The Move to Operational Smart Metering March 22 – 25, 2009 Miami, FL, USA 1 March 22 – 25, 2009 Miami, FL, USA Meir Shargal, Principal, Capgemini, Texas, US
The Move toOperational Smart Metering
March 22 25, 2009 Miami, FL, USA 1March 22 25, 2009 Miami, FL, USA
Meir Shargal, Principal,Capgemini, Texas, US
Workshop Narrative Five years ago it was reasonable to think of a meter as purely part of the utilitys cash
register - the front end sensor that provided the information required to create a bill
Today utilities are looking to use the meter as a key sensor and control in the next generation smart grid.
Monitor the health of the network,
Manage power flow to homes and businesses
Help customers use power more wisely
Operational Smart Metering (OSM) is the next step in metering Receive alarms and alerts from the meters without having to poll them in near real time.
Allows the meter to store far more information that might be required on a daily basis, so the utilitys engineering team can pull data to analyze events after the fact with far more detail
March 22 25, 2009 Miami, FL, USA 2
team can pull data to analyze events after the fact with far more detail
OSM forms the core for the next generation smart grid and their new utility operating model
To support the future requirements (outage, collections, disconnects, direct load control, power quality monitoring, harmonics management, smart home gateway, etc.) - not only the technology have to change, the organization in the utility have to change to support these increased requirements.
More than 80 processes in the typical utility have been identified as being impacted by OSM
OSM will play a key role in providing intelligence and switching on the grid.
Just a small percentage of smart metering benefits can be attained with out addressing operational smart metering.
What We Are Going to Cover?
Capgemini
The Energy Situation
Scope of the Study
Ecosystem / Core Concept
Billing vs. Operational Metering
Meter History
Major Solution Components
Sample Solution Architecture
Impacted Processes
Capital Investment
Business Case Framework
Business Case Methodology
Cost (Reference and Investment Case)
Benefit Analysis
First Session Second Session
March 22 25, 2009 Miami, FL, USA 3
Major Solution Components
Gateways Scenarios
The French and the Nederland Approach
Future Grid Principals / Characteristics
Capability Analysis
What Does it Means (Meter, Systems)
Conceptual Architecture
Benefit Analysis
Maturity Framework
Transformation Success
How to Start a Program
Roadmap / Transformation Map
Capgemini Approach
Capgemini is One of the Worlds Largest Management and IT Consulting Firms
Revenue and personnel
7.7 billion
Over 75,000 Professionals
More than 300 offices in 30 countries
Geographic revenue distribution
77% Europe
22% North America
1% Asia
12%
11%
28%
27%
15%
Financial Services
Energy, Utilities and Chemicals
Telecom, Media, Transportation,
Other
Public Sector, Healthcare
Manufacturing, Retail & Dist
Industry revenue distribution
Other 7%
March 22 25, 2009 Miami, FL, USA 4
Annual results 2008
Business Mix
ConsultingServices13%
OutsourcingServices38%
TechnologyServices33%
Local Professional Services16%
Outsourcing
Consulting
Technology
ProfessionalServices
Transformation Consulting
Customer Relationship Management
Supply Chain Mgmt
Finance Transformation
Architecture & Infrastructure Services
Package Implementation
Application Development & Integration
Applications Management
Infrastructure Management
Business Process Outsourcing
Local IT Services (Staff Augmentation)
Hardware and Network Management
Our Services
A Few Facts
U.S. electricity demand growing 1.5 3.0 % annually
Invest $900B in Generation, Transmission & Distribution by 2020
U.S. needs 50,000 Mw of new generation by 2014 and 258,000 Mw (40% increase) by 2030
Less than half of this is currently planned
U.S. electricity prices will rise "fairly dramatically" over the next 3 to 5 years as rate caps put in place during an earlier wave of utility mergers expire
30 50% in the Northeast
March 22 25, 2009 Miami, FL, USA 5
30 50% in the Northeast
U.S. produce ~20% of the worlds greenhouse gases and the electric utilities produce 40 percent of that (8% of the world's greenhouse gases)
Foreign governments are demanding the U.S. reduce its production of such gases
Most practical way for utilities to add generation is to build coal- fired plants
It is Not realistic to think that we can build enough coal-fired plants to keep up with surging U.S. electrical demand given the rising opposition to global warming.
It is a very daunting task to reduce C02 while increasing generation capacity
Fact: World Population is Growing Exponentially Causing the World Energy Consumption to Increase
90% of fossil
Rnv Energy
Nuclear
Natural gas
Oil
Coal
Millions of ton
(1 Million tones oil = 11.6
MWh
March 22 25, 2009 Miami, FL, USA 6
90% of fossil energy
Millions of ton
(1 Million tones oil = 11.6
According to the World Energy Council To provide a reasonable quality of life for all people we will need 33 TW of power by 2050. That is:- 500 Million barrels of oil a day- Globally 18,500 additional 1 GW generation plants by 2050 = 1.3 plants a day
Source : IEA, Mai 2007
Fact: CO2 is a Major Concern In the Electric Power Industry
2,000
2,500
3,000
3,500 Residential Commercial Industrial
Transportation Electric Power
History Projections
Million Metric Tons
March 22 25, 2009 Miami, FL, USA 7
0
500
1,000
1,500
1990 2000 2010 2020 2030
Million Metric Tons
Recent and Projected Growth in U.S. GHG Emissions is Concentrated In the Transportation and Electric Power
Fact: Worlds Proven Oil Reserves is Limited, But World Consumption Continues to Grow
1200 billion barrels + 600 billion barrels (to extract from tar sands in Canada and Venezuela)
March 22 25, 2009 Miami, FL, USA 8
With a world oil consumption growth of 1% per year the oil reserves will be exhausted in less than 40 Years
Source : BP Statistical Review of World Energy 2007
Fact: Energy Consuming Devices in the Home have been grown over the last decades
Device 1980 Energy Star
Device 1980 Energy Star Device 1980 Energy Star
Refrigerators Yes Radio No Computer Monitor No No
Incandescent Yes Jacuzzi No Large Screen TV No No
Fluorescent Yes Television sets No Digital Camera No No
Pool heaters Yes Sewing Machine No Dehumidifier No No
Dishwashers Yes Water Bed No Microwave No No
Room A/C Yes Stereo No Clock Radio No No
Freezers Yes Vacuum No Hot Glue No No
Water (tank) heaters
Yes Water (tank less) Heater
No Garage Door Opener
No No
March 22 25, 2009 Miami, FL, USA 9
heaters Heater Opener
Cook tops/ovens Yes Water Pump No Trash Compactor No No
Clothes washers Yes Hair Dryer No Cable box No No
Clothes dryers Yes Ceiling Fan No Broadband No No
Central A/C No Electric Furnace No Portable Phones No No
DIY Tools No VCR No No Fax Machines No No
Toaster Oven No Portable Heater No No Ice Cream Maker No No
Coffer Maker No DVD No No Game Console No No
Electric Kettle No Computer No No Printer No No
Toaster No Laptop No No Home Security No No
Electric Blanket No MP3/Game Player No No Cellular Phone No No
Clothes Iron No Juicer No No Answering Machine No No
Thats Leads to an Energy Supply and Demand Dilemma
Many parts of the world are seeing their peak margin (reserve) disappear with a robust economy and residential demand for more power
Residential customers are buying ever more TVs and other gadgets that required energy, homes are getting larger, we want a more controlled environment.
