Power Generation Optimization - IndiaCore...Power Generation TIME Industry Change Growing Demand...

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Global Energy & Utilities © Copyright IBM Corporation IBM Proprietary Power Generation Optimization Power Generation Optimization Reji Kumar Head – Energy & Utilities IBM India

Transcript of Power Generation Optimization - IndiaCore...Power Generation TIME Industry Change Growing Demand...

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Global Energy & Utilities

© Copyright IBM Corporation

IBM Proprietary

Power Generation OptimizationPower Generation Optimization

Reji Kumar Head – Energy & UtilitiesIBM India

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AgendaAgenda

Industry market forces

Power Generation Optimization

Capabilities and delivery

Proof points

Why IBM

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Several market forces are shaping the E&U industry Several market forces are shaping the E&U industry ……

Expectations of Financials Markets

Regulatory & Policy Changes

TechnologicalAdvancements

Customer Expectations

Aging Assets & Workforce Dynamics

Volatile Energy / Fuel

Costs

Security

Environment & Climate

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……and are adding several disruptive trendsand are adding several disruptive trends to theto the primary business driversprimary business drivers for for Power GenerationPower Generation

TIMETIME

Indu

stry

Cha

nge

Indu

stry

Cha

nge

Growing DemandGrowing Growing DemandDemand

Aging Workforce

Aging Aging WorkforceWorkforce

Volatile Fuel CostsVolatile Fuel Volatile Fuel CostsCosts

Regulation & Policy

Regulation & Regulation & PolicyPolicy

Carbon Constraint

Carbon Carbon ConstraintConstraint

Geographical Distribution

Geographical Geographical DistributionDistribution

Disruptive trends begin to fundamentally

transform industry behavior

Disruptive trends begin to fundamentally

transform industry behavior

Increase in severity of typical business drivers, exacerbated by new, disruptive forces = transforming industry

Increase in severity of typical business drivers, exacerbated by new, disruptive forces = transforming industry

Security of Supply

Security of Security of SupplySupply

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Business needs of Generation CompaniesBusiness needs of Generation Companies

TECHNICAL/ PLANT LEVELProject Management for New ProjectsPlant Operation & Generation Management (Load Forecasting-Scheduling-ABT-UI) Plant MaintenanceFuel ManagementHydro ManagementEnvironmental ManagementEngineering and Knowledge Management

TECHNICAL/ PLANT LEVELProject Management for New ProjectsPlant Operation & Generation Management (Load Forecasting-Scheduling-ABT-UI) Plant MaintenanceFuel ManagementHydro ManagementEnvironmental ManagementEngineering and Knowledge Management

CORPORATE LEVELSecure CommunicationInfrastructure (LAN/WAN, Intranet, Mailing System )ERP

- Procurement and StoresManagement

- Financial Management – Budget, Accounts, Audits, Treasury

- Human Resources & Payroll

MIS & Corporate CommunicationDocument Management (Statutory& Regulatory Compliancereporting)

CORPORATE LEVELSecure CommunicationInfrastructure (LAN/WAN, Intranet, Mailing System )ERP

- Procurement and StoresManagement

- Financial Management – Budget, Accounts, Audits, Treasury

- Human Resources & Payroll

MIS & Corporate CommunicationDocument Management (Statutory& Regulatory Compliancereporting)

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Business needs of Transmission CompaniesBusiness needs of Transmission Companies

TECHNICAL/ PLANT LEVELProject Management for New ProjectsSystem Operation (Load Forecasting-Scheduling-ABT-UI) Substation & Line MaintenanceSCADA – EMS - GISMobile Workforce enablementAsset ManagementEngineering and Knowledge Management

TECHNICAL/ PLANT LEVELProject Management for New ProjectsSystem Operation (Load Forecasting-Scheduling-ABT-UI) Substation & Line MaintenanceSCADA – EMS - GISMobile Workforce enablementAsset ManagementEngineering and Knowledge Management

CORPORATE LEVELSecure CommunicationInfrastructure (LAN/WAN, Intranet, Mailing System )ERP

- Procurement and StoresManagement

- Financial Management – Budget, Accounts, Audits, Treasury

- Human Resources & Payroll

MIS & Corporate CommunicationDocument Management (Statutory& Regulatory Compliancereporting)

CORPORATE LEVELSecure CommunicationInfrastructure (LAN/WAN, Intranet, Mailing System )ERP

