The Future of Digital Integration
The Future of Digital Integration OATI Survey Results ©2016 OATI, Inc. All rights reserved.
We know the electric grid of the future will require greater levels of information and transaction management to improve the reliability, efficiency, and economics of system operations. Which is why, in Spring 2016, OATI conducted a survey to try to gain a better understanding of how these changes were effecting business development planning for our electric and utility partners. Survey participants shared their insights by responding to questions that covered topics such as distributed generation, grid optimization, and bridging the gaps between retail and wholesale operations. From small cooperatives to large entities, they represent the many sectors that comprise our diverse industry landscape. We know you want to see what they had to say, but before we get to that let’s get to know our participants...
www.oati.com | ©2016 OATI, Inc. All rights reserved.
2
Participant Snapshot In What U.S. Region Is Your Utility Located?
www.oati.com | ©2016 OATI, Inc. All rights reserved.
3
Participant Snapshot Your Functional Areas of Expertise Is/Are:
32%
12% Customer Service
19.5% Information Technology
www.oati.com | ©2016 OATI, Inc. All rights reserved.
Engineering
2.5% Maintenance
29% Operations
5% Other
4
Participant Snapshot How Many Residential Electric Customers Do You Have?
How Many Substations Do You Have? 24%
38 % 10 %
19%
Up to 50 Transformers
24 % 14 %
More Than 1 Million
9.5% 250,000 to 500,000
100,000 to 250,000
Up To 500
www.oati.com | ©2016 OATI, Inc. All rights reserved.
50,001 to 100,000
5%
10,001 to 25,000
5% No Comment
9.5%
25,001 to 50,000
14% 14%
51-100 Transformers
101-500 Transformers
501-1,000 Transformers
14% No Comment
5
Participant Snapshot How Many Commercial and Industrial Electric Customers Do You Have?
14%
No Comment
20%
Up To 500
500 to 1,000
9.5%
1,001 to 5,000
9.5% 14%
10,001 to 25,000
25,001 to 50,000
www.oati.com | ©2016 OATI, Inc. All rights reserved.
4.5%
50,001 to 100,000
9.5%
100,001 to 250,000
9.5%
More Than 1 Million
9.5% 6
Across North America, utilities are facing a variety of new challenges brought about by the expanded role of demandside and Distributed Energy Resources (DERs), including increasing levels of variable generation, declining demand due to energy efficiency, and a rapidly expanding portfolio of distributed solar generation. Understandably, Demand Response (DR) and DER integration topped the list of applications that are being prioritized for grid modernization initiatives. In fact, over 50 percent of respondents highlighted one or both of these items as important Smart Grid priorities for their organization.
To learn how OATI is helping utilities create a smarter, more distributed grid with our suite of Smart Grid software solutions, visit oati.com/SmartGrid.
What Are the Most Important Smart Grid Application Priorities for Your Utility?* Distributed Energy Resource (DER) Integration
19% 16%
Demand Response (DR)
9.5%
Distribution Grid Operational Optimization
9.5%
Conservation and Dispatchable Voltage Reduction (CVR/DVR)
8%
Distribution Reliability Management
8%
Energy Storage
8%
Meter Data Management (MDM)
8%
Data Analytics
6% 5% 3%
*Respondents were allowed to select up to three categories. Percentages are based on the total number of responses received for each category.
www.oati.com | ©2016 OATI, Inc. All rights reserved.
Renewable Energy Optimization, Integration and Operation Advanced Metering Infrastructure (AMI)/ Automatic Meter Reading (AMR) Advanced Services (e.g., Prepay, Time of Use (TOU), Real-Time Pricing, and Dynamic Pricing) 7
What Are the Most Important Benefits of Implementing Smart Grid Technologies?* 15%
Peak Load Shaving Customer Choice, Engagement, and Retention
13%
Increased Grid Resiliency/Fewer Forced Outages and Blackouts
13%
Increase Visibility and Control of Assets
8%
Reduction in Restoration Time
8%
Energy Efficiency
6%
Ensuring Future Energy Demand is Met
6%
Analytics-Based Decision Making
6%
Improved Power Quality
6%
Increased Security
6%
www.oati.com | ©2016 OATI, Inc. All rights reserved.
In addition, respondents are very much in tune with the growing demand from consumers to have more control in how they consume energy. With grid modernization initiatives, they hope to better engage and retain their valued customers. In fact, 38 percent chose customer choice, engagement, and retention as an important benefit they hope to realize through Smart Grid implementation.
