Smart Grid Solutions, Services, and

Business Models Focused on Telco

April 23, 2010 Ph.D. Young-Woo Lee (ywlee@kt.com)
I. Introduction
- Background, Definition, Architecture, Business Domain & Opportunities
II. KTs R&D Results for Smart Grid
- Smart Grid BM, Equipments, Solutions, Widgets, and Services
III. Smart Grid Demonstration Project in Korea
- KTs Role of Smart Place
IV. Green IT Survey
Contents
2
IV. Green IT Survey
- Green IT awareness, Green activity at home and Green IT services
V. Smart Grid Management
- Telecomm Management vs. Smart Grid Management
VI. Conclusions
Worldwide
US Energy Information Administration(EIA)
Projects World Engergy Use to Grow 57%
Between 2004 and 2030
OECD countries Grow 24%, non-OECD
countries Grow 95% by 2030
Especially in non-OECD Asia, such as India and
Koreas Energy Consumption
: 233 million TOE per year
Ranked 10th in the World, 2.1% of World Energy
Consumption (BP Statistics, 07)
Energy Consumption Increase according to the
rise of income and industrialization.
Home electronic appliances, bigger and diverse
Korea
The worldwide demand for electric power is swiftly increasing.
Especially, anticipating that the increasing in Korea will be noticeable
according to the advent of the digital era and the rise in national income.
1. Energy Outlook I. Introduction
1. Energy Outlook I. Introduction
3
Especially in non-OECD Asia, such as India and
China where strong projected economic growth drives
the increase in energy use
Annual Growth in Electricity Generation by Region
Home electronic appliances, bigger and diverse
Personal digital devices, the number increased :
* Most of people In 20s holds 5 PD
(Mobile Phone, PC, MP3, Printer, Digital Camera)
Total Energy
Demand
(million TOE)
2006 2010 2015 2020 2025 2030
Energy
Consumption
per man
* PD: Personal Device
Demand Prediction for Energy Consumption(~2030)
* TOE : Ton of Oil Equivalent
Source : EIA, International Energy Outlook 2007 Source : Korea Energy Economics Institute
Background
IT
(Information
Technology)
ET
(Energy
Technology)
+
Energy Internet
Smart Grid
for energy efficiency
The concept of fused Energy Internet appears for protection of the environment
and improvement of energy efficiency. To fulfill it, Smart Grid draws the attention.
2. Background and Definition of Smart Grid I. Introduction
Definition
4
Smart Grid is an next generation intelligent electricity network which optimize the
energy efficiency to graft Information Communication Technology onto the existing
network and exchange real time information between supplier and customer.
Definition
Charge Decision
Real-time Accounting
Real-time Consuming
Customers
Equipment
Analysis for Demand
Automation Control
Automation Transport
Intelligent
Power-grid
Electricity Supplier Electricity Customer
Washing
Category Characteristic/Function As-Is To-Be
Supply &
Transmission
of
Electricity
Estimation & Counter
Measure
for Electricity Network
Error
Mainly focus on preventive measure
for damage by network expansion
Power failure/facility breakdown
Focus on Prevention & Minimization of
Customer Impact
Automatic Sensing for Electric Power Network
Error & Counter Measure
Network Division, Automation Protection &
Restoration
Optimization of
Management for Facilities
Operation data & assets management
Integration Insufficiency
Periodic equipment investment, Repair
Electricity Network Data Assets
Management Linkage
RCM/CBM based Investment System
Equipment life span evaluation &
Smart Grid has the efficient operation by the automated grid management and real time
management of electricity supply and demand to provide diverse services for customers
3. Existing Power-Grid vs. Smart Grid I. Introduction
5
Electricity
Network
Error Cancellation
Efficiency Improvement
for Operation
Automation Grid
Intelligent Operation
DC supply of electric power, DC Building
All Acceptance
of Power Supply & Storage
Equipment
Large power plant
Dispersion energy linkage obstacle
Acceptance of Power Objective
Acceptance in form of PNP, VPP
Service
Electricity Power Quality for
Digital Economics
Power failure
Low interest in Electricity Quality
Providing of Price Choice
Diverse Electricity Service
DC Direct Supply
Customer Participation
No information for customer
Not available for participation
Customer Participation by information supply
Demand Reaction
New Product & Service
Market
Limited wholesale market
Limited choice for customers
Integrated Wholesale Market
PHEV infra, V2G, Smart Home appliance
Energy consulting, Home EMS service, HAN
The value chain of Smart Grid is divided into 6 steps, Generation Transmission Substation
Distribution Home/Building Distributed Generation and Storage, and it has 3-layer
architecture as Power Infrastructure, Information Infrastructure, and Service
4. Layered Architecture of Smart Grid I. Introduction
Application
Layer
6 Source : GTM Research
Data transport
& Control Layer
Physical
Power Layer
For Smart Grid, Telcos business domain where they use their existing ability are
Communication Network, O&M System, and Home/Building
