Smart Energy Management System

Smart Energy Management System
EnerGeneration, Inc.
University of St. Thomas
Individual Study Project (ETLS 881)
Instructors: Robert J. Monson
Anton Beck
Author: Alex Palamari
Date: 02/02/2016

1
Contents
Abstract.........................................................................................................................................................3
Figure 1: “V” diagram ..............................................................................................................................3
Introduction...................................................................................................................................................4
Project Overview and Summary ...................................................................................................................5
Table 1: User Needs..................................................................................................................................5
Table 2: AV-1 ...........................................................................................................................................7
High Level System Overview.......................................................................................................................8
Figure 2: OV-1..........................................................................................................................................9
Table 3: OV-1 Data Elements Table......................................................................................................10
Organizational Structure .............................................................................................................................11
Figure 3: SEMS Systems Engineering Integration Team (SEIT) ...........................................................11
SEMS Internal Operational Node Connectivity..........................................................................................12
Figure 4: OV-2........................................................................................................................................13
Table 4: Operational Element and Activity table....................................................................................15
Functional Analysis ....................................................................................................................................16
Figure 5: Functional analysis block diagram..........................................................................................17
System Requirements..................................................................................................................................18
Table 5: Performance Based System Specifications (PBSS) and requirements table.............................21
System Operational View ...........................................................................................................................22
System Architecture....................................................................................................................................23
Figure 6: OV-5 (A0 diagram) .....................................................................................................................25
Figure 7: OV-5 (A0 context diagram).........................................................................................................26
Figure 10: OV-5 (A3 diagram) ...................................................................................................................29
Figure 11: OV-5 (A4 diagram) ...................................................................................................................30
Figure 12: OV-5 (A3.3 diagram) ................................................................................................................31
Figure 13: OV-5 (A3.3 diagram) ................................................................................................................32
Figure 14: OV-5 (A3.3.3 diagram) .............................................................................................................33
Figure 15: OV-5 (A3.3.3.2) .......................................................................................................................34
Figure 16: System Architecture diagram ....................................................................................................35
Verification and Validation.........................................................................................................................36

2
Table 6: Measurement of Performance verification table (snapshot) .....................................................37
Risk Management .......................................................................................................................................38
Table 7: Risk Analysis matrix.................................................................................................................40
Figure 17: Risk Matrix (heat map). Before mitigation (top), after mitigation (bottom). ........................40
Summary.....................................................................................................................................................41
Reference ....................................................................................................................................................42

3
Abstract
Smart Energy Management System (SEMS) technical report will focus on the process of
development of a system that brings together modern day technology to reduce and eliminate
consumer dependence on conventional electrical grid and energy sources. EnerGeneration, Inc.
(EGY, Inc.) is a parent company responsible for SEMS design and development effort. EGY,
Inc. used Systems Engineering methodology and artifacts to elicit system functional needs,
develop and manage system requirements, define requirements verification and validation
(V&V) methods, and manage behaviors and interactions between subsystems. “V” model for
system development was used to ensure that the end product achieves its intended purpose and
meets all of the user needs.
Figure 1: “V” diagram

4
Introduction
A quest for energy independence is becoming more prevalent as costs associated with energy
storage, generation and management are driven down by technological advances in renewable
energy industry. Increasing number of residential households and neighborhoods turn to
renewable energy sources (solar, wind, thermal, etc.) as means to save money on energy bills,
contribute to preservation of natural resources and ensure uninterrupted supply of electricity in
case of natural or human caused disasters.
There are several key constraints associated with off the shelf energy generation and storage
systems. Solar, wind and rain are all intermittent sources of energy available only during certain
periods of time. A lack of interdependencies between individual components of available
systems prohibits seamless operational flow between its elements. As a result, excessive user
intervention is required to aid these components and systems to perform their basic functions.
SEMS is designed to address the shortcomings of available off the shelf energy generation and
storage components. It integrates these components into single system that leverages its
capabilities to absorb deficiencies of individual subsystems.
SEMS consists of two major subsystems: energy generation and energy management. Energy
generation subsystem includes components required for generating electricity from multiple
energy sources (photovoltaic cells, wind turbine, piezo-electric pad). Energy management
subsystem includes energy storage and current conversion components, weather station and
system control module. SEMS is controlled by firmware and software packages that are
embedded into control module.