- Procurement and StoresManagement

- Financial Management – Budget, Accounts, Audits, Treasury

- Human Resources & Payroll

MIS & Corporate CommunicationDocument Management (Statutory& Regulatory Compliancereporting)

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Business needs of Distribution CompaniesBusiness needs of Distribution Companies

TECHNICAL/ PLANT LEVELDistribution System Operation Metering & Billing CIS/CRMTrading and Energy AccountingSCADA-DMS-GISOutage Management SystemMobile Workforce enablementAsset ManagementProject Management for New ProjectsEngineering and Knowledge Management

TECHNICAL/ PLANT LEVELDistribution System Operation Metering & Billing CIS/CRMTrading and Energy AccountingSCADA-DMS-GISOutage Management SystemMobile Workforce enablementAsset ManagementProject Management for New ProjectsEngineering and Knowledge Management

CORPORATE LEVELSecure CommunicationInfrastructure (LAN/WAN, Intranet, Mailing System )ERP

- Procurement and StoresManagement

- Financial Management – Budget, Accounts, Audits, Treasury

- Human Resources & Payroll

MIS & Corporate CommunicationDocument Management (Statutory& Regulatory Compliancereporting)

CORPORATE LEVELSecure CommunicationInfrastructure (LAN/WAN, Intranet, Mailing System )ERP

- Procurement and StoresManagement

- Financial Management – Budget, Accounts, Audits, Treasury

- Human Resources & Payroll

MIS & Corporate CommunicationDocument Management (Statutory& Regulatory Compliancereporting)

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In the power generation space very few organizations around the world could harness the potential of integration of automation systems(operational technology - OT) with business applications (IT). Some of the key aspects of integration of OT and IT systems are:

- Efficient management of power plant operation and power market through integration of SCADA-ERP-GIS and other applications

- Efficient Asset Management, Supply Chain Optimization, Fuel Management, Environment Management, Engineering & Knowledge Management to improving the plant availability – generation costs are minimized while generation capability is maximized!

CHALLENGESCHALLENGES

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- Near real time view of “cost of generation” as well as “cost of plant availability losses”

- Increased visibility (beyond unit control rooms) of all plant and equipment distributed across the facility and improved operational control through automation to minimize man-megawatt ratio

- Creation and maintenance of a digital plant along with the physical plant right from concept to commissioning to O&M to life extension and plant retirement stages. The historical and real time data of all important equipment captured in the digital plant would facilitate evolution of condition based maintenance regime

- On-line monitoring and management of emissions, and other operational parameters for regulatory and statutory compliance

CHALLENGESCHALLENGES

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- There are numerous challenges in operating in an electronic market place (power exchange) where transactions are performed through IT applications. Real-time information sharing & coordination between the Plant Operator and the Market Operator is key to efficient plant operation. Systems must be in place to ensure that “all available plant capacity is scheduled for dispatch at maximum possible price; and scheduled capacity is dispatched in the agreed intervals to avoid unscheduled interchange (UI) charges/penalties”

- Fuel Management systems (information on fuel markets, optimization of fuel purchases, assessment and control on quality of fuels, elimination of fraud and errors in economic management, optimization of payment and computation process) can bring aboutsubstantial savings in generation cost

CHALLENGESCHALLENGES

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Level 0 Level 1 Level 2

Key aspects

All operational parameters are monitored

Real-time data flow required

Meeting operational objectives, PLF targets

Key aspects

Data Historian holds all data from DCS

Asset management software is used

Used for monitoring, optimizing & control

Key aspects

Maintenance

Generation billing

Production planning

Fuel management

Project monitoring

Level 3

C HP

Boiler

Turb ine

G eneration

Auxiliaries

S AP

•PM

•FIC O

•M M

•SD

•H R

Lotus Notes

Interface

Distributed

ControlS

ystems

O peration O ptim ization System D iagnostic C BM Perform ance A nalysis Em ission A nalysis & M onitoring Boiler Perform ance A nalysis Fuel M anagem ent

Key aspects

Key performance Indicators

Plant analytics

Business plan monitoring

Project monitoring

Business Intelligence

Corporate performance management

Dashboards and monitors

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AgendaAgenda

Industry market forces

Power Generation Optimization

Capabilities and delivery

Proof points

Why IBM

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IBMIBM’’s E&U Solution Portfolio addresses business and technology s E&U Solution Portfolio addresses business and technology needs across the full spectrum of the utilityneeds across the full spectrum of the utility

