IBM Energy & Utilities
Smarter Energy for a Smarter Planet
© 2009 IBM Corporation
Agenda
Smarter Planet
Smarter Energy in a Smarter Planet
IBM Smarter Energy Overview
ROI of Smarter Energy
Perceptions of Smarter Energy / Smart Grid
IBM Customer Stories
© 2009 IBM Corporation
IBM Energy & Utilities
A planet of smarter cities: In 2007, for the first time in history,
the majority of the world’s population—3.3 billion people—lived
in cities. By 2050, city dwellers are expected to make up 70%
of Earth’s total population, or 6.4 billion people.
3
© 2009 IBM Corporation
IBM Energy & Utilities
What draws us all to cities?
Opportunity
In our cities all the man-made
systems must come together and
interact with one another.
Facing challenges such as:
4
© 2009 IBM Corporation
IBM Energy & Utilities
A Smaller World, A Flatter world, A Smarter Planet
The digital and physical infrastructures of the planet are converging, and
intelligence is being infused into the way the world works.
5
© 2009 IBM Corporation
Agenda
Smarter Planet
Smarter Energy in a Smarter Planet
IBM Smarter Energy Overview
ROI of Smarter Energy
Perceptions of Smarter Energy / Smart Grid
IBM Customer Stories
© 2009 IBM Corporation
IBM Energy & Utilities
The need for a Smarter Energy in a Smarter Planet
170 billion
Kilowatt-hours wasted
each year by consumers
due to insufficient power
usage information.
$70 billion
The U.S. could save up to
$70 billion in infrastructure
spending over the next
20 years through better
management of
existing assets.
36.8%
Projected growth in
worldwide energy demand
by 2030.
15% reduction
in peak loads
In PNNL Smart Grid
project it was
demonstrated that
consumers decreased
their overall peak load on
the grid by 15% & save
10% on their bills.
1/4
Proportion of worldwide
CO2 emissions created
by power generation, the
largest man-made source.
14% lower
emissions
Smart grid technology
has the potential to
reduce the power sector’s
CO2 emissions 14% by
2020.
© 2009 IBM Corporation
IBM Energy & Utilities
Market Forces
Market forces, impacting the landscape of utilities around the world,
requiring the transformation of industry business models.
New entrants and disruptive technologies
Climate change and environmental concerns
Growth in renewable generation and distributed resources
Aging asset performance with increased expectations on reliability
Increased pressure on operational efficiency and workforce productivity
Increasing desire by consumers for a role in energy management and conservation
© 2009 IBM Corporation
IBM Energy & Utilities
Energy and Utilities market forces are creating the need for an evolution in
the energy value chain.
Coal/Natural Gas
Solar
Energy Storage
UTILITY
Hydroelectric
Nuclear
UTILITY
Wind
Coal/Natural Gas
Hydroelectric
Solar
Energy Storage
Nuclear
Wind
Solar
Energy Storage
Plug-in Vehicle
Wind
TRADITIONAL
TRANSFORMED
Consumer
Power Flow
Periodic Information Flow
Continuous Information Flow
© 2009 IBM Corporation
IBM Energy & Utilities
New capabilities are redefining the relationship between utilities and
end-users—enabling new business models.
Consumers
Utilities
Take advantage of variable
pricing by purchasing
electricity when it’s cheapest.
Generate their own electricity
and sell it back to the grid.
Automatically monitor
the health of the grid.
Smarter
Energy
Decrease carbon emissions
by choosing clean electricity
sources.
Remotely sense
vulnerabilities to grid assets
and dispatch crews.
Better predict demand and
manage supply accordingly.
Smarter Energy
Sees real-time information by instrumenting the
network to make real-time adjustments for increased
reliability and safety
Knows how each participant contributes to the value
chain and fosters system interconnections that allow
each to optimize their outcomes
Acts intelligently to support company objectives
as well as societal outcomes
© 2009 IBM Corporation
IBM Energy & Utilities
Three main drivers due to the evolution of the energy value chain
TRANSFORMING
THE UTILITY NETWORK
Transforming the utility
network from a rigid analog
system to a dynamic and
automated energy delivery
system.
EMPOWERING
THE CONSUMER
ENERGY AND
UTILITIES
Empowering consumers
by providing them with near
real-time, detailed information
about their energy usage.
