Smart Grid Solutions, Services, and Business Models Focused on Telco
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1 Smart Grid Solutions, Services, and Business Models Focused on Telco April 23, 2010 Ph.D. Young-Woo Lee
2 Contents I. Introduction - Background, Definition, Architecture, Business Domain & Opportunities II. KT s R&D Results for Smart Grid - Smart Grid BM, Equipments, Solutions, Widgets, and Services III. Smart Grid Demonstration Project in Korea - KT s Role of Smart Place IV. Green IT Survey - Green IT awareness, Green activity at home and Green IT services V. Smart Grid Management - Telecomm Management vs. Smart Grid Management VI. Conclusions 2
3 I. Introduction 1. Energy Outlook The worldwide demand for electric power is swiftly increasing. Especially, anticipating that the increasing in Korea will be noticeable according to the advent of the digital era and the rise in national income. Worldwide US Energy Information Administration(EIA) Projects World Engergy Use to Grow 57% Between 2004 and 2030 OECD countries Grow 24%, non-oecd countries Grow 95% by 2030 Especially in non-oecd Asia, such as India and China where strong projected economic growth drives the increase in energy use Annual Growth in Electricity Generation by Region Korea Korea s Energy Consumption : 233 million TOE per year Ranked 10th in the World, 2.1% of World Energy Consumption (BP Statistics, 07) Energy Consumption Increase according to the rise of income and industrialization. Home electronic appliances, bigger and diverse Personal digital devices, the number increased : * Most of people In 20s holds 5 PD (Mobile Phone, PC, MP3, Printer, Digital Camera) Demand Prediction for Energy Consumption(~2030) Energy Consumption per man Total Energy Demand (million TOE) Source : EIA, International Energy Outlook Source : Korea Energy Economics Institute * TOE : Ton of Oil Equivalent * PD: Personal Device
4 I. Introduction 2. Background and Definition of Smart Grid Background The concept of fused Energy Internet appears for protection of the environment and improvement of energy efficiency. To fulfill it, Smart Grid draws the attention. IT (Information Technology) ET + Energy Internet (Energy Technology) Smart Grid for energy efficiency Definition Smart Grid is an next generation intelligent electricity network which optimize the energy efficiency to graft Information Communication Technology onto the existing network and exchange real time information between supplier and customer. Electricity Supplier Charge Decision Analysis for Demand Real-time Accounting Intelligent Power-grid Real-time Consuming Electricity Customer Customer s Equipment Automation Control Washing Automation Transport 4
5 I. Introduction 3. Existing Power-Grid vs. Smart Grid Smart Grid has the efficient operation by the automated grid management and real time management of electricity supply and demand to provide diverse services for customers Category Characteristic/Function As-Is To-Be Supply & Transmission of Electricity Network Estimation & Counter Measure for Electricity Network Error Optimization of Management for Facilities Efficiency Improvement for Operation Mainly focus on preventive measure for damage by network expansion Power failure/facility breakdown Operation data & assets management Integration Insufficiency Periodic equipment investment, Repair Automation Grid Focus on Prevention & Minimization of Customer Impact Automatic Sensing for Electric Power Network Error & Counter Measure Network Division, Automation Protection & Restoration Electricity Network Data Assets Management Linkage RCM/CBM based Investment System Equipment life span evaluation & Error Cancellation Intelligent Operation DC supply of electric power, DC Building All Acceptance of Power Supply & Storage Equipment Large power plant Dispersion energy linkage obstacle Acceptance of Power Objective Acceptance in form of PNP, VPP Electricity Power Quality for Digital Economics Power failure Low interest in Electricity Quality Providing of Price Choice Diverse Electricity Service DC Direct Supply Service Customer Participation No information for customer Not available for participation Customer Participation by information supply Demand Reaction New Product & Service Market Limited wholesale market Limited choice for customers Integrated Wholesale Market PHEV infra, V2G, Smart Home appliance Energy consulting, Home EMS service, HAN 5
6 I. Introduction 4. Layered Architecture of Smart Grid The value chain of Smart Grid is divided into 6 steps, Generation Transmission Substation Distribution Home/Building Distributed Generation and Storage, and it has 3-layer architecture as 1Power Infrastructure, 2Information Infrastructure, and 3Service Application Layer Data transport & Control Layer Physical Power Layer Source : GTM Research 6
