Energy & Telco synergies EU Brussels Workshop 27 may 2011

Transcription

1 Food for Thought Energy & Telco synergies EU Brussels Workshop 27 may 2011 Peter Hermans

2 Point of views 1. From an Utility perspective Telco offerings The grid becomes smart Smart means connected Connected means Telecommunication needs What do we need from Telco s? Grid Telco needs Utilities Building a Smart Grid 2. From a Utility & Telco comparison perspective Managing Telco networks & services Managing Utility networks & services What can we learn from each other What can we re-use? Managing Utilities Networks & Services Managing Telco Networks & Services Comparison What can we learn What can we re-use How do we work together 2

3 Application issues Understand what will happen to the business of the Utility Industry Comparison with the Telco Industry Opportunities to learn & cooperate What are the issues 3

4 Energy transition as context The ability to change will be key Europe s electricity markets and networks must evolve to meet new challenges Market competition & consolidation Climate change related legislation Introduction renewable variable energy resources Transition to Demand/Response to Consumer Energy Real time Flat Time of use 2008 Utility 2020 Control by Consumer Energy Demand Response Demand Supply Consumer Gartner Reaching the 5x20 targets 20% energy from renewable sources 20% less CO2 emissions; 20% higher efficiency; in

5 Changing Business Characteristics A disruptive business transformation ahead Energy flow Grid Parties Role of customer Portfolio E-supplier End user Price Risk at Margin based on Forecasting Today Unidirectional Few to Many, hierarchical Consumers, Producers Suppliers, Markets, DSO & TSO Energy Consumption Energy Supply, Trade Customer care & Billing Fixed, fuel based Supplier Revenue- Energy costsinternal costs Relevant for supplier Tomorrow Bidirectional Many to many, mazed Consumers, Producers, Prosumers, Broker, Markets DSO & TSO Consumption, Production, Storage Risk, Balancing, Settlement, Trade, Customer Care & Billing, Asset, Advisory Volatile, weather based Prosumer, Broker Balancing/Risk, Transaction based margin Relevant for Prosumer & Broker 5

6 The changing customer relation & portfolio Becoming part of the system Supplier Customer Relation DSO Customer Relation Consumer Prosumer Supplier Energy Services Provider Portfolio E transaction services Balance & risk services Wholes sale settlement services End user settlement services Customer care & billing services Advisory & investment services Asset services Intensified market analysis required for adequate network & asset planning Intensified customer relation related to energy forecasting and maintaining system integrity Handling customer data (smart meters) Portfolio (additional) Decentralized balance & congestion Storage (peak shaving) Financial services 6

7 The Value Chain perspective Consumer Supplier Grid Operator Wholesale Markets Energy Consumption Today Energy supply End-user Customer Care & Billing Energy forecasting & planning Bulk Energy Generation Energy trade Balance Wholesale settlement Grid capacity forecasting & planning Energy transport Balance Allocation Reconciliation Asset Energy Trade WS settlement Prosumer Prosumer Community E-Service Provider Bulk Generation Grid Operator Wholesale Markets Note 1 Energy Consumption Energy Production Energy Storage Energy Prosumer Asset Tomorrow Intra end user settlement Energy forecasting & planning Energy buy/sell Community Energy Wholesale settlement End-user Customer Care & Billing Energy forecasting & planning Agregator Energy trade Balance Wholesale settlement Energy generation Whole-sale settlement Asset Grid capacity forecasting & planning Energy transport Energy storage Balance Allocation Asset Energy Trade Whole-sale settlement Note 1: Physical Virtual 7

8 Opportunities for the Industry IT as business enabler will make the difference Tomorrow Prosumer Prosumer Community E-Service Provider Bulk Generation Grid Operator Wholesale Markets Note 1 Energy Consumption Energy Production Energy Storage Energy Prosumer Asset Intra end user settlement Energy forecasting & planning Energy buy/sell Community Energy Wholesale settlement Extended Energy Services Provider End-user Customer Care & Billing Energy forecasting & planning Agregator Energy trade Balance Wholesale settlement Energy generation Whole-sale settlement Asset Grid capacity forecasting & planning Energy transport Energy storage Balance Allocation Asset Energy Trade Whole-sale settlement The Utility of the Future is an Information Utility! Note 1: Physical Virtual 8