ENSURING CLEANER ENERGY SUPPLY
Incorporating renewable energy and electric vehicles
into the power grid and meeting stringent greenhouse
gas emissions targets while maintaining reliable, costeffective power supply
© 2009 IBM Corporation
IBM Energy & Utilities
Empowering Consumers
90% Of consumer respondents
100 million Smart meters
75%Of consumers on a time-of-
to IBM’s Global Utility Consumer
Survey indicated that they would
like a smart meter and tools for
managing their energy usage.
will be deployed in the next five
years, half of which will have a
built-in Home-Area Network (HAN)
gateway for in-home energy
management programs and
services.
use pricing pilot in Ontario were
able to shift their load and save an
average of 3% on their energy
bills.
Utilities are enabling customers to become prosumers.
© 2009 IBM Corporation
IBM Energy & Utilities
CLEANER ENERGY SUPPLY
20-20-20 The EU targets of a
1 million The California Solar
Net-zero A net-zero energy
20% cut in greenhouse gas
emissions, a 20% increase in the
use of renewable energy & a 20%
cut in energy consumption by
2020.
Initiative authorized the state to
invest $3.2B in solar electric power
systems over the next 10 yrs & to
build 1Million solar electric roofs
amounting to 3,000 MW of solar
electric power.
home is capable of producing,
at minimum, an annual output of
renewable energy that is equal to
the total amount of its annual
consumed/ purchased energy from
energy utilities.
Ensuring grid reliability with renewable and distributed energy sources
© 2009 IBM Corporation
IBM Energy & Utilities
TRANSFORMING THE UTILITY NETWORK
4 in 5 Consumers would modify
$70 billion U.S. could save
$4.2 billion Will be spent in
their energy usage in exchange for
savings on their energy bills.
up to $70 billion in infrastructure
spending over the next 20 years
through better management of
existing assets.
2013 on information and
communications technology for the
smart grid in the U.S. and Canada.
Technologies & Processes to ensure grid reliability.
© 2009 IBM Corporation
Agenda
Smarter Planet
Smarter Energy in a Smarter Planet
IBM Smarter Energy Overview
ROI of Smarter Energy
Perceptions of Smarter Energy / Smart Grid
IBM Customer Stories
© 2009 IBM Corporation
Energy and utilities industry solution portfolio
IBM’s energy and utilities industry solution portfolio addresses a utility’s business and technology
needs across the full energy value chain
POWER GENERATION
OPTIMIZATION
Plant Operations
Fleet Optimization
Supply Expansion
TRANSMISSION
AND DISTRIBUTION
WORK AND ASSET
MANAGEMENT
Mobile Workforce Mgmt.
Asset Lifecycle Mgmt.
Supply Chain Mgmt.
CUSTOMER
OPERATIONS
TRANSFORMATION
Customer Systems
Customer Management
Customer Contact Center
Smart Metering and Beyond
Grid Operations
IUN Communications Networks
Human Resources
Finance
&Accounting
Risk & Compliance
Management
Collaboration &
Knowledge
Management
DELIVERY OPTIONS
INTELLIGENT UTILITY
NETWORK (IUN)
ENTERPRISE
SERVICES
EN
D
US
ER
S
PHYSICAL AND CYBER SECURITY
SOLUTION ARCHITECTURE FOR ENERGY & UTILITIES FRAMEWORK (SAFE)
INFRASTRUCTURE
Servers, storage, system communications, and associated services
© 2009 IBM Corporation
IBM Energy & Utilities
Power Generation Optimization
The Power Generation Optimization solution is a suite of offerings that IBM has established to help
Generation companies solve their operations and development challenges associated with electricity supply.
Plant
Operations
Drive efficiencies and
operational performance in
existing plants
Increase plant availability and reliability by reducing outages and ascend the asset management
maturity curve
turn data and content into integrated and trusted information
address the retiring workforce issue through knowledge capture, process automation and
workforce recruiting/retention
visualize and optimize plant operations
assess and improve plant cyber security
Fleet Optimization
Provide best practices
solutions across all plants
and leverage economies of
scale
Standardize asset management and utilization to best practices fleet-wide
Move from business automation to business optimization
Apply advanced analytical financial tools to optimize fleet operations across fuel, wholesale
electricity, and carbon markets
Seamlessly integrate renewables into existing fleet operations
Manage supply expansion needs while meeting increasingly difficult regulations, market
uncertainties, and capital market concerns: make intelligent long term plans and tradeoffs in
fleet diversification
Supply Expansion
Leverage information from
design and construction of
plants to enhance their
lifecycle value
Minimize risk in new plant design and construction through information lifecycle management
Fully understand the complexities of nuclear, clean coal, and other advanced generation
technologies through High Performance Computing
Leverage new technologies and capabilities in minimally manned plant operations;
“Virtualize” and aggregate distributed generation and demand response to increase utility value
© 2009 IBM Corporation
IBM Energy & Utilities
Intelligent Utility Network
The Intelligent Utility Network solution encompasses a broad set of service offerings that addresses the
complete energy value chain, from generation to the consumer premise.
