Smart Grid Overview US Chamber of Commerce Kieran McLoughlin Smart Grid Solution Leader
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© Copyright IBM Corporation 2008 Smart Grid Overview US Chamber of Commerce Kieran McLoughlin Smart Grid Solution Leader Global Energy & Utility Industry November 5 th 2008
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Smart Grid Overview US Chamber of Commerce Kieran McLoughlin Smart Grid Solution Leader Global Energy & Utility Industry. November 5 th 2008. Agenda. What is Smart Grid? Why is Smart Grid Happening? Utility Smart Grid Development, a Journey Investments in Smart Grids…Opportunities - PowerPoint PPT Presentation
Transcript of Smart Grid Overview US Chamber of Commerce Kieran McLoughlin Smart Grid Solution Leader
© Copyright IBM Corporation 2008
Smart Grid Overview
US Chamber of Commerce
Kieran McLoughlinSmart Grid Solution LeaderGlobal Energy & Utility Industry
November 5th 2008
2 © Copyright IBM Corporation 2008
Agenda
What is Smart Grid? Why is Smart Grid Happening? Utility Smart Grid Development, a Journey Investments in Smart Grids…Opportunities Questions
3 © Copyright IBM Corporation 2008
The most important commodity for a utility to manage, other than electricity, is information.
4 © Copyright IBM Corporation 2008
What is Smart Grid?
At the highest level it is about the transformation, modernization, automation and digitalization of the Electricity Supply Chain
It is the Trojan Horse for change, for achieving a 21st century intelligent electricity network needed to support and enable a 21st century growing economy in an ever competitive global market
The term "smart grid" refers to the use of advanced communications technologies and modern computing capabilities ..(engineering & materials as well).. to upgrade the electric power grid, effectively making it more intelligent, enabling it to operate more reliably and efficiently, and allowing customers enhanced support, opportunities, and direct involvement in controlling power consumption.
In the face of increasing electricity demands and concerns over the environment as well as problems with assuring operational efficiencies, smart grid technologies promise critical solutions for tackling national energy and environmental problems. For business and industry, smart grid solutions could be a boon
5 © Copyright IBM Corporation 2008
Smart Grid from an Information Perspective …Intelligent Utility Network
It is the continuous sensing, information network which overlays and connects together a utility’s equipment, devices, systems, customers, partners and employees. It enables ‘on-demand’ access to data & information which is used to better manage, automate & optimize operations and planning processes throughout the utility, throughout the electricity supply chain – for the customer’s benefit
6 © Copyright IBM Corporation 2008
The advancement of network automation, communications and information technologies is leading a transformation in the electricity supply chain
Central
Distributed
Impact:• Standards• Management• Communications• Security• Transparency • Scale• Price Performance
Networked
7 © Copyright IBM Corporation 2008
Why is Smart Grid happening?
Regulatory &Policy
Alternate Energy
Customer Demand
& Expectations
Financial Mkts Expectations
Aging Infrastructure
Energy / Fuel Competition & Cost
Security
Environment
Distributed Generation
Changing Workforce
8 © Copyright IBM Corporation 2008
Smart Grid is Global.. China ranks #1 in geographical breakdown of electric power T&D investment forecast 2005-2030
Source: International Energy Agency
China N. America Europe S. Asia E. Asia Africa S. America Other
Developed
Other
Frontier
Middle East Russia
Distribution Transmission
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
USD TR
While Chinese T&D infrastructure investment mainly focuses on new installations for power stations, substations, power grids, etc, European and US expenditure on T&D networks
Economies grow on the back of a reliable electricity supply chain
