smart grid ibm
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IBM Research
Smart Grid: Components and TimingFERC-NARUC Smart Grid Collaborative
Ron Ambrosio
Global Research Leader, Energy & Utilities Industry
Senior Technical Staff Member
IBM TJ Watson Research Center, Yorktown Heights, NY
U.S. Dept. of Energy GridWise Architecture Council Chairman
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IS THERE AN OBVIOUS SEQUENCE TO GRID DEVELOPMENT?
What are the key components of a SmartGrid?
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Many starting points for smart grids
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Utility Business FunctionsAsset ManagementEquipment Condition Monitoring
Real time knowledge of asset health,
sweat the assets whilst controllingoperating risks
Increased asset life thru better
management & maintenance
Optimize Capital and O&M spending
Remote management of Sensors/IEDs
Operations ManagementIntelligent devices, sensors & meters to
eliminate system "blind spots"
Faster detection and localization ofoutages
Better load balancing & maintaining
stability
Locate power quality, reliability & fault
issues before they impact customers
Workforce Management Reduce frequency and duration of site
visits through remote monitoring and
configuration
Accurate response to outage location &
cause
Better prepared & informed crews
Captures the knowledge of staff
Planning ManagementAccess to accurate historical operations & asset data
improves grid planning
Optimize CAPEX across grid, defer capital
investments
Accurate design & sizing of new/ replacement
equipment to meet demand / growth
Investment decisions based on customer profile
Customer Experience Meet Regulator expectations
More choices about price and service
Less intrusion
More information with which to manage
consumption, cost, and other decisions.
Information Management Provides a common infrastructure for
Utility applications & communications
Access and re-use of common services
Data inputted one time, re-used many
times
Reduced system integration costs
Reduced operating costs
Reduced system maintenance costs
Revenue ManagementIntelligent meter a portal to the consumer
Profile of customer usage
Remote connect/disconnect, load control
Assurance of billing/revenues
Customer participation in time based
rates
An intelligent sensor on the grid
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ASM BresciaIntegrated automatic meters increase service, security and revenue
Business challenge
ASM Brescia sought to automate its gas and electricity meter readingprocesses. Sending employees out to read meters manually meant the
company was slow to collect revenue and it left too much opportunity forutility theft. Automating the process would allow the company to remotelyconnect and disconnect service, more efficiently monitor usage levels andreduce customer service costs.
Solution
IBM Business Consulting Services is managing a five-year project to
install a comprehensive automated meter management (AMM) solution.The project involves integrating more than 200,000 automated electronic
meters in an end-to-end solution that links the meters directly to ASM
Brescia's billing and customer service systems, replacing all of ASM
Brescia's traditional meters by 2006.
Benefits
New integrated meters will enable the company to offer highlycustomized, flexible commercial service packages and pricing options
Improved compliance with network monitoring and optimizationregulations
Increased service reliability
Improved fraud/loss management, faster revenue collection
Improved customer service
Solution Components Global Business Services
IBM WebSphere Software
2007 IBM Corporation
Intelligent Utility Network
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Business challenge
DONG Energy is Denmarks largest energy company. Increasing
marketplace and regulatory demands along with a need for futureinfrastructure reinvestment drove Danish utility company DONG Energy to
look for a way to better manage and utilize its electrical distribution network
in order to respond to outages faster and more efficiently.
Solution
DONG Energy teamed with IBM to implement an Intelligent Utility Network
(IUN), installing remote monitoring and control devices that give the
company an unprecedented amount of information about the current stateof the grid. The new solution also involves extensive analysis of the data
provided by the remote devices, as well as reengineering of DONG
Energy's business processes. The IBM designed service-oriented
architecture (SOA) IT infrastructure to accommodate the new processes. ,
SOA makes IT processes far more flexible and scalable, improving DONG
Energy's responsiveness.
Benefits
Potential to reduce outage minutes by 25-50 percent
Fault search time reduced by one-third
Estimated capital savings on planned grid reinforcements of up to 90percent, when fully implemented
It turns out that the real
key isn't the fact that
we've got visibility into the
grid, though that was our
initial goal. It's that we
now have information
available on grid
performance that we
didn't have before. We
can do a lot with that
information. Peter
Vinter, power grid
specialist, DONG Energy
DONG EnergyMaking the most of the intelligent electrical grid
Solution Components Global Business Services
IBM Software Group
IBM Business Partner
PowerSense
Intelligent Utility Network
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TernaIncreased reliability and manageability of their telecommunication infrastructure
Business challenge
After a major 2003 blackout in Italy, Terna discovered that it had a
transmission problem that was due to loss of telecommunications signaling inthe leased lines it used to monitor and manage its network. To improve the
reliability of the network, Terna needed a new and advanced backup system
to eliminate weak points and a centralized monitoring solution for its 300 field
stations.
Solution
Back-up IP network over power lines supplements superior MPLSfunctionality
Forward Error Control patch-panel solution with Asset LifecycleManagement
Joint Cisco-IBM team covering development, implementation andmaintenance
Benefits
Improved safety and security across entire nationwide high-voltagenetwork
New equipment costs at field stations cut by 90 percent
Low-maintenance costs
Digital solution will allow central monitoring and control of electrical line
In the energy sector,many of the technologiesare very old and they arenot open. We spotted theopportunity to create away of dealing with our
telecommunications thatwould get rid of a closedtechnology a customcomponentand insteadintegrate solutions on anopen standard platform,like the Cisco MPLSnetwork we are nowdeploying.