Smart Metering &
Beyond
Grid Operations
IUN Communications
Networks
Enable business transformation
through enhanced metering
capabilities
Visioning, strategy, planning & selection, design, build, rollout and operations
support for Smart Metering Initiatives, their integration into the utility enterprise and
the ensuing capabilities that smart metering enables for both the utility and the
consumer.
Provide enhanced operational and
analytical capabilities throughout
distribution network operations
Development, planning, implementation of grid management and energy
management systems required for grid operations and monitoring systems and their
integration into the utility operations environment and enterprise to take advantage
of this information for business and operational intelligence
Apply methodologies which will
optimize communications aspects of
the Smart Grid
Assessment and development of utility-wide voice and data communications
strategy to enable information exchange across all the components of a Smart Grid.
Further provide planning, design, implementation and operation of IUN
communications network(s).
© 2009 IBM Corporation
IBM Energy & Utilities
Work and Asset Management
The Work and Asset Management solution allows utilities to optimize their investments in and the lifecycles
of all resources from a total enterprise perspective, including field force labor, assets, and supplies.
Mobile Workforce
Management
Enable real-time, two-way
communication between
the field force and
dispatch center, and
timely access to vital
information.
Speed response times and problem resolution, enabling more problems to be solved on the first visit with
fewer onsite workers.
Improve collaboration, enhancing knowledge transfer and addressing the challenge of an aging workforce.
Automate the work order process to help reduce operating costs.
Help utilities increase the productivity and safety of field workers, and achieve higher service levels.
Support continuous communications with field workers, centralized support staff, utility management and first
responders in emergency situations.
Asset Lifecycle
Management
Provide end-to-end
information around a
company’s assets
throughout all phases of
an asset’s life, from
planning, to procurement,
to retirement.
Maximize asset performance and asset life.
Anticipate asset faults before they happen.
Improve infrastructure security and reliability.
Meet and retain supervisory control and data acquisition (SCADA) compliance.
Integrate with data mining and analytics tools to help prioritize asset replacement.
Use video surveillance of substations to identify security risks, assist with fault diagnosis and enable superior
collaboration with personnel.
Provide data required to support network upgrade requests.
Supply Chain
Management
Enable the integration of
solutions for strategic
sourcing, supplier
enablement, requisitions,
order management, work
management, and
materials management.
Track all materials, parts, components and their usage in order to minimize stock levels and eliminate
unnecessary spending.
Stock the right level of inventory to meet demand using inventory optimization and planning tools such as reorder points, economic order quantities and ABC analysis.
Track serialized assets as they move through the enterprise.
Plan demand, streamline purchasing processes, and ensure compliance with existing purchasing contracts.
Eliminate human intervention with “lights out purchasing” of interval-based, meter-based or event driven
requirements.
© 2009 IBM Corporation
IBM Energy & Utilities
Customer Operations Transformation
The Customer Operations Transformation solution is an integrated suite of offerings that IBM has established
to help Utilities solve their cost and service challenges associated with their meter to cash processes.
Customer
Management
Align the business
capabilities with the
market direction to
improve the customer
relationship
Create an actionable customer focused roadmap to enable delivery of the desired customer experience
Leverage information and conduct analytics to increase customer insight and address customer needs
specific to each segment
Generate new revenue streams through the creation of additional product and service offerings
Provide customers with information, controls, and choices to better manage their consumption
Implement a customer service model that supports the organization’s overall business strategy
Customer Contact
Center
Improve contact center
operations while
increasing customer
satisfaction and
reducing cost-to-serve
Improve efficiency and effectiveness of the contact center performance across all channels addressing
customer needs, regulatory mandates, and organizational constraints
Reduce the cost per customer by driving the highest degree of automation and self-service through the
implementation of best practices and better use of technology
Provide customers with consistent information and superior customer experience across all channels
Improve the accuracy in enrollment, metering, billing, payment, and collections lifecycle
Customer Systems
Focus on the planning,
implementation, and
management of
customer information
applications
Implement new CIS/CRM applications or adapt legacy ones to new business requirements, integrating
new components to existing systems, while reducing implementation risk
Ensure systems scalability and flexibility to meet regulatory compliance and new customer requirements
Operate, manage, and/or host client’s billing system to increase service levels while reducing time and
cost for support and maintenance
© 2009 IBM Corporation
IBM Energy & Utilities
Our approach capitalizes on three foundational capabilities to deliver end-toend solutions.