Many parts of the world are trying to reduce carbon and other emissions into the environment
The last 10% of generation used in a peak situation can generate 30% or more of the emissions
March 22 25, 2009 Miami, FL, USA 10
The ability to build more infrastructure is limited by law, environmental concerns and public opinion
New power plants can take a decade or more to complete from the opening discussion given permit and hearing requirements
Many old plants, built after World War II are now nearing the end of their useful life span, even with the excellent maintenance that they have had
Gas fired plants, the rage in the 1990s are too expensive to run, except at peak times
so, What is the Answer?
Scope of The Study
30 Utilities in North America, Europe, Australia, and Asia
More than 70 Million meters deployed or planed
Mix of Billing and Operational Metering
Network technology included Mesh, RF, Cellular, PLC, and DLC
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Network technology included Mesh, RF, Cellular, PLC, and DLC
Smart Metering: The Ecosystem
Advanced Metering Infrastructure (AMI)
Meter Data Management
Meters
Advanced Meters
Wide Area Network (WAN)
Advanced Metering Control Computer (AMCC)
Local Areas Network (LAN)
Collector
AMRC
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Monitors, In-Home Displays
Third Parties
Retailers, Energy Service Companies
Customer Information& Billing Systems
Meter DataRepository
Meter Data Management System (MDMS)
Wide Area Network (WAN)
Smart Grid: The Core Concept
OBJECTIVES & CONSTRAINTS
DATA, TRIG
GERS, FLAGS ETC.
1 Day
1 Month
1 Hour
Interrelated Own
Cycles / Loops
Number
100s
Create One View of the World
Smart Grid Dashboard
1
OFFICECentra
lVIRTUAL GENERATIO
N
March 22 25, 2009 Miami, FL, USA 13
OBJECTIVES & CONSTRAINTS
DATA, TRIG
GERS, FLAGS ETC.
1 Min
1 Sec
1 mS
Number
1,000,000s
1,000s
ASSETS
Distrib
uted
VIRTUAL GENERATIO
N
Billing vs. Operational Metering
Feature Billing Meter Operations Meter
Usage / Demand R R
Data Storage R O
Fixed Network O R
Power Quality O R
Near Real-Time O R
Outage / Restoration O R
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Outage / Restoration O R
Remote Disconnect O O
Exception Report O R
Two Way O R
Downstream Device O R
Typical Price ~ 60 $ ~ 100+ $
R = Required O = Optional
The History of the Major Smart Meter System Components
The Meter
Measurement Instrument
1900 to 1990The Meter
Measurement Instrument
Communications Card
Measurement Instrument
Communications Card
Home Area Network
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1900 to 19901990 to 2005
The Meter
Disconnect - Limiter
2006 - ?
Information Collected from the Meter
Month(s) Collections
Rate Cases
Tariff Design
Week(s) Billing
1900 to 1990
Month(s) Collections
Rate Cases
Tariff Design
Week(s) Billing
1990 to 2005
Rate Cases
Tariff Design
Long-Term Forecasting
Billing
Meter Reading
GIS - Connectivity/Locations
CollectionsODS /
Month(s)
Week(s)
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1900 to 1990 1990 to 2005 Wholesale SettlementTOU Billing
Load Scheduling
Curtailment Planning
Automatic Shutoff
Theft
Real-Time Pricing
Closing Verification
ODS /
MDMS
Day(s)
Hours
10s of
2006 to ?
Data Available in the Meter
Rate Cases
Tariff Design
Long-Term Forecasting
Billing
Meter Reading
GIS - Connectivity/Locations
Month(s)
Week(s)
Theory
Maintenance Planning
Design Standards
Rate Cases
Tariff Design
Long-Term Forecasting
IEEE Indices
Billing
Meter Reading
Simulation
GIS - Connectivity/Locations
Collections
Asset Loading
Wholesale Settlement
TOU Billing
Vegetation Management
Load Scheduling
ODS /
MDMS
Month(s)
Week(s)
Day(s)
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Collections
Wholesale Settlement
TOU Billing
Load Scheduling
Curtailment Planning
Automatic Shutoff
Theft
Real-Time Pricing
Closing Verification
ODS /
MDMS
Day(s)
Hours
10s of
Practice
Load Scheduling
Curtailment Planning
Automatic Shutoff
Dispatch
Theft
Real-Time Pricing
Closing Verification
RTO Forecasting
Service Verification
Power Quality
Asset Monitoring
Site/Line Status
Remote Disconnect
On Demand / Call Center
System Security
Outage
Restoration
System Protection
Event
Manager
Seconds
Hours
10s of
Minutes
Minutes
Most utilities use less than 50% of the data that is available
Major Smart Meter System Components
Measurement Instrument
Communications Card
Home Area Network
Disconnect - Limiter
Collector
WAN Connector
Event Manager
MDMS
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The Home
The Meter
Home Gateway
In Home Display/Portal
Controllers
The Concentrator
Collector
Short Term Storage
WAN Connector
Central Office
MDMS
Operator Consoles
Portal
Market Simulator
Scenario A: The Meter as Gateway
Private Fixed NetworksWAN/LAN
Meter
2-way
T24 PCT
RDS/FM or pager broadcast(disabled when utility network operational)
1-way
Interval energy Time Billing start time Peak power Messages Acknowledgements Price signals Reliability signals
Third-Party Provider
Utility Owned
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Consumer Owned
Appliance
Sub-meter
Display Devices
1.e.g., 802.11b, proven mesh LAN protocol, etc.
2-wayRF-TX1
Utility Owned
Scenario B: Evolution to Multiple Gateway Model
Private Fixed NetworksWAN/LAN
Anyintervalmeteror
PSTN/DSL/Cable/SatelliteWAN/LAN
2-way2-way
Any gateway (protocol xfr)Special boxInternet modem
HAN ProtocolsZigbeeZ-waveInsteonWi-FiEIA709
2-wayT24 PCT
RDS/FM or pager broadcast
1-way
2-way
Interval energy Time Billing start time Peak power Messages Acknowledgements Price signals Reliability signals
Third-Party Provider
Third-Party Provider
Third-Party Provider
Third-Party Provider
2-way
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Utility Owned
Consumer Owned
orpole-topcollector
Internet modemRouterMedia PCSecurity panel ..
EIA709HomePlugBluetooth
2-way
HAN access using expansion port
Sub-meter
Appliances
Display Devices
1.e.g., 802.11b, proven mesh LAN protocol, etc.
2.To be determined
3.Up to 45 active protocols worldwide
Broadband TV, music
2-way
2-way
RF-TX1
PLC-TX
and/or
2-way
2-way
Scenario C: 3rd Party Communication Channel/Gateways Only
Private Fixed Networks2
WAN/LAN
PSTN/DSL/Cable/SatelliteWAN/LAN
2-way
2-way
Any gateway (protocol xfr)Special box
HAN ProtocolsZigbeeZ-waveInsteonWi-FiEIA709
2-wayT24 PCT
RDS/FM or pager broadcast
1-way
2-way
Interval energy Time Billing start time Peak power Messages Acknowledgements Price signals Reliability signals
Third-Party Provider
Third-Party Provider
Third-Party Provider
Third-Party Provider
Utility.com
March 22 25, 2009 Miami, FL, USA 21
Utility Owned
Consumer Owned
Anyintervalmeter
Special boxInternet modemRouterMedia PCSecurity panel ..
