Industry 4.0 and sustainable energy

Jakarta, February, 12 2019
Bayu Imadul Bilad
Assistant Research of EMAT
Guided by Mr. Chairul Hudaya, Ph.D
EMAT (Electric Power and Energy Materials) FTUI
Industry 4.0 and
Sustainable Energy

Age of Industry 4.0
2
Age of industrial Revolution and the next :
75% works involve Science Skill, Technology,
Engineering and mathematics, Internet of
Things, long life study (Zimmerman, 2018)
Industrial Revolution 4.0 : TECHNOLOGY
DISRUPTION → NEW CULTURE
 >55% Organizations declare that digital talent gap
is widening (LinkedIn, 2017)
 Indonesia needs to increase quality of employee’s
skills with Digital Talent (Parray, ILO, 2017)
 the increasing importance of social skills at work
(The Economist, 2017)
Revolution based on Cyber Physical
System, combination between digital
domain, physic, and biology (Klaus
Schwab, 2017)

Industry 4.0 defines as:
3
 An approach to control production process
by providing real time synchronization of
flows and by enabling unitary & customize
production (Kohler & Weiz, 2016)
 A general concept enabling manufacturing
with elements of tactical intelligence using
advanced IOT, cloud & big data technology
(Trappey et al., 2016)
 Internet & supporting technologies serve as
backbone to integrate physical objects,
human actors, intelligent machines, product
lines and processes to form a new kind of
intelligent, networked and agile value chain
(Schumacher, Erol & Sihn, 2016)

Industrial Revolution 4.0 by Schwab
4

Schwab and Industrial Revolution 4.0
5
• Argument: Speed, breadth
and depth, systemic impact
(on the state, society,
industry and company).
• Systemic Impact: inequality
is the biggest challenge.
• Megatrend: Physical
(vehicle without driver, 3D
printing machine, advanced
robotics, and new material),
digital, biological.
• The tipping point of
Industry 4.0 is estimated to
occur in 2025.

Five Clusters of Industrial Revolution 4.0’s Impact (Schwab,
2017)
6
1. Economy - Growth, Employment, Nature of
Work
2. Business - Consumer Expectations, Better
Data Products, Collaborative Innovation, New
Operation Models
3. National-Global Relations - Government;
Country, Regional and City; International
security
4. Society - Inequality and Middle Class,
Community - Inequality and Middle Class,
Community
5. Individual - Identity, Morality and Ethics;
6. Inter-Human Connection, Management of
public and private information

How did Industrial Revolution 4.0 do change??
7
Revolusi Industri 4.0 (Sumber: www.kompasiana.com)

How did Industrial Revolution 4.0 do change??
8
Revolusi Industri 4.0 (Sumber: www.kompasiana.com)
UNIDO : Industry 4.0 & Sustainable Energy Study

The main objectives of Industri 4.0
9
Revolusi Industri 4.0 Indonesia (Kementrian Perindustrian)
Source: Siemens AG 2015

Industrial Revolution = Technology Disruption
10
Human Machine
communication
Connection:
global village
Smart Robot
Internet of things 3D Printer Driverless Car
Big Data Online / Virtual Education

Economic benefit of i4.0 in some countries:
11Source: Deloitte, 2017.
create 137k jobs in
big data, double
nanoelectronics
production.
30% productivity
increase, 2,6% cost
reduction/year,
€425B economic
growth by 2025. 9% increase in
GDP (contributed
by manufacturing
industries). 25% productivity
increase, 27% decrease
of defectives, >0,5M
jobs created, build 10k
smart factories

Countries of 4.0 for given industries
12
Source: Deloitte, 2017.
Pharmaceuticals
Industrial
manufacturing
Korea
Germany
China
USAJapan
SpainIndia
Spain
Automotive
Korea USA
Germany
S. Africa
PortugalJapan
India
Electronics
and ICT
Korea
Germany
China
Japan
India
S. Africa
Taiwan
France
Chemicals
China
India
France
UK
12
Fashion apparel
Korea
USA
Spain
Portugal
UK

The Scope of Industry 4.0
13
Kuliah Umum Teknik Industri, Universitas Dian
Nuswantoro, Desember 19 2017

Industry 4.0: digital and interconnected production
14

Basic of Supporting Technology
15
UNIDO :
Industry 4.0 &
Sustainable Energy Study
Big Data
Augmented
Reality
Blockchains
Internet of things
Rapid
Prototyping

Big Data
16
Big data is a term often used to describe sets of
data characterized by high volume, high velocity,
and high variety (De Mauro et al. 2015), and for
which the use of advanced analytical tools is
required in order to process data into actionable
information by identifying patterns, trends, and
relationships (Lycett 2013).
Big data could support sustainability, for
instance by helping produce relevant statistics
that enable better informed decision making
as much on economic, environmental or
societal issues (UN Big Data Global Working
Group Task Teams 2014).

