SMART Grid Integration Through Advance Analytic Solutions Conference on Transmission Distribution & Metering India (Enabling Smart Grid Smart Metering) – New Delhi 10-11 November 2010 Arindam Ghosh Smart Grid Vision To digitize a largely passive network into a two-way, interactive information highway to support metering and grid monitoring and control, from demand management to “selfhealing” circuits. – Grid intelligence (collecting and analyzing data about grid activities and behaviors) and the ability to act in real-time are the defining capabilities. – Smart Grid involves a large-scale investment in T&D infrastructure aimed at enabling, and improving, advanced metering, demand response, asset management, and system reliability. © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Source: EEI Uncertainties and obstacles • Little consensus on definition or direction • Lack of standards • Uncertain performance expectations, benefits, and costs © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. • Limited investment capacity • Uncertain regulatory treatment Smart Grid Future Technology - the Driving Force Characteristics of SMART GRID Drivers of SMART GRID Demand • Rapid Growth in Overall Electricity Demand • Growing awareness for Reliable and Quality Electricity supply Technology • Network Operations Optimization • Dispersed Generation and Grid coordination • Renewable energy Integration Regulatory • Increasing competition within Industry due to deregulation and restructuring • Pressure on DISCOMS to increase energy efficiency and be self sufficient Internal • Theft and Fraud Detection • Demand Management and Volatility adjustment • Meter based Billing rather than estimated billing © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Smart Grid Represents a Major Enterprise Transformation © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The Impact Is Broad and Pervasive Smart Grid Business Changes Major Processes Impacted Benefit Categories • Meter reading expense Leveraging opportunities to gain operational efficiency • Asset management • Meter to cash • Field service and maintenance • Preventable field labor accidents • Back-office operating cost • Revenue growth • Field customer service costs • Non-collectible expense Leveraging opportunities to gain operational efficiency • Customer service • Customer response Enabling new capabilities for advanced power management • Network operations • Generation capacity and planning • Energy scheduling and dispatch • Customer service field labor • Service order response time • Forecast accuracy • Net billing • Line loss revenue • Fuel cost avoidance © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. A Broader Approach Recognizes the Role and Importance of Data as a Transformation Driver Technology • Interoperability • Systems integration Process • Architecture • There is tremendous value potential in identifying ways in which data can transform the business. Organization • Workforce rationalization • Skill development • Resource progression • Data can be the source of new value as well as being the “multiplier effect” to leverage additional value from existing Process • Re-engineering • Process optimization • Quality and productivity investments. • Decision support Data © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. • Optimized operation • Automation Data Becomes a Key to Driving Value Optimizing the benefits of Smart Grid requires a data-driven transformation in addition to technology and process New and Additional Data • Interval consumption • Interval demand • Meter status/error reporting • Event completion notification • Condition alert (i.e. tampering) • Grid node status • Distributed generation data • Feeder status/monitoring data • Power quality incidents • T&D line loss • Grid voltage stability © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Meter Data Management Managing a Complex Environment © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Meter Data Management (MDM) – Why it is critical for Smart Grid • New meter technologies capture significantly more data. Utilities need a central repository for this data. • MDM is the foundation on which many AMI and Smart Grid programs will be built, both as a technical prerequisite and as a foundation for improved business value. • While meter data was once viewed as simply an input to the billing process, its strategic business value has grown considerably. • It provides the data required for regulatory reporting compliance as well as key business metrics. • MDM is a central component to enabling and managing security and information protection © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Some key data management considerations • Data Volume & Management • Data Collection & Collation • Legal Consultation and Privacy Concerns • Incident and Breach Management Planning • Leverage Data Audits and Reviews © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The Architecture of Smart Grid Creates a Paradigm Shift in the Role of Data At Present Future Bidirectional, real-time communications Time sensitivity in milliseconds Consolidated & Integrated Applications © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. How to Extract Value from Data Example – Distribution Management Network Operation and Maintenance Schedule and Dispatch Energy Management Network Planning Grid operations have historically been limited by unidirectional communication devices and a high degree of manual involvement. Outage management is typically a reactive process based on trouble calls. A “Smart” grid with numerous data collection and control points will provide the data to enable advanced distribution and power management capabilities. 