Powering A New Energy Age, One Smart Grid At A Time

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Smart grids use information to automate, monitor and control the two-way flow of energy. Smart grids can also incorporate renewable energy and integrate electric vehicles.

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  • 1. Energy & Utilities Industry Powering A New Energy Age, One Smart Grid At A Time Getting Smart About Our Future
  • 2. Today’s challenges Utility companies around the globe, Smart grid technologies transform the IBM is helping utilities add a layer faced with an ever intensifying and way electricity is generated, transmitted, of digital intelligence to their grids. interconnected set of challenges, are distributed and managed, adding These smart grids use information looking for even smarter ways of doing intelligence throughout the grid to to automate, monitor and control business. More and more, utilities are improve system reliability and efficiency, the two-way flow of energy — from viewed as being a critical link to improving management of supply and the source to the plug. Smart grids solving the challenges we all face demand, optimize operations and can also incorporate new related to climate change and the streamline costs. By using digital sensors, sustainable energies such as care of our planet’s energy resources. advanced communication networks wind and solar generation, and Customers, employees, regulators, and analytics, utilities can understand integrate electric vehicles. investors, and other stakeholders are demand in near real-time. looking in part to utility companies to address these issues and to take actions that produce genuine environmental and financial results. If the U.S. grid were 5% more efficient, the energy savings would equate to permanently eliminating the emissions from 53 million cars. 2
  • 3. The Intelligent Utility Network by IBM The Intelligent Utility Network is gain near real-time visibility into their • Grid Operations IBM’s solution for the smart grid. It usage and costs. A smart grid also Provides enhanced operational and encompasses a broad set of offerings helps consumers actively participate analytical capabilities throughout that address the complete energy in solving critical energy problems by distribution network operations. value chain, from generation to the enabling “smart” homes and energy- Development, planning, consumer’s premise. The Intelligent conscious implementation of asset monitoring Utility Network fundamentally is an choices possible. and energy management systems information network that connects required for grid operations and together the ‘participants’ in the IBM’s Intelligent Utility Network solution their integration into the utility energy value chain, at multiple levels. guides a utility in every phase of a operations environment and This information network enables the smart grid transformation from strategy enterprise to take advantage of intelligent flow of information, which can development, planning and selection this information for business and be used to transform and optimize the through design, implementation, and operational intelligence. generation, supply and consumption of ongoing operations. The Intelligent electricity. The Intelligent Utility Network Utility Network provides utilities with a • Intelligent Utility is the information management solution for: Network Security component of the smart grid. Provides tools and methodologies • Smart Metering & Beyond to enhance physical and cyber The Intelligent Utility Network will enable Enables business security characteristics of the the transformation of the way power transformation through enhanced smart grid. is generated, distributed and used, metering capabilities. Comprehensive cyber security enabling more intelligence throughout Visioning, strategy, planning and offering covering major aspects of the grid to dramatically reduce outages selection, design, build, rollout utility security from assessment, and faults, improve responsiveness, and operations support for smart strategy, policy, planning and handle current and future demand, metering initiatives, their integration development to managed increase efficiency and manage costs. into the utility enterprise and the security operations. With a smart grid, consumers will be ensuing capabilities that smart able to interact with a utility in multiple, metering enables for both the utility convenient ways; select customized and the consumer. services and pricing options; and 3
  • 4. • Intelligent Utility Network IBM also helps utilities extend billing of electricity to electric vehicle Communications Networks distribution capabilities into homes, mobile customers. Development of Apply methodologies which will commercial operations and cars. demonstrations and pilot projects. optimize communications aspects • Electric Vehicles • Renewable Energy Resources of the smart grid. Visioning and strategy to support Visioning, strategy, development of IT Assessment and development the various business models which and communications infrastructure of utility-wide voice and data may develop around the supply required to integrate distributed communications strategy to enable and demand of electricity with energy into the utility network and information exchange across all electric vehicles. Development gain observability of the resources the components of a Smart Grid. of IT infrastructure and standards in order to better manage electricity Further provide planning, design, required to enable the supply and supply and demand. implementation and operation of IUN communications networks. The U.S. could save up to $70 billion in infrastructure spending over the next 20 years through better management of existing assets. 4
