http://www.ibm.com/smarterplanet/us/en/smart_grid/nextsteps/index.html?cmp=agus_cxosp2gridsol-20100426&cm=c&csr=onegrid&cr=slideshare&ct=usbrb401&cm_mmc=agus_cxosp2gridsol-20100426-usbrb401-_-c-_-onegrid-_-slideshare Smart grids use information to automate, monitor and control the two-way flow of energy. Smart grids can also incorporate renewable energy and integrate electric vehicles.

1. Energy & Utilities Industry
Powering A New Energy Age,
One Smart Grid At A Time
Getting Smart About Our Future

2. Today’s challenges
Utility companies around the globe, Smart grid technologies transform the IBM is helping utilities add a layer
faced with an ever intensifying and way electricity is generated, transmitted, of digital intelligence to their grids.
interconnected set of challenges, are distributed and managed, adding These smart grids use information
looking for even smarter ways of doing intelligence throughout the grid to to automate, monitor and control
business. More and more, utilities are improve system reliability and efficiency, the two-way flow of energy — from
viewed as being a critical link to improving management of supply and the source to the plug. Smart grids
solving the challenges we all face demand, optimize operations and can also incorporate new
related to climate change and the streamline costs. By using digital sensors, sustainable energies such as
care of our planet’s energy resources. advanced communication networks wind and solar generation, and
Customers, employees, regulators, and analytics, utilities can understand integrate electric vehicles.
investors, and other stakeholders are demand in near real-time.
looking in part to utility companies
to address these issues and to
take actions that produce genuine
environmental and financial results.
If the U.S. grid were 5% more efficient, the energy savings
would equate to permanently eliminating the emissions
from 53 million cars.
2

3. The Intelligent Utility Network by IBM
The Intelligent Utility Network is gain near real-time visibility into their • Grid Operations
IBM’s solution for the smart grid. It usage and costs. A smart grid also Provides enhanced operational and
encompasses a broad set of offerings helps consumers actively participate analytical capabilities throughout
that address the complete energy in solving critical energy problems by distribution network operations.
value chain, from generation to the enabling “smart” homes and energy- Development, planning,
consumer’s premise. The Intelligent conscious implementation of asset monitoring
Utility Network fundamentally is an choices possible. and energy management systems
information network that connects required for grid operations and
together the ‘participants’ in the IBM’s Intelligent Utility Network solution their integration into the utility
energy value chain, at multiple levels. guides a utility in every phase of a operations environment and
This information network enables the smart grid transformation from strategy enterprise to take advantage of
intelligent flow of information, which can development, planning and selection this information for business and
be used to transform and optimize the through design, implementation, and operational intelligence.
generation, supply and consumption of ongoing operations. The Intelligent
electricity. The Intelligent Utility Network Utility Network provides utilities with a • Intelligent Utility
is the information management solution for: Network Security
component of the smart grid. Provides tools and methodologies
• Smart Metering & Beyond to enhance physical and cyber
The Intelligent Utility Network will enable Enables business security characteristics of the
the transformation of the way power transformation through enhanced smart grid.
is generated, distributed and used, metering capabilities. Comprehensive cyber security
enabling more intelligence throughout Visioning, strategy, planning and offering covering major aspects of
the grid to dramatically reduce outages selection, design, build, rollout utility security from assessment,
and faults, improve responsiveness, and operations support for smart strategy, policy, planning and
handle current and future demand, metering initiatives, their integration development to managed
increase efficiency and manage costs. into the utility enterprise and the security operations.
With a smart grid, consumers will be ensuing capabilities that smart
able to interact with a utility in multiple, metering enables for both the utility
convenient ways; select customized and the consumer.
services and pricing options; and
3

