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© 2012 IBM Corporation Is technology the silver bullet to address ‘expensive’ and ‘unpredictable’ renewables? Ben Hanley – Asset Management Consultant – Renewable Energy and Sustainability

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© 2012 IBM Corporation

Is technology the silver bullet to address ‘expensive’ and ‘unpredictable’ renewables?

Ben Hanley – Asset Management Consultant – Renewable Energy and Sustainability

© 2012 IBM Corporation

IBM | Smarter Energy

2

Rising to the challenge: Integrating cost effective renewable energy into a balanced and stable energy system

Optimising the design, build and management of renewable energy

Balancing supply and demand in a dynamic market with variable wind supply

Enabling the physical infrastructure to be created rapidly

1% = £1m p.a. Impact of a percentage point improvement in availability for a 250MW wind farm

40%Ireland’s electricity from renewable sources by 2020

9MW – 2.6GWElectricity produced from wind at 3.00am 28 March 2011 and at 11.40am 31 March 2011

© 2012 IBM Corporation

IBM | Smarter Energy

3

Optimisation & Balancing

Integration & Orchestration

Mass micro generation or large scale distributed generation?

Speed to Scale

Cost & Reliability

Lowest cost mix plus returns to ownersMaintaining balance of demand and supply

“Virtual power plant” and network connectionsManaging variability and grid connections

Enough customer take-up to make a differenceFilling the generation gap and slashing emissions

Realistic pay-back periods“Grid parity” from lower capital and operating costs

There are similar challenges across all renewable technologies

© 2012 IBM Corporation

IBM | Smarter Energy

4

The role of information technology

Optimisation & Balancing

Integration & Orchestration

Speed to Scale

Cost & Reliability

Analytics and optimisationSystem orchestrated “supply response”

Automated, coordinated remote operation“Smart Grid”

Design innovation to cut manufacturing costsInstallation simplicity and supply logistics

Engineering for simplicity and reliabilitySmart asset operations and maintenance

© 2012 IBM Corporation

IBM | Smarter Energy

5

IBM Smarter Planet

© 2012 IBM Corporation

IBM | Smarter Energy

6

CogenData / C/oud Grid Infrastructure

How do we create an efficient Supergrid, enabling energy trading and distributing across Europe

Grid InfrastructureHow do we create an efficient Supergrid, enabling

energy trading and distributing across Europe

Smart SolutionsHow do we generate new ways of doing things to

enable a smart and efficient energy system?

Smart SolutionsHow do we generate new ways of doing things to

enable a smart and efficient energy system? Integrated PowerHow do we integrate renewable

power with conventional sources?

Integrated PowerHow do we integrate renewable

power with conventional sources?Efficient TradingHow can we engage in

effective day ahead trading with so much intermittency in

renewable power supply?

Efficient TradingHow can we engage in

effective day ahead trading with so much intermittency in

renewable power supply?

Asset ManagementHow can we optimise availability

and outputs from our wind assets?

Asset ManagementHow can we optimise availability

and outputs from our wind assets?

MaintenanceHow can efficient maintenance enable operational profitability?

MaintenanceHow can efficient maintenance enable operational profitability?

SafetyHow to minimise safety risks for

construction and maintenance teams?

SafetyHow to minimise safety risks for

construction and maintenance teams?

Smart Wind Farm Location / DesignHow do we find those marginal improvements to

wind farm location and design that can yield significant returns over the life of the assets?

Smart Wind Farm Location / DesignHow do we find those marginal improvements to

wind farm location and design that can yield significant returns over the life of the assets?

Turbine TechnologyHow do we find the next

generation of wind turbines that are more efficient, more reliable

and more versatile?

Turbine TechnologyHow do we find the next

generation of wind turbines that are more efficient, more reliable

and more versatile?

LogisticsHow can we manage complex array of materials,

manpower and transportation vessels whilst minimising costs and ensuring expedient development?

LogisticsHow can we manage complex array of materials,

manpower and transportation vessels whilst minimising costs and ensuring expedient development?

