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Snowy Hydro Chief Digital OfficerJohn McGagh
August 2016
Construction began
under first
Commissioner
Sir William Hudson
at Adaminaby
Queen Elizabeth II
and the Duke of
Edinburgh visit the
Scheme
Prime Minister
Robert Menzies
switched on the first
power at Guthega
Power Station
Snowy Hydro is one of
Australia’s most iconic
companies and
custodian of one of the
civil engineering
wonders of the modern
world - the Snowy
Mountains Scheme 1949 1955 1963
Between 1949, when the first blast was fired, and 1974, when
the physical works of the Scheme were complete, more than
100,000 men and women from more than 30 countries worked
on the Snowy Mountains Scheme...
The Snowy Scheme
was designed for a dual
purpose - to move
water from east to west
for irrigation; and to
generate electricity as a
by-product and a
means to pay for this
nation-building project.
● Nine power stations
● One pumping plus a pump
storage capability
● 16 major dams
● Storage capacity of 7,000
gigalitres or ~12 times the
volume of Sydney Harbor.
● 145km of interconnected
tunnels and pipelines
● 80km of aqueducts
● 33 hydro-electric turbines
● Generating capacity of 4100
megawatts.
The Snowy Mountains Scheme includes:
The modern Snowy
Hydro Limited is the
fourth pillar of the
National Electricity
Market - with one
million retail customers
and 5500MW of
generation capacity
across Australia
including hydro, diesel
and gas.
Disruption
&
Change
The Australian Energy
system is facing significant
change, as are most/all the
energy systems world wide.
Pressure on transition to low
carbon and breakthroughs in
new technologies are but two
pervasive topics driving the
change momentum.
We also face other change
pressures..
An Energy System Facing Change
Generation
Political
Storage
Distribution
Economic
Post GFC and Carbon Tax
the energy demand in
Australia has declined in
relative and absolute terms.
Generation capacity is in
oversupply (v/s historic).
What would happen if new
demand say from a
transportation switch to
electric vehicles happens?
One Big Potential Change - Demand
Major vehicle manufactures have
substantial electric platform investments.
The Tesla #3 will come close to the
US$30k/unit tipping point
Our industry analysis teams
carefully consider a
spectrum external
developments.
We participate in most/all of
the key business and policy
shaping forums.
But … we do also look to
drive rapid internal change
as this best postions our
company for the future.
External and Internal Business Perspectives
Scan External
Environment
Build Into
Strategy
Search For
Innovation
Implement In
Business
New opportunities are made
possible because of
significant advances in IIoT
interconnectivity and
advances in increasingly
“intelligent” systems.
Competitive advantage can
be added buy businesses
that strategically exploiting
these new “Frontiers”
Forces Shaping Snowy Hydro Thinking
Generation C (connected) is a significant and building an increasing part of todays workforce, this is the generation born after 1990
This is the generation that has grown up in a connected world and expects the world of work to reflect.
They will not experience a career in the same way as their parents, more transient expectations.
We live within a data rich,
interconnected, global
community, forces are at
play that will re-shape our
world.
Generational changes will
radically shape workforce
expectations, employers
most react.
This is a time of great
opportunity.
People First - “Generation C”
● Text not phone
● Always connected
● Global reach
● Social networks
● Technology transparent
● Connected expectations
● Digital citizen
People Run Business
Great employers will create a
workplace environment that
best leverages both the
competencies and also the
expectations of both the
current and next generation
workforce.
Generation C will me more
productive and innovative in
a “digital company”.
A Mobile Digitally Enabled Workplace
We describe our
opportunities as three
“Frontier ” digital themes.
This simplifies the jargon
around “big data” and helps
in building models that can
be applied to the business.
Snowy uses three constructs
to describe our Frontier
opportunities..
What lies at the Frontier?
People years of
experience asset base
will most probably keep
shrinking
Augmentation of people
experience with
advanced systems will
keep improving
Cognitive
Computing
Digital
TwinPredictive
Analytics
New value is available. Data
is a hidden asset.
A competitive challenge for
management is to capture
this value.
This is a puzzle to be solved
by every organization, the
new value will be delivered
only when “Frontier”
enhances the business value
chain.
This is todays value puzzle
Snowy 4.0 - Capturing Value
Value
Chain
We will develop a coherent
data model of the Snowy
Value Chain
We will drive value from the
Model
We can model rain drops to
the retailer
Data is the hidden value on
the Asset Register
Modeling then Driving the Value Chain
We
ath
er
Wa
ter
Po
we
r
Tra
din
g
Con
tra
ct
Re
tail
Be
hin
d th
e
Me
ter
Data Chain
Knowledge as a Service (KaaS) Platform
Closing Remarks
August 2016
Augmented
reality: real time
data about our
assets and
equipment on
tablets and
smartphones.
Asset visualisation: the early
stages of creating ‘digital twins’ at
Snowy Hydro. Enables 3D models
and guides for maintenance,
‘virtual’ power stations and 3D
printing of components.
Scheme intelligence:
real time information
about market prices,
generation and outages
across the asset fleet.
By investing in technology,
Snowy Hydro has already
improved mobility,
connectivity, safety and
efficiency across the
business
Tens of millions of
dollars has been
invested in upgrading
the Scheme’s
generation assets -
improving generation
capacity from
3756MW on
construction
completion to
4100MW today.
Further efficiencies
have been captured
through automation
and the introduction
of augmented reality
technology, 3D
visualisation and
online maintenance
records and upkeep
in partnership with
Red Eye
Unleashing the potential
of data goldmines held
across the Snowy Hydro
generation and retail
businesses and
leveraging our award
winning retail brands to
unlock the potential of
behind the meter
products and services
will be key.
Scheme construction
phase resulted in massive
technology and innovation
leaps - dam building,
drilling, rockbolting and
power transmission.
The first transistorised
computer ‘Snowcom’ -
was one of the first
computers in the world.
Industrial safety evolution
- seatbelts.
Snowy Hydro is on the threshold of one of the most
powerful periods of innovation since construction
Thank You
August 2016