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IBM Research

Smart Grid: Components and Timing


FERC-NARUC Smart Grid Collaborative
Ron Ambrosio
Global Research Leader, Energy & Utilities Industry
Senior Technical Staff Member
IBM TJ Watson Research Center, Yorktown Heights, NY
U.S. Dept. of Energy GridWise Architecture Council Chairman
IBM Research
2009 IBM Corporation
IS THERE AN OBVIOUS SEQUENCE TO GRID DEVELOPMENT?
What are the key components of a Smart
Grid?
2
IBM Research
2009 IBM Corporation
Many starting points for smart grids
3
Utility Business Functions
Asset Management
Equipment Condition Monitoring
Real time knowledge of asset health,
sweat the assets whilst controlling
operating risks
Increased asset life thru better
management & maintenance
Optimize Capital and O&M spending
Remote management of Sensors/IEDs
Operations Management
Intelligent devices, sensors & meters to
eliminate system "blind spots"
Faster detection and localization of
outages
Better load balancing & maintaining
stability
Locate power quality, reliability & fault
issues before they impact customers
Workforce Management
Reduce frequency and duration of site
visits through remote monitoring and
configuration
Accurate response to outage location &
cause
Better prepared & informed crews
Captures the knowledge of staff
Planning Management
Access to accurate historical operations & asset data
improves grid planning
Optimize CAPEX across grid, defer capital
investments
Accurate design & sizing of new/ replacement
equipment to meet demand / growth
Investment decisions based on customer profile
Customer Experience
Meet Regulator expectations
More choices about price and service
Less intrusion
More information with which to manage
consumption, cost, and other decisions.
Information Management
Provides a common infrastructure for
Utility applications & communications
Access and re-use of common services
Data inputted one time, re-used many
times
Reduced system integration costs
Reduced operating costs
Reduced system maintenance costs
Revenue Management
Intelligent meter a portal to the consumer
Profile of customer usage
Remote connect/disconnect, load control
Assurance of billing/revenues
Customer participation in time based
rates
An intelligent sensor on the grid
IBM Research
2009 IBM Corporation 4
ASM Brescia
Integrated automatic meters increase service, security and revenue
Business challenge
ASM Brescia sought to automate its gas and electricity meter reading
processes. Sending employees out to read meters manually meant the
company was slow to collect revenue and it left too much opportunity for
utility theft. Automating the process would allow the company to remotely
connect and disconnect service, more efficiently monitor usage levels and
reduce customer service costs.
Solution
IBM Business Consulting Services is managing a five-year project to
install a comprehensive automated meter management (AMM) solution.
The project involves integrating more than 200,000 automated electronic
meters in an end-to-end solution that links the meters directly to ASM
Brescia's billing and customer service systems, replacing all of ASM
Brescia's traditional meters by 2006.
Benefits
New integrated meters will enable the company to offer highly
customized, flexible commercial service packages and pricing options
Improved compliance with network monitoring and optimization
regulations
Increased service reliability
Improved fraud/loss management, faster revenue collection
Improved customer service
Solution Components
Global Business Services
IBM WebSphere Software
2007 IBM Corporation
Intelligent Utility Network
IBM Research
2009 IBM Corporation 5
Business challenge
DONG Energy is Denmarks 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
DONG Energy
Making the most of the intelligent electrical grid
Solution Components
Global Business Services
IBM Software Group
IBM Business Partner
PowerSense
Intelligent Utility Network
IBM Research
2009 IBM Corporation 6
Terna
Increased reliability and manageability of their telecommunication infrastructure
Business challenge
After a major 2003 blackout in Italy, Terna discovered that it had a
transmission problem that was due to loss of telecommunications signaling in
the leased lines it used to monitor and manage its network. To improve the
reliability of the network, Terna needed a new and advanced backup system
to eliminate weak points and a centralized monitoring solution for its 300 field
stations.
Solution
Back-up IP network over power lines supplements superior MPLS
functionality
Forward Error Control patch-panel solution with Asset Lifecycle
Management
Joint Cisco-IBM team covering development, implementation and
maintenance
Benefits
Improved safety and security across entire nationwide high-voltage
network
New equipment costs at field stations cut by 90 percent
Low-maintenance costs
Digital solution will allow central monitoring and control of electrical line
In the energy sector,
many of the technologies
are very old and they are
not open. We spotted the
opportunity to create a
way of dealing with our
telecommunications that
would get rid of a closed
technology a custom
componentand instead
integrate solutions on an
open standard platform,
like the Cisco MPLS
network we are now
deploying.
Carmine Auletta,
CTO, Terna
Solution Components
Global Technology Services
Intelligent Utility Network
IBM Research
2009 IBM Corporation
THE SMART GRID MATURITY MODEL
How some utilities are planning their smart
grid roadmaps and investments
7
IBM Research
2009 IBM Corporation 8
Global Intelligent Utility Network Coalition
COALITION KNOWLEDGE TRANSFER
Formal knowledge sharing sessions organized
covering key topics:
Fault Location
Automated Metering
Business Benefits Repository
Demo Centers
Advanced collaboration tools enable members to
present and share their expertise
COALITION DEVELOPMENT PROJECTS
The Coalition is jointly developing the following
thought leadership projects
Business Models of the Future
Embedded & Distributed Generation
Messaging
Smart Grid Maturity Model
Project deliverables and assets will likely be shared
with industry as appropriate
- Smart Grid Maturity Model already made available to industry
MEMBER UPDATE
Seven leading utilities have joined the coalition:
CNP...Q1 07 / USA
PHI ... Q2 07 / USA
Sempra Q4 07 / USA
Country Energy .. Q4 07 / Australia
Progress Energy .Q2 08 / USA
DONG Energy .Q2 08 / Denmark
NDPL Q3 08 / India
Two final coalition members will join in late
2008/early 2009:
1 SW Europe Q4 08 / Q1 09
1 China/Japan/Asia Pacific . Q4 08 / Q1 09
Country
Energy
NDPL
DONG
Energy
PHI
PGN
Sempra
CNP
A TRULY GLOBAL COALITION -- Serving 46m
Electric & Natural Gas Consumers
9
Copyright APQC 2008. All Rights Reserved
Why was a Smart Grid Maturity Model Needed?