4. • Intelligent Utility Network IBM also helps utilities extend billing of electricity to electric vehicle
Communications Networks distribution capabilities into homes, mobile customers. Development of
Apply methodologies which will commercial operations and cars. demonstrations and pilot projects.
optimize communications aspects
• Electric Vehicles • Renewable Energy Resources
of the smart grid.
Visioning and strategy to support Visioning, strategy, development of IT
Assessment and development
the various business models which and communications infrastructure
of utility-wide voice and data
may develop around the supply required to integrate distributed
communications strategy to enable
and demand of electricity with energy into the utility network and
information exchange across all
electric vehicles. Development gain observability of the resources
the components of a Smart Grid.
of IT infrastructure and standards in order to better manage electricity
Further provide planning, design,
required to enable the supply and supply and demand.
implementation and operation of
IUN communications networks.
The U.S. could save up to $70 billion in infrastructure
spending over the next 20 years through better
management of existing assets.
4

5. How Do We Deliver?
The Intelligent Utility Network solution projects, our solution has harvested operations transformation. Many of
combines strategy, processes and engagement models and best these offerings are connected through
technology to help utilities build a practices that can enable a the IBM Solution Architecture for Energy
smart grid in line with their vision and faster implementation. and Utilities Framework (SAFE). This
objectives. We have experienced innovative, powerful software platform
subject matter experts and trained Through hardware, software and is uniquely designed to provide
Intelligent Utility Network practitioners service offerings, IBM provides a rich network visibility and control, process
who can deliver the solution. Based portfolio of solutions across the energy automation and business collaboration
on the experience gained from our value chain for power generation for solutions across the energy and
various Intelligent Utility Network optimization, transmission and utility value chain.
implementations and demonstration distribution operations and customer
Building an Intelligent Utility Network
Proven, Tested, Validated Methodology. SAFE Architecture. Supporting the can extend their investment in current
Validated with top energy and Intelligent Utility Network Solution is applications, systems and infrastructure.
utilities companies, IBM’s successful the Solution Architecture for Energy
Intelligent Utility Network methodology and Utilities Framework (SAFE), The framework brings the capabilities
guides our grid strategy and delivery an innovative, powerful software of IBM software to power smarter
engagements. Our methodology is platform, uniquely designed to utility solutions across all areas of
customized to confront disruptive provide network visibility and control, a utility, including plant operations,
technologies, like the smart grid. For process automation and business mobile workforce management, asset
instance, our methodology addresses collaboration for solutions across the lifecycle management, smart metering,
concerns in a heavily regulated energy value chain. SAFE enables data grid operations and customer care.
environment, and it emphasizes transformation throughout a By integrating and optimizing assets,
stronger reliance on multiple solution utility company. Both highly cohesive devices, networks, servers, applications
providers in a complex, rapidly and loosely coupled applications can and data across the enterprise, utility
changing technology environment. work together so that utility companies companies can drive business agility
5

6. IBM is a leader in smart grid transformation around the globe.
Involved in approximately 50 smart grid
engagements worldwide
Supporting 7 out of 10 largest automated metering
projects globally
Employing more than 3000 energy and utility
professionals worldwide
Significantly investing in energy and environment
programs toward smart grid transformation
6

7. and more ‘intelligent’ networks. The and execution that might exist. The and provide feedback on its use,
framework approach will help SGMM can be used in a variety of ways, value and impact for stakeholders.
increase the reuse of assets for the most powerful of which is to create In addition, the World Energy
each successive project, improving a common vision and prioritization Council (WEC) is now a channel
return on investment and speed of initiatives that provide the greatest for global dissemination,
of implementation. opportunity for improvement, innovation participation and adoption of the model
and transformation. using its worldwide network
Smart Grid Maturity Model.
of member committees.
Progressive utility executives know that In April 2009, IBM and a group of
smart grid transformation is the right leading utilities — the Global Intelligent Component Business Model.
thing to do, but many remain unclear Utility Network Coalition — announced IBM has developed a Component
about where to begin. The Smart Grid that they handed-over stewardship Business Model (CBM), a tool for smart
Maturity Model (SGMM) from IBM is a of their Smart Grid Maturity Model grid planning and execution,
strategic management tool designed to the Carnegie Mellon® Software for the entire set of functions performed
to help energy and utility companies Engineering Institute (SEI), which by utilities, regardless of organizational
benchmark their current smart grid- assumes primary responsibility for orientation. The CBM creates a one-
related initiatives versus the industry. the ongoing governance, growth and page snapshot to allow executives
The tool also provide a framework evolution of the model. In order to to frame decisions from a common
alignment around the long term strategy support widespread adoption and perspective. It can be used to identify
for a smart grid program. The SGMM use, the SEI will ensure availability of relevant areas of strategic importance
creates a clearly articulated journey the model and supporting materials and map resources allocation to those
for smart grid transformation, with and services for the user community; areas via a CBM “heat map.”
defined stages and options, and helps maintain consistency of its application,
to bridge the gaps between strategy validity, and results; and analyze
China aims to boost usage of renewable energy to 10 percent of
total energy consumption by 2010 from 7.5 percent in
2005. Solar power capacity will rise to 300,000 kilowatts from
70,000 kilowatts.
7