9 An Architectural Reference Framework and Standards are needed Why: Liquid Energy Markets (Wholesale) example To manage complexity To maintain system integrity Free Market domain Level 3 Service Provider Energy Regulated domain Intelligent Energy Flow To ensure market model alignment To ensure the creation of consistent legislation To develop consistent applications/services Level 2 Level 1 Community Energy Prosumer Energy Intelligent Transport & Distribution Grid & Grid Asset Grid endpoint (Smart Meter) To enable innovation Level 0 Equipment & appliances Grid 9

10 Standardization Vision & Ambition Reference Framework NIST Special Publication 1108 NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0 Office of the National Coordinator for Smart Grid Interoperability Legislation Standards Business change Societal behaviour change Technology capabilities 10

11 Utility & Telco comparison: Opportunities to learn & cooperate Telecommunications Utilities Legislation Open Network Provisioning Unbundling Business Key Concepts Service providers & Network Operators Focus on fair competition Business model disruption: Transformation to internet Customer role: Provides & uses services Products:IT defined products (eg Mobile bundles) Charging,billing& settlement: realtime Roaming services Services independent of networks IP based networks; intelligence (services) outside the network Element Network Service No centralized control on service providing & usage Supliers, DSO,TSO, System Operator Focus on fair competion & targets Business model disruption: Transformation to decentral production & E storage Customer role: Producer & consumer of energy (prosumer) Products: IT defined, flexible pricing (Demand/Response) To come ( E-mobility) To come ( E-mobility) Energy usage independent of grid connection Decentralized production (renewables) Asset Grid Energy flow Centralized control required for garanteeing system integrity & security of supply Reference models TMN NIST US (emerging) etom reference model? Standards Organisations Technology TMF/ETSI/CCITT PDH:Technology designed from a element perspective SDH: technology desigend from a network perspective CEN Cenelec, NIST (US) Current technology Future smart grid technology Datavolume Itemnized billing Smart metering Company culture Competative Competative - 10 years 11

12 To summarize : Application Issues Investigation of posible collaboration between Utilities & Telco s should start from a business perspective (outside in): Markets/Customers Products/services Processes Data functionality/ Applications Infrastructure services From an IT point of view there is a lot of synergie between Telco and Utilities and potential for cooperation; In order to initiate actual collaboration & innovation, however, business synergies should be created Telco- Utility cooperation could be different for DSO & suppliers: For a DSO a Telco could be a supplier or partner (public private cooperation) For a Energy Supplier a Telco could be a supplier, partner or competitor (Gartner 2009: The Utility of the Future is an information Utility!) The Utility sector at least requires a reference model/framework driving standardization and (accompanying) consistent legislation Re-use of models from the Telco space has potential: Proces models, Common Information Model. Interaction patterns defined from roles in the reference model should drive the standardisation of application services. The EU should drive this (Task Force Smart Grid) Markets/ Customers Products/ Services Processes Data Functionality/ application services Infrastructure services 12

13 Infrastructure issues 1. Is the communication infrastructure, required for smart grid, part of the smart grid, or do we regard it as a service that can be obtained from the liberalized market? Smart Metering Architecture What was the rationale of unbundling? What level of control, nations want to have over their Energy Infrastructure How strong is the impact of communication outages on system integrity & security of supply? Do we agree that communications is the core business of a Telco and not of an Utility? 2. Both suppliers as DSO s will require last mile connectivity (smart metering from DSO perspective, consumer energy services from an supplier perspective) Will this lead to silo approach? Opportunity for Telco s? 3. How do we enable public/ private cooperation? Public ownership/ privately operated? Cooperation on standards : CEN/CENELEC/ETSI a.o.? Centralized Decentral (Customer location) Production Usage Supplier (Liberalized market) Storage Billing & Settlement Forecasting, Trading & Production control CRM Consumer Energy MDR IP network P1 P4 P1 DSO (Regulated market) CTS P3 P3 Smart meter (E) network P2 (G) Grid 13

