Smart Grid Infrastructure and NetworksThe Green Grid/Clean Grid/Renewable Energy

Smart Grid: The Green Grid/Clean Grid/Renewable Energy

Mozhi HabibiStrategy ManagerIBM Energy & Utilities

Increasing desire by consumers for a role in energy management and conservation

Growth in renewable generation and distributed resources

New entrants and disruptive technologies

Increased pressure on operational efficiency and workforce productivity

Aging asset performance with increased expectations on reliability

Climate change and environmental concerns

Global market forces are dictating a new approach for the energy and utilities industry

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Evolution of the energy value chain

Solar

Wind

Solar

Wind

HydroelectricSolar

NuclearWind

Energy Storage

Energy Storage

Energy Storage

UTILITY

Plug-in Vehicle

ConsumerPower FlowPeriodic Information FlowContinuous Information Flow

Coal/Natural Gas

NuclearHydroelectric

UTILITY

TRADITIONAL ENERGY VALUE CHAIN

TRANSFORMED ENERGY VALUE CHAIN

Coal/Natural Gas

The need & The opportunity36.8% -- Projected growth in worldwide energy demand by 2030.

170 Billion KWh-- Wasted each year by consumers due to insufficient power usage information.

25% -- Worldwide CO2 emissions created by power generation, the largest man-made source.

Source: IBM, “Plugging In the Consumer”Source: IBM, “Plugging In the Consumer”

15% Reduction in peak loads – Various projects have shown that consumers peak load on the grid can be reduced by 15%, saving of 10% in electricity bills.

$70 Billion -- The U.S. could save in infrastructure spending over the next 20 years through better management of existing assets.

14% Lower emissions -- Smart grid technology as the potential to reduce the power sector’s CO2 emissions 14% by 2020.

Transform the utility network:Transform electric grid, gas, and water infrastructures from a rigid, one-way system to a dynamic, automated and reliable information network

Empower consumers:Empower consumers and improve customer satisfaction by providing them with near real-time, detailed information about their energy usage

Ensure cleaner energy supply: Incorporating renewable energy and electric vehicles into the power grid and meeting greenhouse gas emissions targets while maintaining reliable, cost-effective power supply

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3 Key imperatives for Energy & Utility companies

Transforming the utility networkSMART is: • Knowing exactly where a power outage occurs and instantly dispatching a crew to fix the problem.• Preventing outages before they occur by sensing potential equipment failures.• Extending asset life by sensing and managing the stress placed on aging equipment.• Reducing peak load by communicating with energy consumers and having them turn off non-essential

machinery or appliances.

Empower consumersSMART is:• Analyzing customer energy usage and providing customized energy products & services to meet their

needs.• Ensuring that customers are billed accurately and on time. • Helping customers conserve energy by providing them with tools to proactively manage their energy

usage. • Helping customers establish a “smart home” that turns appliances on and off to reduce energy costs.

Ensure cleaner energy supplySMART is: • Smoothing power demand in order to take advantage of off-peak supply such as wind. • Maintaining a sufficient, cost-effective power supply while managing stringent greenhouse gas emissions

targets.

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The Green Grid/Clean Grid/Renewable Energy

Clean Grid / Green Grid = CO2 Reduction

• CO2 Reduction can be accomplished as a result of several key factors: – Development & Integration of Renewable Energy including Solar, Wind, Geothermal

• Integration of renewable energy into the grid • Reduction of reserved generating capacity

– Transmission & Distribution system diagnostics• Reliability of the grid • Reduction of losses & lowering excess voltage

– Energy Conservation • Demand Response programs • Energy Management systems

– Consumer energy mgmt / reduction in peak demand– Smarter buildings

– Distributed Energy Resources • Plug-in hybrid electric vehicles • Storage & distributed generation

The Green Grid Challenges • Location

– Renewable resources are distributed widely across the US, but they have to be pre-wired to transmission lines. Building new transmission lines (cost, regulatory issues, construction) will take a long time.

– Wind faces a bigger hurdle than solar.

• Intermittency– Integrating intermittent or variable resources such as wind and solar can be difficult for utilities. They

have traditionally dealt with predictable & reliable generation resources. – Solar generation is in sync with peak demand, but large portion of wind capacity is during off-peak hours. – Storage capacity, hydro & pump storage, CAES (compressed air energy storage), batteries can help with

intermittency

• Price point– Renewable energy resources are more expensive than available fossil fuel resources on a dollar-per-

kilowatt-hour basis (this should change over time) – Example: Natural Gas Plant can produce electricity at a cost of 3.5 cents/kwh, where solar or wind (with

government subsidies) current production is around 10 cents/kwh.

• The Green Movement– NIMBY attitude, even while placing high importance on creation of renewable energy. is "running into

itself.– Regulations, standards, weak investment

Why must we take action now?

VOLATILE DEMAND AND INCREASING COSTChanging business operations will create mismatches of power and high prices due to their continuing pressure on our inadequate infrastructure.

ENVIRONMENTAL CONCERNSConsumers are increasingly concerned about the environmental impact of the products they buy, including energy. As a result, they are demanding that utilities provide them with new sources of energy and more information that will enable them to make smarter decisions.

CONSUMERS DEMAND A DIFFERENT MODELConsumers desire more information and reliability when it comes to their energy use and the system as a whole. Building a smarter infrastructure is a singular way to meet these demands while stimulating growth in the greater economy.

Examples of IBM Clean Grid/ Green Grid / Renewable Generation projects

EDISON Project: (A research consortium including IBM, DONG Energy, Danish regional energy company of Oestkraft, Technical University of Denmark, Siemens, Eurisco and the Danish Energy Association )

Built an intelligent infrastructure that will make possible the large scale adoption of electric vehicles to be powered by renewable energy. In order to minimize CO2 emissions tools were developed to synchronize the charging of the electric vehicles with the availability of wind in the grid.

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.

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.

Olympic Tower 2016 - Rio Solar City Tower Design (Proposed concept)

Thank you

Mozhi Habibimhabibi@us.ibm.comwww.ibm.com/energy