the convergence of a smart integrated infrastructure

4-­‐7-­‐15 FUTURE URBAN SYSTEMS: THE CONVERGENCE OF A SMART INTEGRATED INFRASTRUCTURE RICK AZER—DIRECTOR OF DEVELOPMENT SCOTT STALLARD—VICE PRESIDENT SMART ANALYTICS SMART INTEGRATED INFRASTRUCTURE 4-­‐7-­‐15 INTRODUCTIONS •  Rick Azer, Director of Development for Integrated Infrastructure, Smart Integrated Infrastructure • 
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Establish solu1on architecture Iden1fy new trends Support ecosystem development Support system integra1on capability •  ScoN Stallard, Vice President, Smart AnalyPcs, Smart Integrated Infrastructure • 
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Development and Marke1ng of Asset360™ analy1cs plaIorm Lead Asset Management Services for Energy Enable systems op1miza1on and transforma1on of complex assets across Energy, Water, and Smart Communi1es 2 4-­‐7-­‐15 TODAY’S BUSINESS ENVIRONMENT IS INCREASINGLY CHALLENGING AND COMPLEX •  Need for higher levels of resiliency •  RegulaPon & compliance •  Aging infrastructure •  Affordability / sources of capital •  Safety and security challenges •  UrbanizaPon •  Climate change •  Infusion of new technologies and new players •  Social media and customer parPcipaPon We are creating a very different future centered on the technology revolution. 3 4-­‐7-­‐15 BLACK & VEATCH CONCEPT OF SMART INTEGRATED INFRASTRUCTURE Enables more ef8icient, reliable, cost-­‐effective and convenient delivery of essential services 4 4-­‐7-­‐15 SEVEN FACTORS ENABLING THE RISE OF SMART INTEGRATED INFRASTRUCTURE •  Pervasive wireless coverage •  Transforma1on of public carrier business plans to accommodate the Internet of Everything •  Abundant cheap data storage and processing power •  Rise of cloud compu8ng and edge compu1ng •  Access to vast data streams •  Miniaturiza1on of processors enabling poten1al for and the integra1on of rich analy8cs communica1on modules into •  Extensive improvements in intelligent devices applica8on development and visual display capabili1es 5 4-­‐7-­‐15 THE TRANSFORMATION IS TANGIBLE •  Ordinary items are becoming extraordinary •  ConnecPvity facilitates convergence •  As data layers interact they become more powerful Convergence •  Enabling mulP-­‐dimensional awareness, smart infrastructure The bond between data, connectivity and application development creates expansive opportunities 6 4-­‐7-­‐15 TRANSFORMATION BRINGS CROSS-­‐SECTOR INTEGRATION OF SYSTEMS, DATA AND COMMUNICATION •  City’s criPcal systems become more sustainable and flexible •  Energy, water, transport and waste-­‐handling •  Data and communicaPons allows uPliPes and infrastructure owners to •  Drive new efficiencies in resource use •  Measure and manage energy, water and bandwidth 7 4-­‐7-­‐15 DRIVING A “TECHNOLOGY-­‐INFUSED” UTILITY TRANSFORMATION Reduced Demand Aging Infrastructure Rising OperaPng Costs Natural Gas EvoluPon Protect Earnings Invest Capital to Manage Assets Deploy Smart Integrated Infrastructure Influence Policy Engage Customers Integrated Systems Regulatory Change & Uncertainty Evolving Technologies & Business Models Client Issues Client Context Market & Economic Context Industry Trends IntegraPon of Planning, OperaPons, and Asset Management FuncPons Customer Engagement &ERP Regulatory ExperPse & Advice Renewable Energy Technology Market Planning Asset Management OperaPonal Technology Environment Similar situations also exist in water, industry, community/city contexts. 8 4-­‐7-­‐15 INTERDEPENDENCES CREATE OPPORTUNITIES: CROSS-­‐SECTOR TRANSFORMATION Water Energy Energy Waste Management Electric Petroleum Safety/Security Mobility/Open Data Customer ParPcipaPon Green Energy Resiliency Sustainability Ripple effect to many sectors with positive outcomes and far reaching transformations 9 4-­‐7-­‐15 INTERDEPENDENCES CREATE OPPORTUNITIES: CROSS-­‐SECTOR TRANSFORMATION Water Energy Energy Waste Management Electric Petroleum Safety/Security Mobility/Open Data Customer ParPcipaPon Green Energy Resiliency Sustainability Ripple effect to many sectors with positive outcomes and far reaching transformations 10 4-­‐7-­‐15 INTERDEPENDENCES CREATE OPPORTUNITIES: CROSS-­‐SECTOR TRANSFORMATION Smart Grid/Grid Edge
