TIDMCYAN
RNS Number : 4539P
Cyan Holdings Plc
19 August 2014
Cyan Holdings plc
("Cyan" or the "Company")
Second CyLec Pilot Successfully Deployed in Brazil and Order
Update
Cyan Holdings (AIM:CYAN.L), the integrated system and software
design company delivering mesh based flexible wireless solutions
for utility metering and lighting control, provides the following
order update and announces a new smart metering pilot in
Brazil.
1. New smart metering pilot with a second Tier 1 utility in Brazil
As announced on 18 December 2013, Cyan signed a strategic
partnership agreement with Nobre de la Torre ("Nobre") to
collaborate on the development, supply and system integration of
CyLec(R), Cyan's smart metering solution, in Brazil.
On 5 March 2014, Cyan announced Nobre had successfully installed
a small number of CyLec retrofit units to existing meters for an
unnamed Tier 1 utility. This first pilot proved that the CyLec
technology met the overall expectations of the utility customers.
Following the first pilot, Nobre started to design products fully
integrated to Brazilian electricity meters, including three
retrofit solutions designed in collaboration with engineers from
the utilities. Nobre believe that this approach will lead to a
faster acceptance of smart metering technology in Brazil.
Today, Cyan announces Nobre has successfully deployed a second
pilot with another Tier 1 utility. In order to provide a thorough
evaluation of the Nobre/Cyan technology in the field, the utility
selected three different locations, each with different deployment
challenges for smart metering technology:
-- The first location was one where multiple electricity meters
are installed on a pole. The meters are securely contained inside a
metal cabinet (at a height of 4 metres) which has a viewing lens
and clear window to allow visual reading of the meters. These
cabinets can reach temperatures of up to 90degC and also suffer
from tampering whereby the viewing lens is painted over to prevent
meter reading and this issue is completely resolved with the Cyan
solution where the meter readings are transmitted over the CyLec
two way wireless communication network back to the utility's
billing systems.
-- The second location was in a gated community. The average
distance between the houses is 160 metres and as a result, the
meter reader currently spends substantial time walking between
houses to get the readings. The location also demonstrated that the
consumer's power supply could be remotely connected and
disconnected without having to send utility staff on site. The
current cost of sending staff for manual disconnection and
reconnection duties is a significant cost burden for utilities in
Brazil. For this particular deployment, excellent wireless network
performance was achieved despite the Cyan Data Concentrator Unit
("DCU") being located up to 300 metres from the furthest meter.
-- The third location was three separate apartment block towers.
In this particular case, the enhanced Nobre/CyLec solution was used
where the meters were installed in multi-meter secure metal
cabinets in the basement of the apartment towers. Nobre were able
to establish an effective two way wireless communication network
from inside the metal cabinets to pole mounted Cyan DCUs, which
were located up to 90 metres from the base of each building.
The smart meters were deployed by the utility's own staff with
assistance from a small team from Nobre as well as one Cyan
engineer, who acted as an advisor.
According to GlobalData's latest report*, smart meter market
revenues in Brazil will increase tenfold, from $36m in 2013 to
$432m by 2020. The main market drivers for this projected growth
are the need to upgrade grid reliability and power outages, and to
improve the integration of renewable energy generation into the
system, reducing per-capita power consumption. In addition, with
power theft as high as 20% in some Brazilian regions, local
authorities are currently pursuing investments in smart meters, as
the technology provides a simpler way for companies to track and
prevent such activity.
* "Smart Grid Market in North and South America - Key Issues,
Regulations, Current Market Outlook and Key Equipment Market Size
to 2020" GlobalData, January 2014.
John Cronin, Executive Chairman, Cyan Technology commented:
"Nobre have developed innovative, cost effective smart metering
solutions based on the CyLec solution. The success of these new
pilots, in addition to the one they deployed earlier in the year,
show that Nobre were an excellent choice of partner for Cyan in
Brazil. We will continue to support Nobre on a day to day basis and
look forward to entering the commercial orders phase of our
partnership."
João Nelson C de la Torre, Executive Director, Nobre, commented:
"This second pilot is a significant validation by a Tier 1 utility
customer of the technology that Nobre and Cyan have developed
together. Immediately following the deployment of this second
pilot, we have been contacted by many new potential customers in
Brazil and believe that these new solutions are a break-through
point for the deployment of smart metering in Brazil as they are
both cost effective and robust. We look forward to placing our
first commercial order with Cyan before the end of the year and
establishing ourselves as one of the largest smart metering
solution providers in Brazil during 2015."