EIA709HomePlugBluetooth
2-way
HAN access using expansion port
Other
Appliances
Display Devices
1.Utility information to/from utility network
2.Up to 45 active protocols worldwide
Broadband TV, music
2-way
2-way
French Approach
The Meter
Measurement Instrument
Home Area Network
Disconnect - Limiter
Communications Card EDF has decided to split the meter
Create a distribution meter and a retail access box
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Energy Box
The Home
Communications Card
Home Gateway
In Home Display/Portal
Controllers
Netherlands Approach
Utilities and retailers are determined to provide a single standard for communications to the meters, with access for both retailers and distribution companies
Measurement Instrument
P3-Communications Card
P1-Home Area Network
Disconnect - Limiter
P2-Other Meters
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The Home
The Meter
Home Gateway
In Home Display/Portal
Controllers
Duke Approach
March 22 25, 2009 Miami, FL, USA 24
Future Grid Principals / Characteristics (1)
Principal / Characteristics Requirements
Self Restoring Efficient asset management System wide remote control
Knowledge of how to adapt to failures
Resists Attack Network management and operation control Automatic recovery from disruptions
No single point of failure
Supports Distributed Generation
Micro-generation opportunities
Local energy management
Efficient management of cross border and transit network congestion
Improving the long-distance transport and integration of renewable energy sources
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Improving the long-distance transport and integration of renewable energy sources
Supports Renewable Energy Sources
Losses and emissions reduction
Integration within power networks
Renewal of the existing power-plants - efficiency improvements
Optimizing visual impact and land-use
Supports Demand Management
Increase the interest in electricity market opportunities by providing value added services
Increase social responsibility and sustainability
Lower electricity prices
Develop strategies for local demand
Modulation and load control
Continuing development and harmonization of policies and regulatory frameworks
Future Grid Principals / Characteristics (2)
Principal / Characteristics Requirements
Provides For Power Quality Increasing the degree of automation
Efficient investment in ageing infrastructure
Reduce electricity losses
Provides Security of Supply Flexible storage
Increase network and generation capacity
Strengthening European security of supply through enhanced transfer capabilities
Supports Lower Operation Costs
Increasing the degree of automation
Maintenance being done on an as-recognized basis
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Costs Maintenance being done on an as-recognized basis
Minimizes Technical Losses Deploy new equipment and capabilities without having to completely redeploy or replace existing technologies or to do a wholesale system hardware upgrade
Adapt to changing conditions and needs over time, so that as the needs of customers evolve, so does the grid
Minimizes Manual Maintenance and Intervention
Minimize the duration and severity of the failure
Application that able monitor, manage and act on different situation
Capabilities Analysis
Old Billing Meter
SmartBilling Meter
Smart Operational Meter
Disconnect Switch
Demand Response
HomeArea Network
Meter reading X X X
Net metering X X X
Non-technical losses X X
Vegetation management X X
IEEE Outage indices X X
Tariff Design X X
Rate Case Support X X
March 22 25, 2009 Miami, FL, USA 27
Rate Case Support X X
Critical & Complex Tariff Design X X
Cross subsidation X X
Investment decision support X X
Customer segmentation X X
Prepayment X X
Time of use pricing X X
Critical peak pricing X X
Real time pricing X
Bill - paycheck matching X X
Capabilities Analysis
Old Billing Meter
SmartBilling Meter
Smart Operational Meter
Disconnect Switch
Demand Response
HomeArea Network
Customer Advisory X X
Load Forecasting X X
Simulation X X
Asset Load Analysis X X
Load Scheduling X X
Curtailment Planning X X
Planned outage scheduling X X
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Planned outage scheduling X X
Design standards X X
Maintenance standards X X
Rebuild cycle X X
Replacement planning X X
Net and Gross Generation monitoring X X
Connectivity Validation X
Closing Verification X
Geo-location X
Capabilities Analysis
Old Billing Meter
SmartBilling Meter
Smart Operational Meter
Disconnect Switch
Demand Response
HomeArea Network
Power Quality monitoring X
Asset load monitoring X
Phase balancing X
Load balancing X
Work Dispatch improvement X
Order completion automation X
Site/line status X
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Site/line status X
Call Center unloading X
Restoration Verification X
Distribution SCADA X
System security X
Outage notification X
Islanding verfication for DG X
Distributed Capacitor Bank mgmt X
Field worker data access X
Remote disconnect X X
Capabilities Analysis
Old Billing Meter
SmartBilling Meter
Smart Operational Meter
Disconnect Switch
Demand Response
HomeArea Network
Customer price display X X
Remote issue validation X
Customer dispute management X
Outbound customer issue notification X
Feeder ratings X
Leak detection X
Battery management X
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Battery management X
Automation of emergency response X
System protection X X X
Flood prevention X
Gas leak isolation X
Pressure management X X X
Selective load management X X
Demand Side Management X X
Direct load control X X
Real-time customer information X
Capabilities Analysis
Old Billing Meter
SmartBilling Meter
Smart Operational Meter
Disconnect Switch
Demand Response
HomeArea Network
Storage fill/draw management X
Plug in hybrid mgmt X
Small fossil source mgmt X
Appliance monitoring X
Home security monitoring X
Home control gateway X
Medical equipment monitoring X
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Medical equipment monitoring X
Capabilities, Communication Infrastructure and Equipment/Technology have to match for the solution to work, they all dependent on each other
Capabilities are determined prior to deployment
Communications Infrastructure drives latency and bandwidth
Equipment/Technology drives features
What Does this Mean to the Meter?
Firewalls in the meters and the collectors security becomes important
Ability to install new firmware remotely with very high take rate
Improved sensors in the meters voltage, VARS, outage counters, quadrant in the residential meter
Measured not inferred
Probably 2 levels of residential instruments a high end SCADA meter and a lower quality main population meter
Distributed Generation interface built into the meter including islanding
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Distributed Generation interface built into the meter including islanding
Integrated disconnect
Integrated home area networks
Integrated high quality antennas
Autonomous alerts and alarming
Strong self check capability
and to the Systems?