5
Project Overview and Summary
SEMS all view table (AV-1) documents key project information. The process of populating
various sections of AV-1 forced system engineer to think about all aspects of the system, its
interactions with the outside world, threats and issues that may arise during any given phase of
system lifecycle. This document also served as a cornerstone for user needs and system
requirement definition, functional analysis and system architecture development.
The key to building a system that achieves its intended purpose is to understand what users
expect to receive when the system is complete. It is nearly impossible for a system engineer to
define all of the user needs for a given system. Often, neither users nor system engineers possess
adequate information to accomplish this task during early stages of a development process. It is,
however, possible to begin developing basic user needs (Table 1) based on the information found
in AV-1. Various sections of AV-1 offer different perspective of a system from which system
engineer can formulate and predict user needs.
Table 1: User Needs
1 Affordable system 13 Aesthetics
2 Reliable components and system 14 Generates energy (solar, wind, rain)
3 Low maintenance 15 Stores Energy
4 Intuitive Interface (easy to use) 16 Manages energy distribution
5 High quality 17 Learns household energy requirements
6 Safe (S/W and H/W) 18 Provides energy generation and
consumption data
7 Autonomous system 19 Provides energy level information
8 Compact design (small footprint) 20 Provides Alerts
9 Reduce dependence on conventional grid 21 Monitors weather conditions
10 Promote sustainable energy technologies 22 Predicts anticipated energy generations
(based on forecast)
11 Reduce/ eliminate household energy bill 23 Balance energy consumption between
renewable and conventional energy sources
12 Extra income for generated energy
(returned to the grid)
24 Has preset and customizable user settings

6
Project Name: Smart Energy Generation and Management System (SEMS)
Architects: Alexandr Palamari
Organization: EnerGeneration, Inc. (EGY, Inc.)
Project Start Date: 9/1/2015
Project Completion Date: 12/18/2015
Approver: Robert J. Monson
Anton Beck
Purpose: Develop an alternative energy system that generates, stores, and manages the distribution of
electrical power from the renewable energy sources and conventional grid
Scope: Develop an alternative energy system for single household use:
- Multi-source renewable energy (solar, piezoelectric- rainfall, wind) generation kits
- Electrical energy monitoring and distribution system (smart grid)
- Electrical energy storage solutions (batteries)
Mission: Reduce and/or eliminate consumer dependence on conventional energy sources and reduce
inefficiencies associated with electrical energy transmission
Threats - System/ Subsystems costs
- Cyber Security
- High Maintenance Costs
- Energy companies
- Lack of product demand
- Not consumer friendly
- Technophobic consumers
- Environmental concerns (noise, vibrations, weather, protected lands/animals, aesthetics)
- Federal Government and State Regulations
- Human Factors
- Form Factor (size, weight)

7
Geographical Region of
Interest
United States:
- Minnesota
Rules, Conventions, Criteria Industry safety, federal, state and other applicable regulations shall be followed in creating
the alternative energy system.
The list of the applicable regulations will be researched after project approval by Robert
Monson
Stakeholders - System Architects
- Households (Consumers)
- Neighborhoods/ Towns/ Cities (Consumers)
- Green Movement
- Software Developers
- Internet Providers
- Component Manufacturers
- Energy Companies
- Financial Institutions
- Federal/ State/ Local Government
- Investors
Findings - There is a wide variety of Off-the-Shelf energy generation products available (solar, wind,
geothermal, hydroelectric)
- There are similar pilot projects under way in Netherlands and Minneapolis, MN (energy co-
ops)
- Many companies already offer or are developing new home energy storage solutions
(batteries)
Issues Complexity of alternative energy generation, storage and distribution
Table 2: AV-1

