Smart Grid Maturity Model Assessment (SGMM) SAIEE Smart Grids Conference 2016 Mr. Teslim Yusuf February 2016 SANEDI Smart Grids Programme

Smart Grid Maturity Model Assessment & Baseline Assessment SGMM was developed by the Global Intelligent Utility Network Coalition (GIUNC) and APQC, the Software Engineering Institute (SEI) are the steward of the model The Baseline Assessment is a locally developed tool developed by SANEDI Smart Grids Team and Dr. Willem de Beer for local municipalities with a much smaller customer base Leverages on the principles of the SGMM Considers the IDP (5 years plan), SDBIP (12 months Budget Implementation Plan) Adopts standard value chain principle for consistency of evaluation

Determine your driver for change Low carbon Transition Renewable Resources Demand Response Environment Reliability Operational Excellence Ageing Infrastructure Capacity Energy Resources Workforce Operational Efficiency Customer Satisfaction

The Smart Grid Maturity Model is A management tool that provides a common language and framework for defining key elements of smart grid transformation and helping utilities develop a programmatic approach and track their progress

Not just all talk The Smart Grid Maturity Model Assessment (SGMM) has been carried out in 9 Municipalities within South Africa. Municipality Type of SGMM Version City Power Johannesburg Standard Assessment Ethekwini Mogale City Msunduzi Nelson Mandela Bay Thabazimbi Locally Developed Govan Mbeki Nala Naledi

SGMM timeline 2007 2008 2009 2010 2011 2012 Global Intelligent Utility Network Coalition (GIUNC) develops SGMM Utilities use SGMM v1.0 v1.1 v1.2 Software Engineering Institute serves as model steward GIUNC: CenterPoint Energy Progress Energy DONG Energy North Delhi Power Ltd Country Energy Sempra Energy Pepco Holdings IBM APQC SEI releases SGMM v1.1 product suite Licensing & certification program for SGMM Navigation begins Genesis - the model was developed by utilities for utilities – the genesis. Then show the steady state of SEI stewardship. Good that it was started by utilities, the SEI has added value as stewards. The next phase is put the model in the hands of expert Navigators. Sep 2007: Idea conceived by Centerpoint Energy . APQC engaged to assist. Seven utilities from four continents provide SMEs over six months to develop, debate, pilot and validate the SGMM content Sep 2007 – Jun 2008: GIUNC developed SGMM Jun 2008: Opened to broad industry use Mar 2009 – Mar 2010: SEI gathers input to update and improve SGMM October 2010: SEI releases SGMM V1.1 - product suite released * APQC is a nonprofit member-based research organization with over 30 years of quality and process improvement research SEI releases SGMM v1.2 product suite Developed by utilities for utilities

SGMM at a glance 5 4 3 2 1 SMR Strategy, Management, & Regulatory 6 Maturity Levels: Defined sets of characteristics and outcomes 5 4 3 175 Characteristics: Features you would expect to see at each stage of the smart grid journey 2 1 SMR Strategy, Management, & Regulatory OS Organization & Structure GO Grid Operations WAM Work & Asset Management TECH Technology CUST Customer VCI Value Chain Integration SE Societal & Environmental 8 Domains: Logical groupings of smart grid related characteristics

Smart Grid Maturity Model – levels PIONEERING OPTIMIZING INTEGRATING ENABLING INITIATING DEFAULT Breaking new ground; industry-leading innovation Optimizing smart grid to benefit entire organization; may reach beyond organization; increased automation Investing based on clear strategy, implementing first projects to enable smart grid (may be compartmentalized) Taking the first steps, exploring options, conducting experiments, developing smart grid vision Default level (status quo) Integrating smart grid deployments across the organization, realizing measurably improved performance

Smart Grid Maturity Model – domains Strategy, Mgmt & Regulatory SMR Vision, planning, governance, stakeholder collaboration Technology TECH IT architecture, standards, infrastructure, integration, tools Organization and Structure OS Culture, structure, training, communications, knowledge mgmt Customer CUST Pricing, customer participation & experience, advanced services Grid Operations GO Reliability, efficiency, security, safety, observability, control Value Chain Integration VCI Demand & supply management, leveraging market opportunities Work & Asset Management WAM Asset monitoring, tracking & maintenance, mobile workforce Societal & Environmental SE Responsibility, sustainability, critical infrastructure, efficiency

SGMM Navigation: five-phase, expert-led process Stakeholders complete SGMM Compass survey Discussion and consensus answers lead to internal alignment on current state Stakeholders review survey findings & set aspirational profile Consensus on aspirational state and identification of motivations, actions, and obstacles to achieve it

Compass results: maturity profile example results 3 3 2 2 2 2 1 SGMM maturity profile includes a maturity score for each domain

Strategy, Mgmt, & Regulatory Example results Fictitious organization Aspiration Setting Tool Strategy, Mgmt, & Regulatory 5 4 3 2 1 What motivates this aspiration? What actions must happen to achieve this aspiration? What obstacles must be overcome to achieve this aspiration? Aspiration Current

Navigation results: consensus aspirations example results This is where we aspire to be in X years 4 4 4 3 3 3 3 3 2 2 2 2 2 2 This is where we are today 1 NOTE: There is no “correct” target profile implied in the model; the optimal profile will vary by utility.

Key findings Internal Management and structure Revenue Management Integrated value chain approach lacking Revenue Management Tariff redesign, cost reflective tariffs, customer segmentation Asset Management practice Maintenance and refurbishment, Life Cycle Asset management practice, workforce management High non-technical losses Electromechanical meters, calibration on CT’s, billing accuracy, customer information, fault detection, Grid visibility and control Advanced Metering Infrastructure, Control Centre/Back-office, Load limiting, DR Project Management Units

Comprehensive Framework to guide the Smart Grid implementation in South Africa

Recommendations Business Sustainability: Business units must be ring-fenced and detailed income and expenditure records must be kept. Municipalities must conduct network/grid studies perform cost of supply studies and thereafter align their tariff structures accordingly, through the approval mechanism Customer: Participation and effective communication in general must be addressed and that technology deployment be leveraged to improve customer participation and the customer experience in interfacing with the utility Methodology: Standardize the SGMM as an industry tool to benchmark and to drive investments. Use the SGMM as a motivation to initiate smart grid projects Compliance and enforcement: NERSA, NT, DoE, CoGTA, must enforce compliance to established initiatives and regulation Policy and Regulation: Policy and Regulation to drive change, efficiency use of energy, embedded generation, adopt the SGMM as a standard for motivating for investment and project initiation

Continued…. Technical: Integrated demand response, load management and energy profile solutions must be investigated and implemented. Maintenance performance must be evaluated, measured and tracked to address root causes, hedge against plant failure, and improve electricity reliability, availability, and supply. Technology: Municipalities must enable technology deployment by setting a smart grid vision and strategy prior to embarking on a smart grid journey. Technology should incorporate interoperability, upgradability, security, safety, cost and performance must form part of the evaluation and award criteria.

Nicholas Charles Trublet To select well among old things, is almost equal to inventing new ones. Nicholas Charles Trublet