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UNIÓN FENOSA IT STRATEGY

ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT

Mr. David Andrés HurtadoMining EngineerSoluziona Spain

San Francisco, CAApril 2004

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AGENDA

I. Company Profile and New Business

Environment

II. IT Strategy

III. PI Implementation

IV. Benefits of PI Implementation in Union

Fenosa

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I. Company Profile and New Business Environment

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UNION FENOSA Group: Strategic configuration

Bu

sin

ess

div

isio

ns

Are

as

International investments

Co

reb

usi

nes

s

Energy Services Technology

▪ Group revenue surpassing six billion US dollars▪ 25,000 employees in close to 30 countries▪ More than eight million electricity and gas customers throughout the world

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT- Company profile and new business Environment

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Traditional utility

Efficient traditional

utility

Global utility

Multiutility

Energy & diversification

The new business orientation ...

• Deregulated market - More efficiency• Installed power increment• Investments outside Spain• Multi-utility: Energy & Gas

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT- Company profile and new business Environment

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Generation Business Evolution

4000

5000

6000

7000

8000

9000

10000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Nairobi South

HermosilloPalamaraLa Vega

Inernational Investments

NacoTuxpanLa JoyaEPSA

Spanish new CC PP

Gas Business

Investment Projects

De-regulated market

Installed Power (MW)

LNG PlantsDamiettaSaguntoFerrol

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT- Company profile and new business Environment

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International Presence

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT- Company profile and new business Environment

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II. – IT Strategy

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▪ Plants with different technologies and ages

▪ New personnel and high changing personnel rate

▪ Therefore there is a need for a common language and standardization

▪ Investments in new Power Plants

▪ Some plants are changing their technology

▪ Existence of new Management Applications that require plant information to operate in the new competitive market

Initial Situation and Improvement Opportunities

STANDARIZATION

INTEGRATION

SCALABILITY

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT– IT Strategy

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Gestión de laOperación

PRODUCTION Management

(O&M + Results)

Gestión del

(*)

Adquisición ySuministro deCombustibles

FUELS supply

and delivery

MANAGEMENT

Headquarters Main Business Processes

For the plants outside of Spain, Energy, Fuels and Environmental Management are decentralized, because of differences in local business environments:

Energy Management -> Normally subject to a PPA (Power Project Agreement)

Fuels Management -> Normally a single fuel type contracted with a single supplier

Environment Management -> Normally less restrictive than in Spain

ENVIRONMENTManagement

ENERGY Management

Decentralized Main Business ProcessesThermal Production -> Plant Management

Hydro Production -> Control Center Management

Gestión de laOperación

LocalPRODUCTION Management

(O&M + Results)

Gestión del

(*)

Adquisición ySuministro deCombustibles

Fuels Operation&

Hydro Margins Management

ENVIRONMENTControl

MechanismsLocal

Operation

MANAGEMENT CONTROL AND SUPPORT

Initial Situation and Improvement Opportunities

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT– IT Strategy

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▪ Easy and reliable way to collect and monitor plant information from a diversity of sources

▪ A variety of users can access timely plant data

▪ Standardized method of collecting and sending information to other critical applications (Maintenance, Generation Management, etc.)

▪ Efficient storage of Time-series data and historical Plant Information

▪ OSIsoft is the market leader in providing real time plant monitoring technology to the energy industry

Why OSIsoft PI?

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT– IT Strategy

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III. – PI Implementation

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▪ PHASE I:• Detailed analysis of the existing plant systems.• User requirements study• Detailed architecture definition for PI installation based on the present

systems and users requirements: HW & SW definition (Servers, connection cards, communication drivers, etc).

