Anders Quitzau, Innovation Executive, IBM

28. maj 2014

Transforming Energy and Utilities
through Big Data & Analytics

© 2014 IBM Corporation

What is changing in the Energy and Utilities industry?

The grid gets older Alternative energy enters the mix

60% of electric grid
assets will need Global installed wind
replacement in this power capacity
decade increased by 12.4
percent to more than
318 gigawatts in 2013

Smart meters become mainstream Consumers want more control &
insight into energy consumption
In 2020, all Danish
electric utilities will The number of U.S.
customers capable of
have smart metering
accessing information on
infrastructure (AMI)
their energy use online
increased from 5.4M in
2010 to 17.5M in 2012

2 © 2014 IBM Corporation

To sustain growth. leaders across energy & utilities are prioritizing four imperatives… Transform the Improve generation utility network performance Continually improve operational excellence Transform customer operations 3 © 2014 IBM Corporation .

model Security and approximations provenance ‘Big data’ is defined by IBM as any data that cannot be captured.Big Data is not ’just’ data. there are a few new considerations Big  Data   Open  Data   Volume Velocity Variety Veracity Visibility Value Data at Data in Data in Data in Data in Data of Rest Motion Many Forms Doubt the Open Many Values Uncertainty due to Open data is Large range of data Terabytes to Streaming data. & incompleteness. process respond deception. issues of privacy. Structured. Which raises philanthropy to high existing data to seconds to multimedia value monetization) ambiguities. anyone. values from free (data data inconsistency generally open to exabytes of milliseconds to unstructured. latency. text. managed and/or processed using traditional data management components and techniques 4 © 2014 IBM Corporation .

a collaborative research study by the IBM Institute for Business Value and the Saïd Business 5 School at the University of Oxford. Big data makes a big difference Organizations using big data and analytics are up to 23x more likely to report they are substantially outperforming their competitors than those who do not use big data and analytics Source: Analytics: The real-world use of big data. © IBM 2012 © 2014 IBM Corporation .

Using data. IBM Institute for Business Value © IBM 2012 . outperformers excel in three key areas 108 % 108 % 84 % more likely more likely more likely 57% 54% 54% 31% 26% 26% Make data Draw insights Translate accessible from data insight into Underperformers Outperformers action 6 © 2014 IBM Corporation Source: Leading through connections. Insights from the 2012 Global Chief Executive Officer study.

exponentially: 50 percent if the smart grid is But .Big Data & Analytics capabilities help utilities leverage data to meet the challenges of a connected world Data is emerging as Decision-making is As the value of data the world’s newest moving from the elite continues to grow – resource for few to the current systems competitive empowered many won’t keep pace advantage Increasing consumer Data explosion Cost and pricing pressures expectations and concerns In the utilities industry. . . deployed. 45% ca. 2010-2015 is the expected increase in the that erroneous smart meter average electric bill if the smart readings would result in grid is not deployed overcharges 7 © 2014 IBM Corporation . the Electric Power >50% of surveyed consumers number of connected devices – Research Institute estimates with an opinion expect smart participants in the “Internet of that the average electric bill grid technologies will lower total things” – is growing will probably go up by about household costs for energy use. the By 2050. 400% 49% Compound annual growth of consumers were concerned rate.

Big data & analytics are transforming energy and utilities Energy and Utilities are turning knowledge into power by using big data & analytics to better understand and shape customer usage. and detect and prevent energy theft. 8 © 2014 IBM Corporation . improve service levels and availability.

take? I learn. happen? Telematics data zone Exploration what’s best? Reporting and EDW and Decision analysis Warranty / and Archive management Cognitive Quality data zone data mart Customers zone What could happen? Outage Management Predictive Social Media analytics and modeling Regulatory Information Integration & Governance Location Systems Security Storage Asset On premise. As a service Management Grid 9 © 2014 IBM Corporation . Big data & analytics capabilities are required to address these challenges and opportunities New/Enhanced All Data Applications SCADA Real-time Data Processing & Analytics What is Call happening? Centers Discovery and exploration ERP/ MRP Deep Fraud Analytics What action Mgmt data zone should I What did Why did it Operational Landing. Cloud.

Key usage patterns for big data & analytics have emerged Asset & Grid Smart Workforce Operations Metering Management 10 © 2014 IBM Corporation .

Grid Operations 11 © 2014 IBM Corporation .