SOLUTION
DEVELOPMENT &
DELIVERY
Solution Development
IBM Research
THOUGHT
LEADERSHIP
POLICY
GSGF
Global IUN
Coalition
GW Architecture Council
Nuclear Power
Advisory Council
Solution Delivery
Partner Ecosystem
© 2009 IBM Corporation
IBM Energy & Utilities
The Solution Architecture for Energy and Utilities (SAFE) Framework
delivers smarter solution deployment
The framework gives you speed,
flexibility, and choice in deploying
solutions -- and it reduces cost and risk
Energy and Utilities Solutions
Business Partner Ecosystem
Asset, Device and
Service Monitoring
Regulatory, Risk
and Compliance
Management
Informed Decision
Making
Asset Lifecycle
Management
Improved Customer
Experience
Security Solutions
Business Process
Automation
The SAFE framework provides:
An approach to align technology
with utility business needs
Utility industry best practices
and solution accelerators to
speed deployment
Re-usable implementation
patterns to lower risk
Support for adoption of open and
industry-wide standards
A choice of business applications
from IBM business partners
Infrastructure and Governance
(Server, storage and networking)
© 2009 IBM Corporation
IBM Energy & Utilities
2010
IBM is investing in the Energy and
Utilities Industry for the long term
Global Smart Grid Federation formed with IBM as chair
Launched IBM Intelligent Utility Network Communications Services Offering
Global IUN Coalition develops and launches model for CO2 impact of smart
grid
IBM acquired Intelliden, Open Page, Netezza, BigFix and Lombardi
2009
2008
IBM acquired Cognos, Princeton Softech and iLog
Built the IBM Center of Excellence for Nuclear Power in La Gaude, France
The IBM Nuclear Power Advisory Council was formed
IBM transferred ownership
of Smart Grid Maturity
Model to Carnegie Mellon
University
IBM launched SAFE in the
marketplace
IBM chairs GridWise
Architecture Council
IBM chairs DOE’s EAC Smart Grid Subcommittee
2007
IBM invests $100M in Energy & Utilities Industry Growth Case over 4 years
IBM founded the Global Intelligent Utility Network Coalition
IBM chairs GridWise Alliance
Commissioned China E&U
Solution Lab
IBM acquired SPSS and
Guardium
2010
2006
2004
IBM Innovation Jam identified
IUN as “top idea”
IBM begins Energy Hub
development
IBM acquired FileNet, MRO,
ISS and Micromuse
Launched e-SCADA
Commissioned Austin and
LaGaude E&U Solution Labs
IBM signs global AMM
collaboration agreement
with Enel
2009
IBM launched E&U Partner
Industry Network
2004
2005
2006
2007
2008
© 2009 IBM Corporation
IBM Energy & Utilities
IBM has worked with clients around the world to develop solutions which
transform the energy value chain
Ontario
Energy Board
Pacific
Northwest
National
Laboratory
DONG Energy
Hildebrand
DTE
Energy
Ecotricity
npower
Oncor
San Francisco
Public Utilities
Commission
CenterPoint
Austin Energy
Energy
EnBW
MVV/City of Mannheim
Endesa S.A.
