© 2010 IBM Corporation Smarter Power for a Smarter Planet Overview Shlomo Shamy E&U Solutions manager Global Technology Unit (GTU) IBM Israel Feb 2011.

© 2010 IBM Corporation

Smarter Power for a Smarter Planet Overview

Shlomo ShamyE&U Solutions managerGlobal Technology Unit (GTU)IBM Israel

Feb 2011

© 2010 IBM Corporation2

Smart Energy for a Smarter Planet



A globally integrated world

6xIncrease in global water usage since the 1900s, twice the rate of human population growth

Idle computer capacity

Annual consumer product and retail sales lost in United States due to supply chain inefficiencies

$40 billion

85%40% to 70%The losses of electrical energy due to inefficiency - around the world

People worldwide pushed below the poverty line by personal healthcare expenditures

100 million

Annual impact of congested roadways

$78B lost 3.7B lost hrs 2.3B gallons of gas

$11.5 billionWorth of produce is wasted in India because of outdated post-harvest infrastructure

of total port volume in North America is empty containers

22%

Spent on IT maintenance70¢ per $1

Lost annually in the US due to healthcare fraud

$100 billion





What is happening?Organizations will need to optimize their use of energy andwater and minimize GHG emissions.

CO2 emissions contribute to climate change, which impacts water systems.

Energy production results in CO2

emissions.

Water is needed to generate energy

and energy is needed to provide

water.

WATERWATER

CARBONCARBONENERGYENERGY





Increasing desire by consumers for a role in energy management and conservation

Growth in renewable generation and distributed resources

New entrants and disruptive technologies

Increased pressure on operational efficiency and workforce productivity

Aging asset performance with increased expectations on reliability

Climate change and environmental concerns

Market forces, impacting the landscape of utilities around the world, requiring the transformation of industry business models.

Market Forces





What can be done?

To deliver power more responsibly and more efficiently, energy and utilities organizations are working toward a smarter energy value chain.

ENSURING CLEANER ENERGY SUPPLYMeeting stringent greenhouse gas emissions targets while maintaining sufficient,

cost-effective power supply.

TRANSFORMATION OF THE GRIDTransforming the grid from a rigid analog system to a dynamic and automated energy delivery system.

EMPOWERMENT OF CONSUMERS

Empowering consumers by providing them with near

real-time, detailed information about their energy usage.

ENERGY ANDUTILITIES





Why should we act?

There is an imperative from government and consumers alike for energy and utilities organizations to transform themselves to ensure environmental responsibility, economic competitiveness and national security.

By leading innovation throughout the industry, their positive impact will be felt far beyond.

ENERGY AND UTILITIES

LOCAL AND GLOBAL

ECONOMIES

ENVIRONMENT AND SOCIETY

Smart Energy for a Smarter Planet - Intelligent Utility Network


Our world is becoming

INSTRUMENTED

Our world is becoming

INTERCONNECTED

Virtually all things, processes and waysof working are becoming

INTELLIGENT

7

How should we act?



+ + =An opportunity to think and act in new ways—

economically, socially and technically.

8



Measuring, Monitoring, Modeling and Managing

MeteringMeteringSensingSensing

Real Time Data Integration

Real Time Data Integration

Real Time + Historical Data

Real Time + Historical Data

Data Modeling + Analytics

Data Modeling + Analytics

Visualization + DecisionsVisualization + Decisions

Data modeling and analytics to create insights from data to feed decision support and actions

Feed

back

to u

ser a

nd d

ata

sour

ce;

Ince

ntive

s an

d ac

tions

to c

hang

e be

havio

r

Feedback to user and data source;Incentives and actions to change behavior

Comparison of historical data, with newly collected data

Data collection

Data Integration

Source: IBM Corporate Strategy

What does it mean to become Smarter?



Proof-point - Beacon Institute



The Intelligent Utility Network solution is a suite of offerings to

help utility companies develop a smarter grid

supporting Transformation Management,

Information Technology and Individual Domains

& Projects

What is the Intelligent Utility Network Solution ?



