—SIMO SÄYNEVIRTA, HEAD OF PLATFORM ENGINEERING – DIGITAL ABB
Role of 5G in Energy and Industrial Revolutions?
World as we know it is being disrupted – at unprecendented rate of change
Energy and Industrial Revolutions
October 2, 2017 Slide 2
Renewable electrification
Smart distribution
Industry 4.0
Collaborative, Flexible Manufacturing
Real-time energy optimization
Smart Cities
E-Mobility
Mobility-as-a-Service
Data centers
Utilities Industry Transport & Infrastructure
Consider these developments
Renewables and storage driving unprecedented change
October 2, 2017Source: Clean Disruption, Volta, Nissan, Tesla
Slide 3
Renewables growth Energy storage price reductions New regulations & incentives
Disruption through new business models
+27%Already over 27% of all energygeneration in Europe comes fromrenewables, while in the US 15%
$350 billionChina recently said it would shut 85 coalplants and instead invest $350 billion inrenewable sources of energy
8-10%Global renewables capacity hasincreased by 8-10% y-o-y since2010 and the trend is to continue,with over 150GW added annually(2/3 of all capacity addition)
$36/MonthAverage American consumes903 kWh/month ⟶~ 30kWh/dayBy 2020 it will cost $36.8/month($1.2/day) for a full day ofelectricity storage
$0SV Startup Volta offering FREE EV chargingin exchange for media rights at prime high-value properties.If this business model succeeds, the EVMARGINAL COST of energy will be ZERO
85%At certain times of year in Germanythe Max hourly variable renewablegeneration rate already above 85%of hourly demand. Result:NEGATIVE ENERGY PRICES
The Green agendaRenewables penetration
Current challenges and changes facing utilities
October 2, 2017 Slide 4
Aging infrastructureNearly 70% of the transformers in
the US are more than 25 years old.1
Transitioning workforce40% of the workforce at America’selectric and natural gas utilities willbe eligible for retirement in the nextfive years6
ReliabilityThere is increasing pressure to
continually improve reliabilityand customer satisfaction.
Spending justificationContinued revenue challenges andregulatory inspection will driveTotex focus and cost constraints.
Cyber securityAttacks on critical infrastructureare increasing in terms ofregularity and sophistication.
Through 2018, 50% of IoT devicemanufacturers will not be able toaddress threats from weakauthentication practices.7
Need for improvedcustomer engagement
Customers expectations of“engagement” are changing.
25 billion devices (not countingsmartphones, tablets or
computers) will be connectedto the IoT by 2020.3
1 Harris Williams & Co. | 2 ARC Advisory Group, November 2014 | 3 Gartner. Predicts 2016: Unexpected Implications Arising From the Internet ofThings. December 2015 | 4 IDC FutureScape: Worldwide Utilities 2017 Predictions | 5 IDC Energy IDC FutureScape: Worldwide DigitalTransformation 2017 Predictions | 6 APPA | 7 Gartner. Predicts 2016: Unexpected Implications Arising From the Internet of Things. December 2015IDC Innovators 2017
Business model disruptionBy 2020 non-utility players will seize
20% of the energy retail market.
2.5 GW of electricity will be generatedby 20% of Fortune 500 companies,
who will wholesale their distributedenergy resource excess power through
utility-independent subsidiaries.4
Renewables penetrationGlobal renewables capacity hasincreased by 8-10% y-o-y since 2010,and the trend will continue with over150GW added annually (2/3 of allcapacity addition).
CostMinimizeà Optimize
PerformanceExceedàMeet or beat
RiskAvoidàManage
$
New challenges for traditional paradigms for control and commerce
Resulting in increasing complexity in Energy System
October 2, 2017EV: Electric VehicleDER: Distributed Energy ResourceSlide 5
Aggregation of DERs for wide-area grid support and markettrading
Aggregation
Intelligence
Generation &Storage
Markets
Behind-the-meter
Managing voltage levels & reactivepower (VAR) with assets owned bythe utility and otherwise
System in which EV sell demandresponse services to the grid
Health Monitor networkparameters & control devicesremotely
Distributed energy resources atcustomer sites
Distribution connected renewablesgeneration and storage
Control in-home appliances toswitch off high-load components(load disaggregation)
Decentralized market platformfor charging EVs
ActiveDistribution
Networks
Load management at customersites through e.g. dynamicpricing
Underlying communication tosupport Smart technology
Collect, store and reportresidential energy use information Regulatory requirements for
more granular pricing schemesand markets
Prosumers locally sell excessenergy from their distributedenergy
Frequency Regulation
Tapping into benefits requires much greater agility that typical today
Smart Manufacturing offers tremendous business potential
October 2, 2017 Slide 7
Industrie 4.0 - DEULaunched in 2011 at the “Hannover Messe” bythe German government. Industrie 4.0combines production methods with state-of-the-art information and communicationtechnology.