Data passed through the system in seconds not held in the collector or meter
Assured round trip times for requests
Smart use of bandwidth
Path and communications monitoring and management alarms for lost path
Ability to associate each meter at all times to a path in the system and to allow a single outbound interface to ALL meters
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to allow a single outbound interface to ALL meters
Ability to manage SCADA meters (0.05 to 1% of the population)
Data push from the head ends to operational systems (e.g. outage, etc) automatically
Conceptual Architecture
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
Grid Hardware: Load Management
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Second Generation Remote Load Control Devices
Appliance Reporting
Device to Manage Load Shapes -Remote Control
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-SpeakRemote Control
Intelligent Building
Load Management
Grid Hardware: Control
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Regulators - Power Flow
Capacitor Bank Remote Operators
Management of Supply Remote
Broadband over Power Line
SCADA Network Penetration
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
SCADA Network Penetration
Capacitors Switched
Control
Grid Hardware: Alarm Notification
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Fault Anticipators
Device - Self Reporting
Fault Detecting and Reporting
Sensors Wireline, Wireless
Auto Sensing Voltage Sag Correctors
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
Correctors
Auto Sensing Grid Segmentation
Alarm Notification
Grid Hardware: Distributed Resources
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Distributed Resource Interconnection
Low cost DG Interconnect Kit
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
Low cost DG Interconnect Kit
Distributed Resources
Grid Hardware: Revenue Metering
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Smart Metering - Fixed Read System, Fixed Network, Networked, Broadband
Metering - Two Way, Pre Paid
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
Revenue Metering
Grid Hardware: Protection
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Capacitor Protection
Circuit Breakers for Feeders w/Automatic Sensing & Re-closing
Re-closer, Single Phase
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
Re-closer, Single Phase
Protection
Communication Backbone: Networks
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
WAN: Wide Area Network
MAN: Metropolitan Area Network
LAN: Local Area Network
VAN: Vehicle Area Network
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
Networks
Communication Backbone: Transport - Wire
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office POTS (Plain Old Telephone System)
PSTN (Public Switch Telephone Network)
DSL (Digital Subscriber Line)
Fiber Optic
PLC (Power Line Carrier)
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
Transport - Wire
Communication Backbone: Transport - Wireless
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Mobile Radio (RF) 800/900 Mhz Bands
Cellular Technologies (GSM/GPRS)
Wireless LAN (WiFi)
Wireless WAN (WiMAX)
ZigBee
Free Space Optical (FSO)
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
Transport - Wireless
Communication Backbone Options (1)
Standard / Technology Data Transport Method Data Communication Network
Plain Old Telephone / Public Switched Telephone Network (PSTN) Wired LAN, MAN, WAN
Digital Subscriber Line (DSL) Wired LAN, MAN, WAN
Fiber Optics Wired LAN, MAN, WAN
Power line Carrier (PLC) Wired LFN
Broadband over Power line (BPL) Wired LFN, MAN, WAN
Radio Frequency (RF) 800 Mhz Trunk Radio Wireless MAN, WAN
Radio Frequency (RF) 900 Mhz Conventional Radio Wireless MAN, WAN
Cellular GRPS/GSM Wireless MAN, WAN
Wireless LAN (WiFi) 1 Watt RMS WiFi Wireless HAN
Wireless WAN (WiMAX) 700 Mhz WiMax Wireless LFN, LAN, MAN, WAN, VAN
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Wireless WAN (WiMAX) 700 Mhz WiMax Wireless LFN, LAN, MAN, WAN, VAN
Wireless WAN (WiMAX) 2/5 Ghz WiMax Wireless LFN, LAN, MAN, WAN, VAN
Low Watt ZigBee Wireless HAN
Free Space Optical (FSO) Laser Wireless MAN, WAN
Multi-channel Multi-point Distribution System (MMDS) 2.6 Ghz Wireless MAN, WAN
Satellites Wireless WAN
IPv6 over Low power Wireless Personal Area Networks (6LoWPAN) Wireless HAN
Zwave Wireless HAN
X-10 Wireless HAN
Home Plug Wired HAN
Home PNA (Home Phoneline Networking Alliance) Wired HAN
Universal Powerline Bus (UPB) Wired HAN
Communication Backbone Options (2)
WiMax
Sp
eed
(M
issio
n C
riti
cal
Perf
orm
an
ce o
f N
etw
ork
)
1 Mbps
10 Mbps
100 Mbps
BPL
Ultra Wideband for short range Personal Area
Networks PANs
AMI Backhaul Data Rate
Requirements
Campus-Wide HAN Solution
Data
March 22 25, 2009 Miami, FL, USA 45
Sp
eed
(M
issio
n C
riti
cal
Perf
orm
an
ce o
f N
etw
ork
)
Range (Distance Between Nodes)
10 M 100 M 1 Km 10 Km
10,000 Kbps
Aclara/HuntTraditional PLC
iPLC
Fixed RF
Ce
llu
lar
AMI Endpoint Data Rate
Requirements
Data Requirements
Adapted from Donnell Research
100 Km
Impact of Weather and Natural Environment
Heavy Rain
Heavy Wind
Lightning Solar Ice Storms
Snow Storms
Heavy Smoke (Fog)
Earth Quakes
Trees Power Outages
Civil Emer
Total
Power line Carrier 1 3 3 2 4 1 1 2 1 1 1 20
Broadband over Power line 1 3 3 2 4 1 1 2 1 4 1 23
Low Watt ZigBee 1 1 2 2 2 4 1 1 2 4 1 21
1 Watt RMS WiFi 1 1 2 2 3 2 1 1 3 2 1 19
GRPS/GSM 1 1 2 2 4 2 1 4 3 4 4 28
700 Mhz WiMax 1 1 2 2 3 2 1 1 1 3 3 20
2/5 Ghz WiMax 1 1 2 2 3 2 1 1 3 3 3 22
800 Mhz Trunk Radio 1 1 2 2 1 1 1 1 2 2 1 15
900 Mhz Conventional Radio 1 1 2 2 1 1 1 1 2 2 1 15
March 22 25, 2009 Miami, FL, USA 46
900 Mhz Conventional Radio 1 1 2 2 1 1 1 1 2 2 1 15
2.6 Ghz MMDS Wireless 1 1 2 2 2 1 1 4 4 4 3 25
Satellites 3 2 1 3 3 3 1 4 2 2 3 27
Free Space Optical (Laser) 3 3 3 2 3 3 4 4 4 2 1 32
Plain Old Telephone 2 1 2 1 2 2 1 3 1 2 4 21
Digital Subscriber Line 1 1 1 1 2 1 1 3 1 3 2 17
Fiber Optics 1 1 2 1 1 1 1 3 3 1 2 17
4 = High Impact (Failure)
3 = Med Impact (Partial)
2 = Low Impact
1 = No Impact
Characteristics
Latency Reliability Cost Maturity Maintenance Resiliency Total Setting
Power line Carrier 4 4 3 1 1 4 17 E
Broadband over Power line 3 4 4 2 4 3 20 B
Low Watt ZigBee 3 2 1 1 1 2 10 B, C
1 Watt RMS WiFi 2 3 1 1 1 2 10 A
GRPS/GSM 4 2 4 1 3 2 16 E
700 Mhz WiMax 2 2 2 3 2 3 14 A, B, C
2/5 Ghz WiMax 2 6 1 4 3 2 18 B, C, D
800 Mhz Trunk Radio 3 3 3 3 4 3 19 A, B, C
900 Mhz Conventional Radio 3 3 3 3 4 3 19 A, B, C
2.6 Ghz MMDS Wireless 2 2 1 3 2 3 13 C, D
March 22 25, 2009 Miami, FL, USA 47
2.6 Ghz MMDS Wireless 2 2 1 3 2 3 13 C, D
Satellites 4 3 3 3 4 4 21 D
Free Space Optical (Laser) 1 3 3 3 3 3 16 A, B, C
Plain Old Telephone 2 2 4 1 2 2 13 E
Digital Subscriber Line 2 2 2 3 3 2 14 A, B, C
Fiber Optics 1 1 4 1 2 1 10 E
6 = To New
5 = Not Applicable
4 = Poor
3 = Good
2 = Better
1 = Best
A = Mega Urban
B = Urban
C = Suburban
B = Rural
E = All
Deployment
Mega Urban
Urban Suburban Rural WAN Total
Mega Urban
Urban Suburban Rural MAN Total
Power line Carrier 4 4 4 3 15 4 4 4 4 16
Broadband over Power line 3 4 4 5 16 5 5 5 5 20
Low Watt ZigBee 5 5 5 5 20 2 3 3 4 12
1 Watt RMS WiFi 5 5 5 5 20 3 3 4 5 15
GRPS/GSM 3 3 3 4 13 5 5 5 5 20
700 Mhz WiMax 2 2 2 3 9 3 3 2 2 10
2/5 Ghz WiMax 4 3 2 2 11 4 2 2 2 10
800 Mhz Trunk Radio 4 3 2 2 11 4 3 2 2 11
900 Mhz Conventional Radio 3 2 2 3 10 5 5 5 5 20
March 22 25, 2009 Miami, FL, USA 48
2.6 Ghz MMDS Wireless 5 5 5 3 18 5 5 2 1 13
Satellites 4 3 3 2 12 5 5 5 5 20
Free Space Optical (Laser) 5 5 5 5 20 3 5 5 5 18
Plain Old Telephone 3 3 3 3 12 3 3 3 3 12
Digital Subscriber Line 3 3 3 5 14 2 2 2 5 11
Fiber Optics 1 1 1 1 4 1 1 1 1 4
6 = To New
5 = Not Applicable
4 = Poor
3 = Good
2 = Better
1 = Best
Data Standards
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Data Standards
March 22 25, 2009 Miami, FL, USA 49
Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
IEC 61968: Common Information Model (CIM)
Multi-Speak 3.0: Interface and Messaging standards
IEC 62056: Device Communication Standards
IEC 61850: Substation Communications
IEC 61334: Power Line Communications Standards
DLMS/COSEM: as the new smart metering standard?