8
High Level System Overview
High level system overview represented by OV-1 diagram (Figure 2) demonstrates a concept of
operation of SEMS. OV-1 data elements table (Table 2) includes description of the individual
components and interactions between various parts of the system. A combination of geometrical
shapes, arrows and pictures are organized in a simple view to depict operational and information
flow, action items, and connectivity between system elements and users. SEMS and a household
are positioned side by side on the diagram to highlight natural flow of activities starting with
energy generation to energy distribution inside the household.
Individual components of energy generation subsystem get activated when an energy source is
detected. Alternatively, control module can activate/ deactivate each element of the generation
system based on anticipated weather conditions, processed data or user input. Generated
electrical current is converted to direct current (DC) via rectifier for storage. SEMS is capable of
supplementing battery charge from the conventional grid in case energy generation system is not
operational or does not generate enough electricity. Control module has three primary functions:
serve as user interface device, process data, and control system elements. Control module uses
user inputs and processed data (energy generation, consumption, charge level and weather data)
to make energy distributions decisions. The energy is distributed to either satisfy household
energy demand or to be returned back to the grid in case excess energy has been generated. The
user has access to SEMS energy database as well as full control over the system via any smart
device running on one of the three major operating systems.

10
Table 3: OV-1 Data Elements Table

11
Organizational Structure
A complex system such as SEMS requires inputs from domain specific professionals in order to
ensure the highest performance of individual components and system as a whole. EGY, Inc. will
utilize System Engineering Integration (SEIT) structure to manage cross-functional effort from
software, hardware, electrical and other domain groups (Figure 3) to achieve that goal. SEIT
approach clearly defines the responsibilities assigned to domain specific professionals and team
leaders. This approach highlights cross-functional interactions during various phases of system
development and provides clear view of EGY, Inc. organizational structure.
Figure 3: SEMS Systems Engineering Integration Team (SEIT)

12
SEMS Internal Operational Node Connectivity
Operational Node Connectivity view (Figure 4) and the following table (Table 4) show system
internal interdependencies and interactions between SEMS elements. The decomposition of the
system interactions on the inter-node scale aids system engineer in uncovering underlying design
deficiencies that have not surfaced during earlier phases of the development.
Operational Element Activity table narrates system operational flow from producing and
receiving node perspective. Individual elements of these nodes are associated with their activities
and type of interactions that are taking place between them. In some instances these interactions
are simply defined by sending electrical current to be converted, stored, distributed or returned
back to the grid. More complex interactions involve exchanges of various types of data (energy,
weather, battery state, etc.). For example, energy storage subsystem generates raw energy data.
This information is sent to a processor which is a part of the control module subsystem. The raw
data from the storage subsystem is then processed and presented to a user in a form of battery
state report (health/ charge) and energy generation and consumption profiles. User can utilize
this data to set preferred energy modes, set consumption balance (% from the grid vs % from the
generation system), and send system on/off commands from their device.
A degree of SEMS autonomy can be observed among many operational flow loops. Weather
data from the weather station in combination with online weather sources can be used to make
specific adjustment (angle of the solar panel, turbine settings) to the elements of generation
subsystem to maximize energy generation efficiency. SEMS can also shutdown parts of the
generation subsystem as damage preventative measure in case of severe weather events when
user intervention is impossible.

14
Producing Node Receiving Node
Operational
Information
Element
Description Operational Element & Activity Operational Element & Activity
1a Alternating electrical current
(AC)
Wind Turbine Convert kinetic energy of the
wind to electricity
Power Rectifier Convert AC to direct current
(DC) for storage
1b Direct electrical current (DC) Photovoltaic (PV)
Cells
Convert light energy of the sun to
electricity
Battery Store DC electricity
1c Direct electrical current (DC) Piezoelectric Pad Convert kinetic energy of the rain
to electricity
2 Alternating electrical current
(AC)
Electrical Grid Generate electricity from
hydroelectric, coal, gas or nuclear
energy sources
Power Rectifier Convert AC to direct current
(DC) for storage
3 Direct electrical current (DC) Power Rectifier Convert AC to direct current
(DC) for storage
4 Raw Energy Data Battery Storage Generate raw energy data Processor Process data from battery
storage, generate battery status,
charge, energy profile and
consumption data
5 Weather Data Weather Station Generate Weather Data Processor Process weather data (wind
speed, temperature,
sunrise/sunset, humidity,
pressure)
6a SEMS Data Control Module Generate user specified data User's Smart
Device
Display SEMS Data
6b SEMS Data Processor Process data Touchscreen
Display
Display SEMS Data

