Smart Grid: An Industry's Strategic Growth Case
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1 Smart Grid: An Industry's Strategic Growth Case Plenary Session 3: Smart Grid: From Concepts to Reality October 12, 2010 IBM Proprietary
2 Understanding the Whole Utility Enterprise: Moving towards a smart grid requires ongoing attention in three streams Transformation Information Technology Individual Domains & Projects Business Strategy & Vision Presentation Grid Financial Government and Regulatory Stakeholder Engagement Organizational Program and Project Applications & Analytics System Integration Platform Integrated Communication s Intelligent, Connected Devices Work and Asset Experience & Value Chain Integration
3 Having a Perspective on the Technologies: Smart Grid five building blocks is composed of a number of individual technologies Informed 5. Presentation Mobile Display Device Field Employee Employee Web Devices Interface Mobile Devices Portal/Dashboard Paper Bills Analyze Act Acquire Automated 4. Applications & Analytics WMS Analytics GIS Asset OMS CIS MDMS Call Meter Data Collection Load Control EMS DMS Integrated 3. System Integration Platform Servers Computing Infrastructure Storage and Backup Security Systems System and Business Process Application & Data Integration Messaging & Web Services Connected 2. Integrated Communication s Home Area Neighborhood Access Backhaul Office Extranet Intelligent 1. Smart, Connected Devices Smart Appliances Personal Computers In-Home displays Load Control Devices Electric Vehicles Outlets In-home Devices Advanced Electric Meters Advanced Gas Meters Advanced Water Meters Smart Meters Switches Reclosers Condition Sensors Voltage Controllers Substation & Grid Devices Ruggedized Laptops Handheld Data Devices Cell Phones Mobile Devices Solar Panels Wind Turbines CHP Energy Storage Distributed Resources
4 Delivery Options Look Across the Full Energy Value Chain: Energy and Utility Solution Portfolio addresses a utility s business and technology needs Power Generation Optimization (PGO) Transmission & Distribution Transformation (COT) Corporate Support Services Plant Fleet Optimization Supply Expansion Mobile Workforce Mgmt Asset Lifecycle Mgmt Supply Chain Mgmt Care Systems Human Resources Accounting Payroll Intelligent Utility (IUN) Smart Meter & Beyond Grid Electric Vehicle/Intelligent Premise IUN Communications s IUN Security Physical and Cyber Security Solution Architecture for Energy& Utilities Framework (SAFE) Infrastructure Servers, storage, communications networks and equipment and associated services
5 One Project is not a Vision: Utility Future State Connected and Integrated The Enterprise Grid Work & Asset Optimize Optimize Optimize Measure Analyze Analyze Analyze Collect Transport data to control Collect Transport data to control Collect Transport data to control More Data Measure/ Measure/ Measure/ Monitor/Control Monitor/Control Monitor/Maintain Distributed Generation Estimate Equipment Monitoring Premise AMI Substation Devices Grid Devices Assets Mobile Field Force Focus is on improving the reliability and efficiency of Utility 2010 IBM Corporation
6 Objective Focus on the : Smart Grid Maturity Model Stewardship Family SGMM Founders SGMM Governance, and Growth SGMM Global Stakeholder Representation & Advocacy SGMM Data Collection and Reporting 20 years stewarding the Capability Maturity Model (CMM & CMMI) 500+ employees Coupled with Carnegie Mellon University and the Carnegie Mellon Electricity Industry Center Established in 1923 Representing 95 member countries Host to World Energy Congress Mission: "To promote the sustainable supply and use of energy for the greatest benefit of all people" An internationally recognized nonprofit member-based research organization with over 30 years of Systematic Quality and Process Improvement Research
7 The Development of Smart Grid is a Journey with Several Stages As-Is DOMAIN SILOS INFORMATION SILOS Vertical Integration Minimal Transverse Integration Strategic Business Goals Improve Reliability Increase Satisfaction Increase Regulatory Capital Drive Sustainable Earnings Intermediate DOMAIN TO DOMAIN INTEROPERABILITY Vertical Integration Transverse Integration between Domains Have to overcome adoption of emerging information standards & data access issues To-Be/Vision ENTERPRISE INTEROPERABILITY Open data access environment Interoperability standards Utility vendors on common standards Integration middleware is Smart & services based Optimization Benefits Optimization Benefits Optimization Benefits Monitor Manage Monitor Grid Manage Monitor Work & Asset Manage Intelligent Information Exchange Services Intelligent Information Exchange Services Information Exchange Services. Meter Automated Substations Digital Relays LAN Sensors Lines Substations Crews Equipment Monitoring Equipment Work & Asset Intelligent Information Exchange Services Grid Work & Asset Grid Smart Grid Maturity Level 1 & 2 Smart Grid Maturity Level 3 Smart Grid Maturity Level 4 & 5 Intermediate Stage of Smart Grid needs to be addressed 2010 IBM Corporation
8 Smart Grid is an Engineering Project to be Thought Through: The Seven Phases of the IUN Method Mobilize Launching the engagement Maximizing benefits of the strategy Optimize Assess Analyzing the current situation IUN Method Deploying solutions within individual projects Deliver Formulate Creating the enterprise-level strategy Designing solutions within individual projects Design Define Prioritizing, defining and launching projects Copyright IBM Corporation 2009
9 Build on a Foundation: The Solution Architecture For Energy Framework for transformation that creates flexibility and accelerates deployment and integration of multiple energy & utilities software solutions Third Party Access Domain Utility Business Domain SAFE Framework Asset Monitoring and Corporate Shared Services Regulatory, Risk & Compliance Power Generation Transmission and Distribution Work Interactive Experience Plant Plant Fleet Fleet Mgmt Mgmt Supply Supply Expansion Expansion Enterprise Asset Mgmt Advanced Meter Mgmt Automation & Analytics Care Care Mgmt Mgmt Systems Systems Intelligent Utility Security Solutions Communications Domain Device Domain Process Integration Business Integration Layer Informed Decision Making Service Oriented Architecture
