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IBM Energy & Utilities Global Smart Grid: Projects and Best PracticeMatt Futch, Global Policy Director, IBM Energy & Utilities

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Smarter Energy and UtilitiesTransforming the Business Model

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The transformation provides tremendous opportunities

Reduction in peak loads

15%when consumers were offered the opportunity to save an average of 10% on their electric bills

Increasing demand

53% projected growth in worldwide energy demand by 2035

$38 trillion global investment in energy supply infrastructure is expected between 2011 to 2035 (U.S.$)

$70 billionGreater efficiency

in infrastructure spending could be saved over the next 20 years through better management of existing assets (in the U.S. alone)

Substantial investment

Changing generation mix

50%of new capacity is expected to be from renewable energy sources; by 2035, subsidies for renewables reach almost $250 billion

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In a connected world, pressures on utilities continue to increase, underscoring the need for a smarter approach

45%

Increasing consumer expectations

49%

>50% of surveyed consumers with an opinion expect smart grid technologies will lower total household costs for energy use. But . . .

of consumers were concerned that erroneous smart meter readings would result in overcharges

By 2050, the Electric Power Research Institute estimates that the average electric bill will probably go up by about 50 percent if the smart grid is deployed.

is the expected increase in the average electric bill if the smart grid is not deployed

ca. 400%

In the utilities industry, the number of connected devices – participants in the “Internet of things” – is growing exponentially:

Compound annual growth rate, 2010-2015

Data explosion Cost and pricing pressures

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DONG Energy, based in Denmark, reduces outage time and saves on capital investment

Business problem: Develop the capacity to better manage and utilize its electrical distribution network in order to respond to outages faster and more efficiently.

Solution: Implement an intelligent utility network by installing remote monitoring and control devices that provide information about the current state of the grid, reengineering business processes, and analyzing the resulting data to improve operations.

“It turns out that the real key isn't the fact that we’ve got visibility into the grid, though that was our initial goal. It’s that we now have information available on grid performance that we didn't have before. We can do a lot with that information.”—Peter Vinter, Power Grid Specialist, DONG Energy

estimated capital savings on planned grid reinforcements, when fully implemented

potential reduction in outage minutes. Fault search times reduced by one-third

25-50%

90%

© 2012 IBM Corporation

Enemalta and Water Services CorporationsBuilding the world’s first smart grid island

Solution Components

Real-time monitoring and smart meters can deliver pricing based on time of day, enabling the utility to better manage energy consumption and customers to cut their electrical bills. Malta residents will also be able to track their energy use online and see how to curb consumption habits.

IBM is partnering with Enemalta, the national utility for the first national smart grid network on Malta complete with 250,000 smart meters that will enable the national utilities and their customers to better manage energy and water use.

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A Canadian energy company optimizes the operation of its power grid to avoid outages and power surges

Business problem: Accommodate the rapid expansion of external sources of distributed, renewable generation and modernize the distribution system to improve reliability, responsiveness, planning, and overall customer satisfaction.

Solution: Develop an advanced distribution grid management system, and implement real-time analytics capabilities to enable better prediction of demand, help ensure the right amount of power is generated, improve monitoring and control of distribution resources, and optimize outage restoration.

When fully implemented, sensors will report outages automatically, and crews can be dispatched earlier and more accurately

more distributed generation allowed into the grid

100%Up to

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Pacific Northwest National Laboratory uses innovative ways of managing demand to keep the electric grid healthy in times of stress

10%

reduction in short-term peak electricity loads, helping to avoid power restrictions and cascading blackouts

Business problem: Wanted to manage electricity demand through a combination of intelligent technology and financial incentives.

Solution: After two years of preparation, the PNWSG Demo went live and the Transactive Energy Management went into full effect. Attendees at a launch event at the University of Washington witnessed how the new signal will allow project managers to accumulate energy usage information from all 60,000 households and monitor the energy grid in real time – a capability that was once impossible.

average savings on electricity bills

$70 billion projected reduction in infrastructure spending over 20 years

50%

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A group of utilities provide consumers with direct access to their consumption metrics

Business problem: Seeking to improve the quality of service they could offer, a group of energy providers wanted to increase transparency within the energy industry and provide consumers with direct access to their consumption metrics.

Solution: A public energy tracking solution that allows consumers to closely monitor their personal energy use.

7.1 millionStandard platform across

2.5 millionenergy meters and

consumers, provides visibility into their personal energy use

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VESTAS wind energy optimizes the siting and production value of their wind farms through forecasting and data analytics

97%Reduction in response time for wind forecasting information

IT footprint and costs and decreases energy consumption by

40%

"We can now show our customers how the wind behaves and provide a solid business case that is on par with any other investment that they may have.”