  • 5. How Do We Deliver? The Intelligent Utility Network solution projects, our solution has harvested operations transformation. Many of combines strategy, processes and engagement models and best these offerings are connected through technology to help utilities build a practices that can enable a the IBM Solution Architecture for Energy smart grid in line with their vision and faster implementation. and Utilities Framework (SAFE). This objectives. We have experienced innovative, powerful software platform subject matter experts and trained Through hardware, software and is uniquely designed to provide Intelligent Utility Network practitioners service offerings, IBM provides a rich network visibility and control, process who can deliver the solution. Based portfolio of solutions across the energy automation and business collaboration on the experience gained from our value chain for power generation for solutions across the energy and various Intelligent Utility Network optimization, transmission and utility value chain. implementations and demonstration distribution operations and customer Building an Intelligent Utility Network Proven, Tested, Validated Methodology. SAFE Architecture. Supporting the can extend their investment in current Validated with top energy and Intelligent Utility Network Solution is applications, systems and infrastructure. utilities companies, IBM’s successful the Solution Architecture for Energy Intelligent Utility Network methodology and Utilities Framework (SAFE), The framework brings the capabilities guides our grid strategy and delivery an innovative, powerful software of IBM software to power smarter engagements. Our methodology is platform, uniquely designed to utility solutions across all areas of customized to confront disruptive provide network visibility and control, a utility, including plant operations, technologies, like the smart grid. For process automation and business mobile workforce management, asset instance, our methodology addresses collaboration for solutions across the lifecycle management, smart metering, concerns in a heavily regulated energy value chain. SAFE enables data grid operations and customer care. environment, and it emphasizes transformation throughout a By integrating and optimizing assets, stronger reliance on multiple solution utility company. Both highly cohesive devices, networks, servers, applications providers in a complex, rapidly and loosely coupled applications can and data across the enterprise, utility changing technology environment. work together so that utility companies companies can drive business agility 5
  • 6. IBM is a leader in smart grid transformation around the globe. Involved in approximately 50 smart grid engagements worldwide Supporting 7 out of 10 largest automated metering projects globally Employing more than 3000 energy and utility professionals worldwide Significantly investing in energy and environment programs toward smart grid transformation 6
  • 7. and more ‘intelligent’ networks. The and execution that might exist. The and provide feedback on its use, framework approach will help SGMM can be used in a variety of ways, value and impact for stakeholders. increase the reuse of assets for the most powerful of which is to create In addition, the World Energy each successive project, improving a common vision and prioritization Council (WEC) is now a channel return on investment and speed of initiatives that provide the greatest for global dissemination, of implementation. opportunity for improvement, innovation participation and adoption of the model and transformation. using its worldwide network Smart Grid Maturity Model. of member committees. Progressive utility executives know that In April 2009, IBM and a group of smart grid transformation is the right leading utilities — the Global Intelligent Component Business Model. thing to do, but many remain unclear Utility Network Coalition — announced IBM has developed a Component about where to begin. The Smart Grid that they handed-over stewardship Business Model (CBM), a tool for smart Maturity Model (SGMM) from IBM is a of their Smart Grid Maturity Model grid planning and execution, strategic management tool designed to the Carnegie Mellon® Software for the entire set of functions performed to help energy and utility companies Engineering Institute (SEI), which by utilities, regardless of organizational benchmark their current smart grid- assumes primary responsibility for orientation. The CBM creates a one- related initiatives versus the industry. the ongoing governance, growth and page snapshot to allow executives The tool also provide a framework evolution of the model. In order to to frame decisions from a common alignment around the long term strategy support widespread adoption and perspective. It can be used to identify for a smart grid program. The SGMM use, the SEI will ensure availability of relevant areas of strategic importance creates a clearly articulated journey the model and supporting materials and map resources allocation to those for smart grid transformation, with and services for the user community; areas via a CBM “heat map.” defined stages and options, and helps maintain consistency of its application, to bridge the gaps between strategy validity, and results; and analyze China aims to boost usage of renewable energy to 10 percent of total energy consumption by 2010 from 7.5 percent in 2005. Solar power capacity will rise to 300,000 kilowatts from 70,000 kilowatts. 7
