Smart Energy Concepts

Transcription

1 April 15, 2014 Energy Concepts How Far Are We and What Are the Benefits for Energy Consumers Alexander Lüscher, E&U Strategy Lead Europe

2 Status Quo of Energy Concepts: We see substantial technical advances, but so far mixed outcomes Grids Home Electric Vehicles Metering Energy means Storage Generation Security Carbon Emissions Consumer Value Sustainable Investments Financial Performance 2

3 We see six prevailing forces in European energy markets $ Financials Assets Efficiency Wholesale price drops and new renewables subsidies squeeze margins Aging asset performance with increased expectations on reliability Increased pressure on operational efficiency and workforce productivity Climate Change Renewables Technology Environmental concerns & regulation drive shift from fossils to clean electricity Grid has to cope with more volatile and distributed generation resources New entrants and leverage of investments made in disruptive Energy technologies These market forces are, collectively, forcing major changes within the utility business models and the relationships between participants in the value chain 3

4 On the consumer end, increasing instrumentation in all areas of life drives convergence of industries and emergence of new platforms Energy Healthcare, Welfare/AAL Travel & Transportation Electronics, Media & Entertainment Insurance Security Retail Services Marketplace (Business Platform on Cloud) Remote access Sense & respond Dynamic monitoring Security Real-time mgt Analytics Smoke/ CO detector TV Medical device HVAC Lighting Washer Distributed Generation Vehicle Shower/ Warm Water Security system Refrigerator Mobile phone/ Computer Consumer 4

5 Advances in renewables technologies and the era of smart drive major industry change and how the incumbents run their business Grid Operations Distributed Generation Integration New Renewables Integration Microgrids Predictive Asset Maintenance Distribution Grid Monitoring Demand-side Response Mobile Workforce Optimization etc. Data Velocity Data Volumes Data Veracity Data Variety Generation Diverse Forecasting, e.g. Weather Prices Demand & Supply Distribution Load & Scheduling Intelligent Plant Lifecycle Management Unit Commitment & Fleet Optimization Micro-generation Storage etc. 5 Customer Operations Metering & Beyond Dynamic Pricing Front Office Digitization (Customer Experience, Customer Analytics & Insight) Electric Vehicles (Usage Patterns, Charging Control, Billing etc.) Demand-side Response. Creating business value from vast amounts of disparate data in interrelated domains is one of the key challenges many Utilities face today

6 Utilities need to develop a set of strategic capabilities to take advantage of arising opportunities Strategic Capabilities Lean, Agile & Scalable Operating Model Analytics, Modeling & Optimization Innovation Management Sample Opportunities Adjacent to Utilities Demand Response Distributed Generation/VPP Energy Storage New to Utilities Electric Vehicles Home/Consumer Energy Info Services Building Services 3 rd Party Energy Mgt Forecasting Services Energy = key enabler for energy efficiency adoption + integration of new technologies 6

7 Example 1: Operating Model Integrated as a Service Model for Energy Access Services Value Added Services Device Services DSO Retailer External Access Metering Portal Intelligent Meter NW Mgmt Metering Efficiency Portal MOC Meter Rollout Support... Customer Operations VPP Renewables Monitoring Grid Demand Response Predictive Maintenance Distribution Grid Monitoring... Home/Building & EV Metering Gateway Metering Churn Mgt Market Manager Next Best Action EV Charge Pole Reservation Home Appliance Welfare Appliance Mobile Device Flexible Tariffs Customer Analytics... Charging Home Security Core Business Process & Technical Services... Home Gateway Home/ Building Web Browser Grid Visualization Reporting Analytics Optimization Billing ecommerce Grid LV_RTU Substation Data Mgt Integration Processes Security Asset Mgt Systems Mgt Grid powered by IBM Intelligent Energy Services Enablement Platform (IESEP) 7

8 Daily Usage (kwh) Summer Usage - Variation from Average Daily Usage (kwh) Example 2: Analytics & Optimization Metering & Customer Analytics enables Cross-Selling Visualization of different groups of consumer based on their seasonal usage Thereupon, identifying individuals for targeting marketing of home security products Visualization of Segments Based on Seasonal Usage Homes Used During the Working Week Only 500% Unusual usage % Typical comparison between Winter & Summer usage Average Potentially 300% energy conscious users little increase in usage during winter 200% 100% Typical usage Increasing 0% consumption -100% 0% 100% 200% 300% 400% 500% 600% -100% Potentially vulnerable user Winter usage disproportionally low compared to Summer Winter Usage - Variation from Average Time switch heating? High Winter usage potential targets for energy saving products? Home Security Frequent usage dips suggesting property left Individual meter IDs unoccupied at weekends and/or Typical Usage Comparison for frequent prolonged periods /07/ /08/ /09/ /10/ /11/ /12/ /01/2010 Frequent Prolonged Periods of Absence Average /07/ /08/ /09/ /10/ /11/ /12/ /01/2010 8

9 Example 3: Innovation Management Showcase for successful business model innovation in E&U Drive scale though strategic partnerships Cities Home Convergence of Energy & Telecommunications Utility Telecoms (Broadband) Telecoms (Entertainment) Telecoms Partner Network Value Added Services on Telecom Infrastructure Services Energy Welfare Leverage infrastructure, scale & partners to develop new businesses 9

10 Energy benefits are manifold and will be driven by new market models. However, this puts the incumbent at risk Consumer Utility Society Benefits Choice & personalization Consumption control & reduction Lower (relative) energy cost Self-generation & sale of excess energy Next generation Services Customer centricity & intimacy Operational efficiencies New business models, revenues, profits Transformation driver New jobs Carbon emission reduction Value of next generation Services Potential Downsides (Temporary) price increase Increased complexity Increased competition Pressure on margins Risk of stranded assets Disruptive new entrants Challenge to transform National competitiveness Increased risk exposure of critical national infrastructure Unless Utilities transform, disruptive new entrants will enter the space and gradually erode the incumbent s future business 10

11 Alexander Lüscher E&U Strategy Lead Europe IBM Europe Phone IBM Switzerland Vulkanstrasse Zurich Switzerland 11