Internet of things
17
First coined by Kevin Ashton in 1999, the
Internet of Things is a concept describing
the next iteration of the internet, where
information and data are no longer
predominantly generated and processed by
humans – which has been the case for most
of the data created so far (Ashton 2009) – but
by a network of interconnected so-called
smart objects, embedded sensors and
miniaturized computers, able to sense their
environment, process data, and engage in
machine-to machine communication.
This is already exemplified in our everyday
life by connected watches or cars, while
industrial applications include Veolia’s use
of interconnected sensors in order to
continuously monitor its water treatment
processes (e.g. pH, temperature, etc.)

Augmented Reality
18
One big potential for AR is seen in the service
sector. Its application for maintenance
purposes can help to connect staff on the
customer location with service experts from
the producing company, allowing them to
jointly inspect the product under consideration
and develop feasible maintenance solutions,
without forcing experts to physically travel
to the customer.
The same approach can be applied when it
comes to train local workforces in different
regions. Through these approaches AR
applications open up economic
opportunities for small companies like
startups, which want to sell their product
around the globe and to offer decent
services to their customers, but cannot
afford to establish a global service network.

Blockchains, and what they could mean for
sustainable energy
19
Blockchains are distributed databases and
ledgers made of blocks stored on a large
number of machines, so that any changes
made to the database are permanently
recorded, and any record is made publicly
available thanks to the distributed design
(Crosby et al. 2016).
Blockchains are expected to bring about
unprecedented changes in traceability and data
robustness. This opens up new opportunities
for reducing or eliminating the need for a
trusted middleman in many operations, be it a
supply of certified renewable electricity coming
from distributed energy generation, the
verification of legal provisions, the
establishment of a patent, or a simple payment
(see Figure 9).

How a blockchain works
20

Rapid Prototyping
21
Rapid prototyping is a group of complementary
technologies such as computer-aided design
and additive-layers manufacturing, also
known as 3D-printing, used to rapidly produce
parts and prototypes, as opposed to the more
traditional material forming and removal
techniques (Kruth et al. 1998).
The cost and time savings enabled by
rapid prototyping can help to ease mass-
customisation and are considered an
enabler for innovation, as innovative designs
are becoming easier, quicker, and less
expensive to test.

Jobs at “high risk” of automation
22
Share of employment at "high risk" of computerization

Challenges in Industry 4.0 (1)
23
Apart from effects on employment, the digitization of industry is likely to pose other
challenges:
 Resource demand: Every digital device is based on hardware that requires raw
materials for its original production. Due to the growing diffusion and application of
digital technologies, the demand for raw materials is also likely to increase - opening
up questions regarding their availability.
 Data security & privacy: One of the biggest challenges most often expressed by
companies in association with Industry 4.0 is data security (Brink et al. 2015; Littlefield
2016). They are afraid to become more vulnerable to hackers invading their intellectual
property as they have digitized their processes and connected all devices and machines
to the network.
 Overstraining of governments with the creation of suitable policy frameworks:
Digitization and Industry 4.0 are largely driven by actors from the economic sphere.
Their pace often exceeds the speed at which policies and regulations can be
formulated to govern digital and technology developments.

Challenges in Industry 4.0 (2)
24UNIDO : Industry 4.0 & Sustainable Energy Study
 Innovation race: The vast and increasing speed of technology development could lead
to a first-mover advantage for pioneering countries or companies. This would give the
few top runners large economic influence and – if regulations are weak – power to
lever out social and environmental standards.
 Deepening global inequalities: Related to the previous point, inequalities between the
economic development of industrialized, emerging economies and developing
countries could further deepen if countries of the Global South cannot tap into digital
development benefits.

Combining Industry 4.0 and Sustainable Energy
25
The transformation of the energy sector through the deployment of more sustainable
energy systems and digital transformation of the industry will substantially alter the way
people live, consume, produce and trade.
The sustainable energy transition and
Industry 4.0 share important
characteristics: both are highly influenced
by technological innovations, dependent
on the development of new suitable
infrastructures and regulations as well as
are potential enablers for new business
models.
These commonalities have not yet translated into substantial policies to foster the transition
to more sustainable energy systems and digital production at the same time and in an
integrated way (above Figure).

Digitization of the energy sector
26
Developments in information and communication technologies, the spread of
internet access and mobile devices such as smartphones, and the development of
the blockchain technology open opportunities for new approaches and business
models that could significantly impact the energy sector.
Digital technologies could offer
solutions to the challenges of
integrating renewable energy
sources into small and large
power grids which require new
approaches to grid management
(IRENA 2013). So-called smart
grids serving that end have
received wide attention in the
past years.

