1. Don Mak IBM Energy & Utilities Industry July 14, 2009
Case Studies in Demand Response and Smart Grids National Town Meeting on Demand Response and Smart Grids
Don Mak
IBM Energy & Utilities Industry July 14, 2009
IBM Confidential

2. Leading Examples
Pacific Northwest National Laboratory changes the business model for energy delivery
What’s smart?
Smart appliances, meters, and sensors adjust consumption dynamically based on real-time pricing for residential consumers
Smarter Outcomes
10% lower electricity bills
50% reduction short-term peak loads
$70B projected savings though better use of existing infrastructure
IBM Contact; Ron Ambrosio
Published on 17-Sep-2008
"We’re finding that people are actually curtailing their use and saving energy simply because they have greater control.”" - Don Hammerstrom, project manager, Pacific Northwest GridWise Demonstration Project
Customer: Pacific Northwest National Laboratory (PNNL)
Industry: Energy & Utilities
Deployment country: United States
Solution: Business-to-Business, Business-to-Consumer, Business Performance Transformation, Enabling Business Flexibility, Energy Efficiency, Grid Computing, Innovation that matters, Optimizing IT, Transforming Business, Virtualization
Overview
The Pacific Northwest National Laboratory is demonstrating a new, multi-layered way of keeping the power grid healthy by managing electrical demand in times of stress, using a combination of intelligent technology and market forces.
Business need: As part of the U.S. Department of Energy’s GridWise® Program, the Pacific Northwest National Laboratory (PNNL) wanted an innovative way to keep the electrical grid healthy in times of stress by managing electrical demand through a combination of intelligent technology and financial incentives.
Solution: PNNL set up two parallel studies to test its ideas. In one, the lab teamed with IBM to create a virtual marketplace that allowed consumers to trade flexibility in usage for lower costs. The second study tested “smart” appliances that could sense and respond to stress on the grid by temporarily curtailing electricity use.
Benefits: • 50 percent reduction in short-term peak electricity distribution loads, helping to avoid power restrictions and cascading blackouts • 15 percent decrease in overall peak loads in the course of one year • Consumers saved an average of 10 percent on their electricity bills • US$70 billion projected reduction in infrastructure spending over 20 years through better management of existing resources
Case Study
“ We’re finding that people are actually curtailing their use and saving energy simply because they have greater control.” – Don Hammerstrom, project manager, Pacific Northwest GridWise Demonstration Project
Business Challenge As part of the U.S. Department of Energy’s GridWise® Program, the Pacific Northwest National Laboratory (PNNL) wanted an innovative way to keep the electrical grid healthy in times of stress by managing electrical demand through a combination of intelligent technology and financial incentives. Solution PNNL set up two parallel studies to test its ideas. In one, the lab teamed with IBM to create a virtual marketplace that allowed consumers to trade flexibility in usage for lower costs. Intelligent devices (such as thermostats) in consumers’ homes were tied to the PNNL system, which automatically controlled power consumption based on pricing signals and customer preference. The second study tested “smart” appliances that could sense and respond to stress on the grid by temporarily curtailing electricity use. Business Benefits • Reduced short-term peak distribution loads by 50 percent, and overall peak loads by 15 percent • Decreased consumers’ electricity bills an average of 10 percent • Projected reduction of US$70 billion in infrastructure spending over 20 years through better management of existing resources • Reduced impact of power shortages and helped avoid black-outs by enabling better control of the electrical infrastructure • Provided financial incentives to consumers to help ease utility grid loads while increasing freedom of choice • Permitted accurate determination of the true cost of electricity, demonstrating the feasibility of market-based pricing for electricity Why it matters As part of a U.S. Department of Energy demonstration program, the Pacific Northwest National Laboratory is demonstrating a new, multi-layered way of keeping the power grid healthy by managing electrical demand in times of stress, using a combination of intelligent technology and market forces. Creating a virtual marketplace, connected to consumers’ homes as well as to providers of surge electrical capacity, lets consumers trade flexibility in usage for lower costs when there is a shortage–and gives providers the demand information they need to