10 Seeing is Believing: Energy and Utilities Solution Centers Comprehensive Industry Knowledge and Analysis Solutions Experience Lab at IBM Austin Energy & Utilities Solution Center at IBM La Gaude China Development Lab E&U Solution Center A reference implementation for the E&U industry based on SAFE, featuring advanced, leading edge technologies Showcase for IBM technology integrated with key business partners - Itron - munet - OSIsoft - Siemens - Sisco Industry standards business processes and data Customized briefings and training Proof of Concepts Demonstration center which showcases innovative solutions for the E&U Industry - Advanced Meter - Energy Monitoring with Cognos - Security - EAM Maximo - BI with ILOG - Intelligent Plant Life Cycle - Knowledge with FileNet - High Performance Computing 10+ integrated, solution prototypes Demonstrations can be projected in live video anywhere in the world Value Proposition Key Solution Underpin for E&U engagement and delivery, acting as ONE team for E&U bold play in GMU Strategic partnership with Key influencer in IUN / Nuclear / Wind, contribution in Eco- System building Replicable and sustainable solution/asset with high value for both customer and IBM WW contribution to both GBS & SWG E&U solution/asset portfolio Business Scope Demo center for E&U solutions PoC and PoT with engagement team Asset and solution harvesting & enhancement for reuse New asset development with key value Investment on strategic partnership program Copyright IBM Corporation 2009
11 The Grid is Global: Smart Metering and Smart Grid Engagements American Electric Power BC Hydro BELCO CenterPoint Energy Consumers Energy Dominion Energy Entergy EPCOR Hydro One Hydro Ottawa Hydro-Québec IESO London Hydro NB Power NYC-based utility Oncor Ontario Energy Board Pacific Gas & Electric Pacific Northwest National Laboratory PECO Pepco Holdings Inc Progress Energy Sempra Energy Southern California Edison Toronto Hydro AEM Torino ASM Brescia DONG Energy EDF EDF Energy EDP EnBW Enemalta Enel Eon EnergiMidt ESB s Göteborg Energi Oxxio RWE npower Scottish & Southern Energy 30 Italian distributors E-Energie Terna Country Energy Energy Australia NDPL Shanghai Power
12 Lessons Learned from Smart Grid Projects Grids are Asset and Capital Intensive: Asset Condition Based Monitoring is Important Prove It, then Replicate It: Intelligent Grid Proof of Concept is a Good Way to Learn Before Scaling Up Never Forget the End User: Substation Remote Asset Monitoring Should have a Familiar Graphical Interface Smart Grid Incorporates Distributed Intelligence: Smart RTU Streaming Waveform via Intelligent Grid Live Portal is an Example of Design of High Frequency Data Design Electricity is Real Time Find Information Fast: Intelligent Grid Smart Sensor Drilldown Assists in Quickly Finding all Relevant Data Smart Grid is an Evolution: One can Begin with a Revision one and a Revision Two Architecture, and Refine During Implementation, and Reduce Not Risk of the Unknown
13 The Grid is Part of a Total Environment: Applying innovative information technology and services that really matter to businesses, governments, people, and the planet Intelligent Transportation Systems Measure & improve transportation usage Reduce traffic congestion Reduce CO2 emissions Increase mass transit usage Reduce energy usage Improve environment Intelligent Utility s Measure & improve energy mgmt Improve efficiency usage, Reduce outages Improved grid management Mange distributed energy Carbon Measure & reduce carbon emissions Carbon Mgmt Strategy Carbon Mgmt Intelligence Supply chain management Property, buildings, workplace Energy Efficient Technologies & Services Create & manage efficient IT Active energy management IT facilities infrastructure efficiency IT operations efficiency Monitoring and verification of efficiency goals Demand-side efficiency Advanced Water Measure and manage water systems usage and quality with real-time knowledge Weather event mgmt; flood management Real-time monitoring and analytics for water usage and water quality
14 THINK: Multi-faceted thought leadership program IBM Research The world s largest industrial research organization with about 3,000 scientists and engineers. Energy and utilities related research spans solar cell technology to the application of social computing for energy conservation IBM Institute for Business Value One of latest publications of this global institute, Lighting the Way, provides insights into the new smart energy consumer based on a global survey of 5,000 The Energy and Utilities Project Annually since 2001, IBM and Montgomery Research (now mthink) have published a collection of papers exploring the challenges that lie ahead for energy and utility company executives Software Labs and Smart Grid Demonstration Centers IBM energy industry software labs in Austin, TX and La Gaude, France along with demonstration centers build with utilities, such as CenterPoint Energy in Texas and Country Energy in New South Wales, promote the value of smart grids to the industry and public
15 Belong to the Industry: Driving industry transformation through its active participation in leading industry organizations GridWise Alliance formed in 2004 as a public private partnership working to transform the US power supply system by moving the grid into the information age. Expanded in 2008 via formation of Smart Grid Australia, plans underway to launch in India in IBM chairs the council. GridWise Architecture Council formed in 2004 working to shape the guiding principles, or architecture, of a highly intelligent and interactive electric system. IBM chairs the council. Electricity Advisory Committee formed in 2008 to provide advice to the US DOE on implementing EPACT 2005 and EISA 2007, and modernizing the nation s electricity delivery system. IBM chairs the Smart Grid subcommittee. IEEE P2030 Draft Guide for Smart Grid Interoperability of Energy Technology and Information Technology Operation with the Electric Power System (EPS), and End-Use Applications and Loads
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