A maturity model can move an entire industry forward
> To establish a shared picture of the Smart Grid journey
> To communicate the Smart Grid vision, internally and externally
> To assess current opportunities, choices and desired levels
> To use as a strategic and decision making framework
> To develop business, investment and rate cases
> To build an explicit plan to move from one level to another
> To measure progress using Key Performance Indicators (KPIs)
> To benchmark and learn from others
It is not a tool for assessing utilities against each other
10
Copyright APQC 2008. All Rights Reserved
The Heart of Smart Grid Maturity Model
- Exploring strategic IT arch. for SG
- Change control process for IT for SG
- Identifying uses of technology to
improve functional performance
- Developing processes to evaluate
technologies for SG
- Tactical IT investments aligned to
strategic IT architecture within a LOB
- Common selection process applied
- Common architectural vision and
commitment to standards across LOBs
- Conceptual data comms. strategy
- IED connectivity and business pilots
- Implementing information security
- SG impacted business processes
aligned with IT architecture across LOBs
- Common architectural framework e.g.
standards, common data models, etc.
- Use of advanced intelligence/analytics
- Advanced sensor plan (e.g. PMUs)
- Implementing SG technology to
improve cross LOB performance
- Data comms. detailed strategy/tactics
- Data flows end to end (e.g. customer
to generation)
- Enterprise business processes
optimized with strategic IT architecture
- Real world aware systems - complex
event processing, monitoring and control
- Predictive modeling and near real-time
simulation, analytics drives optimization
- Enterprise-wide security implemented
- Autonomic computing, machine
learning
- Pervasive use and leadership on
standards
- Leader and influence in conferences
and industry groups, etc
- Leading edge grid stability systems
- Articulated need to change
- Executive commitment to change
- Culture of individual initiatives and
discoveries
- Knowledge growing; possibly
compartmentalized (i.e. in silos)
- New vision influences change
- Organizing more around operational
end-to-end processes (e.g. breaking silos)
- Matrix teams for planning and design of
SG initiatives across LOBs
- Evaluating performance and
compensation for Smart Grid
- SG is driver for org. change (addressing
aging workforce, culture issues, etc.)
- SG measures on balanced scorecard
- Performance and compensation linked
to SG success
- Consistent SG leadership cross LOBs
- Org. is adopting a matrix or overlay
structure
- Culture of collaboration and integration
- Integrated systems and control drive
organizational transformation
- End to end grid observability allows
organizational leverage by stakeholders
- Organization flattens
- Significant restructuring likely occurs
now (tuning to leverage new SG
capabilities and processes)
- Collaboratively engage all stakeholders
in all aspects of transformed business
- Organizational changes support new
ventures and services that emerge
- Entrepreneurial mind set, Culture of
innovation
- Awareness of issues and utilitys role in
addressing the issues
- Environmental compliance
- Initiating conservation, efficiency,
green
- Renewables program
- Developing first SG vision
- Support for experimentation
- Informal discussion with regulators
- Funding likely out of existing budget
1
- Established energy efficiency programs
for customers
- Triple bottom line" view (financial,
environmental and societal)
- Environmental proof of concepts
underway
- Consumption information provided to
customers
- Integrated vision & acknowledgement
- Initial strategy / business plan approved
- Initial alignment of investments to vision
- Distinct SG set-aside funding / budget
- Collaboration with regulators and
stakeholders
- Commitment to proof of concepts
- Identify initial SG leader
2
- Active programs to address issue
- Segmented & tailored information for
customers including environmental and
social benefits
- Programs to encourage off-peak usage
- Integrated reporting of sustainability and
impact
- Synthesize triple bottom line view
across LOBs
- Completed SG strategy and business
case incorporated into corp. strategy
- SG governance model deployed
- SG Leader(s) (with authority) ensure
cross LOB application of SG
- Mandate/consensus with regulators to
make and fund SG investments
- Corp. strategy expanded to leverage
new SG enabled services or offerings
3
- Collaboration with external stakeholders
- Environmentally driven investments
(aligned with SG strategy)
- Environmental scorecard/reporting
- Programs to shave peak demand
- Ability to scale DG units
- Available active mgmt. of end user
energy uses and devices
- SG drives strategy and influences
corporate direction
- SG is a core competency
- External stakeholders share in strategy
- Willing to invest and divest, or engage in
JV and IP sharing to execute strategy
- Now enabled for enhanced mkt driven or
innovative regulatory funding schemes
4
- Actualize the "triple bottom line-
(financial, environmental and societal)
- Customers enabled to manage their
own usage (e.g. tools and self-adaptive
networks)
- Tailored analytics and advice to
customers
- Managing distributed generation
- Overall strategy expanded due to SG
capabilities
- Optimized rate design/regulatory policy
(most beneficial regulatory treatment for
investments made)
- New business model opportunities
present themselves and are implemented
5
- Exploring strategic IT arch. for SG
- Change control process for IT for SG
- Identifying uses of technology to
improve functional performance
- Developing processes to evaluate
technologies for SG
- Tactical IT investments aligned to
strategic IT architecture within a LOB
- Common selection process applied
- Common architectural vision and
commitment to standards across LOBs
- Conceptual data comms. strategy
- IED connectivity and business pilots
- Implementing information security
- SG impacted business processes
aligned with IT architecture across LOBs
- Common architectural framework e.g.
standards, common data models, etc.
