A process approach to Smart Grid deployment Narayanan.R Dr. Krishna V Prasad IIT Bombay 18-Mar-13

Interaction plan … Utility Enterprise Landscape Smart Grid Deployment – Enterprise wide approach Smart Grid Maturity Model - Overview SGMM Domains, Levels & Characteristics Smart Grid Process approach Supporting tools for Smart Grid Deployment Case Studies Summary © Copyright 2013 TCS

High Level IT Landscape Portal Knowledge Mgmt Collaborations Mgmt Information System Enterprise Resource Planning Analytics Billing GIS CIS/CRM Asset Management Operations Technologies © Copyright 2013 TCS

SMART Grid Building Blocks Infrastructure Smart Home Infrastructure (Smart Thermostat, Load Control Devices, Gateways.) AMI Infrastructure (Smart Meter, Data Concentrators, AMI head end) SMART Grid Infrastructure (Sensors, Grid Control Devices, Grid head end) Transformation Services Integration & Data Services Other Services Comms Home Area Network (HAN) Local Area Network (LAN) Wide Area Network (WAN) Customer Service Meter Data Management Demand Response Management Customer Relationship Management Cut-over Management Data Service Application Development & Maintenance Customer Portal Management Credit and Revenue Protection Metering and Billing Service Management Security, Standards & Interoperability Distribution Management SCADA Distribution Management Outage Management Business Change Management Business Intelligence Consulting (Roadmap, Strategy) Operations Network Planning Network Management Asset Management Work Management Power Resource Management Project Management Systems Integration IS Infrastructure Management Trading and Contracts Settlement Risk Management PHEV Distributed Generation Storage devices Training © Copyright 2013 TCS 4

The Technologies IT OT ET ERP Portals / Gateways Asset Management Information Technologies ERP Portals / Gateways Asset Management Business Intelligence (BI) & Data Warehousing / Mining all horizontal information management applications Operation Technologies EMS, SCADA, DMS, DSM GIS Asset Management FACTS WAMS all analysis, automation & process control applications Energy Technologies Distributed generation Demand response Energy storage High temperature superconductivity Renewables: Integrated gasification combined cycle Hydrogen economy Photovoltaic generation Fuel cells Liquefied natural gas Wind generation Renewables also has Biomass, Mini & Micro Hydro © Copyright 2013 TCS

Smart Grid Deployment Phases Planning Analysis Feasibility Assessment Technology Selection System Deployment Strategic Business Planning/Visioning Business Needs Definition Regulatory Compliance Technology Trends/Emerging Technologies Technology Assessment Business Case / Economic Justification Preliminary Cost Scenarios Project Planning Approval Team Formation Functions & Features Matching Performance Assessment Integration Requirements Vendor Selection Cost/Benefit Confirmation Project Approval / Capital Commitment Implementation Planning / Phasing Employee Training System Testing Operating Procedure Updates Value Recognition ROI Measurement © Copyright 2013 TCS 6

Process Improvement through Smart Grid technologies In addition there are other societal benefits of saving in installations and green house gas. © Copyright 2013 TCS

Smart Grid Implementations Developed Geographies Focus is on Customer Enablement, Renewables / PHEV / Storage / Green Incremental efficiency enhancement Developing Geographies Focus is on Metering / Revenue Cycles, IT for Enterprise, Market definition Order of magnitude efficiency improvement © Copyright 2013 TCS

Smart Grid Maturity Model

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 © Copyright 2013 TCS

SGMM timeline Developed by utilities for utilities 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 © Copyright 2013 TCS

Software Engineering Institute SEI is a federally-funded research and development center at Carnegie Mellon University, a global university recognized worldwide for its energy and environmental research initiatives. A trusted, objective source of best practices, methods and tools to organizations worldwide, SEI is a global leader in software and systems engineering, process improvement and security best practices – all critical elements of smart grid success. SEI collaborates in public-private partnership with government and industry on important cyber security, architecture, and interoperability challenges of the smart grid. © Copyright 2013 TCS

SEI’s Role as Steward of the SGMM Provide governance working with multiple stakeholders Enable widespread availability, adoption, and use of the model for the benefit of the community Evolve the model based on stakeholder needs, market developments, user feedback, and interactions with domain experts Develop transition mechanisms— education, training, awareness, research collaboration— to support the model Grow the SGMM community of users worldwide © Copyright 2013 TCS

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 © Copyright 2013 TCS

Smart Grid Maturity Model – levels PIONEERING Breaking new ground; industry-leading innovation OPTIMIZING Optimizing smart grid to benefit entire organization; may reach beyond organization; increased automation INTEGRATING Integrating smart grid deployments across the organization, realizing measurably improved performance ENABLING Investing based on clear strategy, implementing first projects to enable smart grid (may be compartmentalized) INITIATING Taking the first steps, exploring options, conducting experiments, developing smart grid vision DEFAULT Default level (status quo) © Copyright 2013 TCS

