May 29th 2008IBM Confidential Winds of Change Henry YU Business Development Executive Energy and Utilities Industry, China.

May 29th 2008 IBM Confidential

Winds of ChangeHenry YUBusiness Development ExecutiveEnergy and Utilities Industry, China

May 2008 IBM Confidential

Reliable access and distribution of low cost energy has created the basis of successful industrialized economies…

The four basic fuels…… Coal, Natural Gas, Oil and Uranium

Reliable low cost …ubiquitous supply Centralized production and simple distribution Economic growth leads…. sustainable development

lags Infrastructure a basic social service

A well defined supply chain and industry ecosystem has developed around these fuels

May 2008 IBM Confidential

Utility Infrastructure is critical to the creation and distribution of energy and associated services in established, developing and transitioning economies

Water & Waste Electric Power Gas

Quality of Life Social stability Foundation for all industry Economic growth and competitive posture Energy independence/security Eco/green Economy Enablement Global Image Sustainable… improved Human Development Index

May 2008 IBM Confidential

Power Market Construction and its regulation in China

China power market management model

Structure of China Power Market

Pricing Structure

In-depth pilot projects

Introduction of customer participation

Reinforcement of regulation

May 2008 IBM Confidential

Promote Sustainable Development of Power Industry and Build up an Environmental friendly Power Grid

Develop UHV (Ultra-High Voltage) power highway of 1000kv AC and 800kv DC transmission

Promote large hydro, thermal, nuclear and renewable energy base, in replace of small-sized one

Standardization and promotion of environmental friendly equipment &technology

Designed a five-year planning of technical renovation

Enhanced grid energy-saving power dispatching

Demand Side Management (DSM)

Promote home-made electric cars in use

May 2008 IBM Confidential

Applying innovative information technology and services that really matter to businesses, governments, people and the planet

IBM committment Energy and Environment

Intelligent Transportation SystemsMeasure & improve transportation usage

Reduce traffic congestion Reduce CO2 emissions Increase mass transit usage Reduce energy usage Improve environment

Intelligent Utility NetworksMeasure & improve energy mgmt

Improve efficiency usage, Reduce outages Improved grid management Mange distributed energy

Energy Efficient Technologies & ServicesCreate &manage efficient IT

Active energy management IT facilities infrastructure

efficiency IT operations efficiency Monitoring and verification of

efficiency goals Demand-side efficiency

Carbon ManagementMeasure & reduce carbon emissions

Carbon Mgmt Strategy Carbon Mgmt Intelligence Supply chain management Property, buildings, workplace Advanced Water Management

Measure and manage water systems usage and quality with real-time knowledge

Weather event mgmt; flood management Real-time monitoring and analytics for water usage

and water quality

May 2008 IBM Confidential

Smart Grid Case Study

Program management, systems integration, MDM implementation, BPL and AMI deployment management for this Intelligent Utility Network initiative

Duration: December 2005 - ongoing

Overall program manager, systems integration, MDM selection, and business case development for 5.5 million electric meters

February 2006 - ongoing

Overall program management and systems integration for a 4.9 million electric and 4.1 million gas AMI deployment

Duration: November 2005 - ongoing

Selected to build and operate the meter data management system for 4.5 million hourly interval meters across 94 electricity distributors in Ontario

Duration: December 2006 - ongoing