Big data & analytics capabilities can drive real business value from Grid Operations • Detailed Load & voltage data MV & LV Grid • Embedded generation impacts • Load & Phase Balance Planning • Topology & switching history • Events & alarms System Control • Fault location • Grid conditions • Load History Asset Management • Temperature & Condition • Ratings & Impedance Grid • Voltage & PF profiles Voltage Regulation & Operations Protection • Batteries & secondary equip • Exceptions & Excursions • Improved power quality Customer Operations • Fewer outages & events • Avoid manual collection Field Services • Load & voltage surveys • PQ & outage investigations • SAIDI/SAIFI • Improved risk assessment response Regulatory Reporting • Lower technical and non-technical 12 losses © 2014 IBM Corporation .

Cloud. Applications Monitor the performance and SCADA status of the grid via reports Increase generation capacity in and dashboards. happen? Location data zone Exploration what’s best? Reporting and EDW and Decision analysis Distribution and Archive management Cognitive Mgmt Cleanse and validate data data zone data mart from multiple customer or zone outage management systems What could EAM happen? Outage prior to loading in the Deep analysis of energy Mgmt warehouse Predictive demand and loads and the analytics and Social impact of distributed generation modeling Information Integration & Governance resources Energy Trading Predict excessive loads on the ERP/ MRP Systems Security Storage grid before they occur On premise. As a service Master relationships and Strong real-time. streaming build / maintain a single data performance across 13 distributed grid data © 2014 IBM Corporation view of the grid . Import and New/Enhanced enterprise execute predictive models. Real-time Data Processing & Analyticsresponse to demand What is Demand happening? Forecasting AMI Discovery and High bandwidth time series data exploration ingestion and recall Deep Load PMU Analytics What action Forecasting data zone should I What did Why did it Operational Landing. Enhance Grid Operations Discover and navigate through structured and unstructured Analyze data from continuous IBM Watson Foundations data across the entire All Data sources in real time. take? I learn.

500 cell relays and 2.Big data & analytics capabilities are transforming Grid Operations How can I uncover How can I manage the How do I integrate anomalies in cell relay load capacity of the renewable energies on signals to predict and grid without relying on the grid and forecast prevent power outages? manual calculations ? energy consumption ? Anticipate outages Manage the flow of Simulate energy power through the demand grid automatically Energy utility company in the Australian Power Utility company United States Company in France • Synthesized and analyzed • Implemented a rules • Forecasts national a large stream of data from engine and advanced demand every 30 minutes 5. million smart meters calculate the theoretical versus daily in the past load limits of assets within • Predict and prevent the grid network operational issues • Extended asset life and • 35 million load curves • Respond to outages more subsequent deferred analyzed and modeled in efficiently by dispatching unnecessary capital near-real time crews to the right place at investment via better asset the right time load ratings. 14 © 2014 IBM Corporation .3 analytics to continually for a full year in advance.

Smart Metering 15 © 2014 IBM Corporation .

Big data and analytics capabilities drive real business value from Smart Meter data Reduce Outages & Downtime Grid Operations Detect Energy Loss. Theft & Fraud Optimize maintenance Field Service & repair Improve load Resource Planning forecasting & demand accuracy Smart Metering Improve acceptance Customer Service / rates for targeted Customer Operations offerings Regulatory Efficient Regulatory Compliance Compliance 16 © 2014 IBM Corporation .

integrated view of access their personalized demographics the grid information and learn how much electricity • Will reduce demand on the • 50% drop in short-term peak grid by about 1. weather & real-time.000 • Reduced load times by loads megawatts more than 95 percent • 15% drop in overall peak • Decreased query times • Will reduce greenhouse gas more than 97 percent loads emissions by at least • Reduced TCO from 1. grid data representing infrastructure that provides where customers can diverse terrain.000 metric tons per year to 350 GB 17 © 2014 IBM Corporation .Big data & analytics turns Smart Meter data into actionable insight How can I give How can I manage the How can I use smart customers more control load capacity of the meter data to reduce grid without relying on over their energy use ? energy consumption? manual calculations ? Help customers Manage the flow of End-to-end reduce energy power through the management of the consumption grid automatically grid US distributor & Large California transmitter of electricity Utility • Used smart meter data for • Gathered & analyzed smart • Implemented a smart meter a customer web portal.3 TB • 10% reduction in electricity bills 365.