6 Maturity Levels: Defined sets of characteristics & outcomes SGMM at a Glance 8 Domains: Logical groupings of smart grid related capabilities & characteristics Characteristics Examples: Approach for tracking, inventory & event history of assets under development Developing an integrated view of GIS & RAM with location, status & nodal interconnectivity Conducting value analysis for new systems Exploring RAM (Remote Asset Monitoring) beyond SCADA 6 Maturity Levels: Defined sets of characteristics & outcomes 175 Characteristics: Features you would expect to see at each stage of the smart grid journey © Copyright 2013 TCS

www.sei.cmu.edu/smartgrid Model Compass Survey Navigation Process Fully described in the Model Definition document Compass Survey Questionnaire-based assessment yields maturity ratings and comparisons Navigation Process Expert-led workshops to complete Compass and use results to develop consensus aspirations Training Overview Seminar and SGMM Navigator Course Partner Program License organizations and certify individuals to deliver Navigation process V 1.2 Product Suite www.sei.cmu.edu/smartgrid © Copyright 2013 TCS

WAM SGMM Compass Survey Example questions: Contains Work and Asset Management SGMM Compass Survey Contains One question for each expected characteristic in the model and Attribute and performance questions Example questions: WAM-3.2 Condition-based maintenance programs for key components are in place. WAM-2.1 An approach to track, inventory, and maintain event histories of assets is in development. © Copyright 2013 TCS

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 © Copyright 2013 TCS

SGMM benefits – a community view Use of SGMM by utilities Guidance, common language, & means to track progress Utilities Product to help customers and participation in roadmap development SGMM Partners Another mechanism to support grid modernization DOE Maturity & Performance Data SEI “What works” patterns to inform strategies, services, & programs. Correlations of performance to maturity patterns and other analyses Demonstrations of the value of grid modernization. Improvements to SGMM product suite. © Copyright 2013 TCS

Smart Grid Process Approach

Smart Grid Process Tools SGMM – Smart Grid Maturity Model from SEI, CMU Transmission Metrics from US –DOE for SG deployment in transmission sector Smart Grid Deployment Evaluation Framework – Environmental Development Fund (EDF) Smart Grid Scorecard , Smart Grid Project Evaluation Metrics – from Gridwise Alliance Smart Grid Interoperability Maturity Model – by Quality Logic, reviewed by Gridwise Architecture council members Outage Restoration Maturity Model – Defined by Avineonics with utility partnership RMM (Resiliency Maturity Model), C2M2 (Cyber security Capability Maturity Model for Electricity Subsector) are other more detailed maturity models from SEI © Copyright 2013 TCS 22

RMM Process Areas Engineering Management Operations Management Requirements Management RRD – Resiliency Requirements Development RRM – Resiliency Requirements Management Asset Management ADM – Asset Definition and Management Establishing Resiliency SC – Service Continuity CTRL – Controls Management RTSE – Resilient Technical Solution Engineering Engineering Management Operations Management Enterprise Management Process Management Asset Resiliency Management EC – Environmental Control KIM – Knowledge & Information Management PM – People Management TM – Technology Management Sourcing EXD – External Dependencies Threat, Incident, & Access Management AM – Access Management ID – Identity Management IMC – Incident Management & Control VAR – Vulnerability Analysis & Resolution Governance, Risk, & Compliance COMP – Compliance EF – Enterprise Focus RISK – Risk Management Supporting Resiliency COMM – Communications FRM – Financial Resource Management HRM – Human Resource Management OTA – Organizational Training & Awareness Data Collection & Logging MON – Monitoring Process Management MA – Measurement and Analysis OPD – Organizational Process Definition OPF – Organizational Process Focus Source: ww.cert.org/resiliency © Copyright 2013 TCS 23

C2M2 – Domains & Levels © Copyright 2013 TCS 24

Process tools for Smartening the Grid Utility Operations – To-Be State Smart Grid Process Tools: SGMM RMM C2M2 SG Score Card Other Tools Internal Processes Stages | Domains | Levels | Roadmap | Deployment Utility Operations – As-Is State © Copyright 2013 TCS 25

Need for a Process Approach One Tool / Model does not cover all aspects of Smart Grid such as Technical, Operational, Organizational, Infrastructural, & Customer Services aspects SGMM covers most aspects, but designed as a maturity profiling tool to support Smart Grid strategy & roadmap definition Utilities need a strong customized framework to support every stage of the Smart Grid life cycle starting from planning to deployment Current strength in organizational processes has to be leveraged for successful Smart Grid deployment moving onwards …. This leads to a requirement of an Institutionalized Process approach which uses best practices from different sources mapped to the SGMM characteristics to form a customized framework to continuously track & manage the Smart Grid lifecycle © Copyright 2013 TCS 26

Process Approach - Background Use SGMM as the basis for Maturity Profiling Setting Aspirations (using benchmarked SGMM results) Gap analysis Identify Characteristic Evidence Indicators (CEIs) for key SGMM Characteristics – based on recommended metrics from RMM, C2M2, SG Score card, & other models / practices Use CEIs to track / monitor SG program’s progress moving onwards …. © Copyright 2013 TCS 27