▪ PHASE II:• Detailed design and prototype of the end-user graphic displays• Definition of the Database structure• Definition of the attributes of all data needed and available to be

acquired, stored, calculated, and to be provided to corporate systems

▪ PHASE III:• HW & SW acquisition, installation, configuration, testing and production

preparation

▪ PHASE IV:• Development of system maintenance and protection processes• Training: System Administrator, End-User and Maintenance Courses

Implementation Phases

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT– PI Implementation

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PLANT MANAGEMENT

SYSTEMS

ERPs

RESOURCE MANAGEMENT

SYSTEMS

Higher level integration

Integration of plant

managementinformation

Concentrator ofmanagement information

Basic level integration

Integration of process

information

Concentrator ofplant information

Level 1Process control

Level 2Operation monitoring

Plant controlequipment:

DCSs, PLCs, etc.

Plant control andmonitoring

systems

SCADAS

Operation support systems

EXPERT SYSTEMS

Real-Time Data Server

CENMANAGEMENT

CONTROL

Corporate integration

Integration of management control

information

Concentrator ofenterprise

information

Level 3Plant management

Level 4Company management

Information Levels

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT– PI Implementation

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Corporate/Business LAN

Others…EnvironmentMaintenanceOperationFuel

Business Systems

FIRE WALLPlant Information

System (PI)

Supervision framework

Management framework

SCADAPlant Operations LAN

Rosemount OPTOMATION ABB Siemens OPM MitsubishiDCS

Technical Architecture

Portfolio Dispatch & Control

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT– PI Implementation

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CONCEPTUAL PLAN FUNCTIONAL SCOPE

Obtains, maintains and updates all information related to the metering management requested by other modules

MDBDB manager

Integrity Control

PI

MDB motor

Interface

Metering - OCEN

MDB

Metering capture and management:

➢ Metering management

➢ Measurement management

➢ Capture point management

Shared Functionality:

➢ Based on allowing other OCEN modules to consult and/or manage metering and measurements.

MDB Manager (Motor):

➢ Capturing information from different sources and sending it to the destination modules.

➢ Validation, generation of calculated measurements.

➢ Metering database purge, etc.

Operation

Fuel

Maintenance

Information requests

Management of metering and capture points

Dam Safety

PI Integration with Management Systems

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT– PI Implementation

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NT SERVER

PI NT SERVERUNIX SERVER

PI - APIC++ functions

Java

NT Environment

UNIX Environment

Interface DB PI - NT

POWER PLANT LAN

Interface NTUNIX

POWER PLANT HEADQUARTERS

Metering

OCEN

MDB

• PI-API functions are used for accessing to PI Database OCEN• PI-API functions and C++ functions, are in the PI NT SERVER. • Using the API, PI data are extracted• Relevant PI data and information is sent to OCEN via OpenLink middleware.

PI Integration with Management Systems - Technical Solution

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESSENVIRONMENT: PI Implementation

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Production log book. Automatic recording events from PI

RELEVANT PARAMETERS

- Power

- Energy

- Environmental parameters

- Performance

- Losses, etc.

Configuration of the relevant parameters for each plant

RELEVANT PARAMETER

- Power

- Energy

-Enviromental Parametres

- Performance

- Loses, ….

Real time: different frequency access to PI

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On-line data interface

OCEN – PI Daily Load Curve

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IV. – Benefits of PI Implementation in Union Fenosa

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▪ Using PI, Union Fenosa can eventually integrate and centralize plant information at the Headquarters level. This permits new possibilities of optimization for a Centralized Control Office

▪ Continuous improvement: facilitated by historical and real-time monitoring and diagnosis (decisions based on costs, production conditions, ...)

▪ Centralized Incidents Analysis: Support to Power Plants for decision making

▪ Data sharing between different areas: maintenance, production, fuels

▪ Support for specialized information systems

▪ Standardized information for analysis and detailed studies (Time savings)

▪ System acceptance by end users has been high

Present Situation

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT

– Benefits of PI Implementation in Union Fenosa

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▪ Central PI Server in UF Headquarters with relevant data of all power plants (including our investments outside Spain)

▪ Web access to PI

▪ PI implementation in LNG Plants

▪ PI for Transmission

Next Steps

UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT

– Benefits of PI Implementation in Union Fenosa

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Thank you for your attention