Operations &
Management
System
Info.
Infra
Distributed Control
System
EMS
Substation
Automation
System
Distribution
Automation
System
Transmission
GIS System
Info. System
Market Operation
System
SCADA
Service
DR
National wide
Management Center
Local area
Management Center
Local area
Management Center
2
3
Smart Grid Data Center
Customer Info.
System
Customer Portal
RTP
AMI
Smart Grid
New Services
Electricity
Deal Service
New/Renewable
Energy Sale Service
Management &
Control Service
Value Added
Bundle Service
Inter-Industry
Service
5. Business domain of Telco I. Introduction
7
EMS : Energy Management System DR : Demand Response SCADA : Supervisory Control And Data Acquisition
AMI : Advanced Metering Infrastructure RTP : Real Time Pricing
Communi-
cation
Network
Resource
Control
Sensor
Power
Infra
Generation Transmission Substation Distribution
Home/Building
Generation Sensor Remote Sensor Substation sensor Distribution sensor
Smart Meter Micro Grid
1
Utility Management Domain
focused on Heavy electricity
I
II
Smart Grid Management
System Development
1
Smart Grid Management
System Operation
2
Home/Building Measuring System
Based on Smart Meter
3
Telcos Business Opportunities
For telcos business opportunity, there are three categories as follows.
Especially, KT has interests and opportunities in home/building centered Last 1-mile
service and Micro Grid management domain.
6. Business Opportunities of Telco I. Introduction
2
Transmission Distribution
3
4
Home/Building
Data Collection
System
NMS
(TMS, DMS)
Meter Data
Mgmt System
Back Office
Legacy Apps
1
8
Micro Grid Management Domain
focused on Home/Building
New Business Development
Domain based on Micro Grid
Management Platform
III
Based on Smart Meter
Smart Home Building
and Operation Service
4
Micro Grid Management System
Building and Operation
5
Electricity Retail Sales Business 6
Bundle Product Sales Business 7
SCC(Shared Service Center)
New Service Business
8
Bundle Product Sales Business:
Diverse Bundling Product Sales
Management Business base on
Customer Management
SSC New Service Business:
New Business Development for
home/building in Micro Grid, based on
Micro Grid Platform
7
8
5
6
Smart Meter
HAN
Control
Centre
Micro Grid
Mgmt System
Digital
Measure
Electricity Retail
Sales Business
Remote
Messaging
Micro Grid Management
3
4
KT promoted the Smart Green Business development, which provides diverse services
connecting Smart Grid and an internal device in Home/Building and receiving the
customer's Utility Usage Information by Smart Green Center
Installation of the Smart Box/Tag to monitor and control Home/Building Utility
Providing Utility saving/management services through 4 Screen Widget, collecting and analyzing
Key Equipment/facility power usage including gas, heating, water, hot water and Usage data
The business creating a variety of business partnerships with government, KEPCO and related industries
based on the customers real-time Utility Usage data stored in SGC(Smart Green Center)
KTs Business Model
Composition and Components
1. BM & Components for Smart Green Service II. KTs R&D Results
9
kepco
Collaboration
SGC : Creating and Providing
service information analyzing
and processing the utility
usage data
Smart Tag : Transfer to Smart
Box measuring Usage mounte
d on the Utility
Smart Box : Collecting Utility
Usage data and transmitting to
the SGC
Widget : Monitoring informatio
n and control service to custom
ers through N-Screen Widget
Government
Industry
Alliance
Cooperation
Internet
six months Quick-win Project was conducted last year
for the acquisition and demonstration of key technologies to Smart Green business
and developing the Smart Box / Tag prototype and SGC, Widget services
2. Smart Box/Tag and SGC II. KTs R&D Results
Smart Box
Home Gateway : A function to connect Customer's home
network to broadband provider's network connections
Communication : A function to connect Premise information
devices and Smart Tag(Data collected from the Smart Tag)
Automatic Meter Reading (AMR) : Metering and Remote
Control feature of the Smart Tag
Communication : Individual unit for transmitting information
10
Smart Tag
Communication : Individual unit for transmitting information
and controlling electric device(supports high-speed Ethernet
communication as well as high-Speed PLC Communication)
Metering : Individual devices connected to the Smart Tag
Measuring power consumption
Measuring power consumption of Control : Individual devices
connected to the Smart Tag for Power Supply Control
SGC
(Smart
Green
Center)
Acquisition of real time Utility Usage data through Smart Box
Analyzing and processing the collected data to generate and
offer information for billing /Smart Green services
Calculating the amount of Utility Carbon emissions by unit
Through green service application on N-Screen Widgets implemented in SoIP terminal,
iPhone and PC, monitoring home energy usage and controlling electricity devices are
available.
3. Smart Green Widget Service II. KTs R&D Results
Smart
Green

