data collected from the AMI system until April 2017. The AMI is essential to implementing a smart grid, which adjusts the price of electricity according to supply and demand. The AMI consists of smart meters that provide information about electricity usage to the head-end system in real time.

With this contract, LG CNS occupies an advantageous position in Poland's AMI market, which is expected to be more than US $1 billion.Footnote . As a European Union(EU) member, Poland is required to implement the AMI system for more than 80% of all households by 2020 to save energy, according to the "EU Mandate 2020". Therefore, Poland is expected to implement the AMI system for approximately 16 million households by 2020 in phases.

In the meantime, other EU members are expected to introduce the AMI on a full scale beginning in 2015 to comply with the "EU Mandate 2020." The market is expected to reach 150 million.

LG CNS has acquired its technological expertise in the energy management sector by participating in various businesses, including the construction of multiple solar power plants in Korea and implementation of the building energy management systems(BEMS), and the energy storage system(ESS). Based on this expertise, LG CNS has developed the Smart Green Solution, which allows you to manage electricity from one single building to an entire city, for the first time in the world.

Jiseob Kim, Vice President of the LG CNS Smart Green Business Unit, said "This contract is a smart grid construction business at a country-level that LG CNS has won for the first time and is the stepping stone to enter the EU market." He continues, "By successfully carrying out this business, we will accelerate our entry into the EU energy management market and in the long run, will become a world-class energy management company that represents Korea."


photo1

[Photo1] LG CNS and Tauron promised to carry out the business successfully. From the left are Vice President of Tauron Marek Kleszczewski, Vice President of LG CNS Jiseob Kim, CEO of Tauron Piotr Kolodziej, Sales Senior Leader of LG CNS Sang Dong Kim


photo2

[Photo2] Pictured, from the left, are Vice President of LG CNS Smart Green Business Unit Jiseob Kim and CEO of Tauron Piotr Kolodziej



[References]

Tauron Dystrybucja S.A.

Tauron Dystrybucja SA is the largest distribution system operator(DSO) in Poland on 58 thousands square kilometers territory and supplies electricity every day to over 5 million of customers.
Company manages the power lines length over 215 thousand kilometers all over south Poland. Company is the part of Tauron Polska Energia Holding, one of biggest enterprises in Poland

Wroclaw
Wrocław is the capital of Voivodeship state in the lower Silesian region of Poland. The Odra River runs through the northern part of this city. Wroclaw is the manufacturing center of Poland and is actively involved in various industrial fields, such as machinery(automobile and measuring instruments), electrical devices, textiles, food, chemistry(dyes), medicine, and leather. Its population was about 630,000 in June 2012.

Smart Grid
Smart Grid is a next-generation electricity grid that uses information and communications technology to optimize energy efficiency by exchanging information on electricity usage and pricing in real time via two-way communication between suppliers and consumers, and adjusting the electricity usage accordingly.

AMI, a smart meter based on OSGP(Open Smart Grid Protocol) technology, is installed in each household to exchange information on electricity consumption. Information on the supply and demand of electricity sent by the smart meter is collected in real time by the data concentrator, which in turn sends the information to the head-end system. The head-end system analyzes the electricity usage data sent by numerous electricity meters, and the result of this analysis is used as reference information in the real-time fluctuation of electricity prices.