© 2012 IBM Corporation

Smarter Asset Management for Renewable Energy

Ben Hanley – Asset Management Consultant – Renewable Energy and Sustainability

Richard Clayton - Asset Management Consultant

© 2012 IBM Corporation2

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 offshore wind farm

30%UK’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 Corporation3

Smarter Planet

© 2012 IBM Corporation4

Analytics Optimising the location and configuration of wind farms Making sense of ‘big data’ to better design wind farms Modelling operations and supply chains Building Information Modelling

Plan and Design Phase

Collaborative Information Management Systems Bring together disparate pieces of data across complex supply

chains Having the information available supports planning processes Once planning is granted, process supports Lean Construction

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Plan and Design Phase: VESTAS Case StudyVirtually selecting the optimal location for wind turbines

Challenges• Precise wind turbine placement makes a significant difference to performance and useful life.

Solution• One of the world’s largest supercomputers / modeling solutions• Fast analysis of complex structured / unstructured data: temperature, pressure, humidity, precipitation, wind direction / velocity at the ground level up to 300 feet

Benefits• 97% reduction (from weeks to hours) in response time to business user requests • Improved accuracy of turbine placement• Decreased cost per kWh produced and increases the precision of customer ROI estimates

© 2012 IBM Corporation6

Build Phase

Managing the Information Flow Resources and inventory communicated in real-time to those that need

to know Optimising resourcing across the project’s lifecycle – e.g. hiring ships

and cranes Optimised delivery schedules – minimising the costly storage and

transportation of heavy and bulky assets

Lean Sigma Root cause analysis to identify opportunities to change how processes work Build methodology

Renewable Energy for Transport EDISON: Electric Vehicles in a Distributed and Integrated Market using Sustainable Energy and Open Network. EVs as balancing tool for intermittent wind: Vehicle-to-grid in periods of low wind power and excess demand.

ecoisland Hydrogen Refuelling. Converting wind power to hydrogen fuel - using excess supply when the wind is blowing.

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Operate and Maintain Phases

Lifecycle Asset Management Scheduling asset downtime and ensuring shut-downs occur when

supply or demand is less Reduced reliance on fixed inspections Asset Management considered at all phases of a wind farm’s life

Remote Condition Monitoring and Analytics Sensors and analytics to interpret and derive value from raw data Automatically generate predictions and prioritised alarms,

pinpointing turbines where there are problems and highlighting issues before failures occur

Actively managing assets remotely Organising supply chains and maintenance to reduce exposure to

hazardous environments

© 2012 IBM Corporation8

Challenges• Real-time Monitoring, Control, Analysis and Management of Renewable Assets across Europe.• Information from SCADA Systems and Business Support Systems (ERP).

Benefits• Real-time decision making • Significant cost savings and enhanced revenue generation• Scalable to support ambitious growth plans with integration of other new renewable assets such as Solar and Bio-gas based power in next years.

Operate and Maintain: A leading European Utility with >4 GW Renewable installed capacity

Optimize- e.g. Integrate, Generation Portfolio and Asset Management Optimization

Mat

uri

ty

Business Value

Manage- e.g. Condition-Based Maintenance and Predictive Analytics

Monitor- e.g. KPI’s, Dashboards, Real-Time Reporting

© 2012 IBM Corporation9

Hybrid-DA based Renewable Energy Forecasting Solution (HyREF)

Challenges• Renewable energy growth in China from 50GW in 2012 to 200GW by 2020• Renewable power: intermittent, random with lack of high accuracy power forecasting

Solution• Data collected from Satellite, Met Stations, GIS and SCADA• Forecasting of power output at individual turbine level

Benefits• Turbine-scale power forecasts (resolution < 200m)• Day-ahead Forecast Error as low as 8%• Increase wind power integration by 10%• Electricity sales increase of $80M across the lifecycle

© 2012 IBM Corporation1010

Collaboration

Open Standards

Innovation

EMAIL: ben.hanley@uk.ibm.comTWITTER: BenHanley_77

© 2012 IBM Corporation11

CogenData / C/oud Grid Infrastructure

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

Grid InfrastructureHow do we create an efficient Supergrid, enabling

energy trading and distribution 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 Trading

How 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?

Renewable Energy across the Lifecycle

© 2012 IBM Corporation12

Mass micro generation or large scale distributed generation?

There are similar challenges across all renewable technologies

Integration & Orchestration

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

Cost & Reliability

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

Speed to Scale

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

Optimisation & Balancing

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

Design innovation to cut manufacturing costsInstallation simplicity and supply logistics

Speed to Scale

Engineering for simplicity and reliabilitySmart asset operations and maintenance

Cost & Reliability

Automated, coordinated remote operation“Smart Grid”

Integration & Orchestration

Analytics and optimisationSystem orchestrated “supply response”

Optimisation & Balancing