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© 2014 IBM Corporation Does your Cloud have a Silver Lining ? The adoption of Cloud in Grid Operations of Electric Distribution Utilities Kieran McLoughlin.

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Presentation on theme: "© 2014 IBM Corporation Does your Cloud have a Silver Lining ? The adoption of Cloud in Grid Operations of Electric Distribution Utilities Kieran McLoughlin."— Presentation transcript:

1 © 2014 IBM Corporation Does your Cloud have a Silver Lining ? The adoption of Cloud in Grid Operations of Electric Distribution Utilities Kieran McLoughlin

2 © 2014 IBM Corporation One can tailor cloud delivery models to meet clients unique needs Private cloudPublic cloudHybrid cloud 3 rd Party hosted and operated Shared (community) private cloud Enterprise Hosted by 3rdPty 3 rd Party hosted and operated Public cloud services Hosted by 3 rd Pty Users 3 rd Party hosted and operated Dedicated private cloud Enterprise Hosted by 3 rd Pty Managed private cloud Enterprise data center On customer premise 3 rd Party operated Private cloud On customer premise Enterprise data center Customer operated Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service

3 © 2014 IBM Corporation The energy industry has unique considerations with a cloud approach Energy providers are subject to tight regulations which govern compliance in both data security and privacy Critical infrastructure protection Rules which govern Personally Identifiable Information (PII) Physical Security, User Access Control, Data Encryption and network security Many providers in the utility industry prefer capital expenditure investment for their IT needs Many regulated utilities receive a rate of return on capital investment Gradually changing regulations and market pressure will increase cloud value and activity Regulators increasingly scrutinize rate cases Vendors increasingly moving to ‘as a service’ LoB owners often seek solutions to technology needs outside of corporate IT Capital Recovery Model Changing Attitudes Security & Data Privacy

4 © 2014 IBM Corporation4 Grid operations system have the following characteristics  Process Automation Grid management processes will be automated to address complexity, speed and greater efficiency  Model & Analyze Increased modeling and analytics capabilities for historical analysis, real time operations, forecast, planning and risk assessment.  Control Hybrid management system with both centralized and distributed control functions  Distribution Automation Increased feeder and substation intelligence and automation. IEDs moving towards ‘Internet of Things’  Monitor More remote measurements from devices added to the network monitoring grid state, condition, demand and supply points Time Dimension

5 © 2014 IBM Corporation5 Grid Operations applications range from mission critical to non- mission critical, from real-time to non-real time Can Cloud be of Value to Electric Utilities in the Grid Operations Domain ? SCADA

6 © 2014 IBM Corporation 6 The Large Utility, multiple Grid Operations Centers Acting Thesis:  Utilities will increasingly see the benefit of a common and consolidated grid operations design featuring common and consolidated design, software footprint and infrastructure. Business processes and rules can be standardized. This is about efficiency and cost take out  Have one grid ops software footprint in a data center and the actual grids ops center have use of it under an architecture to be determined  Deployment would be a private, on premise cloud OR hybrid cloud where dev test environments are stood up in a private, off premise environment. Failover and backup in appropriate environments.  Benefits: –Reduced overhead and administration costs through software standardization –Reduced operational cost through higher utilization of existing infrastructure –Reduce software run costs due to standardization –Reduced training costs –Cost reduction through common, cloud based dev / test –Reduced time for change implementation through cloud based dev, test Deployment Model: 1) Private, On Premise 2) Private, Off Premise

7 © 2014 IBM Corporation 7 Mid-sized Utilities, Cooperatives and Growth Markets  Typically do not have the budget to access advanced capabilities of modern grid operations capabilities (aDMS, OMS, mobile). Do not have the ability to continuously upgrade capabilities and benefit from new releases. May not have the resources to support an on-premise grid ops solution. Acting Thesis:  This is a relatively open market for advanced DMS capabilities. The right combination of capability, standardization, and convenience will open doors of new opportunity.  May require some degree of customization for rules, configuration, but standardization in the software capabilities and infrastructure capabilities. Or, more likely, a custom set to processes for a community of customers (e.g., NRECA)  Deployment would predominately be a private, off premise cloud OR off premise, community model.  Benefits: –Greater functionality at a lower cost –Cost efficiencies offered by cloud and SaaS –Benefit from new releases –Likely improved security –Benchmark functionality against other utilities Deployment Model: 1) Private, Off Premise 2) “Community”, Off Premise

8 © 2014 IBM Corporation 8 Utilities in Emerging Markets MEA Typically minimal infrastructure and the utility has been privatized as part of a government restructuring of the electric industry. No existing DMS capabilities therefore these are ‘born on cloud’ targets Acting Thesis:  A SaaS model will be the best way emerging markets can acquire modern grid mgt capabilities  Completely standardized offering in it’s functionality, processes, rules and services..  Deployment would predominately be community, off premise OR private, off premise.  Benefits: having access to basic up to advanced grid ops capabilities without the overhead, support costs, etc. Additional Thoughts  We see this in Turkey and Nigeria at present, where these utilities have to have complete revamp and/or new grid operating infrastructure. It is important to point out that Turkey is far advanced of a country like Nigeria, where the grid is in poor state and there is a lot of diesel generation and private power plants associated with industrial enterprises Anticipated Deployment Model: 1) “Community”, Off Premise

9 © 2014 IBM Corporation Conclusion  Cloud will have the most initial impact with Utilities in Emerging Markets, followed by Mid-Sized utilities and then Large Utilities  Utilities in Emerging markets will use Cloud just as they have done with Wireless communications to springboard to the latest capabilities, and take advantage of SaaS models to lower upfront capital investments  All three types of utilities can use cloud to their advantage as an additional ‘how’ to achieve their business and social objectives  All Utility Industry application providers are working to see how best to take advantage of cloud to offer new solutions and services 9


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