Frank Lewis Partner, Global Business Services IBM, Georgia, USA IBM Corporation

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1 Frank Lewis Partner, Global Business Services IBM, Georgia, USA

2 The electricity network will change more in the next 20 years than in the last 100 Global Drivers Economy Climate change & the environment Industry Imperatives Increased reliability, power quality, & rate pressures Growth in renewable generation & distributed resources Technology Customer focus on conservation 2

3 Market forces are creating an evolution in the value chain Traditional Energy Value Chain Transformed Energy Value Chain Coal/Natural Gas Solar Energy Storage UTILITY Hydroelectric Nuclear UTILITY Wind Coal/Natural Gas Hydroelectric Solar Energy Storage Nuclear Wind Solar Energy Storage Plug-in Vehicle Wind Consumer Power Flow Periodic Information Flow Continuous Information Flow

4 The global market By June, 2009, 44 US States had utilities with some smart metering pilots or installations The European Commission mandated implementation of time-of-use rates by 2015 The smart metering industry will experience an estimated 41% increase in Europe and 89% in North America by 2012 Global investment in smart meter programs will top $25.5B by

5 Smart Grid transformation IBM s focus Intelligent Utility Network (IUN) is IBM s solution for Smart Grid transformation IUN is part of larger additional billion dollar investment in Energy & Environment by IBM IBM is making significant investments in Smart Grid solutions IBM s Intelligent Utility Network (IUN) is a component of IBM s Energy and IBM s Intelligent Utility Network (IUN) is a component of IBM s Energy and Environment Initiative Environment Initiative Applying innovative information technology and services that really matter to businesses, governments, Applying innovative people and information the planet technology and services that really matter to businesses, governments, people and the planet Intelligent Transportation Systems Intelligent Transportation Systems Intelligent Utility Networks & improve transportation usage Intelligent & improve Utility energy Networks mgmt Measure Reduce traffic & improve congestion transportation usage Measure Advanced & metering improve energy mgmt Reduce CO2 traffic emissions congestion Improve Advanced efficiency metering usage, Increase Reduce mass CO2 transit emissions usage Reduce Improve outages efficiency usage, Reduce Increase energy mass usage transit usage Improved Reduce grid outages management Improve Reduce environment energy usage Mange Improved distributed grid management energy Improve environment Mange distributed energy Carbon Management Carbon Management & reduce carbon emissions Measure Carbon Mgmt & reduce Strategycarbon emissions Carbon Carbon Mgmt Mgmt Intelligence Strategy Supply Carbon chain Mgmt management Intelligence Property, Supply buildings, chain management workplace Property, buildings, workplace Energy Efficient Technologies Energy Efficient & Services Technologies & Services &manage efficient IT Create Active energy &manage management efficient IT IT facilities Active energy infrastructure management efficiency IT facilities infrastructure IT operations efficiency efficiency Monitoring IT operations and verification efficiency of efficiency Monitoring goals and verification of Demand-side efficiency goals efficiency Demand-side efficiency Advanced Water Management Advanced Water Management Measure and manage water systems usage and Measure quality with and real-time manage water knowledge systems usage and Weather quality event with mgmt; real-time flood management knowledge Real-time Weather monitoring event mgmt; and flood analytics management for water usage and Real-time water quality monitoring and analytics for water usage and water quality Project-based experience: over 25 AMI engagements, over 15 Smart Grid engagements

6 IBM s Smart Metering & Smart Grid Projects 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 Northwest National Laboratory Pepco Holdings Inc Progress Energy Sempra Energy Southern California Edison Toronto Hydro AEM Torino ASM Brescia DONG Energy EDP E-Energie EnBW Enemalta Enel E.On EnergiMidt ESB Networks Göteborg Energi Oxxio RWE npower Scottish & Southern Energy Terna 30 Italian distributors Country Energy Energy Australia NDPL

