Smart Grid Maturity Model Assessment SGMM SAIEE Smart

Smart Grid Maturity Model Assessment (SGMM) SAIEE Smart Grids Conference 2016 Mr. Teslim Yusuf February 2016 SANEDI Smart Grids Programme

Smart Grid Maturity Model Assessment & Baseline Assessment § SGMM was developed by the Global Intelligent Utility Network Coalition (GIUNC) and APQC, the Software Engineering Institute (SEI) are the steward of the model § The Baseline Assessment is a locally developed tool developed by SANEDI Smart Grids Team and Dr. Willem de Beer for local municipalities with a much smaller customer base § Leverages on the principles of the SGMM § Considers the IDP (5 years plan), SDBIP (12 months Budget Implementation Plan) § Adopts standard value chain principle for consistency of evaluation

Determine your driver for change Lo car w Tra bon nsi tio n en En ity vir bil on m lia Re De Re man spo d nse p Ca y t aci t Re n Re ewab sou rce le s ng re i e Ag ructu st a r Inf rgy ces e En sour Re Operational Excellence Ageing Workforce Operational Efficiency Customer Satisfaction

The Smart Grid Maturity Model is A management tool that provides a common language and framework for defining key elements of smart grid transformation and helping utilities develop a programmatic approach and track their progress 4

Not just all talk The Smart Grid Maturity Model Assessment (SGMM) has been carried out in 9 Municipalities within South Africa. Municipality Type of SGMM Version City Power Johannesburg Standard Assessment Ethekwini Standard Assessment Mogale City Standard Assessment Msunduzi Standard Assessment Nelson Mandela Bay Standard Assessment Thabazimbi Locally Developed Govan Mbeki Locally Developed Nala Locally Developed Naledi Locally Developed

SGMM timeline 2007 2008 Global Intelligent Utility Network Coalition (GIUNC) develops GIUNC: SGMM Center. Point Energy Progress Energy DONG Energy North Delhi Power Ltd Country Energy Sempra Energy Pepco Holdings IBM APQC 2009 Utilities use SGMM v 1. 0 2011 v 1. 1 2012 v 1. 2 Software Engineering Institute serves as model steward SEI releases SGMM v 1. 1 product suite Licensing & certification program for SGMM Navigation begins SEI releases SGMM v 1. 2 product suite Developed by utilities for utilities 6

SGMM at a glance 6 Maturity Levels: Defined sets of characteristics and outcomes 5 4 3 175 Characteristics: Features you would expect to see at each stage of the smart grid journey 2 1 0 SMR OS GO WAM Strategy, Management, & Regulatory Organization & Structure Grid Operations Work & Asset Management TEC H CUS T Technology Customer VCI SE Value Chain Integration Societal & Environmental 8 Domains: Logical groupings of smart grid related characteristics 7

Smart Grid Maturity Model – levels PIONEERING OPTIMIZING INTEGRATING ENABLING INITIATING DEFAULT Breaking new ground; industry-leading innovation Optimizing smart grid to benefit entire organization; may reach beyond organization; increased automation Integrating smart grid deployments across the organization, realizing measurably improved performance Investing based on clear strategy, implementing first projects to enable smart grid (may be compartmentalized) Taking the first steps, exploring options, conducting experiments, developing smart grid vision Default level (status quo) 8

SMR Strategy, Mgmt & Regulatory Vision, planning, governance, stakeholder collaboration OS Organization and Structure Culture, structure, training, communications, knowledge mgmt CUST TECH Smart Grid Maturity Model – domains Reliability, efficiency, security, safety, observability, control Customer Pricing, customer participation & experience, advanced services Demand & supply management, leveraging market opportunities Societal & Environmental SE WAM Work & Asset Management Asset monitoring, tracking & maintenance, mobile workforce IT architecture, standards, infrastructure, integration, tools Value Chain Integration VCI GO Grid Operations Technology Responsibility, sustainability, critical infrastructure, efficiency 9

SGMM Navigation: five-phase, expert-led process Stakeholders complete SGMM Compass survey Discussion and consensus answers lead to internal alignment on current state Stakeholders review survey findings & set aspirational profile Consensus on aspirational state and identification of motivations, actions, and obstacles to achieve it 10

Compass results: maturity profile example results 3 2 2 SGMM maturity profile includes a maturity score for each domain 2 1 0 11

Example results Fictitious organization Strategy, Mgmt, & Regulatory Aspiration Setting Tool 5 – – 4 Aspiration 3 2 What motivates this aspiration? • What actions must happen to achieve this aspiration? • – – Current What obstacles must be overcome to achieve this aspiration? • 1 – – – 0 12

Navigation results: consensus aspirations example results This is where we aspire to be in X years 4 3 2 3 4 3 2 2 This is where we are today NOTE: There is no “correct” target profile implied in the model; the optimal profile will vary by utility. 3 2 2 2 1 0 13

Key findings § Internal Management and structure § Integrated value chain approach lacking § Revenue Management § Tariff redesign, cost reflective tariffs, customer segmentation § Asset Management practice § Maintenance and refurbishment, Life Cycle Asset management practice, workforce management § High non-technical losses § Electromechanical meters, calibration on CT’s, billing accuracy, customer information, fault detection, § Grid visibility and control § Advanced Metering Infrastructure, Control Centre/Back-office, Load limiting, DR § Project Management Units

Comprehensive Framework to guide the Smart Grid implementation in South Africa

Recommendations § Business Sustainability: Business units must be ring-fenced and detailed income and expenditure records must be kept. Municipalities must conduct network/grid studies perform cost of supply studies and thereafter align their tariff structures accordingly, through the approval mechanism § Customer: Participation and effective communication in general must be addressed and that technology deployment be leveraged to improve customer participation and the customer experience in interfacing with the utility § Methodology: Standardize the SGMM as an industry tool to benchmark and to drive investments. Use the SGMM as a motivation to initiate smart grid projects § Compliance and enforcement: NERSA, NT, Do. E, Co. GTA, must enforce compliance to established initiatives and regulation § Policy and Regulation: Policy and Regulation to drive change, efficiency use of energy, embedded generation, adopt the SGMM as a standard for motivating for investment and project initiation

Continued…. § Technical: Integrated demand response, load management and energy profile solutions must be investigated and implemented. Maintenance performance must be evaluated, measured and tracked to address root causes, hedge against plant failure, and improve electricity reliability, availability, and supply. § Technology: Municipalities must enable technology deployment by setting a smart grid vision and strategy prior to embarking on a smart grid journey. Technology should incorporate interoperability, upgradability, security, safety, cost and performance must form part of the evaluation and award criteria.

To select well among old things, is almost equal to inventing new ones. Nicholas Charles Trublet