- Use of advanced intelligence/analytics
- Advanced sensor plan (e.g. PMUs)
- Implementing SG technology to
improve cross LOB performance
- Data comms. detailed strategy/tactics
- Data flows end to end (e.g. customer
to generation)
- Enterprise business processes
optimized with strategic IT architecture
- Real world aware systems - complex
event processing, monitoring and control
- Predictive modeling and near real-time
simulation, analytics drives optimization
- Enterprise-wide security implemented
- Autonomic computing, machine
learning
- Pervasive use and leadership on
standards
- Leader and influence in conferences
and industry groups, etc
- Leading edge grid stability systems
- Articulated need to change
- Executive commitment to change
- Culture of individual initiatives and
discoveries
- Knowledge growing; possibly
compartmentalized (i.e. in silos)
- New vision influences change
- Organizing more around operational
end-to-end processes (e.g. breaking silos)
- Matrix teams for planning and design of
SG initiatives across LOBs
- Evaluating performance and
compensation for Smart Grid
- SG is driver for org. change (addressing
aging workforce, culture issues, etc.)
- SG measures on balanced scorecard
- Performance and compensation linked
to SG success
- Consistent SG leadership cross LOBs
- Org. is adopting a matrix or overlay
structure
- Culture of collaboration and integration
- Integrated systems and control drive
organizational transformation
- End to end grid observability allows
organizational leverage by stakeholders
- Organization flattens
- Significant restructuring likely occurs
now (tuning to leverage new SG
capabilities and processes)
- Collaboratively engage all stakeholders
in all aspects of transformed business
- Organizational changes support new
ventures and services that emerge
- Entrepreneurial mind set, Culture of
innovation
- Awareness of issues and utilitys role in
addressing the issues
- Environmental compliance
- Initiating conservation, efficiency,
green
- Renewables program
- Developing first SG vision
- Support for experimentation
- Informal discussion with regulators
- Funding likely out of existing budget
1
- Established energy efficiency programs
for customers
- Triple bottom line" view (financial,
environmental and societal)
- Environmental proof of concepts
underway
- Consumption information provided to
customers
- Integrated vision & acknowledgement
- Initial strategy / business plan approved
- Initial alignment of investments to vision
- Distinct SG set-aside funding / budget
- Collaboration with regulators and
stakeholders
- Commitment to proof of concepts
- Identify initial SG leader
2
- Active programs to address issue
- Segmented & tailored information for
customers including environmental and
social benefits
- Programs to encourage off-peak usage
- Integrated reporting of sustainability and
impact
- Synthesize triple bottom line view
across LOBs
- Completed SG strategy and business
case incorporated into corp. strategy
- SG governance model deployed
- SG Leader(s) (with authority) ensure
cross LOB application of SG
- Mandate/consensus with regulators to
make and fund SG investments
- Corp. strategy expanded to leverage
new SG enabled services or offerings
3
- Collaboration with external stakeholders
- Environmentally driven investments
(aligned with SG strategy)
- Environmental scorecard/reporting
- Programs to shave peak demand
- Ability to scale DG units
- Available active mgmt. of end user
energy uses and devices
- SG drives strategy and influences
corporate direction
- SG is a core competency
- External stakeholders share in strategy
- Willing to invest and divest, or engage in
JV and IP sharing to execute strategy
- Now enabled for enhanced mkt driven or
innovative regulatory funding schemes
4
- Actualize the "triple bottom line-
(financial, environmental and societal)
- Customers enabled to manage their
own usage (e.g. tools and self-adaptive
networks)
- Tailored analytics and advice to
customers
- Managing distributed generation
- Overall strategy expanded due to SG
capabilities
- Optimized rate design/regulatory policy
(most beneficial regulatory treatment for
investments made)
- New business model opportunities
present themselves and are implemented
5
Organization
& Structure
Strategy,
Management
& Regulatory
Societal &
Environmental
Technology
The Smart Grid
Maturity Model
- Research on how to reshape the
customer experience through SG
- Broad customer segmentation (e.g.
geography, income)
- Load management in place for C&I
- Reactive customer experience
- Piloting AMI/AMR
- Modeling of reliability issues to drive
investments for improvements
- Piloted remote disconnect/connect
- More frequent customer usage data
- Assessing impact of new services and
delivery processes (e.g. HAN)
- High degree customer segmentat ion
- Two-way meter, remote disconnect &
connect, and remote load control
- Outage detection at substation
- Common customer experience
- Customer participation in DR enabled
- New interactive products/services
- Predictive customer experience
- Usage analysis within pricing programs
- Circuit level outage detection/notification
- Net billing programs in the home
- Automated response to pricing signals
- Common customer experience
integrated across all channels
- Recent customer usage data (e.g. daily)
- Behavior modeling augments customer
segmentation
- Customer management of their end to
end energy supply and usage level
- Outage detection at residence/device
- Plug-n-play customer based generation
- Near real-time data on customer usage
- Consumption level by device available
- Mobility and CO2 programs
- Conducting value analysis for new
systems
- Exploring RAM (Remote Asset
Monitoring), beyond SCADA
- Exploring proactive/predictive asset
maintenance
- Exploring using spatial view of assets
- Developing mobile workforce strategy
- Approach for tracking, inventory and
event history of assets under
development
- Developing an integrated view of GIS
and RAM with location, status and nodal
interconnectivity
- Component performance and trend
analysis
- Developing CBM (Condition Based
Mgmt.) on key components
-Integrating RAM to asset mgmt, mobile
work force and work order creation
- Tracking inventory, source to utilization
- Modeling asset investments for key
components based on SG data
- Enterprise view of assets: location,
status, interrelationships, connectivity and
proximity
- Asset models reality based (real data)
- Optimization across fleet of assets
- CBM and predictive management on
key components
- Efficient inventory management utilizing
real asset status and modeling
- Optimizing the use of assets between
and across supply chain participants
- Just in time retirement of assets
- Enterprise-wide abstract representation
of assets for investment decisions
- Identified assets and programs within
value chain to facilitate load management
programs
- Identified distributed generation sources
and existing capabilities to support
- Develop strategy for diverse resource
portfolio
- Exploring new sensors, switches,
comms. devices and technologies
- Proof of concepts / component testing
- Exploring outage & distribution mgmt.
linked to sub-station automation
- Building business case at functional
level
- Safety & physical security
- Introducing support for home energy
management systems
- Redefine value chain to include entire
eco-system (RTOs, customers, suppliers)
- Pilot investments to support utilization of
a diverse resource portfolio
- Programs to promote customer DG
- Initial distribution to sub-station
automation projects
- Implementing advanced outage
restoration schemes
- Piloting remote monitoring on key assets
(RAM) for manual decision making
- Expanding and investing in extended
communications networks
- Integrated resource plan includes new
targeted resources and technologies (e.g.
