The Power & Utility Analytics Primer

The Power & Utility Analytics Primer What Every Executive Needs to Know to Compete

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Analytics: What Happened What Is The Brain of in the Past: Happening Now: What Are Analytics Are Big Data and Descriptive Diagnostic Analytics? Everywhere the IoT Analytics Analytics 6 7 8 9 10

What Will Happen What Action in the Future: Should I Take: Digital Seize Your Predictive Prescriptive What Is an Transformation Analytic Analytics Analytics Analytic Model? of Power Advantage The Power & Utility Analytics Primer 2017 Top Digital Trends for the Electricity Value Network

GE Brief: 2017 TOP 1 What Are Analytics? DIGITAL TRENDS for the EVN

ANALYTICS are the discovery, interpretation, and communication of meaningful patterns in data. Analytics relies on the simultaneous application of statistics, READ NOW computer programming and operations research to quantify and predict performance. 2016 was a year of accelerating change that will impact the power industry across the entire Electricity Value Network. Power leaders determined to thrive in this (Source: Wikipedia) Webinar: rapidly changing landscape must understand these trends, how they will impact their IMPROVING RELIABILITYbusiness models and the transformative role of digitalization. In this Executive Brief, WITH ANALYTICSGE outlines the trends that warrant consideration by every power and utility executive Featuring: GE Poweras they develop strategies for success in 2017. VP, Data Science Descriptive & Analytics, 1 | Impact of Renewables and DERs 6 | CXO Roles Transform MATURITY MODEL Balancing New Sources of Energy at Every Digitalization of Operations Redefines the CIO Analytics Ravi Malladi Level of the Network Role and Creates New Chief Digital and Chief Transformation Officer Roles A look at past performance 2 | Artificial Intelligence (AI) to determine what Becomes Scalable and Mainstream 7 | Cloud + Edge Is the Next Imperative happened and why. WATCH NOW 3 | Disruptive Cyberattacks Potential to Catalyze Board and 8 | The Talent Challenge Regulatory Oversight Equipping the Workforce with Technology Diagnostic MMaakkee iitt happeenn!! as Hedge Against Brain Drain 4 | Multi-Directional Analytics Is the New Grid 9 | The Platform Economy What is happening now Article: What it Means to the Power Industry What will happen? Prescriptive analytics based on incoming data. ANALYTICS 3.0 5 | The Prosumer Wave Continues to Rise with 10 | Winners Greater Impact Power Producers, Utilities and Industrial platform by Thomas H. Davenport, What is happening? Predictive analytics Grid Operators Who Employ Predictive OT/IT Edge to Cloud Harvard Business Review New Business Models Analytics Condition based monitoring “One of the most dramatic Value What happened? Diagnostic analytics Predict future outcomes some IT integration conversions to data and with accuracy based on analytics offerings is taking Dashboard © 2017 General Electric Company patterns observed in the Descriptive analytics multiple systems place at General Electric, a

past. Data and Integration company that’s more than Trends, reports 120 years old. With sensors single system Prescriptive streaming data from turbines, locomotives, jet engines, and Analytics medical-imaging devices, Recommended actions that GE can determine the most should be taken based on Information Optimization efficient and effective service descriptive, diagnostic and intervals for those machines.1” predictive analytics.