accurately set the actual cost of generation in near-real time. Key Components Software • IBM WebSphere Application Server • Prototype Internet-scale control software from IBM’s Watson Research Labs Creating an intelligent electrical grid The nation’s electrical grid is under unrelenting stress, and recent years have borne witness to increasing problems. Power shortages resulting in rolling blackouts have become a fact of life on the West Coast, and in 2003 a massive blackout struck eight states in the Northeast and Midwest, as well as parts of Canada. The U.S. Department of Energy’s Office of Electricity Delivery and Energy Reliability has partnered with research institutions and private industry in a nationwide initiative called GridWise to show how information technology can create a better, more robust electrical grid. Many demonstration projects are underway that embody the shared vision that IT has the potential to impact the nation’s electrical infrastructure profoundly in the future. The Pacific Northwest GridWise Demonstration Project From March 2006 to March 2007, the Pacific Northwest National Laboratory conducted a pair of demonstration studies that showed how intelligent management, enabled by technology and customer involvement, can help ease stress on the electrical grid. The two studies had complementary goals. The Grid Friendly™ Appliance Project demonstrated how “smart” consumer appliances such as water heaters can sense impending grid failures and autonomously respond by temporarily cutting back on power consumption. The second and larger study, the Olympic Peninsula Project, showed how an automated, market-driven system can ease critical loading of the electrical grid by managing demand: The project made utility customers part of the process and gave them a financial incentive to trade reduced usage for lower costs when there is a shortage of power. Both studies were highly successful. The Grid-Friendly Appliance Project conclusively demonstrated the technical ability of smart appliances to help avoid power outages without inconveniencing consumers–most participants did not even notice the automatic, momentary reduction in energy use. The Olympic Peninsula Project showed another way to ease stress on the infrastructure while saving money—it not only reduced the peak load on the grid significantly (15 percent over the course of the year-long study), it also rewarded customers for doing so by saving them 10 percent on their utility bills. The Olympic Peninsula Project: Using the free market to manage demand The key to the Olympic Peninsula project was the direct involvement of consumers. They were given access to a system that allowed them to trade consumption flexibility for lower costs—those willing to accept a slight cut-back in power use (for example, by having their thermostats turned down a few degrees) when peak rates hit a certain point would reap savings and, at the same time, ease stress on the grid. Consumers also had the flexibility to override their settings at any time. Ground-breaking custom software from the IBM Watson Research Lab, running on IBM WebSphere® Application Server, is what made the Olympic Peninsula project possible. This sophisticated event-driven software enabled PNNL to have direct control over customers’ energy use on an individual basis by setting their thermostats and water heaters remotely in response to current market rates and customer preference. “The basic idea was to manage demand by creating an open market for power,” says Don Hammerstrom, project manager for the Pacific Northwest GridWise Demonstration Project. “Using software from IBM and intelligent devices installed in customers’ homes and at certain power suppliers, we created a virtual marketplace. On one side, consumers bid for power—how much they were willing to pay to keep everything running without cutting back—and on the other, suppliers entered bids for how much it would cost them to start up and run for the next five minutes. The point where all those bids meet is the price.” There’s a base wholesale price for power that consumers pay when supplies are plentiful. But if there’s a shortage, excess power needs to be generated or demand needs to be reduced (or both), and that constrained electricity supply costs more. Bids are being made on this supply. A market mechanism like this helps keep the grid running smoothly because it can dynamically and intelligently respond to stress. It only kicks in when there’s a shortage, and curtails only those loads that consumers are willing to shed. Without intelligent control, all loads would be served regardless and a shortage could easily escalate into a crisis. Naturally it’s not feasible for consumers to take part in this process directly—nobody is going to sit at their computer and