DR, DG, volt/VAR)
- Enabling market and consumption
information for use by customer energy
mgmt systems
- New resources available as substitute
for market products to meet reliability
objectives
- Sharing data across functions/systems
- Implementing control analytics to
support decisions & system calculations
- Move from estimation to fact-based
planning
- The customer meter becomes an
essential grid management sensor
- New process being defined due to
increased automation and observability
- Energy resources dispatchable/tradable,
utility realizes gain from ancillary services
(e.g. power on demand)
- Portfolio optimization modeling
expanded for new resources and real
time markets.
- Ability to communicate with HAN (Home
Area Network), incl. visibility and control
of customer large demand appliances
- Integration into enterprise processes
- Dynamic grid management
- Tactical forecasts based on real data
- Information available across enterprise
through end-to-end observability
- Automated decision making within
protection schemes (leveraging increased
analytics capabilities and context)
- Coordinated energy management and
generation throughout the supply chain
- Coordinated control of entire energy
assets
- Dispatchable recourses are available for
increasingly granular market options
(e.g. LMP Locational Marginal Pricing)
- Grid employs self-healing capabilities
- Automated grid decisions system wide
(applying proven analytic based controls)
- Optimized rate design/regulatory policy
- Ubiquitous system wide dynamic control
- Research on how to reshape the
customer experience through SG
- Broad customer segmentation (e.g.
geography, income)
- Load management in place for C&I
- Reactive customer experience
- Piloting AMI/AMR
- Modeling of reliability issues to drive
investments for improvements
- Piloted remote disconnect/connect
- More frequent customer usage data
- Assessing impact of new services and
delivery processes (e.g. HAN)
- High degree customer segmentat ion
- Two-way meter, remote disconnect &
connect, and remote load control
- Outage detection at substation
- Common customer experience
- Customer participation in DR enabled
- New interactive products/services
- Predictive customer experience
- Usage analysis within pricing programs
- Circuit level outage detection/notification
- Net billing programs in the home
- Automated response to pricing signals
- Common customer experience
integrated across all channels
- Recent customer usage data (e.g. daily)
- Behavior modeling augments customer
segmentation
- Customer management of their end to
end energy supply and usage level
- Outage detection at residence/device
- Plug-n-play customer based generation
- Near real-time data on customer usage
- Consumption level by device available
- Mobility and CO2 programs
- Conducting value analysis for new
systems
- Exploring RAM (Remote Asset
Monitoring), beyond SCADA
- Exploring proactive/predictive asset
maintenance
- Exploring using spatial view of assets
- Developing mobile workforce strategy
- Approach for tracking, inventory and
event history of assets under
development
- Developing an integrated view of GIS
and RAM with location, status and nodal
interconnectivity
- Component performance and trend
analysis
- Developing CBM (Condition Based
Mgmt.) on key components
-Integrating RAM to asset mgmt, mobile
work force and work order creation
- Tracking inventory, source to utilization
- Modeling asset investments for key
components based on SG data
- Enterprise view of assets: location,
status, interrelationships, connectivity and
proximity
- Asset models reality based (real data)
- Optimization across fleet of assets
- CBM and predictive management on
key components
- Efficient inventory management utilizing
real asset status and modeling
- Optimizing the use of assets between
and across supply chain participants
- Just in time retirement of assets
- Enterprise-wide abstract representation
of assets for investment decisions
- Identified assets and programs within
value chain to facilitate load management
programs
- Identified distributed generation sources
and existing capabilities to support
- Develop strategy for diverse resource
portfolio
- Exploring new sensors, switches,
comms. devices and technologies
- Proof of concepts / component testing
- Exploring outage & distribution mgmt.
linked to sub-station automation
- Building business case at functional
level
- Safety & physical security
- Introducing support for home energy
management systems
- Redefine value chain to include entire
eco-system (RTOs, customers, suppliers)
- Pilot investments to support utilization of
a diverse resource portfolio
- Programs to promote customer DG
- Initial distribution to sub-station
automation projects
- Implementing advanced outage
restoration schemes
- Piloting remote monitoring on key assets
(RAM) for manual decision making
- Expanding and investing in extended
communications networks
- Integrated resource plan includes new
targeted resources and technologies (e.g.
DR, DG, volt/VAR)
- Enabling market and consumption
information for use by customer energy
mgmt systems
- New resources available as substitute
for market products to meet reliability
objectives
- Sharing data across functions/systems
- Implementing control analytics to
support decisions & system calculations
- Move from estimation to fact-based
planning
- The customer meter becomes an
essential grid management sensor
- New process being defined due to
increased automation and observability
- Energy resources dispatchable/tradable,
utility realizes gain from ancillary services
(e.g. power on demand)
- Portfolio optimization modeling
expanded for new resources and real
time markets.
