Elster Metronica has established its position as one of the markets leaders within the field of metering equipment and is one of the key suppliers of electricity meters to the Russian power sector. Elster Metronica is part of Elster Group, is a world leader in Advanced Metering Infrastructure (AMI), an industry leader and world-class provider of advanced metering products and intelligent metering solutions. The group has over 7,500 staff and operations in 38 countries.
ROGTEC talks exclusively with Maxim Petukhov about regional power developments; as General Manager of Elster Metronica, Russia, Maxim Petukhov is responsible for Elster’s electricity metering activities in Russia and CIS.
1. 2009 was undoubtedly a tough year for many companies across the globe. How did 2009 fare for Elster and what do you think 2010 has in store?
No year is alike in such a dynamic market as Russia. We have grown significantly during our 16-years history. At the same time we did experience slow-downs during the recession as the whole economy contracted. I think that the kind of slow down we had in 2009 is not all bad;, it actually provides for more opportunities to explore. It also gives customers a different perspective on their suppliers. Elster has been able to keep a leading position in C&I and Grid-level with metering, most of our customers remaining loyal to the quality and service level we offer. The crisis is not over yet, we expect another tough year, but we are well prepared and see further growth this year.
2. The Russian power sector is going through some major changes with many new projects on the horizon. What does this mean for Elster Metronica and your plans for regional growth?
Our regional base is very wide, I doubt there is a region in Russia where no Elster equipment is installed or where a system is not using our software. Though large projects are often being financed from the center, the decentralization is on-going and we see it more as an opportunity rather than a hurdle, given the size of a country. Regional development is in our focus, we invest in marketing and business development activities in all the major regions throughout Russia.
3. And what are your plans to develop outside of Russia, in the CIS for instance?
This has always been a priority for us. Elster Metronica already has branch offices in Kazakhstan and Ukraine. Our brand is well recognized throughout the whole region, so we have a good basis for further expansion into CIS markets.
4. As Russia deregulates it power sector after years of state control, what has been the effect on the uptake of metering solutions?
Deregulation has had a dramatic effect on the metering market. The introduction of a wholesale electricity market has lead to a significant increase in demand for High-End and Grid-level AMR systems which are essential for participating in the market. Deregulation continues to be one of the main drivers of demand for metering systems that moves down the pyramid towards the energy consumers.
5. Metering is an important component for both utilities and end users, but what should a utility be looking for when purchasing metering systems?
The utilities are looking for systems that they can use efficiently to increase their revenues and improve the service they provide to the customers. The switching costs are high when you are talking about the utility-wide system thus the effect of the decision to use one or the other system will be long lasting. Respectively, the metering system of a choice needs to be based on the latest technologies, be reliable and adaptable.
6. What technology developments will drive this sector of industry in the future?
Firstly it is communication. This is a backbone of any system and drives the overall effectiveness. The meters now can feed other systems with the information whether it is residential, C&I or grid meter. Next is the interface to the outside world, for example, in-home displays or information exchange with various other systems.
7. The smart grid seems to be a hot topic across the world today – do you think Russia will benefit from the implementation of a smart grid? What can you offer in this area?
A smart grid will lead to more efficiency, effectiveness and reliability and this is exactly what is needed for the energy infrastructure in Russia. Smart grid and smart metering will inevitably come to Russia. We already offer smart meters that provide not only energy, but also other important measurements of telemetry and control systems. This improves the efficiency of the systems that are used by the utilities to control the quality and reliability of the distribution network. Elster also has proven smart metering solutions such as EnergyAxis and EnergyICT for residential markets. The experience we have in the European and American markets with AMI solutions will be used in Russia to support the future development of the smart grid.
8. It has been a pleasure to talk with you – do you have any final comments for our readers?
Today’s competition tends to be tough to all market players. Elster is ready to meet the most challenging demands of the future and existing customers. We are committed to promoting our solutions to the Russian market, providing the best service and bring our latest technologies to market to benefit our clients.
