IBM Software Group, Industry Solutions April 2013 Fixing the future: Why we need smarter water management for the world’s most essential resource © 2013 IBM Corporation Water is our most essential resource Water is a resource for which there is no alternative The Water Nexus Transport Health Energy Water Food Production of other goods and services Source: Center for Economic Analysis, IBM Institute for Business Value 2 April 15, 2013 © 2013 IBM Corporation Water is our most essential resource Water has a direct impact on health and is a critical enabler for development Water and Human Development 2011 Access to safe drinking water is critical for health, especially for children 1.0 Poor quality water can make workers unproductive and take them out of the workforce altogether 0.8 80% of diseases in developing countries are attributed to poor quality water Water is the elixir of life Human Development Index Over 50% of the world’s hospital beds are occupied by people suffering from water related diseases 0.9 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 — Atharvaveda, 2000 BC Source: UN Human Development Report and World Bank World Development Indicators database Note: Human Development Index is 2011 data and water series is latest available data, generally 2010 3 April 15, 2013 R2 = 0.65 30 40 50 60 70 80 90 100 % of population with access to improved source of water © 2013 IBM Corporation Water is our most essential resource Water is key for food production Water is a key driver of agricultural production affecting yields and crop failure 2000-5,000 liters water needed to produce a person’s daily food Irrigated agriculture accounts for 80% of global water use and 40% of world’s food production Water Water scarcity will be the major constraint on food production in the next few decades Food Food production will need to increase by 70% by 2050, impacting demand for water Demand for irrigation and use of agrichemicals is a major source of water pollution Source: FAO; Foresight. The future of Food & Farming (2011); UN Water 4 April 15, 2013 © 2013 IBM Corporation Water is our most essential resource Our energy system is heavily reliant on water and also has an impact on our water system Energy production accounts for 49% of total water use in the US and 44% in the EU Energy production growth is expected to require 165% increase in water use between 2000 and 2025 in the US Water consumption for energy production will increase 130% in the EU between 2000 and 2030 US oil and gas industry produces 60m barrels of wastewater daily Each year 260,000 barrels of oil spill into the Niger Delta Water Energy Drought in the US led in 2012 led to price increases for electric power in California Central and South China experienced power shortages due to severe drought in 2011 Impact on water quality from hydraulic fracturing– ‘fracking’- has led to its ban in many areas including parts of the US, South Africa and Australia Source: USGS; European Environmental Agency 2009; World Economic Forum 2009; Huffington Post 2012; The New York Times 2010; Mother Nature Network 2012; Reuters 2011; Petroleum Economist 2011; China Daily 2011; The New York Times 2012 5 April 15, 2013 © 2013 IBM Corporation Intensifying global water vulnerabilities The global water system is facing several interrelated challenges that lead to critical vulnerabilities Water Stress Water resources worldwide are diminishing while demand for those resources is increasing Workforce Shortage of workers with the right industry skills Infrastructure Water infrastructure is inadequate and ageing Quality Flooding Water quality globally is declining Frequency and intensity of flooding are increasing Source: IBV Analysis 6 April 15, 2013 © 2013 IBM Corporation Intensifying global water vulnerabilities More intense and frequent floods result in significant human and financial costs Mozambique, 2000 223,000 people affected Cost: US$419m 1980-2012 India, 2005 Pakistan, 2010 20 million people affected Cost: US$3.3bn 20 million affected Cost: US$43bn 2002 2000 Central Europe, 2002 450,000 people affected Cost: US$14.9bn 2007 2005 United Kingdom, 2007 55,000 homes and businesses flooded Cost: US$6.5bn 2011 4,000 flood disasters globally 3.5 billion people affected 6.9 million people killed US$559 billion of damage Over half of developing countries’ population will be highly vulnerable to floods and storms 33% increase in population globally at risk of flooding from 1.2bn to 1.6bn 2070 2012 2025 2010 2050 Italy, 2011 20 died in Liguria River Po rose 4m EU funds €17m China, 2012 800,000 people displaced after flooding in wake of post powerful typhoon in 60 years Population in 136 big port cities expected to grow 300% and value of flood-exposed economic assets in these cities could reach 9% of global GDP Source: International Recovery Platform, Humanitarian Futures Programme 2005, Risk Management Solutions 2003, UK Environment Agency 2007, Reliefweb 2009, 2010, China State Flood Control and Drought Relief Headquarters 2011, EM-DAT 7 April 15, 2013 © 2013 IBM Corporation Intensifying global water vulnerabilities Problems with water quality and wastewater are worsening. 