Toshiba optimistic about smart meter market and acquisition of giant global power meter

Some time ago, Toshiba spent a large sum of money to acquire the global smart meter giant Lanjiil. Its acquisition goal is to expand sales in relevant business areas from the current approximately 300 billion yen to approximately 700 billion yuan by gaining sales channels and customers from Langier. Yen (2015). A few days ago, the reporter interviewed Toshiba’s technical director of the intelligent community business unit division, Tobe Mosui, for the purpose of the acquisition of Langeir – why is Toshiba committed to the field of smart meters?

Watanabe: Our policy is to actively conduct business in the smart grid and smart community areas in the future. The smart meter is the first stage. First, start business with smart meters and join various services and solutions to drive its development. By then, the meter business will be very important, and we also have great potential.

Smart metering services are currently being rolled out worldwide. In order to quickly enter this business area, the acquisition of large companies is the most effective means. We are talking about combining the upstream technology owned by the company with the terminal technology owned by Lanjil.

- Many companies are dedicated to smart meters. Why did you target the Lanjier?

Watanabe: It is because, from that point of view, Langier is No on the world meter market. 1. Grange has more than 8,000 major customers in 30 countries, including global power operators. Not only in the electricity sector, but also in the gas and water sales are No. 1. And in terms of smart meters, the company also has an overwhelming 30% share of the world. The first share means having a strong customer sales channel. This is very attractive to us.

In fact, by working together, Langeill is a very robust company. We feel that it is a company that can launch trustworthy products and "does not live up to our expectations." And there are also great technologies. Electricity meter is a standard product, it is difficult to achieve differentiation, and smart meters need to import communication technology, this part is the key to differentiation. In this respect, Langeil has outstanding technical assets such as PLC (Power Line Communication) and wireless communications.

- In what areas is it expected to have a multiplier effect with Toshiba's existing solutions?

Watanabe: The service of Langier has very high reliability. But on the other hand, the use of smart meter service itself is still very primitive. Perhaps this is because the market is not yet mature. For example, Lang Gill provided dozens of power companies with "management services" in the United States. This is a meter-related business that contracted the business of some power companies. If this service is combined with more advanced energy management technologies, it is expected to further expand the market. This will not only be a power company, but it will also bring ordinary families and buildings into view and upgrade them to a wider range of services. For example, linkage control with a battery and an electric vehicle (EV). In the implementation of this advanced combination of ICT solutions, our Toshiba technology can come in handy.

Among the subsidiaries of our group are Toko Toshiba Electric Meter Systems Co., Ltd., which operates the meter business. We believe that the product effect can be obtained in the future with Langjiil, which is centered on overseas customers.

At present, Japan is in a situation of “power shortage” that has not existed in recent decades. Because of this, technologies that were previously unsuccessful for introduction may cause concern. For example, the "DR (Demand Response)" technology using a smart meter may play a role in suppressing peak power consumption. Toshiba has this know-how related to energy management. In the future, we intend to combine these technologies with Lanier's technology.