2. Order Update
On 24 December 2012, Cyan notified shareholders that an order
from a meter manufacturer customer in India (originally announced
in May 2012 and exceeding $1m) would be fulfilled in 2013 due to
delays in the Tamil Nadu Electricity Board ("TNEB") tender
process.
On 15 November 2013, due to the continued delays in the TNEB
tender process, the meter manufacturer informed Cyan that their
order will be carried forward into the new calendar year and that
they were optimistic that they will require delivery in 2014,
although this remained contingent on the TNEB tender and their
participation therein.
Given the substantial period of time that has passed since the
order was placed in May 2012 and the fact that the TNEB tender
process has not resulted in any tender awards for smart metering,
the customer (now identified as Capital Power Systems Limited
("CPS")) has given recent indications that they intend to cancel
the order. Whilst no formal cancellation has been received, Cyan
believes that it is prudent to take this order off Cyan's books at
this time, given that the most likely outcome is that a new smart
metering tender will be issued at a future date. Cyan's eco-system
of smart metering partners (with the Cyan module now embedded in
eight different meter manufacturers) has substantially evolved
since the order was originally placed in May 2012 and as a result
other meter manufacturer vendors (incorporating Cyan's technology)
may now be better placed than CPS to win smart metering orders from
TNEB as they are able to offer additional products and services to
utility customers other than just meters.
The Tamil Nadu Electricity Board have made a strategic
commitment to deploy smart metering in the "Vision Tamil Nadu 2023
- Strategic Plan for Infrastructure Development in Tamil Nadu"
published in February 2014*, which details a Smart Grid investment
plan of Rs. 20,000 Crore (US$3.3Bn) during the period from 2014 -
2023 and therefore we expect TNEB to issue a new tender in the
medium term in order to achieve these dates, given their expected
requirement to procure and deploy a significant element of smart
meters for their current installed base of 19M consumers.
During 2014, Cyan has continued to engage with TNEB, including
educating the new board members on the benefits of Advanced
Metering Infrastructure ("AMI"). Additionally, Cyan has continued
to invest in the 2,000 meter CyLec pilot which our partners
deployed in Trichy, Tamil Nadu in 2012 and has upgraded a
substantial element from Automated Meter Reading ("AMR") to full
AMI. This allows Cyan to demonstrate a complete end to end
solution. Cyan is not aware of any other smart metering pilots
being successfully deployed with TNEB and remains confident that
its partners have a good opportunity to be awarded substantial
business at TNEB as part of their smart grid rollout plans.
*
http://admin.indiaenvironmentportal.org.in/files/file/Tamil_Nadu_VISION_2023_Phase_2.pdf
Enquiries:
Cyan Holdings plc www.cyantechnology.com
John Cronin, Chairman Tel: +44 (0) 1954 234
400
------------------------------------------- -------------------------
Allenby Capital Ltd - Nominated Adviser Tel: +44 (0) 20 3228
and Joint Broker 5656
Jeremy Porter/Michael McNeilly
------------------------------------------- -------------------------
Hume Capital Securities plc - Joint Broker Tel: +44 (0) 20 7101
Jon Belliss 7070
------------------------------------------- -------------------------
Walbrook PR - Financial PR Tel: +44(0) 20 7933 8780
Paul Cornelius cyan@walbrookpr.com
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About Cyan
Cyan is an integrated system design company based in Cambridge,
UK. We provide a communication platform that enables the
measurement and control of energy consumption for the metering and
lighting markets, helping to reduce energy losses. Our wireless
mesh networking platform offers 'last mile' connectivity between
millions of devices and enterprise software, supporting bilateral
communications with the end customer. For more information, please
visit www.cyantechnology.com.
About CyLec(R)
CyLec(R) is a complete control and communication network for
electricity metering. CyLec(R) uses wireless technology to enable
the collection and delivery of data from and to a meter, such as
energy profiles, instant readings and the sending of tariff
updates. Priority data can also be sent back to the utilities such
as information regarding tampering enabling the utility to take
action immediately.
About Nobre de la Torre
Founded in 2007, Nobre has developed deep domain knowledge in
the field of smart metering. The length of expertise within the
smart metering industry is significant and several Nobre employees
have been part of Automated Meter Reading ("AMR"),
Telecommunications and systems management and support industry
since its first steps in Latin America. Operating as a trusted
system integrator, the Company's focus on research and development
has delivered high-levels of innovation for smart meter vendors,
utilities and mobile device manufacturers alike.
Since 2010, Nobre has engaged with several utilities within
Brazil to help develop the information technology required to
support Advanced Metering Infrastructure ("AMI") across the region.
For more information, please visit www.nobredelatorre.com.br
This information is provided by RNS
The company news service from the London Stock Exchange
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