Smart Grid Scope
27
Part of the overall energy ecosystem that included Generation, Transmission,
Distribution and the Customer premise

Smart Grid View
28
The Smart Grid can be
defined as an electric
system that uses
information, two-way,
cyber-secure
communication
technologies, and
computational
intelligence in an
integrated fashion across
the entire spectrum of the
energy system from the
generation to the end
points of consumption of
the electricity.
Hamid Gharavi, Reza Ghafurian, Fellow IEEE

Smart Grid View
29
John D. McDonald, P.E.
GE Energy T&D
GM, Marketing
The integration of electrical and information infrastructures, and the incorporation of
automation and information technologies with our existing electrical network.
Comprehensive solutions that:
 Improve the utility’s power reliability, operational performance and
overall productivity
 Deliver increases in energy efficiencies and decreases in carbon emissions
 Empower consumers to manage their energy usage and save money
without compromising their lifestyle
 Optimize renewable energy integration and enabling broader penetration
That deliver meaningful, measurable
and sustainable benefits to the utility,
the consumer, the economy and the
Environment.
More Focus on the Distribution System

Smart Grid View
30
A Smart Grid is an electricity network that can intelligently integrate the actions of
all users connected to it - generators, consumers and those that do both—in order
to efficiently deliver sustainable, economic and secure electricity supplies .
Smart Grid: An Overview : Tamilmaran Vijayapriya, Dwarkadas Pralhadas Kothari

Aims of the Smart Grids—the Vision
31
 Provide a user-centric approach and
allow new services to enter into the
market;
 Establish innovation as an economical
driver for the electricity networks
renewal;
 Maintain security of supply, ensure
integration and interoperability;
 Provide accessibility to a liberalized
market and foster competition;
 Enable distributed generation and
utilization of renewable energy sources;
 Ensure best use of central generation;
 Consider appropriately the impact of
environmental limitations;
 Enable demand side participation (DSR,
DSM);
 Inform the political and regulatory
aspects;
 Consider the societal aspects [2].

Growing Complexity In Modern Grids
32
John D. McDonald, P.E.
GE Energy T&D
GM, Marketing

A “Smarter” Grid
33
John D. McDonald, P.E., GE Energy T&D, GM, Marketing
Enabled
Utility Managers
Old Grid Smart Grid
You call when the power goes out. → Utility knows power is out and usually restores it automatically.
Utility pays whatever it takes to meet peak demand. → Utility suppresses demand at peak. Lowers cost. Reduces CAPEX.
Difficult to manage high Wind and Solar penetration → No problem with higher wind and solar penetration.
Cannot manage distributed generation safely. → Can manage distributed generation safely.
~10% power loss in T&D → Power Loss reduced by 2+%… lowers emissions & customer bills.

Smart Grid Framework

The Future Home
35

Elements of Today’s Smart Grid
36

A Model Set Up of Smart Grids
37
A model set up of Smart Grid including smart generation, smart transmission,
smart storage, smart sensors to isolate the fault is given in below Figure .
In order for the Smart Grids Vision to become a reality, a plan of actions is needed to allow
the many facets of technical, regulatory, environmental and cultural issues to be addressed in
an optimized manner.

Smart Grid Benefits
38

What Interoperability Standards are Needed?
39
Standards are needed for each of the interfaces shown to support many
different smart grid applications. Standards are also needed for data networking
and cyber security.

Hurdles to Smart Grid Widespread Adoption
42
 Lack of comprehensive, long-term and integrated Smart Grid strategies and
roadmaps tied to quantifiable benefits
 Substantial capital investment required up front
 Regulatory structures that do not fully recognize the benefits of smart grid
technologies (e.g., decoupled rates)
 Utility business models that minimize risk and ties returns to electricity
revenue
 Interoperability and the need for faster, more comprehensive development
of standards, including physical and cyber security
 The need to move away from isolated pilots from “testing” to “phased
deployments” on a larger scale (“city-scale”)
 Availability and capability of smart grid educational tools for policymakers,
regulators and consumers to change thinking and attitude to smart grid
technologies

WHAT IS AMI?
43
 AMI is not a single
technology
implementation, but
rather a fully
configured
infrastructure that
must be integrated
into existing and
new utility
processes and
applications.
At the consumer level, smart meters communicate consumption data to
both the user and the service provider. Smart meters communicate with in home
displays to make consumers more aware of their energy usage.