10%
Increased Integration of Distributed Generation and Storage
Environmental/Green House Gas (GHG) Reductions
Through the implementation of Smart Grid technologies, 41 percent of respondents are hoping to benefit from the resiliency of the grid infrastructure and the ability to shave load during peak periods, ensuring they experience fewer forced outages and blackouts.
Click to Tweet Utilities believe increased #grid resiliency is one of the most important benefits of Smart Grid implementation: http://bit.ly/2dCS5nq
3% 8
*Respondents were allowed to select up to three categories. Percentages are based on the total number of responses received for each category.
The majority of our respondents reported cost, technology capabilities, and the lack of a business model as their top concerns for grid modernization. Lucky for them, OATI has vast experience in these areas and we’re proving it by building our own microgrid into our new OATI Microgrid Technology Center infrastructure.
What Are Your Top Concerns for Implementing a Smart Grid?*
22%
Technology Maturity, Availability, and Upgradability
22%
Business Model
16%
Budget Limitations/ Cost Justification
11%
Cybersecurity
11%
Lack of Interoperability Standards
7%
Lack of Skilled Employees
Click to Tweet Cost, technology capabilities, and the lack of a business model top the list of grid modernization concerns: http://bit.ly/2dCS5nq
*Respondents were allowed to select up to three categories. Percentages are based on the total number of responses received for each category.
5.5%
Unknown Customer Adoption
www.oati.com | ©2016 OATI, Inc. All rights reserved.
5.5%
Regulatory Approval
9
What Systems Do You Plan to Implement/ Are Implementing on Your Development
When asked about their future development plans, survey participants indicated that they are prioritizing solutions with data analytics, renewable integration, and DR dispatch capabilities.
Plan for the Next Three Years?*
Systems for Future Development
13%
11%
1
Grid Optimization/Distribution Automation
2
Data Analytics
3
DR Dispatch
4
Centralized Renewable Integration (e.g., Community Solar, Wind Farms)
5
Customer Systems Integration (e.g., MDM, Customer Information System (CIS), Billing)
6
Distributed Generation Integration (e.g., Rooftop Solar Photovoltaic)
8.5%
7
Utility Systems Integration (e.g., Supervisory Control and Data Acquisition (SCADA)/Energy Management System (EMS), Distribution Management Systems
6.5%
(DMS), Outage Management System (OMS), Geographic Information System (GIS))
5.5% 4%
3.5%
8
DMS
9
MDM
10
Customer-Owned Microgrid Integration
11
Smart Meters
12
Distributed Energy Resource Management System (DERMS)
2%
13
Security and Critical Infrastructure
14
Protection (CIP) GIS
1
2
3
4
5
6
7
8
9
www.oati.com | ©2016 OATI, Inc. All rights reserved.
15
10 11 12 13 14 15 16 17
Broadband Communications Customer Access
10
16
AMI Networks (FAN/NAN Networks)
17
Wide Area (Communications) Network
*Respondents were allowed to select as many categories as were applicable. Percentages are based on the total number of responses received for each category.
Over 67 percent of our survey respondents hope to improve reliability by implementing distribution grid modernization. In addition, energy savings, increased visibility, and greater voltage/reactive power control are all benefits respondents hope to realize through their Smart Grid initiatives.
Click to Tweet A majority of utilities hope to increase #reliability through #grid modernization initiatives: http://bit.ly/2dCS5nq
What Are the Most Important Benefits You Expect to Realize by Implementing Distribution Grid Optimization?*
Greater Voltage and Reactive Power Control
13%
Energy Savings
13%
Increasing Visibility of the Grid Through Additional Sensors
13%
Cut Costs/Increase Revenue
8%
New Market Participation
8%
Increasing Security/Reducing Vulnerability
8%
Reducing Widespread Outages Improving Power Quality Fault Location Algorithms Improving Public and Worker Safety
*Respondents were allowed to select up to three categories. Percentages are based on the total number of responses received for each category.
23%
Improving Reliability
www.oati.com | ©2016 OATI, Inc. All rights reserved.
6% 5% 3% 2%
11
What Do You See as the Top Obstacles to Bridging the Gaps Between Retail and Wholesale Market Operations?*
Integrating and Managing Distributed Energy Resources
27%
Structure of Energy Tariffs for Grid Services
13%
Successfully Enrolling Customers
12%
Response-Times of Demand Response Assets Dynamic Retail Rates Cyber Security of Connecting to Grid-Edge Devices Regulatory Approval
www.oati.com | ©2016 OATI, Inc. All rights reserved.