15
Table 4: Operational Element and Activity table
7a User Prompts/Commands Signals User's Smart
Device
Take input from user for
commands/settings (energy
modes, consumption balance,
system on/off, etc.) to process
Processor Process user inputs
7b User Prompts/Commands Signals Touchscreen
Display
Take input from user for
commands/settings (energy
modes, consumption balance,
system on/off, etc.) to process
Processor Process user inputs
8 Processed Command Signals Processor Generate command signals based
on energy profiles and/or user
prompts
Energy Storage Execute command signals
9 Direct electrical current (DC) Battery Unload stored DC electricity Power Inverter Convert DC to AC
(AC)
Power Inverter Convert DC to AC Electrical Panel Interface SEMS with the
household grid
(AC)
Power Inverter Convert DC to AC Electrical Grid Receive excess generated
energy
(AC)
Electrical Panel Interface SEMS with the
household grid
User Power
Needs
Consume generated electrical
energy
13a Control Signal Processor Send control signal based on
weather data (wind directions,
speed)
Wind Turbine Adjust position, turn on/off
13b Control Signal Processor Send control signal based on
weather data (time of day)
Photovoltaic
Cells
Adjust position for optimal
angle
13c Control Signal Processor Send control signal based on
weather data
Piezoelectric
Pad
Adjust position for optimal
performance
14 Raw Energy Data Wind Turbine/PV
Cells/Piezoelectric
Pad
Energy Generation Data Processor Process energy generation data
from generation subsystem

16
Functional Analysis
EGY, Inc. used functional analysis (Figure 5) to create a link between user needs and system
requirements, avoid redundancies and identify potential gaps within SEMS functional flow. The
first step of the analysis development process was to generate a list of blocks (verb-noun
phrases) that characterize overall system operation. The resulting functional blocks were
arranged in a sequential manner to represent a logical flow of events that define SEMS
operational cycle. These blocks were grouped in a way that emphasizes functional needs specific
to each of the major subsystems. As a result, SEMS functional analysis was broken down into
three major functional groups: system setup, energy generation and storage, energy management
and distribution. Complete functional analysis diagram represents SEMS intended design, i.e.
“what the system must do” instead of “how it will do it”.
System setup is defined by installing hardware components, establishing required
communication links, components initialization and setting user profile preferences. Once system
set up is complete SEMS is ready to generate, store and manage energy distribution. Energy
generation and storage are defined by detection of energy sources, current generation and current
conversion to direct current (DC) for storage. SEMS will start processing energy data in the
background (yellow blocks, Figure 5) as soon as it receives raw data from other system
components. The resulting information will be used to make energy distribution decisions and
display user data.

17
Figure 5: Functional analysis block diagram

18
System Requirements
Requirement generation process for SEMS started at the early phases of design development.
SEMS and its components went through iterative evaluation from different perspectives using
systems engineering artifacts like OV-1, OV-2, functional analysis, etc. EGY, Inc. has generated
51 requirements that address user needs for the entire systems and individual components. This
number will be increased through addition of requirements and specifications as the project
advances through design and development phases.
EGY, Inc. used Performance Based System Specifications (PBSS) table (Table 5) to manage
SEMS requirements. Every line item of the PBSS table corresponds to a specific system,
subsystem or component. All of the PBSS entries are characterized by requirement type (general,
technical, functional, etc.), the timing of requirement verification (design phase) and proposed
verification method (inspection, analysis, demo, test).
EGY, Inc. has identified 9 key requirements that describe the intent of the system and are
fundamental to successful system design. These requirements details specific performance
criteria expected from SEMS. Each of these requirements must go through verification and
validation process before SEMS development can be considered complete.