Energy and Utilities market forces are creating the need for an evolution in the energy value chain.

Coal/Gas

NuclearHydroelectric

UTILITY

Consumer

Power Flow

Periodic Information Flow

Continuous Information Flow

Traditional Grid

UTILITY

SMART GRID

Solar

Wind

Solar

Wind

Coal/GasHydroelectricSolar

NuclearWind

Energy Storage

Energy Storage

Energy Storage

Plug-in Vehicle

DYNAMIC INFRASTRUCTURE

A transformed grid that empowers consumers and provides the energy for a

sustainable future.



Advanced Meter Infrastructure• Meter

• Head-End Device

• Meter Data Management System (MDMS)

• Communications Layer

• Home Area Network

Transmission & Distribution Network

• Communications Layer

• Data Historians

• SCADA RTU

• Substation Assets (not managed by SCADA)

• Electrical Grid Field Assets (downstream of substation)

Power Generation• Fossil / Nuclear plant devices

monitoring (Non-Operational)

• Distributed Generation Communications Layer

• Distributed Generation Assets (Wind, Solar, Hyrdo, Diesel)

CentralGenerati

on

Transmission Network

Substation

Distribution Network

Residential Customer

Commercial Customer

Distributed Generation

Renewable Generation

MobileWorkforce

Data Communication Network

1

4

4

4

2

2

3

3

4

1

4

1

5

55

1

2

3

4

51

23 4

55

5

1

2

1

2

3

1

2

2 3

3

1

Integration of the physical and digital instrumentation points and across disparate systems

Utility Operation Center



Smart Grid building blocks are composed of many individual technologies from both Operations & Information Technology Fields

Intelligent

Connected

Integrated

Automated

Informed

Act

Advanced Electric Meters

In-Home displays

Personal Computers

Load Control Devices

Smart Appliances

Handheld Data Devices

Advanced Gas MetersAdvanced Water Meters

Electric Vehicles Outlets

Solar Panels

Reclosers

Condition Sensors

Voltage Controllers

Switches

Substation & Grid Devices

Smart MetersIn-home Devices

Ruggedized Laptops

Mobile Devices Distributed Resources

Cell Phones

Wind Turbines

Home Area Network

Neighborhood Network

AccessNetwork

Backhaul Network

ExtranetOffice Network

1. Smart, ConnectedDevices

2. Integrated Communication Networks

3. System Integration Platform

4. Applications & Analytics

CHP

Servers System and Network Management

Storage and Backup

Business Process Management

Computing Infrastructure

Application & DataIntegration

Systems Management

Security Management

Messaging & Web Services

Servers System and Network Management

Storage and Backup

Business Process Management

Computing Infrastructure

Application & DataIntegration

Systems Management

Security Management

Messaging & Web Services

EMS DMS

MDMS

Meter Data Collection Load Control

GISNetwork Analytics

OMSAsset Management

CIS

Call Management

WMS

5. Presentation Employee Portal/Dashboard

Field Employee Mobile Devices

Display Device Interface

Customer Mobile Devices

Customer Web

Paper Bills

Energy Storage

….We are seeing the Convergence of IT and OT



Smart Grid Implementation Progression Summary

August 10 201015

Solar

Wind

Solar

Wind

HydroelectricSolar

NuclearWind

Energy Storage

Energy Storage

Energy Storage

UTILITY

Plug-in Vehicle

Coal/Natural Gas

Converseand share

information, analyzing and acting upon it

to balance supply with

demand given real-

time conditions

Integrate consumers and providers with the

network & enable participation &

conversation

Orchestrate the network and its

participants to continuously assure an optimized, secure,

balanced and reliable network

Optimizenetwork

functions based on

rules & constraints

Measure& Control

Gain observability

over the network and

automate control functions

Orchestrate

Connect Participants

Analyze & Act

Optimize

Monitor & Automate (Network)

Maturity over timeBasic Functionality Advanced Functionality

One-way Flow

Participatory

Network



Smart energy and utilities:Transforming the grid.

