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