Transportation
Smart City
Ripple effect to many sectors with positive outcomes and far reaching transformations 11 LET’S TALK SMART GRID…. What makes it so smart? Every resident in Chicago will have a smart meter by 2017 to support the city’s planned Smart Grid. The grid is expected to reduce energy waste and save customers $170 million. MIT TR Editors. ‘A Closer Look at Smart CiPes’ in MIT Technology Review, 2014: November 18. 12 4-­‐7-­‐15 AT THE EDGE OF THE SMART GRID •  Meters supply substanPal intelligence and new visibility into system operaPons •  Sensors provide richer informaPon and context •  Gateways enable customer parPcipaPon •  More intelligent distribuPon criPcal to address widespread renewables and EV charging A secure, pervasive communications network is an essential element to today’s grid operations 13 4-­‐7-­‐15 ENERGY EFFICIENCY OPPORTUNITY •  Cross-­‐sector opportunity •  Electric, water/wastewater, waste, transport, ligh1ng, facility management, mobility •  Enormously complex •  Varies across Pme •  Requires lots of data •  Demand •  Usage •  Flexibility •  Tangible benefits Analyzing Massive Meter Datasets to •  Avoided capital as well Understand CVR Performance as avoided opera1ng costs 14 4-­‐7-­‐15 TECHNOLOGY TRANSFORMATION: HAWAII’S ENERGY FUTURE
•  Hawaiian Electric’s 15-­‐year Power Supply Improvement Plans: •  Cost-­‐effec1vely shi[ to > 65% renewable energy by 2030 •  Major transforma1on in power supply and distribu1on •  Many dynamic, interrelated variables impact investments •  Issues include grid stability, shi[ing revenue base (resident roo[op solar), op1mal applica1on of DR/ES •  Plan must be flexible to adapt to changing circumstances 15 4-­‐7-­‐15 MAJOR TRANSFORMATION FROM CURRENT TO FUTURE STATE Signi8icant integration of non-­‐8irm sources. Source: Hawaiian Electric Power Supply Improvement Plan, August 2014. 16 4-­‐7-­‐15 TRANSFORMATION OF GRID IS BIDIRECTIONAL •  Grid edge is expanding across layers, bi-­‐direcPonally •  Physical assets •  Network •  Data analy1cs •  Applica1ons •  Convergence of exisPng technologies •  Provides more informa1on to transform and op1mize opera1ons •  Drives emerging technologies, new business models 17 LET’S TALK SMART TRANSPORTATION
… Street-­‐smart sedans? “The real benefits of these [connected transportaPon] systems will come if ciPes use this data to guide decisions about traffic management and long-­‐term planning.” Knight, Will. ‘Car-­‐Based Technology that Could Invigorate CiPes’ in MIT Technology Review, 2014: November 28. 18 4-­‐7-­‐15 VEHICLES ARE THE NEXT “CONNECTED DEVICE” •  Today’s designs leverage connecPvity for telemaPcs and infotainment •  Future designs will allow for advanced communicaPon with the environment •  Advances in safety and performance •  Autonomous driving vehicles are within sight •  Connected transportaPon •  Data from mobile apps, sensors, smart meters, signal control, parking space management •  Real-­‐1me data op1mizes travel 19 4-­‐7-­‐15 SMART INFRASTRUCTURE AND ELECTRIC VEHICLES MOBILE AGENTS OF SMART GRID AND SMART CITY •  Electric Vehicle charging infrastructure and applicaPons •  Bi-­‐direcPonal charging and interacPon with grid pricing signals •  Solar energy, baNery storage and Wi-­‐Fi integraPon 20 4-­‐7-­‐15 SMART INFRASTRUCTURE AND ELECTRIC VEHICLES MOBILE AGENTS OF SMART GRID AND SMART CITY SYSTEMS RELATED TO SMART INITIATIVES •  CommunicaPon infrastructure CURRENTLY BEING IMPLEMENTED extending to grid edge Smart electric grid 64.5% •  Use of devices, sensors and bi-­‐
