Trends in the water industry Towards a Smart Water Network Agenda 1. Market Context 2. Smart Water Networks 3. Some Examples 4. The Road Ahead 5. Conclusions Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 2 Why are we here today? Regulation compliance Accurate planning Reduce leakages Reduce GHG emissions Increase distribution efficiency Replace/upgrade infrastructures Energy optimization Develop new source water supply Retain workforce knowledge Ensure infrastructure security Reduce operational costs Etc…. Increase customer satisfaction Improved decision making Main Drivers Ensure water supply Ensure water quality Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 Ensure water efficiency Ensure business efficiency 3 Context: ●The total energy consumption of US water utilities is estimated to be 56 billion kWh equating to $4 billion annually in OPEX (EPA) ●Between 5-10 billion Kw/h of power generated in the US is spent in water that is either leaked or not paid for by customers (AwwA) ●In developing countries, about 45 million cubic meters are lost daily through water leakage in the distribution networks —enough to serve nearly 200 million people (WB). ●Energy prices increase at a faster rate than water tariffs meaning reduced margins for water utilities. ●Etc… Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 4 The case for Water Energy represents a significant cost component for water plant operators OPEX of the total operating cost is Energy (mostly electricity) Energy savings provide a real cost saving opportunity In an environment of rising costs but steady water prices, Energy savings become a MUST Source: Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 5 Improving efficiency ↑ CAPEX for improving efficiency: i.e. pipe replacement, installation of VSP,… Fine, but: • High amounts • Budgetary constraints • Approval periods • Implementation periods Current IT capacity is not used at a 100% • Projects are not aligned • Data silos Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 • Not getting the best out of the investments 6 Smart Water Networks – Business Rationale ● General Context: Water utilities must maintain / improve supply & quality efficiency and achieve business’ profitability while facing and promoting a reduction in the overall water consumption and assuming fixed, low water prices. ● General Solution: Mitigation of operational expenditures through improved efficiency levels in their key processes. ● Smart water networks solutions’ contribution: Constant improvements in technology allow faster and better data analysis that can turn into a reduction of operational costs and improved efficiency (vs. traditional CAPEX approach) Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 7 Agenda 1. Market Context 2. Smart Water Networks 3. Some Examples 4. The Road Ahead 5. Conclusions Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 8 Smart Water Networks Smart Water Networks solutions improve the efficiency, longevity, and reliability of the underlying physical water network by better measuring, collecting, analyzing, and acting upon a wide range of network events. Source: SWAN – Smart Water Networks Forum (www.swan-forum.com) Use of information technology to optimize the utility’s capacity at a minimum CAPEX cost Data Information Decisions Actions More Better Accurate Smarter SWN Solutions Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 9 What? Integration Approach Integrating third-party software products with self-developed tools for complex architectures Decision Support Presentation Layer and CRMweb / Billing CIS Mobile Apps CIS / CRM ERP Executive Reports Business Analysis GIS Cybersecurity Data Warehouse EBS- Enterprise Integration Bus WMS DMS SCADA MES MDM Distributed Digital IP Communications Network Real Time Integration Bus Critical Tasks Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 AMI Meters Feder Devices IT Management (One Stop Shop) Enterprise SUB Devices 10 What ? Water Smart Water Network Water EAM GIS Vertical Solutions CMMS Asset Management WOM Workforce Management DMS CIS Customer Portal WMS Energy Optimization Leackage Management Water Quality Resources Management CRM/BIlling MDM Hidraulic Models SCADA AMI ESB Enterprise Service Bus Cross Solutions IT Services Infrastructure &Equipment ERP Supply Change & Procurement Financial Management HumanResources Facilities Management Hosting RTUs Cloud Services DWH Analytics Big Data Business Intelligence IT Monitoring and Administration Protection & Measurements IT Consulting