Carmine Auletta,CTO, Terna
Solution Components Global Technology Services
Intelligent Utility Network
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THE SMART GRID MATURITY MODEL
How some utilit ies are planning their smartgrid roadmaps and investments
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Global Intelligent Utility Network Coalit ion
COALITION KNOWLEDGE TRANSFER
Formal knowledge sharing sessions organizedcovering key topics:
Fault Location
Automated Metering
Business Benefits Repository
Demo Centers
Advanced collaboration tools enable members topresent and share their expertise
COALITION DEVELOPMENT PROJECTS
The Coalition is jointly developing the followingthought leadership projects
Business Models of the Future
Embedded & Distributed Generation
Messaging
Smart Grid Maturity Model
Project deliverables and assets will likely be sharedwith industry as appropriate
- Smart Grid Maturity Model already made available to industry
MEMBER UPDATE
Seven leading utilities have joined the coalition: CNP...Q1 07 / USA
PHI ... Q2 07 / USA
Sempra Q4 07 / USA
Country Energy .. Q4 07 / Australia
Progress Energy .Q2 08 / USA
DONG Energy .Q2 08 / Denmark
NDPL Q3 08 / India
Two final coalition members will join in late2008/early 2009:
1 SW Europe Q4 08 / Q1 09
1 China/Japan/Asia Pacific . Q4 08 / Q1 09
Country
Energy
NDPL
DONG
Energy
PHI
PGNSempra
CNP
A TRULY GLOBAL COALITION -- Serving 46mElectric & Natural Gas Consumers
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9 Copyright APQC 2008. All Rights Reserved
Why was a Smart Grid Maturity Model Needed?
A maturity model can move an entire industry forward
> To establish a shared picture of the Smart Grid journey
> To communicate the Smart Grid vision, internally and externally
> To assess current opportunities, choices and desired levels
> To use as a strategic and decision making framework
> To develop business, investment and rate cases
> To build an explicit plan to move from one level to another
> To measure progress using Key Performance Indicators (KPIs)> To benchmark and learn from others
It is not a tool for assessing utilities against each other
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12 Copyright APQC 2008. All Rights Reserved
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Eight smart grid domains and important elements
Societal andEnvironmental
Technology
Information, engineering, integration of
information and operational technology,
standards, and business analytics tools
Conservation and green initiatives,
sustainability, economics and ability to
integrate alternative and distributed energy
People and Technology Domains
Strategy, Management
and Regulatory
Organization
Vision, planning, decision making,
strategy execution and discipline,
regulatory, investment process
.
Communications, culture, structure
Work and Asset
Management
Grid Operations
Value Chain Integration
Customer Managementand Experience
Optimizing the assets and resources
(people and equipment)
Advanced grid observability & advanced
grid control, quality and reliability
Enabling demand and supplymanagement, distributed generation,load management, leveraging market
opportunities
Retail, customer care, pricing options and
control, advanced services and visibility
into utilization quality, and performance
Process Domains
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THE GRIDWISE ARCHITECTURE COUNCIL
Decision Makers Interoperability Checklist
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Outline of the Checklist document
Introduction to Interoperability
An overview of the Checklist and its use
Four checklist question categories
Architecture and design
Interconnectivity and security
Evolutionary capability and service life Collaborator independence
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A few example Checklist questions
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3) Does the proposal maintain technology neutrality, in that it specifies performance results and outcome
requirements rather than prescribing a specific technology or method to achieve those results?
This allows vendors to innovate and compete by developing and improving technologies, which can create
significant opportunities for new value.
10) DDoes the device/project use at least the basic cyber-security measures as recommended by the NERCCritical Infrastructure Protection standards? Does the device/project follow industry consortia (e.g.
UtilityAMI, CEC PCT Reference esign) security and privacy recommendations?
As grid interconnectivity and interdependence increases, the grid becomes more vulnerable to threats from the
failure of its information technology nervous system. This means that every element of the grid must
incorporate cyber-security protections. Privacy protections are necessary to protect users and grid entities
information and identities.
12) Can the device be updated or have its functionalities upgraded by downloading new software and
configuration information?
A device that lacks built-in intelligence, upgradeability, and connectivity and requires physical modification,
whether to replace a chip-set or bolt on new equipment, is more difficult and more costly to upgrade and is
likely to become obsolete and stranded faster.
14) Does the device or project allow collaborators or users to make independent decisions (within defined
parameters such as contractual provisions, NAESB wholesale agreements, electric market rules, or tariff)?
As the complexity of the electricity system grows, most interactions and transactions will require willing,
consensual partners rather than command-and-control relationships. Therefore, it should allow users and other
collaborators to modify automatic responses by user over-rides or permissions.
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Closing Comments
There is no single defined path to the smart grid vision
Where a Utility begins, and how far they go depends on the
specific situation at that UtilityMany subprojects can be implemented in parallel, but there are
usually pre-requisite tasks/activities within a subproject
E.g., Regulatory structure needs to be defined for Demand ResponseAutomation programs (including Plug-In Vehicles, which are a separate,
special case most likely)
Tools such as the Smart Grid Maturity Model may
eventually have wide adoption, and can also be helpful to
Regulators in understanding how Utilities are planning
roadmaps and making investment decisions
The Decision Makers Checklist is another tool for
Regulators, and the Council wants to work with the
Regulatory community to improve it and develop of tools17
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Contact
Ron Ambrosio
Global Research LeaderEnergy & Utilities Industry
Ron Ambrosio/Watson/IBM@IBMUS
+1 914-945-3121
IBM T.J. Watson Research Center
P.O. Box 218
1101 Kitchawan Rd. / Route 134
Yorktown Heights, NY 10598
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