actively bid for electricity. This is where the sophisticated IBM software came into play. Customers programmed their thermostats and water heaters via the Web, setting temperatures and schedules just as they would if they were manually programming the devices. The twist is that the customer also provided some preference information: how willing they would be to have the temperature altered in the event of a power shortage. The software took that input, combined it with real-time grid sensor data, generation capacity and market-trend information and automatically adjusted each individual device as necessary. Benefiting both consumers and the grid–painlessly “An important part of this project was coming up with ways to make the technology transparent,” says Rob Pratt, PNNL GridWise program manager. “We were looking to control appliances that are cycling all the time as a normal part of their operation—things like water heaters, refrigerators and heating/cooling systems. This technology can ease the load without the homeowner ever being aware of it.” The consumer response has been surprising. “In the past,” Hammerstrom says, “consumers never had any feedback about how they were using power other than their monthly bill. What we’re giving them is information and the ability to control their own usage much more effectively. And we’ve found they really like it. Our goal was to help avoid problems with the grid, but we’re finding that people are actually curtailing their use and saving energy simply because they have greater control.” A new way of looking at utilities Should this technology be adopted, it has the potential to save a great deal of money. PNNL concluded that if all customers were engaged in reducing peak loads using this technology, peak electricity prices could be substantially reduced and construction of approximately US$70 billion in new generation, transmission and distribution systems could be avoided over the next 20 years. The technology also has the potential to drive change in the way power is generated. “Imagine an infrastructure where everything is intelligent and connected,” Pratt says. “We can apply this approach right down to the local substation level. If it gets in trouble, only those few affected by it would have the technology kick in. We could also leverage a lot of untapped resources—for example, the diesel generators attached to commercial buildings. Right now they’re reactive; if the power goes down they run the building. But what if we could control them, and make them part of the grid? The potential is enormous,” Pratt says. For more information Contact your IBM sales representative or IBM Business Partner. Visit us at: ibm.com/innovation
Products and services used
IBM products and services that were used in this case study.
Software: WebSphere Application Server
Smarter Grids for a Smarter Planet | July 14, 2009
IBM Confidential

3. EDISON will develop an intelligent infrastructure that will enable large scale adoption of electric vehicles powered by sustainable energy
What’s smart?
EDISON* research consortium, a Denmark-based collaborative aimed at developing an intelligent infrastructure that will make possible the large scale adoption of electric vehicles powered by sustainable energy
Smarter Outcomes
Upward of 10% of the country's vehicles to be all electric or hybrid electric during the coming years
Minimize CO2-emissions linked to electrified transport
Maximize the use of renewable energy
Enable smart technologies to control electric vehicle charging and billing and to ensure the stability of the overall energy system
*EDISON = Electric Vehicles in a Distributed and Integrated Market using Sustainable Energy and Open Networks
Smarter Grids for a Smarter Planet | July 14, 2009
IBM Confidential

4. Southern California Edison Data Center “proof point” and Security and Interoperability foundation
What’s Smart?
Data Center Energy Efficiency
Applied monitoring technology in commercial data center in Southern California
Secure Energy Internet
Security and interoperability are key concerns to DR and SG implementations
Smarter Outcomes
10% data center energy savings
Annualized savings exceed 300kWh
Greater savings available with technology refresh
Wide-scale demonstration
Intra- and inter-utility scope
Partner ecosystem “solution”
SCE data:
Energy Savings seen during monitoring (2 weeks): 13,432 kWh
Demand Savings seen during monitoring: 38.8 kW
Energy savings scaled to whole year: 339, kWh/yr
Typical Data Center Demand Metric of 40 Watts per square foot
Mean Data Center Size = 20,000 square feet
Average DC Definition
Size
20k ft2
Power density
40 W/ft2
Power
1.4 MW
Smarter Grids for a Smarter Planet | July 14, 2009
IBM Confidential

5. Ontario Energy Board demonstrates the value of time-sensitive rates
What’s smart?