1. Identify Available Data • Condition-based monitoring • Feeder segmentation • Distributed generation • Plug-in electric vehicle (PHEV) • Demand-side demand response • Home area network • Grid voltage © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 2. Assess Potential Value • Enable “self-healing” and increase distribution management automation • Grid can proactively identify potential failure points and react to prevent outage • Reduce outage rate of occurrence and impact • Make outage management more proactive vs. reactive • Increase grid management “intelligence” 3. Develop the Transformation • Automate sensors and control nodes to react to specific events • Program outage alarms and notifications to automatically initiate repair crew work orders and customer communication • Establish a distribution management system to operate grid • Assess potential redundancies with other systems (i.e. Outage Management System (OMS) Data Analytics - Life Cycle for a Power Distribution Utility Data Point Optimization • Demand Analysis • Market Insights • Dashboards Business Drivers to Achieve MDMS • Customer Data Analytics • Load Data Analytics • Billing Data Analytics • Vendor Data Management © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. • Grid Optimization • Demand Management Revenue Protection • Outage Management Business Benefits after MDMS MDMS • Abnormal consumption report • Areas of High Loss Report • Consumption trends Report MIS and Reporting Key Concentration Areas • Roadmap after MDMS Metered Data Management System Intelligent Solutions Business Analytics Roadmap to MDMS Advantages of Advance Analytics “Customer Information and Energy Use” • Automation / effort reduction • Restoration improvements • Revenue protection • Some demand reduction “Grid Optimization “ • Asset life optimization • System operational efficiency • Improved reliability • Predictive maintenance Beyond the Meter “Strategic Consumer Integration and Empowerment” • Consumer engagement • Energy efficiency • Incremental revenue © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Focus: Change: • • • • Infrastructure and meter install Customer interaction Usage and outage analytics Meter to cash process connectivity • Governance Focus: Change: • Network and asset management • Advanced workflow • Real-time data management and analytics • Operating model integration Focus: Change: • Enhanced Business model • Customer strategy and behaviors • Third party relationships • Innovation and collaboration at speed 14 Analytics Solution - Illustrative Grid Optimization Revenue Protection Customer Information and Energy Use + Active Load Control Performance Outage Management Strategic Consumer Integration and Empowerment Sub-Metering Abnormal consumption report Demand Optimization Price & Load Modeling Load Forecasting Load Profile Solutions _ Market profile Customer profile Peak clipping Load shifting Scheduling & Settlement Tariff profiling Theft Detection © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Integrated Voltage /VAR Control Usage Analysis Distribution Planning & Analysis Areas of High Loss Report Consumption trends Report Real time Decision Making Risk Analytics Solution - Illustrative + Rate Analysis & Load Factor Analysis Usage and Scenario Analysis Energy Performance Accounting Transformer & cable load and equipment load analysis Alarm and Notifications Energy Balance Report Transformer & cable load and equipment load analysis Solutions _ Last-Gasp, PowerUp Messages, Carbon footprint Analysis Peak and Valley Analysis Demand violations Abnormal power factors © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Advanced switching Modeling Applications Utility Modeling Flexible Load building Modeling Reliability area footprint modeling Demand supply / demand response Modeling Energy mix Analysis Forecasting & Energy Procurement Baselines and Outlier Analysis Identifying tampered meters or zero readings Customers who are billed but never pay Customers billed on average or minimum Customers with same name and address Same customer number with different names and addresses Customers with no name and address MIS and Reporting Solution - Illustrative Continuous Monitoring and Vigilance Dashboard © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. • Near real time energy accounting • Data Reconciliation Monitoring • Area / Office wise monitoring • Watching High Value Customers for fraud Thank You Presentation by Arindam Ghosh Associate Director – Advisory KPMG DLF Corporate Park DLF City, Phase III Gurgaon 122002, India Mobile: +91 9650666868 Email: arindamghosh@kpmg.com © 2010 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International").