8. U.S. Power Grid Research and Innovation
The power grid is among the top As a leader in the information to explore new and innovative
concerns of President Barack Obama, technology industry, IBM and its technologies for
and key to the stimulus program. In research division realize the importance emerging opportunities. Clients
a speech to students and faculty at of delivering innovation to our clients. have a research team to solve
George Mason University on January To aid them in achieving their specific problems that don’t have ready
8, 2009, the then President-elect goals, IBM Research has created On solutions. Researchers get immediate
explained how the new Administration Demand Innovation Services, which client feedback to further enhance
would “do more to retrofit America for a features a First-of-a-Kind program and their projects.
global economy. That means updating the Industry Solutions Lab.
the way we get our electricity by starting The Industry Solutions Lab gives
to build a new smart grid that will save First-of-a-Kind projects are partnerships IBM clients the chance to discover
us money, protect our power sources between IBM and clients that turn how leading-edge technologies and
from blackout or attack, and deliver promising research into market-ready innovative solutions can help solve
clean, alternative forms of energy to products. This is a great way to match business problems.
every corner of our nation.” researchers with target companies
IBM energy industry software labs in Austin,
Texas, and La Gaude, France, along with
demonstration centers built
with utilities, such as CenterPoint Energy,
USA, and Country Energy, Australia,
establish the value of smart grids to the
industry and public.
8

9. IBM and Smart Grid Demonstration Projects
Together with our global business thermostats, meters and sensors — in Denmark-based collaborative aimed at
partners, IBM has helped to consumers’ homes that were tied developing an intelligent infrastructure
create pilot projects that to the PNNL system. This helped that will make possible the large-scale
demonstrate the many advantages to automatically control power adoption of electric vehicles powered
of smart grid technology. consumption based on pricing signals by sustainable energy. Within the
and customer preference. The smart project, IBM researchers will develop
Pacific Northwest National Lab: outcomes? Consumers were able to smart technologies that synchronize
Smart Meters Power Down Bills decrease their electricity bills by an the charging of the electric vehicles
As part of the U.S. Department of average of 10 percent, as the utilities with the availability of wind in the grid.
Energy’s GridWise Program, the Pacific reduced short-term peak loads by 50 IBM has also contributed a hardware
Northwest National Laboratory (PNNL) percent through better use of existing platform to the Technical University
project wanted an innovative way to infrastructure. of Denmark that will be used for
keep the electricity grid healthy in times large-scale real-time simulations of
of stress by better managing electrical EDISON Project: the energy system and the impact of
demand. IBM helped them implement Building A Smart Grid for Electric Cars electric vehicles.
intelligent devices — including The EDISON research consortium is a
Thinking Smarter in the Real World
Consider these examples of what The IBM solution will involve replacing will be able to make better decisions
Intelligent Utility Network technology 250,000 analog electric meters about usage and begin replacing
and services from IBM can do to with smart meters that can monitor carbon-intensive fuel oil with
save energy, positively impact climate electricity usage in real time, identify sustainable sources of energy.
change, and create a more water leaks and electricity losses, set
sustainable environment. variable rates, and reward customers CenterPoint Energy:
who consume less power. Water meters Improving Grid Reliability
Malta: First Smart-Grid Nation will be integrated into a system that can As a major U.S. energy company,
The Mediterranean island nation monitor and manage meter readings CenterPoint Energy is deploying 2.4
of Malta is about to become the and suspensions. By collecting and million advanced electric meters in the
world’s first smart-grid country. The analyzing the data from thousands of Houston area to improve operations,
Maltese national electricity and water digital sensors embedded throughout give consumers more control over their
utilities have selected IBM to design the infrastructure, the Maltese energy consumption and provide the
and deliver a nationwide smart grid government foundation for retail electric providers
implementation over the next five years. to offer new competitive services and
9