Data Management: Storage
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Storage
Exponential growth of data volumes
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak
Exponential growth of data volumes
Increased demand to structure, architect and store massive amounts of data for fast and real time access to users
High emphasis on data quality, accuracy, and availability
Need to explore data appliance technologies
Data Management: Routing / Integration
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Routing/Integration
Enterprise Approach To Integration
March 22 25, 2009 Miami, FL, USA 51
Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak Enterprise Approach To Integration
Leverage Enterprise Information Management (EIM) framework, Enterprise Service Bus (ESB), and relevant semantic model such as CIM
Full integration at both real-time and historical timeframes across the Enterprise
Data Management: Events
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Appropriate triggers, alarms and notifications
Events
March 22 25, 2009 Miami, FL, USA 52
Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speak Appropriate triggers, alarms and notifications
corresponding to the events should be incorporated into the data management aspects
User interface applications may be necessary to monitor and modify the business parameters that affect the events
Provide ability to view historical events, watch current trends and model the future
Data ManagementD
ata
Vo
lum
e
High
Da
ta V
olu
me
High
Customer AssetsCustomer
Today Smart Grid
Operations
March 22 25, 2009 Miami, FL, USA 53
Da
ta V
olu
me
TimeReal Time Days
LowD
ata
Vo
lum
e
TimeReal Time Days
Low
Assets
Operations
Data Lifecycle
Integral
PhysicalGrid Asset
Decisions
& Plans
Data
Data
management
Data
transmission
Measurement
& monitoring
Decision
management
Activity
management
Control
systems
1 Day
1 Month
1 Hour
OBJECTIVES & CONSTRAINTS
DATA, TRIG
GERS, FLAGS ETC.
Interrelated Own
Cycles / Loops
March 22 25, 2009 Miami, FL, USA 54
Integral
management
ModelsDecisions
& Plans
Data
Analysis
tools
Interpretation
& modeling
Data
processing
management
Model
management
Model
visualization
Uncertainty
analysis
Decision
support
1 Min
1 Sec
1 mS
OBJECTIVES & CONSTRAINTS
DATA, TRIG
GERS, FLAGS ETC.
Adapted from presentation POSC SIG -L. Dodge, S. Daum, 22 May 2003 London
Knowledge Continuum: Operational Analytics
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Real-time/near real-time operational type of applications that monitor / manage and act
Operational Analytics
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Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speakthat monitor / manage and act
base on events that comes from the smart grid hardware.
Most of the applications in this category are SCADA applications that sit at the operation center and used for monitoring the Transmission and Distribution Grid.
Knowledge Continuum: Front Office
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Help the business operate beyond management of the grid in real time load data to feed
Front Office
March 22 25, 2009 Miami, FL, USA 56
Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speakin real time load data to feed
to forecasting models that support generation planning and spot market power purchases or demand management programs
Knowledge Continuum: Back Office
Data Standards
Common Information Model Multi-Speak
Data Management
Storage Routing / Integration Events
Knowledge Continuum
Operational/Analytical Front Office Back Office
Non real-time applications that provide rate analysis and/or
Back Office
March 22 25, 2009 Miami, FL, USA 57
Grid Hardware
Load Management Control Alarm Notification
Distributed Rescores Revenue Metering Protection
Communication Backbone
Networks Transport - Wired Transport - Wireless
(CIM) for UtilitiesMulti-Speakprovide rate analysis and/or
decision support, based on the processing of intelligent Smart Grid data.
The analytics functions transform data into actionable information.
Knowledge Continuum Sample Logical Systems (1)
Distribution Monitoring and Control System (DMCS): Takes feeds from all the other systems in the grid, to provide a single view of what is going on in the grid. Single view for the distribution operations manager
Distribution Substation Monitoring System (DSMS): Manage all of the data from the substations and feed the DMCS. It would also relay the orders to the controls in the substation. With many utilities there are multiple vendors of substation equipment already installed.
Automated Feeder Switch System (AFSS): Monitor, operate and control the automated feeder switches. Typically it would be autonomous in its control and operation, feeding changes to the DMCS. Unlike many implementations today, it would not only balance
March 22 25, 2009 Miami, FL, USA 58
changes to the DMCS. Unlike many implementations today, it would not only balance substation and system load but have the ability to balance circuit loadings between phases, a functionality that wise future grid designers will leverage.
Distributed Generation Monitoring System (DGMS): Monitor the status of the various distributed generation sources on the grid. It would feed status to the DMCS and to the Distribution Forecasting System.
Automated Meter Operations System (AMOS): Real-time monitoring system for meters and other devices deployed beyond the meters. Manage the meter operations, conduct outage determinations, manage demand management events and communicate to end user devices. Feeds the Outage Management System (OMS) and DMCS.
Knowledge Continuum Sample Logical Systems (2)
Meter Data Management System (MDMS): Management the data collected from the automated meters, supports billing operations. MDMS systems are expected to be one-way systems data flows in from the meters and is managed within the system. Note that many vendors view themselves as two-way systems, serving as the point of integration between the back-office systems and a number of heterogeneous field head-end systems. Push them to do outage management and pro-active restoration or any near real time activity and most will fail with todays products.
