Dealing with Large Scale Power EmergenciesApplying The Lessons Learnt From Global Case Studies In The South African Context
Shamal Sivasanker
AMEU Conference 2007
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Conservative Estimation of affected customers: 500 million people affected since turn of the centuryDemand growth: 18.5% growth in energy consumption since 2000
Source: EIA
The world as viewed from above
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What has been driving this growing trend on a global basis?
• Growing industrial and residential demand• China & India economic growth• Pressures on primary energy – fragility of supply lines
• Growing industrial and residential demand• China & India economic growth• Pressures on primary energy – fragility of supply lines
• Impacts of natural weather e.g. Hurricanes, Tsunamis, effects of changing weather conditions
• Impacts of natural weather e.g. Hurricanes, Tsunamis, effects of changing weather conditions
• Skilled labour is a shortage in the Global Industry – leading to constraints in operating
• Skilled labour is a shortage in the Global Industry – leading to constraints in operating
• Ailing infrastructure across the globe• Lack of investment in terms of refurbishment and replacement – particularly in T & D infrastructure
• Ailing infrastructure across the globe• Lack of investment in terms of refurbishment and replacement – particularly in T & D infrastructure
DemandDemand
NaturalPhenomenon
NaturalPhenomenon
Human induced outages
Human induced outages
Ageing NetworksAgeing
Networks
Managing these issues develops more complexity
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Throughout history, events have driven change . . .
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… 2003 was driven by three such events . . .
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Eastern US - August 2003
SituationSituation Root CausesRoot Causes
• Poor forecasting
• Lack of awareness
• Poor vegetation management
• Poor real-time support
• Poor forecasting
• Lack of awareness
• Poor vegetation management
• Poor real-time support
• Hot Summer
• Equipment out for repairs
• System close to limit
• Lack of dynamic reserves
• Hot Summer
• Equipment out for repairs
• System close to limit
• Lack of dynamic reserves
RecommendationsRecommendations Lessons LearntLessons Learnt
• Non-compliance Fragility of system
• Poor operation and communication processes
• Lack of stakeholder involvement
• Non-compliance Fragility of system
• Poor operation and communication processes
• Lack of stakeholder involvement
• Strengthen compliance through audits
• Evaluate vegetation management
• Clarify stakeholder role• Improve staff training• Enhance system tools
• Strengthen compliance through audits
• Evaluate vegetation management
• Clarify stakeholder role• Improve staff training• Enhance system tools
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London 2003
SituationSituation Root CausesRoot Causes
• Misinterpretation of alarm
• Switching out of SGT3 left
power supply to single circuit
• Circuit breakers at single
circuit tripped
• Misinterpretation of alarm
• Switching out of SGT3 left
power supply to single circuit
• Circuit breakers at single
circuit tripped
• Reuse of equipment
• Installation of wrong
equipment
• Faults and oil leaks caused
maintenance rescheduling
• Planned outages
• Reuse of equipment
• Installation of wrong
equipment
• Faults and oil leaks caused
maintenance rescheduling
• Planned outages
RecommendationsRecommendations Lessons LearntLessons Learnt
• Increased stakeholder involvement
• Investigation of equipment installation
• NGC review ops procedures• Ofgem penalty for incidents
• Increased stakeholder involvement
• Investigation of equipment installation
• NGC review ops procedures• Ofgem penalty for incidents
• Human error from relays increasing worldwide
• NGC & contractors made errors in scheme delivery
• NGC practices not rigidly enforced
• Human error from relays increasing worldwide
• NGC & contractors made errors in scheme delivery
• NGC practices not rigidly enforced
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Italy 2003
SituationSituation Root CausesRoot Causes
• Poor vegetation management
• Inability to re-close line
• Lack of urgency
• Angle instability and voltage
collapse
• Poor vegetation management
• Inability to re-close line
• Lack of urgency
• Angle instability and voltage
collapse
• 15 highly heavily loaded lines
on Italy North border
• Italy’s 6400MW import
increased by 200 – 300 MW
• Swiss grid also under
pressure
• 15 highly heavily loaded lines
on Italy North border
• Italy’s 6400MW import
increased by 200 – 300 MW
• Swiss grid also under
pressure
RecommendationsRecommendations Lessons LearntLessons Learnt
• Inter-TSO cooperation• UCTE Operation handbook
and DACF review• Evaluation of tree trimming• NGC to enforce min reqs.• Investment in transmission
• Inter-TSO cooperation• UCTE Operation handbook
and DACF review• Evaluation of tree trimming• NGC to enforce min reqs.• Investment in transmission
• System was close to limits• Blackout triggered in
Switzerland• Human, technical and org
factors prevented quick system restoration
• System was close to limits• Blackout triggered in
Switzerland• Human, technical and org
factors prevented quick system restoration
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So what where the common issues?
• Re-use of old equipment (resulting in fragile systems)• Neglect of current equipment (resulting in fragile systems)• Poor vegetation management• Lack of real-time reporting equipment
• Re-use of old equipment (resulting in fragile systems)• Neglect of current equipment (resulting in fragile systems)• Poor vegetation management• Lack of real-time reporting equipment
Infrastructure and InvestmentInfrastructure
and Investment
• Non-compliance with guidelines, regulations and standards• Lack of agreed upon standards in some cases• No collaboration between parties in pursuit of common purpose• Poor role definition of stakeholders
• Non-compliance with guidelines, regulations and standards• Lack of agreed upon standards in some cases• No collaboration between parties in pursuit of common purpose• Poor role definition of stakeholders
Stakeholder InvolvementStakeholder Involvement
• Seasonal affect on demand of energy (causing record peaks)• Causes damage and deteriorates equipment
• Seasonal affect on demand of energy (causing record peaks)• Causes damage and deteriorates equipmentWeather AffectWeather Affect
• Insufficient training (resulting in mistakes in operating equipment and misinterpretations of situations)
• Lack of skilled and experienced operators
• Insufficient training (resulting in mistakes in operating equipment and misinterpretations of situations)
• Lack of skilled and experienced operatorsHuman ErrorHuman Error
• Grids were operated at levels close to critical levels in every case• Operational procedures in emergency situations inadequate
• Grids were operated at levels close to critical levels in every case• Operational procedures in emergency situations inadequate
Operations and Processes Laid out by Relevant
Bodies
Operations and Processes Laid out by Relevant
Bodies
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So how did the Electricity Industry respond, and what were the lessons learnt?
