Societal and Environmental Transformation The Case for SMART Malta
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1 Societal and Environmental Transformation The Case for SMART Malta Ing. Carlo Maria Drago IBM Italia Forum Telecontrollo Reti Acqua Gas ed Elettriche Roma ottobre 2009 Roma, Hotel Hilton 15 th October 2009
2 The World is Changing The world is flatter. The world is smaller. The world is getting smarter. We ve thought about IT as the world of data centers, software, PCs, routers, bandwidth. We ve thought about infrastructure as the world of buildings, factories, hospitals, roads, pipelines. Those worlds are converging. We re confident that the world can become smarter. We re building it with our clients.
3 because something profound is happening in the way the world works Our world is becoming INSTRUMENTED Today, there are 1 billion transistors for each person on the planet. 1 By 2010, 30 billion RFID tags will be embedded into our world and across entire ecosystems. 1 Our world is becoming INTERCONNECTED The internet of people is 1 billion strong. Almost one third of the world s population will be on the web by There will be nearly 4 billion mobile phone subscribers worldwide by the end of Virtually all things are becoming INTELLIGENT Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries. 1 An average company with 1,000 employees spends $5.3 million a year to find information stored on its servers Our planet is becoming smarter
4 What does it mean to become Smarter for an energy network? Measuring, Monitoring, Modeling and Managing Sensing Metering Data collection Feedback to user and data source; Incentives and actions to change behavior Real Time Data Integration Real Time + Historical Data Data Modeling + Analytics Visualization + Decisions Feedback to user and data source; Incentives and actions to change behavior Data Integration Comparison of historical data, with newly collected data Data modeling and analytics to create insights from data to feed decision support and actions
5 A new infrastructure for new needs Macro Drivers The global economy crisis Climate change and the environment concerns Industry Drivers Increased reliability and power quality, combined with increased pressures on rates Growth in renewable generation and distributed resources Rapid technological advances and availability A focus on conservation with the customer
6 Smart Grid beyond the grid Information Energy Renewables & Clean Generation Smart Grid Advanced Metering Infrastructure (AMI) Home Area Network (HAN) Plug-in Hybrid Electric Vehicles (PHEV) Evolving Energy Value Chain Operational Efficiencies Remote disconnect (turn-off/on) DER and Solar metering Fault detection and management Telecommunications Network/IT Architecture Security Data Modeling Energy smart appliances New billing and payment opportunities Rate choices (TOU) to manage costs Energy information for analysis PHEV controls and metering Smart thermostats and lighting
7 Malta is part of the planet that is becoming smarter
8 100km SW of Sicily Size : 316sq.km Population : 420,000 Smallest EU member since 2004 Euro currency since 2008 The country Malta
9 The customer EMC offers a broad range of services in the energy field. In the electricity segment alone has a turnover of 293 M, with an installed capacity near to 600MW, approximately 1900 employees and clients. Both Companies are 100% public owned
10 The pain points Generation Transport / Distribution Retailer Metering Huge Exposure to Fuel prices & weather fluctuations Increasing Demand Risk Management Policies Lack of Monitoring Systems Annual Blackouts Technical Losses Inefficient workforce management Poor Data Quality Customer Dissatisfaction Increasing Debt Average Revenue per user can be increased easily (cross-up selling) Millions Electricity thefts & technical losses Workforce Inefficiencies No connectivity to the EU Grid, isolated system. Lack of automation Supply Chain Inefficiencies ( high Inventories, Purchase Organization, ) Staff and Assets Inefficiencies No use of Renewable Energies ( by EU Directives they need to generate 5% in 2010)
11 Power generation for energy...and water MWh Limited power generation capacity Annual Load Growth Year Annual Demand (MWh) Peak Load (MW) Increasing power generation demand MW Delimara Power Station 304MW Steam & CCGT Plant Marsa Power Station 267MW Steam Plant
12 Current network: BLIND but HAPPY! Billing Meters mostly Electromechanical (1/3 electronic) No communications Centralised generation Few and far between sensors (SCADA in early stages) Manual restoration Prone to failure and blackouts Check equipment manually (No Outage Management) Emergency decisions by committee and phone Limited control over power flows (GIS being implemented) Limited price information (ERP non-existant) Few customer choices (CRM developed in house, limited)
13 CRM/Billing: BLIND and NOT SO HAPPY INEFFIECIENT AND CUMBERSOME MANUAL READING FOR WATER AND ELECTRICITY ESTIMATED BILLS EVERY TWO MONTHS & ACTUAL READINGS TWICE A YEAR PRESENT IT SYSTEM DIFFICULT TO EXTRACT DATA SLOW LACK OF REPORTING FACILITIES HIGH LEVELS OF UNACCOUNTED FOR UNITS (>13%)
14 How to improve End Use Technology? Energy Efficiency incentives for environmentally friendly household goods Demand management infrastructure non-existent Self generation picking up with net metering possibility. No feed in tariffs. Consumption information from internet to consumer with smart metering technology empowering him with more knowledge.