Distribution Forecasting System (DFS): Take information from the DGMS and the MDMS to support load and supply forecasting on the grid.
Smart Grid Work Management System (SGWMS): Manage work orders for parts of the
March 22 25, 2009 Miami, FL, USA 59
Smart Grid Work Management System (SGWMS): Manage work orders for parts of the Smart Grid sensor network (meters, controls, communications network, etc) that are in need of maintenance or repair. It would normally feed the overall distribution work management system.
Communications Network Monitoring System (CNMS): Talks to the various communications vendors systems to determine communications outages and manages the information on communications outages. It feeds the DMCS information on communications blackout areas, the AMOS to allow for the removal of communications related meter failures, and the DSMS for the same purpose.
Knowledge Continuum Sample Logical Systems (3)
Minor Equipment Monitoring System (MEMS): Monitors capacitor banks, transformers, voltage regulators, re-closers, sectionalizers, and other minor equipment that are outside the substation fence. The system supports the DMCS with fault reports and in the cases where the minor equipment has controls, allows for operation of those controls.
Smart Grid Planning System (SGPS): Records long-term trends and fault patterns so that they can be reviewed by planning and engineering as a baseline for construction, maintenance and other activities.
Smart Grid Operational Data Store (SGODS): Houses the historical data from all the systems that are used to manage the Smart Grid. This allows data mining, engineering studies, regulatory reporting (e.g. IEEE SAIDI, CAIDI, etc.) and other activities where large
March 22 25, 2009 Miami, FL, USA 60
studies, regulatory reporting (e.g. IEEE SAIDI, CAIDI, etc.) and other activities where large amounts of historical data are useful for analysis.
Example Solution Architecture
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Example Solution Architecture (Smart Grid)
March 22 25, 2009 Miami, FL, USA 62
More than 80 Processes are ImpactedManage Customer Service Conduct Field Work Manage Meter-to-Cash Manage Assets Manage Operations Manage General Issues
Manage Work
Manage Supply Chain
Manage Service Orders
Manage Emergencies
Manage Short Cycle Maintenance
Manage Long Cycle Maintenance
Manage New Construction
Manage Strategic Sourcing
Manage Rebuild Work
Dispatch Field Resources
Manage Rate Design
Manage Billing
Process Bills
Manually Process Bills
Manage Tariffing
Forecast Revenue
Manage Measurement
Schedule Meter Readings
Manage Routing & Reading
Manage VEE
Manage Communications
Manage Network Operations
Forecast Demand Needs
Manage Laboratory Activities
Manage Engineering Activities
Manage Process Controls
Negotiate Supply Agreements
Develop Supply Plan
Electricity Supply
Manage Facilities
Manage Regulatory Compliance Activities
Manage Governance
Manage Labor Relations
Manage Reporting
Manage Permits
Manage Budgeting
Manage Legal Processes
Manage Tariffs / Rate Cases
Manage Auditing
Manage Union
Establish Company Policies & Procedures
Recover from DisastersManage Risks
Deliver on Investments
Analyze Issues & Risks
Select and Prioritize Risks
Manage Planning & Budgeting
Manage Contracts and Procurement
Generate Mitigation Solutions/Investments
Prioritize Investments
Manage Customers
Manage Customer Accounts
Manage Third Parties (ABCD)
Manage Contracting
Manage Customer Contacts
Manage Collections
Assess Credit / Manage Risks
Manage Security Deposits
Manage Payment Plans
Manage Operating Activities
Manage Fraud
Manage Balancing
Manage Sourcing
Manage Service Request
System Planning
Risk Assessment
Plan Investments
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Manage Service Provisioning
Oversee Logistics
Manage Warehousing / Inventory Planning
Administer Individual Permits
Manage Disposal Activities
Manage Vendors
Manage Fleet and Tools
Manage Engineering Activities
Manage Inspections
Manage Budget Billing
Invoice & Print Bills
Manage Payments
Process Payments
Manage General Leger / Reconcile
Manage Exceptions
Agreements
Plan Transportation Activities
Manage Union Relationships
Manage Training
Manage Health, Safety & Environment
Administer Public Safety and Education Programs
Manage Public Service, Commercials & Ads
Administer In school Education Programs
Manage Real Estate
Procure / Sell land
Pay Taxes
Manage Real Estate
Manage Physical Security
Manage Projects
Manage Engineering Documents
Manage Legislation Documents
Manage Standards
Manage Documents
Manage Customer Complaints
Manage Problems
Recover from Natural Disasters
Recover from Accidents
Manage Public Relations
Manage Retailer Transactions
Manage EBT Processing
Manage Financial Settlements
Manage Exceptions
Develop Equipment Strategies
Implement Equipment Strategies
Manage Equipment
Manage Third Party Billing
Manage Support Services
Mega process
Major process
Sub-process component
Effected by AMI
Legend
Manage Purchasing
Manage IT, Finance, and HR
Initial Capital Outlay Is A Foundation for the Future
Incremental investments
Communications bandwidth
Business development capital
Incremental utility-side capital
Programmatic, customer-facing and physical device management systems
Capital Build-Up
Demand Response
Extended Utility Roles
Incremental Value Capture
March 22 25, 2009 Miami, FL, USA 64
Incremental field capital and knowledge-based applications
Sensors & device controllers
Distribution operations and automation
Information management
Initial capital outlay
Meter functionality
Communications infrastructure
Head-end and legacy systems modifications
Ex
pe
cte
d V
alu
e
Incremental Capital Commitment
Distribution Grid Management
AMI
The Business Case and the Initiative Lifecycle
Evolution of Decisions Across the Initiative Life Cycle
Provide input on the relative value across opportunities/ initiatives
Weed out misaligned
Provide summary level estimates of costs and benefits across all phases of an initiative to:
Inform ongoing decision making, in terms of prioritization, ranking, and
Establish a more rigorous understanding of costs, potential benefits and the anticipated timing of benefit realization
Prepare managers to handle
Strategic Implementation
Obje
ctive
s o
f a B
usin
ess C
ase
Tactical
Program Development & Justification
Project Development & Justification
Performance & Risk Management
March 22 25, 2009 Miami, FL, USA 65
initiatives and set priorities for remaining ones
Justify investment in an initiative and get funding
prioritization, ranking, and sequencing of initiatives/phases
Select the best implementation approach
Understand funding tranches to inform budgeting and funding allocation decisions
Achieve greater organizational buy-in
Prepare managers to handle implementation risks
Establish specific operational targets and performance metrics that drive organizational behavior and manage performance
Business Case refinement yields increasing accuracy and detail over time
Obje
ctive
s o
f a B
usin
ess C
ase
Typical Business Case Components
Minimum
Common
Exhaustive
Project description
Cost analysis
Alignment to business plan
Stakeholder requirements
Implementation alternatives
Industry/Market environment
Products and services
Marketing
Management
3 Year plan
Business model
March 22 25, 2009 Miami, FL, USA 66
Benefit analysis
Cost benefit summary
Project impact assessment
Risk analysis
Detailed recommendation
Executive summary
Cash flow analysis
Client needs
Development
Servicing model
Total market
Competitive assessment
Entry strategy
Hiring plan
Business Case Framework
Current State Support Costs (Internal and
External)
Future State Support Costs (Internal and
External)
Current State Operations Performance
Future State Operations Performance
-
- =
= Change in Support Costs
Change in Operating Performance (Financial)
+
Roadmap
=+
March 22 25, 2009 Miami, FL, USA 67
RoadmapFuture State Technology
Analysis= Future State Implementation Costs (Internal and External)
+
Analysis and Assessment of non-
financial benefits=
Qualitative / Strategic Advantages, Future Opportunities
+
Business Case
Business Case Logic (Example)
Cost elements Result
Costs
Investment costs
Material costs
Installation costs
Installation training costs
Information system costs
Stranded cost of meters
Customer service costs
Maintenance costs
March 22 25, 2009 Miami, FL, USA 68
Benefit elements
Financial impact
Benefits
Running costs
Network Optimization and Technical Losses
Call Centre
Field Service Management
Customer Meter Reading
Data transfer costs
Running benefits
Customer service costs
Business Case Challenges
Uncertain technology performance and costs
Interdependent benefits
Valuing risk reduction resilience, reliability
Valuing creation of options for future functionality
Valuing deferred / foregone expenditures
March 22 25, 2009 Miami, FL, USA 69
Valuing deferred / foregone expenditures
Valuing (un-priced) environmental externalities
Cost Methodology (Reference and Investment Cases)
IT Reference Case: IT Cost data (how much cost you to
support the business today with current application footprint)
Business Reference Case: Business cost (that is operation
cost in todays environment)
IT Investment Case: IT Cost (future footprint technologies,