  • 8. U.S. Power Grid Research and Innovation The power grid is among the top As a leader in the information to explore new and innovative concerns of President Barack Obama, technology industry, IBM and its technologies for and key to the stimulus program. In research division realize the importance emerging opportunities. Clients a speech to students and faculty at of delivering innovation to our clients. have a research team to solve George Mason University on January To aid them in achieving their specific problems that don’t have ready 8, 2009, the then President-elect goals, IBM Research has created On solutions. Researchers get immediate explained how the new Administration Demand Innovation Services, which client feedback to further enhance would “do more to retrofit America for a features a First-of-a-Kind program and their projects. global economy. That means updating the Industry Solutions Lab. the way we get our electricity by starting The Industry Solutions Lab gives to build a new smart grid that will save First-of-a-Kind projects are partnerships IBM clients the chance to discover us money, protect our power sources between IBM and clients that turn how leading-edge technologies and from blackout or attack, and deliver promising research into market-ready innovative solutions can help solve clean, alternative forms of energy to products. This is a great way to match business problems. every corner of our nation.” researchers with target companies IBM energy industry software labs in Austin, Texas, and La Gaude, France, along with demonstration centers built with utilities, such as CenterPoint Energy, USA, and Country Energy, Australia, establish the value of smart grids to the industry and public. 8
  • 9. IBM and Smart Grid Demonstration Projects Together with our global business thermostats, meters and sensors — in Denmark-based collaborative aimed at partners, IBM has helped to consumers’ homes that were tied developing an intelligent infrastructure create pilot projects that to the PNNL system. This helped that will make possible the large-scale demonstrate the many advantages to automatically control power adoption of electric vehicles powered of smart grid technology. consumption based on pricing signals by sustainable energy. Within the and customer preference. The smart project, IBM researchers will develop Pacific Northwest National Lab: outcomes? Consumers were able to smart technologies that synchronize Smart Meters Power Down Bills decrease their electricity bills by an the charging of the electric vehicles As part of the U.S. Department of average of 10 percent, as the utilities with the availability of wind in the grid. Energy’s GridWise Program, the Pacific reduced short-term peak loads by 50 IBM has also contributed a hardware Northwest National Laboratory (PNNL) percent through better use of existing platform to the Technical University project wanted an innovative way to infrastructure. of Denmark that will be used for keep the electricity grid healthy in times large-scale real-time simulations of of stress by better managing electrical EDISON Project: the energy system and the impact of demand. IBM helped them implement Building A Smart Grid for Electric Cars electric vehicles. intelligent devices — including The EDISON research consortium is a Thinking Smarter in the Real World Consider these examples of what The IBM solution will involve replacing will be able to make better decisions Intelligent Utility Network technology 250,000 analog electric meters about usage and begin replacing and services from IBM can do to with smart meters that can monitor carbon-intensive fuel oil with save energy, positively impact climate electricity usage in real time, identify sustainable sources of energy. change, and create a more water leaks and electricity losses, set sustainable environment. variable rates, and reward customers CenterPoint Energy: who consume less power. Water meters Improving Grid Reliability Malta: First Smart-Grid Nation will be integrated into a system that can As a major U.S. energy company, The Mediterranean island nation monitor and manage meter readings CenterPoint Energy is deploying 2.4 of Malta is about to become the and suspensions. By collecting and million advanced electric meters in the world’s first smart-grid country. The analyzing the data from thousands of Houston area to improve operations, Maltese national electricity and water digital sensors embedded throughout give consumers more control over their utilities have selected IBM to design the infrastructure, the Maltese energy consumption and provide the and deliver a nationwide smart grid government foundation for retail electric providers implementation over the next five years. to offer new competitive services and 9