Secondary concerns like enrolling customers, dynamic retail rates, and structure of energy tariffs round off the list of the top obstacles these entities will have to overcome for successful grid modernization initiatives.
13%
Using Customer-Side Load in the Resource Portfolio
Since DR and DER integration topped the list of Smart Grid application priorities, it’s no surprise that the ability to integrate and manage DERs was overwhelmingly the top concern of our survey respondents when bridging the gaps between retail and wholesale market operations.
Let OATI help you bridge the gap between retail and wholesale market operations. Visit oati.com/webDistribute to learn how you can take control of your DR and DERs.
10% 10% 8% 7%
12
*Respondents were allowed to select up to three categories. Percentages are based on the total number of responses received for each category.
As utilities face a variety of new challenges brought about by the expanded role of demand-side assets and DERs, it is important they have the right solutions in place to make their grid modernization initiatives a reality. OATI webSmartEnergy provides these solutions through a suite of applications that include: • OATI webDistribute — Distributed-resource and demand-side management • OATI webMeter — Meter data management • OATI webDispatch — Coordinated optimal dispatch of conventional and distributed variable energy resources, trades, and energy storage resources • OATI webSmartView — Customer-engagement portal for web and mobile • OATI webDMS — Distribution grid management • OATI webIntegrate — Data integration for enterprise and legacy systems • OATI GridControl — Connects the industry’s most stringent cyber-security measures, distributed processing, and plug-and-play functions to connect demand-side resources to grid operations and bulk power markets • OATI GridMind — Microgrid control and optimization platform OATI provides innovative solutions that simplify, streamline, and empower the operational tasks required in today’s energy commerce. Our applications are used by more than 95 percent of North American reliability organizations, making OATI one of the most trusted names in the energy arena. As the leading provider of Smart Grid, Energy Trading, Risk Management, Transmission Scheduling, Congestion Management, and Market Management products and services, we have the solutions you need to keep your business running smoothly. Supporting all of these are OATI’s state-of-the-art, North America Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP)-compliant Data Centers. To learn more about our products and services, visit oati.com/SmartGrid. www.oati.com | ©2016 OATI, Inc. All rights reserved.
13
We know the electric grid of the future will require greater levels of information and transaction management to improve the reliability, efficiency, and economics of system operations. Which is why, in Spring 2016, OATI conducted a survey to try to gain a better understanding of how these changes were effecting business development planning for our electric and utility partners. Survey participants shared their insights by responding to questions that covered topics such as distributed generation, grid optimization, and bridging the gaps between retail and wholesale operations. From small cooperatives to large entities, they represent the many sectors that comprise our diverse industry landscape. We know you want to see what they had to say, but before we get to that let’s get to know our participants...
www.oati.com | ©2016 OATI, Inc. All rights reserved.
2
Participant Snapshot In What U.S. Region Is Your Utility Located?
www.oati.com | ©2016 OATI, Inc. All rights reserved.
3
Participant Snapshot Your Functional Areas of Expertise Is/Are:
32%
12% Customer Service
19.5% Information Technology
www.oati.com | ©2016 OATI, Inc. All rights reserved.
Engineering
2.5% Maintenance
29% Operations
5% Other
4
Participant Snapshot How Many Residential Electric Customers Do You Have?
How Many Substations Do You Have? 24%
38 % 10 %
19%
Up to 50 Transformers
24 % 14 %
More Than 1 Million
9.5% 250,000 to 500,000
100,000 to 250,000
Up To 500
www.oati.com | ©2016 OATI, Inc. All rights reserved.
50,001 to 100,000
5%
10,001 to 25,000
5% No Comment
9.5%
25,001 to 50,000
14% 14%
51-100 Transformers
101-500 Transformers
501-1,000 Transformers
14% No Comment
5
Participant Snapshot How Many Commercial and Industrial Electric Customers Do You Have?
14%
No Comment
20%
Up To 500
500 to 1,000
9.5%
1,001 to 5,000
9.5% 14%
10,001 to 25,000
25,001 to 50,000
www.oati.com | ©2016 OATI, Inc. All rights reserved.