National Network for ManufacturingInnovation - USALaunched in 2011 by the US government.Network of research institutes focusing ondeveloping and commercializingmanufacturing technologies.
Made in China 2025 - CHNLaunched in 2015 by the Chinese government,the initiative aims to comprehensivelyupgrade Chinese industry.
Innovation in Manufacturing 3.0 - KORLaunched in 2015, it aims to invest KRW200billion ($172 million) annually from 2015 to2020 to facilitate the building of 1,500 smartfactories by 2020.
“Smart factories havethe potential to add$500 - $1,500 billionannually to the globaleconomy in the nextfive years.”Source: Capgemini 2017
“Smart factories arerevolutionizingmanufacturing byenabling a 7x increasein overall productivityby 2022.”Source: Capgemini 2017
Now – what about evolution of Industrial Automation?
October 2, 2017 Slide 8
Sweden beginning of 20th century – human closing the loop
The evolution of industrial automation
October 2, 2017 Slide 9
USA in 1940’s – programmable controllers
The evolution of industrial automation
October 2, 2017 Slide 10
1970-80s Distributed Control Systems
The evolution of industrial automation
October 2, 2017 Slide 11
Currently – we have digital, layered control systems
Dynamic operating environment shifts Automation Hierarchy…
© ABB GroupOctober 2, 2017 | Slide 12
ERP(Level 4)
MES / CPM(Level 3)
Supervisory control(Level 2)
Regulatory control(Level 1)
Process(Level 0)
…towards a dynamically networked systems architecture
© ABB GroupOctober 2, 2017 | Slide 13
ERP(Level 4)
MES / CPM(Level 3)
Supervisory control(Level 2)
Regulatory control(Level 1)
Process(Level 0)
ERP(Level 4)
MES / CPM(Level 3)
Supervisory control(Level 2)
Regulatory control(Level 1)
Process(Level 0)
Today‘s Hurdles in Machine-to-Machine Communication addressed with
HMIHMI
ControlVendor A
Machine Machine
ControlVendor B
ProprietaryCommunication
Protocol
OPCCommunication
OPCCommunication
§ Multiple communication protocols§ Limited innovation speed
• Locked into proprietary eco systems• High integration effort
Automation and Machine Supplier Machine User
Solution: Unified Communication based on OPC UA over TSN
Example of forming interoperability ecosystems
Recently announced OPC UA over TSN alliance
—Summary: ABB Ability & Digitalization
Customers will increasingly have to deal with very dynamic environments
October 2, 2017 Slide 17
ControlRoomField Operations
CenterBoardRoom
Timehorizon
Businessprocesses
GridPlant
Devices Businessstrategy
Digitalization is the answer for the necessary agility and decision-making velocity
Milliseconds Seconds Minutes Hours Days Weeks Months Years
The need for faster decisions and real-time action requires visibility of the entire business
Partnership with Microsoft to build up a common digital platform across the value networks
ABB Ability™ Solutions & Platform
Slide 18
ABB Ability™
ABB provides efficiencyand scale
ABBdigital
solution
Delivers customer benefit(uptime, speed, yield…)
What
How
ABBdigital
solution
Utilities Industry Transportation &infrastructure
2 October 2017
ABB+Customersolution
Customerdigital
solution
Platform(common technologies for device, edge, and cloud)
Secure digital solutions on-premise, in the cloud, and in an ecosystem
Ecosystems start blending together - Intercloud
October 2, 2017 Slide 19
Fog Cloud Intercloud
5Gnetwork
platforms
Predix Mindsphere
ABB Ability™
Edge
Device
Edge
Device
Cloud
Ecostruxure
v
v
v
v
Winning with Digital takes ability.ABB Ability™.