—Lars Christian Christensen, Vice President, Vestas Wind Systems A/S

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DNO - Distribution Network Operator

REP - Retail Electric Provider

TSO - Transmission System Operator

IBM EV Platform

DNO

REP

TSO

REP

REP

REP

REP

REP

Irish Utility ESB - EV platform for nationwide EV infrastructureIrish utility is deploying 1,000 EV charging stations and is partnering with IBM to develop a transaction management system

SERVICES INCLUDE User management services including enrollment

and issuance of RFID card

Charge Calculation based on the identified user’s appropriate rate

Prepay and Post-pay services

Transaction clearing and settlement services between DNO and REP

Management of interruptible tariffs for spinning reserves

Integration with TSO / DSO for usage forecasting

Charge health monitoring and reporting of status

Web and mobile interfaces for charge post location and viewing of relevant data

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Public Private Partnerships Developing an eco-system of knowledge

© 2012 IBM Corporation

As a global integrator weverages three foundational capabilities to deliver end-to-end solutions.

Solution DevelopmentIBM Research

Solution Delivery

Nuclear Power Advisory Council

Global IUN Coalition

Partner Ecosystem

POLICY AND REGULATIONSOLUTION DEVELOPMENT AND DELIVERY

INDUSTRY THOUGHT LEADERHSIP

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Smart Grid Australia

Smart Grid Canada

Smart Grid Great Britain

India Smart Grid Forum

Smart Grid Ireland

Japan Smart Community Alliance

European Distribution

System Operators

Korea Smart Grid Association

NEW ADMISSIONS

DenmarkIsrael

South Africa TaiwanTurkey

IBM established and manages the Global Intelligent Utility Network Coalition – advancing smart grid for over 150 million consumers around the world

GLOBAL SMART GRID FEDERATION

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Solving the Puzzle – Partnerships

IBM partnering with European utility association to develop market structure, regulatory reform and investment recommendations enabling energy infrastructure innovation and network reliability

EUROPEAN UNION

UNITED STATES

MALAYSIA

TURKEY

IBM is working with GRIDWISE Alliance and other members on Federal energy and regulatory policies that enable the next transformational step for smart grid in the US market.

IBM working with national smart grid association and regulator on best practices for market structure, system operations, and technology platforms for smart meter data management.

IBM working with Malaysian Energy Commission to provide best practices on regulatory reforms enabling smart grid. National smart grid road mapping also part of activity. Multiple utilities and vendors part of the work effort.

© 2012 IBM Corporation

Campinas, BrazilSmart Metering Center, loss reduction, communications

Queanbeyan, AustraliaIN strategy and customized IN blueprint, organizational impact of smart grid, IN Research & Demonstration Center

New Delhi, IndiaSmart grid governance structure, smart grid roadmap (in planning)

San Diego, CA USASmart grid system implementation, condition based maintenance, OMS/DMS, smart grid communication strategy

Houston, TX USAAdvanced metering system implementation, integration and PMO, MDM and HAN, Smart Meter Texas

Raleigh, NC USAOptimized energy value chain minimizing need for new fossil generation units, AMR-to-AMI strategic transition, advanced feeder modeling

Washington, DC USAIUN blueprint, outage management, notification, AMI

Copenhagen, DenmarkVPP, EDISON, DMS integration, CBM

Paris, FranceSensing & control, asset optimization for fault prevention, smart grid for Co2 reduction, AMM & communications network

Dallas, TX USAAdvanced metering system implementation, integration and PMO, MDM, Business Analytics, Security, Smart Meter Texas

Arnhem, The NetherlandsOrganization-wide smart grid vision and strategy, smart grid PMO, fraud detection

Seoul, South KoreaNuclear generation, Jeju test bed, Renewable integration, EVs, Grid automation

Tokyo, JapanLow carbon generation, EVs, Rooftop PV, Efficient buildings, AMI, Storage, Grid Reliability

Coalition Overview – Current Membership

Düsseldorf, GermanyEfficiency, Renewables Integration, Grid Quality, Intelligent Substation

Global Intelligent Utility Network Coalition

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Universal policy foundation for Smart Grid

Adopt or Establish Interoperability Standards

Develop a Robust Consumer Education Plan

Create Regulatory Incentive for Utility Investments

Establish Clear Data Privacy and Security rules

Create a Long Term Roadmap with Milestones

© 2012 IBM Corporation

ありがとう * شكرا * 謝謝 * Merci * Danke * शकु्रि�या * תודה * terima kasih * باہآپ کا شکری * gracias * tack * تشکر از شما * σας ευχαριστώ * * رشك спасибо * gratias agimus tibi * Thank you!

Matt Futch, Global Policy DirectorIBM Energy & Utilitiesmgfutch@us.ibm.com

303-638-9412