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Feb 2011

Smarter Power for a Smarter Planet  Overview Shlomo Shamy E&U Solutions manager Global Technology Unit (GTU) IBM Israel. Feb 2011. A globally integrated world. 6x. 85%. 40% to 70%. Increase in global water usage since the 1900s, twice the rate of human population growth.

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Feb 2011

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  1. Smarter Power for a Smarter Planet OverviewShlomo ShamyE&U Solutions managerGlobal Technology Unit (GTU)IBM Israel Feb 2011

  2. A globally integrated world 6x 85% 40% to 70% Increase in global water usage since the 1900s, twice the rate of human population growth Idle computer capacity The losses of electrical energy due to inefficiency - around the world 70¢ per $1 Spent on IT maintenance 100 million $100 billion $11.5 billion People worldwide pushed below the poverty line by personal healthcare expenditures Lost annually in the US due to healthcare fraud Worth of produce is wasted in India because of outdated post-harvest infrastructure $78B lost 3.7B lost hrs 2.3B gallons of gas $40 billion 22% Annual consumer product and retail sales lost in United States due to supply chain inefficiencies of total port volume in North America is empty containers Annual impact of congested roadways

  3. What is happening?Organizations will need to optimize their use of energy andwater and minimize GHG emissions. WATER Water is needed to generate energy and energy is needed to provide water. CO2 emissions contribute to climate change, which impacts water systems. CARBON ENERGY Energy production results in CO2 emissions.

  4. Market Forces Market forces, impacting the landscape of utilities around the world, requiring the transformation of industry business models. Climate change and environmental concerns New entrants and disruptive technologies Growth in renewable generation and distributed resources Aging asset performance with increased expectations on reliability Increased pressure on operational efficiency and workforce productivity Increasing desire by consumers for a role in energy management and conservation

  5. What can be done?To deliver power more responsiblyand more efficiently, energy and utilities organizations are working toward a smarter energy value chain. TRANSFORMATION OF THE GRIDTransforming the grid from a rigid analog system to a dynamic and automated energy delivery system. ENERGY ANDUTILITIES EMPOWERMENT OF CONSUMERSEmpowering consumers by providing them with near real-time, detailed information about their energy usage. ENSURING CLEANER ENERGY SUPPLY Meeting stringent greenhouse gas emissions targets while maintaining sufficient, cost-effective power supply.

  6. Why should we act?There is an imperative from government and consumers alike for energy and utilities organizations to transform themselves to ensure environmental responsibility, economic competitiveness and national security. LOCAL AND GLOBAL ECONOMIES ENERGY AND UTILITIES ENVIRONMENT AND SOCIETY By leading innovation throughout the industry, their positive impact will be felt far beyond.

  7. How should we act? Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED Virtually all things, processes and ways of working are becoming INTELLIGENT 7

  8. + + = An opportunity tothink and act in new ways— economically, socially and technically. 8

  9. What does it mean to become Smarter? Measuring, Monitoring, Modeling and Managing • Data collection Sensing Metering Real Time Data Integration • Data Integration Feedback to user and data source; Incentives and actions to change behavior Real Time + Historical Data • Comparison of historical data, with newly collected data Feedback to user and data source; Incentives and actions to change behavior • Data modeling and analytics to create insights from data to feed decision support and actions Data Modeling + Analytics Visualization + Decisions Source: IBM Corporate Strategy

  10. Proof-point - Beacon Institute

  11. What is the Intelligent Utility Network Solution ? The Intelligent Utility Network solution is a suite of offerings to help utility companies develop a smarter grid supporting Transformation Management, Information Technology and Individual Domains & Projects

  12. Energy and Utilities market forces are creating the need for an evolution in the energy value chain. DYNAMIC INFRASTRUCTURE SMART GRID Solar Energy Storage UTILITY Wind Coal/Gas Energy Storage Hydroelectric Nuclear Solar Wind Solar Energy Storage Plug-in Vehicle Wind A transformed grid that empowers consumers and provides the energy for a sustainable future. Traditional Grid Coal/Gas UTILITY Hydroelectric Nuclear Consumer Power Flow Periodic Information Flow Continuous Information Flow

  13. Integration of the physical and digital instrumentation points and across disparate systems Central Generation 1 Renewable Generation Advanced Meter Infrastructure • Meter • Head-End Device • Meter Data Management System (MDMS) • Communications Layer • Home Area Network Transmission & Distribution Network • Communications Layer • Data Historians • SCADA RTU • Substation Assets (not managed by SCADA) • Electrical Grid Field Assets (downstream of substation) Power Generation • Fossil / Nuclear plant devices monitoring (Non-Operational) • Distributed Generation Communications Layer • Distributed Generation Assets (Wind, Solar, Hyrdo, Diesel) 1 3 2 2 Transmission Network 3 Utility Operation Center 4 1 5 Substation 4 1 Mobile Workforce 2 2 3 2 Distributed Generation 5 1 2 3 4 2 Distribution Network 3 4 Commercial Customer 5 5 5 1 4 4 3 1 1 4 Residential Customer 1 5 2 5 Data Communication Network 3