- Ability to communicate with HAN (Home
Area Network), incl. visibility and control
of customer large demand appliances
- Integration into enterprise processes
- Dynamic grid management
- Tactical forecasts based on real data
- Information available across enterprise
through end-to-end observability
- Automated decision making within
protection schemes (leveraging increased
analytics capabilities and context)
- Coordinated energy management and
generation throughout the supply chain
- Coordinated control of entire energy
assets
- Dispatchable recourses are available for
increasingly granular market options
(e.g. LMP Locational Marginal Pricing)
- Grid employs self-healing capabilities
- Automated grid decisions system wide
(applying proven analytic based controls)
- Optimized rate design/regulatory policy
- Ubiquitous system wide dynamic control
Work & Asset
Management
Grid
Operations
Value Chain
Integration
Customer
Management
& Experience
8 Domains - logical groupings of functional components
of a smart grid transformation implementation
200 Characteristics capabilities you would expect to
see at each stage of the smart grid journey
5 Maturity Levels defined sets of
characteristics and outcomes
is built on 3 concepts
Qualitative
Characteristics
Org. is adopting a
matrix or overlay
structure
Quantitative
Characteristics
Indicate the percentage
of encrypted
communications
Required
Characteristics
Tracking inventory,
source to utilization
Descriptive or Desired Traits
(blue text)
New processes emerge due
to Increased automation and
observability
11
Copyright APQC 2008. All Rights Reserved
Smart Grid Maturity Model Levels, Descriptions and Results
Level 1:
Exploring and
Initiating
Contemplating Smart Grid transformation. May
have vision, but no strategy yet. Exploring
options. Evaluating business cases, technologies.
Might have elements already deployed.
Level 2:
Functional
investing
Making decisions, at least at functional level.
Business cases in place, investments being made.
One or more functional deployments under way
with value being realized. Strategy in place.
Level 3:
Integrating
Cross
Functional
Smart Grid spreads. Operational linkages
established between two or more functional areas.
Management ensures decisions span functional
interests, resulting in cross functional benefits.
Level 4:
Optimizing
Enterprise
Wide
Smart Grid functionality and benefits realized.
Management and operational systems rely on and
take full advantage of observability and integrated
control across and between enterprise functions.
Level 5:
Innovating
Next wave of
improvements
New business, operational, environmental and
societal opportunities present themselves, and the
capability exists to take advantage of them.
Vision
Strategy
Systemization
Transformation
Perpetual Innovation
Prophets, Heroes
Missionaries
Cross LOB Champions
Victors
Innovators
Experiments
Proof of Concepts
Repeatable practices
Shared information
Real time corrections
Broad reuse
Self-healing operations
Autonomic business
12
Copyright APQC 2008. All Rights Reserved
3
Eight smart grid domains and important elements
Societal and
Environmental
Technology
Information, engineering, integration of
information and operational technology,
standards, and business analytics tools
Conservation and green initiatives,
sustainability, economics and ability to
integrate alternative and distributed energy
People and Technology Domains
Strategy, Management
and Regulatory
Organization
Vision, planning, decision making,
strategy execution and discipline,
regulatory, investment process
.
Communications, culture, structure
Work and Asset
Management
Grid Operations
Value Chain Integration
Customer Management
and Experience
Optimizing the assets and resources
(people and equipment)
Advanced grid observability & advanced
grid control, quality and reliability
Enabling demand and supply
management, distributed generation,
load management, leveraging market
opportunities
Retail, customer care, pricing options and
control, advanced services and visibility
into utilization quality, and performance
Process Domains
1
2
4
7
5
6
8
13
Copyright APQC 2008. All Rights Reserved
The heart of the model - smart grid characteristics
- Research on how to reshape the
customer experience through SG
- Broad customer segmentation (e.g.
geography, income)
- Load management in place for C&I
- Reactive customer experience
- Piloting AMI/AMR
- Modeling of reliability issues to drive
investments for improvements
- Piloted remote disconnect/connect
- More frequent customer usage data
- Assessing impact of new services and
delivery processes (e.g. HAN)
- High degree customer segmentat i on
- Two-way meter, remote disconnect &
connect, and remote load control
- Outage detection at substation
- Common customer experience
- Customer participation in DR enabled
- New interactive products/services
- Predictive customer experience
- Usage analysis within pricing programs
- Circuit level outage detection/notification
- Net billing programs in the home
- Automated response to pricing signals
- Common customer experience
integrated across all channels
- Recent customer usage data (e.g. daily)
- Behavior modeling augments customer
segmentation
- Customer management of their end to
end energy supply and usage level
- Outage detection at residence/device
- Plug-n-play customer based generation
- Near real-time data on customer usage
- Consumption level by device available
- Mobility and CO2 programs
- Conducting value analysis for new
systems
- Exploring RAM (Remote Asset
Monitoring), beyond SCADA
- Exploring proactive/predictive asset
maintenance
- Exploring using spatial view of assets
- Developing mobile workforce strategy
- Approach for tracking, inventory and
event history of assets under
development
- Developing an integrated view of GIS
and RAM with location, status and nodal
interconnectivity
- Component performance and trend
analysis
- Developing CBM (Condition Based
Mgmt.) on key components
-Integrating RAM to asset mgmt, mobile
work force and work order creation
- Tracking inventory, source to utilization
- Modeling asset investments for key
components based on SG data
- Enterprise view of assets: location,
status, interrelationships, connectivity and
proximity
- Asset models reality based (real data)
- Optimization across fleet of assets
- CBM and predictive management on
key components
- Efficient inventory management utilizing
real asset status and modeling
- Optimizing the use of assets between
and across supply chain participants
- Just in time retirement of assets
- Enterprise-wide abstract representation
of assets for investment decisions
- Identified assets and programs within
value chain to facilitate load management
programs
- Identified distributed generation sources
and existing capabilities to support
- Develop strategy for diverse resource
portfolio
- Exploring new sensors, switches,
comms. devices and technologies
- Proof of concepts / component testing
- Exploring outage & distribution mgmt.
linked to sub-station automation
- Building business case at functional
level
- Safety & physical security
- Introducing support for home energy
management systems
- Redefine value chain to include entire
eco-system (RTOs, customers, suppliers)
- Pilot investments to support utilization of
a diverse resource portfolio
- Programs to promote customer DG
- Initial distribution to sub-station
automation projects
- Implementing advanced outage
restoration schemes
- Piloting remote monitoring on key assets
(RAM) for manual decision making
- Expanding and investing in extended
communications networks
- Integrated resource plan includes new
targeted resources and technologies (e.g.
