Enablement of analytics and cloud Blueprint for future utilities
2014 IBM Corporation
Blueprint for future utilities - Enablement of Analytics & Cloud computing Authors: Jayaprakash Ponraj, Paul Yin, IBM Global E&U CoC Ajit Tawde, IBM, Global E&U GD Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Introduction What are utility industry challenges and trends? How technology could make an impact? What are the benefits utility should target? Analytics for utilities our point of view Cloud for utilities our point of view Key considerations on smart grid solution architecture Key considerations on implementation plan & requirements What are next steps? Agenda 2 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Introduction Challenges for managing electrical utilities Discuss how the emerging technologies like analytics and cloud computing will impact the way utilities would operate and service the customer in future Exploit convergence of technologies to bring benefit of operating costs reduction, improved customer satisfaction and earn goodwill from regulators Discuss key solutions architecture and implementation considerations including information security 3 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Challenges & market forces shaping the utilities landscape IMPLICATIONS The traditional utility business model is upended; new business models and alliances will be required to sustain revenue growth Consumers Consumers want the same high level of service from energy providers as from other consumer-oriented companies Threats to Revenue Energy efficiency, slower economic growth, and new entrants negatively affect historical patterns of demand Information Utilities now have to manage a huge volume, veracity, velocity and variety of data from both external and internal sources Data and analytics move from a back-office competency to a critical profit enabler, requiring innovation in the front office Innovate, partner, or die becomes an unspoken mandate as new entrants reach out directly to consumers and bypass energy providers Convergence of Information Technology and Operations Technology Threats to Revenue Energy efficiency, slower economic growth, and new entrants negatively affect historical patterns of demand Smart appliances become ubiquitous Consumers can easily sell surplus energy to the grid or contract with a third party Regulatory environment allows new business opportunities Battery technology will become increasingly available Electric vehicles are affordable, & utility-sponsored purchasing programs are available Microgrids emerge where existing infrastructure is insufficient Consumer-owned generation is affordable for the average household Home energy management systems are inexpensive & prevalent 4 Evolving Utility Business Models Ageing Assets & Workforce New Entrants, Disruptive Technology Regulatory & Social Pressure Exponential Data Growth Climate Change & Environment Concerns MARKET FORCES CHALLENGES Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Grid Planning Enterprise Analytics Regulatory Compliance Grid Operation Field Service / Maintenance Customer service Customer Demographics, usage patterns Social Customer sentiment Grid Equipment, sensors, smart meters Generation Trading partners, capacity, generation schedules Events weather, local events Geospatial Location information One grid, multiple stakeholders and solutions, variety of data source and type Leveraging all these data regardless of source or type or current usage by utilities is essential 5 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Typical usage patterns of data for utilities Grid Operations Utility company in Italy How can I detect and act on power outages before customers call? Captured and analyzed data from grid sensors for a comprehensive view of grid performance 99.9% faster problem diagnosis by providing a comprehensive, near- real-time view of the grid Asset & Workforce Management How can I anticipate asset failures and predict the need for maintenance? 25% improvement in crew utilization and 10% fuel savings North American natural gas distributor Correlated data from multiple sources to better plan and deploy inspection, detection, maintenance, repair and replacement resources and personnel Smart Metering How can I use smart meter information to improve customer service? North American utility Analysis of Time Series energy usage, flag & event data combined with other customer asset & work data Saved $176M as a result of capital investment & operations savings 6 Utilities are progressively transforming and indorsing tangible benefits Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Typical examples of ongoing analytics programs Examples: Time of Use and Demand Response programs Customer Segmentation and individualized programs Outage restoration and customer notification Capital planning & budgeting Revenue assurance Improved supply chain and logistics Real-time dashboards Optimized asset performance Predictive asset maintenance Distributed generation integration Workforce management optimization Operational, financial and environmental risk visibility Policy and compliance simplification Fraud identification Assessment of asset infrastructure Grow, retain and satisfy customers Manage risk, fraud & regulatory compliance Increase operational efficiency Transform financial processes 7 Turning the vast amounts of data collected into usable and actionable insight are bringing new opportunities Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright Massachusetts Institute of Technology 2011 Source: 2011 State of the U.S. Business Analytics Software Market: End-User Perspective by Vertical Industry and Company Size IDC, June 2011 Outperforming in a data-rich, hyper-connected world, IBM Center for Applied Insights study conducted in cooperation with the Economist Intelligence Unit and the IBM Institute of Business Value. 