Power GenerationOptimization

(PGO)• Plant Operations

• Fleet Management

• Supply Expansion

Customer Operations

Transformation (COT)

• Customer Management

• Customer Care

• Customer Systems

Utilities NetworkRevitalization

(UNR)Enterprise Asset Management

• Mobile Workforce Management

• Asset Lifecycle Management

• Supply Chain Management

Del

iver

y O

ptio

ns

Shar

ed S

ervi

ces

Intelligent Utility Network (IUN)• Advanced Meter Management • Network Automation & Analytics

Solution Architecture for Energy (SAFE)

Communication Networks

Infrastructure: Servers, Storage, and Associated Services

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Power Generation Optimization

Supply Expansion

Plant Operations

Fleet Optimization

The Power The Power Generation Generation

Optimization Optimization solution is a suite solution is a suite of offerings that of offerings that

IBM has IBM has established to help established to help

Generation Generation companies solve companies solve their operations their operations

and development and development challenges challenges

associated with associated with electricity supplyelectricity supply

What is Power Generation Optimization?What is Power Generation Optimization?

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Power Generation Optimization Solution OverviewPower Generation Optimization Solution Overview

Generation Portfolio Planning

intelligent Plant Lifecycle Management

High Performance Computing

Knowledge Management for New Plants

Generation Virtualization

Enterprise Asset Management

Enterprise Information Management

Energy Value Chain Optimization

Wind Power Suite

GHG Emissions Management

Asset Performance Management

Information Management

Knowledge Management

Business intelligence & analysis

Security

Supply ExpansionFleet OptimizationPlant Operations

Power Generation Optimization

Solu

tion

Offe

rings

Dom

ain

Red offerings are applicable to nuclear

power generation

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Plant OperationsPlant Operations services help drive efficiencies and operational services help drive efficiencies and operational performance in existing plantsperformance in existing plants

Customer Focused Utility Enable plant management to answer the questions; How are we doing? Why? and What

should we be doing? - by visualization and integration of plant operations and business process information across the entire facility.

Business Intelligence Business Intelligence & Analysis& Analysis

Assess current ability to withstand internal and external security threats. Implement appropriate technologies and policies to provide cost effective and robust plant cyber security. Develop consistent and industry-proven standards and procedures to assure compliance. Stay ahead of the threat through continuous improvement of security.

SecuritySecurity

Address retiring workforce issues through a two-pronged approach to knowledge management. First, improve knowledge capture and enable automation of processes to decrease skill and experience level requirements and increase performance consistency. Second, apply human capital management techniques to increase employee retention, improve recruiting, and enhance learning and training.

Knowledge Knowledge ManagementManagement

Turn data and content into a strategic asset by overcoming typical information challenges such as complexity, multiple versions, incompleteness and inaccuracies, and out of context issues. Enables the transformation of data and content into integrated and trusted information.

Information Information ManagementManagement

Optimize the operation of plant assets through data monitoring, data storage and analysis, visualization, and integration into plant business processes. Enables the plant manager to ascend the asset management maturity curve and increase plant availability, efficiency, and reliability.

Asset Performance Asset Performance ManagementManagement

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Fleet OptimizationFleet Optimization services help provide best practices solutions services help provide best practices solutions across all plants and leverage economies of scaleacross all plants and leverage economies of scale

Customer Focused Utility

Develop more accurate measurements of GHG emissions across the fleet. Create defendable, science-based, and certifiable carbon credits for use in current and future carbon markets, using a scalable and consistent platform across all generation assets.

GHG Emissions GHG Emissions ManagementManagement

Turn data and content into a strategic asset by overcoming typical information challenges such as complexity, multiple versions, incompleteness and inaccuracies, and out of context issues. Enables the transformation of data and content into integrated and trusted information.

Enterprise Enterprise Information Information

ManagementManagement

Standardize asset management and utilization to best practices fleet-wide. Solution addresses the need for utility companies to optimize their investments and manage the lifecycles of all resources from a total enterprise perspective, including field force labor, assets, and supplies. The solution incorporates a foundation of intelligent technology and sound financial management.

