How can (SAP) Technology help implementing SmartGrids

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How can (SAP) Technology help implementing SmartGrids Seinsing consultation, EC-Brussels, 28th March 2007 Dr Maher Chebbo Vice President Utilities Industry for EMEA SAP AG Chairman Demand and Metering group - EU SmartGrids maher.chebbo@sap.com

SmartGrids is a major transformation of Power industry 1

SmartGrids : Transforming the Electric Infrastructure 300b Distribution disrupts linear power & monetary investment flow needed network over 3 decades to meet load growth with businessas-usual solutions Competitive Distributed Generation Vulnerable to opens door natural for other or distributed man-made resources disruptions Advanced Controls & E-Business Applications provides the means for collaboration to take advantage of opportunities Process Controls Planning & Operations Explosion of technology & business innovation Real-time info, e-business & market efficiencies minimize need for kw inventory & infrastructure while maximizing productivity & asset utilization Loads & grid resources collaborate as a selforganizing society of devices Enhanced stability, security, crisis management Rapid, seamless penetration of new technology, e.g. DG, DA, storage, demand response Efficiency & renewables compete revealing time- and locationdependent value of electricity provides incentive to collaborate Utility Restructuring sharing value in realtime provides the basis to collaborate Ubiquitous Communications 2

SmartGrids : Markets and Controls Merge to Form a Transactive Network Markets Transactive Network Controls 3

Connecting the Dots of the Value Chain: Revealing Value at All Levels Central generation Avoided infrastructure Transmission Avoided infrastructure Congestion relief VAR support Spinning reserve Non-spinning reserve ~3-yr payback Distribution Avoided infrastructure Voltage support Power quality Penetration Customer Lower electric costs Waste heat utilization Power quality Backup power Rate-of-Return 30% 4

e-energy : A Real Time transactional Marketplace 5

Large scale deployment of Automatic metering Infrastructure 6

Customer driven markets Multimetering Interactive multi-metering devices will create significant new business opportunities and synergies Electricity Gas Heat Water All in one E-meter One bill One metering company Combined tariffs Optimized Costs Service coordination

SmartGrids Strategic Research Agenda : 5 Areas Smart Distribution Infrastructure Smart Operations and Energy Flows SmartGrid Cross Cutting issues and Catalyts Small Users Small Users Active Networks SmartGrids Active Networks SmartGrid Cross Cutting issues and Catalyts Large users Large users SmartGrid Assets and Asset Management European Interoperability of SmartGrids 8

SmartGrids Strategic Research Agenda : RA 3 Advanced models for asset condition monitoring Risk and soci-economic based Assets Management (ageing assets, maintain or I. Transmission and Distribution Network - Smart replace) Distribution Infrastructure Smart Operations and Energy Flows Network asset management Generic business case for innovative assets Small Users II. Small Transmission Users networks of the future New architectures & new tools Active Networks SmartGrid Cross Cutting issues and Catalyts SmartGrids III. Transmission networks of SmartGrid the future Long Distance Power Supply Cross Cutting issues and Catalyts Active Networks Large users Large users SmartGrid Assets and Asset Management European Interoperability of SmartGrids 9

From reactive to proactive maintenance using RFID sensors Improvements in RFID Sensor Networks is changing the nature of the maintenance function from Reactive to Proactive!!! MAM Predictive Asset Performance Predictive Models Execute 1 3 Analyze 2 Monitor and Control Utilities Processes 10

Typical Predictive Process Flow TITLE PI Database Analyst ECM 11 Large amounts of real-time data: Classification, aggregation and clustering can be valuable Source: IBM

Predictive Maintenance Solution MAM RFID RFID Administrator Portal Portal Reader Temp Sensors RFID Middleware Predictive Event Analysis mysap Business Suite RFID Reader RFID event Repository BI DW Equipment Sensor Layer Sensor Reader Layer Business Process - XI Integration Layer Predictive Analytics Layer Enterprise Application Layer 12

SmartGrids : Areas of Sensing Control Monitoring enabled by SAP 1) Home appliances (exchnage via SAP Netweaver / XI) 2) Mobile Asset management (SAP MAM) 3) RFID Assets predictive maintenance (SAP Enterprise Asset management) 4) Smart metering Automatic metering infrastructure (SAP AMI) 5) Supply Chain and Event Management (SAP SCEM) 6) Business Activity Monitoring Business Intelligence (SAP BI, BAM) 7) Exchange Infrastructure ( SAP netweaver / XI) 8) Service Oriented Architecture orchestrating (SOA enabled by SAP Netweaver) 13

Smartgrids : the route to innovation 14

Thanks for your attention : Questions?