Gain insight from Smart Meter big data Discover and navigate IBM Watson through structured and Foundations All Data unstructured data across the New/Enhanced entire enterprise Applications Collect. energy usage. Cloud. happen? Location data zone Exploration what’s best? Reporting and Call Centers EDW and Decision analysis and Archive management Cognitive data zone data mart Customers zone What could Outage Master relationships and happen? Mgmt build / maintain a single Offer TOU pricing or Predictive Grid view of the grid demand / response analytics and offerings modeling Billing Information Integration & Governance Predict which customers systems are candidates for TOU pricing or demand / Systems Security Storage response offerings Cleanse and validate data from On premise. store and analyze Complex query processing of Analyze customer up to 50. As a service multiple customer. billing or outage High availability of data and management systems prior to analytics processing of 18 © 2014 IBM Corporation loading in the warehouse customer preferences . detect Meters secReal-time Data Processing & Analytics What is energy theft or meter serve portals happening? tampering Discovery and exploration Fraud / theft ERP Deep protection Analytics What action data zone should I What did Why did it Operational Landing.000 data points/ Customer self- historical meter usage data. take? I learn.

Asset & Workforce Management 19 © 2014 IBM Corporation .

Asset & Workforce Management drives real business value for utilities Easy access to all documents needed to operate the assets Maintain accurate “As-Built” Operate the Assets documentation Enforce business rules for asset operations Populate work packages with complete and accurate Asset & information Capture changes so “As-Built” Workforce Maintain the Assets configuration is accurate Management Use analytics to perform Predictive Maintenance & Condition Based Maintenance Schedule maintenance based on equipment conditions. not Schedule Use of fixed schedules the Assets Minimize planned and unplanned maintenance activity 20 © 2014 IBM Corporation .

happen? data zone Exploration what’s best? Reporting and EDW and Decision analysis Asset Mgmt and Archive management Cognitive Grid data zone data mart zone What could happen? Outage EAM Pre-built data schema Mgmt for quality. machine and Recommend preventative Predictive maintenance analytics and production data modeling Social Media Information Integration & Governance Warranty / Quality Systems Security Storage Predict an equipment failure and Consolidate grid data for a ERP/ MRP 360 degree view of the grid On premise. take? I learn. Cloud. streaming data performance PMQ Capabilities master data across distributed asset info 21 © 2014 IBM Corporation . message mediation & transformation of grid or power All Datageneration data IBM Watson Foundations New/Enhanced Applications Real-time analysis of grid / generation asset Monitor the performance of data equipment and assets during SCADA Real-time Data Processing & Analytics What is operation Load happening? Forecasting Discovery and Internet scale messaging Telematics exploration Landing zone for data Deep Mobile collected from grid assets Analytics What action workforce DCS for off-line analytics data zone should I What did Why did it Operational Landing. Enhance Asset & Workforce Management with big data & analytics Protocol conversion. As a service avoid an outage or generation plant Define and manage the product Strong real-time.

weather and maintenance operational performance and history ore price to assess asset health • Achieved 90% failure prediction accuracy for gas • 25%+ increased crew turbine compressor utilization. 10-15% fuel Estimated $3B increased subsystem savings profit on $30B operation • Identified 11 month early warning of production and •  30-50% savings on • Reduced 10-day failure supplier issues selected inspection and probability to less than 1% preventive maintenance 22 © 2014 IBM Corporation . weather. time. equipment.Big data & analytics is transforming Asset & Workforce Management How do I reduce How do I measure the How can I minimize down unscheduled risk of failure and time related to asset maintenance costs? optimize repair / maintenance? replacement work? Early failure Asset & Workforce Analytics Driven detection Management Mining Asset Optimization Management Gas Turbine Water Utility Large Mining Manufacturer Company Company • Used text mining methods • Used advanced analytics to Performed analytics on data for extracting insights from identify potential problems from trucks / mining unstructured sources based on location.

security & analytics platform everywhere and governance •  Find the most compelling use. Big Data all data and analytics also requires data •  Enable and motivate your people governance •  Analyze data in motion •  Infuse analytics into key business •  Privacy and security to •  Cultivate new partnerships processes protect the data and roles •  Deploy the full range •  Enable risk-aware decisions of analytics 23 © 2014 IBM Corporation .How to move strategically to transform your business Build a culture that Be proactive about Invest in a big data infuses analytics privacy. •  To trust the insights you have •  Build towards a platform for cases and the business sponsor to trust the facts.

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