© Copyright IBM Corporation 200899
The Development of Smart Grid is a Journey
Smart Grid Maturity Level 1 & 2
Smart Grid Maturity Level 3
Smart Grid Maturity Level 4 & 5
As-Is To-Be/VisionIntermediate
DOMAIN SILOS INFORMATION SILOS
Vertical IntegrationMinimal Transverse Integration
DOMAIN TO DOMAIN INTEROPERABILITY
Vertical IntegrationTransverse Integration between DomainsHave to overcome adoption of emerging information standards & data access issues
ENTERPRISE INTEROPERABILITY
Open data access environmentInteroperability standardsUtility vendors on common standardsIntegration middleware is ‘Smart’ & services based
Strategic Business GoalsImprove Reliability Increase Customer Satisfaction
Increase Regulatory Capital Drive Sustainable Earnings
LAN
SensorsDigital Relays
Automated Substations LAN
SensorsDigital Relays
Automated Substations
Lines Substations
Mo
nito
r
Ma
nage
Mo
nito
r
Ma
nage
OptimizationBenefits
OptimizationBenefits
OptimizationBenefits
Customer. Meter
Equipment MonitoringEquipment Monitoring
Crews
Mo
nito
r
Ma
nage
Equipment
Customer Operations Grid Operations Work & Asset
Management
Strategic Business GoalsImprove Reliability Increase Customer Satisfaction
Increase Regulatory Capital Drive Sustainable Earnings
LAN
SensorsDigital Relays
Automated Substations LAN
SensorsDigital Relays
Automated Substations LAN
SensorsDigital Relays
Automated Substations LAN
SensorsDigital Relays
Automated Substations
Lines Substations
Mo
nito
r
Ma
nage
Mo
nito
r
Ma
nage
OptimizationBenefits
OptimizationBenefits
OptimizationBenefits
Customer. Meter
Equipment MonitoringEquipment MonitoringEquipment MonitoringEquipment Monitoring
Crews
Mo
nito
r
Ma
nage
Equipment
Customer Operations Grid Operations Work & Asset
Management
CustomerOperations
Work & AssetManagement
GridOperations
I nformationExchangeServices
CustomerOperations
Work & AssetManagement
GridOperations
I nformationExchangeServices
CustomerOperations
Grid Operations
Work & AssetManagement
Intelligent InformationExchange Services
CustomerOperations
Grid Operations
Work & AssetManagement
Intelligent InformationExchange Services
The potential value of the Information which Smart Grids can generate is being explored in pieces from the bottom up
© Copyright IBM Corporation 200810
Customer Operations
Grid Operations
Work & Asset Management
Field Measure/
Monitor
Optimize
Est
ima
ted
I
nfo
rma
tion
M
ea
sure
d
Analyze
Transport data to control
Collect
Field Measure/
Monitor
Optimize
Analyze
Transport data to control
Collect
Field Measure/
Monitor
Optimize
Analyze
Transport data to control
Collect
Ma
nu
al
Pro
cess
es
A
uto
ma
ted
SGMM L1/L2Invest in Domain
Infrastructure
SGMM L3 Domain to Domain Integration. Optimizing DomainsSGMM L0
Silos
Lim
ited
Co
mm
un
ica
tion
s
Wid
esp
rea
d
SGMM L3 SGMM L3
An
d/O
r
An
d/O
r
=>
SGMM L5 Innovating & Optimizing along the Supply Chain
The Smart Grid Vision. Interoperability & Information Exchange Animated
SGMM L4 Optimizing the Enterprise
Utility Information is being designed from the top downSGMM = Smart Grid Maturity Model
11 © 2008 IBM Corporation
Smart Grid Roadmap
Maturity Model
Component Business
Model
Smart GridDevelopment
Initiative A
SolutionMacroDesign
Smart Grid Roadmap
SolutionMicro
Design
Establish PMO
Solution Build &
Test
Solution Acceptance
& Pilot
Solution Deployment
& Rollout
Solution Operation & Maintenance
Initiative B
Initiative X
Strategic Roadmap
Proof of Concepts
Design Build Deploy RunInitiate Strategize Development Launch Smart Grid Initiatives
Establish & Maintain Governance Model
Iterative Process
Smart Grid Initiatives
12 © Copyright IBM Corporation 2008
InternetInternet
Smart metersSmart meters
Data & ProcessData & Process
ModellingModelling
Analytics toolsAnalytics tools
AutomationAutomation
Information & Information & Control Control systemssystems
IntegrationIntegration
EquipmentEquipment
Smart sensors Smart sensors
ICT networksICT networks MaterialsMaterials
Utilities are investing in many technologies….process automation, real-time monitoring & control systems etc to achieve greater reliability and efficiency…