Enterprise Asset Enterprise Asset Management Management

Integrate the monitoring, dispatch, control, and maintenance of your geographically and technologically disparate wind farms into a single control and monitoring suite. Enables optimized trading, forecasting, control, maintenance, monitoring, and operation of wind assets.

Wind Power SuiteWind Power Suite

Improve the operations of your entire generation fleet by applying advanced analytical financial tools to optimize decision making across the fuel purchase, electricity sales, and carbon trading markets.

Energy Value Chain Energy Value Chain OptimizationOptimization

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Supply ExpansionSupply Expansion services focus on fully leveraging information from the services focus on fully leveraging information from the building and construction of plants to enhance their lifecycle vbuilding and construction of plants to enhance their lifecycle valuealue

Customer Focused Utility

Apply intelligent long term plans and tradeoffs in fleet diversification to increase capital efficiency, manage risk, and meet regulatory requirements.

Generation Portfolio Generation Portfolio PlanningPlanning

“Virtualize” and aggregate distributed generation and demand response to provide utility scale value from small and distributed supply resources.

Generation Generation VirtualizationVirtualization

Increase business process automation and knowledge capture to develop new, minimally manned plant operation methodologies

Knowledge Knowledge Management for Management for

New PlantsNew Plants

Fully understand the complexities of nuclear, clean coal, and other advanced generation technologies through advanced simulation. Enhance the operation of plants with intuitive human-computer-interfaces for operations and maintenance.

High Performance High Performance ComputingComputing

Minimize risk in new plant design and construction through monitoring and managing to provide early identification of major issues to minimize risk. Assure that design and build information is seamlessly transferred to plant operations, affirming that complete and accurate information is available to plant business processes from the day of commissioning forward.

intelligentintelligent Plant Plant Lifecycle Lifecycle

ManagementManagement

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AgendaAgenda

Industry market forces

Power Generation Optimization

Capabilities and delivery

Proof points

Why IBM

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TheThe Power Generation Optimization Power Generation Optimization SolutionSolution brings together a brings together a unique set of capabilities required to realize business valueunique set of capabilities required to realize business value

Strategy

Power Generation Optimization

Plant Plant OperationsOperations

Supply Supply ExpansionExpansion

FleetFleetOptimizationOptimization

Integrated & Industry ISV’s

Application Management and Hosting

IT Infrastructure Operation and Management

Transformation Outsourcing

What do I do?What do I do?

Help me do it?Help me do it?

Do it for me?Do it for me?

Managed Services, Joint

Research Projects

Design, Execute, Manage

Strategy & Planning

IBM Technology

SOFTWARE• SAFE• Tivoli• Information

Management• WebSphere• Lotus

HARDWARE• Servers• Storage

Global Support Services(Center of Excellence for Nuclear Power, Solutions Labs, Thought Leadership)

IBM Research • IBM Global Financing • On Demand Innovation Services (ODIS) • Integrated Technology Services • Security

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The Power Generation Optimization solution architecture is basedThe Power Generation Optimization solution architecture is basedon the E&U Solution Architecture for Energy (SAFE)on the E&U Solution Architecture for Energy (SAFE)

Infra

stru

ctur

e Se

rvic

es

InteractionServices

PartnerInteraction

Business AppServices - Analytics

InformationServices - CIM

BusinessOptimization

Services

DevelopmentServices

AccessServices

SecurityServices

ProcessServices

ServiceManagement

Data Transport

Data Sources

SCADA MDM CIS WAMS GIS ERPFinance

Process Modeling & Workflow

CMS

Enterprise Service Bus

OMS TradingEMS EAM NetworkMonitor

Maximo

NetcoolInformation Management

Portal

ESBProcess Server

Expeditor

TIM/TAMConsul Information Server

Information Archiving

Modeler

Maximo

Information ManagementIntelligent MinerProcess Server

Maximo

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intelligentintelligent Plant Lifecycle Management (Plant Lifecycle Management (iiPLM)PLM)

What it isFor existing plantsSoftware/services to modernize plant data management and bring plant documentation up to as-built3D model navigation into asset and operational dataIntegrated, consistent data model for life extension analysis

For new plantsIntegration, standardization, and use of Design/Build data throughout the entire Design, Build, Operate, and Maintain (DBOM) cycle sold to both Engineering Procurement Construction (EPC) companies and owners/operators (utilities) to lower costs

Unique Value PointsFor existing plantsUse common data model to aggregate existing design/build data for use by operate and maintain functions

Enable maintenance/modification simulationStreamline re-licensing/uprating processEnable advanced operator modeling/visualization (via HPC)

For new plantsEnable “input once, use many times” capability for plant design data

Use common data model to manage data for DBOM functionsAvoid multiple data input/data inconsistency issuesStreamline licensing/siting issuesEnable efficient/cost effective consortium collaboration

Key Differentiators (Why IBM?)