Innovative trial of time-of-use and critical peak electricity tariffs enabled by smart meters
Smarter Outcomes
Up to a 25% shifting away from summertime critical peak times
6% lower energy consumption overall
75% of participants saved money
83% of participants wanted to stay on the program
IBM Contacts: James Strapp
Full report available on
Ontario Smart Price Pilot
The Ontario Energy Board (the "Board"), with the support of Hydro Ottawa, implemented the Ontario Smart Price Pilot project in early August The pilot was designed to help the Board better understand the degree to which Ontario consumers change their electricity consumption behaviour with smart meters and "time-of-use" (TOU) prices in advance of the province's plan to provide smart meters to all homes and small businesses by 2010.
The project helped provide participating consumers with more information on how they better manage electricity consumption by shifting usage to off-peak periods.
The Board formed three separate groups of Hydro Ottawa consumer volunteers with smart meters, looking for potential consumption differences between those charged according to:
standard Regulated Price Plan TOU pricing;
RPP TOU pricing + critical peak pricing (CPP), and;
RPP TOU pricing + critical peak rebates (CPR).
A Final Report with the results was presented on July 26, 2007.
This web page will also be updated to include references to other TOU pricing pilots of other Ontario electricity distributors that the Board has approved to proceed throughout 2007.  The Final Reports of four other TOU pricing pilots have been submitted to the Board - Newmarket Hydro, Oakville Hydro, Veridian Connections and Hydro One Networks.
Smarter Grids for a Smarter Planet | July 14, 2009
IBM Confidential

6. Oncor’s Smart Texas Advanced Metering System is Live
What’s Smart?
Replacing old meters and systems with advanced metering systems and enabling in-home demand response
For the cost savings by using a CFL bulb compared to a 100-watt bulb…
Smarter Outcomes
June 30, 2009: 211,000+ meters providing 15-minute interval data to the market
Deployment of remaining 3.2 million meters continuing to 2012
5-10% consumption and customer cost savings
Better customer information about energy usage
Utility - improved reliability, stability, security
IBM and Oncor Team on Large Scale Advanced Metering Deployment
Oncor reaches milestone in IT integration
ARMONK, NY - 15 July 2009: IBM today announced that it is the lead systems integrator for Oncor‘s advanced metering systems deployment. The company contributed to Oncor’s significant milestone this month—the reporting of 15-minute interval, billable quality data to the Texas market. Oncor, the largest regulated transmission and distribution system in Texas, is leading one of the most comprehensive and largest deployments of smart grid technologies in the nation and is scheduled to replace 3.4 million standard meters with advanced meter systems by 2012.
IBM is assisting Oncor by providing expertise in smart metering and systems integration along with its understanding of large meter data management, business analytics, and security solutions.
"As smart grid rapidly gains momentum around the world, we are pleased to be selected as the systems integrator for another full scale deployment with regulatory approval," said Guido Bartels, General Manager of IBM’s Global Energy & Utilities industry. “IBM is working with clients like Oncor to deliver on the promise of a smarter grid by transforming a network into something more robust, secure and intelligent—enabling customers to manage electricity usage in a more informed manner.”
IBM's Solution Architecture for Energy and Utilities (SAFE) is a software framework and products such as Data Power, Maximo, Tivoli Identity Manager, Tivoli Compliance Manager, etc. will enhance the security and reliability of the information technology solution and complement other elements of Oncor’s smart grid initiative, such as the Landis+Gyr Gridstream™ advanced meter communications system and the Ecologic Meter Data Management System.
“Oncor’s Smart TexasSM initiative is one of the most advanced smart grid efforts underway today. IBM is responsible for integrating the complex systems supporting Oncor’s advanced meter system deployment,” Mark Carpenter, vice president and chief information officer, said. “Achieving the important step of reporting 15-minute interval, billable-quality data to the Texas market wouldn’t have been possible without IBM’s participation.”
About Oncor
Oncor Electric Delivery Company LLC “Oncor” is a regulated electric transmission and distribution business that uses superior asset management skills to provide reliable electricity delivery to consumers. Oncor operates the largest distribution and transmission system in Texas, delivering power to approximately 3 million homes and businesses and operating approximately 117,000 miles of transmission and distribution lines in Texas. While Oncor is owned by a limited number of investors (including majority owner, Energy Future Holdings Corp.), Oncor is managed by its Board of Directors, which is comprised of a majority of independent directors.