Automation and
DigitalizationDistributed GenerationDistributed Generation
Energy StorageEnergy Storage
EV & HybridsEV & Hybrids
13 © Copyright IBM Corporation 2008
Developing the Customer Domain, Market Opportunity
Mobile Field Force
PremiseCustomer AMI Network
Meter Data Collection
Engine
Comm. Networks Services
IT Network Services
Communications, Firewall & Security Services
Demand Side Management Systems
Network
Customer Information
Systems
Meter Data Management
Systems
External Information
Systems
Business Intelligence/ Analytics
HR Management
Systems
Financial Management
Systems
Purchasing Inventory Systems
Customer Portal
Geographical Information Systems
Call Management
Systems
Account/Billing
Systems
Field Device Management Services
MRO Management Systems
Mobile Data Systems
Work Management Systems
Communications, Firewall & Security Services
Operations Frontline Systems
Operations Support Systems
Back Office Systems
Field Based Systems
Field Based Devices
Outage Management System
Mobile Field Force
Mobile Field Force
PremiseCustomer AMI Network
Meter Data Collection
Engine
Comm. Networks Services
IT Network Services
Communications, Firewall & Security Services
Demand Side Management Systems
Network
Customer Information
Systems
Meter Data Management
Systems
External Information
Systems
Business Intelligence/ Analytics
HR Management
Systems
Financial Management
Systems
Purchasing Inventory Systems
Customer Portal
Geographical Information Systems
Call Management
Systems
Account/Billing
Systems
Field Device Management Services
MRO Management Systems
Mobile Data Systems
Work Management Systems
Communications, Firewall & Security Services
Operations Frontline Systems
Operations Support Systems
Back Office Systems
Field Based Systems
Field Based Devices
Outage Management System
Meter Data Collection
Engine
Comm. Networks Services
IT Network Services
Communications, Firewall & Security Services
Demand Side Management Systems
Network
Customer Information
Systems
Meter Data Management
Systems
External Information
Systems
Business Intelligence/ Analytics
HR Management
Systems
Financial Management
Systems
Purchasing Inventory Systems
Customer Portal
Geographical Information Systems
Call Management
Systems
Account/Billing
Systems
Field Device Management Services
MRO Management Systems
Mobile Data Systems
Work Management Systems
Communications, Firewall & Security Services
Operations Frontline Systems
Operations Support Systems
Back Office Systems
Field Based Systems
Field Based Devices
Outage Management System
Mobile Field ForceDistributed Generation & Storage
Hybrid Vehicles
14 © Copyright IBM Corporation 2008
Developing the Grid Operations Domain, Market Opportunity
Communications Networks Services
IT Network Services
Meter Data Collection
Engine
Communications, Firewall & Security Services
PremiseCustomer AMI Network
Demand Side Management Systems
External Information Systems
Business Intelligence & Analytic Tools
Financial Management Systems
Purchasing Inventory Systems
Geographical Information Systems
Field Device Management Services
Operations Analysis Tools
Communications, Firewall & Security Services
Substation Devices Grid Devices
Transmission Management Systems
Outage Management System
Demand Side Management Systems
External Information Services
Business Intelligence/ Analytics
Financial Management Systems
Purchasing Inventory Systems
Geographical Information Systems
Distributed Generation
Operations Frontline Systems
Operations Support Systems
Back Office Systems
Field Based Systems
Field Based Devices
Network
Mobile Field Force
Mobile Data Systems
Work Management Systems
Firewall & Security Services
MRO Management Systems
Mobile Data Systems
Work Management Systems
Firewall & Security Services
Planning & Design Applications
Communications Networks Services
IT Network Services
Communications Networks Services
IT Network Services
Customer Information
Systems
Meter Data Management
Systems
HR Management Systems
Account/Billing
Systems
Customer Portal
Call Management
Systems