7 I. Introduction 5. Business domain of Telco For Smart Grid, Telcos business domain where they use their existing ability are 1Communication Network, 2O&M System, and 3 Home/Building Service Electricity Deal Service New/Renewable Energy Sale Service Management & Control Service Value Added Bundle Service Inter-Industry Service Smart Grid New Services 2 3 Info. Infra Operations & Management System National wide Management Center Market Operation System Distributed Control System EMS Local area Management Center Transmission GIS System Substation Automation System Local area Management Center DR Info. System SCADA Distribution Automation System AMI Smart Grid Data Center RTP Customer Portal Customer Info. System Communication Network 1 Control Sensor Generation Sensor Remote Sensor 배전자동화시스템 Substation sensor Distribution sensor Smart Meter Micro Grid Power Infra Resource Generation Transmission Substation Distribution Home/Building EMS : Energy Management System DR : Demand Response SCADA : Supervisory Control And Data Acquisition AMI : Advanced Metering Infrastructure RTP : Real Time Pricing 7
8 I. Introduction 6. Business Opportunities of Telco For telco s business opportunity, there are three categories as follows. Especially, KT has interests and opportunities in home/building centered Last 1-mile service and Micro Grid management domain. I II Utility Management Domain focused on Heavy electricity Micro Grid Management Domain focused on Home/Building NMS (TMS, DMS) 3 Transmission Home/Building Smart Meter Digital Measure Data Collection System Back Office Legacy Apps Remote Messaging Micro Grid Mgmt System 4 1 HAN Control Centre Distribution Meter Data Mgmt System 2 5 Micro Grid Management Electricity Retail 6Sales Business Telco s Business Opportunities Smart Grid Management System Development Smart Grid Management System Operation Home/Building Measuring System Based on Smart Meter Smart Home Building and Operation Service Micro Grid Management System Building and Operation Electricity Retail Sales Business III New Business Development Domain based on Micro Grid Management Platform 7 8 Bundle Product Sales Business: Diverse Bundling Product Sales Management Business base on Customer Management SSC New Service Business: New Business Development for home/building in Micro Grid, based on Micro Grid Platform 7 8 Bundle Product Sales Business SCC(Shared Service Center) New Service Business 8
9 II. KT s R&D Results 1. BM & Components for Smart Green Service KT promoted the Smart Green Business development, which provides diverse services connecting Smart Grid and an internal device in Home/Building and receiving the customer's Utility Usage Information by Smart Green Center KT s Business Model Installation of the Smart Box/Tag to monitor and control Home/Building Utility Providing Utility saving/management services through 4 Screen Widget, collecting and analyzing Key Equipment/facility power usage including gas, heating, water, hot water and Usage data The business creating a variety of business partnerships with government, KEPCO and related industries based on the customers real-time Utility Usage data stored in SGC(Smart Green Center) Composition and Components kepco Collaboration Government Cooperation Internet Smart Box : Collecting Utility Usage data and transmitting to the SGC Widget : Monitoring informatio n and control service to custom ers through N-Screen Widget Alliance SGC : Creating and Providing service information analyzing and processing the utility usage data Industry Smart Tag : Transfer to Smart Box measuring Usage mounte d on the Utility 9
10 II. KT s R&D Results 2. Smart Box/Tag and SGC six months Quick-win Project was conducted last year for the acquisition and demonstration of key technologies to Smart Green business and developing the Smart Box / Tag prototype and SGC, Widget services Smart Box Home Gateway : A function to connect Customer's home network to broadband provider's network connections Communication : A function to connect Premise information devices and Smart Tag(Data collected from the Smart Tag) Automatic Meter Reading (AMR) : Metering and Remote Control feature of the Smart Tag Smart Tag SGC (Smart Green Center) Communication : Individual unit for transmitting information and controlling electric device(supports high-speed Ethernet communication as well as high-speed PLC Communication) Metering : Individual devices connected to the Smart Tag Measuring power consumption Measuring power consumption of Control : Individual devices connected to the Smart Tag for Power Supply Control Acquisition of real time Utility Usage data through Smart Box Analyzing and processing the collected data to generate and offer information for billing /Smart Green services Calculating the amount of Utility Carbon emissions by unit 10