Oncor Reaches Another Milestone in Smart Texas Advanced Meter Deployment
DALLAS (July 15, 2009)—Oncor announced today that the Smart Texas initiative has completed a major step in its advanced metering system deployment with the first 15-minute interval, billing-quality electricity consumption data reporting to the Texas market.
The data, which makes it possible to support innovative new programs and pricing options, represented a successful information technology integration involving over 200,000 advanced meters. Oncor anticipates the service will expand to close to 700,000 meters by year-end and to 3.4 million advanced meters, every meter in Oncor’s system, by 2012.
“Oncor’s Smart Texas initiative is one of the most comprehensive smart grid build-outs in the United States, “ Mark Carpenter, Vice President and Chief Information Officer, said. “The ability to provide data to the Texas market that can be settled every 15 minutes is a huge accomplishment for Oncor and its team of manufacturers and vendors.”
The system integration project, which began in July 2008, merges the functions of multiple technologies and information technology systems supporting Oncor’s advanced metering system deployment plan. To meet market desires and provide quick customer benefits, several vendors worked on an accelerated schedule to achieve the goal of reporting Validated, Edited and Estimated electricity consumption data to the Texas market by July 1, 2009.
The team was responsible for integrating AMS software, records, meter data management, work management and customer information and billing systems. Vendors supporting Oncor on the project were system integrator IBM, meter manufacturer and communications system provider Landis + Gyr, meter data management systems provider Ecologic Analytics, architecture designer Perficient and information technology company Capgemini Energy.
In addition to providing data capable of being settled by the Electric Reliability Council of Texas every 15 minutes, the integrated system will now support communication with an in-home monitor (ZigBee Smart Energy Profile 1.0). In early 2010, the system will be expanded to connect to a common Web portal and data repository that will allow consumers to monitor consumption data and allow retail electric providers to interact through the system with consumers and consumers’ equipment. This ability will make new features such as real-time pricing signals, direct load control and enhanced prepay services possible.
Source: Oncor
Smarter Grids for a Smarter Planet | July 14, 2009
IBM Confidential

7. Malta will become the first country to implement an end-to-end electricity and water smart utility system
What’s smart?
Smart electricity and water meters, advanced IT applications enabling remote monitoring, management, meter readings and meter suspensions, customer energy management portal
Smarter Outcomes
Customers will pay only for the energy they actually use
Customers will be able to switch to a pre-pay service, similar to mobile phone pre-payment
Commercial losses will be reduced through monitoring of electricity and water grids
Remote management of electricity supply
Sophisticated analysis of consumption patterns, enabling a real-time view of energy use to identify opportunities for reduction
Customers will have an Internet portal to track energy consumption
Smarter Grids for a Smarter Planet | July 14, 2009
IBM Confidential

8. DONG Energy Optimizes Operations to Respond to Outages Faster
What’s Smart?
