TIDMCYAN
RNS Number : 2612H
Cyan Holdings Plc
30 November 2015
Cyan Holdings plc
("Cyan" or the "Company")
Significant new order for public utility smart metering project
in India
Cyan (AIM:CYAN.L), the integrated system and software design
company delivering mesh based flexible wireless solutions for
utility metering and lighting control, announces receipt of a
purchase order from Enzen Global Solutions Pvt Ltd ("Enzen") for a
commercial smart metering implementation for Paschimanchal Vidyut
Vitran Nigam Limited ("PVVNL") in Uttar Pradesh, India.
Highlights
-- Cyan will act as Enzen's solution provider for smart metering
o Cyan will provide over 13,000 smart meters and associated
hardware and software
o Cyan's head end software will be provided as a managed service
hosted by Cyan and charged on a per meter per year basis,
delivering a recurring revenue stream
-- First meters expected to be installed and commissioned in H1 2016
-- Current order has an initial value to Cyan of cGBP0.5
million, including recurring revenue derived from Cyan software
offered as a managed service
-- PVVNL distributes power to more than 3.5 million consumers,
providing significant scope for follow-on orders
-- This order follows the GBP1M smart meter order from Enzen which Cyan announced in January
PVVNL is a public utility responsible for power distribution to
more than 3.5 million consumers across 11 districts in Uttar
Pradesh, northern India. PVVNL is implementing a smart metering
solution to automate its meter reading and billing process to
ensure regular and accurate bills. Benefits of the smart metering
deployment for PVVNL will include a reduction of the cost to
service customers, as well as providing data to reduce Aggregate
Technical and Commercial losses and to improve peak load and power
outage management.
Enzen was awarded a contract to provide an RF based smart
metering system to PVVNL in October 2015. Cyan will act as Enzen's
solution provider and will deliver both third party sourced smart
meters as well as Cyan's full end-to-end communication platform.
The contract was awarded following a full open tender process where
both the bidders put forward proposals based around Cyan's sub-GHz
communication platform and Enzen were selected.
The purchase order from Enzen is valued at INR 47.5M
(approximately GBP0.5M) for the supply of Cyan's CyLec smart
metering solution, which incorporates modules, data concentrator
units, 13,751 smart meters and head end software ("HES"). Cyan will
integrate its HES with Enzen's meter data management and data
analytics system which will provide billing information to the
utility's R-APDRP application. As part of the contract, Cyan's HES
will be provided as a managed service, charged on a per meter per
year basis, initially providing a recurring revenue stream for two
years after deployment, with an expectation to continue following
the initial period. The smart metering solution is expected to be
delivered in phases with the first meters to be installed and
commissioned in the first half of 2016 and with all the meters
deployed and commissioned before the end of the year.
This order follows the GBP1M smart meter order from Enzen which
Cyan announced in January this year and reconfirms Cyan's
leadership status in the smart metering solution market in India.
The new order from PVVNL will be Cyan's second commercial
implementation of AMI technology by a public utility for consumers
in India.
John Cronin, Executive Chairman of Cyan, commented: ""We are
delighted that Cyan's technology has been selected for a second
time by Enzen in a commercial smart metering deployment at a public
utility in India. Enzen is a well-regarded partner for many public
utilities, and has successfully implemented projects for utilities
across India. Through our ongoing relationship with them, our
collaborative approach and experience of creating energy
ecosystems, Cyan will continue to build its position in the Indian
energy sector in the coming months."
Satheesh Kumar, Chairman and Chief Executive Officer of Enzen,
commented: "We are pleased to be partnering with Cyan to deliver
our second smart metering solution for a public utility in India.
Cyan provides an end-to-end solution developed for the Indian
energy market. Its business model and experience enables Enzen to
offer its customers flexible solutions, delivered using robust,
highly resilient infrastructure."
Cyan's technology has been developed to address the requirements
of utilities in emerging economies, of which India is one of the
leaders; India has a growing population and 300 million without
power(1) . According to a new report from Northeast Group, the
Indian government will spend $21.6 billion(2) on smart grid
infrastructure over the period 2015-2025. In November 2015(3) , the
India Ministry of Power announced a program to implement smart
metering for all consumers serviced by state distribution companies
with completion deadlines ranging from December 2017 for high power
usage households through to December 2019 for the remainder. This
will be financed via the States taking over 75% of existing State
power distribution company debt (through the issuance of new 10
year bonds) together with an arrangement for the States to take
over future losses of the distribution companies. At present, India
has 200 million legacy meters deployed and it is estimated 130
million smart meters will be installed by 2021(4) . Cyan's business
model is designed to support an organic approach to smart metering
rollouts, from initial deployments in thousands to millions of end
points, through incremental instalments. This staged approach
allows its customers to realise the benefits of Cyan's technology
and create the basis to expand the scale of their deployments in
line with their needs and business cases.
(1) Source:
http://www.hindustantimes.com/analysis/turn-the-light-on-innovation-and-investment/article1-1260113.aspx
(2) Source:
http://www.prnewswire.com/news-releases/india-to-spend-216-billion-on-smart-grid-infrastructure-by-2025-300021970.html
(3) Source:
http://powermin.nic.in/upload/pdf/Uday_Ujjawal_Scheme_for_Operational_and_financial_Turnaround_of_power_distribution_companies.pdf
(4) Source:
http://asian-power.com/sites/default/files/asianpower/print/APMay_2013_lr_12.pdf
Enquiries:
Cyan Holdings plc Tel: +44 (0) 1954 234
400
John Cronin, Executive Chairman www.cyantechnology.com
Cantor Fitzgerald Europe - Nomad and Tel: +44 (0)207 894 7719
Broker
Andrew Craig/Chris Viggor
Beaufort Securities Limited - Joint Broker Tel: +44 (0) 20 73828300
Jon Belliss
Walbrook PR - Financial PR Tel: +44(0) 20 7933 8780
Paul Cornelius/Nick Rome cyan@walbrookpr.com
About Cyan
Cyan provides a communication platform for energy, lighting and
emerging applications in the wider 'Internet of Things' network.
Its integrated platform and partner collaborations deliver
end-to-end solutions that connect millions of devices and support
bidirectional communication with the end customer. Cyan's smart
metering and lighting solutions enhance quality of service in
emerging regions, through power savings, lower operating costs and
increased cost efficiency. Our vision to create improved value
through Smart City solutions has provided our customers with the
foundation upon which to build incremental services as these
markets evolve.
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 Enzen
Enzen is a global energy and environment company providing
high-end solutions to the energy and utilities industries. It has
become a partner of choice, successfully implementing projects for
global utilities across India, the United Kingdom and the United
States.
For more information, please visit http://enzen.com/IN/Home
This information is provided by RNS
The company news service from the London Stock Exchange
END
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