11 II. KT s R&D Results 3. Smart Green Widget Service Through green service application on N-Screen Widgets implemented in SoIP terminal, iphone and PC, monitoring home energy usage and controlling electricity devices are available. Widgets Energy usage monitoring/control through video Internet phone Providing various home energy management service including real-time electricity usage fee Providing current/ accumulated electricity usage, carbon emissions and etc. SoIP phone structure and Widget operations OS : Embedded Linux Application F/W : Mizi (Windriver) Prizm Widget Engine - based on Flash Lite - Version management, Download management - Interworking server data - Providing API and management of Widget MMI Weather 날씨 Widget News Widget 뉴스 Widget Smart Green Widget Widget Engine Prizm(App F/W) SoIP Phone App (Voice) Embedded Linux App (Media) drv, m/w DD(Dynamic Delivery Server) : handling dynamically variable contents SD(Static Delivery Server) : handling statically variable contents(roles of image server and Widget program repository) DCD(Dynamic Content Delivery) : processing business logics of the platform DD SD Widget Service Platform DCD DCD (B/L처리) BSS, OSS Contents 연동 I/F Management 관리외부CP * SoIP(Service over IP) phone : High performance Internet phone developed by KT, providing video communication, Internet access, and etc. 11
12 II. KT s R&D Results 4. Smart Green Services KT is planning and developing various types of Smart Green Service BM targeting home/building customers mainly. Home Energy Usage Alarm Service - providing total and/or individual household electricity usage in real-time - forecasting monthly/yearly electricity usage and alarming accumulated electricity usage fee - providing carbon emissions converted from electricity usage Standby Power on/off Service - functions using Smart Box/Tag and IT system Remote/Automatic Control Service of Home Utility - functions using mobile terminals including iphone Energy Saving Helper Service - providing consulting information for energy saving in home Telematics Services and Integrated e-billing Service Marketing operations Service based on the Information of Smart Green Customer Green Mileage Service - giving mileage/points to smart green service subscriber who makes energy saving Building Utility Remote Control Service - Remote monitoring/control about power utilities of building/company, emergency mobilization and consulting service Peak Power Alarming and Load Balancing Service 12
13 III. Smart Grid Demonstration Project Smart Place KT has been joining in Jeju Island to build a Smart Grid infrastructure as a test bed to demonstrate various concepts and to have a pre-field test since December KT has a plan to prove an integrated home/building/factory energy management service and to improve energy usage efficiency by utilizing renewable energy and energy restoration media in Smart Place area and Smart Transportation one. Jeju Island Smart Grid Project The first smart grid test bed in the world - real site, the biggest collection of applications of Smart Grid Large-scale project of 5 areas - Smart {Place, Transportation, Renewable, Electricity Service, Power Grid} - Smart Place : 4 consortiums joined over 100 companies Aims - To validate the Smart Grid technology and BM - To provide ways for economical power usage together - To ease customers power usages - to enhance competitive advantages of Korean industries Public Relations Office Main Grid WCDMA Total Operating Center 3G KT Control Center FTTH IP Premium WiBro Customer Care Technical Support Center Center Smart Factory (2 factories) Smart Meter FEMS Smart Control Panel FEMS : Factory Energy Management System 13 Smart Home (400 Household) Smart Meter Smart Appliance Smart Box/Tag N-Screen Smart Home (552 household) Smart Meter Smart Appliance Smart Box/Tag 4-Screen Renewable Energy Generation/Storage Electric Car Charging Smart Town (48 household/6 town) Smart Meter Smart Box(town) Renewable Energy Storage Electric Car Charger Smart Building (3 buildings) Smart Meter BEMS Smart Control Panel Recharger BEMS : Building Energy Management System