2012 2.2x Analytically sophisticated companies outperform their competition more likely to outperform industry peers 260% more likely to be top performers Harnessing Data presents a significant new opportunity for E&U companies Typical meter readings per day to manage distribution grid 500 million Smart grid instrumentation, social media data, smart devices, location data, etc. 80% data growth Weather modeling data for optimizing siting & performance of wind turbines 4 petabytes V o l u m e V e l o c i t y V a r i e t y 87% of utilities had invested in business analytics; over 1/3 demonstrated positive net results Analytics has evolved from initiative to business imperative 8 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Why & how cloud would impact utility business? Cause Rise in substitutes for the traditional franchise model Regulatory and market change create uncertainty Above all, there is a continued resistance to rate increases Business Transformation Organization Optimization Cost and resource constraints require utilities to do more with less Focus on customer engagement and aligning services to customer needs Develop new business services or seek new or geographical expansion Impact Enables Transformation Drives Need Cloud will be a key enabler for this transformation. It Improves Agility Cost Flexibility Business Scalability Market Adoptability These business trends will drive transformation in the organization 9 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Emergence of cloud 1/4 th Of the worlds applications will be available in the cloud by 2016. 50% Of large enterprises will have hybrid clouds by 2017. 85% Of new software is now being built for the cloud. Invest in cloud to date to build cloud capabilities. Invest in Data center expansion Focus on High Revenue Cloud Deals The emergence of cloud is transforming business and IT processes System Integrators are remaking the era of cloud Utility organizations have already focusing to benefit from cloud based investments 10 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation What typical benefits utilities should target from these technologies & changes? Analytics Cloud Improve reliability Improve efficiency Reduce outages & durations Integrate Distributed Energy Resources Increased participation of Customer Effectively manage ageing asset systems Better utilization of assets Better utilization of workforce Improved Capital Planning and cashflow Reduce operational expenditures Minimize losses Improve customer satisfaction and retention Leverage information to increase customer insight Establish a trusted relationship with regulators Ensure regulatory compliance and reporting Customer Satisfaction Regulatory & goodwill Applicability Typical Benefits Benefit Area Operational Excellence Financial Performance Utilities advance greater transparency into metrics achieved per stimulus quickly Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Analytics for utilities our point of view Data is emerging as the utilities newest resource for competitive advantage, as the value of data continues to grow current systems wont keep pace. Analytics are key to unlocking insights into high volumes of data (e.g., real time grid data) Business value driven analytics would influence the utility business rather than discrete applications or software packages. Disruption occurs more rapidly, utilities management are sensitive to value realized per spend Decision-making is moving from the elite few to the empowered many. Utility organizations maturity level changes with transformation progress. Utilities would expect flexibility in number of users empowered on any specific analytics depending on their current maturity Increase in need for business user friendly analytical solutions and focus for reduction of dependence on highly skilled IT expertise increases self empowerment Analytics is indispensable not just for utility transformation, but for sustenance of current business & maturity Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Cloud for utilities our point of view Early cloud adopters will have advantage as business transformation occurs and industry concerns diminish Cloud would enable the desired express deployment of analytics & other applications that transform the utility business Cloud would help to reduce time to value, increase the appetite for risk taking and thus accelerate the innovation drive Focus on increased intelligence, modeling, forecasting, predictive analysis will be improved with the availability of data accessible over cloud by user with 360deg perspective attracts increased response by researchers and students Integration of public and private clouds with backend systems that will create effective hybrid environments would create demand for development of large middleware deals & services Maximization of cloud efforts will need innovation and reinvention of core business processes Adoption to interoperability standards and high attention end- to-end security & data privacy is mandatory 13 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Load Forecasting Mobile workforce Asset Mgmt. Outage Mgmt Warranty / Quality SCADA ERP/ MRP EAM Social Media DCS Telematics Grid Information Integration & Governance Systems Systems Security Security On premise, Cloud, As a service Storage Storage What action should I take? Decision management Landing, Exploration and Archive data zone EDW and data mart zone Operational data zone Real-time Data Processing & Analytics What is happening? Discovery and exploration Why did it happen? Reporting and analysis What could happen? Predictive analytics and modeling Deep Analytics data zone What did I learn, whats best? Cognitive I n t e r n e t