Widget

Widget
Smart
Green
News
Widget
Weather
Widget
Widgets
Energy usage monitoring/control through video Internet phone
Providing various home energy management service including
real-time electricity usage fee
Providing current/ accumulated electricity usage, carbon
emissions and etc.
SoIP phone structure and Widget operations
SoIP Phone
11
DD(Dynamic Delivery Server) : handling dynamically variable contents
SD(Static Delivery Server) : handling statically variable contents(roles of image server and Widget program repository)
DCD(Dynamic Content Delivery) : processing business logics of the platform
OS : Embedded Linux
Application F/W : Mizi (Windriver) Prizm
Widget Engine
- based on Flash Lite
- Version management, Download management
- Interworking server data
- Providing API and management of Widget MMI
* SoIP(Service over IP) phone : High performance Internet phone developed by KT, providing video communication, Internet access, and etc.
DD
SD
DCD
(B/L)
Contents

BSS,
OSS

CP
Widget Service
Platform
Green
Widget
Widget Engine
App
(Voice)
App
(Media)
Widget Widget
DD
SD
DCD
Contents
Management
BSS,
OSS
I/F
CP
Widget Service
Platform
Green
Widget
Embedded Linux
Prizm(App F/W) drv, m/w
Widget Engine
Widget Widget
KT is planning and developing various types of Smart Green Service BM targeting
home/building customers mainly.
Energy Usage Alarm Service
- providing total and/or individual household electricity usage in real-time
- forecasting monthly/yearly electricity usage and alarming accumulated electricity
usage fee
- providing carbon emissions converted from electricity usage
Standby Power on/off Service
- functions using Smart Box/Tag and IT system
Remote/Automatic Control Service of Home Utility
- functions using mobile terminals including iPhone
4. Smart Green Services II. KTs R&D Results
Home
12
- functions using mobile terminals including iPhone
Energy Saving Helper Service
- providing consulting information for energy saving in home
Telematics Services and Integrated e-Billing Service
Marketing operations Service based on the Information of Smart Green Customer
Green Mileage Service
- giving mileage/points to smart green service subscriber who makes energy saving
Utility Remote Control Service
- Remote monitoring/control about power utilities of building/company, emergency
mobilization and consulting service
Peak Power Alarming and Load Balancing Service
Building
Smart Place III. Smart Grid Demonstration Project
Main Grid
Smart Home (400 Household)
Smart Home (552 household) Total Operating
Center
WCDMA
3G
Smart Meter
Smart Appliance
Smart Meter
Smart Appliance
Smart Box/Tag
N-Screen
Main Grid
Smart Home (400 Household) Smart Home (400 Household)
Smart Home (552 household) Smart Home (552 household) Total Operating
Center
WCDMA
3G 3G
Smart Meter
Smart Appliance
Smart Meter
Smart Appliance
Smart Box/Tag
N-Screen
KT has been joining in Jeju Island to build a Smart Grid infrastructure as a test bed to
demonstrate various concepts and to have a pre-field test since December 2009.
KT has a plan to prove an integrated home/building/Factory energy management
service and to improve energy usage efficiency by utilizing renewable energy and
energy restoration media in Smart Place area and Smart Transportation one.
Jeju Island Smart Grid Project
The first smart grid test bed in the
world
- real site, the biggest collection
of applications of Smart Grid
Large-scale project of 5 areas
13
Smart Town (48 household/6 town)
Public Relations
Office
Customer Care
Center
Technical Support
Center
FTTH
KT Control Center
Smart Building (3 buildings) Smart Factory (2 factories)
3G
IP Premium
WiBro
Smart Meter
FEMS
Smart Control Panel
Smart Meter
BEMS
Smart Control Panel
Recharger
Smart Meter
Smart Box(town)
Renewable Energy