7 What makes a grid Smart? - Three key components. Intelligent 5. Presentation Customer Web Customer Mobile Devices Display Device Interface Field Employee Mobile Devices Employee Portal/Dashboard Paper Bills 4. Applications & Analytics WMS Network Analytics Call Management GIS Meter Data Collection Asset Management Load Control OMS EMS CIS MDMS DMS Interconnected 3. System Integration Platform Smart Grid Integration IEC CIM, BPEL, WebServices, SOAP, XML Servers Computing Infrastructure Storage and Backup Security Management Systems Management System and Network Management Business Process Management Application Integration Messaging & Web Services Instrumented 2. Integrated Communication Networks 1. Smart, Connected Devices Home Area Network Smart Appliances Load Control Devices Electric Vehicles Outlets In-home Devices Neighborhood Network Advanced Electric Meters Advanced Gas Meters Advanced Water Meters Smart Meters Access Network Switches Reclosers Condition Sensors Voltage Controllers Substation & Grid Devices Backhaul Network Smart Grid Devices IEC CIM, IEEE, C12.22, HomePlug, WiFi, ZigBee, OSGi, NIST etc. Ruggedized Laptops Handheld Data Devices Cell Phones Personal Computers In-Home displays Office Network Human Interface Extranet Solar Panels Wind Turbines CHP Energy Storage Distributed Resources

8 There are challenges in how to integrate devices, networks and applications Milliseconds Seconds Minutes Hours Transmission Management IUN Domain Wholesale Market Operations Distribution Management Distribution Automation Outage Customer management service Load Control AMI Operations The Smart Grid: Impacts the entire utility Increases data volumes dramatically Means data is held in various locations, states & versions Days Weeks Months Wholesale Settlement C&I VEE Complex billing Load Research Residential VEE Revenue Protection Means exponential increase in number of remote computing devices to manage & connect Wholesale High Voltage Commercial Medium Voltage Residential Low Voltage Requires increasingly lower latency further down the distribution network

9 Key considerations in building a Smart Grid Smart Grid Initiatives Advanced Metering Grid Operations Physical & Cyber Security Communications Networks Emerging Areas Electric Vehicles Renewable Resources Develop Smart Grid vision. Assess / conduct a pilot. Develop an overall architecture. Plan, design, build, and rollout Smart Grid Initiatives. Establish Smart Grid-wide monitoring and diagnostics. Transform business processes. Realize benefits. Manage and continually assess security. Provide business analytics and optimization.

10 Develop an overall architecture Service Management * Process Services EMS Access Services * Business App Services Business Optimization Services OMS Trading EAM Process Modeling & Workflow Scada MDM CIS WAMS GIS Enterprise Service Bus Data Transport Data Sources ERP Finance * Interaction Services AMM * * IT Management Security Services Information Services Development Services Partner Interaction

11 Establish Smart Grid-wide monitoring and diagnostics New Data Types and Sources: Low cost smart sensors Smart grid devices (meters, switches, reclosers, capacitor bank controllers) with microprocessors New data sources include: SAP and other company applications Outage Management Systems Customer Information Systems Energy Internet Measure and optimize operations through collection, correlation & analysis of operational data Pervasive Monitoring Requirement: Collection and correlation of sensor data Fault and failure detection and localization Device state and history monitoring Power Quality and Reliability monitoring Safety and security monitoring

12 Establish Smart Grid-wide monitoring and diagnostics IT Operations Views Energy Internet Real time Operational Indicators Auto-Service Dependency Mapping Root Cause & Service Impact Analysis Event Summary Indicators Real time SLA Tracking

13 Establish Smart Grid-wide monitoring and diagnostics Grid Operations Views Energy Internet

14 Manage and continually assess security A Smart Grid needs security enforcement at multiple points. SCADA network systems Communications link Advanced meter data mgmt. system Substation monitoring equipment Meter to Cell Relay

15 Manage and continually assess security Build security to meet four key requirements: Provide Assurance Enable Intelligence Automate Process Improve Resilience

16 Provide business analytics and optimization Data management and analytics strategies the foundation Sensing Metering Data collection Real Time Data Integration Data Integration Real Time + Historical Data Data Modeling + Analytics Visualization + Decisions Comparison of historical data, with newly collected data Data modeling and analytics to create insights from data to feed decision support and actions

17 Provide business analytics and optimization Realtime Monitoring, Detection, Response, and Automation Sensing Metering Real Time Data Integration Real Time + Historical Data Data Modeling + Analytics Visualization + Decisions Realtime monitoring of data Detection of issues within the grid Schedule proactive maintenance as indicated Anticipate and circumvent outages Automate detection and full response

18 Provide business analytics and optimization Transforms Data Into Information Key Characteristics Optimization Analytics WAMS CIS OMS Planning Engineering ERP MWFM Doc. Mgt GIS Utility Applications External Applications Analytics Stack Flexible Scalable Adaptable Compliant Application Integration EMS/DMS EMS/DMS Historian Communications Infrastructure IP Enabled Digital Communications Network Gateway Mobile Field Force Grid Data Sources Smart Sensor Platform Distributed Line Sensors Equipment Monitoring Meter Network

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