CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

2y ago
32 Views
2 Downloads
5.98 MB
20 Pages
Last View : 16d ago
Last Download : 2m ago
Upload by : Arnav Humphrey
Transcription

CREATING ASMART CITYROADMAP FORPUBLIC POWERUTILITIES1CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

CREATING ASMART CITY ROADMAP FORPUBLIC POWER UTILITIESReport written and prepared by 2018 American Public Power Associationwww.PublicPower.orgContact MediaRelations@PublicPower.org or 202.467.2900.The American Public Power Association is the voice of not-for-profit, communityowned utilities that power 2,000 towns and cities nationwide. We represent publicpower before the federal government to protect the interests of the more than 49million people that public power utilities serve, and the 93,000 people they employ.Our association advocates and advises on electricity policy, technology, trends,training, and operations. Our members strengthen their communities by providingsuperior service, engaging citizens, and instilling pride in community-owned power.

TABLE OF CONTENTSI.DEFINING SMART CITIES AND THE ROLE OF PUBLIC POWER UTILITIES.5INTRODUCTION.5WHAT IS A SMART CITY?.5THE ROLE OF PUBLIC POWER UTILITIES IN SMART CITY.7SEEING THROUGH THE BLUR OF TECHNOLOGY.8WHERE DOES THE PUBLIC POWER UTILITY FIT IN?.9II. BECOMING PART OF THE SMART CITY CONVERSATION.11III. SECURITY PLANNING.12IV. WHAT STEPS MUST UTILITIES TAKE?.14V. BUILDING THE ROADMAP.15VI. SUPPORTING THE UTILITY OF THE FUTURE AND SMART CITIES.16WHAT DOES THE PUBLIC POWER “UTILITY OF THE FUTURE” LOOK LIKE?.16APPENDIXSPOTLIGHT ON CPS ENERGY SMART CITY INITIATIVES.17SPOTLIGHT ON SMUD ENERGY SMART CITY INITIATIVES.18

I. DEFINING SMART CITIES AND THE ROLE OFPUBLIC POWER UTILITIESINTRODUCTIONAdvancements in connected technologies,particularly communications networking and theInternet of Things (IoT), have transformed ourlives and business. Across the board, industries areundergoing digital transformation, and the utilitiesindustry is no exception. This transformation ishappening on a macro scale as an industry, and ona micro scale at the utility level.With the wide deployment of advanced metersthroughout the country, utilities now have theirown platform by which they can design futureapplications and programs.Grid modernization is often discussed in terms ofautomation and security — how will the utility ofthe future leverage new technologies to enhancegrid resilience, integrate more distributed energyresources, and improve customer experience? Inaddition, what role will the utility play in smartercities, with its critical infrastructure and services atthe core of city operations?As the leading resource for public power utilitiesnationwide, the American Public Power Associationis guiding its members through this critical digitaltransformation process by laying out this roadmapfor the Utility of the Future in smart cities. Thisroadmap is derived from the essential mission ofpublic power utilities to provide safe, affordable,and reliable electric service to its communities, andis developed as part of the Association’s PublicPower Forward initiative.This paper offers guidelines and recommendationsfor public power utilities, while recognizing thateach utility is as unique as the community itserves. While each path towards smart city maybe different, the fundamental goals are the same:to leverage the latest technologies and businesspractices for improved operational and energy15efficiency with the mission of improving customerexperience and benefiting the community at large.WHAT IS A SMART CITY?To begin to scratch the surface of what a smart cityis, it’s critical to fully understand the term “smart.”The term has come to be known as the de factolabel on all things digital. Nearly anything withwireless connectivity has been labeled “smart.”That’s because new technology enables users tocollect and track vast amounts of data in real-time.This data is then used to help businesses make“smarter” decisions. Yet, data collection and dataapplication are not always in sync. Just becauseone has data does not always mean that they knowwhat to do with it. For example, many utilitiesare still grappling with what to do with the vastamounts of data coming in from advanced meteringinfrastructure (AMI).So, when we define the term “smart city”,particularly for utilities, we must consider theessential meaning of the word smart — to haveknowledge or intelligence1 — with the modernterm, which has come to mean data-driven andconnected. In this paper, we will define smart as theintersection of digital with intelligence. Smart city,therefore, will refer to a city that leverages digitalconnectivity and data analytics to drive intelligentdecision making.Today, the definition of “smart cities” is notuniversally agreed upon. It can refer to a city thatfocuses on carbon reduction or is introducingelectric vehicles. It could also refer to a city thathas implemented municipal Wi-Fi or integratedsolar and distributed energy resources. Cities acrossthe globe that do any one of these things definethemselves as smart.An article from September 2018 that identifiedthe top 10 smart cities in the world called outMerriam-Webster Dictionary; Oxford English DictionaryCREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