14 IV. Green IT Survey 1. Green IT awareness 72% of customers know the green IT, and they expect that green IT services like smart grid service*, video conference can help to reduce energy and money. Green IT awareness Customer expectation of green IT Most of customers know the green IT and they realize the importance of the green IT for green economy % of customers know or heard green IT, 75.1% of customers answered that green IT is important to green economy. Green IT awareness Know(23.3%) Customers expect that green IT services can help to reduce their energy consumption and money. Also, customers think the companies have to introduce the services that can reduce energy consumption. About green service Know well (7.8%) [ Willingness to use ] Don t know (27.8%) Heard once or twice (41.1%) Smart grid service Integrated online bill of utility Green mileage telemedicine 56.2% 78.7% 78.7% 74.9% Not important 5.8% The importance of the green IT for green economy Don t know 19.0% important 48.3% 70% Very important 26.8% Virtual PC Green Office Video conference [ necessity ] 52.9% 87.3% 76.8% Telecommuting 67.6% * Smart grid : the service that can monitor the usage of electricity and optimize consumption 14
15 IV. Green IT Survey 2. Green activity at home and Green IT services Customers prefer green mileage and smart grid services. 26.5% of customers are willing to pay for green IT services. Green activity at home and green IT services Most of customers can t practice energy saving activities, so they prefer the services that can help them like green mileage, smart grid. Customers are willing to pay for green IT services. The more they have high incomes, the more they are willing to pay. Green activity at home [ Green activity at home] [ The reason why customers do nothing for energy saving at home] Willingness to pay for green IT services [ Service preference ] 28.3% 27.3% 23.2% High Expectation low Separate the recyclable waste Activity for energy saving To buy high efficiency appliances To manage appliances life cycle Do 71.4% 69.2% 38.4% 16% Don t do 28.6% 30.8% 61.6% 84% et cetera (2.6%) Too busy (21.1%) Irk, tiresome (76.3%) Green mileage 26.5% Smart grid [ willingness to pay] 17.4% One online bill of utility 21.2% 15.6% telemed icine 30.2% 5.7% Virtual PC 38.5% Income (won) total ~2million ~3million~5million 6million 15
16 V. Smart Grid Management 1. Customization and Adaptation If Teclo s inherent competence of the experience and the knowhow about developing management technologies and operating management systems is customized and adapted in constructing Smart Grid O&M System,TIME and COST will be reduced more efficiently. Operations & Management System of Smart Grid Info. Infra Power Infra Service Operation & Management System Communi- cation Network Control Sensor Resource 전력거래서비스 전국전력망센터지역전력망센터지역전력망센터 Smart Grid Data Center 전력거래시스템 발전제어시스템 신재생에너지판매서비스 EMS 홈 / 기업전국관리 / 제어서비스 송변전지리정보시스템 변전자동화시스템 SCADA 부가서비스별 Bundle 서비스 DR 배전정보시스템 배전자동화시스템 이종산업제휴서비스 AMI Smart Grid New Services RTP Customer Portal 고객정보시스템 대규모발전에너지수집원거리감시 sensor 변전자동화배전자동화시스템 sensor 배전자동화 sensor Smart Meter Micro Grid 발전 송전 변전 배전 수용가 Telecomm O&M System Customization and Adaptation Business Operations of Integrated Utility Network Operations and Management Network Configuration and Control Communication Data Gathering, Local Control and Automation Smart Greed Needs Necessary Technologies Monitoring and Control of NEs System Interworking Platform Construction and Operations Real-time Data Processing 16
17 V. Smart Grid Management 2. Telecomm Management vs. Smart Grid one The management layer of Smart Grid has a similar architecture with the standard recommendations of telecommunication management layer, and so there is no problem to adapt it to Smart Grid cases including customization of Smart Grid needs. Telecommunication Management Layer Description Management Layer(ITU-T) Smart Grid Framework(EPRI) Smart Grid Management Layer Elements Description ICT Services BMS SMS OSI 7 Layer 7. Application 6. Presentation 5. Session Business Services Management Business Application Data Integration Power Services Distribution Control Power Market Operation SCADA, AMI Power services to customers Local or national wide management center Energy/Elements management systems NMS 4. Transportation 3. Network Network Management Communication Infra Communication Network Communication network for O&M EMS Network Elements 2. Data Link 1. Physical Element Management Element Control Sensor Power Infra Metering Transmission/ Substation Sensor Generation Transmission Substation Distribution Sensors for gathering datas Physical elements EPRI : Electric Power Research Institute, ICIS : Information Customer Integrated System, 17
18 IV. Conclusions Smart Grid - Next generation intelligent electricity network : IT + ET - Business domains of Telco : Communication Network, O&M System, Home/Building(last-1 mile) KT s Activities for Smart Grid - Smart Grid solutions : management systems, applications, widgets, Smart Box, Smart Tag - Service/Business Model : focused on last-1 mile for creating new business models - Smart Grid Demonstration Project in Jeju : Smart Place, Smart Transportation Smart Grid Management - not new any more : ICT Management Experience/Knowhow + Smart Grid Needs 18
19 Q & A Thank You. 19
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