SMART Grid Integration Through Advance Analytic Solutions
Conference on Transmission Distribution & Metering India (Enabling Smart Grid Smart Metering) – New Delhi
10-11 November 2010
Arindam Ghosh
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Smart Grid Vision
To digitize a largely passive network into a two-way, interactive
information highway to support metering and grid monitoring
and control, from demand management to “self-healing” circuits.
– Grid intelligence (collecting and analyzing data about grid
activities and behaviors) and the ability to act in real-time are
the defining capabilities.
– Smart Grid involves a large-scale investment in T&D
infrastructure aimed at enabling, and improving, advanced
metering, demand response, asset management, and system
reliability.
Source: EEI
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Uncertainties and obstacles
• Little consensus on definition or direction
• Lack of standards
• Uncertain performance expectations,
benefits, and costs
• Limited investment capacity
• Uncertain regulatory treatment
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Protection
Automation Coordination
• Network Operations Optimization
• Dispersed Generation and Grid coordination
• Renewable energy Integration
• Rapid Growth in Overall Electricity Demand
• Growing awareness for Reliable and Quality Electricity supply
Smart Grid Future Technology - the Driving Force
Drivers of SMART GRID
Demand
Technology
• Increasing competition within Industry due to deregulation and restructuring
• Pressure on DISCOMS to increase energy efficiency and be self sufficient
Regulatory
• Theft and Fraud Detection
• Demand Management and Volatility adjustment
• Meter based Billing rather than estimated billing
Internal
Characteristics of SMART GRID
Smart Grid Prediction
Adjustment
Optimizatio
n
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Smart Grid Represents a Major Enterprise Transformation
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Impact Is Broad and Pervasive
• Meter reading expense
• Preventable field labor accidents
• Back-office operating cost
• Revenue growth
• Meter reading expense
• Preventable field labor accidents
• Back-office operating cost
• Revenue growth
• Field customer service costs
• Non-collectible expense
• Customer service field labor
• Service order response time
• Field customer service costs
• Non-collectible expense
• Customer service field labor
• Service order response time
• Forecast accuracy
• Net billing
• Line loss revenue
• Fuel cost avoidance
• Forecast accuracy
• Net billing
• Line loss revenue
• Fuel cost avoidance
Smart Grid Business Changes
Major Processes Impacted
Benefit Categories
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
A Broader Approach Recognizes the Role and Importance of Data as a Transformation Driver
Process
• Re-engineering
• Process optimization
• Quality and productivity
Organization
• Workforce rationalization
• Skill development
• Resource progression
• Decision support Data Data • Optimized operation • Automation
• There is tremendous There is tremendous
value potential in value potential in
identifying ways in identifying ways in
which data can which data can
transform the business.transform the business.
• Data can be the source Data can be the source
of new value as well as of new value as well as
being the “multiplier being the “multiplier
effect” to leverage effect” to leverage
additional value from additional value from
existing investments.existing investments.
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Data Becomes a Key to Driving Value
New and Additional Data
• Interval consumption
• Interval demand
• Meter status/error reporting
• Event completion notification
• Condition alert (i.e.
tampering)
• Grid node status
• Distributed generation data
• Feeder status/monitoring
data
• Power quality incidents
• T&D line loss
• Grid voltage stability
Optimizing the benefits of Smart Grid requires a data-driven transformation in addition to technology and process
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Meter Data Management Managing a Complex Environment
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Meter Data Management (MDM) – Why it is critical for Smart Grid
• New meter technologies capture significantly more data. Utilities need a central
repository for this data.
• MDM is the foundation on which many AMI and Smart Grid programs will be built,
both as a technical prerequisite and as a foundation for improved business value.
• While meter data was once viewed as simply an input to the billing process, its
strategic business value has grown considerably.
• It provides the data required for regulatory reporting compliance as well as key
business metrics.
• MDM is a central component to enabling and managing security and information
protection
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Some key data management considerations
• Data Volume & Management
• Data Collection & Collation
• Legal Consultation and Privacy Concerns
• Incident and Breach Management Planning
• Leverage Data Audits and Reviews
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Architecture of Smart Grid Creates a Paradigm Shift in the Role of Data
Bidirectional, real-timecommunications
Consolidated & IntegratedApplications
Time sensitivity inmilliseconds
At Present Future
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
How to Extract Value from DataExample – Distribution Management
Grid operations have historically been limited by unidirectional communication devices and a high degree of manual involvement. Outage management is typically a reactive process based on trouble calls. A “Smart” grid with numerous data collection and control points will provide the data to enable advanced distribution and power management capabilities.