Amsterdam for its advancements in urban planning,while recognizing Vienna for excellence in greenenergy for having its southern districts 100%dependent on renewables since 2015.2 Closer tohome, Boston is recognized for its emphasis onpublic management systems and advanced businessecosystems as well as its high-speed Internet. Thearticle argues that “since transport and mobilitycan’t be easily adjusted, it is connecting its citizensthrough more technological efforts.”3A good example is CPS Energy, a public powerutility based in San Antonio, which has beenworking with city leadership and other partners todevelop a strategic plan for the community, calledSmartSA. CPS Energy is leading the conversationaround how the utility and its partners can bringnew efficiencies into the community.According to Paula Gold-Williams, CPS Energy’sPresident and CEO, there is a direct connectionbetween the smart grid and smart city conversation.The point here is that each of these cities leveragestechnology to address specific community needs,and these communities are vastly different. Butall of these cities have embodied the holisticterm “smart” to apply technology to solve uniqueproblems for its residents.As a public power utility, this definition of smartcity is the fundamental stepping stone to building aroadmap into the future. There will always be newertechnologies, faster Internet speeds, more efficienttransportation models, etc. Yet, taking the firststep to identify the needs of the community is thefoundation for a public power company’s smart cityroadmap.The reality is that many utilities identify smartcity initiatives as the next phase of smart gridefforts, piggy-backing on AMI investments anddeployments.“Since 2014, CPS Energy has beenimplementing our Smart Grid Initiative—amajor upgrade to our electric and gas gridthat supports reliability, boosts efficiency andreduces costs. The new mesh network is fullyoperational, and we are now 100 percentcomplete with the project goals.“We are also committed to meeting with asmany different partner entities involved inthe smart city dialogue We want to learnand leverage opportunities to position of ourcommunity, so we can bring new efficiencies,offer new products and services, and improvethe quality of life in our community.”42Spiro, James. “Top Ten Greatest Smart Cities in the World,” Editor’s Choice, September 8, 2018.”3Spiro, James. “Top Ten Greatest Smart Cities in the World,” Editor’s Choice, September 8, 2018.”4Correspondence from CPS Energy, Jonathan Tijerna, October 11, 2018.CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES6

The Association recognizes the unique role ofpublic power utilities in smart city efforts. ThePublic Power Forward initiative is designed tohelp public power utilities prepare for a new erain electricity.5 The Public Power Forward initiativehelps public power utilities to address changingcustomer preferences, rate design considerations,technologies, regulation, and market forces.6In this spirit, APPA is defining a smart city inthis white paper as a city that betters the livesof residents and businesses through mindfulinvestments and deployments of advancedtechnologies. Specifically, these efforts can improveenergy efficiency, reduce carbon emissions andimprove reliability and customer service.These advanced technologies may include advancednetwork communications, adoption of IoT andapplications, and the integration of distributedenergy resources that will provide communitieswith improved automation and meet low carbonemission goals.THE ROLE OF PUBLIC POWERUTILITIES IN SMART CITYAs we begin to understand the fabric of what makesa city smart, the question becomes, what role doesthe public power utility play in the design of smartcities?As the provider of electric services to more than2,000 towns and cities, public power utilities arethe cornerstone of more than 49 million peoples’lives in the United States. This power fuels babymonitors and life-saving medical equipment, keepshomes warm in blizzards and the lights on duringhurricanes. It keeps cars moving, restaurants openand our first responders equipped to do their job.It is by understanding the critical role of the utilityand how it intersects with all aspects of everyday lifethat we can fully appreciate the responsibility publicpower has to lead smart city initiatives.7According to Sacramento Municipal Utility District(SMUD), an APPA member and public powerutility in Sacramento, California:“Participating in the City of Sacramento’sprograms is a reflection of SMUD’s visionstatement—to be the trusted partner with ourcustomers and community, providing innovativesolutions to ensure energy affordability andreliability, improve the environment, reduce ourregion’s carbon footprint, and enhance thevitality of our community.”7SMUD’s participation in Sacramento smartcity initiatives include 5G collaboration, greentransportation solutions and clean grid initiatives.“With SMUD’s clean grid, electricity reducesgreenhouse gas emissions by 70% right off thebat versus fossil fuels, and we are developing newways to bring 100% renewable electricity to thetransportation sector which will further reduceemissions and promote sustainability,” said BillBoyce, SMUD Electric Transportation Manager.According to CPS Energy, through their partnershipwith New Energy Economy Partners, the utilityis leveraging low carbon and renewable energyresources to stimulate economic and educationaldevelopment within the community.8 This isbeing achieved through a number of key activitiesincluding deploying smart meters, rebalancingits portfolio towards natural gas and renewables(including a commitment to use 20% renewables by2020), and committing to a strategy that will reducepower plant emissions by tens of thousands of tonsper year.The appendix of this paper provides more detailon the smart city pilots and programs currentlyunderway at SMUD and CPS rward7Correspondence with Chris Capra, SMUD News Media Services, November 2, 20188Excerpted from an interview with CPS Energy President and CEO, Paula Gold-Williams, October 17, 2018.CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

