Resilience just another buzzword?

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1 Resilience just another buzzword? An Operators point of view Lisbon May 23 rd Bjarne Dynkel

2 Radius is the biggest DSO in DK (Orsted subsidiary) Radius distributes 26% of all power consumption DK Radius supply area is Copenhagen and North Zealand Market share, % of distributed power, ,1% 13,2% 12,2% 9,9% Value of the Regulatory Asset Base (RAB) equals DKK 10,8 Bn 1 6,4% 6,3% 5,0% ~1 million consumers ~ km cables The distribution area covers ~30% of DK s population Distributed power ~8.400 GWh per year Source: Regulatory Accounts 1. RAB per ultimo 2017 (budget) 2 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

3 Radius in numbers Radius assets Cables and wires 601 km 30/50 kv km 10 kv km 0,4 kv Transformers 90 main stations substations Investments in Radius Grid Capex Mill. DKK Reinvestments 900 Capex Mill. DKK Cable boxes, meters and consumer supplier lines cable boxes meters Power New investments Relocation etc Meters Max. power: MW Cable laying Employees, safety, it and connections 435 employees (ex. corporate staff) Safety 2017: TRIR: 9,8 LTIF: 2,2 It-assets for >400 m DKK new connections, relocation and meter exchange pr. year (rising) Realized Forecast 3 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

4 About me 59 years Bsc. Ee DSO since Management for 15 years - Lead Specialist - AMR systems - Emergency response and preparedness since Business development projects - Asset Management (Risk based) 4 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

5 Radius National preparedness is divided into sectors Preparedness and emergency response - Classic scenario based risk analysis - Mitigation, remediation and restoration - Disaster recovery - Including critical IT systems - Plans and procedures - Drills - Remedial measures lessons learned Perspective from a technological point of view ISO Asset Management - Criticality - Skills - Duration of restoration - Impact (outage etc.) - Stock - Risk = probality(condition) x criticality? - or - Risk = f(probability; criticality)? Active involvement of line management - Quarterly meetings - Early evaluation Preparedness is managed ISO like Are we resilient? 5 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

6 Resilience? Everybody is talking about resilience - Communities - Companies - Management - Employees - Etc. etc. Crisis are unavoidable - We can t mitigate but have to withstand World gets more complex - Interconnected - Interdependent - Transboundary dependencies - Transboundary threats and risks 6 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

7 Dependencies 7 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

8 Creating an overview Complexity demands an overview of dependencies - From international level to - European level to - National level to - Sector level to - Operator level In general - A common understanding of resilience - Border crossing - National (pan European) level - Cross sector Level of awareness - Does everybody needs to know everything? - Is awareness within own level appropriate? - Information overflow! CIRI? 8 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

9 CIRI A feasible model - Gives an indication of maturity - Introduces an opportunity to compare / benchmark - Definition of proper mandatory topics are crucial - Definition of voluntary topics - Avoid wrong or misleading conclusions Not just a new KPI Who defines an appropriate level? 9 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

10 Creating the context in reality Shareholders vs. stakeholders - Shareholders - Higher revenue - Stakeholders / costumers - Convenience - Lower prices Management - Lowering budgets - Increasing efficiency Employees - No more procedures or rules Politicians - It all with no costs also the credits! No free rides! 10 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

11 Challenges key issues Creating a pan European understanding - National level - Politicians - Top management Long term investment - No investment - no revenue - Costs of doing nothing? Obtaining and introducing resilience - Balancing risk appetite with necessary investments - Combination of - Risk management - Asset management - Increasing standardization where possible - Change management Disaster recovery - Spare parts! - Requires enough parts on stock - Logistics & Finance - Wants to keep stocks low - Low stocks - Require high degree of standardization - Standardization - Requires compatible components and flexible design - Purchasing - Wants low prices - Low prices - Call for tender - Legislation - Often prevents free choice of vendor 11 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

12 Concluding remarks Resilience by design not an add on - Strong design - Strong culture that truly adopts the principles - Takes persistence Existing CI needs reinvestment to increase resilience Introducing CIRI on top of standards or competing? - Are we introducing another (one more) method? - Are we inheriting knowledge from existing methods and system? - Are we keeping i.e. Asset Management and other system? - Introducing a new burden or replacing existing methods and systems? LONG TERM TASK 12 IMPROVER WORKSHOP LISBON MAY 23 RD 2018

13 Thank you for listening YES - resilience makes sense let s carry on bjarne@dynkel.dk 13 IMPROVER WORKSHOP LISBON MAY 23 RD 2018