Managing Communications Change

Change is being forced upon the utilities industry. Business drivers range from stakeholder pressure for greater efficiency to the changing technologies involved in operational energy networks. New technologies such as intelligent networks or smart grids, distribution automation or smart metering are being considered.

The communications network is becoming the key enabler for the evolution of reliable energy supply. However, few utilities today have a communications network that is robust enough to handle and support the exacting demands that energy delivery is now making.

It is this process of change – including the renewal of the communications network – that is vital for each utility’s future. But for the utility, this is a technological step change requiring different strategies and designs. It also requires new skills, all of which have been implemented in timescales that do not sit comfortably with traditional technology strategies.

The problems facing today’s utility include understanding the new technologies and assessing their capabilities and applications. In addition, the utility has to develop an appropriate strategy to migrate legacy technologies and integrate them with the new infrastructure in a seamless, efficient, safe and reliable manner.

This paper highlights the benefits utilities can realize by adopting a new approach to their customers’ needs and engaging a network partner that will take responsibility for the network upgrade, its renewal and evolution, and the service transition.

The Move to Smart Grids

The intent of smart grids is to provide better efficiency in the production, transport and delivery of energy. This is realized in two ways:

  • Better real-time control: ability to remotely monitor and measure energy flows more closely, and then manage those flows and the assets carrying them in real time.
  • Better predictive management: ability to monitor the condition of the different elements of the network, predict failure and direct maintenance. The focus is on being proactive to real needs prior to a potential incident, rather than being reactive to incidents, or performing maintenance on a repetitive basis whether it is needed or not.

These mechanisms imply more measurement points, remote monitoring and management capabilities than exist today. And this requires a greater reliance on reliable, robust, highly available communications than has ever been the case before.

The communications network must continue to support operational services independently of external events, such as power outages or public service provider failure, yet be economical and simple to maintain. Unfortunately, the majority of today’s utility communications implementations fall far short of these stringent requirements.

Changing Environment

The design template for the majority of today’s energy infrastructure was developed in the 1950s and 1960s – and the same is true of the associated communications networks.

Typically, these communications networks have evolved into a series of overlays, often of different technology types and generations (see Figure 1). For example, protection tends to use its own dedicated network. The physical realization varies widely, from tones over copper via dedicated time division multiplexing (TDM) connections to dedicated fiber connections. These generally use a mix of privately owned and leased services.

Supervisory control and data acquisitions systems (SCADA) generally still use modem technology at speeds between 300 baud to 9.6k baud. Again, the infrastructure is often copper or TDM running as one of many separate overlay networks.

Lastly, operational voice services (as opposed to business voice services) are frequently analog on yet another separate network.

Historically, there were good operational reasons for these overlays. But changes in device technology (for example, the evolution toward e-SCADA based on IP protocols), as well as the decreasing support by communications equipment vendors of legacy communications technologies, means that the strategy for these networks has to be reassessed. In addition, the increasing demand for further operational applications (for example, condition monitoring, or CCTV, both to support substation automation) requires a more up-to-date networking approach.

Tomorrow’s Network

With the exception of protection services, communications between network devices and the network control centers are evolving toward IP-based networks (see Figure 2). The benefits of this simplified infrastructure are significant and can be measured in terms of asset utilization, reduced capital and operational costs, ease of operation, and the flexibility to adapt to new applications. Consequently, utilities will find themselves forced to seriously consider the shift to a modern, homogeneous communications infrastructure to support their critical operational services.

Organizing For Change

As noted above, there are many cogent reasons to transform utility communications to a modern, robust communications infrastructure in support of operational safety, reliability and efficiency. However, some significant considerations should be addressed to achieve this transformation:

Network Strategy. It is almost inevitable that a new infrastructure will cross traditional operational and departmental boundaries within the utility. Each operational department will have its own priorities and requirements for such a network, and traditionally, each wants some, or total, control. However, to achieve real benefits, a greater degree of centralized strategy and management is required.

Architecture and Design. The new network will require careful engineering to ensure that it meets the performance-critical requirements of energy operations. It must maintain or enhance the safety and reliability of the energy network, as well as support the traffic requirements of other departments.