ASM Brescia
Progress Energy
Consumers Energy
Red Electrica
de Espana
Texas Electric
Delivery Company
Enemalta
Terna
Guangdong
Dapeng LNG
Essential
Energy
A large Brazilian
Utility Company
Ausgrid
© 2009 IBM Corporation
IBM Energy & Utilities
IBM E&U Solution Centers
Comprehensive Industry Knowledge and Analysis
Solutions Experience Lab
at IBM Austin
A reference implementation for the E&U
industry based on SAFE, featuring advanced,
leading edge technologies
Showcase for IBM technology integrated with
key business partners
- Itron
- muNet
- OSIsoft
- Siemens
- Sisco
Industry standards business processes and
data
Customized briefings and training
Proof of Concepts
Energy & Utilities Solution
Center at IBM La Gaude
Demonstration center which showcases
innovative solutions for the E&U Industry
- Advanced Meter Management
- Energy Monitoring with Cognos
- Security
- EAM Maximo
- BI with ILOG
- Intelligent Plant Life Cycle Management
- Knowledge Management with FileNet
- High Performance Computing
10+ integrated, solution prototypes
Demonstrations can be projected in live video
anywhere in the world
China Development Lab
E&U Solution Center
Value Proposition
Key Solution Underpin for E&U engagement
and delivery, acting as ONE team for E&U
bold play in GMU
Strategic partnership with Key influencer in
IUN / Nuclear / Wind, contribution in EcoSystem building
Replicable and sustainable solution/asset
with high value for both customer and IBM
WW contribution to both GBS & SWG E&U
solution/asset portfolio
Business Scope
Demo center for E&U solutions
PoC and PoT with engagement team
Asset and solution harvesting &
enhancement for reuse
New asset development with key value
Investment on strategic partnership program
© 2009 IBM Corporation
IBM Energy & Utilities
IBM Research Smarter Energy
Solution Driven
Strategy
Smart grid enablement
–
–
–
–
–
–
–
–
Real-world aware systems-of-systems architectures
Modeling, analytics and optimization
Renewable and EV integration, optimization
Demand response
Interoperability frameworks and messaging
Cyber-physical system security
Social computing
Compute and storage clouds, HPC
Joint research and
pilots
Regional Demonstrations
National Labs
Universities
Industry/client partners, technology consortia
Committees and
standards
DOE GridWise Architecture Council
NIST SG Working Groups
ISO, IEC, IEEE, …
– Smart grids, Batteries, Plug-In Vehicles
First of a Kind projects
Smarter Energy Platform
Intelligent buildings and green data centers
Photovoltaics (PV)
Battery storage for EV
Chip and server systems power management
© 2009 IBM Corporation
Agenda
Smarter Planet
Smarter Energy in a Smarter Planet
IBM Smarter Energy Overview
ROI of Smarter Energy
Perceptions of Smarter Energy / Smart Grid
IBM Customer Stories
© 2009 IBM Corporation
IBM Energy & Utilities
IBM’s Smarter Energy Benefits Model: To quantify the potential benefits of the
journey of Smart Grid taken by utilities
Components of the
Smarter Energy Benefits Model
Case Study Interviews with Business Leaders
15 in-depth studies representing utilities
worldwide, focusing on SmartGrid, T&D
operations and regulatory policy
Partnership with a utility with more than 2 million
customers to review the model and its output
Business Case and Model Reviews
SmartGrid regulatory filings from several utilities
7 separate benefit models, including models
developed by EPRI, McKinsey and several
utilities in NA, Australia and Europe
Meta-analysis of Academic & Industry Studies
More than 100 secondary sources researched
Data representing all aspects of SmartGrid,
including topics on consumer behavior, available
technologies, government investment,
renewables and environmental impacts
Source: IBM Center for Applied Insights
Utilities can use this to:
1. Identify new benefits as compared
to traditional approaches and adjust benefits
for what has already been implemented
2. Help make the financial business case to
proceed along the smarter energy journey
3. Facilitate discussion with their customers,
regulators and other stakeholders about
the benefits of moving forward
© 2009 IBM Corporation
IBM Energy & Utilities
IBM’s Smarter Energy Benefits Model quantifies benefits across the
value drivers and investment areas…
Quantifying the benefits
Value Driver
Investment Area
Example of Potential Benefit*
T&D O&M Costs
Outage Management
Asset Management
10% of restoration costs
10% of maintenance costs
T&D Cap Ex
Demand Response
5% reduction in peak demand
Generation Cap Ex
Voltage/VAR Optimization
Demand Response
2% reduction in peak demand
6.5% reduction in peak demand
Energy Costs
Smart Meters
Voltage/VAR Optimization
25% reduction in commercial losses
0.2% reduction in energy supply needs
Environmental
Energy Efficiency
7% reduction in carbon
Customer Costs
Energy Efficiency
Outage Management
7% reduction in energy consumption
20% reduction in cost to customer
* Go to
References
© 2009 IBM Corporation
IBM Energy & Utilities
An illustrative utility’s benefit opportunity is over $600 million per year
once they have achieved the optimized dynamic network.
