IBM Netcool for Smarter Energy and Utilities

1. © 2009 IBM Corporation
Smarter Energy and Utilities
Monitor & Manage the Intelligent Utility Network with IBM Netcool software
Near real-time, consolidated event management across business infrastructure, data centres, complex networks and IT
domains.
Improve Efficiency, Meet Regulatory Requirements

2. © 2009 IBM Corporation2
Market forces are impacting the landscape of utilities, requiring the
transformation of business models
Increased pressure on
operational efficiency and
workforce productivity
Environmental based
regulation. How to
measure and prove?
Increased Security
Requirements
Aging Infrastructure with
increased expectations on
reliability
Growth in renewable
generation and distributed
resources. “Co Gen”
challenges
Increasing consumer focus in
energy management and
conservation
Industry
challenges and
opportunities

3. © 2009 IBM Corporation3
IBM has worked with clients around the world to transform the
energy value chain
CenterPoint
Energy
Consumers Energy
Ontario
Energy Board
Enemalta
ASM Brescia
MVV/City of Mannheim
EnBWEcotricity
Essential
Energy Ausgrid
DTE
Energy
DONG Energy
Progress Energy
Pacific
Northwest
National
Laboratory
San Francisco
Public Utilities
Commission
Oncor
Red Electrica
de Espana
npower
Guangdong
Dapeng LNGAustin
Energy
Hildebrand
Terna
Endesa S.A.
A large Brazilian
Utility Company
Texas Electric
Delivery Company
Power &
Water
SP
Ausnet
Ergon
Transpower

4. © 2009 IBM Corporation
Multi Industry Centers
of Excellence
Multi Industry Centers
of Excellence
North America Europe Asia Pacific
Solutions Experience Lab
at IBM Houston
Energy & Utilities Solutions Centre
at IBM La Gaude
Multi Industry Centers
of Excellence
Integrating industry solutions
with infrastructure
Bridging the gap from
business process to technology
WW Global Energy & Utility Solution Centers
In-depth Industry Solution Architecture and Integration capabilities
4
China Development Lab for E&U
at IBM Beijing
Demonstration centers showcase innovative solutions for the E&U Industry with many integrated, solution
prototypes. Demonstrations can be projected in live video anywhere in the world!

5. © 2009 IBM Corporation
Focus Areas
Improved Operational Efficiency whilst meeting
Regulatory Requirements
“Measure, Manage, Prove”
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6. © 2009 IBM Corporation
Network transformation challenges
As IT and power systems networks converge,
traditional security risks impact power infrastructure
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E Source: Electric Power
Research Institute (EPRI)