Distribution Management Systems
Distribution Management Systems
Smarter IT infrastructure needed to Smarter IT infrastructure needed to integrate systems, enable intelligence integrate systems, enable intelligence and manage different time scales, and manage different time scales, events, date models, events, date models,
Communications Networks Services
IT Network Services
Meter Data Collection
Engine
Communications, Firewall & Security Services
PremiseCustomer AMI Network
Demand Side Management Systems
External Information Systems
Business Intelligence & Analytic Tools
Financial Management Systems
Purchasing Inventory Systems
Geographical Information Systems
Field Device Management Services
Operations Analysis Tools
Communications, Firewall & Security Services
Substation Devices Grid Devices
Transmission Management Systems
Outage Management System
Demand Side Management Systems
External Information Services
Business Intelligence/ Analytics
Financial Management Systems
Purchasing Inventory Systems
Geographical Information Systems
Distributed Generation
Operations Frontline Systems
Operations Support Systems
Back Office Systems
Field Based Systems
Field Based Devices
Network
Mobile Field Force
Mobile Data Systems
Work Management Systems
Firewall & Security Services
MRO Management Systems
Mobile Data Systems
Work Management Systems
Firewall & Security Services
Planning & Design Applications
Communications Networks Services
IT Network Services
Communications Networks Services
IT Network Services
Customer Information
Systems
Meter Data Management
Systems
HR Management Systems
Account/Billing
Systems
Customer Portal
Call Management
Systems
Distribution Management Systems
Distribution Management Systems
Smarter IT infrastructure needed to Smarter IT infrastructure needed to integrate systems, enable intelligence integrate systems, enable intelligence and manage different time scales, and manage different time scales, events, date models, events, date models,
Distributed Generation & Storage
15 © Copyright IBM Corporation 2008
Developing the Work & Asset Domain, Market Opportunity
Communications Networks Services
IT Network Services
Communications Networks Services
IT Network Services
Communications Networks Services
IT Network Services
Mobile Data Systems
Work Management Systems
Mobile Data Systems
Work Management Systems
Operations Frontline Systems
Operations Support Systems
Back Office Systems
Field Based Systems
Field Based Devices
Communications, Firewall & Security Services
PremiseCustomer AMI Network
Demand Side Management Systems
External Information Systems
Business Intelligence & Analytic Tools
Financial Management Systems
Purchasing Inventory Systems
Geographical Information Systems
Field Device Management Services
Communications, Firewall & Security Services
Substation Devices Grid Devices
Transmission Management Systems
Demand Side Management Systems
External Information Systems
Business Intelligence & Analytic Tools
Financial Management Systems
Purchasing Inventory Systems
Geographical Information Systems
Distributed Generation
Mobile Data Systems
Field Device Management Services
Mobile Field ForceAssets
Work Management Systems
Network
External Information Services
Financial Management Systems
Purchasing Inventory Systems
Geographical Information Systems
Equipment MonitoringEquipment Monitoring
Assets
Firewall & Security ServicesFirewall & Security ServicesFirewall & Security Services
Asset Management Systems
MROManagement Systems
Communications Networks Services
IT Networks Services
Business Intelligence/ Analytics
Operations Analysis Tools
Planning & Design Applications
Equip Condition Monitoring
Customer Information
Systems
Meter Data Management
Systems
HR Management Systems
Account/Billing
Systems
Outage Management System
Meter Data Collection
Engine
Customer Portal
Call Management
Systems
Distribution Management Systems
Distribution Management Systems
A side note..Application Vendors are developing their own Smart Grid software roadmaps looking across the Utility enterprise as well.