Benefits by area for an illustrative utility
More than two million customers
$605 Million*
T&D O&M Costs
Reducing T&D O&M costs for maintenance,
metering, field operations, restoration
and call center activities
11%
T&D CapEx
Generation CapEx
27%
32%
7%
Reducing Generation and T&D capital
investment through better asset management,
voltage/VAR optimization, distribution
automation and capacity forecasting
Energy Costs
23%
Reduced energy cost by controlling line
losses and identifying theft and other
commercial losses
Environmental
*Note: The annual benefit at Year 10 (steady state)
for this illustrative utility is $605 million
Reducing emissions through automated
operations, lower energy consumption
and reduced line losses
© 2009 IBM Corporation
IBM Energy & Utilities
Adjusting to the new market by investing in Smarter Energy is more
flexible and capital efficient than traditional approaches.
Comparing Investment Approaches
Traditional Asset Investment
Grid reinforcement for reliability
Centralized wind energy
for renewables
Traditional demand management
Cost
($M)
16,500
16,000
15,500
15,000
14,500
14,000
13,500
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7 Year 8
Year 9
Smarter Energy Investment
Monitoring and grid automation
Smart metering
Advanced distribution management
Advanced outage management
Grid optimization analytics
Note: This is based on a comparison of the yearly cost for
our illustrative utility with >2 million customers
Traditional Asset Investment
Investing in assets supports demand
growth and can increase reliability,
the proportion of renewables and
overall energy efficiency…and regulators
understand this approach but…
Smarter Energy Investment
…assets “in the ground” are expensive.
And these hard investments provide little
flexibility to support customer demands
for new services or distributed energy…
policies that regulators are now supporting
© 2009 IBM Corporation
Agenda
Smarter Planet
Smarter Energy in a Smarter Planet
IBM Smarter Energy Overview
ROI of Smarter Energy
Perceptions of Smarter Energy / Smart Grid
IBM Customer Stories
© 2009 IBM Corporation
Influences, Perceptions, Knowledge, and Expectations of
the New Energy Consumer
New views from the 2011 IBM Global Utility Consumer Survey
© 2009 IBM Corporation
In our first two Global Utility Consumer Surveys (2007 and 2009), we assessed the
future wants and needs of residential customers
We surveyed about 2000 customers in six countries in 2007 and over 5000 in
2009, each with a focus on future wants and needs of consumers
The context for the questions in the prior surveys was that of a dramatically
different future for energy consumers: better information, more control, better
reliability and power quality, more participation, greener
Since early 2009, many other surveys have come out with a similar focus on what
consumers will look for in the future
The consensus among these has been
that many consumers are eager for the
enhanced reliability, control, and new
programs and services that these
changes will bring
But in some parts of the world, issues
have emerged in 2009-present that
compete with those expectations
© 2009 IBM Corporation
In our third survey, we reset our focus to the most current attitudes, opinions, and
needs that are driving such future expectations
Survey respondents
Nearly 10,000 responses from households in
seventeen countries – eight in Europe
(France, Germany, Netherlands, UK, Ireland,
Denmark, Belgium, Poland), five in Asia-Pac
(Japan, Australia, New Zealand, China, and India),
two in North America (United States, Canada), and
two in South America (Brazil, Chile).
Questionnaire structure
30-35 multi-part questions in nine languages
covering a wide variety of topics including attitudes
towards smart grid perceptions and
understanding, interest in green power, and
energy costs. Certain targeted questions were
only asked in one or more specific countries.
The survey was conducted during September
2010 - February, 2011. The surveys conducted
during the summer of 2007 and late 2008 to early
2009 are used for comparison where possible.
30%
31%
26%
13%
The population of the countries
represented in this year’s survey is
over half the total global population.
© 2009 IBM Corporation
Our objectives for the 2011 survey can be summarized in four lines of inquiry
about energy consumers today
What are their most important influences on knowledge
gained, opinions, and attitudes toward behavioral change?
How do perceptions of providers and technological
change shape consumers’ expectations?
What levels of knowledge do they have on critical
elements that drive their perceptions and expectations?
What expectations do consumers have for energy
service and providers in the future – and what sets these
expectations?