  • 10. Investing in the creation of smarter grids products. Working with IBM Global To promote the use of smarter energy, IBM’s Energy and Environment Business Services and IBM Global IBM is substantially investing in energy Initiative is an effort to apply Technology Services, CenterPoint and environmental programs and technology and services that Energy is deploying an advanced has actively participated in a host of matter to businesses, governments, metering solution supported by IBM global initiatives, with the goal to lead people and the planet. This initiative Tivoli® Netcool®/Impact software. The utility industry organizations to smart includes Intelligent Transportation new system will deliver near-real-time grid transformation. Systems to measure and improve data on energy usage and supports transportation usage, Carbon dynamic time-of-use rates and other The Global Intelligent Utility Network Management to measure and pricing options. This will encourage Coalition is a strategic relationship reduce carbon emissions, Energy energy conservation and new offerings, that IBM formed with a small group of Efficient Technologies and Services such as monthly prepaid electric leading utilities from around the globe to create and manage efficient service for the budget-minded. to shape, accelerate and share in the information technology (IT) in energy development of the smart grid. The management, and Advanced Water DONG Energy: Powerful Savings Coalition’s purpose is to collaborate in Management to measure and manage Increasing marketplace and regulatory the market to enable the rapid creation water systems usage, as well as the demands, along with a need for future of solutions, the adoption of open Intelligent Utility Network. infrastructure reinvestment, drove industry-based standards and informed Danish utility company DONG Energy policy/regulation that drive the adoption The GridWise® Alliance, formed in to look for a way to better manage and of the smart grid. A key benefit of the 2004, is a public-private partnership utilize its electrical distribution network. Coalition is that it reduces regulatory, working to transform the nation’s The solution proved it would be able to financial, market and implementation power supply system by moving the reduce minutes of power lost by 25% risk for the industry. The current Global grid into the information age, and IBM to 50%, reduce fault search time by Intelligent Utility Network Coalition serves as a key participant and chairs one-third, and potentially realize a member base serves nearly 100 million the Alliance. Its members include savings of up to 90%. electric and natural gas consumers. utilities, IT companies, equipment vendors, new technology providers and educational institutions. 10
  • 11. The GridWise Architecture Council, also works closely with this organization and and EISA 2007 and modernizing the formed in 2004, is working to shape the chairs the Council. nation’s electricity delivery system. IBM guiding principles, or architecture, of a is a leading participant with extensive highly intelligent and interactive electric The Department of Energy’s Electricity experience in advising how digital system — one ripe with decision-making Advisory Committee, formed in 2008, technology can improve reliability, information exchange and market- provides advice to the U.S. Department security and efficiency of the electrical based opportunities. IBM Research of Energy on implementing EPACT 2005 system with a smart grid. IBM is collaborating with the city of Rotterdam, The Netherlands on the design and testing of a monitoring and forecasting system for smarter water and energy management. 11
  • 12. Why IBM IBM has proven successful around the world in delivering solutions that © Copyright IBM Corporation 2010 provide improved reliability and end- IBM Corporation to-end network data in near real-time. New Orchard Road We bring to the table the integration Armonk, NY 10504 U.S.A. skills, leading-edge technology, Produced in the United States of America partner ecosystem and business March 2010 and regulatory expertise required to All Rights Reserved support every level of a smart grid IBM, the IBM logo, ibm.com, Netcool and Tivoli are trademarks or registered trademarks of implementation. We provide planning International Business Machines Corporation in and business case development from the United States, other countries, or both. If these and other IBM trademarked pilot programs to full-scale execution. terms are marked on their first occurrence in this Our extensive experience can deliver information with a trademark symbol (® or ™), these symbols indicate U.S. registered a comprehensive Intelligent Utility or common law trademarks owned by IBM at Network solution that is manageable the time this information was published. Such trademarks may also be registered or common and scalable in a secure environment. law trademarks in other countries. A current list of IBM trademarks is available on the Web at For more information “Copyright and trademark information” at ibm.com/legal/copytrade.shtml To learn more about how IBM Intelligent Other company, product or service names may Utility Network technology and services be trademarks or service marks of others. can benefit your company, please References in this publication to IBM products contact your local IBM representative or or services do not imply that IBM intends to make them available in all countries in which visit our IBM operates. Web site at: All performance information was determined ibm.com/energy in a controlled environment. Actual results may vary. Performance information is provided ibm.com/smarterplanet/grid “AS IS” and no warranties or guarantees are expressed or implied by IBM. Buyers should consult other sources of information, including system benchmarks, to evaluate the performance of a system they are considering buying. EUB03007-USEN-01