The Bottom Line…

For existing plantsExtends and leverages IBM EAM/EDM capability in nuclear

generation (through Maximo and FileNet)Policy influence capability to affect re-license/uprate IT requirementsCreates data environment required for efficient simulation (drives HPC)

For new plantsBig solution play across entire value chain

Leverages a combination of PLM, EAM, and data management/integration capabilities – IBM strengthPolicy influence capability to affect requirements and standardsfor new plant licensing/reportingCapture PLM experience gained from other industries

Shipbuilding, aircraft industries have advanced substantially

For existing plantsExtend EAM construct forward into operations and backwards into re-design/modification cycles

For new plantsApply consistent, modern IT infrastructure/common data model across entire DBOM value chainDrives modern IT/Software systems into engineering-oriented process

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Equipment Supplier Perspective

ConceptDevelopment Design

Production & Testing Maintenance &

SupportRetirement &

Disposal

Product Lifecycle Management

Portfolio Planning

Sales &

Distribution

Customer

SupportEngineer to Order

Owner/Operator Main Perspective

Engineering, Procurement, Construction Perspective

Build the Asset

Manage the Asset

PLM

EAM

PLM

Asset Lifecycle Management

Life cycle of the asset

Initial

Design

Detailed

Engineering

Construction

& Start-up

Operations &

Maintenance

Requirements

SpecificationRetirement

Upgrade

projects

Operations &

Maintenance

Operations &

Maintenance

Revamping

projects

Engineering / Development0.5 – 2 years

Operations / Management20 – 30 – 60 years

iPLM Lifecycle View

Plant Modifications & Retrofits

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HPC for Nuclear PlantsHPC for Nuclear PlantsWhat it is

- Application of HPC for previously intractable/prohibitively expensive problemsOn-line, Real time, high fidelity simulation for operations, engineering, and safety/transient mitigationPlant equipment modification - simulation to shorten outages at existing plants (ties to iPLM)Life extension - material degradation analysisUp-rate analysis for existing plants

- Parallelized / optimized versions of industry standard codes- Integration with iPLM to automate model data input/data validation- Next generation nuclear plant design/analysis – GNEP, ITER

Unique Value Points- Huge computing/software capability enhancement since last nuclear boom

Re-think what is possible/feasiblePotential revolution in DBOM strategies based on computation capabilities now available

- Increasing asset utilization for existing plants

Why IBM?- Acknowledged global leader in HPC

Multiple levels of HPC capability- Linux cluster, System P cluster, Blue Gene

The Bottom Line…- Application of HPC to next generation reactor/plant design – GNEP, ITER- Use of HPC to drive practical real-time simulation for engineering/operations purposes- Porting of proven industry codes to new platforms that allow for extensively enhanced use

across nuclear generation value chain

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System Clusters

iiPLM Ecosystem with HPC IntegrationPLM Ecosystem with HPC Integration

Portfolio

StrategyEvaluateLicense Design Build Operate Maintain Modify Dispose

Design & Build (DB)

Owner/OperatorsEngineering Procurement, Construction Companies

Operate & Maintain (OM)

Collaborators

Lifecycle

DesignOperateModify

SOA Enterprise Service Bus – SAFE Architecture

Common DataModel

DesignBasis Data

3DModeling

CollaborationTools Visualization

LifeExtension

As-BuiltValidation/

Modification

KnowledgeManagement

CostEvaluation

LifecycleEconomics/

GNEP

Industry Codes

IBM HPC Tools

HPC

Parallelization

Nuclear Consortia – Design, Build, Operate, Maintain

iPLM

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Generation Asset ManagementGeneration Asset ManagementWhat it is

- Comprehensive, consistent, management of asset data, including procurement (supply chain), operations, maintenance, workflow, and documentation, throughout an asset’s total lifecycle.