© 2009 IBM Corporation
The more respondents know about smart grid and smart meters, the
more likely they are to be in favor of deployment efforts
Percent of respondents approving of deployment of smart meters and smart
grid locally (underway, proposed, or hypothesized)
© 2009 IBM Corporation
A majority of Australians and Americans are open to changing
energy consumption times; Danish are least amenable to the idea
Percent of respondents that would change the times they use energy for appliances, heating and
cooling, etc. if they receive benefits from that action
59%
Australia
16%
Denmark
42%
France
37%
Netherlands
54%
US
0%
Sample Size = 4057
10%
20%
30%
40%
50%
60%
70%
Source: IBM 2010 Global Utility Consumer Survey
© 2009 IBM Corporation
Consumers in Denmark and Australia are most inclined to share
household energy usage data in exchange for a share of benefits…
Percent of respondents that are willing to share household energy consumption data with
companies that can help them save money
56%
Australia
61%
Denmark
33%
France
29%
Netherlands
47%
US
0%
Sample Size = 4057
10%
20%
30%
40%
50%
60%
70%
Source: IBM 2010 Global Utility Consumer Survey
© 2009 IBM Corporation
… even though they are at opposite ends of the scale for consumer
uncertainty about data privacy
Percent of respondents that are concerned that collection of energy usage data will result in some
loss of privacy
33%
Australia
12%
Denmark
38%
France
Netherlands
24%
30%
US
0%
5%
10%
15%
20%
25%
30%
35%
40%
Even with as many as 60% receptive to an exchange of value for data, the needs and
concerns of the 40% that have reservations or are strictly opposed must be addressed
Sample Size = 4057
Source: IBM 2010 Global Utility Consumer Survey
© 2009 IBM Corporation
After a sharp drop after the global economic crisis began, spending
on non-energy “green products” has stabilized everywhere but the UK
Percent of respondents that pay more for non-energy related environmentally friendly products
Australia 2007
61%
46%
Australia 2008
45%
Australia 2010
Japan 2007
52%
Japan 2008
39%
38%
Japan 2010
Germany 2007
51%
Germany 2008
35%
Germany 2010
36%
Netherlands 2007
49%
Netherlands 2008
35%
Netherlands 2010
35%
US 2007
47%
38%
US 2008
US 2010
35%
45%
UK 2007
33%
UK 2008
25%
UK 2010
49%
Denmark 2008
45%
Denmark 2010
43%
France 2008
41%
France 2010
0%
10%
20%
Sample Size = 5168 (2010), 3497 (2008), 1893 (2007)
30%
40%
50%
60%
70%
Source: IBM Global Utility Consumer Surveys, 2007-2010
© 2009 IBM Corporation
A number of key findings
Consumers have
been promised a
lot with respect to
the “new world of
the smart grid”.
And they want
what’s been
promised to them.
Having knowledge about the
elements and capabilities of
smart grid systems and home
interfaces is a major driver of
customer acceptance.
Cost control remains the most
powerful motivator for change in
behavior of consumer regarding
energy usage. The impact of
the global financial crisis also
means less desire to pay more
for green energy.
There are major differences across
countries in knowledge of key terms and
issues, receptivity to new behaviors and
programs, and concerns about the impact of
smart grids (and smart meters). The
dialogue with consumers must remain
localized.
© 2009 IBM Corporation
Agenda
Smarter Planet
Smarter Energy in a Smarter Planet
IBM Smarter Energy Overview
ROI of Smarter Energy
Perceptions of Smarter Energy / Smart Grid
IBM Customer Stories
© 2009 IBM Corporation
IBM Energy & Utilities
Austin Energy: Leading the way to the smart grid
Taking a multifaceted approach to better energy management.
The need
Seeking to improve service and reliability, Texas utility Austin Energy saw the need and
opportunity to transform how it delivers electricity. For this vision to become a reality, the
company first had to build a strong technology foundation with the ability to
accommodate not only current goals and initiatives, but also growth and new projects
far into the future.
Solution
Austin Energy partnered with IBM to create one of the United States’ first Intelligent
Utility Networks with the ability to manage the grid to an unprecedented degree.
Hundreds of thousands of energy grid assets and devices on the network are monitored
and controlled centrally, creating a self-healing capability.
Austin Energy has created
“smart grid 1.0,” which adds
integration, intelligence and
control. Next is “smart grid
2.0,” which aims to go
beyond the meter and into
the premises, integrating
electrical devices into the
system.
Solution Components
What makes it smarter
The gathering of new, never-before-available information using devices such as
smart meters and substation sensors, combined with best practices enables Austin
Energy to monitor consumption, reduce energy usage and respond to outages far
more quickly.