10. Investing in the creation of smarter grids
products. Working with IBM Global To promote the use of smarter energy, IBM’s Energy and Environment
Business Services and IBM Global IBM is substantially investing in energy Initiative is an effort to apply
Technology Services, CenterPoint and environmental programs and technology and services that
Energy is deploying an advanced has actively participated in a host of matter to businesses, governments,
metering solution supported by IBM global initiatives, with the goal to lead people and the planet. This initiative
Tivoli® Netcool®/Impact software. The utility industry organizations to smart includes Intelligent Transportation
new system will deliver near-real-time grid transformation. Systems to measure and improve
data on energy usage and supports transportation usage, Carbon
dynamic time-of-use rates and other The Global Intelligent Utility Network Management to measure and
pricing options. This will encourage Coalition is a strategic relationship reduce carbon emissions, Energy
energy conservation and new offerings, that IBM formed with a small group of Efficient Technologies and Services
such as monthly prepaid electric leading utilities from around the globe to create and manage efficient
service for the budget-minded. to shape, accelerate and share in the information technology (IT) in energy
development of the smart grid. The management, and Advanced Water
DONG Energy: Powerful Savings Coalition’s purpose is to collaborate in Management to measure and manage
Increasing marketplace and regulatory the market to enable the rapid creation water systems usage, as well as the
demands, along with a need for future of solutions, the adoption of open Intelligent Utility Network.
infrastructure reinvestment, drove industry-based standards and informed
Danish utility company DONG Energy policy/regulation that drive the adoption The GridWise® Alliance, formed in
to look for a way to better manage and of the smart grid. A key benefit of the 2004, is a public-private partnership
utilize its electrical distribution network. Coalition is that it reduces regulatory, working to transform the nation’s
The solution proved it would be able to financial, market and implementation power supply system by moving the
reduce minutes of power lost by 25% risk for the industry. The current Global grid into the information age, and IBM
to 50%, reduce fault search time by Intelligent Utility Network Coalition serves as a key participant and chairs
one-third, and potentially realize a member base serves nearly 100 million the Alliance. Its members include
savings of up to 90%. electric and natural gas consumers. utilities, IT companies, equipment
vendors, new technology providers
and educational institutions.
10

11. The GridWise Architecture Council, also works closely with this organization and and EISA 2007 and modernizing the
formed in 2004, is working to shape the chairs the Council. nation’s electricity delivery system. IBM
guiding principles, or architecture, of a is a leading participant with extensive
highly intelligent and interactive electric The Department of Energy’s Electricity experience in advising how digital
system — one ripe with decision-making Advisory Committee, formed in 2008, technology can improve reliability,
information exchange and market- provides advice to the U.S. Department security and efficiency of the electrical
based opportunities. IBM Research of Energy on implementing EPACT 2005 system with a smart grid.
IBM is collaborating with the city of Rotterdam, The Netherlands
on the design and testing of a monitoring and forecasting system
for smarter water and energy management.
11

12. Why IBM
IBM has proven successful around
the world in delivering solutions that
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provide improved reliability and end-
IBM Corporation
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We bring to the table the integration Armonk, NY 10504
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skills, leading-edge technology,
Produced in the United States of America
partner ecosystem and business
March 2010
and regulatory expertise required to All Rights Reserved
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