TCS’ Smart Grid Implementation Approach Smart Grid Maturity Model Assessment Gap Analysis & Roadmap Planning & Managing SG Implementation Characteristics CEI Based Approach Resiliency Maturity Model GP, SP As-Is Definition To-Be State Definition Enterprise Architecture SG Score Card C2M2 Metrics Gap Analysis Solutions People Process Technology Customer Regulatory Operations Etc. Priorities & Business Case PoC Other Process Models Roadmap Pilot PIIs PII: Practice Implementation Indicators CEI : Characteristic Evidence Indicators GP, SP: Generic and Specific Practices Deployment © Copyright 2013 TCS 28

SGMM Activities and Aspirations Extending SGMM - CEI Characteristic Evidence Indicators (CEIs): Methodology based on identifying characteristics by evidences rather than questionnaires Concept based on Practice Implementation Indicators (PIIs) used in CMMI assessments For each characteristic, a CEI can be identified CEI can be split into 2 parts: Objective evidence which is a defined process / guidance Implementation Evidence which is a proof of characteristic Characteristics mapped to a set of CEIs Objective Evidence indicates initial stages of implementation Implementation Evidence characterizes higher degree of implementation SGMM Activities and Aspirations © Copyright 2013 TCS 29

Examples of CEI Characteristic Objective Evidence Implementation Evidence Implementing advanced outage restoration schemes (Grid Operations) Outage Restoration Functional Description System generated outage report, Request for planned outage Pilot remote monitoring on key assets for manual decision making (Grid Operations) Function Specifications Pilot remote monitoring project Pilot program results Education and Training to develop Smart Grid competencies (Organization Structure) Training plan covering all functional areas Training records Information Security Considerations for Smart Grid Initiatives (Technology) Security practices documented as per standards (ISO 27000, SAS-70) Implementation check lists for Security practices © Copyright 2013 TCS 30

Case Studies

Background – Case Study – SGMM TCS is a Navigation Partner for the Smart Grid Maturity Model, SGMM with the Software Engineering Institute (SEI) of CMU Utility in the example is planning their Smart Grid Program & are in the process of defining the road map for modernization of their distribution grid Utility wants to use the SGMM to define their roadmap SGMM Navigation As SEI Certified Navigators TCS carried out the foll. Lead stakeholders through the defined process Conducted a Survey Workshop & support SMEs from the utility to complete the survey & get the Survey scored by SEI Analyzed the Scored / Benchmarked survey results & do the Gap Analysis Presented the results & conduct Aspirations Setting Workshop © Copyright 2013 TCS 32

Smart Grid Planning SGMM Evaluation As-Is Utility Business Objectives Update Smart Grid Vision & Mission Aspirations Gap Analysis Stakeholder Requirements Regulatory Customers Others Present Initiatives Select Solutions List of Solutions Business Case Implementation Plan Metrics for Implementation Phase Based on broad steps and key solutions © Copyright 2013 TCS 33

Smart Grid Program Approach Strategy & Roadmap consulting High Level Solution Design SGMM Evaluation AS IS Envision Defining Business Process Map High Level Gap analysis Defining solution architecture – solution component & capability requirement Solution Options Business Case Define Smart Grid Vision & Mission Business Objective Stakeholder Requirements Project Implementation Plan Pilot Definition SGMM Evaluation Aspirations High Level AS IS Next Phase Details AS IS Gap Analysis Enterprise Architecture Solution selection EA/BPM/PMO © Copyright 2013 TCS 34

Compass results: maturity profile CENTROSUR, APR-2012 2 2 1 1 1 © Copyright 2013 TCS 35

Compass results: dashboard Example : Results Level Strategy, Management & Regulatory Organization & Structure Grid Operations Work & Asset Management Technology Customer Value Chain Integration Societal & Environmental 5   0.00 0.50 0.15 0.10 0.37 0.30 4 0.22 0.23 0.07 0.05 0.26 3 0.43 0.63 0.35 0.21 0.38 2 0.58 0.72 0.55 0.87 0.64 0.66 1 0.80 0.76 0.90 0.53 0.36 0.70 1.00 Point Range Meaning ≥ 0.70 Green reflects level compliance within the domain ≥ 0.40 & < 0.70 Yellow reflects significant progress < 0.40 Red reflects initial progress = 0 Grey reflects has not started © Copyright 2013 TCS 36

Recap Steps involved - Enterprise level approach to Smart Grid deployment SGMM – Assessment & maturity profiling Use SGMM to define strategy & roadmap Manage deployment – Extending SGMM Characteristics Customized framework based on other process tools, proven industry practices, internal processes Manage SG deployment with periodically collected metrics and corrective actions © Copyright 2013 TCS 37

thank you Questions, Comments, Discussions … narayanan.rajagopal@tcs.com krishna.vp@tcs.com 38