Unique Value Points- Provide common platform for fleet-wide asset utilization/availability comparison – develop best practices- Enable Reliability Centered / Condition-Based Maintenance through remote asset monitoring- Improved maintenance and work management decision-making through more accurate, timely information and

fleet-wide best practices- Optimized supply chain processes, including procurement sourcing, inventory management, in order to

maximize plant availability, enhance cash flow, and reduce risk- Enhanced document and records management allows for streamlined maintenance and workflow, as well as

accurate and efficient compliance (Sarbanes – Oxley, EPA, NRC, PUC, FERC, etc.)- For companies that have grown through acquisition the ECM platform offers an opportunity to deploy best

practices and create common taxonomies, processes and procedures, and methods of doing business

Why IBM?- Maximo and FileNet

Maximo leading Enterprise Asset management solution for power generationFileNet has substantial market share in power generation, particularly nuclear, touching most operating departments (records management, regulatory affairs, legal, financial, operations, engineering, supply chain, etc.)

- Integration of these leading solutions with SAFE, IBM’s supply chain and PLM practices, and our business process transformation capability

The Bottom Line…- IBM now has two of the leading solutions for asset and document management for power generation worldwide- Opportunity to create market differentiation over competitors in this space through seamless integration of end-

to-end asset management solution for generation

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The Standard Nuclear Performance ModelThe Standard Nuclear Performance Model

The SNPM is the intellectual basis for Maximo Nuclear The SNPM was developed through a coordinated effort by Operating Companies, INPO, NEI, EPRI, and EUCG.Consolidates three critical dimensions to analyse plant performance:

Cost

(EUCG)

P erform anceIndicators

(IN P O /N E I)

P rocessD escrip tions(IN P O /N E I)

( ) Ind icates Lead IndustryO rgan ization

P = C ommon Po in t o fR eference

S tandard N uclear Perfo rm ance M ode l

P

Z

X

Y

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Knowledge ManagementKnowledge ManagementWhat it is

- Comprehensive human capital/information management approach- Content and records management – Information Lifecycle Management- Recruiting/labor force issues- Training/Knowledge transfer/Learning- SW tools to capture operational information and/or automate operations, maintenance- Social Networking skills/tools to increase the visibility and application of knowledge across the

organization

Unique Value Points- Combined HR/IT viewpoint to address all types of knowledge/information- Extensive experience supporting collaborative environments

Key Differentiators (Why IBM?)- Strong cross-industry IBM Practice area- Future of Learning project with INPO- Well-respected internal implementations of KM

The Bottom Line…- Integrated solution to address all aspects of knowledge management, including skills/heuristics

(humans), data, and unstructured information

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AgendaAgenda

Industry market forces

Power Generation Optimization

Capabilities and delivery

Proof points

Why IBM?

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DTE EnergyDTE EnergyUnlocking synergy and gains flexibility with common, integrated Unlocking synergy and gains flexibility with common, integrated business processesbusiness processes

Business challengeAs With the utility business becoming more competitive by the day, Midwestern energy giant DTE Energy needed to position itself for the future. Disparate systems and process fragmentation across nearly 200 different business units prevented the company from realizing all of the underlying synergies from acquisitions.

Solution

With the help of IBM, DTE Energy undertook a massive consolidation of its business systems, which made possible the complete redesign and standardization of its business processes across all business units. DTE Energy chose IBM’s Maximo Asset Management integrated with SAP, Advantex, ESRI, and Primavera. DTE Energy can now drive optimization efforts as an enterprise—not a collection of business units.

BenefitsProjected $75 million in annual operating cost savingsImproved decision-making through increased transparency across business unitsUnified access to inventory availability across all businessesElimination of mainframe and reduction of interfacesImproved ability to share and implement best practices across the enterpriseConsistent integration of acquired companies, enabling faster realization of

operational synergies

© 2007 IBM Corporation

Solution ComponentsSoftwareIBM WebSphereEnterprise Service BusIBM DB2IBM Maximo

ServersIBM System p

ServicesIBM Global Business Services

“Our goal was to establish a platform for DTE Energy to

thrive in a dynamic and challenging environment. We achieved our key objectives

of integration and modernized our technology. We think IBM products and

their integration were keys to our project’s success."