SMART IS

Knowing exactly where a power outage occurs and instantly dispatching a crew to fix the problem.

SMART IS

Preventing outages before they occur by sensing potential equipment failures.

SMART IS

Extending asset life by sensing andmanaging the stress placed on agingequipment.

SMART IS

Reducing peak load by communicatingwith energy consumers and having themturn off non-essential machinery orappliances.



Smart energy and utilities: Transforming the grid.

DONG Energy: Installed remote monitoring and control devices to gain an unprecedented level of information about the current state of the grid, lessening outage times by a potential 25-50%.

US electric and gas company: Plans to leverage a mix of leading-edge communication technologies, smart meters and first-of-a-kind process innovations to create an intelligent utility network.

Energie Baden-Württemberg: Offers residential customers smart appliances and meters that enable them to adjust electricity consumption based on price—reducing waste and easing peak loads.

Pacific Northwest National Laboratory: Used intelligent measurement devices, smart appliances and a virtual marketplace to help manage stress in the electric grid, achieving a 50% reduction in short-term peak electricity distribution loads and a 15% reduction in overall peak loads.



Smart energy and utilities: Empowering the consumer.

SMART IS

Helping customers conserve energy by providing them with tools to proactively manage their energy usage.

SMART IS

Analyzing customer energy usage and providing customized energy products and services to meet their needs.

SMART IS

Helping customers establish a “smart home” that turns appliances on and off to reduce energy costs.

SMART IS

Ensuring that customers are billed accurately and on time.



Smart energy and utilities: Empowering the consumer.

Pacific Northwest National Laboratory: Provided customers with smart appliances such as water heaters that can sense impending grid failures and automatically respond by cutting back on power consumption.

A Canadian regulator: Launched a pilot time-of-use program that rewards consumers for using less power during times of shortage or peak demand, leading participants to shift 25% of their usage away from peak hours.

Ecotricity: Re-engineered its business processes and systems to enhance the speed and accuracy of billing while working toward the ultimate goal of a fully interactive, automated, multi-channel customer experience.

enemalta: A major electric and water utilities provider in the country of Malta selects IBM for a 70 million euro, five-year agreement to design anddeliver a nationwide Smart Grid implementation.



Smart energy and utilities: Ensuring cleaner energy supply..

SMART IS

Smoothing power demand in order to take advantage of off-peak supply such as wind.

SMART IS

Maintaining a sufficient, cost-effective power supply while managing stringent greenhouse gas emissions targets.



Smart energy and utilities: Reducing greenhouse gas emissions.

A German Power Company: Deployed a proof-of-concept Wind Generation Monitoring Solution that will connect numerous power plants to a central monitoring application, enabling better collection and use of raw data.

A European Generation Company: Built a tool for optimizing unit commitment, the process of finding and dispatching power sources at the lowest possible cost. It allows planners to easily compare power generation scenarios, programs and production costs and then select the optimal demand coverage at any given time



Which comes first: the smart grid or the electric car?

To provide all this electricity for all these e-vehicles, power grids must become smart grids—capable of sending and receiving data along with energy.

Utility companies, are planning: - peak demand reduction, - carbon management -cost reasons

And completing plans and participating in standards bodies to prepare for the: - energy increase, - peak variability and - storage mobility



Energy Storage

Electricity can’t be commercially stored - Energy can:

Thermal Storage

Pumped Energy Storage

Others: Mechanical Biological, Chemical, …

Electric Vehicle:

May practically become the first ever commercially mean to store electricity



What is Watson?



We’ve only just begun to uncover what is possible on a smarter planet.

For more information:

Shlomo Shamy

[email protected]

IBM Israel

94 Em Hamoshavot st.

Petha Yikva.

Let’s work together to drive real progress in your business or organization and the world.

Thank you for your time

© 2010 IBM Corporation Smarter Power for a Smarter Planet Overview Shlomo Shamy E&U Solutions manager Global Technology Unit (GTU) IBM Israel Feb 2011.

Documents