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m e s s a g i n g New/Enhanced Applications All Data Key considerations for cloud based typical analytics architecture Monitor the performance of equipment and assets during operation Predict an equipment failure and avoid an outage Recommend preventative maintenance Consolidate grid data for a 360 degree view of the grid or generation plant AMI Distribution Mgmt. Discover and navigate through structured and unstructured data across the entire enterprise Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation One size does not fit all, especially for utilities The attributes of dynamic clouds should be aligned best to the needs of the industry Private Cloud Benefits: Aligns to capital expense considerations Fully customizable Different build/operate models Robust management Secure by design Maximize return on existing IT investments Aligns to Capital Expense Enables Op Ex services to capture benefits of public cloud Configured to meet your security needs Balance the security benefits of private with the on demand value of a public cloud Benefits: Low entry cost Pay-per-use Highly elastic Op Ex focus Focal point for Op Ex aligned services Dynamic Hybrid Public Cloud Hybrid Cloud + 15 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Other energy & utility industry considerations Security, capital recovery model & changing attitudes would influence implementation approaches Energy providers are subject to tight regulations which govern compliance in both data security and privacy Many providers in the utility industry prefer capital expenditure investment for their IT needs Gradually changing regulations and market pressure will increase cloud value and activity Security & Data Privacy Capital Recovery Model In the near term, primary adoption will be private and hybrid models Changing Attitudes 16 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Generation and Distributed Energy Resources Substation / Distribution Automation Field Devices (sensors, fault, locators, power quality devices) Field Devices such as IEDs / RTUs Field Devices (for Physical security, Fire, intrusion protection Metering Subnet Other Control Center F i e l d
D e v i c e s C o m m E&U Industry standard based Operation Service Bus Control Center DER Gateway SCADA Gateway ICCP Gateway Device Specific Gateways Video Gateway Multi Vendor Head Ends Utility Communication Network MPLS / IP O p e r a t i o n a l
T e c h n o l o g y I n t e g r a t i o n SCADA /EMS DMS/OMS Physical safety & Security Enterprise Service Bus WFM AM GIS CIS Customer Portal TCS/IVR Middleware Bridge E n t e r p r i s e MDM OMS Market Operations Network Element Management Commun. NMS Device Management 61850 SCL gateway SNMP gateway AMI NMS Proprietary Gateway Choice of these applications can be either on enterprise service bus or operational service bus depending on as-is scenario Potential candidates for cloud solutions Applications & integrations offered on cloud in energy & utility industry are growing more rapidly 17 C l o u d
c a n d i d a t e s C l o u d
c a n d i d a t e s Historian DER Ref. Data Model Real Time Proprietary Bus Planning Engineering Protection Performance Management Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Typical portfolio of cloud solutions Development & DevOps Big Data & Analytics Security Mobile Business Process as a Service Automating Business Innovation Marketplace of High Value Consumable Business Applications Rapid App Development through Composable and Integrated Platform Built using open standards Enterprise Class, Optimized Infrastructure Built using open standards Integration Traditional Workloads Integration/ API Mgmt Compute Storage Networking Procurement Payment Processing Help Desk Accounting Recruiting Commerce Supply Chain Analytics Talent Management Collaboration IT Management Marketing Software as a Service Platform as a Service Infrastructure as a Service 18 Collect & manage smart meter data smart meter analytics Collect & manage Grid sensor data Grid Planning analytics Grid Optimization analytics Business Processes Cloud solutions to help customers achieve anticipated business outcomes, no matter where your entry point is. Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation What next? Engage with different stakeholders including smart grid cloud consultants, system providers, investors and researchers to build target portfolio of analytics & cloud to maximize potential benefits Create target reference architecture including middleware (integration bus), cloud and analytics with detailed specification of system capabilities Target to develop in-house senior level professionals with industry background (both OT & IT skills), standard maturity and understanding of security for effective cloud environment management & work to optimize business processes Gain support from regulators and ensure to document target business model of future which will help shape analytics and cloud architecture and capabilities 19 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Backup 20 Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Author profile 21 Jayaprakash Ponraj Brief Description of Projects and Associated Responsibilities Executive Summary Managing Consultant in a specialist group of industry subject matter experts in Transmission & Distribution Systems 18 years experience in conception, engineering, implementation, testing & commissioning in the energy and utilities sector. Relevant experience Protection and Control SCADA, DMS, OMS AMI/MDM ADR PAO Prior Experience TPDDL SG Pilot Project, SPARQ Solutions (Energex & Ergon Energy) Strategy & Blueprint Programme, OEDAS OT/IT Transformation Program, UEDAS, BEDAS, CEDAS. AKEDAS IT/OT Transformation program Working in Dubai Electricity & Water Authority Education Bachelor of Electrical Engineering Masters in Business Administration Pursuing Ph.D. in Smart Grid Management Prakash is an Energy & Utility Industry Expert (Automation & Protection Systems) in the global Center of Competency for Energy & Utilities practice in IBM has seventeen years of experience in the industry. Prakash has comprehensive understanding and experience in Smart Grid (SG) projects on Grid Operations and Advanced metering areas. Prakash has a broad knowledge of Protection & Control systems and has hands-on experience in the concept, design, engineering, execution and commissioning of Power Transmission & Distribution (T&D) projects up to 400kV systems. His systems experience includes Substation Control & Monitoring Systems (SCMS), Supervisory Control & Data Acquisition (SCADA), Protection, Network Planning & Energy Management applications. He has good understanding about power system modeling and various applications using network model. In IBM, Prakash is responsible for providing Energy & Utilities solutions in India, South Asia, Middle East Africa & Turkey areas. Prakash is a key member of solutioning team for large and complex deals (OT/IT transformation of Distribution companies) in Turkish Market. For TPDDL (India) Prakash is E&U Smart Grid Expert leading FOAK Smart Grid pilot project in India with the scope including Advanced metering Infrastructure, Meter data Management solution and Automated Demand Response systems. For SPARQ Solutions (Australia) Prakash worked to define High level roadmap (Ergon Energy and ENERGEX) for Australian Energy Regulatory period 2010-2015. This contribution is focused to improve distribution and sub transmission network planning, engineering, design, operations and maintenance efficiency and reliability. For Hydro One (Canada) he contributed to conceptual design (power, control, protection, monitoring and analytics) of smart distribution systems that will enable larger distributed generation integration, distribution reliability, restoration optimization etc., leading to implementation of GE/SEL power system field components and Telvent Distribution Management Systems (DMS) applications. For BESCOM (India) he was working on finalization of smart grid functionality / technology priorities, creation of detailed project report that will enable publishing of Request for Proposal for a smart grid pilot project. Prior to Joining IBM, Prakash was Competency Leader for Mahindra Satyam in the area of smart grid and engineering services. While working with Dubai Electricity & Water Authority, he led the rapid implementation of innovative protection designs using the latest technology for electrical T&D Network Systems and was also responsible for creating process maps for protection relay setting approval processes. His past responsibilities include leading Engineering & ICT solution proliferation efforts, providing standard protection specifications, review and approval of T&D protection relays and settings, providing protection performance, system interface, protection communication requirements, logic diagrams, DC system and CT, VT requirements for safe and reliable operation of the protection and automation systems. His career has included engineering and project work for utilities in India and the Middle East, including monitoring design, installation and commissioning activities for many transmission and distribution (400kV / 245kV / 132kV / 66kV /33kV / 11kV) projects. Smart Grid Specialist, E&U CoC Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Author profile 22 Dr. Xiaodong (Paul) Yin Brief Description of Projects and Associated Responsibilities Executive Summary Senior Managing Consultant in a specialist group of industry subject matter experts in Transmission & Distribution Systems 20 years experience in design and delivery of energy, distribution management systems projects, complex Information & Technology projects in Power Industry Relevant experience Real-time Grid Operations SCADA,EMS,DMS,OMS AMI, MDM, EAM and System Integrations Prior Experience Past working experience with Siemens T&D and ALSTOM Grid TPDDL SG Pilot Project, ENMAX, CenterPoint Energy, Progress Energy, Puget Sound Energy, Luminant, ERCOT, ISO New England, etc. Education PhD in Electrical Power Engineering Paul Yin is a Senior Managing Consultant in the IBM Global Center of Competence for Energy & Utilities. He is a Smart Grid architect specializing in Grid Operations, AMI, MDM, EAM and system integrations. Paul has over twenty years experiences in design and delivery of complex information and technology projects in electrical power industries. Paul has deep subject matter expertise in the following specialties: power system engineering, SCADA, Distribution management system (DMS), Energy management system (EMS), Market management system (MMS), Outage management system (OMS), Advanced Metering Infrastructure (AMI) and Enterprise Asset Management (EAM). He gained this expertise through work as a consultant with IBM and as a project engineer with Alstom Grid and Siemens T&D. His utilities experience includes TPDDL, ENMAX, CenterPoint Energy, Progress Energy Florida, Puget Sound Energy, Luminant, ERCOT, ISO New England, PG&E, CAISO, etc. Paul started his career in 1994 as an R&D Engineer with the Belgian Nuclear Research Center. He has Ph.D. in Electrical Engineering from the Universit Catholique de Louvain, Belgium and speaks English, Chinese and French. Smart Grid Architect, E&U CoC Enablement of analytics and cloud Blueprint for future utilities 2014 IBM Corporation Author profile 23 Ajit Tawde Brief Description of Projects and Associated Responsibilities Executive Summary Senior Managing Consultant in Global Business Services 22 years experience in IT, predominantly inEnergy & Utilities sector focusing on Smart Grid projects. Relevant experience TPDDL ADR Pilot Distributed Grid Monitoring asset development Technical sales consultant discoms Adani Power Prior Experience Computer Science Corp. TCS Education Bachelor of Engineering in Comp Science Ajit is a Senior Managing Consultant in the Global Delivery center of IBM India. Prior to GBS , Ajit was working as solutions architect in sales division focusing on E&U & Smarter City domains.. He worked on RfI responses & technical solution for multiple R- APRDP tenders. Ajit was Industry Leader in GBSC managing team of technical & domain experts which created software assets for multiple utilities solutions like low voltage grid monitoring, meter data analytics, SCADA data analytics. IBM India Global Business Services Industry Consultant E&U
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