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ID PBSS Requirement
Type
Verification Phase Verification Method Technical Measures
Requirement Yes/No
Requirement
Type
Subsystem
Prelim
Design
Detailed
Design
Oper
Test
1st
Article
Inspect Analysis Demo Test MOP TPM MOE
The system shall generate electrical energy from
the following sources:
- sun
- wind
- rain
1 No General
SEMS
System
X X X
The system shall store energy from renewable
sources and from conventional grid (storage
capacity)
2 No General
SEMS
System
X X X
The system shall reduce household dependence on
conventional energy sources
3 No General
SEMS
System
X X X
The system shall have following subsystems:
- energy generation (EG)
- energy management (EMS)
4 No General
SEMS
System
X X X
The system shall manage energy distribution 5 No General
SEMS
System
X X X
The system shall return excess generated energy
to conventional grid
6 No Functional
SEMS
System
X X X
The system shall report household energy usage at
least once per day
7 Yes Functional
Energy
Management
X X X
The system shall interface with standard
household electrical panel (wire gauge)
8 No Operational
Energy
Management
X X X
The system shall use touchscreen technology for
user interface
9 No Usability
Energy
Management
X X X
The system shall have adequate protection from
kinetic and non-kinetic threats
10 No Safety/Security
SEMS
System
X X X
The EG subsystem shall withstand harsh weather
conditions (wind gusts, flooding, min max temps,
heat, freeze)
11 Yes Operational
Energy
Generation
X X X
The system shall have capability to operate
autonomously for at least 14-day period
12 Yes General
SEMS
System
X X X X
The system shall have compact footprint 13 No
Physical
Characteristics
SEMS
System
X X X
The system shall reduce household monthly
energy bill by at least 25%
14 Yes Functional
SEMS
System
X X X
The subsystems shall have aesthetically pleasant
components
15 No
Physical
Characteristics
SEMS
System
X X X

20
The system shall learn household energy
consumption profiles within 95% accuracy
16 Yes Functional
Energy
Management
X X X
The system shall calculate energy consumption
and generation data
17 No Functional
Energy
Management
X X X
The system shall calculate energy storage levels
with 95% accuracy
18 Yes Functional
Energy
Management
X X X
The system shall provide alerts 19 No Usability
Energy
Management
X X X
The system shall update weather forecast data
twice per hour
20 Yes Functional
Energy
Management
X X X
The system shall predict energy generation based
on weather forecast with 95% accuracy
21 Yes Functional
Energy
Management
X X X
The system shall balance energy supply between
renewable and conventional energy sources
22 No General
SEMS
System
X X X
The power management subsystem shall get an
update from the weather station once/ time
interval
23 Yes Functional
Energy
Management
X X X
The system shall use Vertical Axis Wind Turbine
(VAWTS) to generate wind energy
24 No Functional
Energy
Management
X X X
The solar panels shall adjust its tilt four times/
period based on sun position in the sky
25 Yes Functional
Energy
Management
X X X
Energy storage subsystem shall be AC-coupled 26 Yes Functional
Energy
Management
X X X
The generated power shall be transported to EMS
subsystem via ET subsystem with less than 3%
loss of voltage over 30 feet distance
27 Yes Functional
SEMS
System
X X X
Energy Storage subsystem shall be able to hold
generated energy
28 No Functional
Energy
Management
X X X
EMS subsystem shall interface with a household
electrical panel
29 No Functional
Energy
Management
X X X
The system shall use photovoltaic cells to
generate solar energy
30 No Functional
Energy
Management
X X X
The system shall use piezoelectric pad to generate
rain energy
31 No Functional
Energy
Management
X X X
Control module shall wireless communication
capabilities
32 No Functional
Energy
Management
X X X
SEMS subsystems and components shall comply
with the required safety regulations/standards
33 No Technical
SEMS
System
X X X
SEMS subsystems and components shall comply
with the required communications standard
inspection
34 No Technical
SEMS
System
X X X
SEMS subsystems and components shall have a
built-in shock hazard prevention Inspect/evaluate
SEMS
System
X X X X

21
SEMS data shall be encrypted for privacy and
security
SEMS
System
X X X X
SEMS system shall be UL approved 37 No Technical
SEMS
System
X X X X
SEMS system shall meet FCC part 15
requirements
38 No Technical
SEMS
System
X X X
Wind turbine shall have 10kW power rating 39 Yes Technical
Energy
Generation
X X X
Wind turbine assembly packing weight shall not
exceed 600 kg
40 Yes
Physical
Characteristics
Energy
Generation
X X X
SEMS systems shall use proprietary software and
firmware application
41 No Usability
SEMS
System
X X X X X
SEMS initial launch shall not take longer than 20
minutes
42 Yes Usability
SEMS
System
X X X
SEMS shall have a MTBF of no less than 5000
hours
43 Yes Technical
SEMS
System
X X X
SEMS shall have a MTTR of no more than 60
minutes
44 Yes Technical
SEMS
System
X X X
SEMS shall operate without failures at -20C to
43C temperature range
45 Yes Operational
SEMS
System
X X X
The control module shall have fingerprint scanner
and password protection for accessibility
Energy
Generation
X X X X
SEMS shall scan for software/firmware updates at
least once in 14 day period
47 Yes Service
SEMS
System
X X X
SEMS subsystems and components shall be
accessible for maintenance
48 No Service
SEMS
System
X X X
Customer shall receive response within 2 hours
for service related inquires
49 Yes Service
SEMS
System
X X X
Energy storage subsystem shall be rated at no less
than 10 kWh
50 Yes Technical
Energy
Management
X X X X
The system shall "learn" energy consumption
profiles
51 No Operational
SEMS
System
X X X
Table 5: Performance Based System Specifications (PBSS) and requirements table