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$1.3T $387B $2+T Industry Value from: Asset Performance Societal Benefits from: Electricity Value Network Service platforms Management Value from: Reduction in carbon emissions Smart devices Lower repair & maintenance costs Net new job creation Digital Transformation with GE Solutions The ‘cloud’ Lower downtime of assets Value creation for consumers Infographic: Advanced analytics Fewer critical breakdowns Source: World Economic Forum White Paper Digital Transformation of Industries: Electricity Industry, 2 Analytics Are Everywhere ELECTRICITY VALUE January 2016 NETWORK: Digital Transformation with GE Fossil Nuclear Gas Customer Results: • >10 curies reduction in transported source term Customer Results: Solutions • 30% dose rate reduction in affected areas We live and work in a world increasingly informed and enhanced by• Load rampingadvanced at up to ±50 MW/min, 2.5 X normal rate Accenture • for plant 5 person-rem reduction • 2% increased fuel efficiency • 2.5% increase in peak output to meet short term demands Solutions: • $2.5MM cost reduction & avoidance over first year • Allows reactor operator to manage steam moisture content to better analytics. We interact with analytics every day, from Amazon shopping balance total efficiency of the plant • Reduction in insurance cost ~ $8.8MM per year • Delivers prediction models that enhance operating designs and the WEF • NERC CIP Compliance Power Generation • Allows moisture carryover targets to be strategically planned to meet Solutions: business needs recommendations to Facebook photo tagging. Our mobile phones • areProvides early warning now prior production failure with predictive maintenance READ NOW • Helps plant management understand how to engage control software using Wind Farm estimate that analytic software • Provides visibility into power production for plant managers and traders for Customer Results: powerful computers that are constantly running analytics applications.real-time decisioning • 10% reduction in maintenance cost • Enables rapid turn-up, manages fuel variability and maintaining emissions • 1% increase in production based on availability level with advanced analytics • Up to 10% annual Energy Production Transmission Distribution the digital • Identifies vulnerabilities and ongoing threats with intrusion detection • 1–3% increase in Revenue Solutions: Coal • Provides fleet-wide view of turbines’ state, status and health with A number of industries have been transformed by a digital wave ofCustomer innovation Results: remote turbine control • 10–15% NOx reduction • Enables smart maintenance decisions and forecast of useful life revolution • Improves turbine performance with farm level optimization • 0.5–1% heat rate improvement • Provides models for day-ahead and real time weather forecasting • 15–30% less overall soot blowing Video: driven by analytics, Big Data and digital platforms. The power industry• ROI < 1 year is now Consumption Solutions: ACHIEVING OUTCOMES Grid in electricity • Maintains “sweet-spot” operations while optimizing the boiler performance Customer Results: across multiple objectives: NOx, heat rate, steam temperatures, CO, LOI, NH3 experiencing a major digital transformation that will only accelerate. Analytics is From the Edge to • Up to $3M Opex saving in 1st year • Improves soot blower control Buildings and Cities • Provides plant flexibility by revealing operating options/trade-offs • Improved reliability by reducing system interruption by 33% Customer Results: • Frees operators to focus on higher level issues the Cloud • 30% reduction in storm response costs can unlock • Up to 10–20% reduction overall energy consumption • 20%+ increased carrying capacity of existing networks being applied across the electricity value network today in areas such as these: • Up to 50% reduction in lighting costs • Up to 5x faster work completion Solutions: • Up to 30–60% improvement in forecast accuracy for power restoration • Reduces energy costs and consumption by adopting Solutions: energy-saving technologies such as LEDs • Identifies disruption location and reroutes distribution to restore power $3.1 trillion • Enables energy independence, resiliency and environmental responsibility by to customers adopting on-site generation technologies (i.e. solar and combined heat and power) • Manages utilities restoration workforce and equips the field workers with • Reduces energy cost, consumption and carbon footprint by leveraging actionable data energy storage, EV charging and demand response • Monitors, controls and regulates the power line assets that optimize • Improves energy performance and creates new power flow value streams with data and analytics in industry and Copyright © 2016 General Electric. All rights reserved. No parts of this publication may be reproduced or transmitted in any form or by any means, electronical or mechanical, including photocopy, recording, or any information storage and retrieval system, without prior permission in writing from GE. WATCH NOW societal value POWER GENERATION ACROSS THE GRID COMMERCIAL ENERGY over the next Effectively manage power Smart meters, equipment sensors MANAGEMENT decade.2 generation to optimally balance and voltage meters can all be Reduce energy cost, consumption goals, including availability, connected via digital platforms that and carbon footprint by using Video: ELECTRICITY reliability, efficiency and use advanced analytics to solve analytically-powered energy TRANSFORMATION environmental compliance. problems in real time. management, on-site power With the Digital generation, storage and demand Power Plant response.

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Analytics: Accenture/WEF report: DIGITAL 3 The Brain of Big Data and the loT TRANSFORMATION OF INDUSTRIES: Electricity THE INDUSTRIAL INTERNET OF THINGS (IIoT) is the part of the IoT that brings Industry together industrial machines, advanced analytics, and people. It’s the network

of a multitude of connected devices that monitor, collect, exchange, analyze, and READ NOW deliver valuable new insights. These analytics-based insights are driving smarter, faster operational and business decisions for power companies.

