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
installations
increased from 5.4M in
2010 to 17.5M in 2012

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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

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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, Structured, values from free (data
data inconsistency generally open to
exabytes of milliseconds to unstructured, text,
& incompleteness, anyone. Which raises philanthropy to high
existing data to seconds to multimedia value monetization)
ambiguities, latency, issues of privacy.
process respond
deception, model Security and
approximations provenance

Big data is defined by IBM as any data that

cannot be captured, managed and/or processed
using traditional data management
components and techniques
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 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, a collaborative research study by the IBM Institute for Business Value and the Sad Business
5 School at the University of Oxford. IBM 2012 2014 IBM Corporation
 Using data, 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
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Source: Leading through connections, Insights from the 2012 Global Chief Executive Officer study, IBM Institute for Business Value IBM 2012
Big Data & Analytics capabilities help utilities leverage data to meet the
challenges of a connected world
Data is emerging as
the worlds newest
resource for
competitive
advantage
Data explosion
In the utilities industry, the
number of connected devices
participants in the Internet of
things is growing
exponentially:
45%
Compound annual growth
rate, 2010-2015
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Decision-making is
moving from the elite
few to the
empowered many
Cost and pricing pressures
By 2050, the Electric Power
Research Institute estimates
that the average electric bill
will probably go up by about
50 percent if the smart grid is
deployed.
ca. 400%
is the expected increase in the
average electric bill if the smart
grid is not deployed
As the value of data
continues to grow
current systems
wont keep pace
Increasing consumer
expectations and concerns
>50% of surveyed consumers
with an opinion expect smart
grid technologies will lower total
household costs for energy use.
But . . .
49%
of consumers were concerned
that erroneous smart meter
readings would result in
overcharges
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, improve service levels and availability, and detect and
prevent energy theft.

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 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, take? I learn, happen?
Telematics
data zone Exploration whats 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, Cloud, As a service Management
Grid

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Key usage patterns for big data & analytics have emerged

Asset &
Grid Smart Workforce
Operations Metering Management

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 Grid
Operations

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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
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 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. Import and New/Enhanced
enterprise
execute predictive models. Applications

Monitor the performance and

SCADA
status of the grid via reports
Increase generation capacity in and dashboards.
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, take? I learn, happen?
Location data zone Exploration whats 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, Cloud, As a service

Master relationships and Strong real-time, streaming
build / maintain a single data performance across
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view of the grid
Big data & analytics capabilities are transforming Grid
Operations
How can I uncover
anomalies in cell relay
signals to predict and
prevent power outages?
Anticipate outages
Energy utility
company in the
United States
Synthesized and analyzed Implemented a rules
a large stream of data from
5,500 cell relays and 2.3
million smart meters
Predict and prevent
operational issues
Respond to outages more
efficiently by dispatching
crews to the right place at
the right time
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How can I manage the
load capacity of the
grid without relying on
manual calculations ?
Manage the flow of
power through the
grid automatically
Australian Power
Company
Forecasts national
engine and advanced
analytics to continually
calculate the theoretical
load limits of assets within
the grid network
Extended asset life and
subsequent deferred
unnecessary capital
investment via better asset
load ratings.
How do I integrate
renewable energies on
the grid and forecast
energy consumption ?
Simulate energy
demand
Utility company
in France
demand every 30 minutes
for a full year in advance,
versus daily in the past
35 million load curves
analyzed and modeled in
near-real time
2014 IBM Corporation
 Smart
Metering

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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
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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, grid data representing infrastructure that provides
where customers can diverse terrain, weather & real-time, 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 1,000
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 1.3 TB 10% reduction in electricity
bills 365,000 metric tons per year
to 350 GB
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 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, store and analyze Complex query processing of Analyze customer

up to 50,000 data points/ Customer self-
historical meter usage data. energy usage, 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, take? I learn, happen?
Location
data zone Exploration whats 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, Cloud, As a service
multiple customer, billing or outage High availability of data and
management systems prior to analytics processing of
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loading in the warehouse customer preferences
 Asset &
Workforce
Management

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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
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 Enhance Asset & Workforce Management with big data & analytics
Protocol
conversion, 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, take? I learn, happen?
data zone Exploration whats 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, Cloud, As a service avoid an outage
or generation plant
Define and manage the product Strong real-time, streaming data performance
PMQ
Capabilities master data across distributed asset info
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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
unstructured sources
Achieved 90% failure
prediction accuracy for gas
turbine compressor
subsystem
Identified 11 month early
warning of production and
supplier issues
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identify potential problems from trucks / mining
based on location, time, equipment, weather,
weather and maintenance operational performance and
history ore price to assess asset
health
25%+ increased crew
utilization; 10-15% fuel Estimated $3B increased
savings profit on $30B operation
30-50% savings on Reduced 10-day failure
selected inspection and probability to less than 1%
preventive maintenance
2014 IBM Corporation
How to move strategically to transform your business
Build a culture that
infuses analytics
everywhere
Find the most compelling use-
cases and the business sponsor
Enable and motivate your people
Infuse analytics into key business
processes
Deploy the full range
of analytics
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Be proactive about Invest in a big data
privacy, security & analytics platform
and governance
To trust the insights you have Build towards a platform for
to trust the facts. Big Data all data and analytics
also requires data
governance
Analyze data in motion
Privacy and security to
Cultivate new partnerships
protect the data
and roles
Enable risk-aware decisions
2014 IBM Corporation
ibmbigdatahub.com/industry/energy-utilities