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Energy and Utilities Solutions  WITA Smart Grid Session  April 6, 2010
Energy and Utilities Solutions  Market Forces Evolving Energy Value Chain IBM’s approach to the E & U industry IBM Solution Portfolio  Solution Centers, Research & Thought Leadership  IBM Smart Grid Maturity Model  IBM & PNNL  Olympic Peninsula Project
Market forces are impacting the landscape of utilities around the world, requiring the transformation of industry business models. Increased pressure on operational efficiency and workforce productivity Climate change and environmental concerns New entrants and disruptive  technologies Aging asset performance with increased expectations on reliability Growth in renewable generation and distributed resources Increasing desire by consumers for a role in energy management and conservation Industry pressures
Market forces & convergence of more active customers has created the need to evolve the traditional energy  value chain  Traditional Industry Value Chain
Towards an industry model with multidirectional flows of information
IBM’s Energy and Utility Solution Portfolio addresses a utility’s business and technology needs across the full energy value chain. Delivery Options Power Generation Optimization  (PGO) Plant Operations Fleet Optimization Supply Expansion Transmission & Distribution Operations Mobile Workforce Mgmt Asset Lifecycle Mgmt Supply Chain Mgmt Corporate Support Services Human Resources Accounting Payroll Customer Operations Transformation (COT) Customer Care Customer Management Customer Systems Intelligent Utility Network (IUN) Infrastructure Servers, storage, communications networks and equipment and associated services Solution Architecture for Energy& Utilities Framework (SAFE) Physical and Cyber Security IUN Communications Networks IUN Security Smart Meter & Beyond Grid Operations Electric Vehicle/Distributed Energy Resources
IBM has worked with clients around the world to develop solutions which transform the energy value chain. CenterPoint Energy Consumers Energy AEP Ontario Energy Board Enemalta ASM Brescia MVV/City of Mannheim EnBW EDISON Red Electrica de Espana Ecotricity Country Energy Energy Australia DTE Energy DONG Energy Oncor Progress Energy Pacific Northwest National Laboratory San Francisco Public Utilities Commission Austin Energy Guangdong Dapeng LNG
IBM E&U Solution Strategy  Comprehensive Industry Knowledge and Analysis. Solution-Driven Strategy Smart grid enablement Modeling, analytics and optimization Renewable and EV integration, optimization Demand response  Interoperability frameworks and messaging Cyber-physical system security Intelligent buildings and green data centers Battery storage for EV Chip and server systems power management  Solution Centers  Solution Experience Lab at IBM Austin  E & U Solution Center at IBM La Gaude  China Development Lab E & U Solution Center  Joint research and pilots Regional Demonstrations, National Labs, Universities, Industry/Client partners.  Committees and standards DOE GridWise Architecture Council NIST SG Working Groups ISO, IEC, IEEE, …
IBM Research is using its considerable capabilities to tackle important smart grid challenges. High-Impedance Fault Detection and Characterization Develop a real time analytics engine for electric power grid diagnostics and optimization based on event data flows to and from sensor, actuator and control systems in the power grid Outage Root Cause Analysis Enable electric utilities to more quickly repair outages by rapidly identifying and repairing damaged network components using general outage root cause analysis regardless of the type of fault Integrated Distribution Outage Planning An innovative software offering to help utilities create an optimized outage plan using analytics and optimization engines to plan the time frame and load transfer paths for outages.  Pacific Northwest Olympic Peninsula and Smart Grid Regional Demonstration Projects Demonstrate demand response to optimize the management of distributed energy resources.  Develop new smart grid technologies in systems of systems architecture and interoperability, demand response, renewable integration, market-based system design, and social computing.
Pacific Northwest National Laboratory Aiming to empower utility customers Business challenge As part of the U.S. Department of Energy’s GridWise® Program, the Pacific Northwest National Laboratory (PNNL) wanted an innovative way to keep the electrical grid healthy in times of stress by managing electrical demand through a combination of intelligent technology and financial incentives. Solution PNNL set up two parallel studies. Smart appliances study: Tested “smart” appliances that could sense & respond to stress on the grid by temporarily  curtailing electricity use.  Virtual marketplace study:  Created a virtual marketplace that allowed consumers to trade flexibility in usage for lower costs.