15 Ingredients of Transformation in Malta Technology investment in the management of the grid Customer empowerment investment in the utility-customer relationship Environmental responsibility meeting international commitments while investing in environmental sustainability
16 Technology Evolution Roadmap of transformation Degree of Consumer Control Technology enables shared utilitycustomers responsibility, but customers have limited control End customer has limited empowerment Passive ratepayers Participatory network Technology enables shared utilityconsumer responsibility, with availability of new products or services Consumers take firm steps to move toward more control, but are limited by regulatory and/or technological constraints An increased level of technology and consumer control will lead to increased shared environmental responsibility
17 The IUBS Program ENTERPRISE RESOURCE PLANNING - Theme 1 FINANCIAL & MANAGEMENT ACCOUNTING PROJECT PLANNING, SIMULATION, SCHEDULING GENERATION ASSET MANAGMENT INVENTORY PROPERTY MANAGEMENT ASSET PROCUREMENT MANAGMENT ENERGY MANAGEMENT SYSTEM & SCADA PROJECT PLANNING- DISTRIBUTION WORKFORCE MANAGMENT GEOGRAPHICAL INFORMATION SYSTEM NETWORK PLANNING, ANALYSIS, CONTROL, FAULT DETECTION, MAINTENANCE, FORECASTING WORKS CONTROL MOBILE WORKING ENERGY MANAGEMENT SYSTEM - Theme 4 CUSTOMER RELATIONSHIP MANAGEMENT - Theme 2 TROUBLE TICKETING & MANAGEMENT RECEIVABLES MANAGEMENT DOCUMENT MANAGMENT BUSINESS INTELLIGENCE EMS COMMUNICATION INFRASTRUCTURE CUSTOMER ACCOUNT MANAGEMENT BILLING INTEGRATOR PORTAL (crm/billing/gis) ENERGY DATA COLLECTION WATER / ELECTRICITY LOSSES RECONCILATION LV ENERGY DATA MANAGMENT WEB-BASED CUSTOMER SERVICE CONTACT CENTRE AUTOMATED METER READING AUTOMATIC METER MANAGEMENT - Theme 3 Align the organization with new technology and process requirements JV Company ARMS Organization & & People Program Management Info Driven Organization Process Process Centric Centric Organization Design Organization Design Business Transformation Processes I/T Enabled Processes Business Process Re-engineering A transformational play triggered by technology Identify and Manage Change Technology
18 The smart metering technology map LVC Customer Billing CRM GPRS 18
19 The improvements on the grid SCADA and EMS/DMS are key for a reliable Smart metering project Customer need A modern control room environment Remote dispatch of all substations including communication Flexible platform with open architecture Proposed solution Network Manager SCADA Substation adaptation with 12 pcs RTU 560 and Station Automation equipments Complete communication links Customer benefits Central monitoring and control of all power stations and substations on the island of Malta Increased reliability, optimal load shedding and quick power restoration Operational flexibility and reduction in losses
20 From Smart Metering to Smart Grid Concentrator (CBT) GSM Network Concentrator (CBT) AMM GSM Network Concentrator (CBT) GSM Network
21 Summing up the collective benefits Decreased cost of meters mgt Improved demand side management from a better knowledge of load profiles Improved service level The billing performed on real readings, not estimates Flexible tariff structure Flexibility of billing periods Possibility of consumption optimization A higher yield in energy distribution means less pollution for the same economic benefit Reduced pollution due to better power plant utilisation Smart Grid is the driver for organisational change Integrated systems and control are the drivers of organisational transformation Consumption information provided to customers Customers enabled to manage their own usage Establish Energy efficiency programmes for customers, ex. encourage off-peak usage Renewable programmes
22 Specifics of the Malta case Isolated system that can be monitored in absence of external influences Limited but significant size of the system (a country of people) ideal for lighthouse projects as currently focused by EC No water resources: heavy dependency on desalinization and therefore strict correlation between water supply and electricity consumption Strong smartgrid implementation as a baseline for additional testing piloting and monitoring initiatives Government of Malta committed to develop an IT culture and e-economy in the island EMC/WSC supportive toward local citizenship culture improvement, environmental issues and open to become a reference show case
23 What next in Malta? IUBS first priority is to reduce leakages in the distribution system and in the revenue collection through the transformation of M2C process Within SPIS Government, Utilities and their partner IBM will keep up to date the solution deployment during the implementation period through the injection of new technology whenever feasible On top of that Government, Utilities and their partner IBM will looks for additional highly visible initiatives that contribute to maximize the fall back on the Maltese community in terms of IT knowledge Strategic Programs and Initiatives Stream (SPIS) is the community-sensitive module of the program
24 Malta Cooperation for a smart grid nation.
25 Thank You 25
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