GE White Paper: GE DIGITAL TWIN: It will take resources and effort, but Analytic Engine for the The Internet of the IndustrialINTERNET Internet OF THINGS can transform (loT) Digital Power Plant Things (IoT) is The world is being reshaped today at breathtaking speed by the new wave of dominant technologies: Analytics, Big our industriesData, Mobile, and Cloud, lives— the IoT, digital pushing platforms the and Smart Machines. The cumulative capability of analytics is now estimated to boundariesaccelerating of mindsfaster than andever before machines. and has so much transformative potential that it is difficult to estimate its full, include more future impact. READ NOW than 20 billion connected devices by 2020.3 News: (Source: Gartner Press Release, See how SALT RIVER February 2017) PROJECT uses analytics to predict asset failure across multiple plants Without analytics, the Internet of Things would be like trying to hear a single voice “in a crowd of millions. IOT relies on analytics ‘on the edge’ and in the cloud to fulfill the tremendous promise of our increasingly connected world.4 READ NOW (Source: Accenture)

What Happened in the Past: 4 Descriptive Analytics DESCRIPTIVE ANALYTICS or data mining is valuable for organizing and Examples: examining data around past events. Using descriptive analytics, you can condense Management reports that big data into smaller, more useful representations of information. It allows you to Limitations: provide essential information No insight as to why about past asset performance, understand what happened in the past to inform current decisions. issues or trends are field service activities and occurring production outages. No intelligence into the Can be used to find likelihood of events in correlations among different the future field issues after the fact — to The interpretation of determine the root cause of a Historical Daily Performance the data is left to the problem and correct it moving Output Heat Rate NOx CO2 individuals examining 930 MW 5600 STU 3.1 PPM 9.1 PPM forward. reports/dashboard.

Benefits: Data is viewed on a single dashboard, giving a bird’s Average Daily Capacity Safety 1010 MW Days Since eye view to determine where Last Accident: 74 priority action is needed.

A clear view is created to help Details Near Misses: 3 segment power outage events New Safety Reports: 12 and see most impacted areas requiring immediate attention.

What Is Happening Now: In the News: GE TO POWER UP Qatar’s 5 Diagnostic Analytics future smart city DIAGNOSTIC ANALYTICS, a form of advanced analytics, are used for discovery or to determine why something is occurring. These analytics are

characterized by techniques such as drill-down, data discovery, data mining and READ NOW correlations. (Source: Cornerstone)

Case Study: KAHRAMAA GE’S DIAGNOSTIC ANALYTICS IN ACTION Challenge: Kahramaa, the sole T&D system Examples: Challenge: Results: owner and operator for the electricity and water Monitor plant assets to A GE customer used diagnos- These actions were implemented efficiency and heat rate back sector in Qatar, wanted determine if any equipment tic analytics to determine that and corrected the issues, bring- to normal levels resulting in problems are occurring in near to monitor the condition real-time, so corrective action heat rate and output power are ing power output, compressor customer savings of $226K. of all electrical assets can be taken. beyond the red threshold for a across their distribution gas turbine. The ISO rating that substations to identify Remotely monitor and detect RECOMMENDED ACTIONS AND RESULTS and prioritize asset issues with assets distributed corrected output power had across a wide geographic area, degraded approximately 12.6 replacements. GE diagnostic analytics such as transmission and MWs, compressor efficiency had detects a drop in Solution: Kahramaa distribution systems. dropped 3.5% and heat rate compressor eciency, power output and worked with GE to heat rate, indicating had escalated 724 Btu/Kw-hr. compressor fouling. GE implement its APM solution Diagnostic analytics indicated recommends corrective measures. to monitor all electrical Benefits: the unit was starting to assets across its fleet using Remote asset monitoring and experience compressor fouling. diagnostic, predictive and Corrective measures early detection of anomalies are implemented risk analytics, resulting in that allow plants to avoid GE Solution: and compressor a reduction of 50% of eciency, power and forced outages or part damage, GE recommended the customer heat rate return to substation faults and an normal levels. reducing asset degradation and implement an offline water wash Compressor ROI of 180% after just Flow & Eciency maintenance costs. (OWW), but first conduct IGV and Parameters two years. Power (kW) ROs inspections as well as inspect Heat Rate (BTU/kWh) the inlet filter house for gaps that Performance Prior to Performance After Implementation allow unfiltered air to pass into it. GE Recommended Actions of GE Recommended Actions READ NOW