2m tons 783m 638% Sewage and industrial and agricultural waste are discharged into the world’s water daily Number of people globally that do not have access to improved sources of drinking water Growth in number of people using bottled water in urban areas to meet drinking water needs, from 26m in 1990 to 192m in 2010 Sewage levels in rivers in the US could be back to the super-polluted levels of the 1970s by the year 2016 With population growth, the number of people without access to safe water expected to rise to 2 billion by 2025 By 2050, nearly 70% of the world’s population is expected to live in urban areas, magnifying existing challenges managing water and wastewater Source: The United Nations World Water Development Report 2003; UNICEF and WHO 2012; Reddy, K 2008; OCHA Occasional Policy Briefing Series – No. 4 2010; OECD 2012 8 April 15, 2013 © 2013 IBM Corporation Sustainable growth through smarter water management A new approach is needed to more effectively deal with the challenges in our water system To deal with…. We need to more effectively…… So we can…… Water Stress Improve supply and demand management Reduce the gap between demand and supply Infrastructure Improve asset and network management Improve delivery and efficiency, reduce maintenance cost Floods Analyze and predict flooding Improve preparedness and response, mitigate cost Quality Monitor and control pollution Improve and maintain quality, reduce pollution Workforce Develop and maintain corporate memory Preserve organizational knowledge and improve attractiveness of industry Source: IBM 9 April 15, 2013 © 2013 IBM Corporation IBM’s Intelligent Operations for Water provides an open unifying platform for harnessing data and advance analytics to deliver richer insights at multiple scales • Leverage real-time visibility of across systems to optimize cost efficiencies • Anticipate and proactively manage problems to mitigate impact to services and citizens • Coordinate cross-agency operations with business and citizen participation to drive economic prosperity and enhance citizen involvement One platform, many use cases • Organization-wide dashboards • Domain analytics • Event and KPI management • Geospatial mapping • Data modeling and integration • Simulation and visualization • Cross-department collaboration • Situational awareness • Incident management • Alerts and directives …within a particular service area area or …start within a particular service managing across across many services or manage services © 2013 IBM Corporation IBM Intelligent Operations for Water (IOW) helps make water & wastewater operations more efficient, proactive, & customer centric Improve revenue Reduce cost Mitigate risk Water & Wastewater Operations (Source to Discharge) Water Infrastructure, Assets Weather & External data Coordinated Response – Flooding, Pipe Burst Customer Service, CRM Real time situational awareness of operations Rich out of the box industry content (3 KPIs w/drill down, water icons & system maps, pre-loaded sample data & asset types On-prem and Cloud delivery Targeted at Public AND Private water operations, Industrial users Financial Return Waste Water: Avoid / mitigate combined sewer overflows (CSOs) and basement flooding with real time information and performance monitoring of wastewater systems Water Conservation / Irrigation: Reduce / better manage Golf Courses and large farms’ water consumption through smarter irrigation and operational awareness Flood Management: Mitigate and manage potential urban flooding, large disruptions through analysis, correlation of data and automated workflows Water Quality management: Manage water quality events and better comply with regulations Water Usage management: Oil & Gas companies better manage water & wastewater operations and regulatory © 2013compliance IBM Corporation Sustainable growth through smarter water management Smarter water management enables users to more effectively manage demand and helps utilities better manage supplies Water Stress Data Data on water demand