Towards Smart Grid Transformation A Case Study in Oman. Ahmed AL Shaqsi Control Centre Manager Mazoon Electricity Company

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1 Towards Smart Grid Transformation A Case Study in Oman Ahmed AL Shaqsi Control Centre Manager Mazoon Electricity Company

2 Outline 1 Background Purpose and Scope Literature review Methodology and Tools Results and Analysis Results and Analysis Recommendations 2

3 Background شركة كهرباء مزون ش.م.ع.م شركة عمانية مساهمة مقفلة مسجلة حسب قانون الشركات التجارية في سلطنة عمان. وتقوم الشركة بأعمال توزيع وتزويد الكهرباء في المنطقة الداخلية والمنطقة الشرقية و جنوب الباطنة بموجب ترخيص صادر من هيئة تنظيم الكهرباء عمان.وهي أحدى شركات مجموعة ))نما(( مشترك عدد المشركين ميجا وات األحمال القصوى % الفاقد الكلي 3

4 Background Generation use 97.5% Gas, 2.5% Diesel Fact Electricity demand growth in Oman 10% Network Losses 14% 4

5 Background large expansion of generation capacity and transmission/distribution networks Sustained energy resources Electricity delivery and quality of services Active end-users 5

6 Background Today Power System Smart Grid 6

7 Purpose and Scope The overall purpose of the study is to investigate how to move toward smart grid. 1 Understand the concept of smart grid 2 Review smart grid conceptual models 3 Review smart grid technologies 4 Assess the current smart gird deployment (Gap Analysis & current state) 5 Prioritize smart grid investments 6 Produce roadmap for Mazoon electricity company smart grid journey 7 7

8 Literature Review Oman Electricity Sector Maturity Model Smart Grid Multiple- Criteria Decision Analysis (MCDA) 8

9 Literature Review Interpretations of smart grid depend on view of utilities, vendors, consultants, academics, or consumers. Therefore no single definition or short description George W. Arnold (2011) stated that Smart Grid refers to a modernized electric grid that is capable of supporting a high proportion of uncontrollable variable renewable carbon-free sources such as wind and solar, achieving greater system efficiency through simultaneous management of demand as well as generation, and greater reliability through extensive use of sensors and automation European group of experts in the framework of the technology platform defines the smart grid as follows: 'A Smart Grid is an electricity network that can intelligently integrate the actions of all users connected to it generators, consumers and those that do both in order to efficiently deliver sustainable, economic and secure electricity supplies U.S. DOE: Grid 2030 envisions a fully automated power delivery network that monitors and controls every customer and node, ensuring two-way flow of information and electricity between the power plant and the appliance, and all points in between. 9

10 Methodology and Tools SGMM MDA Compass Survey Technologies Assessment Inspiration Workshop Prioritization &Selection SGMM Roadmap 10

11 Methodology and Tools Smart Gird Maturity Model The SGMM is a management tool under the stewardship of the Software Engineering Institute at Carnegie Mellon University The model was originally developed by electric power utilities for use by electric power utilities. The model has been widely and extensively used by companies and organizations worldwide. 11

12 Methodology and Tools 12

13 Methodology and Tools 13

14 Methodology and Tools SGMM Compass Survey Assessment Compass questions are designed to collect demographic and performance data and to characterize the status of the responding utility s smart grid implementation in the context of the SGMM There are three ways in which SGMM assessment can be conducted: SGMM Navigation, Group Assessment Self Assessment We defined the key persons to be interviewed to complete the survey for each domains. Survey was carried in MZEC head office in November it scored by CMI.the scored report was received in December

15 Methodology and Tools Multi- Criteria Decision Making (MCDM) Tool Multi-Criteria Decision Making is a well-known branch of decision making The Analytical Hierarchy Process (AHP) is a decision-making procedure which was originally developed by Saaty in the 1970s Depending upon the number of decision makers, the methods can be classified as single or group decision making methods 15

16 Methodology and Tools 16

17 Methodology and Tools 17

18 RESULTS and ANALYSIS Meets minimum requirements for level Significant progress towards requirements for level Initial progress towards requirements for level Not started There are only two domains (GO and WAM) which barely meeting level one requirement The rest scored zero and did not meet domains features This is a clear indication that the company lags well behind its objectives in terms of meeting Smart Grid requirements 18

19 RESULTS and ANALYSIS 19

20 RESULTS and ANALYSIS Process Customer People Financial W Process Customer People Financial SCADA AMI DR DG-Users DG-Utlity Sum/n SCADA AMI DR DG-Users DG-Utlity Final priority of alternative 1 = i Local priority of A1 with respect to Ci Local priority of Ci with respect to goal 20

21 RESULTS and ANALYSIS SCADA AMI DR DG-Users DG-Utlity Cr Alt Process Customer People Financial % 24.1% 18.2% 17.6% 15.2% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Ranking 24.9% 24.1% 18.2% 17.59% 15.2% SCADA AMI DR DG-Users DG-Utlity 21

22 RESULTS and ANALYSIS Selecting the Alternatives A high-level selection process was carried out based on MCDA ranking in terms of total score per cost Because the company has limited resources, it typically cannot fund every project opportunity The study defines two type of risk factors. 1. The first one is technical risk which is due to the dependency of alternatives on each other s 2. The second risk factor is a legal.the legal risk is legislation requirements. Ratio = Total Score (AHP)/Cost Yes Risk No 22 Resolve Select

23 RESULTS and ANALYSIS Alternative Total score % Cost Ratio Total Score /Cost Risk Selection/ prioritization SCADA AMI DR DG-Users DG-Utility 24.9% 22% 1.13 NL 2nd 24.1% 17% 1.39 NL 1st 18.2% 1% 18.2 Technical 3rd 17.59% 26% 0.68 Legal 4th 15.2 % 34% 0.45 Legal 5th 23

24 SMART GRID ROADMAP 24

25 SMART GRID ROADMAP Motivation s What are the high level Smart Grid related objectives that company wants to accomplish Actions What tasks the company need to complete to achieve the above motivations Obstacles What obstacles inhibit the company from accomplishing the above tasks or motivations A close examination of data collected in the survey, here are a few issues that frequently surface as significant obstacles and their possible solutions. Customer Participation Cyber Security and Data Privacy Human Resources and Education Capital Resources Uncertainty 25

26 SMART GRID ROADMAP SGMM Domain Summary of Motivations Summary of Actions Summary of Obstacles SMR Have an enterprise-wide vision for Create and communicate a Human resources Smart Grid utility-wide vision for Smart Grid Ensure that the Smart Grid vision aligns with the company vision Create an internal Smart Grid team 26

27 SMART GRID ROADMAP The actions require a strict but flexible timeframe.will guide the action plan through and will provide a standard in which performance can be measured against.the Company might plan to reach full Smart Grid maturity in about 2030, and might therefore plan that: 1. Initiating will be conducted during 2015 through Enabling will be conducted during 2017 through Integrating will be conducted during 2020 through Optimizing will be conducted during 2024 through Pioneering will by 2030 and beyond. 27

28 RECOMMENDATIONS It is recommended that a smart gird maturity model to be adapted as taskforce for all power utilities in Oman A national smart grid committee is to be setup to monitor the transformation progress and control the national smart grid initiatives and findings. The committee may take rules of smart grid standardization, work coordination among the utilities and approval of smart grid investments. Policy maker along with regulator to make consistent efforts to ensure that new policy and regulations to be established to support the intention of transformation. It is recommended to setup a selection process intended to facilitate the preparation of smart grid investments proposals by project promoters. 28

29 الهتمامكم شكرا Thanks for your attention! 29