Why Analytics for APM? Operational and business conditions are continually evolving, particularly now as the power industry is undergoing a rapid transformation. Distributed generation, renewables, smart grids, storage and prosumers are accelerating the rate of change. This means that operational conditions and demands are changing quickly, requiring power and The Power & Utility Analytics Primer utility companies to refine how they monitor and maintain operating assets. Those best managing shifts in market dynamics have embraced advanced analytics to grant them insights for equipment issues, improved outage planning and more continuous operation when the market demands. What Will Happen in the Future: Sophisticated analytics at the core of APM allow: Video: • The ability to predict asset issues well in advance of incidents “As theHOW Internet SSE of ThingsIS OPTIMIZING (IoT) matures, impacting production more and better data becomes available • Outage planning that maximizes profitability 6 Predictive Analytics Equipment Performance about the operating status, condition and • Insights to optimize asset life against driving asset output usage history of assets. This is enabling a when required • A comprehensive view of all plant assets, their health and PREDICTIVE ANALYTICS use many techniques including data mining, new era of predictive analytics and APM.” future performance Source: Gartner, “Optimizing Foundational Technology in Examples: statistics, modeling, machine learning, and artificial intelligence to analyze current Utilities Primer for 2017,” Chet Geschickter | Randy Rhodes, Types of Analytics Driving Asset Performance January 2017 Understanding asset performance with data has been part of industrial Predicts when assets are likely WATCH NOW and historical data to make predictions about the future. operations for years, with basic information collection and condition-based to fail, so proactive action can monitoring. However, with advancements in machine sensors and the ability be taken to prevent failure, (Source: Predictive Analytics Today) to collect and organize vast volumes of machine data, the role of analytics in power operations has taken on significant importance. order new parts and schedule 100% coverage of NERC failure modes by 2018 The types of analytics now deployed in many operating systems includes: GE APM maintenance. 100% Product Roadmap Executive Brief: • Descriptive Analytics: What is happening now based on incoming data See How ANALYTICSRisk-Based Strategies Predict day-ahead and seven 80% GE Partner EcosystemIMPROVES Asset • Diagnostic Analytics: day-ahead forecasts for wind CHALLENGE: Scottish and Southern Energy CHALLENGE: E.ON Climate Renewables (EC&R) A look at past performance to determine what happened and why Performance • Predictive Analytics: generators to improve real-time 65% GE EVN (SSE) partnered with GE for early detection partnered with GE to get more power from their Extensions Based on patterns observed in the past, be able to predict future ramp prediction, understand outcomes with accuracy of potential failures and to implement existing fleet. • Prescriptive Analytics: margin price spreads and 50% GE Digital APM Recommended actions that should be taken based on descriptive,

reduce O&M cost by optimizing condition-based maintenance. MODES OF ESSENTIAL FAILURE COVERAGE diagnostic and predictive analytics

maintenance schedules. SOLUTION: GE PowerUp analyzed tens of thou- < 40% Basic Monitoring READ NOW The Importance of Failure Mode Coverage

SOLUTION: SSE used GE’s Asset Performance sands of data points per second on each wind 2015 2016 2017 2018+ Every asset within an operating environment contributes risk to the overall functioning of the plant or grid. For an APM solution to be most effective, the analytics of that solution must monitor every asset with sensors and must Management (APM) solution to build an Equip- farm, totaling 469 wind turbines, and used predic- INDUSTRY-LEADING ANALYTIC COVERAGE cover the most critical failure modes of those assets. In this sense, not all GE analytics are what powers APM. GE APM analytics provide 65% ment Performance Center (EPC) that continuously tive analytics to increase power output, service APM solutions are created equal. The North American Reliability Corporation coverage of the mostCase critical NERCStudy: failure modes with a goal of 100% Benefits: coverage by 2018. (NERC) has defined the failure modes for operating assets. To cover the Forecast across a wide range of monitors the health of more than 1,000 assets productivity and create new revenue streams for E.ON AND GE: A Power majority of these critical failure modes requires deep machine experience, a catalog of analytic capabilities and a platform for analytic execution that can areas and navigate huge data over 11 different locations. customers. Up Story operate in real time. sets of dizzying complexity to provide a clear view of what will RESULT: SSE has experienced a significant RESULT: The solution increased annual energy © 2017 General Electric Company happen in the future so people reduction in plant failures, saving £3MM per year production (AEP) by 4% in the just the first year. can make better operational and financial decisions. from early failure detection and £6 MM per year READ NOW from reduced insurance costs.

