IBM Energy & Utilities
Global Smart Grid: Projects and Best Practice
Matt Futch, Global Policy Director, IBM Energy & Utilities
© 2012 IBM Corporation
Smarter Energy
and Utilities
Transforming the Business Model
1
© 2012 IBM Corporation
The transformation provides tremendous opportunities
Reduction in peak
loads
Increasing demand
Changing
generation mix
15%
53%
50%
when consumers were
offered the opportunity to
save an average of 10%
on their electric bills
projected growth in worldwide
energy demand by 2035
of new capacity is expected
to be from renewable energy
sources; by 2035, subsidies
for renewables reach almost
$250 billion
Substantial investment
Greater efficiency
$38 trillion
$70 billion
global investment in energy
supply infrastructure is
expected between 2011
to 2035 (U.S.$)
in infrastructure spending
could be saved over the next
20 years through better
management of existing assets
(in the U.S. alone)
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© 2012 IBM Corporation
In a connected world, pressures on utilities continue to increase,
underscoring the need for a smarter approach
Data explosion
In the utilities industry, the
number of connected devices –
participants in the “Internet of
things” – is growing
exponentially:
45%
Compound annual growth
rate, 2010-2015
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Cost and pricing
pressures
Increasing consumer
expectations
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.
>50% of surveyed consumers
with an opinion expect smart
grid technologies will lower total
household costs for energy use.
But . . .
ca. 400%
49%
is the expected increase in the
average electric bill if the smart
grid is not deployed
of consumers were concerned
that erroneous smart meter
readings would result in
overcharges
© 2012 IBM Corporation
DONG Energy, based in Denmark, reduces outage time and saves
on capital investment
25-50%
potential reduction in outage
minutes. Fault search times
reduced by one-third
90%
estimated capital savings on
planned grid reinforcements,
when fully implemented
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
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© 2012 IBM Corporation
Enemalta and Water Services Corporations
Building the world’s first smart grid island
 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.
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.
© 2012 IBM Corporation
A Canadian energy company optimizes the operation of its power grid to
avoid outages and power surges
Up to
100%
more distributed generation
allowed into the grid
When fully implemented,
sensors will report outages
automatically, and crews can
be dispatched earlier and more
accurately
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.
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© 2012 IBM Corporation
Pacific Northwest National Laboratory uses innovative ways of
managing demand to keep the electric grid healthy in times of stress
50%
reduction in short-term
peak electricity loads,
helping to avoid power
restrictions and cascading
blackouts
10%
average savings on
electricity bills
$70 billion
projected reduction in
infrastructure spending
over 20 years
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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.
© 2012 IBM Corporation
A group of utilities provide consumers with direct access to their
consumption metrics
Standard platform across
7.1 million
energy meters and
2.5 million
consumers, provides visibility into
their personal energy use
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.
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© 2012 IBM Corporation
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
40%
IT footprint and costs and
decreases energy consumption by
9
"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
© 2012 IBM Corporation
Irish Utility ESB - EV platform for nationwide EV infrastructure
Irish utility is deploying 1,000 EV charging stations and is
partnering with IBM to develop a transaction management
system
SERVICES INCLUDE
DNO
TSO
 User management services including enrollment and
issuance of RFID card
REP
 Charge Calculation based on the identified user’s
appropriate rate
REP
 Prepay and Post-pay services
REP
REP
IBM EV
Platform
REP
REP
 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
TSO - Transmission System Operator
DNO - Distribution Network Operator
 Web and mobile interfaces for charge post location
and viewing of relevant data
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REP - Retail Electric Provider
© 2012 IBM Corporation
Public Private
Partnerships
Developing an eco-system of knowledge
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© 2012 IBM Corporation
As a global integrator weverages three foundational
capabilities to deliver end-to-end solutions.
SOLUTION DEVELOPMENT
AND DELIVERY
POLICY AND REGULATION
INDUSTRY THOUGHT
LEADERHSIP
Solution Development
IBM Research
Global IUN
Coalition
Nuclear Power
Advisory Council
Solution Delivery
Partner Ecosystem
@IBMSmartrEnergy
© 2012 IBM Corporation
GLOBAL SMART GRID FEDERATION
IBM established
and manages the
Global Intelligent
Utility Network
Coalition –
advancing smart
grid for over 150
million consumers
around the world
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13
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
NEW ADMISSIONS
Korea Smart Grid
Association
Denmark
Israel
South Africa
Taiwan
Turkey
© 2012 IBM Corporation
Solving the Puzzle – Partnerships
UNITED STATES
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.
EUROPEAN UNION
IBM partnering with European utility
association to develop market structure,
regulatory reform and investment
recommendations enabling energy
infrastructure innovation and network
reliability
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TURKEY
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.
MALAYSIA
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
Coalition
Overview – Current
Membership
Global
Intelligent
Utility
Network Coalition
Raleigh, NC USA
Optimized energy value
chain minimizing need
for new fossil
generation units, AMRDallas, TX USA
to-AMI strategic
Advanced metering
system implementation, transition, advanced
Washington, DC
feeder modeling
integration and PMO,
USA
IUN blueprint,
MDM, Business
outage
Analytics, Security,
management,
Smart Meter Texas
notification, AMI
Paris, France
Sensing & control, asset optimization
for fault prevention, smart grid for Co2
reduction, AMM & communications
network
Arnhem, The Netherlands
Organization-wide smart grid
vision and strategy, smart
grid PMO, fraud detection
Copenhagen,
Denmark
VPP, EDISON,
DMS integration,
CBM
Düsseldorf, Germany
Efficiency, Renewables
Integration, Grid Quality,
Intelligent Substation
San Diego, CA USA
Tokyo, Japan
Smart grid system
implementation,
condition based
maintenance,
OMS/DMS, smart grid
communication
strategy
Low carbon
generation, EVs,
Rooftop PV,
Efficient
buildings, AMI,
Storage, Grid
Reliability
Seoul, South Korea
Houston, TX USA
Advanced metering
system implementation,
integration and PMO,
MDM and HAN, Smart
Meter Texas
New Delhi, India
Campinas, Brazil
Smart Metering
Center, loss
reduction,
communications
Smart grid
governance
structure,
smart grid
roadmap (in
planning)
Nuclear
generation, Jeju
test bed,
Renewable
integration, EVs,
Grid automation
Queanbeyan, Australia
IN strategy and customized
IN blueprint, organizational
impact of smart grid, IN
Research & Demonstration
Center
© 2012 IBM Corporation
Universal policy foundation for Smart Grid
Create a Long Term
Roadmap with
Milestones
Develop a Robust
Consumer Education
Plan
Adopt or Establish
Interoperability
Standards
Create Regulatory
Incentive for Utility
Investments
Establish Clear Data
Privacy and Security rules
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© 2012 IBM Corporation
ありがとう * ‫ * شكرا‬謝謝 * Merci * Danke
* शक्रु िया * ‫ * תודה‬terima kasih * ‫با تشکر از شما‬
* gracias * tack * ‫ * آپ کا شکریہ‬σας
ευχαριστώ * * ‫ شكر‬спасибо * gratias agimus
tibi * Thank you!
Matt Futch, Global Policy Director
IBM Energy & Utilities
mgfutch@us.ibm.com
303-638-9412
© 2012 IBM Corporation