© 2012 IBM Corporation

IBM | Smarter Energy

7

CollectCollect

4. Improvement

3. Analytics

2. Data Store

Enterprise Reporting

Feed

Statistics/Models for Improvement

Work Orders, Excel, Browser, Planning

IdentifiedImprovement

actions/projects

1. Sensing-Monitoring

Targeted data acquisition

Meta-data model• Contextualization• Interrelationships

5. Sustainability & Reporting

IdentifyIdentifyActAct

ImproveImprove

SustainSustain

Rule 2a 2b 3a 3b 4c 4d 4e 6a 7a 7b 8a 8b 8c 8d 10a 18 19 21e 21f Time PeriodSeverity (5=Highest) 5 5 3 3 3 3 5 5 5 5 3 4 3 4 3 3 3 5 5 Rolling 7 days

Savings Value (H-igh,M-edium) H H H H H H H M M M M M From

Savings Factor (months) 6 6 6 6 6 6 6 12 12 12 12 12 12 12 12 8/24

Start Day 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 To

Start Month 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8/30End Day 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30

10 to 25 End Month 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 25 to 50

25 to 50 50 to 100

>50 >100

Color Coding: Alerts by

Rule Asset

2a 2b 3a 3b 4c 4d 4e 6a 7a 7b 8a 8b 8c 8d 10a 18 19 21e 21f

Color Coding: Alerts by Asset

RCHB0201527 0 0 0 11 0 0 0 0 10 30 15 28 0 53 0 0 6 0 3 113

RCHB0201529 0 0 0 46 0 0 0 91 50 41 41 60 0 105 0 0 0 0 7 340

RCHB0303572A 0 3 2 7 0 0 0 0 0 2 16 19 0 0 0 4 0 0 46 64

RCHB0303574A 0 0 0 12 0 0 0 0 5 11 ##### ##### 0 0 0 4 3 0 66 101

RCHB0303575A 0 0 0 12 0 0 0 4 5 15 31 53 0 0 0 0 26 5 2 69

RCHB0401565 0 0 0 41 0 0 0 0 0 0 ##### ##### 0 0 13 0 0 0 8 62

RCHB0402505 0 0 0 38 0 0 0 0 0 0 ##### ##### 0 0 0 0 0 0 8 46

RCHB0403509 0 0 2 38 0 0 0 0 0 0 ##### ##### 0 0 0 0 0 0 8 48

RCHB0403552 0 0 0 0 0 0 0 0 0 0 ##### ##### 0 0 0 0 0 0 8 8

RCHB0503550 0 0 0 15 0 0 0 2 2 0 65 69 0 0 0 20 0 0 27 66

RCHB1011003 0 0 0 25 0 0 0 0 0 0 87 118 0 0 0 0 0 1 4 30

RCHB1011004 0 0 0 22 0 0 0 0 0 0 ##### ##### 0 0 0 0 0 1 4 27

RCHB1011013 0 0 0 10 0 0 0 0 15 5 ##### ##### 0 0 0 0 0 0 86 116

RCHB102MJ49AC2 0 3 13 9 0 0 0 0 0 0 55 113 0 25 0 0 0 0 106 156

RCHB102MK49AC1 0 0 0 25 0 0 0 0 0 0 ##### ##### 0 9 0 0 0 0 123 157

RCHB1032020 0 0 0 0 0 0 0 62 20 32 13 86 0 30 0 24 0 0 63 231

RCHB1032021 0 0 0 12 0 0 0 62 20 32 80 108 0 30 0 0 0 0 63 219

RCHB1051001A 0 0 0 29 0 0 0 0 0 0 ##### ##### 0 0 0 0 0 0 146 175

RCHB105MK70AC10 0 15 14 49 0 0 0 0 0 0 58 116 0 117 0 0 0 0 167 362

RCHB1091007 0 0 0 6 0 0 0 0 0 0 ##### ##### 0 0 0 8 0 0 0 14

RCHB1092042 0 0 0 16 0 0 0 0 0 0 ##### ##### 2 0 0 0 0 0 167 185

RCHB1141003 32 28 14 0 0 0 0 0 0 0 46 49 0 0 0 0 0 0 3 77

RCHB1141005 0 0 0 6 0 0 0 0 0 0 61 64 0 0 12 0 0 0 4 22

RCHB1141021 0 0 0 0 0 0 0 0 0 0 54 64 0 0 0 22 0 0 64 86

RCHB1142052 0 0 0 9 0 0 0 0 0 0 60 62 0 0 0 0 0 0 59 68

RCHB1142053 0 0 0 1 0 0 0 20 7 35 111 114 0 1 0 2 0 0 89 155

RCHB1142054 0 0 0 11 0 0 0 0 0 0 ##### ##### 0 0 0 0 0 0 59 70

RCHB1142055 0 0 0 11 0 0 0 0 0 21 25 36 0 0 0 0 0 0 82 114

RCHB203M010 0 0 0 3 0 0 0 0 0 0 ##### ##### 0 64 0 0 27 0 4 98

RCHB203M014 0 0 0 11 0 0 0 61 45 32 ##### ##### 0 76 0 0 0 0 4 229

RCHB203M015 8 9 3 6 0 0 0 0 2 16 ##### ##### 0 36 0 0 10 0 0 90

RCHB203M018 0 0 0 0 0 0 0 0 0 0 ##### ##### 0 65 0 0 0 0 4 69

RCHB203M038 2 1 0 0 0 0 0 0 20 4 2 2 0 62 0 0 0 0 0 89

54 70 71 785 0 0 0 302 201 278 ##### ##### 22 728 30 175 ##### 7 1611 4513

IBM Intelligent Business Management

© 2012 IBM Corporation

IBM | Smarter Energy

8

IBM Rochester, 3.3M sq ft multi-building mixed use light industrial campus. Facilities date to the 1950s. Consistently achieved year on year energy reductions of 5% to 7% over the last 10 years.

• Energy cost reduction on equipment monitored of between 10-15%

• Reactive maintenance decreased by 16%• Hours per work order reduced by 34%• Total number of work order hours decreased by 49%

Tulane University

Rochester, MN

In the wake of Hurricane Katrina’s destruction in 2005, Tulane University saw an opportunity and a responsibility to advance

campus-wide sustainability and energy efficiency. • Over 50% reduction in energy cost since the system was installed