DR, DG, volt/VAR)
- Enabling market and consumption
information for use by customer energy
mgmt systems
- New resources available as substitute
for market products to meet reliability
objectives
- Sharing data across functions/systems
- Implementing control analytics to
support decisions & system calculations
- Move from estimation to fact-based
planning
- The customer meter becomes an
essential grid management sensor
- New process being defined due to
increased automation and observability
- Energy resources dispatchable/tradable,
utility realizes gain from ancillary services
(e.g. power on demand)
- Portfolio optimization modeling
expanded for new resources and real
time markets.
- Ability to communicate with HAN (Home
Area Network), incl. visibility and control
of customer large demand appliances
- Integration into enterprise processes
- Dynamic grid management
- Tactical forecasts based on real data
- Information available across enterprise
through end-to-end observability
- Automated decision making within
protection schemes (leveraging increased
analytics capabilities and context)
- Coordinated energy management and
generation throughout the supply chain
- Coordinated control of entire energy
assets
- Dispatchable recourses are available for
increasingly granular market options
(e.g. LMP Locational Marginal Pricing)
- Grid employs self-healing capabilities
- Automated grid decisions system wide
(applying proven analytic based controls)
- Optimized rate design/regulatory policy
- Ubiquitous system wide dynamic control
- Research on how to reshape the
customer experience through SG
- Broad customer segmentation (e.g.
geography, income)
- Load management in place for C&I
- Reactive customer experience
- Piloting AMI/AMR
- Modeling of reliability issues to drive
investments for improvements
- Piloted remote disconnect/connect
- More frequent customer usage data
- Assessing impact of new services and
delivery processes (e.g. HAN)
- High degree customer segmentat i on
- Two-way meter, remote disconnect &
connect, and remote load control
- Outage detection at substation
- Common customer experience
- Customer participation in DR enabled
- New interactive products/services
- Predictive customer experience
- Usage analysis within pricing programs
- Circuit level outage detection/notification
- Net billing programs in the home
- Automated response to pricing signals
- Common customer experience
integrated across all channels
- Recent customer usage data (e.g. daily)
- Behavior modeling augments customer
segmentation
- Customer management of their end to
end energy supply and usage level
- Outage detection at residence/device
- Plug-n-play customer based generation
- Near real-time data on customer usage
- Consumption level by device available
- Mobility and CO2 programs
- Conducting value analysis for new
systems
- Exploring RAM (Remote Asset
Monitoring), beyond SCADA
- Exploring proactive/predictive asset
maintenance
- Exploring using spatial view of assets
- Developing mobile workforce strategy
- Approach for tracking, inventory and
event history of assets under
development
- Developing an integrated view of GIS
and RAM with location, status and nodal
interconnectivity
- Component performance and trend
analysis
- Developing CBM (Condition Based
Mgmt.) on key components
-Integrating RAM to asset mgmt, mobile
work force and work order creation
- Tracking inventory, source to utilization
- Modeling asset investments for key
components based on SG data
- Enterprise view of assets: location,
status, interrelationships, connectivity and
proximity
- Asset models reality based (real data)
- Optimization across fleet of assets
- CBM and predictive management on
key components
- Efficient inventory management utilizing
real asset status and modeling
- Optimizing the use of assets between
and across supply chain participants
- Just in time retirement of assets
- Enterprise-wide abstract representation
of assets for investment decisions
- Identified assets and programs within
value chain to facilitate load management
programs
- Identified distributed generation sources
and existing capabilities to support
- Develop strategy for diverse resource
portfolio
- Exploring new sensors, switches,
comms. devices and technologies
- Proof of concepts / component testing
- Exploring outage & distribution mgmt.
linked to sub-station automation
- Building business case at functional
level
- Safety & physical security
- Introducing support for home energy
management systems
- Redefine value chain to include entire
eco-system (RTOs, customers, suppliers)
- Pilot investments to support utilization of
a diverse resource portfolio
- Programs to promote customer DG
- Initial distribution to sub-station
automation projects
- Implementing advanced outage
restoration schemes
- Piloting remote monitoring on key assets
(RAM) for manual decision making
- Expanding and investing in extended
communications networks
- Integrated resource plan includes new
targeted resources and technologies (e.g.
DR, DG, volt/VAR)
- Enabling market and consumption
information for use by customer energy
mgmt systems
- New resources available as substitute
for market products to meet reliability
objectives
- Sharing data across functions/systems
- Implementing control analytics to
support decisions & system calculations
- Move from estimation to fact-based
planning
- The customer meter becomes an
essential grid management sensor
- New process being defined due to
increased automation and observability
- Energy resources dispatchable/tradable,
utility realizes gain from ancillary services
(e.g. power on demand)
- Portfolio optimization modeling
expanded for new resources and real
time markets.
- Ability to communicate with HAN (Home
Area Network), incl. visibility and control
of customer large demand appliances
- Integration into enterprise processes
- Dynamic grid management
- Tactical forecasts based on real data
- Information available across enterprise
through end-to-end observability
- Automated decision making within
protection schemes (leveraging increased
analytics capabilities and context)
- Coordinated energy management and
generation throughout the supply chain
- Coordinated control of entire energy
assets
- Dispatchable recourses are available for
increasingly granular market options
(e.g. LMP Locational Marginal Pricing)
- Grid employs self-healing capabilities
- Automated grid decisions system wide
(applying proven analytic based controls)
- Optimized rate design/regulatory policy
- Ubiquitous system wide dynamic control
Work & Asset
Management
Grid
Operations
Value Chain
Integration
Customer
Management
& Experience
- Exploring strategic IT arch. for SG
- Change control process for IT for SG
- Identifying uses of technology to
improve functional performance
- Developing processes to evaluate
technologies for SG
- Tactical IT investments aligned to
strategic IT architecture within a LOB
- Common selection process applied
- Common architectural vision and
commitment to standards across LOBs
- Conceptual data comms. strategy
- IED connectivity and business pilots
- Implementing information security
- SG impacted business processes
aligned with IT architecture across LOBs
- Common architectural framework e.g.
standards, common data models, etc.