and supply collected from sensors and smart meter systems across industrial or utilities’ networks Analysis Real-time data analysis and data visualization generates insight on water consumption behavior and supply conditions Decisions More effectively manage demand by users and more effectively control supply through better storage, treatment and distribution Co-ordination Enables improved collaboration across multiple stakeholders by enabling stakeholders to access and share data on a single platform Source: IBM 12 April 15, 2013 © 2013 IBM Corporation Sustainable growth through smarter water management Dubuque, Iowa improves water conservation with a smarter system that provides deep insight on water consumption trends Capabilities Real-time platform monitors water consumption every 15 minutes Securely transmits anonymous data to the cloud where it analyzed with weather and other data Quickly and automatically notifies households of potential leaks and anomalies Water usage information expressed in $, gallon and carbon savings Insight into water consumption trends for citizens, city policy makers and the city water department Benefits Decreased water utilization by 6.6% during pilot Anticipated annual savings over 23,000 households of 64.9m gallons Increased water leak detection of 8% compared to 0.98% citywide, a 716% increase “….Our citizens now have access to real-time data enabling them to alter their patterns of behavior, which will save them money and conserve a precious resource.” — Roy D. Buol, Mayor of Dubuque Source: IBM 13 April 15, 2013 © 2013 IBM Corporation Water Conservation and Energy Conservation Portals Helped Citizens Save 7.3% on energy consumption Helped Citizens Save 6.6% and report leaks 8x better 8 © 2013 IBM Corporation Mayor’s Dashboard based on Citizen Input 8 © 2013 IBM Corporation Sustainable growth through smarter water management Sonoma County uses smarter water management to increase water use efficiency and more effectively manage supplies Capabilities Benefits Near real-time common operating picture More informed decisions about storage, treatment and distribution of water Data from meters in distribution network and customer plant sites is aggregated with third-party data Support routine decision making to increase water use efficiency and energy efficiency Data is analyzed, visualized and presented in a management portal, creating geospatial intelligence Proactively avoid mismanagement and plan for day-to-day use, as well as minimize the effects of seasonal droughts and floods Allows all stakeholders to share and access information Helps SCWA and its retail water customers collaborate and cooperate to more effectively manage water supply “By effectively managing every drop of water in our system we can ensure that we can meet the needs of people, the environment and the community” — SCWA Chief Engineer Jay Jasperse Source: IBM 16 April 15, 2013 © 2013 IBM Corporation Sustainable growth through smarter water management Smarter water management improves preparedness and response to flooding Flooding Data Real-time data from river systems, sensors and weather is aggregated and combined with historical data to give a unified view of the physical infrastructure Analysis Analytics and advanced weather simulation models used to monitor and predict water flows and floods and pinpointing potential flood Decisions More effective decisions on emergency and disaster response; better investment decisions by identifying weak points of existing infrastructure or where new infrastructure is needed Co-ordination Supports improved co-ordination of emergency and disaster response to more effectively manage and respond to risks Source: IBM 17 April 15, 2013 © 2013 IBM Corporation Sustainable growth through smarter water management Rio de Janeiro uses analytics to predict, alert and reduce the impact of flooding Capabilities Benefits Implementation of a high-resolution weather forecasting and hydrological modeling system Predict heavy rains up to 48 hours in advance Applies analytical models to more effectively predict and coordinate reaction to emergency incidents Speeds public alerts and warning systems about potential floods and landslides Integrates information and processes from across 30 different city agencies Single operations center that provides a holistic view of how the city is functioning Drastically reduces the reaction times to emergency situations “In Rio de Janeiro, we are applying technology to benefit the population and effectively transitioning to a smarter city.” — Mayor of Rio de Janeiro Eduardo Paes