Smart Meter Network Organization - SMNO
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1 Smart Meter Network Organization - SMNO A foundation for the Digital Utilities October 2012 Philippe David Senior Vice President Energy, Utilities & Chemicals Global Sector Network Leader Transform to the power of digital
2 Content Emergence of SMNO 99%+ Service level Operating challenges for SMNO 2
3 Gradual deconstruction of the value chain following emergence of smart technologies Traditional Value Chain (simplified) Competitive market Regulated market Competitive market Generation Trading Transmission Distribution Sales & Marketing Equipment installations Consumers Deconstructed Value Chain Large permanent power plants (e.g. Nuclear) Trading Smart Transmission Grid Smart Distribution grids Sales & Marketing Equipment installation / HAN / Building area network Ancillary Services Distributed Storage e-vehicles Large intermittent power plants (e.g. Wind) Pumped Hydroelectric Storage Large Scale Energy Storage Distributed Generation 1 Energy Management 2 Prosumers Virtual power plants 3 (1) Generation connected on distribution grid (PV, wind farms ), maintenance contracts (2) Consumption modulation, through various systems (Energy box, Smart home equipment and appliances, Demand response ) & energy efficiency services (e.g. outsourcing ) (3) A Virtual Power Plant (VPP) is a flexible representation of a portfolio of Distributed Energy Resources (DER: generation, consumption and storage) that can be used to make contracts in the wholesale market and to offer services to system operators 3
4 Emergence of new roles for traditional Distribution Network Operator (DNO) Deconstructed Value Chain Large permanent power plants (e.g. Nuclear) Trading Smart Transmission Grid Smart Distribution grids Sales & Marketing Equipment installation / HAN / Building area network Ancillary Services Distributed Storage e-vehicles Asset Organization 3 Consumption Asset Pumped condition Hydroelectric Storage Distributed 1 information Generation 1 DR contribution? Virtual power plants Large Scale Energy Storage 3 Energy Management 2 Active Network Organization Smart Meter Network Organization Clearing house / Information Hub Sales & Marketing 2 Energy flow & active view on customer connectivity
5 OPEX in /consumer... to fulfill the new requirements enabling the Energy Transition SMNO, a core asset for helping Utilities providing the infrastructure for the Energy Transition Paradigm shifts Cost & Customer satisfaction Decentralized generation with significant intermittency Connected objects in network & homes enabling new levels in load balancing delivered in MtoM On-line customers Connected workforce 64 bit revolution and In Memory capabilities Big Data Analitics Enel 2001 Enel SAIDI in Min outside exceptionnal events Source : Enel, Capgemini DNO costs Benchmark Deploy a Smart Metering/Network solution that meets market requirements at the lowest possible cost and is an enabler for other business processes and transformations Hydro One 5
6 Content Emergence of SMNO 99%+ Service level Operating challenges for SMNO 6
7 The truth: No project is smooth The reality All projects have struggled with performance All projects pretend to be better than they really are There is no perfect solution Each technology carries its own set of problems All problems not dealt with in the rollout will be inherited by the operations Things break down in the field All high operation SLAs are a result of continuous work and improvements Factor affecting performance Data quality Meters (failing) Grid signal characteristics and topology Change in grid Disturbances and load situation WAN coverage, capacity and reliability, antenna installations Central system performance Ability to keep up field work
8 How to reach a 99%+ level performance Start up with a small test installations to check that installation instructions, system support and installation method is working properly In-situ Lab Monitor and measure performance from day 1 Work with clean-up teams, continuously Decide on how to solve each one of the problem (Bcase decision) Check cost of equipment against cost of labour Have robust reserve technology, Use alternative WAN operators Maintain a lot of field work throughout the lifetime of the asset Have detailed installation instructions for work in field Keep track of every single action and piece of equipment Work order system & Serial tracking Do roll-out in manageable pieces Regionalize operation Don t rely to much on alarms and alerts keep it simple Know your asset Make sure the grid data is up to date Know your metering points, Learn which ones that have disturbance problem Work in a uniform way. Use sticks and carrots for all parties 8
9 Content Emergence of SMNO 99%+ Service level Operating challenges for SMNO 9
10 How to orchestrate all streams of a smart metering program? Other customers Customer care 3 rd party parts suppliers OEM parts suppliers How can I improve my product quality? Can we get money back from our suppliers? Should we consider other suppliers? Customers having a on site need for service How fast I should be on site? Do I have the right spares? What do I know about the product? What is the problem? Repair networks, warehouses Design Factory Procurement Aren t we paying too much? Can we reduce fraude levels? Can we reach higher automation levels? Field service fleet Customers coming in, having a need for service Dealer networks Local/regional claim reception offices Do I have enough spare parts? If not, can I get them in time? Or should I apply for a product swap? Can I sell the customer a new product? Local/regional manual claim handling and dispute resolution Automated claim handling Calculation and Payment of approved claims Aggregated claim information Management 10
11 No storage Storage (Almost) current situation in most of the Utilities (though provoking) Data Persistence IT GIS & Co ERP Data historian Scada OT Real time Near Real time Batch Data processing Business managers and IT managers far apart 11
12 CEP = Complex Event Processing No storage Storage Requirements for efficient SMNO Direct load control Remote connnect/disconnect Monthly reading Data Persistence In Memory ERP Big Data Integration CEP* Scada Data historian Real time Near Real time Batch Business managers and IT managers hand in hand OT/IT Integration Data processing 12
13 Key takeaways SMNO as a proxy for the future Digital Utilities Great operational challenges : Central/field team on-line connectivity Digital lean processes (supply chain, field operation) Asset knowledge traceability Big data analytics OT/IT integration Complex event processing 13
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