Smart Integrated Infrastructure The Progression of Smart Grid Presentation to National League of Cities Martin G. Travers – President, Telecommunications BOD(71) - 2 September 10, 2010 At the core, being “Smart” is understanding how to plan, integrate and operate technologies holistically Financial, social and political pressures drive infrastructure owners to improve end user service in more cost- and resourceefficient ways Added infrastructure intelligence enables increased reliability, efficiency and security while enhancing the end user experience and creating a sustainable future 2 BOD(71) - 3 September 10, 2010 Evolving Infrastructure Landscape Strategic Impact Market Today high IV. Smart Infrastructure Multi-Utility Integration Physical – Cyber Integration III. Smart Utility Multi-System – Multi-Facility Aggregation II. Smart Information Data Aggregation and Analysis Smart Single-Use Infrastructure Industry Defining Industry Best I. Smart Network Device Connectivity Smart Grid low Industry Average low Data Integration Progression Information Knowledge high Wisdom The convergence of energy, heating/cooling, water, waste management, communications, security, and transport will drive increased efficiencies and reliability 3 BOD(71) - 4 September 10, 2010 Smart Network - Defined • Key elements • Installation of network/connectivity • Installation of additional sensors/linkages and intelligent devices • Specialized tools and processes to collect, and transmit the data securely high • Technology that provides monitoring and control data for infrastructure operations. Strategic Impact Market Today IV. Smart Infrastructure Multi-Utility Integration Physical – Cyber Integration III. Smart Utility Multi-System – Multi-Facility Aggregation II. Smart Information Data Aggregation and Analysis Smart Single-Use Infrastructure Industry Best I. Smart Network Device Connectivity Smart Grid low Industry Defining Industry Average low Data Integration Progression Information Knowledge high Wisdom 4 BOD(71) - 5 September 10, 2010 Smart Information - Defined Tools to organize data to support multiple business decisions/ objectives Strategic Impact Market Today IV. Smart Infrastructure Multi-Utility Integration Physical – Cyber Integration III. Smart Utility Multi-System – Multi-Facility Aggregation II. Smart Information Data Aggregation and Analysis Smart Single-Use Infrastructure Industry Defining Industry Best I. Smart Network Device Connectivity Smart Grid low • Aggregation or ability to see multiple assets as a collection, allowing large number of distributed assets to be grouped for control, planning, and other needs. • Apply knowledge of present/past in concert with view of the nearterm future (with consideration of price signals, market, weather, or other factors that shape demand) to FORECAST requirements. high • Key Elements Industry Average low Data Integration Progression Information Knowledge high Wisdom 5 BOD(71) - 6 September 10, 2010 Smart Information - Benefits high • Identification of impending failures awareness of magnitude of losses and inefficiencies within a physical system (water, energy, or otherwise), or performance bottlenecks) • Allows needs to be compared to overall capabilities – this is key for demand response techniques. Strategic Impact Market Today IV. Smart Infrastructure Multi-Utility Integration Physical – Cyber Integration III. Smart Utility Multi-System – Multi-Facility Aggregation II. Smart Information Data Aggregation and Analysis Smart Single-Use Infrastructure Industry Best I. Smart Network Device Connectivity Smart Grid low Industry Defining Industry Average low Data Integration Progression Information Knowledge high Wisdom 6 BOD(71) - 7 September 10, 2010 Smart Utility - Defined high • Knowledge of and ability to model complex assets • Leverage of high-level statistical math or AI tools in concert with tools/capabilities to assess/model what individuals asset can/will do. Strategic Impact Market Today IV. Smart Infrastructure Multi-Utility Integration Physical – Cyber Integration III. Smart Utility Multi-System – Multi-Facility Aggregation II. Smart Information Data Aggregation and Analysis Smart Single-Use Infrastructure Industry Defining Industry Best I. Smart Network Device Connectivity Smart Grid low • Point of coordination and planning address how both existing and new assets will play together. • Key Elements • New-build design, integration of new/existing assets, extended opportunity for knowledge management. • Develop understanding and implications or action required at both the aggregate as well as at the asset level Industry Average low Data Integration Progression Information Knowledge high Wisdom 7 BOD(71) - 8 September 10, 2010 Smart Utility - Benefits high • Application of knowledge to how the actual pooled assets perform, implicit constraints/options • Understanding of how off-line assets (like energy storage) can be best combined to meet overall requirements. • A move towards optimization as forecasting improves to address longer period of time with good predictability • Improved ability to efficiently plan/commit various resources into the pool Strategic Impact Market Today IV. Smart Infrastructure Multi-Utility Integration Physical – Cyber Integration III. Smart Utility Multi-System – Multi-Facility Aggregation II. Smart Information Data Aggregation and Analysis Smart Single-Use Infrastructure Industry Best I. Smart Network Device Connectivity Smart Grid low Industry Defining Industry Average low Data Integration Progression Information Knowledge high Wisdom 8 BOD(71) - 9 September 10, 2010 Smart Infrastructure - Defined • Market based principles driving economic behaviours / actions high • Consumption shaping through data aggregation, demand/supply matching, demand response, (within various plants, systems, homes, etc.) is “controlled” (like air conditioning, recharging of vehicles, etc.) across all utilities • Key Elements • Systems engineering principles applied to help design integrated use/multi-utility systems required for smart cities. Strategic Impact Market Today IV. Smart Infrastructure Multi-Utility Integration Physical – Cyber Integration III. Smart Utility Multi-System – Multi-Facility Aggregation II. Smart Information Data Aggregation and Analysis Smart Single-Use Infrastructure Industry Best I. Smart Network Device Connectivity Smart Grid low Industry Defining Industry Average low Data Integration Progression Information Knowledge high Wisdom 9 BOD(71) - 10 September 10, 2010 Smart Infrastructure - Benefits Strategic Impact Market Today IV. Smart Infrastructure Multi-Utility Integration Physical – Cyber Integration III. Smart Utility Multi-System – Multi-Facility Aggregation II. Smart Information Data Aggregation and Analysis Smart Single-Use Infrastructure Industry Defining Industry Best I. Smart Network Device Connectivity Smart Grid low An exciting component of this model is that this cycle is repetitive… Smart Infrastructure leads back to Smart Networks. high • Better multi-utility coordination of the industrial customer with the regional utility (water, electricity, steam, waste product reuse, etc.). • OSI has noted that their analysis shows that managing interactions of top 30% of industry will allow for 80% of load management to addressed Industry Average low Data Integration Progression Information Knowledge high Wisdom 10 BOD(71) - 11 September 10, 2010 Smart Integrated Infrastructure Benefit Statements • Utility • Cost Savings – OpEx and CapEx • Reduced Labor Force • Consumers • Reliability • Price Savings • Community • Resource Efficiency • Environmental Efficiency 11 BOD(71) - 12 September 10, 2010 SII Platform is the way to keep pace with the societal and industry imperatives Winners understand: • Customer circumstances • How to successfully leverage technologies • How to adapt solutions SII Technology is a dynamic component of Building A World of Difference The Smart Integrated Infrastructure is a natural progression of today’s Smart Gird initiatives 12 13