© 2009 IBM Corporation

Smarter Energy and UtilitiesMonitor & Manage the Intelligent Utility Network with IBM Netcool software

Near real-time, consolidated event management across business infrastructure, data centres, complex networks and IT domains.

Improve Efficiency, Meet Regulatory Requirements

© 2009 IBM Corporation2

Market forces are impacting the landscape of utilities, requiring the transformation of business models

Increased pressure on operational efficiency and workforce productivity

Environmental based regulation. How to

measure and prove?

Increased Security

Requirements

Aging Infrastructure with increased expectations on

reliability

Growth in renewable generation and distributed

resources. “Co Gen” challenges

Increasing consumer focus in energy management and

conservation

Industry challenges and opportunities

© 2009 IBM Corporation3

IBM has worked with clients around the world to transform the energy value chain

CenterPoint Energy

Consumers Energy

Ontario Energy Board

Enemalta

ASM Brescia

MVV/City of Mannheim

EnBWEcotricity

Essential Energy Ausgrid

DTE Energy

DONG Energy

Progress Energy

Pacific Northwest National

Laboratory

San Francisco Public Utilities Commission

Oncor

Red Electrica de Espana

npower

Guangdong Dapeng LNGAustin

Energy

Hildebrand

Terna

Endesa S.A.

A large Brazilian Utility Company

Texas Electric Delivery Company

Power & Water

SP Ausnet

Ergon

Transpower

© 2009 IBM Corporation

Multi Industry Centersof Excellence

Multi Industry Centersof Excellence

North America Europe Asia Pacific

Solutions Experience Lab at IBM Houston

Energy & Utilities Solutions Centre at IBM La Gaude

Multi Industry Centersof Excellence

Integrating industry solutions with infrastructure

Bridging the gap from business process to technology

WW Global Energy & Utility Solution Centers

In-depth Industry Solution Architecture and Integration capabilities

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China Development Lab for E&Uat IBM Beijing

Demonstration centers showcase innovative solutions for the E&U Industry with many integrated, solution prototypes. Demonstrations can be projected in live video anywhere in the world!

© 2009 IBM Corporation

Focus Areas

Improved Operational Efficiency whilst meeting

Regulatory Requirements

“Measure, Manage, Prove”

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© 2009 IBM Corporation

Network transformation challenges

As IT and power systems networks converge, traditional security risks impact power infrastructure

CONVERGENCE

CONVERGENCE

Source: Electric Power Research Institute (EPRI)

© 2009 IBM Corporation

Consolidated Operations

Challenge - How to manage the explosion of event data emanating from the increasingly complicated operating environment and to put context around the business service impact of silo’d event feeds? This challenge applies equally to the Comms Network, the Datacenter environment, and the Intelligent Utility Network (Comms and IED’s).

Operational Outcome – leverage the event data coming from the silo’s of monitoring and management by placing fault conditions in a wider business service context. Identify gaps in monitoring and understand the interdependencies in play and the Root Cause/Symptom relationships to allow prioritization of effort on actionable incidents.

Business Benefits – Improved Operational efficiency allowing for a leaner Operational group (headcount and Tools) whilst delivering tangible improvements in cost reduction and lowered MTTR with associated outage claim exposure.

Average cost to roll a truck in Victoria is approx $1000/day. In Queensland it is closer to $2000/day.British Telecom ROI using IBM Netcool Technology:

Consolidated 27 NOCs into 2 Saved costs on s/w, h/w, facilities, 80% staff reductionReduced MTTR by 50% Reduced fault rectification costs by factor of 10Events reduction of 2,500:1 Reduced OPEX of £736,000 a year

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© 2009 IBM Corporation

SmartGrid Management

Challenge - How to address the management burden of the increasingly complex, IP enabled SmartDevices being deployed into the Grid? Often, these devices perform key protection roles such as Safety Switching and are typically subject to Regulatory rigor resulting in more frequent change management and audit obligations.

Operational Outcome – Single, Scalable tool to manage appropriate Intelligent devices within a multi-vendor, heterogeneous SmartGrid in a controlled and timely manner. Repeatable configuration templates and “Golden Masters” allow for rapid, error free, auditable management of devices located in potentially Geographically dispersed and remote locations. Drive change through automation via Consolidated Ops.

Business Benefits – Improved Operational efficiency through automation and consolidated Tools framework whilst ensuring Regulatory Requirements can be met and measured. Minimize OH&S exposure through reduced Truck Rolls ($1000/day Victoria, $2000/day Queensland)/Physical Pole Climb and litigation.

$19.7m Compensation for Beechworth Fire$22m sought from Victorian Government in Kilmore East Fire Class ActionCulpable for death of 119 people (out of 173 total)

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© 2009 IBM Corporation

SmartGrid Analytics

Challenge - How to leverage the event data exposed from the grid for Automation, Reporting, OH&S and Asset Management purposes. Also how to exploit asset data held in repositories to add additional context to faults.