• Condition-based monitoring• Feeder segmentation• Distributed generation• Plug-in electric vehicle (PHEV)
• Demand-side demand response
• Home area network• Grid voltage
• Enable “self-healing” and increase distribution management automation
• Grid can proactively identify potential failure points and react to prevent outage
• Reduce outage rate of occurrence and impact
• Make outage management more proactive vs. reactive
• Increase grid management“intelligence”
• Automate sensors and control nodes to react to specific events
• Program outage alarms and notifications to automatically initiate repair crew work orders and customer communication
• Establish a distribution management system to operate grid
• Assess potential redundancies with other systems (i.e. Outage Management System (OMS)
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Data Analytics - Life Cycle for a Power Distribution Utility
• Abnormal consumption report
• Areas of High Loss Report
• Consumption trends Report
Bu
sin
ess
An
alyt
ics
Key
Co
nc
entr
atio
n A
rea
sIn
tellig
ent S
olu
tion
sM
IS an
d R
epo
rting
• Data Point Optimization
• Demand Analysis
• Market Insights
• Dashboards
• Customer Data Analytics
• Load Data Analytics
• Billing Data Analytics
• Vendor Data Management
Business Drivers to Achieve MDMS
• Grid Optimization
• Demand Management Revenue Protection
• Outage Management
Business
Benefits after MDMS
Metered Data Management System
MDMS
Roadmap to MDMS Roadmap after MDMS
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Advantages of Advance Analytics
15
“Customer Information and Energy Use”
• Automation / effort reduction• Restoration improvements• Revenue protection• Some demand reduction
“Strategic Consumer Integration and Empowerment”
• Consumer engagement• Energy efficiency• Incremental revenue
Focus: • Infrastructure and meter install• Customer interaction • Usage and outage analytics• Meter to cash process
connectivity• Governance
Focus: • Network and asset management• Advanced workflow• Real-time data management and
analytics• Operating model integration
Focus: • Enhanced Business model• Customer strategy and
behaviors• Third party relationships• Innovation and collaboration at
speed
“Grid Optimization “• Asset life optimization• System operational efficiency• Improved reliability• Predictive maintenance
Beyond the Meter
Change:
Change:
Change:
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Analytics Solution - Illustrative
_
+
Per
form
ance
Sub-Metering
Outage Management
Active Load Control
Revenue Protection Real time
Decision Making
Load Profile
Market profile
Customer profile
Tariff profiling
Theft Detection
Peak clipping
Load shifting
Scheduling & Settlement
Demand Optimization
Price & Load Modeling
Load Forecasting
Integrated Voltage /VAR Control
Usage Analysis
Distribution Planning & Analysis
Grid Optimization
Strategic Consumer Integration and Empowerment
Customer Information and Energy Use
So
luti
on
s
Abnormal consumption report
Areas of High Loss Report
Consumption trends Report
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Risk Analytics Solution - Illustrative
_
+
Per
form
ance
Last-Gasp, Power-Up Messages,
Demand violations
Abnormal power
factors
Transformer & cable load and equipment load
analysis
Peak and Valley Analysis
Baselines and Outlier Analysis
Identifying tampered meters
or zero readings
Customers who are billed but
never pay
Customers billed on average or minimum
Customers with same name and address
Same customer number with
different names and addresses
Customers with no name and
address
So
luti
on
s
Alarm and Notifications
Transformer & cable load and equipment load
analysis
Usage and Scenario Analysis
Rate Analysis & Load Factor
Analysis
Advanced switching
Modeling
Applications Utility
Modeling
Flexible Load building
Modeling
Reliability area footprint modeling
Demand supply / demand response Modeling
Energy mix Analysis
Forecasting & Energy
Procurement
Energy
Accounting
Carbon footprint
Analysis
Energy Balance
Report
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
MIS and Reporting Solution - Illustrative
Continuous Monitoring and Vigilance Dashboard
• Near real time energy accounting
• Data Reconciliation Monitoring
• Area / Office wise monitoring
• Watching High Value Customers for fraud
Thank You
Presentation by Arindam Ghosh
Associate Director – Advisory
KPMG
DLF Corporate Park
DLF City, Phase III
Gurgaon 122002, India
Mobile: +91 9650666868
Email: [email protected]
© 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registeredtrademarks or trademarks of KPMG International Cooperative ("KPMGInternational").