SEEING THROUGH THE BLUR OFTECHNOLOGYIf one agrees that the first step for public powerutilities is to recognize the importance ofinvestments that transform and better a communityand its residents, then the focus can shift to thetechnology that makes this transformation possible.For utilities, the foundation of smart cities and amore connected, automated future, is the grid itself— the “smart grid.” Utilities that have deployedAMI and can now connect to customers in realtime have a platform and means of collectingimportant data. This data provides insight intoload management and energy usage patterns. Butsmart grid infrastructure extends past AMI intoautomation and resiliency. Utilities are alreadyfeeling the challenges of grid transformation, fromresource planning to ongoing maintenance andsupport.The question facing many utilities today is how totake on more technology investments. What othertechnologies should utilities consider in laying outa roadmap for a smarter energy future and smartcities? What barometer should public powerutilities use to determine which technologies orapplications to begin with?The industry is already swarming with millions ofapplications and solutions providers offering upanswers to smart city adoption. Because the publicpower utility is owned and governed by citizensof the community, it is only natural that thesecustomers be the focus of benefits and technologyinvestment.For public power utilities, this means asking, “Willthis investment improve the community and thelives of the people in it?” Going back to the originaldefinition of “smart,” it also means asking if eachtechnology decision is an intelligent and meaningfulinvestment for customers and the community.As a public power utility, you must understandyour responsibility to the community to help guidethe decision-making process. Keeping customerbenefits front and center is likely to result insuccess, with both customers and stakeholderssupporting your efforts.The bottom line is that if the technology does notimprove the lives of consumers, then the rationalebehind investment is undermined. This is criticalfor public power utilities building the business casefor large-scale technology transformation. In anenvironment governed by community stakeholders,the technology experts building the roadmap fora smarter future must be able to articulate thetechnology investment for customers—residential,commercial and industrial. This will not only dictateapproval of such a plan and investment, but assurethe support needed to undergo business, cultural,social and technological transformation.CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES8

WHERE DOES THE PUBLIC POWERUTILITY FIT IN?Third party service providers are all throwing theirhats into the smart city ring, seeing an opportunityto monetize the smart city transformation effort.Many of them are willing to work with publicpower companies to develop new technologies andservices. But this investment, which is critical toadvancement of smart cities, is challenged by thelimited funds available through local governmentefforts.According to the “Smart Cities Financing Guide,”put out by the Smart Cities Council in conjunctionwith the Center for Urban Innovation at ArizonaState University, smart city initiatives face majorcapital challenges. According to the report, theprojects can expect to be funded through a mixedbag of investments including “Government-basedfinancing tools, development exactions, publicprivate partnerships, and private fund leveragingoptions.”9The Association sees this overall industry challengeas an opportunity for public power utilities. Alreadythe heartbeat of their communities, public powerutilities are well-positioned to understand wherecities need to go and how to take them there. Theadvantages to helping design the roadmaps for theirown communities are: Control over strategic decisions in planning Reduced risk of monetary opportunity loss Reduced risk of core business loss Improved operational benefits to publicpower utility where they can identifysynergies between grid modernizationefforts and multi-use applications ofexisting technology investment Potential for seeking out future investmentchannels once utility blueprint and coredirection is designed9There is risk for public power utilities not activelyengaged in smart city conversations. These risksinvolve outside parties lobbying local governmentfor new infrastructure guidelines and businessstrategies that may interfere with the day-today operations of the local utility. For example,telecommunications or cable companies arebuilding new wireless networks or municipal Wi-Finetworks that can interfere with AMI.10Collaborative partnerships and communicating withlocal government can mitigate these types of risk.Therefore, SMUD’s partnership with the City ofSacramento on 5G made sense, as there was acommon need and synergies.According to Bobbie Harris, SMUD Grid Planningand Operations Senior Project Manager, “SMUDworked collaboratively with the City of Sacramentoto allow the City to directly connect small cells intotheir own wiring, while SMUD took care of wirelesscarrier billing. Due to this innovative arrangement,it assisted the City of Sacramento to quickly deploy5G assets and become one of the first cities in theUS to offer 5G Internet services to customers.”CPS Energy’s partner engagement is another agood example of how close coordination withstakeholders is coupled with the desire to explorenew products and services. The utility meetsmonthly with the city of San Antonio to discussplanning and product pilot opportunities under theSmartSA umbrella.11 Recently, the utility established“innovation zones” throughout various parts of thecommunity that Gold-Williams said serve as “a realworld testing ground to pilot smart city technology.”Another risk for utilities not engaging with thepublic and private sector on smart city initiatives ispotential restriction from future business models.Therefore, public power utilities need to engagein conversations early in the process to make surethere is proper coordination, as well as to ensuretheir interests are not superseded.9Burst, Jesse. “Smart Cities Financing Guide.” Developed by the Center for Urban Innovation at Arizona State University.10PG&E’s final Electric Program Investment Charge (EPIC) report references the specific challenges of the states that the utility “does not have technologyto continuously monitor, analyze/diagnose and identify RFI that may impact the 400 MHz, 900 MHz, and 2.4 GHz AMI networks. This is a key risk andobstacle as network utilization grows and the need for monitoring communication paths and identifying radio communication interferences becomesmore time and cost pressuring.”11Excerpted from an interview with CPS Energy President and CEO, Paula Gold-Williams October 17, 2018CREATING A SMART CITY ROADMAP FOR PUBLIC POWER UTILITIES

