Significant New Order For Smart Metering Project

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 c£0.5 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 £1M 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 £0.5M) 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 £1M 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 power¹. According to a new report from Northeast Group, the Indian government will spend $21.6 billion² on smart grid infrastructure over the period 2015-2025. In November 2015³, 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 2021⁴. 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.

¹Source: http://www.hindustantimes.com/analysis/turn-the-light-on-innovation-and-investment/article1-1260113.aspx

²Source: http://www.prnewswire.com/news-releases/india-to-spend-216-billion-on-smart-grid-infrastructure-by-2025-300021970.html

³Source: http://powermin.nic.in/upload/pdf/Uday_Ujjawal_Scheme_for_Operational_and_financial_Turnaround_of_power_distribution_companies.pdf

⁴Source: http://asian-power.com/sites/default/files/asianpower/print/APMay_2013_lr_12.pdf

 Enquiries:

Cyan Holdings plc	Tel: [phone]
John Cronin, Executive Chairman	www.cyantechnology.com
Cantor Fitzgerald Europe - Nomad and Broker Andrew Craig/Chris Viggor	Tel: [phone]
Beaufort Securities Limited - Joint Broker	Tel:  [phone]
Jon Belliss
Walbrook PR - Financial PR	Tel:  [phone]
Paul Cornelius/Nick Rome	[e-mail]

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®

CyLec® is a complete control and communication network for electricity metering. CyLec® 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

 

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