Retrofit remote monitoring and control devices
Quickly locates and isolates faults
Smarter Outcomes
Potential to reduce outage minutes by 25-50%
Fault search time reduced by one-third
Potential capital savings up to 90 %
IBM Contacts: Jeremy Willsmore
Business Challenge Increasing marketplace and regulatory demands along with a need for future infrastructure reinvestment drove Danish utility company DONG Energy to look for a way to better manage and utilize its electrical distribution network in order to respond to outages faster and more efficiently. Solution DONG Energy teamed with IBM to implement an Intelligent Utility Network, installing remote monitoring and control devices that give the company an unprecedented amount of information about the current state of the grid. The new solution also involves extensive analysis of the data provided by the remote devices, as well as reengineering of DONG Energy’s business processes. Business Benefits • Potential to reduce outage minutes by percent • Fault search time reduced by one-third • Estimated capital savings of up to 90 percent, when fully implemented • Provides competitive advantage by improving the quality of electrical service through faster, more efficient response to outages • Allows DONG Energy to more fully utilize existing assets to respond to surges in demand, helping the company avoid capital expenditures for additional capacity • Enables more effective long-term capital investment planning based on live data, helping DONG Energy to invest in new infrastructure more wisely Why it matters By leveraging the information provided by devices that monitor and help manage the electrical grid, DONG Energy is able to not only respond to outages faster, but also make more efficient use of existing electrical infrastructure assets and plan more intelligently for future improvements. This leading solution, one of the first implemented in Europe, helps DONG Energy maintain a high quality of service for its customers, reduce capital expenses and more effectively plan for the future. Key Components Software WebSphere® Application Server WebSphere MQ WebSphere MQ Explorer WebSphere Message Broker WebSphere Message Broker Toolkit WebSphere Eclipse Platform Rational® Software Architect JRules software Services IBM Global Business Services IBM Business Partner PowerSense DONG Energy: moving towards the future DONG Energy is Denmark’s largest energy company, formed in March 2006 by the merger of six diverse companies in the fields of electrical and gas distribution and sales, power generation, and oil and gas exploration; it is an energy company in the truest sense of the word. The electrical distribution arm of DONG Energy faces a number of challenges going forward: • Regulations require DONG Energy to meet benchmarks for capital and operating expenditures. • New regulations for quality of service (outage frequency and duration) will become effective in • DONG Energy will soon become a publicly traded company, which means it will have to meet not only regulatory standards, but shareholder expectations as well. These existing and impending factors drove DONG Energy to look for ways to optimize its operations, specifically with regard to quality of service. The company’s ability to find problems in the grid and repair them quickly had to be improved. Enter the Intelligent Utility Network Electrical distribution companies around the world are facing challenges similar to those confronting DONG Energy. The demand for energy is increasing, and electrical grids are being severely stressed. The path forward is the Intelligent Utility Network (IUN), which uses information technology to improve the management—and therefore the performance—of electrical grids. While companies all over the world are investigating IUN initiatives, DONG Energy has taken a leadership role and is one of the first in Europe to actually implement an IUN solution in a distribution network. A key limitation of existing grids is a lack of information about what’s going on in the field. While major assets such as generation plants and transmission lines are monitored, electrical companies today have little or no visibility into the current state of the entire distribution grid—in many cases they do not know a failure has occurred until customers start calling and complaining that their power is off, and finding the fault literally means sending a truck out to isolate the problem by a process of elimination. In this respect, the way electrical grids operate has not changed for many years. One form of the IUN solution—the one that DONG Energy is implementing—eliminates this limitation by deploying inexpensive remote monitoring devices from IBM Business Partner PowerSense out in the grid. The devices employ unique optical current sensors and tell the company instantly not only that a fault has occurred, but where it is. Devices like this can also, in some cases, control other equipment such as substation switches, raising the possibility of remotely isolating the fault, rerouting power and getting much of the grid back up and running in a matter of minutes. Building a business case with unexpected benefits The ability to quickly locate and isolate faults was the capability that drew DONG Energy to the idea of an IUN, says Peter Vinter, power grid specialist at DONG Energy. “For a couple of years, we’d been working on ways to introduce measurements on equipment that was previously inaccessible,” he says. “But we needed to know if it would be a cost-effective way to meet our quality of service goals. Would it be better to monitor old equipment or invest in new, more reliable equipment that would go unmonitored? We had to develop a business case that would let us make that decision appropriately.” DONG Energy engaged IBM Global Business Services to help build a business case that would assist DONG Energy in making the decision. IBM was chosen because it has taken a leadership role in developing IUN