Communications Networks Services
IT Network Services
Communications Networks Services
IT Network Services
Communications Networks Services
IT Network Services
Mobile Data Systems
Work Management Systems
Mobile Data Systems
Work Management Systems
Operations Frontline Systems
Operations Support Systems
Back Office Systems
Field Based Systems
Field Based Devices
Communications, Firewall & Security Services
PremiseCustomer AMI Network
Demand Side Management Systems
External Information Systems
Business Intelligence & Analytic Tools
Financial Management Systems
Purchasing Inventory Systems
Geographical Information Systems
Field Device Management Services
Communications, Firewall & Security Services
Substation Devices Grid Devices
Transmission Management Systems
Demand Side Management Systems
External Information Systems
Business Intelligence & Analytic Tools
Financial Management Systems
Purchasing Inventory Systems
Geographical Information Systems
Distributed Generation
Mobile Data Systems
Field Device Management Services
Mobile Field ForceAssets
Work Management Systems
Network
External Information Services
Financial Management Systems
Purchasing Inventory Systems
Geographical Information Systems
Equipment MonitoringEquipment MonitoringEquipment MonitoringEquipment Monitoring
Assets
Firewall & Security ServicesFirewall & Security ServicesFirewall & Security Services
Asset Management Systems
MROManagement Systems
Communications Networks Services
IT Networks Services
Business Intelligence/ Analytics
Operations Analysis Tools
Planning & Design Applications
Equip Condition Monitoring
Customer Information
Systems
Meter Data Management
Systems
HR Management Systems
Account/Billing
Systems
Outage Management System
Meter Data Collection
Engine
Customer Portal
Call Management
Systems
Distribution Management Systems
Distribution Management Systems
A side note..Application Vendors are developing their own Smart Grid software roadmaps looking across the Utility enterprise as well.
Distributed Generation & Storage
16 © 2008 IBM Corporation
Mobile Data SystemsMobile Data Systems
Operations Frontline Systems
Operations Support Systems
Back Office Systems
Field Based Systems
Field Based Devices
PremiseCustomer AMI Network
Demand Side Management Systems
IT Networks
External Information Systems
Financial Management Systems
Purchasing Inventory Systems
Field Device Management Services
Substation Devices Grid Devices
Transmission Management Systems
Demand Side Management Systems
External Information Systems
Financial Management Systems
Purchasing Inventory Systems
Mobile Data Systems
Field Device Management Services
Mobile Field ForceAssets
External Information Services
Financial Management Systems
Purchasing Inventory Systems
Equipment MonitoringEquipment Monitoring
Assets
Asset Management Systems
MROManagement Systems
Operations Analysis Tools
Planning & Design Applications
Communications Networks, Firewall & Security Services
Business Intelligence
Geographical Information Systems
Geographical Information Systems
Geographical Information Systems
Work Management Systems
Work Management Systems
Work Management Systems
Communications Networks Services
IT Network Services
Communications Networks Services
IT Network Services
Communications Networks Services
IT Network Services
Communications Networks Services
IT Networks Services
BI/AnalyticsFramework
Analytics Applications
Management Services
Utility Data Model Framework Outage
Management System
Customer Information
Systems
Meter Data Management
Systems
HR Management Systems
Account/Billing
Systems
Equip Condition Monitoring
Meter Data Collection
Engine
Customer Portal
Call Management
Systems
Distribution Management Systems
Distribution Management Systems
Optimizing the Utility, Optimizing the Electricity Supply Chain New Business Models, New Products, New Offerings
Common infrastructure: Communications, IT, Security, Standards, BI/Analytics Framework, Network Common infrastructure: Communications, IT, Security, Standards, BI/Analytics Framework, Network Monitoring, Applications, Data sources, Data models, Services, Tools, timing, portalsMonitoring, Applications, Data sources, Data models, Services, Tools, timing, portals
Account for Geospatial Distribution, Time Scale Distribution, Intelligence DistributionAccount for Geospatial Distribution, Time Scale Distribution, Intelligence Distribution
Distributed Generation & Storage
17 © 2008 IBM Corporation
Conclusions
Smart Grid is the Transformation of the Electric Utility Industry and Electricity Supply Chain
Electricity is a precious commodity which has been taken for granted in the US
Alignment of Drivers …Social, Economic, Competitive and Technical
There are opportunities all along Smart Grid development journey
‘Do nothing’ is not an option
18 © Copyright IBM Corporation 2008
Thank You & Questions
Information is Power
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