Risk Risk ManagementManagement
Preparedness Risk
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Build AgilityAgility into the business to respond to an emergency
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Building AgilityAgility in Utilities to ensure effective response
BusinessContinuity
Management
BusinessContinuity
Management
Clearly Defined
Governance
Clearly Defined
Governance
StreamlinedEmergency
Management Processes
StreamlinedEmergency
Management Processes
The SA ContextThe SA Context
• Closer integration and collaboration
in the industry
• Processes that extend across
boundaries
• Governance that is clearly defined in
the case of emergencies
• Pre-defined protocols
• Building in organisation flexibility
and adaptive capacity
Practices
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Having the ability to Sense and ForewarnSense and Forewarn
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Sensing and ForewarningSensing and Forewarning Mechanisms help Focus & Prepare the Organisation
Dynamic risk management attempts to improve the ability of organisations to predict unknown future risks that could impact on the business, its’
performance and stakeholders using concepts such as sensitivity analysis
Dynamic risk management attempts to improve the ability of organisations to predict unknown future risks that could impact on the business, its’
performance and stakeholders using concepts such as sensitivity analysis
Source: Deloitte’s Risk Intelligent Enterprise Model
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Preparing for Strategic and Operational ResponseStrategic and Operational Response
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“We believe that much of the strength and resilience evident in our organization is an outcome of continued investment in our infrastructure and our people, preparedness planning and ongoing efforts to manage risk. We also believe our pursuit of sustainable development over the past five years made us significantly stronger and more resilient.”Source: Entergy Resilience & Renewal, Sustainable Development Report 2005
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Preparing for Strategic and Operational ResponseStrategic and Operational Response
ScenarioPlanningScenarioPlanning
PreparednessExercises
& Indicators
PreparednessExercises
& Indicators
StandardisedEmergencyResponse
Plans
StandardisedEmergencyResponse
Plans
The SA ContextThe SA Context
• Identification of strategic risks
• Integrated forums with key
stakeholder groups to establish
business continuity plans
• Integration with National Disaster
Recovery
• Establishment of a command
centre(s)
• Running preparedness simulation
exercises to create awareness and
help check level of readiness.
Practices
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Strategic Management Strategic Management of Stakeholders
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Strategic Management Strategic Management of Stakeholders
Be VisibleBe Visible
Communicate Frequently
Communicate Frequently
Don't Hide The Bad News
Don't Hide The Bad News
The SA ContextThe SA Context
• Different stakeholders need
different approaches
• Deal with the facts
• Ongoing interaction with
stakeholders on the Electricity
issues
• Address your stakeholder concerns
• Win them over!
Practices
AddressPerception Vs. Reality
AddressPerception Vs. Reality
BeEmpathetic
BeEmpathetic
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Emergencies such as these re-define the Political Landscape
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Building Organisational ResilienceOrganisational Resilience
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Toward Enterprise Resiliency: Develop a predictive model that will enable a company to preemptively recognize and successfully respond to a threat before it becomes a crisis
Result: the company becomes a leading-edge resilient organization prepared for and adaptive to counter any eventuality by incorporating a robust threat detection and prioritization, and resource mobilization techniques.
Infinite EventsInfinite Events
FiniteInternal
& ExternalImpacts
FiniteInternal
& ExternalImpacts
EffectsEffects
People
Process
Technology
Infrastructure
Partners
Market
Economic
People
Process
Technology
Infrastructure
Partners
Market
Economic
Resiliency PlanningResiliency Planning
Prioritized Ranking of
Threats
Review of Existing Plans
Threat Reduction Controls
Gap Analysis
Development & Testing of
Resiliency Plans
Prioritized Ranking of
Threats
Review of Existing Plans
Threat Reduction Controls
Gap Analysis
Development & Testing of
Resiliency Plans
Physical, Personnel, Information, Reputation, Participants, Economic,
Public and Private Infrastructure Impacts
Physical, Personnel, Information, Reputation, Participants, Economic,
Public and Private Infrastructure Impacts
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Drive a collective accountability for the issues and ensure that we are psychologically prepared to operate in a tight environment . . .
Source: Brian Lapin
Psychological Security
High
High
Resilience Culture
Scapegoating & Finger pointing
Low
Disasters waiting to happen
Paralysis & FearAc
co
un
tab
ility
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An integrated Emergency Management Model for the Electricity Industry to drive higher collective responsibility
DPLGDPE DME
ESKOM MUNICS
National DisasterRecovery
Collaboration on:-• Scenario Planning and Macro risk factors• World Cup 2010 Readiness• Integration on load shedding• Joint Emergency Preparedness Simulations• Consistent and focussed approach to stakeholder management
Local GovernmentDRC
ERCCRJCC
Customers, Stakeholders
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“Want of foresight, unwillingness to act when action would be simple and effective, lack of clear thinking, confusion of counsel until the emergency comes, until self-preservation strikes its jarring gong – these are the features which constitute the endless repetition of history.”
Sir Winston Churchill
Phezu Komkhono
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