22
System Operational View
System Operational View (OV-5) is a supplemental diagram to OV-2 (internal resource flow
diagram). SEMS OV-5 (Figure 6-17) describes tasks that take place during normal operation of
the system. It’s an activity decomposition model that starts with the system primary task and
drills down to the simplest functions performed by individual components. Every task described
in OV-5 is a function with its own inputs, outputs, resources and constraints. An output from one
functional block becomes an input to the next one, while both resources and constraints are
shared between the blocks and are traceable down to the lowest levels of functional
decomposition.
One of the SEMS’s primary functions is to generate and manage energy distribution. The system
requires certain inputs from energy sources (sunshine, rain, wind and current from conventional
grid) and the user (set energy profiles) to complete this task. The outputs of the primary function
are directly aligned with the project primary mission. The result of the operational activities
inside the box in Figure 6 are system’s outputs in a form of energy cost savings, energy
independence and extra income from returned energy.
SEMS OV-5 delivers a visual message of how subsystems interact with each other and how they
share common and component specific resources and constraints. Hardware footprint, safety and
security, regulations and maintenance are all examples of the constraints that define whether the
system can perform all of its tasks successfully. For example, excessively large hardware
footprint for system components may become a prohibiting factor during system installation or
maintenance. EGY, Inc. has developed component size requirements to mitigate this specific risk
based on activity decomposition analysis on Figures 8. Through the process of developing an

23
OV-5 for SEMS, EGY, Inc. was able to identify essential resources to support required
functionality of the system. For example, wireless communication can be found on multiple OV-
5 nodes. It gives SEMS the ability to deliver energy data to user’s device, update system’s
software and firmware, send/receive energy and weather data, and store data on the cloud
platform.
System Architecture
SEMS Architecture (Figure 16) represents a hierarchical breakdown of the resources that make
up the entire system. This diagram becomes a cornerstone for components detailed design
development process. The lines between various elements of the diagram represent resource
interdependencies of the system components.
The top part of the diagram contains general flow of the functional events:
1. Generate Energy
2. Store Energy
3. Process Data
4. Manage Distribution
5. Access Data
Each of the functional elements is further partitioned to create a more detailed view of a given
task. For example, data processing element draws resources (raw data) from the remaining parts
of the system. After further breakdown of data processing, EGY, Inc. determined that data
presented to the user must include battery status information in addition to the primary
information about energy generation and consumption. Additionally, SEMS must be capable of
receiving user control signals/commands and storing data. Further element partitioning is

24
required in order to better understand system limitations and define component technical
performance measures.

25
Figure 6: OV-5 (A0 diagram)

26
Figure 7: OV-5 (A0 context diagram)

27

28

29

30

31
Figure 12: OV-5 (A3.3 diagram)

32Figure 13: OV-5 (A3.3 diagram)