March 22 25, 2009 Miami, FL, USA 70
implementation and on-going maintenance)
Business Investment Case: Business Cost (new operating
model including change management)
Benefits (1)
Process/ Function Benchmark Cost Savings/ Cost Avoidance
Benefits Apply to
Billing and Customer Service
Automation of On/ Offs
High Bill Complaint Investigations 2-7% Field customer services costs
Metering
Field meter reading 2-4% Field meter reading costs
Collections
Nonpayment and theft prevention 15-25% Non-collectible expense
Settlement
March 22 25, 2009 Miami, FL, USA 71
Settlement
Retail and wholesale reconciliation 2-4% Loss/unaccounted retail revenue
Demand Management
Peak demand reduction/shift 2-22% Marginal peak capacity costs
System Control
System automation
Power quality management
4-11% System line loss and associated energy costs
Outage Restoration
Trouble response and restoration 3-8% Trouble field labor
Benefits (2)
Process/ Function Benchmark Cost Savings/ Cost Avoidance
Benefits Apply to
Standards and Construction
System design optimization 15-25% Distribution new construction and capacity strengthening capital
Asset Management
System and equipment life-cycle management
4-19% Field system inspection and maintenance costs
Vegetation Management
Trimming requirements optimization 3-7% Field vegetation management costs
Field Work Management
March 22 25, 2009 Miami, FL, USA 72
Field Work Management
Field resource optimization 3-7% Customer service field labor
Safety
Live-line verification 3-7% Field labor preventable accident costs
Load Forecasting
System capacity and reliability planning 9-14% Forecast accuracy
Tariff and Regulatory
Tariff administration and compliance reporting/ analysis
1-4% Tariff administration costs
Benefit Areas Identified
Geographic Information System
Regulatory
Forecasting
Metering
Engineering
Scheduling
Call Center
Vegetation Management
Outage Management
Field Communication
(Mobile Workforce)
Meter Reading
Outage NotificationRestoration Verification
Remote DisconnectDemand
Management
Load Forecasting
Current Diversion
TOU Billing
Design Standards
Power Quality
Load Scheduling
Curtailment Planning
Outage Planning
Tariff Design
Rate Case Support
Connectivity Validation
Closing Verification
IEEE Indices
Live Line Verification
Service VerificationBlink Target Trimming
Trim effect verificationCritical & Complex
Tariff
Asset Loading
Remote Issue ValidationSimulation
March 22 25, 2009 Miami, FL, USA 73
Collection Billing Dispatch SCADA Asset Management
Order Completion Asset Load ProfilingRevenue Lift Prepay
Real Time Pricing
Weekly Billing
Automatic Shut-off
System Security
Load Protection
Selective Load Mgmt
Infer Cap Bank Status
Maintenance Planning
Site/Line Status
RarelyMost In 50%
Benefit Areas Realized
Geographic Information System
Regulatory
Forecasting
Metering
Engineering
Scheduling
Call Center
Vegetation Management
Outage Management
Field Communication
(Mobile Workforce)
Meter Reading
Outage NotificationRestoration Verification
Remote DisconnectDemand
Management
Load Forecasting
Current Diversion
TOU Billing
Design Standards
Power Quality
Load Scheduling
Curtailment Planning
Outage Planning
Tariff Design
Rate Case Support
Connectivity Validation
Closing Verification
IEEE Indices
Live Line Verification
Service VerificationBlink Target Trimming
Trim effect verificationCritical & Complex
Tariff
Asset Loading
Remote Issue ValidationSimulation
March 22 25, 2009 Miami, FL, USA 74
Note: Not all benefits are being applied to all customers of the utility
Collection Billing Dispatch SCADA Asset Management
Order Completion Asset Load Profiling
TOU Billing
Revenue Lift Prepay
Real Time Pricing
Weekly Billing
Outage Planning
Automatic Shut-off
System Security
Load Protection
Selective Load Mgmt
Infer Cap Bank Status
Maintenance Planning
Site/Line Status
Tariff
RarelyMost In 50% In 25%
Benefit Methodology
Developed a spreadsheet that contain all the potential benefits
Tag each benefit, whether it is valid
1
2
March 22 25, 2009 Miami, FL, USA 75
Calculating the overall benefit becomes a simple exercise of adding up the numbers
3
Benefit Methodology: Metering
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Benefit Methodology: Operations
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Benefit Methodology: Regulatory
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Benefit Methodology: Customer Operations
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Benefit Methodology: Forecasting & Scheduling
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Benefit Methodology: Construction and Standards
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Benefit Methodology: Distributed Resources Integration
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Benefit Methodology: Gas and Water
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Benefit Methodology: Other
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Benefit Bandwidth Requirements
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Benefit Bandwidth Requirements: Metering
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Benefit Bandwidth Requirements: Metering
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Benefit Bandwidth Requirements: Operations
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Benefit Bandwidth Requirements: Operations
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Benefit Bandwidth Requirements: Regulatory
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Benefit Bandwidth Requirements: Regulatory
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Benefit Bandwidth Requirements: Customer Operations
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Benefit Bandwidth Requirements: Customer Operations
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Benefit Bandwidth Requirements: Forecasting & Scheduling
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Benefit Bandwidth Requirements: Forecasting & Scheduling
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Benefit Bandwidth Requirements: Construction and Standards
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Benefit Bandwidth Requirements: Construction and Standards
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Benefit Bandwidth Requirements: Distributed Resources Integration
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Benefit Bandwidth Requirements: Distributed Resources Integration
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Benefit Bandwidth Requirements: Gas and Water
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Benefit Bandwidth Requirements: Other
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Business Case Toolkit
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Business Case Toolkit: Program Cost
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Business Case Toolkit: Program Cost
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Business Case Toolkit: Benefits
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Business Case Toolkit: Benefits Calculations Reduce Technical Losses
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Business Case Toolkit: Benefits Calculations Meter Reads
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Business Case Toolkit: Benefits Calculations Demand Response
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Business Case Toolkit: Benefits Calculations Social Benefits
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Maturity Model
III. Advanced Customer Functionality w/BPL Gateway Broadband Internet (Wholesale/Retail)
IV. Advanced Grid Functionality w/BPL and Fiber Backbone Automated Switching and System Protection Distribution and Substation Automation Power Quality/Line Loss/Distr SCADA Real-time Network Monitoring and Failure/Predictive Maintenance Asset Management
V. Advanced Functionality w/ High Bandwidth Wireless System Broadband Mobile Data and Communication Real-time Workforce/Fleet Monitoring and Optimization Workforce Safety and Asset Monitoring (RFID) Mobile Mapping and Streaming video
Inc
rea
sin
g C
os
t
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I. AMR Base Functionality Automated Metering Outage Detection Low bandwidth Comm
II. AMI Advanced Functionality Remote Connect/Disconnect Critical Peak Pricing Load Limiting/Load Control Theft Prevention/Revenue Management New Retail Services (Home Security) Real-time Outage Management
Broadband Internet (Wholesale/Retail) Smart Home Automation Advanced Retail and B2C Services
Inc
rea
sin
g C
os
t
Increasing Bandwidth
Transformation success Factors
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Program LifecycleE
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Eff
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Time (Years)
Str
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Program Management Office (PMO)
Change Management and Integration
Performance and benefits analysis
Innovation / Smart Grid
Pil
ots
How to Start a Program
Define requirements & objectives
Craft the system architectural plan
Develop the final business case
Evaluate AMI & IT technologies
Develop the implementation plan
Define strategic, business, and technical requirements for AMI system or its integration within the utility enterprise
Prioritize these requirements.