Renewable/distributed 43.6% direc1onal connec1vity High-­‐speed data 40.7% Energy management 39.5% •  Grid Benefits •  Deeper understanding of what’s happening on the grid •  Cheap energy to offset carbon fuel demand •  Distributed energy storage •  Reduced peak demand •  Expansion of the Smart Grid with more vehicle-­‐to-­‐grid charging sta1ons Smart water systems 30.8% Smart buildings 23.3% Smart transporta1on 22.1% Smart street ligh1ng 19.8% Microgrids or nanogrids 16.9% Smart waste systems Interac1ve kiosks/
11.6% 9.9% Other 3.5% Don’t know 2.9% Source: Black & Veatch, Strategic Directions, Smart Utility Report, 2015. 21 LET’S TALK SMART CITIES… Optimizing the urban jungle? “As ciPes turn to the evolving science of happiness to provide residents with benefits and wellbeing, the aspect of joy or fun services in their own right or as part of exisPng funcPons will grow. Technology is playing a large part in that…” Nexgen. ’10 Tech Trends for the Smart City Manager to Look for in 2015’ in Nexgen Group Blog, 2015: January 11. 22 4-­‐7-­‐15 BUILDING A BETTER CITY •  Create ciPzen engagement and enthusiasm •  Leverage social media, mobile apps •  Create richer communica1ons between ci1zens and city •  Economic development •  Resilience •  Improve city operaPons •  Lower costs (investment, opera1ons) •  Garner incremental benefits with investments (ROI) 23 4-­‐7-­‐15 BUILDING A BETTER CITY •  Transform city data into monePze-­‐able assets •  Leverage an integrated and secure data plavorm •  Create a community that maximizes: •  Livability •  Workability •  Sustainability •  Customer par1cipa1on •  Smart elements (parking, city informa1on kiosks) Data and intelligent infrastructure drive ef8icient use of resources, which enhances citizens’ day-­‐to-­‐
day city experience. 24 4-­‐7-­‐15 CONVERGENCE ROADS LEAD TO THE SMART CITY •  Smart infrastructure is backbone of a Smart City •  TransformaPon trek: from smart uPlity, smart transportaPon and smart grid to Smart City •  Water trek: from aging systems to holisPc water management across full cycle with advanced energy/resource management Connec1ng the Pieces of a Smart City: Infrastructure/system integra1on, data analy1cs, op1mized opera1on. 25 4-­‐7-­‐15 MORE DATA ALLOWS RICHER ANALYSIS, ENABLING BETTER DECISION-­‐MAKING AND SMARTER CITIES •  Same data, different levels of detail, mulPple purposes •  Improved operaPon and planning 26 4-­‐7-­‐15 SMARTER CITIES MEAN GREATER QUALITY OF LIFE •  Data and infrastructure increase city livability •  Connected ci1zenry, dynamic and effec1ve engagement •  Less day-­‐to-­‐day stress performing day-­‐to-­‐day func1ons (parking, commu1ng, etc.) •  Sustainable urban ecosystem, reduced resource use •  Enhanced city func1ons, beier planning •  City services rendered efficiently, cost effec1vely 27 LET’S TALK CONCLUSIONS… We’re done already? Nearly 81% of the U.S. populaPon lives in ciPes, and this growing urbanizaPon is acceleraPng the need for Smart CiPes. MunicipaliPes are capitalizing on the convergence of data and intelligent infrastructure to connect city systems and ciPzenry; transform urban centers and uPliPes; and mobilize a new city structure based on sustainability, resiliency and livability. 28 4-­‐7-­‐15 CONCLUSIONS •  Infrastructure is intelligent, connected and aware •  Leveraging data and analyPcs essenPal ingredient to enable smart uPliPes and smarter ciPes •  Paths are converging within and across sectors •  Wide array of benefits “Adapting to changing circumstances isn’t only smart, it’s also a matter of survival.” Daimler, Mike and Reeves, Mar1n. ‘Adaptability: The New Compe11ve Advantage’ In Harvard Business Review, 2011. July. 29 4-­‐7-­‐15 Contact informaPon: RICK AZER| Director, Development | Smart Integrated Infrastructure Black & Veatch | 10089 Willow Creek Road, Suite 350, San Diego, CA 92131 [email protected] SCOTT STALLARD| Vice President, Smart AnalyPcs | Smart Integrated Infrastructure Black & Veatch | 11401 Lamar Av, Overland Park, KS 64101 [email protected] www.bv.com 30