One area of contention and competition is thesmart home. While it is common for utilitiesto offer demand response or smart thermostatprograms, it is entirely possible that the localcommunications providers have competing smarthome programs. These new in-home set topboxes or communications lines may interfere withexpensive AMI investments. These products alsocompete with new electric infrastructure in thecity. Whose pole goes in where and what will beconnected to it?Of course, there is the continued debate aroundwho will own and monetize electric vehicleinfrastructure and how much can be installedwithout interferin

WHAT IS A SMART CITY? To begin to scratch the surface of what a smart city is, it’s critical to fully understand the term “smart.” The term has come to be known as the de facto label on all things digital. Nearly anything with wireless connectivity has been labeled “smart.” That’s because new technology enables users to

Related Documents:

What is a smart city? A smart city is quite simply a city that utilizes digitalization and new technology to simplify and improve the life for its residents, its visitors and business. In the smart city, new smart services are constantly created to make the city even better. A smart city is a sustainable city. The smart city is made possible .

emissions reduction from smart grid deployment 28 14. Smart grid product providers 33 List of Tables 1. Characteristics of smart grids 7 2. Workshop contributions to the Smart Grids Roadmap 8 3. Smart grid technologies 19 4. Maturity levels and development trends of smart grid technologies 20 5. Select national smart grid deployment efforts 21 6.

smart grids for smart cities Strategic Options for Smart Grid Communication Networks To meet the goals of a smart city in supporting a sustainable high-quality lifestyle for citizens, a smart city needs a smart grid. To build smart cities of the future, Information and Communications Techn

2019), the term "smart city" has not been officially defined (OECD, 2019; Johnson, et al., 2019). However, several key components of smart cities have already been well-established, such as smart living, smart governance, smart citizen (people), smart mobility, smart economy, and smart infrastructure (Mohanty, et al., 2016).

1. Smart City Challenge Submissions and Finalists 7 2. Miami’s Smart City Operations Center 25 3. Seven Smart City Domains 32 4. Smart City Domains and Pyramid of Innovation 33 5. Three-Phase Smart City Planning, Implementation, and Evaluation Framework 34 6. Phase 1 Key Steps 35 7. The Design-Thinking Process 36 8. Phase 2 Key Steps 38 9.

Smart City Platform Platform Platform Service Application IoT World Bank Korea Week 2020 Smart Cities of Korea. 2 Trends. Gen 1 : Sustainability Development of Smart City 3 2017 Google, Sidewalk Master Plan 2014 Singapore, Smart Nation 2012 China, announced a plan to build 320 smart cities 2018 Korea, National Pilot Smart City 2011

A valuable smart city ICT infrastructure must be able to integrate the smart homes into a coherent smart city concept. Vitale elements in this concept are Internet of Things (IoT), Clouds of Things (CoT), and Artificial Intelligence (AI). The integration of a smart city, its embedded smart homes, and its offered service framework into a

Business tourism trends Adventure travel Executives are increasingly attracted to the adventure venue business trip, which combines team building and strategic planning needs with adventure travel. One company, for example, designs adventure vacations for organizations designed to boost morale and develop leadership in corporate employees, while providing a "perk" in the way of a rafting trip .