Video: What Is A DIGITAL WIND FARM?

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What Action Should I Take: Case Study: NRG ACHIEVES 7 Prescriptive Analytics OPTIMAL BALANCE CHALLENGE: NRG turned are an advanced version of predictive analytics that to GE to achieve the optimal PRESCRIPTIVE ANALYTICS balance between asset life uses simulations to automate complex decisions and tradeoffs to make predictions and performance to maximize and recommend optimal actions based on those predictions. Over the past 10 profitability. SOLUTION: NRG used years the accuracy and reliability of prescriptive analytics have been enormously GE’s Operations Optimization solution, resulting in 2-3% successful due to the rise of Big Data and high speed computing. output improvement, $5 million increase in revenue per 32K hours and zero impact to plant outage schedules.

DISPATCH OPTIMIZER READ NOW Examples: For a single combined For example, GE’s Dispatch Optimizer solution uses prescriptive analytics to cycle power plant with enable a power plant to optimize short and long-term dispatch decisions. multiple generating assets prescriptive analytics can be This allows plant operators to dramatically improve dispatch economics and Executive Brief: ACHIEVING COAL PLANT applied to determine how increase plant profitability. EFFICIENCY & Emissions to simultaneously optimize Control with Digital dispatch and achieve reliability Digital Twin — Dispatch Optimization goals guaranteed to the customer on a given day, week, Incremental Prot month or year. 200000

150000

Benefits: $USD 100000 READ NOW Go beyond 50000 controlling financial downside DISCOVER THE POWER OF DIGITAL (unplanned downtime, failures, 0 Customer Stories etc.) to enabling financial 2 May 4 May 6 May 8 May 10 May 12 May 14 May 16 May 18 May 20 May 22 May 24 May 26 May 28 May 30 May Ebook: DISCOVER upside (optimally balancing risk Cold Part Loading/Peak Fire Optimization THE POWER OF DIGITAL: and reward). 50 Customer Stories

Solve the most complex, high 0 value challenges because -50

prescriptive analytics are ( ˚ F) Delta designed to consider not only -100 past, current, and forecasted Firing Temperature Firing -150 future data, but also overall 2 May 4 May 6 May 8 May 10 May 12 May 14 May 16 May 18 May 20 May 22 May 24 May 26 May 28 May 30 May business goals and objectives. READ NOW

8 What Is an Analytic Model?

Why is it difficult An ANALYTIC MODEL uses data and mathematics to better understand and When data scientists to build analytic build a predictive explain a system, to study the effects of different components of that system analytic model for models for the Predictiveand to make Model predictions for Asset aboutManagement its behavior. asset management power and utility they: industry? CONTINUOUS MODEL LEARNING 1. Examine a large pool Data scientists must of historical data and Monitor look for patterns. For examine vast amounts Performance example, three months of data (terabytes in after a certain vibration some cases) to search happens on an asset and Y the temperature rises for patterns. Building 4 above a specific threshold effective analytic models Real-Time Data for a period of time, the for the power and 0 X probability that an asset will failure increases. utility industry requires Historical 2. Once they identify experienced people, Data and understand these physics-aided deep patterns, they program learning and machine these into the model. learning, powerful model 1 2 3 3. In real time, data from building tools, a global the power plant flows The model analyzes through the model to see installed base, large Analyze historical data — Apply math and real-time turbine data to if there is a match to the identify patterns build model identify matches and pattern. partner ecosystem, Digital trigger alerts. Twin, Predix* platform and 4. If the model identifies Cloud + Edge capabilities. that there is a match, an alert is triggered and the plant team can take an *Predix is a trademark of General Electric Company. action.