33
Figure 14: OV-5 (A3.3.3 diagram)

35
Figure 16: System Architecture diagram

36
Verification and Validation
Verification and validation methods from system engineering domain will be used to confirm
that all SEMS requirements are fulfilled and system indented use objectives are achieved. Test
methods will be developed to measure objective performance and technical criteria for every
requirement listed in the PBSS table. EGY, Inc. will utilize Test and Evaluation Master Plan
(TEMP) platform to provide direction for the management of required test activities. The test
plan to verify how systems and components perform against SEMS requirements will follow the
architecture decomposition tree. The requirements associated with the components from the
lowest level of decomposition tree will be tested first during unit and functional testing.
Integration and system testing will follow as long as components and subsystems meet required
performance and technical criteria. Requirements test summary and data will be recorded in
Measurement of Performance verification table (Table 6).
For example, PBSS entry with ID 43 requires Mean Time Before Failure (MTBF) of no less than
5000 hours for the system. SEMS will have to be in fully operational state and be exposed to
environmental conditions similar of what is expected to be seen at the customer locations. This
requirement will have to be verified during Performance/Stress Testing at the system integration
lab. Test’s measured parameter is MTBF with the threshold of 5000 hours and objective >5,000
hours. Test results will be analyzed and verified against pass/fail criteria specified in Table 6 to
determine whether system requirement has been fulfilled.

37
Table 6: Measurement of Performance verification table (snapshot)
Requirement Parameter Threshold Objective Measurement
Method
Score
MOP 43
SEMS shall have a mean time before
failure (MTBF) of no less than 5000
hours
MTBF 5,000 hours >5,000 hours
Performance testing
at System
Integration Lab
(SIL)
Pass/Fail
Pass: >5,000 hours
Fail: <5,000 hours
MOP 44
SEMS shall have a mean time to
repair (MTTR) of no more than 60
minutes
MTTR ≥ 60 minutes 40 minutes
Component repair
time study at SIL.
Pass/ Fail (Score 1-3)
Pass:
Score 2: 40-60 minutes
Score 3: <40 minutes
Fail:
Score 1: >60 minutes
MOP 49
Customer shall receive response
within 2 hours for service related
inquires
Service
Response Time
≥ 2 hours < 2hours
Customer response
time study
Pass/ Fail (Score 1-3)
Pass:
Score 2: 30-120 minutes
Score 3: < 30 minutes
Fail:
Score 1: > 120 minutes

38
Risk Management
EGY, Inc. has compiled a list of risks that may impact product and organization in terms of cost,
budget, system operation and technology. Similar to requirements generation, risk identification
is an iterative process that will be performed throughout all phases of system development. Risk
analysis matrix (Table 7) will be used to record additional risks, and manage identified risks to
lower probability of unaddressed scenarios having an adverse impact on the system. The risks
recorded in Table 7 were measured in terms of probability of occurrence and financial impact.
Each of the entries in risk analysis matrix is organized by risk identification, effects, timing of
potential impact and mitigation plan. Figure 17 provides a pictorial summary of impacts
associated with identified risks before and after mitigation. The objective of this matrix is to
highlight which risks are in “red” or “yellow” category and trigger appropriate mitigation action
to keep the risks in the “green” area of the matrix. There were five risks mapped in the yellow
and one risk in the red zones prior to mitigation. EGY, Inc. team managed to pull all the risks
into “green” area after re-assessing them using mitigation plan.

39
Risk ID Risk Type
What is likely to go
wrong
Impact Before
Mitigation ($)
Probability
Before
Mitigation
Risk Before
Mitigation ($)
How and when will we
know
What will we do
about it
Impact After
Mitigation ($)
Probability
After
Mitigation
Risk After
Mitigation
($)
1 Budget/ Scheduling Risk Software development for
the EMS subsystem does
not meet the schedule
$ 75,000.00 0.76 $ 57,000.00
System configuration and
development step (V-
diagram). Project
Execution/ Control phase.
Weekly project status
meetings. Use Earn
Value Management
tools to track the status
of the project and take
appropriate when
required
$ 75,000.00 0.2 $ 15,000.00
2 Operational Risk SEMS SW does not meet
energy generation
estimation accuracy
requirements
$ 64,000.00 0.64 $ 40,960.00
Functional testing during
requirement verification.
The system algorithm will
use inaccurate data to
manage energy distribution.
Develop specific
software requirements
with quantitative
measurement
parameters. Perform
SW testing/ debugging
throughout
development process
$ 54,000.00 0.32 $ 17,280.00
3 Operational Risk Mechanical, Electrical,
Software failure
$ 100,000.00 0.48 $ 48,000.00
Customer will request
technical support for their
SEMS System. If not
addressed, could have
negative impact on products
sales and damage company
credibility.
Establish a robust
service engineering
team that can address
any problem remotely
or the locally. Use
modular design when
possible that allows for
faster service times
$ 100,000.00 0.17 $ 17,000.00
4 Technical Risk SEMS fails to get required
certification.
$ 85,000.00 0.42 $ 35,700.00
During system integration
testing. May impact
company ability to obtain
federal/state/local subsidies
or incentives. Delay product
launch.
Involve certification
bodies early in the
development stages.
Analyze all applicable
certification
requirements
$ 85,000.00 0.1 $ 8,500.00
5 Technical Risk Components for SEMS
system are not available/ do
not meet requirements from
suppliers
$ 68,000.00 0.64 $ 43,520.00
Will know early in the
development stage. The
system may not operate as
intended, deeming it to
failure.
Before any significant
system development
efforts: locate a
supplier and secure a
contract/ commitment,
or allocate own
resources for
technology
development.
$ 68,000.00 0.11 $ 7,480.00