4.5%
50,001 to 100,000
9.5%
100,001 to 250,000
9.5%
More Than 1 Million
9.5% 6
Across North America, utilities are facing a variety of new challenges brought about by the expanded role of demandside and Distributed Energy Resources (DERs), including increasing levels of variable generation, declining demand due to energy efficiency, and a rapidly expanding portfolio of distributed solar generation. Understandably, Demand Response (DR) and DER integration topped the list of applications that are being prioritized for grid modernization initiatives. In fact, over 50 percent of respondents highlighted one or both of these items as important Smart Grid priorities for their organization.
To learn how OATI is helping utilities create a smarter, more distributed grid with our suite of Smart Grid software solutions, visit oati.com/SmartGrid.
What Are the Most Important Smart Grid Application Priorities for Your Utility?* Distributed Energy Resource (DER) Integration
19% 16%
Demand Response (DR)
9.5%
Distribution Grid Operational Optimization
9.5%
Conservation and Dispatchable Voltage Reduction (CVR/DVR)
8%
Distribution Reliability Management
8%
Energy Storage
8%
Meter Data Management (MDM)
8%
Data Analytics
6% 5% 3%
*Respondents were allowed to select up to three categories. Percentages are based on the total number of responses received for each category.
www.oati.com | ©2016 OATI, Inc. All rights reserved.
Renewable Energy Optimization, Integration and Operation Advanced Metering Infrastructure (AMI)/ Automatic Meter Reading (AMR) Advanced Services (e.g., Prepay, Time of Use (TOU), Real-Time Pricing, and Dynamic Pricing) 7
What Are the Most Important Benefits of Implementing Smart Grid Technologies?* 15%
Peak Load Shaving Customer Choice, Engagement, and Retention
13%
Increased Grid Resiliency/Fewer Forced Outages and Blackouts
13%
Increase Visibility and Control of Assets
8%
Reduction in Restoration Time
8%
Energy Efficiency
6%
Ensuring Future Energy Demand is Met
6%
Analytics-Based Decision Making
6%
Improved Power Quality
6%
Increased Security
6%
www.oati.com | ©2016 OATI, Inc. All rights reserved.
In addition, respondents are very much in tune with the growing demand from consumers to have more control in how they consume energy. With grid modernization initiatives, they hope to better engage and retain their valued customers. In fact, 38 percent chose customer choice, engagement, and retention as an important benefit they hope to realize through Smart Grid implementation.
10%
Increased Integration of Distributed Generation and Storage
Environmental/Green House Gas (GHG) Reductions
Through the implementation of Smart Grid technologies, 41 percent of respondents are hoping to benefit from the resiliency of the grid infrastructure and the ability to shave load during peak periods, ensuring they experience fewer forced outages and blackouts.
Click to Tweet Utilities believe increased #grid resiliency is one of the most important benefits of Smart Grid implementation: http://bit.ly/2dCS5nq
3% 8
*Respondents were allowed to select up to three categories. Percentages are based on the total number of responses received for each category.
The majority of our respondents reported cost, technology capabilities, and the lack of a business model as their top concerns for grid modernization. Lucky for them, OATI has vast experience in these areas and we’re proving it by building our own microgrid into our new OATI Microgrid Technology Center infrastructure.
What Are Your Top Concerns for Implementing a Smart Grid?*
22%
Technology Maturity, Availability, and Upgradability
22%
Business Model
16%
Budget Limitations/ Cost Justification
11%
Cybersecurity
11%
Lack of Interoperability Standards
7%
Lack of Skilled Employees
Click to Tweet Cost, technology capabilities, and the lack of a business model top the list of grid modernization concerns: http://bit.ly/2dCS5nq
*Respondents were allowed to select up to three categories. Percentages are based on the total number of responses received for each category.
5.5%
Unknown Customer Adoption
www.oati.com | ©2016 OATI, Inc. All rights reserved.
5.5%
Regulatory Approval
9
What Systems Do You Plan to Implement/ Are Implementing on Your Development
When asked about their future development plans, survey participants indicated that they are prioritizing solutions with data analytics, renewable integration, and DR dispatch capabilities.
Plan for the Next Three Years?*
Systems for Future Development
13%
11%
1
Grid Optimization/Distribution Automation
2
Data Analytics
3
DR Dispatch
4
Centralized Renewable Integration (e.g., Community Solar, Wind Farms)
5
Customer Systems Integration (e.g., MDM, Customer Information System (CIS), Billing)
6
Distributed Generation Integration (e.g., Rooftop Solar Photovoltaic)
8.5%
7
Utility Systems Integration (e.g., Supervisory Control and Data Acquisition (SCADA)/Energy Management System (EMS), Distribution Management Systems
6.5%
(DMS), Outage Management System (OMS), Geographic Information System (GIS))
5.5% 4%
3.5%
8
DMS
9
MDM
10
Customer-Owned Microgrid Integration
11
Smart Meters
12
Distributed Energy Resource Management System (DERMS)
2%
13
Security and Critical Infrastructure
14
Protection (CIP) GIS
1
2
3
4
5
6
7
8
9
www.oati.com | ©2016 OATI, Inc. All rights reserved.