Align with the utility
Develop a complete system plan with sufficient details for finalizing the business case and crafting the implementation plan.
Develop the solution architecture footprintand enterprise
Identify the most suitable AMI and IT technologiesand system designs
Compare functional capabilities and technical performance of available technologies.
Assess system integration and process
Conduct a sufficiently detailed cost/benefit analysis of the AMRsolution to support recommendations to the utilitys executive leadership.
Categorize the costs and benefits into capital.
Formulate plans for implementing the recommended AMI solutions, from development to production and benefits realization.
Develop the system development plan, including AMI technologies and information systems such as a meter data management system (MDMS).
Develop the system deployment,
March 22 25, 2009 Miami, FL, USA 113
Align with the utility business strategies.
Establish preferences in business options (e.g., build vs. buy, own vs. fee for service, etc.).
Assess gaps between current and future AMI-enabled business processes.
Assess gaps in IT systems to enable AMI benefits.
Analyze customer segmentations for deployment priorities and business case planning
and enterprise integration plan for information systems and business processes.
Identify major risks, their likelihood and potential impact.
integration and process alignment possibilities.
Assess system development, deployment, and ongoing operations and maintenance costs.
Estimate total costs of ownership. Adjust benefits to be commensurate with technology capabilities.
Assess costs/benefits of the different technologies.
and benefits into capital. Allot the costs and benefits to the appropriate timeline.
Identify all direct and indirect costs. Adjust the cost and benefits for regulatory, human resource and other constraints (e.g., labor commitments regarding FTE reductions).
Finalize business caseand associated documentations.
Develop the system deployment, including the meters, communication network equipment and IT systems.
Develop the system integration plan, integrating MDMS with the AMI head-end systems and the customer information and billing systems, outage management system, work management system, engineering applications, etc.
Develop a plan for benefits realizationincluding process reengineering, change management, training or retraining, and risk management, etc.
Planning Phase Sample Timeline
1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month 7th Month 8th Month 9th Month
Project Startup
Process Assessment and Definition (Process Inventory, Detailed Process Maps, To-Be Process Workshops, Functional Specification)
AMI Technologies RFPs (Meter, Communication, MDM, Asset Mange, etc)
Regulatory Submission
Business Case Modeling for Input into Regulatory Models
Decision on key AMI Technologies
Install and test Pilot Platform (Meters, Communication, MDMS, Test System, etc.)
Pilot Lessons Learned
Go/No Go
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Change Management Strategy (End User Training Analysis and Materials, Internal and External Communication, Change Management Implementation)
Benefits Realization Tracing Strategy (Policies and Procedures, Governance, SLAs)
Quantitative Risk Assessment & Risk Management (Mitigation Plan)
Mass Rollout Planning (Release Plan, Cutover Methodology, Rollout process and procedures)
Solution Architecture (As-Is Review existing platforms, Functional, Technical, Integration, Operation, Application, Network, Security, Data, Testing)
Application Integration Assessment and Definition
Sample Deliverables
Deliverable Description
Current State Architecture
Current state snapshot of the application landscape and how current applications support the people and processes
Focuses/drills down in AMI related areas of the business
Short description of each of the application identified
Business and Technology Context Diagram
High-level overview of functional processes
Focuses/drills down in metering related areas of the business
High-level overview of the application supports those functional process
Business Case Analysis of program cost estimates, including risks of implementation time and cost overruns
Analysis of value creation over time by key functional area, including sensitivity analysis for various outcomes
Will be fed by AMI Objectives, vendor assumptions, benchmarking and analysis
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Solution Architecture / Future State Architecture
Solution architecture required to support the AMI Requirements & Business Processes, focusing in the following key areas: Functional Architecture, Technical Architecture, Integration Architecture, Operations Architecture, Application Architecture, Network Architecture, Security Architecture, Data Architecture, Testing Architecture
Selected technologies and how they are integrated to deliver on the AMI vision
Will serve as the objective to guide and evaluate future systems projects against. Focuses/drills down in AMI related areas of the business
Program Roadmap Timeline view of projects required to meet Advanced Metering deployment objectives
Program will consider implementation difficulties, resource constraints and high level dependencies between projects
Technologies Selection Meter equipment, Communication infrastructure, Meter Data Management System (MDMS), etc.)
Issue and evaluate Request for Proposal (RFP) documents if needed provide evaluation process and framework for evaluating vendor RFP response with associated scoring and weighting parameters
Assessment of the commercial viability of the leading AMI vendors
Sample Transformation Map
March 22 25, 2009 Miami, FL, USA 116
Capgemini Takes an Holistic Approach to Address The Smart Grid Vision
Radical changes to the utility model: Virtual utility, Microgrids low voltage with DG sources
Security processes
Regulatory & Legal changes in process
Supply & Procurement
Process Technology People
Adequate Architecture
New network technologies that facilitate increased power transfers and losses reduction (e.g. GIL, superconductivity, high operating temperatures, FACTS technologies, etc.)
Wide deployment of communications to enable grid
Educations and Skills
Wide area adoption, through commercial mechanisms, is needed to attain its benefits
Funding
Public awareness
Strategy
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Supply & Procurement changes in process
Flexible framework approach
communications to enable grid automation, on-line services, active operation, demand response and DSM
Power electronic technologies for quality of supply
Stationary energy storage devices
It is not just about technology
Thank You
March 22 25, 2009 Miami, FL, USA 118
Meir [email protected]
214. 929-8072