Storage
Electric Car Charger
Smart Appliance
Smart Box/Tag
4-Screen
Renewable Energy
Generation/Storage
Electric Car Charging
FEMS : Factory Energy Management System BEMS : Building Energy Management System
Smart Town (48 household/6 town) Smart Town (48 household/6 town)
Public Relations
Office
Customer Care
Center
Technical Support
Center
FTTH
KT Control Center
Smart Building (3 buildings) Smart Building (3 buildings) Smart Factory (2 factories) Smart Factory (2 factories)
3G 3G
IP Premium IP Premium
WiBro
Smart Meter
FEMS
Smart Control Panel
Smart Meter
BEMS
Smart Control Panel
Recharger
Smart Meter
Smart Box(town)
Renewable Energy
Storage
Electric Car Charger
Smart Appliance
Smart Box/Tag
4-Screen
Renewable Energy
Generation/Storage
Electric Car Charging
FEMS : Factory Energy Management System BEMS : Building Energy Management System
Large-scale project of 5 areas
- Smart {Place, Transportation,
Renewable, Electricity Service,
Power Grid}
- Smart Place : 4 consortiums
joined over 100 companies
Aims
- To validate the Smart Grid
technology and BM
- To provide ways for economical
power usage together
- To ease customers power
usages
- to enhance competitive
advantages of Korean industries
Green IT awareness Customer expectation of green IT
72% of customers know the green IT, and they expect that green IT services like
smart grid service*, video conference can help to reduce energy and money.
Customers expect that green IT services can help to
reduce their energy consumption and money.
Also, customers think the companies have to
introduce the services that can reduce energy
consumption.
Dont know
Know well
(7.8%) [ Willingness to use ]
Green IT awareness About green service
1. Green IT awareness IV. Green IT Survey
Most of customers know the green IT and they realize
the importance of the green IT for green economy.
- 72.2% of customers know or heard green IT,
75.1% of customers answered that green IT is important
to green economy .
14
Dont know
(27.8%)
Heard once or
twice (41.1%)
Know(23.3%)
Not
important
5.8%
Dont
know
19.0%
important
48.3%
Very important
26.8%
70%
Smart grid
service
Integrated online
bill of utility
Green mileage
telemedicine
Virtual PC
Green Office
Video conference
Telecommuting
78.7%
78.7%
74.9%
56.2%
52.9%
87.3%
76.8%
67.6%
[ necessity ]
The importance of the green IT
for green economy
* Smart grid : the service that can monitor the usage of electricity and optimize consumption
Customers prefer green mileage and smart grid services. 26.5% of customers are
willing to pay for green IT services.
[ Green activity at home] [ The reason why customers do
nothing for energy saving at home]
[ Service preference ]
Green activity at home and green IT services
Most of customers cant practice energy saving activities, so they prefer the services that can help them like green
mileage, smart grid.
Customers are willing to pay for green IT services. The more they have high incomes, the more they are willing to
pay.
28.3%
27.3%
Green activity at home
Willingness to pay
for green IT services
2. Green activity at home and Green IT services IV. Green IT Survey
15
Irk, tiresome
(76.3%)
Too busy
(21.1%)
et cetera (2.6%)
Separate the
recyclable
waste
Activity for
energy saving
To buy high
efficiency
appliances
To manage
appliances
life cycle
71.4%
69.2%
38.4%
16%
Expec-
tation
High
low
28.6%
30.8%
61.6%
84%
Do Dont do
nothing for energy saving at home]
[ willingness to pay]
10
15
20
25
30
35
40
~2million ~5million 6million
38.5%
30.2%
21.2%
17.4%
Income
(won)
Green
mileage
Smart
grid
One
online
bill of
utility
Virtual
PC
telemed
icine
28.3%
27.3%
23.2%
15.6%
5.7%
total
26.5%
~3million
Monitoring and
Control of NEs
Necessary
Technologies
Operation &
Management
System
Communi-
cation
Info.
Infra
EMS