  14. Smart Grid building blocks are composed of many individual technologies from both Operations & Information Technology Fields ….We are seeing the Convergence of IT and OT

  15. Smart Grid Implementation Progression Summary Orchestrate Participatory the network and its Converse Optimize Network participants to continuously and share network assure an optimized, secure, information, functions balanced and reliable analyzing and based on network acting upon it rules & to balance constraints supply with Orchestrate demand given real - Integrate consumers time Measure and providers with the Optimize conditions & Control network & enable Gain participation & Analyze & Act observability conversation over the network and Connect Participants automate control functions Monitor & Automate (Network) One - way Flow Maturity over time Basic Functionality Advanced Functionality 15 August 10 2010

  16. Smart energy and utilities:Transforming the grid. SMART IS Knowing exactly where a power outage occurs and instantly dispatching a crew to fix the problem. SMART IS Preventing outages before they occur by sensing potential equipment failures. SMART IS Extending asset life by sensing andmanaging the stress placed on agingequipment. SMART IS Reducing peak load by communicatingwith energy consumers and having themturn off non-essential machinery orappliances.

  17. Smart energy and utilities: Transforming the grid. DONG Energy: Installed remote monitoring and control devices to gain an unprecedented level of information about the current state of the grid, lessening outage times by a potential 25-50%. US electric and gas company: Plans to leverage a mix of leading-edge communication technologies, smart meters and first-of-a-kind process innovations to create an intelligent utility network. Energie Baden-Württemberg: Offers residential customers smart appliances and meters that enable them to adjust electricity consumption based on price—reducing waste and easing peak loads. Pacific Northwest National Laboratory: Used intelligent measurement devices, smart appliances and a virtual marketplace to help manage stress in the electric grid, achieving a 50% reduction in short-term peak electricity distribution loads and a 15% reduction in overall peak loads.

  18. Smart energy and utilities:Empowering the consumer. SMART IS Analyzing customer energy usage and providing customized energy products and services to meet their needs. SMART IS Helping customers conserve energyby providing them with tools to proactively manage their energy usage. SMART IS Helping customers establish a “smart home” that turns appliances on and off to reduce energy costs. SMART IS Ensuring that customers are billed accurately and on time.

  19. Smart energy and utilities:Empowering the consumer. A Canadian regulator: Launched a pilot time-of-use program that rewards consumers for using less power during times of shortage or peak demand, leading participants to shift 25% of their usage away from peak hours. enemalta: A major electric and water utilities provider in the country of Malta selects IBM for a 70 million euro, five-year agreement to design and deliver a nationwide Smart Grid implementation. Ecotricity: Re-engineered its business processes and systems to enhance the speed and accuracy of billing while working toward the ultimate goal of a fully interactive, automated, multi-channel customer experience. Pacific Northwest National Laboratory: Provided customers with smart appliances such as water heaters that can sense impending grid failures and automatically respond by cutting back on power consumption.

  20. Smart energy and utilities:Ensuring cleaner energy supply.. SMART IS Smoothing power demand in order to take advantage of off-peak supply such as wind. SMART IS Maintaining a sufficient, cost-effective power supply while managing stringent greenhouse gas emissions targets.

  21. Smart energy and utilities: Reducing greenhouse gas emissions. A German Power Company: Deployed a proof-of-concept Wind Generation Monitoring Solution that will connect numerous power plants to a central monitoring application, enabling better collection and use of raw data. A European Generation Company: Built a tool for optimizing unit commitment, the process of finding and dispatching power sources at the lowest possible cost. It allows planners to easily compare power generation scenarios, programs and production costs and then select the optimal demand coverage at any given time

  22. Which comes first: the smart grid or the electric car? To provide all this electricity for all these e-vehicles, power grids must become smart grids—capable of sending and receiving data along with energy. Utility companies, are planning: - peak demand reduction, - carbon management • cost reasons And completing plans and participating in standards bodies to prepare for the: - energy increase, - peak variability and - storage mobility

  23. Energy Storage Electricity can’t be commercially stored - Energy can: Thermal Storage Pumped Energy Storage Others: Mechanical Biological, Chemical, … Electric Vehicle: May practically become the first ever commercially mean to store electricity

  24. What is Watson?

  25. We’ve only just begun to uncover what is possible on a smarter planet. For more information: Shlomo Shamy shamy@il.ibm.com IBM Israel 94 Em Hamoshavot st. Petha Yikva. Let’s work together to drive real progress in your business or organization and the world. Thank you for your time

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