- Use of advanced intelligence/analytics
- Advanced sensor plan (e.g. PMUs)
- Implementing SG technology to
improve cross LOB performance
- Data comms. detailed strategy/tactics
- Data flows end to end (e.g. customer
to generation)
- Enterprise business processes
optimized with strategic IT architecture
- Real world aware systems - complex
event processing, monitoring and control
- Predictive modeling and near real-time
simulation, analytics drives optimization
- Enterprise-wide security implemented
- Autonomic computing, machine
learning
- Pervasive use and leadership on
standards
- Leader and influence in conferences
and industry groups, etc
- Leading edge grid stability systems
- Articulated need to change
- Executive commitment to change
- Culture of individual initiatives and
discoveries
- Knowledge growing; possibly
compartmentalized (i.e. in silos)
- New vision influences change
- Organizing more around operational
end-to-end processes (e.g. breaking silos)
- Matrix teams for planning and design of
SG initiatives across LOBs
- Evaluating performance and
compensation for Smart Grid
- SG is driver for org. change (addressing
aging workforce, culture issues, etc.)
- SG measures on balanced scorecard
- Performance and compensation linked
to SG success
- Consistent SG leadership cross LOBs
- Org. is adopting a matrix or overlay
structure
- Culture of collaboration and integration
- Integrated systems and control drive
organizational transformation
- End to end grid observability allows
organizational leverage by stakeholders
- Organization flattens
- Significant restructuring likely occurs
now (tuning to leverage new SG
capabilities and processes)
- Collaboratively engage all stakeholders
in all aspects of transformed business
- Organizational changes support new
ventures and services that emerge
- Entrepreneurial mind set, Culture of
innovation
- Awareness of issues and utilitys role in
addressing the issues
- Environmental compliance
- Initiating conservation, efficiency,
green
- Renewables program
- Developing first SG vision
- Support for experimentation
- Informal discussion with regulators
- Funding likely out of existing budget
1
Expl oring
and
Initiating
- Established energy efficiency programs
for customers
- Triple bottom line" view (financial,
environmental and societal)
- Environmental proof of concepts
underway
- Consumption information provided to
customers
- Integrated vision & acknowledgement
- Initial strategy / business plan approved
- Initial alignment of investments to vision
- Distinct SG set-aside funding / budget
- Collaboration with regulators and
stakeholders
- Commitment to proof of concepts
- Identify initial SG leader
2
Functional
Investing
- Active programs to address issue
- Segmented & tailored information for
customers including environmental and
social benefits
- Programs to encourage off-peak usage
- Integrated reporting of sustainability and
impact
- Synthesize triple bottom line view
across LOBs
- Completed SG strategy and business
case incorporated into corp. strategy
- SG governance model deployed
- SG Leader(s) (with authority) ensure
cross LOB application of SG
- Mandate/consensus with regulators to
make and fund SG investments
- Corp. strategy expanded to leverage
new SG enabled services or offerings
3
Integrati ng
Cross
Functional
- Collaboration with external stakeholders
- Environmentally driven investments
(aligned with SG strategy)
- Environmental scorecard/reporting
- Programs to shave peak demand
- Ability to scale DG units
- Available active mgmt. of end user
energy uses and devices
- SG drives strategy and influences
corporate direction
- SG is a core competency
- External stakeholders share in strategy
- Willing to invest and divest, or engage in
JV and IP sharing to execute strategy
- Now enabled for enhanced mkt driven or
innovative regulatory funding schemes
4
Optimizi ng
Enterprise
Wide
- Actualize the "triple bottom line-
(financial, environmental and societal)
- Customers enabled to manage their
own usage (e.g. tools and self-adaptive
networks)
- Tailored analytics and advice to
customers
- Managing distributed generation
- Overall strategy expanded due to SG
capabilities
- Optimized rate design/regulatory policy
(most beneficial regulatory treatment for
investments made)
- New business model opportunities
present themselves and are implemented
5
Innovating
Next Wave
Improvements
- Exploring strategic IT arch. for SG
- Change control process for IT for SG
- Identifying uses of technology to
improve functional performance
- Developing processes to evaluate
technologies for SG
- Tactical IT investments aligned to
strategic IT architecture within a LOB
- Common selection process applied
- Common architectural vision and
commitment to standards across LOBs
- Conceptual data comms. strategy
- IED connectivity and business pilots
- Implementing information security
- SG impacted business processes
aligned with IT architecture across LOBs
- Common architectural framework e.g.
standards, common data models, etc.
- Use of advanced intelligence/analytics
- Advanced sensor plan (e.g. PMUs)
- Implementing SG technology to
improve cross LOB performance
- Data comms. detailed strategy/tactics
- Data flows end to end (e.g. customer
to generation)
- Enterprise business processes
optimized with strategic IT architecture
- Real world aware systems - complex
event processing, monitoring and control
- Predictive modeling and near real-time
simulation, analytics drives optimization
- Enterprise-wide security implemented
- Autonomic computing, machine
learning
- Pervasive use and leadership on
standards
- Leader and influence in conferences
and industry groups, etc
- Leading edge grid stability systems
- Articulated need to change
- Executive commitment to change
- Culture of individual initiatives and
discoveries
- Knowledge growing; possibly
compartmentalized (i.e. in silos)
- New vision influences change
- Organizing more around operational
end-to-end processes (e.g. breaking silos)
- Matrix teams for planning and design of
SG initiatives across LOBs
- Evaluating performance and
compensation for Smart Grid
- SG is driver for org. change (addressing
aging workforce, culture issues, etc.)