News: 9 Digital Transformation of Power NYPA to use analytics to monitor 16 plants and network The ELECTRICITY INDUSTRY is undergoing a rapid transformation. Distributed Utilities’ generation, renewables, smart grids, storage and prosumers are accelerating traditional business the rate of change. By embracing digitalization — analytics, Big Data and digital models are under platforms — companies can apply unprecedented insights and innovative business attack, directly and models to create new sources of value and competitive advantage. “ READ NOW indirectly. Utilities are racing to reinvent their roles and have started a profound Customer Story: FOSSIL COAL NUCLEAR WIND transformation See how PSEG optimizes Predictive maintenance, Optimizing plant Optimally balance plant Fleet-wide view of turbines’ operations with analytics journey. The industry advanced control systems, operational and financial total efficiency, predictive state, status and health, and software will be reborn in maximum flexibility, performance, improved models that enhance accurate week, day and forecasting, cyber security. operational control. operating designs. real-time weather forecasting, 3D: decentralized, farm- and fleet-wide optimization. divergent, and READ NOW digital.5

— Roberta Bigliani HYDROELECTRIC TRANSMISSION & END CONSUMER Video: IDC Energy Insights DISTRIBUTION Plant and fleet optimization, Reduce energy costs, DISCOVER HOW condition monitoring, Optimize power flow, reduce provide control, Intelligent DIGITALIZATION is ” forecasting, outage manage- outages and restore power Environments, demand Improving Performance ment, cyber security. faster, advanced workforce response. Across the Electricity management. Industry Listen to panelists: Steve Bolze President & CEO — GE Power Chris Crane President & CEO — Exelon Gil Quiniones President & CEO New York Power Authority

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Website: FOR MORE 10 Seize Your Analytic Advantage INFORMATION: on GE Digital Twin Although analytics are widely used in the power industry today to solve critical VISIT WEBSITE problems and improve performance, their use is rapidly accelerating. Analytics are no longer optional for the power industry, but a requirement to remain competitive and to meet operational and financial goals in a rapidly transforming industry.

GE has invested heavily in analytics for decades and has helped its customers achieve the outcomes they are striving for every day through thousands of successful analytic implementations. Deep Power Expertise, Physics-Aided Machine and Deep Learning, Cloud + Edge, Digital Twin, Predix, Powerful Model Building Tools, Partner Ecosystem, Global Installed Base Analytics Descriptive Diagnostic Predictive Prescriptive Maturity Analytics Analytics Analytics Analytics

00 0 100 % Video: Exelon & GE: 800+ 750 , Accelerating Digital power plants >550,000 Transformation GE Digital Twins Created

S 69 countries E

65% WATCH NOW E D L G O

Coverage of Critical A A T M

generators I 2000+ R Failure Modes* E G E I R V S D

U O N F L I I C 2400+

A W C R F I gas turbines >600

T E T T Power Patents B Y N L M A A L 300+ U N P N

F steam turbines O

*Failure mode coverage for Combined Cycle Gas Turbine Plants % 0 0 1950 2000 2005 2015 2016 2017 2018+

Website: FOR MORE INFORMATION Learn how GE can help your organization harness on GE Analytics and GE Power the power of analytics to achieve your goals, Digital Solutions supercharge your competitive advantage and VISIT WEBSITE succeed in a time of industry transformation.

Brochure: ELECTRICITY VALUE Footnotes NETWORK: Digital Solutions for 1. Analytics 3.0, Harvard Business Review, Tomas H. Davenport, December 2013 Power & Utilities 2. Digital Transformation Initiative In collaboration with Accenture, World Economic Review, January 2017; http://reports.weforum.org/digital-transformation/wp-content/ READ NOW blogs.dir/94/mp/files/pages/files/dti-executive-summary-website-version.pdf 3. Gartner Says 8.4 Billion Connected “Things” Will Be in Use in 2017, Up 31 Percent From 2016, Gartner Press Release, February 2017; http://www.gartner.com/newsroom/ id/3598917 4. Accenture Analytics; https://www.accenture.com/us-en/internet-of-things-analytics 5. IDC FutureScape: Worldwide Utilities 2017 Predictions

Copyright © 2017 General Electric. All rights reserved. No parts of this publication may be reproduced or transmitted in any form or by any means, or mechanical, including photocopy, recording, or any information storage and retrieval system, without prior permission in writing from GE.