40
6 Operational Risk Components/ subsystems
are not reliable
$ 100,000.00 0.35 $ 35,000.00
After full system
implementation. Negative
customer reviews and
increased warranty costs.
Used system
verification and
validation testing
procedures starting at
the earliest stages of
development.
$ 100,000.00 0.12 $ 12,000.00
7 Operational Risk EGY, Inc. fails to meet
requirements to enroll in
energy rebate program to
keep cost of SEMS down
$ 75,000.00 0.75 $ 56,250.00
High cost of product may
turn away potential
customers
Negotiate with local
and state regulators to
come to mutually
beneficial agreement
$ 75,000.00 0.25 $ 18,750.00
Table 7: Risk Analysis matrix
Figure 17: Risk Matrix (heat map). Before mitigation (top), after mitigation (bottom).

41
Summary
“System’s way of thinking” coupled with methodologies and artifacts used throughout System
Engineering (SE) disciplines (V&V, System Engineering, System Design, Project Management)
allowed EGY, Inc. to create blueprints for a successful product development and
implementation. EGY, Inc. followed “V” diagram method to capture and document essential
user needs, transform them into requirements and specification, and begin process of physical
design development. This project has allowed EGY, Inc. to put the methods learned during SE
program into practice in an attempt to reduce and eliminate consumer dependence on
conventional electrical grid and energy sources. Of course, the best practice comes with
experience, but being familiar with the different methodologies of System Engineering will give
EGY, Inc. an opportunity to complete the development of Smart Energy Management System
and, hopefully, implement it in the near future.

42
Reference
INCOSE. (October 2011). Systems Engineering Handbook. A guide for system life cycle
processes and activities.
Robert J. Monson (2015). Effective Project Management. A Phased Approach
VAWT. (October, 2009). Everwind Power Corps. Retrieved November 21, 2015 from:
http://www.everwindpower.com/SPECS.pdf
Off Grid Battery Systems. WSE Technologies. Retrieved November 21, 2015 from:
http://www.wsetech.com/battery.php
ALDO. (2014). Consulting. Retrieved January 1, 2016 from:
http://www.everwindpower.com/SPECS.pdf
Linda Pinkham (06/19/2009). Mother Earth News. What Are the Pros and Cons of Going Off the
Grid? Retrieved October, 2015 from:
http://www.motherearthnews.com/renewable-energy/pros-and-cons-of-going-off-the-grid-
z10b0blon.aspx
Linda Pinkham (5/21/2009). Mother Earth News. What’s the Average Cost to Install a Solar-
Electric System to Power Your Home? Retrieved October, 2015 from:
http://www.motherearthnews.com/renewable-energy/solar-electric-system-cost-z10b0blon.aspx
NREL's PVWatts®
Calculator. NREL. Retrieved October, 2015 from:
http://www.nrel.gov/rredc/pvwatts/
Jennifer Chait. Love to Know (2006-2016). Living Off the Grid. Retrieved October, 2015 from:
http://greenliving.lovetoknow.com/Living_Off_the_Grid
Amy Whittle. Love to Know (2006-2016). New Alternative Energy Sources for Homes.
Retrieved October, 2015 from:
http://greenliving.lovetoknow.com/New_Alternative_Energy_Sources_for_Homes
Rachel Hanson. Love to Know (2006-2016). Geothermal Residential Heating and Cooling.
Retrieved October, 2015 from:
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