Operational Outcome – Utilise event data such as Weather Station notifications to drive automation and for rapid identification of localized concerns. Exploit PQ event data to isolate and target failing infrastructure and provide additional layers of rigor around field maintenance (isolation). Provide quantifiable service quality data to the business.

Business Benefits – Improve operational efficiency through minimising user intervention in smart grid device management. Targeted maintenance allows for pre-emptive, preventative asset management moving from inefficient and expensive scheduled inspection. Better exploit event data and reporting capabilities for PQ potentially assisting with PUF leading to tangible financial incentives from State Government. Minimise OH&S exposure and associated penalties.

Victorian distributor reports multi million $credits/month through PUF reporting

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© 2009 IBM Corporation

Discussion Topics

What are your top challenges currently and what will they be moving forward?– Regulatory & State Government reporting?– Improved Operational efficiency?

What is your Smart Grid Strategy?– What devices do you have currently deployed and how do you manage?– What does your 5 year roadmap look like? – How has the Royal Victorian Bush Fire recommendations affected your roadmap?

Do you have challenges involving your unregulated lines of Business? – How do you ensure device configuration is compliant and hardened?– How do you assure telecommunications services provided to 3rd parties?– Do you offer service levels? How do you measure and prove?

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© 2009 IBM Corporation

Reference Material

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© 2009 IBM Corporation

E&U Reference Customers

Centerpoint Energy Houston Texas– Deployed 2.4 AMI Meters– Manages Itron OpenWay Cell Relays (neighborhood collectors) and significant events

from HP OpenView, CiscoWorks and GE PulseNet. They also manage a number of servers and appliances that host Meter Data Collection Engines, DataPower XML accelerator, and the Meter Data Management System.

Oncor Dallas Texas– Oncor in Dallas, TX, recently purchased Netcool to manage 400 Smart Grid Routers and

alarms from 4 million Landis & Gyr AMI meters

Oklahoma Gas & Electric– Use Tivoli Monitoring as an "event Manager of Managers" to visualize and act upon

events from many sources in the AMI environment; CiscoWorks, Nortel ONG, ABB distribution management system, SilverSprings UtilityIQ,

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© 2009 IBM Corporation

Great River Energy– An electric utility in the United States closes 40 percent of its service requests within two

hours and satisfies 85 percent of them without escalation when it builds an integrated service and asset management solution based on IBM Tivoli Service Request Manager, IBM Tivoli Asset Management for IT and IBM Maximo Asset Management software

Light Serviços de Eletricidade S.A– A major Brazilian utility serving a large metropolitan area creates an interconnected

system of intelligent devices to sense, monitor and respond to indicators of the status of an electric distribution network to improve service delivery for its customers by leveraging Tivoli Monitoring, Tivoli Netcool/OMNIbus, IBM System x3500 and IBM Global Technology Services

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E&U Reference Customers

© 2009 IBM Corporation14

Telekom Austria:Events reduction of 40,000:1Processed over 4m events a day and reduced to less than 100 critical alarmsReduced fault investigation time by 50%Reduced downtime by 25%Reduced operational costs by approx €6m a year British Telecom:Consolidated 27 NOCs into 2Saved costs on s/w, h/w, facilities, 80% staff reductionReduced MTTR by 50%Reduced fault rectification costs by factor of 10 BT Global Services:Events reduction of 2,500:1Reduced OPEX of £736,000 a yearSaved £171,000 a year on s/w, h/w & licenses 

 KPN:Consolidated 13 NOCs into 2Reduced operations headcount from 700 to 300Overall ROI $19m in 9 monthsAdvanced intra-domain correlation for Transmission network:

Reduced 10K alarms to less than 9 root cause alarmsRoot cause identified within 3 minReduced 12 people to 4, covering 4 regions (1 each)

 Telecom Italia:Increased operational efficiencies by 10% in service assurance processesReduced Trouble Tickets creation time by 15minReduced correlation time between faults by 30minReduced provisioning time by 4min per orderReduced ADSL delivery time from 21 days to 7 dayIncreased operational efficiencies by 20% in service delivery processes 

Non E&U Consolidated Ops Reference Customers

© 2009 IBM Corporation15

IBM Research: Smarter Energy

Solution DrivenStrategy

Committees and standards

Joint research and pilots

Regional Demonstrations National Labs Universities Industry/client partners, technology

consortia– Smart grids, Batteries, Plug-In Vehicles

First of a Kind projects

DOE GridWise Architecture Council

NIST SG Working Groups ISO, IEC, IEEE, …

Smart grid enablement– Real-world aware systems-of-systems

architectures– Modeling, analytics and optimization– Renewable and EV integration, optimization– Demand response – Interoperability frameworks and messaging– Cyber-physical system security– Social computing– Compute and storage clouds, HPC

Smarter Energy Platform Intelligent buildings and green data centers

© 2009 IBM Corporation

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