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© 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
© 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$11.5 billionWorth of produce is wasted in India because of outdated post-harvest infrastructure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
© 2010 IBM Corporation3
Smart Energy for a Smarter Planet
© 2010 IBM Corporation3
Smart Energy for a Smarter Planet
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
© 2010 IBM Corporation4
Smart Energy for a Smarter Planet
© 2010 IBM Corporation4
Smart Energy for a Smarter Planet
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
© 2010 IBM Corporation5
Smart Energy for a Smarter Planet
© 2010 IBM Corporation5
Smart Energy for a Smarter Planet
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
© 2010 IBM Corporation6
Smart Energy for a Smarter Planet
© 2010 IBM Corporation6
Smart Energy for a Smarter Planet
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
© 2010 IBM Corporation7
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?
Smart Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation8
+ + =An opportunity to think and act in new ways—
economically, socially and technically.
8
Smart Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation9
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?
Smart Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation10
Proof-point - Beacon Institute
Smart Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation11
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 ?
Smart Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation12
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.
Smart Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation13
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 Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation14
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 Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation15
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 for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation16
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 for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation17
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 for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation18
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 for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation19
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 for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation20
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 for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation21
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
Smart Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation22
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
Smart Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation23
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
Smart Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation24
What is Watson?
Smart Energy for a Smarter Planet - Intelligent Utility Network
© 2010 IBM Corporation25
We’ve only just begun to uncover what is possible on a smarter planet.
For more information:
Shlomo Shamy
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