solutions, and also has deep industry-specific expertise in the energy sector. Working with DONG Energy, IBM was able to uncover significant additional benefits beyond improvements in operational efficiency, showing how the company could not only improve its asset utilization, but also make far more informed and intelligent decisions about future capital expenditures. The business case confirmed that DONG Energy’s pursuit of an IUN solution was a good move, according to Vinter. “Our quality of supply will improve considerably. We can reduce minutes of power lost by 25 to 50 percent and reduce our fault search time by one third.” But the IBM Global Business Services consultants helped DONG Energy see that an IUN solution could do far more. “It turns out that the real key isn’t the fact that we’ve got visibility into the grid, though that was our initial goal,” Vinter says. “It’s that we now have information available on grid performance that we didn’t have before. We can do a lot with that information.” One of the additional benefits is being able to drive equipment closer to its true limits. All such equipment has a rated capacity, which is set conservatively to ensure reliable, continuous service. It is possible to overload the equipment for a certain time without it failing—but to do so safely, one must know its current status. With remote monitoring technology, DONG Energy now has that information in real time and is able to intentionally drive its equipment safely up to—or even beyond—100 percent of rated capacity when needed to respond to temporary peaks in demand. In this way, the company can defer investing in new capacity and make better use of its current funds. A second, and far more significant, benefit of the information provided by the IUN is its applicability to long-term planning. An electrical distribution infrastructure has to be designed to handle peak loads. Historically, utility companies have had to estimate these loads based on usage patterns and anticipated growth, and build in enough capacity to handle any eventuality. This means that most electrical grids are overbuilt. “With the information provided by the new solution, we have real peak load data for individual grid components to work with, so we can optimize our capital expenditures,” Vinter says. “It can make those investments far more cost-effective—we estimate we can save as much as 80 to 90 percent on reinforcement of the existing grid by making use of the hidden grid capacity. It’s an entirely new dimension that’s been added to our planning process, and it’s transforming the way we do business.” Reinventing the business An important consideration in the implementation of an IUN is how to handle the flood of new information that the technology generates. To achieve the long-term planning benefits uncovered by the IBM team, a great deal of analysis must be performed using new analytic tools, and the information needs to be integrated with the company’s existing IT systems and applications. The IBM Global Business Services consultants worked closely with DONG Energy to model the company’s existing business processes, determining what changes would need to be made based on input from DONG Energy. The IBM team then took the new processes and designed service-oriented architecture (SOA) IT infrastructure to accommodate them, integrating it with DONG Energy’s existing systems. SOA makes IT processes far more flexible and scalable, improving DONG Energy’s responsiveness. Vinter notes that by going beyond DONG Energy’s original goals, the solution has the potential to radically change the business. The company is looking into merging new data with its business processes, to improve outage management, network operation and planning. “The transformational part of this is really the information. The real question is, what can we do with all this information now that we’ve got it? With this solution, we’re able to take that raw data and turn it into actionable business knowledge. That’s what’s going to allow us to succeed in the future, helping us make the best possible use of our existing assets and enabling us to identify where we need to make investments later on.” For more information To learn more about how IBM can help transform your business and help you innovate, please contact your IBM representative or IBM Business Partner.
Smarter Grids for a Smarter Planet | July 14, 2009
IBM Confidential

9. So, What is the Point?
There are many successful pilots and implementations of Demand Response and Smart Grid activities
The time to act is now – for customers and the planet
Smarter Grids for a Smarter Planet | July 14, 2009
IBM Confidential

10. Relevant Capabilities and Experience
IBM Research is using its considerable capabilities to tackle some of the greatest smart grid challenges
High-Impedance Fault Detection and Characterization
Develop a real time analytics engine for electric power grid diagnostics and optimization based on event data flows to and from sensor, actuator and control systems in the power grid
Outage Root Cause Analysis
Enable electric utilities to more quickly repair outages by rapidly identifying and repairing damaged network components using general outage root cause analysis regardless of the type of fault
Integrated Distribution Outage Planning
An innovative software offering to help utilities create an optimized outage plan using analytics and optimization engines to plan the time frame and load transfer paths for outages.
Continuous Regulatory Assurance
Develop a continuous assurance approach to regulatory compliance through the application of provenance and end-to-end traceability technology
Carbon Management for Electricity
Estimate and monitor carbon footprint consumption of electricity and carbon emissions and provide a framework for optimal abatement strategies and model optimal abatement options for carbon reduction
IBM Contact: Ron Ambrosio
Smarter Grids for a Smarter Planet | July 14, 2009
IBM Confidential