14 Background material See: - Next slides - Attached article - Presentation on 14

15 Introduction Peter Hermans Stedin & Eneco Peter Hermans: Started in 1983 in the Telecom sector in the Netherlands. Worked on IT strategy & systems development for Network of Digital Networks, CRM & Billing, Internet Services Delivery, Enterprise Architecture and Integration (SOA). Joined the Eneco group in 2007, where since then, he initiated company change programme s on several business- IT strategic issues, related to unbundling, smart metering, smart grids & regulatory requirements, including the set up of Eneco s Enterprise Architecture, Application Portfolio, and Roadmaps. MSc degree on Telecommunications, a CMC degree on change, (ICMCI); 54 years old Stedin s (DSO) Ambition: Total Grid Operator Distribution System Operator E and G > 2 Mio Customers Contribution to sustainable energy supply Providing extra value for our clients Participation, financing, and exploitation of transport infrastructure, for the benefit of independent transport of energy and energy related products Eneco s (Supplier) Vision/Strategy Sustainable, Decentral, With customers Consumer becomes Energy Producer 100% Energy Supply from renewable sources in

16 Objectives of the Workshop to bring together utilities and telecom companies in order: to create a favourable business, regulatory, and technological environment for a low carbon electricity grid, to influence the policy making process, to clarify which data could be transmitted in Smart Grids via existing (and future) telecom network infrastructures and which data might need to have a dedicated connection/network for the purpose. 16

17 The challenges of standardization US: is moving fast, Europe is behind EU: needs to orchestrate the initiatives NL: are our Market Models future proof? Dutch sector: Are we connected to the initiatives? Global IEC tech. committees coordinated by Strategic Group 3 Smart Grids Strong link with US (e.g. NIST, UCAIug) Also IEEE, ITU, ISO, etc. US NIST pushes hard on standards development and stakeholders. Conceptual framework Smart Grids Standards gaps identified (as did many other groups) EU EC Directives EC Smart Grids Task Force Standardisation mandates for CEN, CENELEC and ETSI Smart Metering Smart Grids Electric Mobility NL EZ Taskforce Intelligente Netten Proeftuinen Stroomopwaarts NTA8130 (Smart meters) 17

18 NIST NIST has identified five families of foundational standards as ready for consideration by regulators. Developed by the International Electrotechnical Commission (lec), these identified consensus standards are: IEC and IEC 61968: Provide a Common Information Model (CIM) necessary for exchanges of data between devices and networks, primarily in the transmission (lec61970) and distribution (lec 61968) domains. lec 61850: Facilitates substation automation and communication as well as interoperability through a common data format. IEC : Facilitates exchanges of information between control centers. IEC 62351: Addresses the cybersecurity of the communication protocols defined by the preceding IEC standards. 18

19 E TOM reference model 19 19

20 Architecture modelling Defining the landscape End user Business focus Function Focus Customer CPLM Billing 1) Energy Asset Enterprise Local renewable generation Delivery End user delivery B2B, Retail Installation companies Energy Trade Commercial domain Commercial distribution Fysical distribution Centralised renewable generation Energy Generation Transport (Grid Operations) Public domain Biofuel wind, solar Infra (Engineering, construction & maintenance) Commercial domain 1) Customer & Product Lifecycle 20

21 Information Architecture Business roles/portfolio Delivery Electricity, Gas, Heat, CO2 Metering (BM) Consumer energy installations Trade Sourcing, Trade E,G,W Shipper, PV role Generation E,W Generation Wkk/ Wkk-control Energy storage Transport Transport E,G,W Infra Infrastructure maintenance & operations 21

22 Information Architecture Functions CPLM Billing Energy Asset Enterprise CRM Marketing & Sales Product Contract & Order Planning & design Asset operations & maintenance EDM Balancing Portfolio/ position man Al/Recon Business planning & control HRM & Finance Org./ Processes /systems 22