15
10 11 12 13 14 15 16 17
Broadband Communications Customer Access
10
16
AMI Networks (FAN/NAN Networks)
17
Wide Area (Communications) Network
*Respondents were allowed to select as many categories as were applicable. Percentages are based on the total number of responses received for each category.
Over 67 percent of our survey respondents hope to improve reliability by implementing distribution grid modernization. In addition, energy savings, increased visibility, and greater voltage/reactive power control are all benefits respondents hope to realize through their Smart Grid initiatives.
Click to Tweet A majority of utilities hope to increase #reliability through #grid modernization initiatives: http://bit.ly/2dCS5nq
What Are the Most Important Benefits You Expect to Realize by Implementing Distribution Grid Optimization?*
Greater Voltage and Reactive Power Control
13%
Energy Savings
13%
Increasing Visibility of the Grid Through Additional Sensors
13%
Cut Costs/Increase Revenue
8%
New Market Participation
8%
Increasing Security/Reducing Vulnerability
8%
Reducing Widespread Outages Improving Power Quality Fault Location Algorithms Improving Public and Worker Safety
*Respondents were allowed to select up to three categories. Percentages are based on the total number of responses received for each category.
23%
Improving Reliability
www.oati.com | ©2016 OATI, Inc. All rights reserved.
6% 5% 3% 2%
11
What Do You See as the Top Obstacles to Bridging the Gaps Between Retail and Wholesale Market Operations?*
Integrating and Managing Distributed Energy Resources
27%
Structure of Energy Tariffs for Grid Services
13%
Successfully Enrolling Customers
12%
Response-Times of Demand Response Assets Dynamic Retail Rates Cyber Security of Connecting to Grid-Edge Devices Regulatory Approval
www.oati.com | ©2016 OATI, Inc. All rights reserved.
Secondary concerns like enrolling customers, dynamic retail rates, and structure of energy tariffs round off the list of the top obstacles these entities will have to overcome for successful grid modernization initiatives.
13%
Using Customer-Side Load in the Resource Portfolio
Since DR and DER integration topped the list of Smart Grid application priorities, it’s no surprise that the ability to integrate and manage DERs was overwhelmingly the top concern of our survey respondents when bridging the gaps between retail and wholesale market operations.
Let OATI help you bridge the gap between retail and wholesale market operations. Visit oati.com/webDistribute to learn how you can take control of your DR and DERs.
10% 10% 8% 7%
12
*Respondents were allowed to select up to three categories. Percentages are based on the total number of responses received for each category.
As utilities face a variety of new challenges brought about by the expanded role of demand-side assets and DERs, it is important they have the right solutions in place to make their grid modernization initiatives a reality. OATI webSmartEnergy provides these solutions through a suite of applications that include: • OATI webDistribute — Distributed-resource and demand-side management • OATI webMeter — Meter data management • OATI webDispatch — Coordinated optimal dispatch of conventional and distributed variable energy resources, trades, and energy storage resources • OATI webSmartView — Customer-engagement portal for web and mobile • OATI webDMS — Distribution grid management • OATI webIntegrate — Data integration for enterprise and legacy systems • OATI GridControl — Connects the industry’s most stringent cyber-security measures, distributed processing, and plug-and-play functions to connect demand-side resources to grid operations and bulk power markets • OATI GridMind — Microgrid control and optimization platform OATI provides innovative solutions that simplify, streamline, and empower the operational tasks required in today’s energy commerce. Our applications are used by more than 95 percent of North American reliability organizations, making OATI one of the most trusted names in the energy arena. As the leading provider of Smart Grid, Energy Trading, Risk Management, Transmission Scheduling, Congestion Management, and Market Management products and services, we have the solutions you need to keep your business running smoothly. Supporting all of these are OATI’s state-of-the-art, North America Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP)-compliant Data Centers. To learn more about our products and services, visit oati.com/SmartGrid. www.oati.com | ©2016 OATI, Inc. All rights reserved.
13