7. © 2009 IBM Corporation
Consolidated Operations
Challenge - How to manage the explosion of event data emanating from the increasingly
complicated operating environment and to put context around the business service impact of
silo’d event feeds? This challenge applies equally to the Comms Network, the Datacenter
environment, and the Intelligent Utility Network (Comms and IED’s).
Operational Outcome – leverage the event data coming from the silo’s of monitoring and
management by placing fault conditions in a wider business service context. Identify gaps in
monitoring and understand the interdependencies in play and the Root Cause/Symptom
relationships to allow prioritization of effort on actionable incidents.
Business Benefits – Improved Operational efficiency allowing for a leaner Operational group
(headcount and Tools) whilst delivering tangible improvements in cost reduction and lowered
MTTR with associated outage claim exposure.
Average cost to roll a truck in Victoria is approx $1000/day. In Queensland it is closer to $2000/day.
British Telecom ROI using IBM Netcool Technology:
Consolidated 27 NOCs into 2 Saved costs on s/w, h/w, facilities, 80% staff
reduction
Reduced MTTR by 50% Reduced fault rectification costs by factor of 10
Events reduction of 2,500:1 Reduced OPEX of £736,000 a year
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8. © 2009 IBM Corporation
SmartGrid Management
Challenge - How to address the management burden of the increasingly complex, IP enabled
SmartDevices being deployed into the Grid? Often, these devices perform key protection roles
such as Safety Switching and are typically subject to Regulatory rigor resulting in more
frequent change management and audit obligations.
Operational Outcome – Single, Scalable tool to manage appropriate Intelligent devices within
a multi-vendor, heterogeneous SmartGrid in a controlled and timely manner. Repeatable
configuration templates and “Golden Masters” allow for rapid, error free, auditable
management of devices located in potentially Geographically dispersed and remote locations.
Drive change through automation via Consolidated Ops.
Business Benefits – Improved Operational efficiency through automation and consolidated
Tools framework whilst ensuring Regulatory Requirements can be met and measured.
Minimize OH&S exposure through reduced Truck Rolls ($1000/day Victoria, $2000/day
Queensland)/Physical Pole Climb and litigation.
$19.7m Compensation for Beechworth Fire
$22m sought from Victorian Government in Kilmore East Fire Class Action
Culpable for death of 119 people (out of 173 total)
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9. © 2009 IBM Corporation
SmartGrid Analytics
Challenge - How to leverage the event data exposed from the grid for Automation, Reporting,
OH&S and Asset Management purposes. Also how to exploit asset data held in repositories to
add additional context to faults.
Operational Outcome – Utilise event data such as Weather Station notifications to drive
automation and for rapid identification of localized concerns. Exploit PQ event data to isolate
and target failing infrastructure and provide additional layers of rigor around field maintenance
(isolation). Provide quantifiable service quality data to the business.
Business Benefits – Improve operational efficiency through minimising user intervention in
smart grid device management. Targeted maintenance allows for pre-emptive, preventative
asset management moving from inefficient and expensive scheduled inspection. Better exploit
event data and reporting capabilities for PQ potentially assisting with PUF leading to tangible
financial incentives from State Government. Minimise OH&S exposure and associated
penalties.
Victorian distributor reports multi million $credits/month through PUF reporting
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10. © 2009 IBM Corporation
Discussion Topics
 What are your top challenges currently and what will they be moving forward?
– Regulatory & State Government reporting?
– Improved Operational efficiency?
 What is your Smart Grid Strategy?
– What devices do you have currently deployed and how do you manage?
– What does your 5 year roadmap look like?
– How has the Royal Victorian Bush Fire recommendations affected your roadmap?
 Do you have challenges involving your unregulated lines of Business?
– How do you ensure device configuration is compliant and hardened?
– How do you assure telecommunications services provided to 3rd
parties?
– Do you offer service levels? How do you measure and prove?
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11. © 2009 IBM Corporation
Reference Material
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12. © 2009 IBM Corporation
E&U Reference Customers
 Centerpoint Energy Houston Texas
– Deployed 2.4 AMI Meters
– Manages Itron OpenWay Cell Relays (neighborhood collectors) and significant events
from HP OpenView, CiscoWorks and GE PulseNet. They also manage a number of
servers and appliances that host Meter Data Collection Engines, DataPower XML
accelerator, and the Meter Data Management System.
 Oncor Dallas Texas
– Oncor in Dallas, TX, recently purchased Netcool to manage 400 Smart Grid Routers and
alarms from 4 million Landis & Gyr AMI meters
 Oklahoma Gas & Electric
– Use Tivoli Monitoring as an "event Manager of Managers" to visualize and act upon
events from many sources in the AMI environment; CiscoWorks, Nortel ONG, ABB
distribution management system, SilverSprings UtilityIQ,
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13. © 2009 IBM Corporation
 Great River Energy
– An electric utility in the United States closes 40 percent of its service requests within two
hours and satisfies 85 percent of them without escalation when it builds an integrated
service and asset management solution based on IBM Tivoli Service Request Manager,
IBM Tivoli Asset Management for IT and IBM Maximo Asset Management software
 Light Serviços de Eletricidade S.A
– A major Brazilian utility serving a large metropolitan area creates an interconnected
system of intelligent devices to sense, monitor and respond to indicators of the status of
an electric distribution network to improve service delivery for its customers by
leveraging Tivoli Monitoring, Tivoli Netcool/OMNIbus, IBM System x3500 and IBM Global
Technology Services
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E&U Reference Customers

14. © 2009 IBM Corporation14
Telekom Austria:
Events reduction of 40,000:1
Processed over 4m events a day and
reduced to less than 100 critical alarms
Reduced fault investigation time by 50%
Reduced downtime by 25%
Reduced operational costs by approx €6m
a year
British Telecom:
Consolidated 27 NOCs into 2
Saved costs on s/w, h/w, facilities, 80%
staff reduction
Reduced MTTR by 50%
Reduced fault rectification costs by factor
of 10
BT Global Services:
Events reduction of 2,500:1
Reduced OPEX of £736,000 a year
Saved £171,000 a year on s/w, h/w &
licenses
KPN:
Consolidated 13 NOCs into 2
Reduced operations headcount from 700 to
300
Overall ROI $19m in 9 months
Advanced intra-domain correlation for
Transmission network:
Reduced 10K alarms to less than 9 root
cause alarms
Root cause identified within 3 min
Reduced 12 people to 4, covering 4
regions (1 each)
Telecom Italia:
Increased operational efficiencies by 10% in
service assurance processes
Reduced Trouble Tickets creation time by
15min
Reduced correlation time between faults by
30min
Reduced provisioning time by 4min per order
Reduced ADSL delivery time from 21 days to
7 day
Increased operational efficiencies by 20% in
service delivery processes
Non E&U Consolidated Ops Reference Customers

15. © 2009 IBM Corporation15
IBM Research: Smarter Energy
Solution Driven
Strategy
Committees
and standards
Joint research
and pilots
 Regional Demonstrations
 National Labs
 Universities
 Industry/client partners, technology
consortia
– Smart grids, Batteries, Plug-In Vehicles
 First of a Kind projects
 DOE GridWise Architecture
Council
 NIST SG Working Groups
 ISO, IEC, IEEE, …
 Smart grid enablement
– Real-world aware systems-of-systems
architectures
– Modeling, analytics and optimization
– Renewable and EV integration, optimization
– Demand response
– Interoperability frameworks and messaging
– Cyber-physical system security
– Social computing
– Compute and storage clouds, HPC
 Smarter Energy Platform
 Intelligent buildings and green data centers

16. © 2009 IBM Corporation
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