How does AMI support the vision for the Modern
Grid?
 Initially, Automated Meter Reading (AMR) technologies were deployed to reduce
costs and improve the accuracy of meter reads.
44

What Are The Technology Options For Ami?
An AMI system is comprised of a number of technologies and
applications that have been integrated to perform as one:
45
 Smart meters
 Wide-area communications
infrastructure
 Home (local) area networks
(HANs)
 Meter Data Management
Systems (MDMS)
 Operational Gateways

Smart Meters
 At the residential level, these meters simply
recorded the total energy consumed over a
period of time – typically a month.
47
• Time-based pricing
• Consumption data for consumer
and utility
• Net metering
• Loss of power (and restoration)
notification
• Remote turn on / turn off
operations
• Load limiting for “bad pay” or
demand response purposes
• Energy prepayment
• Power quality monitoring
• Tamper and energy theft
detection
• Communications with other
intelligent devices in the home
 Smart meters are many more functions,
including most or all of the following:

Communications Infrastructure
48
The AMI communications infrastructure supports continuous
interaction between the utility, the consumer and the
controllable electrical load.
Various media can be considered to provide
part or all of this architecture:
• Power Line Carrier (PLC)
• Broadband over power lines (BPL)
• Copper or optical fiber
• Wireless (Radio frequency), either
centralized or a distributed mesh
• Internet
• Combinations of the above

Home Area Networks (HAN)
49
A HAN interfaces with a consumer portal to link smart meters to
controllable electrical devices. Its energy management functions
may include:
• In-home displays so the consumer always knows what
energy is being used and what it is costing
• Responsiveness to price signals based on consumer-
entered preferences
• Set points that limit utility or local control actions to a
consumer specified band
• Control of loads without continuing consumer
involvement
• Consumer over-ride capability

Meter Data Management System (MDMS)
50
A MDMS is a database with analytical tools that enable interaction
with other information systems (see Operational Gateways below)
such as the following:
• Consumer Information System (CIS), billing systems,
and the utility web site
• Outage Management System (OMS)
• Enterprise Resource Planning (ERP) power quality
management and load forecasting systems
• Mobile Workforce Management (MWM)
• Geographic Information System (GIS)
• Transformer Load Management (TLM)

Operational Gateways
51
AMI interfaces with many system-side applications (see MDMS
above) tosupport:
Advanced Distribution Operations (ADO)
o Micro-grid operations (AC and DC)
o Hi-speed information processing
o Advanced protection and control
o Advanced grid components for
distribution
Advanced Transmission Operations (ATO)
o Substation Automation
o Hi-speed information processing
o Advanced protection and control
Modeling, simulation and visualization
tools
o Advanced regional operational
applications
o Electricity Markets
Advanced Asset Management (AAM)
AMI data will support AAM in the following
areas:
o System operating information
o Asset “health” information
o Operations to optimize asset
utilization
o T&D planning
o Condition-based maintenance
o Engineering design and construction
o Consumer service
o Work and resource management
o Modeling and simulation

What does AMI Do?
 Enables a two-way flow of information between
consumers and utilities
 Enables proliferation of demand response
 Allows service provider to control consumers’
electricity usage (load control)
 Facilitates Smart Grid deployment and distributed
generation
52

Gathering Meter Data for Complex Rates
55
 There are several types of advanced metering, but
not all qualify as AMI
• Standalone meter read locally
• Standalone meter read remotely over public infrastructure
• Meter with short-distance communication upgraded to
fixed network
• Private fixed network AMI system

56
Data Rate Classes
 Low bandwidth
 Mesh networks
• Communications from
each meter flow through
several others on the way
to the MDMS
 Full broadband network
connections
• More bandwidth equals
higher cost
• But also more capability
• Allows for unforeseen
value sources

57
Another Benefit: Load Control
 Home Area Networks
 Homes can respond to
electricity supply in
order to maximize
efficiency through user-
set profiles
 Utilities can alter supply
of electricity to homes
when demand is
expected to spike

58
AMI in US
 AMI accounts for 4.7% or
6.7M of all US electricity
users
 Number of installed
meters projected to grow
to 52M by 2012
Which electricity
generating entities have
done the most?
Electric cooperatives
have highest rate at
13%
Investor-owned
utilities: close to 6%

59
Cost
 Itemization
• Hardware and software
• Installation costs
• Meter data management
• Project management
• IT integration

System Configuration of SCADA SMGS
(Source: PTKKE-SMGS, 2013)
60

Saving energy in the manufacturing sector
61
One of the key characteristics of Industry 4.0 is the digitization of manufacturing
processes.
This transformation can offer opportunities for energy saving – for example,
through the optimization or replacement of specific technologies, the
application of new software tools that also offer energy optimization
functionality, or adaptations in the business processes.
An example for the optimization of a
specific technology can be found in the
control of the behavior of a large
number of interconnected robots by an
algorithm that reduces their energy
consumption.
By minimizing the acceleration of
robots, their energy consumption can
be reduced by up to 30 % without
increasing the overall production
time (Lennartson & Bengtsson 2016).

Saving Energy in The Manufacturing Sector
Source: Figure based on Sauer 2015.

Industry 4.0 and sustainable energy

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