Source: IBM 18 April 15, 2013 © 2013 IBM Corporation Sustainable growth through smarter water management South Bend, Indiana, is the world’s first city to monitor and control its sewage system and stormwater in the cloud Capabilities Network of sensors measures and communicates the depth and flow of storm water in near-real-time Data is aggregated to monitor, control and more effectively manage capabilities using technology hosted on the cloud Delivers a unified view of the physical infrastructure Benefits Cuts wet weather overflows by 23% and dry weather overflows from 27 per year to 1 Gains an extra 10 million gallons of capacity in its water system Avoids US$120 million in infrastructure investments plus more than US$600,000 in potential government fines Enables easier, faster procurement from operational budget rather than funding infrastructure from capital budgets "Anticipating and preventing incidents before they happen is key. Viewing all our aggregated data in real-time…..will help us predict where incidents can occur and safeguard our citizens.” — Gary Gilot, Member, Board of Public Works, City of South Bend Source: IBM 19 April 15, 2013 © 2013 IBM Corporation WATERGRID Project – three year project in Italy through end of 2014 Project for the research & implementation of innovation in water distribution. The project is aimed to optimize water distribution grids (leaks, energy costs) by – Software tools for grid modeling, calibration, optimization and simulation – Constant real-time collection of physical & chemical parameters – Central management system for real time grid monitoring and remote operations – Automated remote reading of water meters in support of the above goals – Energy saving via Project assets: – Grid modeling, optimization and simulation (GMOS) – Grid centralized automation and control (GCAM) – Grid advanced analytic and reporting (GAAR) Four project partners: ■ Ministero Italiano Università e Ricerca ■ Azienda Risorse Idriche Napoli Utility managing water distribution in the Naples metropolitan area ■ ■ 20 Università di Napoli – Federico II Dipartimento di Ingegneria Idraulica, Geotecnica e Ambientale IBM Industry Solutions Lab – Rome IBM Italy Rome Smart Solutions Lab (RSSL) marcello.vitaletti@it.ibm.com © 2013 IBM Corporation WATERGRID Project - Vision of the overall system Analysis Tools Central Management System Visualization Modeling Optimization Simulation IBM RSSL Extensions IBM Intelligent Water Management Meter Mgmt System Collected Meter Data IBM Meter Data Source IBM Field Data Sources EPANET Hydraulic Simulation Engine 3rd Party Meter Head-End (DCS) 1st Level - 3rd Party SCADA Field Programmable Devices Wireless Infrastructure Water Meters Sensors, Actuators 21 IBM Italy Rome Smart Solutions Lab (RSSL) marcello.vitaletti@it.ibm.com © 2013 IBM Corporation Sustainable growth through smarter water management Smarter water management enhances the ability of utilities and industrial users to monitor and control water quality Water Quality Data Analysis Decisions Co-ordination Network of sensors and instrumentation across industrial or utilities’ networks collects data on water quality Analysis of real-time data through data visualization and scenario simulation tools enhances monitoring of water quality Detect and pin-point issues for more effective and rapid response to quality problems Enables improved collaboration across multiple stakeholders by enabling stakeholders to access and share data on a single platform Source: IBM 22 April 15, 2013 © 2013 IBM Corporation Sustainable growth through smarter water management A Canadian Environmental Health Ministry used smarter systems to proactively enhance water quality Capabilities Geospatial view of water resources and management systems in real time Analyzes and visually pin-point any issues with water quality, delivers automated alerts Supports rapid response to prevent water contamination while providing insights for longterm planning Creates a single source for information about water systems and treatment facilities for hundreds of communities Benefits Reduced the disease outbreaks due to waterborne contaminates by 100% since 2009 Met or exceeded every water quality regulation since 2009 Provides citizens with public access to water management data for the first time “We are responsible for managing a watershed and the water quality of 410,000 square miles of land. This solution pinpoints any vulnerabilities to prevent any contamination of the water supply” — Canadian Environmental Ministry representative Source: IBM 23 April 15, 2013 © 2013 IBM Corporation