– Don Ron May, Senior Vice President, Major Enterprise

Projects, DTE Energy

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Solution•IBM Japan and IBM US performed an assessment of Ikata’s current asset management and work management processes. IBM also performed a of Ikata’s proposed solution for EAM and work management initiatives. The assessment and review provided the client with the required knowledge and data to assist in software selection and business requirements for process re-engineering, best business practices, performance measurement and data analysis capabilities. Recommendations were also provided for RCM strategies including a condition based monitoring and preventivemaintenanceBenefits•With the assistance of IBM, Shikoku’s Ikata Nuclear Station proceeded with a strategy that has allowed them to select and implement an EAM application and process that supports their business needs and continuing improvement process.

Type of Business:Shikoku Electric Power Company, Incorporated serves an area encompassing Tokushima, Kochi, Ehime and Kagawa prefectures on the island of Shikoku. It supplies 28.2 billion kilowatt hours of power annually to 2.88 million residential and industrial users. Its total sales of electric power, including sales to suppliers in other regions, are in excess of 35.1 billion kilowatt hours.Business Challenge•Shikoku’s Ikata Nuclear Station was preparing for the future license extensions for their three units. The task of providing documented evidence of the actual conditions of the units and its assets was challenged by the limited ability to research records that existed in hard copy documentation. Shikoku needed to find a software application that could support the information needed to access the plants condition and also support their future enterprise asset management system.

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Magic Quadrant for Power Generation Enterprise Asset Management Magic Quadrant for Power Generation Enterprise Asset Management SoftwareSoftware

8 September 2008© Gartner, Inc.Kristian SteenstrupPower GenerationD: G00160261

The Magic Quadrant is copyrighted 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from IBM.

Gartner has positioned IBM Enterprise Asset Management in the Gartner has positioned IBM Enterprise Asset Management in the Leaders Quadrant for 2008 Power Generation EAM SoftwareLeaders Quadrant for 2008 Power Generation EAM Software

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AgendaAgenda

Industry market forces

Power Generation Optimization

Capabilities and delivery

Proof points

Why IBM?

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What makes IBM different?What makes IBM different?

IBM is a company based on valuesDeep industry knowledge and specialization in Utility and Retail Energy practices for over 30 yearsCompleted many projects covering power generation for major utilities around the worldA solution architecture framework for Energy & Utilities which helps align business and IT strategiesThe breadth of IBM solutions cover hardware, software, and servicesGlobal strategic alliances with most leading ISVs and partnersIBM’s commitment to energy and the environment began in 1971

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1. Set goals and document integrated results from across your business

40%Between 1990 and 2006, IBM’s global energy conservation actions reduced or avoided CO2emissions equal to 44% of its 1990 emissions.

Further extend the above achievement by reducing CO2 emissions 12% between 2005 and 2012 based on conservation, use of renewable energy, and/or funding RECs

Charter Member 2002

CharterMember

2000

Charter member 2003

Since inception

2. Transparency in and verification of reporting

1605(b) voluntary emissions reporting

since 1995

Energy Efficiency Certificates (EEC)

3. Partnerships for improving environmental performanceFORTUNE 500Top 20 2004, 2005, 2006

The Climate Group2005

USEPAClimate Protection Award1998 and 2006

Green Power Purchaser

Award 2006Computer Program Charter

Member 1992

WRI Green Power MarketDevelopment Group

Charter member 2000Business Environmental

Leadership Council

Environmental responsibility is a core IBM valueEnvironmental responsibility is a core IBM value

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IBM is applying innovative information technology and services IBM is applying innovative information technology and services that really matter to businesses, governments, people, and the pthat really matter to businesses, governments, people, and the planetlanet

Intelligent Transportation SystemsMeasure & improve transportation usage

Reduce traffic congestionReduce CO2 emissionsIncrease mass transit usageReduce energy usageImprove environment

Intelligent Utility NetworksMeasure & improve energy mgmt

Improve efficiency usage, Reduce outagesImproved grid managementMange distributed energy

Energy Efficient Technologies & ServicesCreate & manage efficient IT

Active energy managementIT facilities infrastructure efficiencyIT operations efficiencyMonitoring and verification of efficiency goalsDemand-side efficiency

Carbon ManagementMeasure & reduce carbon emissions

Carbon Mgmt StrategyCarbon Mgmt IntelligenceSupply chain managementProperty, buildings, workplace

Advanced Water ManagementMeasure and manage water systems usage and quality with real-time knowledge

Weather event mgmt; flood managementReal-time monitoring and analytics for water usage and water quality

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