SCADA
Service
DR
Smart Grid Data Center

Customer Portal
RTP
AMI
Smart Grid
New Services

/
/

Bundle

Operation &
Management
System
Communi-
cation
Info.
Infra
EMS

SCADA
Service
DR
Smart Grid Data Center

Customer Portal
RTP
AMI
Smart Grid
New Services

/
/

Bundle

Operations & Management System of Smart Grid
Business
Operations of
Integrated Utility
Network
Operations and
Management
If Teclos inherent competence of the experience and the knowhow about developing
management technologies and operating management systems is customized and
adapted in constructing Smart Grid O&M System,TIME and COST will be reduced more
efficiently.
1. Customization and Adaptation V. Smart Grid Management
16
System
Interworking
Platform
Construction and
Operations
Real-time Data
Processing
cation
Network
Resource
Control
Sensor
Power
Infra

sensor sensor sensor Smart Meter Micro Grid
cation
Network
Resource
Control
Sensor
Power
Infra
Resource
Control
Sensor
Power
Infra

sensor sensor sensor Smart Meter Micro Grid sensor sensor sensor Smart Meter Micro Grid
Telecomm O&M System
Management
Communication
Data Gathering,
Local Control
and Automation
Network
Configuration
and Control
Customization and
Adaptation
Smart Greed Needs
Telecommunication Management Layer Smart Grid Management Layer
OSI 7 Layer
Business Business
Application Application
Business Business
Services Services
Management Layer(ITU-T)
Smart Grid
Framework(EPRI)
7. Application 7. Application
Power Services
Distribution
Control
Power Market
Operation
Elements
ICT Services
BMS
Description
Power services to
customers
Local or national wide
management center
Description
The management layer of Smart Grid has a similar architecture with the standard
recommendations of telecommunication management layer, and so there is no problem
to adapt it to Smart Grid cases including customization of Smart Grid needs.
2. Telecomm Management vs. Smart Grid one V. Smart Grid Management
17
EPRI : Electric Power Research Institute , ICIS : Information Customer Integrated System,
Data
Integration
Data
Integration
Communi-
cation Infra
Communi-
cation Infra
Control
Sensor
Control
Sensor
Power Infra Power Infra
Services
Management
Services
Management
Network
Management
Network
Management
Element
Management
Element
Management
Element Element
7. Application
6. Presentation
5. Session
7. Application
6. Presentation
5. Session
4. Transportation
3. Network
4. Transportation
3. Network
2. Data Link 2. Data Link
1. Physical 1. Physical
Operation
SCADA, AMI
Communication
Network
Metering
Transmission/
Substation
Sensor
Generation
Transmission
Substation
Distribution
SMS
NMS
EMS
Network
Elements
Energy/Elements
management systems
Communication
network for O&M
Sensors for gathering
datas
Physical elements
IV. Conclusions
Smart Grid
- Next generation intelligent electricity network : IT + ET
- Business domains of Telco : Communication Network, O&M System, Home/Building(last-1 mile)
KTs Activities for Smart Grid
- Smart Grid solutions : management systems, applications, widgets, Smart Box, Smart Tag
18
- Service/Business Model : focused on last-1 mile for creating new business models
- Smart Grid Demonstration Project in Jeju : Smart Place, Smart Transportation
Smart Grid Management
- not new any more : ICT Management Experience/Knowhow + Smart Grid Needs
Q & A
Thank You.
19