Implementing the Smart Grid: Enterprise Information Integration

1. Implementing the Smart Grid:  Enterprise Information Integration Presented at Grid Interop Forum Albuquerque, NM November 9, 2007 By Ali Ipakchi, VP, Integration Services ML Chan, Sr. Principal Consultant KEMA, Inc.

2. Smart Grid Business Drivers An emerging new Business Environment SG Greenhouse Gases Operational Efficiency Renewable Resources Aging Infrastructure OPERATIONS EXCELLENCE ENVIRONMENT Demand Response Aging Workforce SECURITY & QUALITY OF SUPPLY Capacity Supply Reliability Power Quality

3. The Smart Grid of The Future

4. Smart Grid Challenges Business Roadmap uncertainties: regulatory and cost recovery Risk averseness: impact on existing operations and practices Changing customer and market expectations Technology Complexity of the just-in-time power delivery operations Potential scope of impact Limited industry supported standards for the technology and its inter-operability IEEE, ANSI and other regional and utility standards: Network Design, Interconnections, and operations IEC TC57: IEC61850 for SA, IEC61968 for DMS – IEC61970 for EMS – CIM and its extensions Sluggishness of the established vendor community and the potential risks of emerging and smaller suppliers Process Traditional organizational roles and responsibilities and business practices limit the required innovations People Multi-disciplinary nature of required changes Aging workforce and limited availability of in-house expertise

5. Smart Grid Building Blocks Regulatory & Market Incentives Environment – Conservation Reliability Organizational Capabilities Business Processes Roles & Responsibilities - Skills Technology Supply Side Distributed & Demand-Side Resources Interconnections and Micro-Grids Power Delivery Network Design Protection and Control Strategies Asset Management & Utilization Information Technologies Data Communications Data Management Enterprise Level Integration and Inter-operability Intelligent Applications

6. Smart Grid Requires an End-to-End Operational View Individual technologies and enablers are critical components E.g., high-bandwidth, secure, and two-way communications infrastructure However, real benefits are achieved when considering the end-to-end impact and integration

7. Smart Grid Also Requires A Holistic View Of The Business Changes touch many parts of the organization Decisions require collaboration between business units High values are gained through projects crossing organizational Boundaries Requires a resistance to the lure of easier short-term solutions made with a “silo” mentality Examples: Advanced Metering Customer Services (metering) – System Operations (DSM and Distribution Automation) Outage Management Customer Service & System Operations, Enterprise systems Asset Management – System Ops People: Organizations, Responsibilities, Skills Process: Roles, Information & Work Flow Technology: Information, Automation

8. Example: Improved Reliability Through OMS/DMS/AMI Integration Integrating Outage Management with GIS, SCADA, AMI and Mobile Workforce Automation Last gasp and outage verification from meters Network Connectivity from GIS Integration with SCADA/DMS remote switching Mobile workforce dispatch and communications Significant Improvements in SAIDI Timely and Accurate Data to Customers US Averages US Best Practices EU Averages Best Practices

9. Example: Management of Distributed & Demand Side Resources Large penetration levels require significant data management Aggregation, scheduling, market operations, billing and settlements Distribution voltage and power quality management, distribution automation Islanding and micro-grid operations Electrical Network need to be supported by an Information Network Project and technology synergies need to be fully explored and exploited Coordinated Voltage VAr Control

10. Example: Asset Management - Condition Based Maintenance and Inspection Equipment Life Extension, System Capacity Expansion Equipment performance and failure probabilistic model Improve O&M efficiencies - Improve maintenance processes Reduce number of “catastrophic” failures

11. A Utility of the Future Vision Higher values are gained through enterprise level information and process integration

12. Smart Grid Technology Implementation Considerations An end-to-end and holistic view is required Data integration and data management is a key requirement

13. Utility Enterprise Information Management Identify the Enterprise Data Assets Establish System of Records Version of Truth – Master Data Define Enterprise Data Management Disciplines Data Stewardship, Data Organization, Content Management, Data Access Data Ownership, Data Modeling Standards, Data Maintenance Data Marts and Data Federation

14. Enterprise Information Integration Integration of messages, events & notifications – Message Service Bus Real-time, queuing and guaranteed delivery Integration of Operational and Business Data Published Data Schemas, Data Access, Data Federation and Data Marts Service Oriented Integration Strategies Functionality and flexibility needed to support utility operations and business

15. A Case Study Utility Vision To make the diverse T&D operational data available to the users across company end-users and functional areas: Where and when needed; Right person gets the right data; In a form that is most useful to the users; and While ensuring high levels of data quality. Correlate operational data and knowledge into meaningful information about the overall health of power systems Coverage of Scope People: Regions, Asset Management, System Operations, Technical Services, Engineering, Constructions, Operations Process: T&D Business Life Cycle Technology: Operational Systems, Applications, and Data

16. Current State Assessment: Observations Improvement areas Many systems but separate and un-integrated database Lack of company-wide guidelines for data management Unclear data ownership and custodianship A need for defining a single authoritative source for each data group No common definitions, formats, and units of measure for master data A need for performance indices to measure, monitor, and manage data quality and data services Lack of the concept “utilizing data” and therefore insufficient quality control on data input Can further improve Operational Efficiency, Effectiveness, Reliability and Safety

17. Current State Assessment:Summary The utility puts significant effort to collect operational data. The data can be further utilized to speed up operational decisions The following two aspects are critical to developing high-value operational intelligence applications: Data quality Information integration infrastructure The utility should: Improve data quality by establishing enterprise data management policy Set up enterprise architecture framework to minimize the development and operating costs Implement Smart Grid applications to reap benefits

18. Enterprise Architectural Framework Users Users Users Data Portal Data Mart Applications Integration Infrastructure Users Users Applications Applications Information Management Principles Data Governance

19. Information Management Principles Stewardship (Chain-of-custody) Content (Quality) Organization (Definition) Data Access (Readiness) Presentation (Presentation) Integration

20. Apply Best Practices to IT Systems: Implementation Steps Identify the utility’s key Data Assets Apply Information Management Principles – Data “Quality” Program Define Data Stewardship - Governance Formalize Data Organization – Operational Data Modeling & Mgmt Standards Implement Data Content Management – SLA Establish a Reference Architecture for Enterprise-wide Data Access Data Access and Integration Framework - Data Mart Concept Data Transformation and Presentment – Data Portal Concept Implement Key System Capabilities to Close High-Value Gaps Operational Data Warehouse – DMS and Field Data Operational Data Portal Utilize the Capabilities to Improve Operational Efficiencies Condition-based Inspection and Maintenance Intelligent Outage Restoration System Advanced project planning, design and commissioning

21. Roadmap to Smart Grid / Utility of the Future Strategic Planning Phased Implementation Approach Transformation from a “Silo-Based” Business Business Case Analysis Business Supported and Business Driven Initiatives Project Synergies Enabling and Foundational Capabilities Organizational – People Technology Practical and Leveraged Solutions Interoperability Standards Data and applications First Movers

22. Thank You ! Contact Information: ali.ipakchi@KEMA.com mlchan@kema.us