(still being validated)• Tulane can collect, manage and analyze data from buildings to

gain intelligence and insight to energy and facilities management.

Client A

A UK based Asset Management company with rapidly growing portfolio of energy centres – including diverse range of renewable and non-renewable energy generating technologies

• Proof of Concept successfully completed January 2012• Measuring, operational, financial and contractual performance• During implementation a number of opportunities identified to

improve management of assets – savings to be confirmed

IBM Intelligent Business Management

© 2012 IBM Corporation

IBM | Smarter Energy

99

So, we need to work with you.

Collaboration

Open Standards

Innovation

EMAIL: [email protected]: BenHanley_77

© 2012 IBM Corporation

IBM | Smarter Energy

10

Designing, building and managing renewable solutions

Wind Farm Development High-resolution weather model of target areas Creates a “climatology” to determine power potential Evaluate more than just maximum wind Physical, economic and logistical factors determine optimum design

Reducing the Ratio of Downtime IBM MAXIMO Wind Suite – Integrated MRO system. Improve forecasting for ordering, delivery and warehousing Framework for predictive maintenance using SPSS and Smart Signal Solution has delivered 57% reduction in downtime to wind turbines

Predictive maintenance “Stream Analytics” on sensors detects faults before they happen Statistical data mining predicts likely asset failures and service needs Schedule preventive maintenance at the optimal time Maximise uptime and minimise turnaround time: 1% = £4m/GW

© 2012 IBM Corporation

IBM | Smarter Energy

11

Balancing supply and demand when intermittency is the norm

Integrated Control Centres optimise operations Monitor, control and balance generation Optimise generation and mix across diverse portfolio Eliminate functional, expertise and asset silos Uncovers patters from operational, engineering and business data

Denmark’s EDISON Project "Electric Vehicles in a Distributed and Integrated Market using

Sustainable Energy and Open Networks" (EDISON). EVs as balancing tool for intermittent wind Charge scheduling for demand management and energy storage Vehicle-to-grid in periods of low wind power and excess demand

Optimal market trading Higher return potential from Day Ahead than Spot trading But high risk of penalties for missing the bid power amount IBM Deep Thunder and ILOG can significantly reduce risk Enables efficient and profitable trading on day ahead market

© 2012 IBM Corporation

IBM | Smarter Energy

12

Enabling the physical infrastructure

Creating the Smart Grid – enabled in the Cloud Renewable and micro-gen Smart Grid Management Platform IBM Smart Energy Cloud for smart grid data comms & analytics Integration of smart meters, micro storage, EV and intelligent home Forecasting accuracy, optimisation models and automation rules Visualisation for improved decision making

Optimising the Supply Chain Supply chain visibility across categories, geography, tiers Tens of thousands of variables Optimisation of millions of deployment scenarios Demand forecasting, logistics scheduling and inventory optimisation ILOG ODME, Lotus Mashups and Websphere Portal manager

© 2012 IBM Corporation

IBM | Smarter Energy

13

Life cycle plant information management and model-driven embedded software engineering

IBM PlantLIF completes the expanded lifecycle: Integrates plant development activities with asset management Maintains common information repository throughout service life Shares key information across manufacturers and owner/operators Reduces operational and maintenance risk and drives efficiency

Rational Rhapsody Architect UML/SysML model-driven development environment Real time and embedded systems engineering Complex, multiple control sub-systems and interaction Robust generation of control software Configuration management and collaboration tools