Pacific Northwest National Laboratory Aiming to empower utility customers Olympic Peninsula Project: Using the free market to manage demand  Teamed with IBM (IBM Waston Research Lab, running IBM WebShere Application Server). Consumers were able to trade flexibility in usage for lower costs.  Preferences were set by customers with the ability to override at any time.  Direct control over customers’ energy use on an individual basis Modify thermostat & water heater settings remotely in response to market rates & customer preference.  Benefits 50 percent reduction in short-term peak electricity distribution loads, helping to avoid power restrictions and cascading blackouts 15 percent decrease in overall peak loads in the course of one year Consumers saved an average of 10 percent on their electricity bills Projection: US$70 billion reduction in infrastructure spending over 20 years through better management of existing resources Solution Components   IBM WebSphere®    Application Server Prototype Internet-scale   control from the IBM Watson   Research Labs “ We’re finding that people  are actually curtailing their  use and saving energy  simply because they have greater control.” –  Don Hammerstrom,  project manager, Pacific Northwest Gridwise Demonstration Projects

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G.E.T. Smart - Smart Grid: IBM Presentation

  • 1. Energy and Utilities Solutions WITA Smart Grid Session April 6, 2010
  • 2. Energy and Utilities Solutions Market Forces Evolving Energy Value Chain IBM’s approach to the E & U industry IBM Solution Portfolio Solution Centers, Research & Thought Leadership IBM Smart Grid Maturity Model IBM & PNNL Olympic Peninsula Project
  • 3. Market forces are impacting the landscape of utilities around the world, requiring the transformation of industry business models. Increased pressure on operational efficiency and workforce productivity Climate change and environmental concerns New entrants and disruptive technologies Aging asset performance with increased expectations on reliability Growth in renewable generation and distributed resources Increasing desire by consumers for a role in energy management and conservation Industry pressures
  • 4. Market forces & convergence of more active customers has created the need to evolve the traditional energy value chain Traditional Industry Value Chain
  • 5. Towards an industry model with multidirectional flows of information
  • 6. IBM’s Energy and Utility Solution Portfolio addresses a utility’s business and technology needs across the full energy value chain. Delivery Options Power Generation Optimization (PGO) Plant Operations Fleet Optimization Supply Expansion Transmission & Distribution Operations Mobile Workforce Mgmt Asset Lifecycle Mgmt Supply Chain Mgmt Corporate Support Services Human Resources Accounting Payroll Customer Operations Transformation (COT) Customer Care Customer Management Customer Systems Intelligent Utility Network (IUN) Infrastructure Servers, storage, communications networks and equipment and associated services Solution Architecture for Energy& Utilities Framework (SAFE) Physical and Cyber Security IUN Communications Networks IUN Security Smart Meter & Beyond Grid Operations Electric Vehicle/Distributed Energy Resources
  • 7. IBM has worked with clients around the world to develop solutions which transform the energy value chain. CenterPoint Energy Consumers Energy AEP Ontario Energy Board Enemalta ASM Brescia MVV/City of Mannheim EnBW EDISON Red Electrica de Espana Ecotricity Country Energy Energy Australia DTE Energy DONG Energy Oncor Progress Energy Pacific Northwest National Laboratory San Francisco Public Utilities Commission Austin Energy Guangdong Dapeng LNG
  • 8. IBM E&U Solution Strategy Comprehensive Industry Knowledge and Analysis. Solution-Driven Strategy Smart grid enablement Modeling, analytics and optimization Renewable and EV integration, optimization Demand response Interoperability frameworks and messaging Cyber-physical system security Intelligent buildings and green data centers Battery storage for EV Chip and server systems power management Solution Centers Solution Experience Lab at IBM Austin E & U Solution Center at IBM La Gaude China Development Lab E & U Solution Center Joint research and pilots Regional Demonstrations, National Labs, Universities, Industry/Client partners. Committees and standards DOE GridWise Architecture Council NIST SG Working Groups ISO, IEC, IEEE, …
  • 9. IBM Research is using its considerable capabilities to tackle important smart grid challenges. High-Impedance Fault Detection and Characterization Develop a real time analytics engine for electric power grid diagnostics and optimization based on event data flows to and from sensor, actuator and control systems in the power grid Outage Root Cause Analysis Enable electric utilities to more quickly repair outages by rapidly identifying and repairing damaged network components using general outage root cause analysis regardless of the type of fault Integrated Distribution Outage Planning An innovative software offering to help utilities create an optimized outage plan using analytics and optimization engines to plan the time frame and load transfer paths for outages. Pacific Northwest Olympic Peninsula and Smart Grid Regional Demonstration Projects Demonstrate demand response to optimize the management of distributed energy resources. Develop new smart grid technologies in systems of systems architecture and interoperability, demand response, renewable integration, market-based system design, and social computing.
  • 10. Pacific Northwest National Laboratory Aiming to empower utility customers Business challenge As part of the U.S. Department of Energy’s GridWise® Program, the Pacific Northwest National Laboratory (PNNL) wanted an innovative way to keep the electrical grid healthy in times of stress by managing electrical demand through a combination of intelligent technology and financial incentives. Solution PNNL set up two parallel studies. Smart appliances study: Tested “smart” appliances that could sense & respond to stress on the grid by temporarily curtailing electricity use. Virtual marketplace study: Created a virtual marketplace that allowed consumers to trade flexibility in usage for lower costs.
  • 11. Pacific Northwest National Laboratory Aiming to empower utility customers Olympic Peninsula Project: Using the free market to manage demand Teamed with IBM (IBM Waston Research Lab, running IBM WebShere Application Server). Consumers were able to trade flexibility in usage for lower costs. Preferences were set by customers with the ability to override at any time. Direct control over customers’ energy use on an individual basis Modify thermostat & water heater settings remotely in response to market rates & customer preference. Benefits 50 percent reduction in short-term peak electricity distribution loads, helping to avoid power restrictions and cascading blackouts 15 percent decrease in overall peak loads in the course of one year Consumers saved an average of 10 percent on their electricity bills Projection: US$70 billion reduction in infrastructure spending over 20 years through better management of existing resources Solution Components IBM WebSphere® Application Server Prototype Internet-scale control from the IBM Watson Research Labs “ We’re finding that people are actually curtailing their use and saving energy simply because they have greater control.” – Don Hammerstrom, project manager, Pacific Northwest Gridwise Demonstration Projects