Savings of over 660 megawatts of electricity, with better management of peak loads
Employs a powerful software platform for development, management and
operations, enabling better service levels
IBM Lotus®
IBM Rational®
IBM Tivoli®
IBM WebSphere®
IBM Global Business Services
IBM Lotus Software Services
IBM Rational Software Services
IBM WebSphere Software Services
IBM Business Partner
Ascendant Technology
© 2009 IBM Corporation
IBM Energy & Utilities
Dong Energy
Making the most of the intelligent electrical grid.
Business challenge
DONG Energy is Denmark’s largest energy company. Increasing marketplace and
regulatory demands along with a need for future infrastructure reinvestment drove
Danish utility company DONG Energy to look for a way to better manage and utilize its
electrical distribution network in order to respond to outages faster and more efficiently.
Solution
DONG Energy teamed with IBM to implement an Intelligent Utility Network (IUN),
installing remote monitoring and control devices that give the company an
unprecedented amount of information about the current state of the grid. The new
solution also involves extensive analysis of the data provided by the remote devices, as
well as reengineering of DONG Energy's business processes. The IBM designed
service-oriented architecture (SOA) IT infrastructure to accommodate the new
processes. SOA makes IT processes far more flexible and scalable, improving DONG
Energy's responsiveness.
Benefits
Potential to reduce outage minutes by 25-50 percent
Fault search time reduced by one-third
Estimated capital savings on planned grid reinforcements of up to 90 percent,
when fully implemented
“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
Solution Components
Global Business Services
IBM Software Group
IBM Business Partner
PowerSense
© 2009 IBM Corporation
IBM Energy & Utilities
CenterPoint Energy
Breaking new ground in grid reliability through the power of automation
The need:
Like the rest of the electric transmission and distribution industry,
Centerpoint Energy needs to deliver power more efficiently and reliably
in the face of growing consumer expectations, environmental concerns
and increasing costs. The company also saw the opportunity to break
new ground in grid management practices.
The solution:
Subject to approval by its regulators, CenterPoint Energy plans to
leverage a mix of leading edge communication technologies, smart
meters and first-of-a-kind process innovations to create one of the
industry’s first intelligent utility networks.
What makes it smarter:
Improved ability to leverage information, make the grid more reliable
and operations more efficient
Reduction in the frequency and duration of power through proactive
management and automated response
Near real-time electric use data provided by smart meters to the
utility and to the consumer
“We expect that the Intelligent Grid
will improve electric power line grid
planning, operations, and
maintenance, enabling us to deliver
power more efficiently. We also expect
the technology to contribute to fewer
and shorter outages.”
—Tom Standish
Group President, Regulated Operations
CenterPoint Energy
Solution components:
IBM Global Business Services
IBM Global Technology Services
IBM Global Technology Services
Strategic Outsourcing
IBM Research
IBM WebSphere® Message Broker
IBM BladeCenter®
IBM Business Partners Itron, Inc.,
eMeter, Corinex, Arteche
© 2009 IBM Corporation
IBM Energy & Utilities
Oncor
IBM is Systems Integrator for smart metering deployment.
Intelligent
Utility Network
What’s smart
Oncor's advanced metering systems deployment is reporting 15-minute interval,
billable quality data to the Texas market, in one of the most comprehensive and largest
deployments of smart grid technologies in the nation and is scheduled to replace 3.4
million standard meters with advanced meter systems by 2012.
Solution
IBM is providing expertise in smart metering and systems integration along with its
understanding of large meter data management, business analytics, and security
solutions.
IBM's Solution Architecture for Energy and Utilities (SAFE) is a software framework
and products such as Data Power, Maximo, Tivoli Identity Manager, Tivoli
Compliance Manager, etc. will enhance the security and reliability of the
information technology solution
In Oncor's Smart Texas(SM) initiative, IBM is responsible for integrating the
complex systems supporting Oncor's advanced meter system deployment
“Achieving the important
step of reporting 15minute interval,
billable-quality data to
the Texas market
wouldn't have been
possible without IBM's
participation.”
Mark Carpenter
VP & CIO, Oncor
Solution Components
Global Business Services
Global Technology Services
IBM Software Group
© 2009 IBM Corporation
Thank you / Takk!
Mozhi Habibi, Global Energy & Utilities Strategy Manager
mhabibi@us.ibm.com
© 2009 IBM Corporation