1. © 2002 IBM Corporation IBM Research SC 25/WG 1 Chitose IBM Research Ron Ambrosio 1 GridWise U.S. Department of Energy SC 25/WG 1 Chitose Meeting June 23, 2004

2. IBM Research Global Technology Outlook 2004 © 2003 IBM Corporation IBM Research GridWise – June 23, 2004Ron Ambrosio SC 25/WG 1 Chitose 2 2 GridWise Initiative Bringing the Electricity System into the Information Age  Multiple related government and industry activities  GridWise DoE program Under Office of Electric Transmission and Distribution (OETD)  GridWise Alliance industry consortium Approximately 20 members as of Spring 2004  GridWise Architecture Board DoE advisory panel of experts from various industry segments  U.S. DoE Pacific Northwest National Laboratory, IBM, and several other international companies cooperated on the definition and creation of GridWise over the last 4 years  Key launch milestone was a DoE / GridWise Alliance MOU signing ceremony at the U.S. Senate office building in March, 2004

3. FACT: In the next 20 years, the U.S. will spend $450B on electric infrastructure, just to meet demand. GridWise 1 st Law: E ≡ MC 2 Markets + Communications + Control ≡ Electric infrastructure CHOICE: Perpetuate a 20th Century solution, OR Invest in a 21st Century GridWise system saving ratepayers $80B and increasing reliability. GridWise 2nd Law: The choice is easy because… $ bits << $ iron : The Virtual Electric Infrastructure

4. IBM Research Global Technology Outlook 2004 © 2003 IBM Corporation IBM Research GridWise – June 23, 2004Ron Ambrosio SC 25/WG 1 Chitose 4 4 Aggregators Appliances, Equipment, Processes Gen, T, & D Suppliers Emergency Operations Distribution Linemen Customer Energy Service Co.s, Vendors, Utility Programs capacity, avail- ability, price, forecast, contract terms, DG incentives power require- ments, forecasts, status, curtailment audit results, retrofit opportunities, designs, costs, terms & conditions voltage, DG/storag e status grid status level, power/ end-use rations billing, info access, attractive contracts, approvals, occupancy, performance Residential Perspective of a GridWise World

5. IBM Research Global Technology Outlook 2004 © 2003 IBM Corporation IBM Research GridWise – June 23, 2004Ron Ambrosio SC 25/WG 1 Chitose 5 5 GenCo Distribution Utility Appliances, Equipment, Processes Forecast long-term loads Localized Retail Markets ISO/RTO Customer Operations Congestion Load data Long-term fixed/ spot/TOD prices, demand response, DG prices Planning Capacity upgrade costs Capacity trading Real-time loads, direct curtailment, DG dispatch Electric Utility Perspective of a GridWise World

6. IBM Research Global Technology Outlook 2004 © 2003 IBM Corporation IBM Research GridWise – June 23, 2004Ron Ambrosio SC 25/WG 1 Chitose 6 6 Contact Ron Ambrosio Manager, Internet-scale Control Systems Research Relationship Manager, IBM Global Energy & Utilities Industry Ron Ambrosio/Watson/IBM@IBMUS rfa@us.ibm.com +1 914-945-3121 IBM T.J. Watson Research Center P.O. Box 218 1101 Kitchawan Rd. / Route 134 Yorktown Heights, NY 10598