Cybersecurity Electrical Equipment Primary and Secondary MV Switchgear, Overhead Reclosers and Sectionalizers Mobility Operation Substation Automation Service Desk Power Quality Weather Forecasting SaaS Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 Energy Efficient Management 11 SWN - Fundamentals ●Smart Water Network’s fundamentals - The 3 I’s: ●Information: Realizing the full potential – Use information that you might not even know you have ●Integration: Make the best out of current investments - SWN are able to make the best of the current IT installed base ●Innovation: The constant future – Flexibility to take over the utility’s challenges as they come. Phase 1 Information Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 Fase 2 Integración Fase 3 Innovación 12 Benefits (or what you might be missing) ●Operational ●More information for carrying out O&M activities ●More accurate information for carrying out O&M activities ●New functionalities not available otherwise ●Optimization of the existing infrastructure and resources • Business – Improved decision making – Streamlining OPEX and reduction / better planning of CAPEX needs – Better ROI (existing investments) Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 13 Agenda 1. Market Context 2. Smart Water Networks 3. Some Examples 4. The Road Ahead 5. Conclusions Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 14 Example 1 – Belo Horizonte - Brazil - Utility Name: Copasa - 12.1 million people served (3.1 Belo Horizonte) - Improved response on outage events - Over 25000 miles of distribution pipes - (↓14% outage times) SCADA Maintenance - Improved maintenance policies - (↓33% repair times) Operational data Maintenance Data Real time data Simulated data Predicted data GIS Hydraulic Model Geodata Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 - Improved network control - Improved planning - Improved public image - Increased ROI on all these investments 15 Example 2 – Madrid - Spain - Utility Name : Canal Isabel II - 6 million people served - Over 9 000 miles of distribution pipes SCADA Maintenance Work Order - Improved planning - Company wide automated business rules Alarms Maintenance Data Real time data + Simulated data Hydraulic Model - Improved network control GIS - Improved Maintenance Policies - Improved service levels - Improved ROI on all these investments Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 16 Information’s Islands ● Company: Anglian Water (UK) ● Strict regulation ● Bigger company in UK ● 6% waterloss ● 4.3 millions of clients ● 112.833 km pipeline ● Maintenance minimal losses Corporate Business Intelligence Customer Information Systems GIS ● Reduce fines WMS Maintenance Systems Hydraulic Models ERP ● Ofwat report SCADA Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 - Severn Trent: 35.8M£ - Thames Water: 9.7M£ OFWAT 17 The best ROI ● Company: Kahramaa (QT) ● 1.4 mill. clients ● 2500 km pipeline ● 100% desalation water ● NRW initial 57% ● Target: Water all day 7x24 ● Production 360 Mm3/year Services + Technology = ↓NRW more than 50% ● 2320 olympic pool / year ● 50% plant production ● More Eficiency Company in GCC Ahorro 14M€/año = 57M€ durante el proyecto Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 18 Agenda 1. Market Context 2. Smart Water Networks 3. Some Examples 4. The Road Ahead 5. Conclusions Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 19 The Road Ahead ●Standards – Avoiding technical double-dutch ●Talent management – Vision, direction, leaders ●Data ownership – Break the data silos ●Fuel innovation Global Institutional Venture capital ($) Smart Water 2% Smart Grid 41% Smart Buildings 17% Smart Transportation 22% Smart Industrial 17% Source: Cleantech Group Data and Analysis Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 20 Agenda 1. Market Context 2. Smart Water Networks 3. Some Examples 4. The Road Ahead 5. Conclusions Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 21 Conclusions ●SWN = Reducing OPEX through IT (it´s all about data) ●Remember the 3 I’s: Existing + New = Great ROI ●Operational and business management oriented benefits ●You will get benefits and features not available otherwise ●There are challenges, but it is worth to work them out ●You will get better ROI of your investments in IT Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 22 Let’s get smart because… …there is no substitute for water Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 23 Schneider Electric - PlantStruxure NOW! – Jokin Larrauri – 26/10/2011 24