- SG measures on balanced scorecard
- Performance and compensation linked
to SG success
- Consistent SG leadership cross LOBs
- Org. is adopting a matrix or overlay
structure
- Culture of collaboration and integration
- Integrated systems and control drive
organizational transformation
- End to end grid observability allows
organizational leverage by stakeholders
- Organization flattens
- Significant restructuring likely occurs
now (tuning to leverage new SG
capabilities and processes)
- Collaboratively engage all stakeholders
in all aspects of transformed business
- Organizational changes support new
ventures and services that emerge
- Entrepreneurial mind set, Culture of
innovation
- Awareness of issues and utilitys role in
addressing the issues
- Environmental compliance
- Initiating conservation, efficiency,
green
- Renewables program
- Developing first SG vision
- Support for experimentation
- Informal discussion with regulators
- Funding likely out of existing budget
1
Expl oring
and
Initiating
- Established energy efficiency programs
for customers
- Triple bottom line" view (financial,
environmental and societal)
- Environmental proof of concepts
underway
- Consumption information provided to
customers
- Integrated vision & acknowledgement
- Initial strategy / business plan approved
- Initial alignment of investments to vision
- Distinct SG set-aside funding / budget
- Collaboration with regulators and
stakeholders
- Commitment to proof of concepts
- Identify initial SG leader
2
Functional
Investing
- Active programs to address issue
- Segmented & tailored information for
customers including environmental and
social benefits
- Programs to encourage off-peak usage
- Integrated reporting of sustainability and
impact
- Synthesize triple bottom line view
across LOBs
- Completed SG strategy and business
case incorporated into corp. strategy
- SG governance model deployed
- SG Leader(s) (with authority) ensure
cross LOB application of SG
- Mandate/consensus with regulators to
make and fund SG investments
- Corp. strategy expanded to leverage
new SG enabled services or offerings
3
Integrati ng
Cross
Functional
- Collaboration with external stakeholders
- Environmentally driven investments
(aligned with SG strategy)
- Environmental scorecard/reporting
- Programs to shave peak demand
- Ability to scale DG units
- Available active mgmt. of end user
energy uses and devices
- SG drives strategy and influences
corporate direction
- SG is a core competency
- External stakeholders share in strategy
- Willing to invest and divest, or engage in
JV and IP sharing to execute strategy
- Now enabled for enhanced mkt driven or
innovative regulatory funding schemes
4
Optimizi ng
Enterprise
Wide
- Actualize the "triple bottom line-
(financial, environmental and societal)
- Customers enabled to manage their
own usage (e.g. tools and self-adaptive
networks)
- Tailored analytics and advice to
customers
- Managing distributed generation
- Overall strategy expanded due to SG
capabilities
- Optimized rate design/regulatory policy
(most beneficial regulatory treatment for
investments made)
- New business model opportunities
present themselves and are implemented
5
Innovating
Next Wave
Improvements
Organization &
Structure
Strategy,
Management
& Regulatory
Societal &
Environmental
Technology
The Smart Grid
Maturity Model
Characteristics Examples:
Grid Operations (Analytics)
Level
3
Level
4
Level
5
- Implementing control analytics to
support decisions & system
calculations
- Automated decision making within
protection schemes (leveraging
increased analytics capabilities and
context)
- Automated grid decisions system
wide (applying now proven analytic
based controls)
IBM Research
2009 IBM Corporation
THE GRIDWISE ARCHITECTURE COUNCIL
Decision Makers Interoperability Checklist
IBM Research
2009 IBM Corporation
Outline of the Checklist document
Introduction to Interoperability
An overview of the Checklist and its use
Four checklist question categories
Architecture and design
Interconnectivity and security
Evolutionary capability and service life
Collaborator independence
15
IBM Research
2009 IBM Corporation
A few example Checklist questions
16
3) Does the proposal maintain technology neutrality, in that it specifies performance results and outcome
requirements rather than prescribing a specific technology or method to achieve those results?
This allows vendors to innovate and compete by developing and improving technologies, which can create
significant opportunities for new value.
10) DDoes the device/project use at least the basic cyber-security measures as recommended by the NERC
Critical Infrastructure Protection standards? Does the device/project follow industry consortia (e.g.
UtilityAMI, CEC PCT Reference esign) security and privacy recommendations?
As grid interconnectivity and interdependence increases, the grid becomes more vulnerable to threats from the
failure of its information technology nervous system. This means that every element of the grid must
incorporate cyber-security protections. Privacy protections are necessary to protect users and grid entities
information and identities.
12) Can the device be updated or have its functionalities upgraded by downloading new software and
configuration information?
A device that lacks built-in intelligence, upgradeability, and connectivity and requires physical modification,
whether to replace a chip-set or bolt on new equipment, is more difficult and more costly to upgrade and is
likely to become obsolete and stranded faster.
14) Does the device or project allow collaborators or users to make independent decisions (within defined
parameters such as contractual provisions, NAESB wholesale agreements, electric market rules, or tariff)?
As the complexity of the electricity system grows, most interactions and transactions will require willing,
consensual partners rather than command-and-control relationships. Therefore, it should allow users and other
collaborators to modify automatic responses by user over-rides or permissions.
IBM Research
2009 IBM Corporation
Closing Comments
There is no single defined path to the smart grid vision
Where a Utility begins, and how far they go depends on the
specific situation at that Utility
Many subprojects can be implemented in parallel, but there are
usually pre-requisite tasks/activities within a subproject
E.g., Regulatory structure needs to be defined for Demand Response
Automation programs (including Plug-In Vehicles, which are a separate,
special case most likely)
Tools such as the Smart Grid Maturity Model may
eventually have wide adoption, and can also be helpful to
Regulators in understanding how Utilities are planning
roadmaps and making investment decisions
The Decision Makers Checklist is another tool for
Regulators, and the Council wants to work with the
Regulatory community to improve it and develop of tools
17
IBM Research
2009 IBM Corporation
Contact
Ron Ambrosio
Global Research Leader
Energy & Utilities Industry
Ron Ambrosio/Watson/IBM@IBMUS
rfa@us.ibm.com
+1 914-945-3121
IBM T.J. Watson Research Center
P.O. Box 218
1101 Kitchawan Rd. / Route 134
Yorktown Heights, NY 10598
IBM Research
2009 IBM Corporation 19