Planning, Execution and Migration. Planning and implementation of the core infrastructure is just the start of the process. Each service requires its own migration plan and has its own migration priorities. Each element requires specialist technical knowledge, and for preference, practical field experience.

Operation. Gone are the days when a communications failure was rectified by sending an engineer into the field to find the fault and to fix it. Maintaining network availability and robustness calls for sound operational processes and excellent diagnostics before any engineer or technician hits the road. The same level of robust centralized management tools and processes that support the energy networks have to be put in place to support communications network – no matter what technologies are used in the field.

Support. Although these technologies are well understood by the telecommunications industry, they are likely to be new to the energy utilities industry. This means that a solid support organization familiar with these technologies must be implemented. The evolution process requires an intense level of up-front skills and resources. Often these are not readily available in-house – certainly not in the volume required to make any network renewal or transformation effective. Building up this skill and resource base by recruitment will not necessarily yield staff that is aware of the peculiarities of the energy utilities market. As a result, there will be significant time lag from concept to execution, and considerable risk for the utility as it ventures alone into unknown territory.

Keys To Successful Engagement

Engaging a services partner does not mean ceding control through a rigid contract. Rather, it means crafting a flexible relationship that takes into consideration three factors: What is the desired outcome of the activity? What is the best balance of scope between partner assistance and in-house performance to achieve that outcome? How do you retain the flexibility to accommodate change while retaining control?

Desired outcome is probably the most critical element and must be well understood at the outset. For one utility, the desired outcome may be to rapidly enable the upgrade of the complete energy infrastructure without having to incur the upfront investment in a mass recruitment of the required new communications skills.

For other utilities, the desired outcome may be different. But if the outcomes include elements of time pressure, new skills and resources, and/or network transformation, then engaging a services partner should be seriously considered as one of the strategic options.

Second, not all activities have to be in scope. The objective of the exercise might be to supplement existing in-house capabilities with external expertise. Or, it might be to launch the activity while building up appropriate in-house resources in a measured fashion through the Build-Operate- Transfer (BOT) approach.

In looking for a suitable partner, the utility seeks to leverage not only the partner’s existing skills, but also its experience and lessons learned performing the same services for other utilities. Having a few bruises is not a bad thing – this means that the partner understands what is at stake and the range of potential pitfalls it may encounter.

Lastly, retaining flexibility and control is a function of the contract between the two parties which should be addressed in their earliest discussions. The idea is to put in place the necessary management framework and a robust change control mechanism based on a discussion between equals from both organizations. The utility will then find that it not only retains full control of the project without having to take day-to-day responsibility for its management, but also that it can respond to change drivers from a variety of sources – such as technology advances, business drivers, regulators and stakeholders.

Realizing the Benefits

Outsourcing or partnering the communications transformation will yield benefits, both tangible and intangible. It must be remembered that there is no standard “one-size-fits-all” outsourcing product. Thus, the benefits accrued will depend on the details of the engagement.

There are distinct tangible benefits that can be realized, including:

Skills and Resources. A unique benefit of outsourcing is that it eliminates the need to recruit skills not available internally. These are provided by the partner on an as-needed basis. The additional advantage for the utility is that it does not have to bear the fixed costs once they are no longer required.

Offset Risks. Because the partner is responsible for delivery, the utility is able to mitigate risk. For example, traditionally vendors are not motivated to do anything other than deliver boxes on time. But with a well-structured partnership, there is an incentive to ensure that the strategy and design are optimized to economically deliver the required services and ease of operation. Through an appropriate regime of business-related key performance indicators (KPIs), there is a strong financial incentive for the partner to operate and upgrade the network to maintain peak performance – something that does not exist when an in-house organization is used.

Economies of Scale. Outsourcing can bring the economies of scale resulting from synergies together with other parts of the partner’s business, such as contracts and internal projects.

There also are many other benefits associated with outsourcing that are not as immediately obvious and commercially quantifiable as those listed above, but can be equally valuable.

Some of these less tangible benefits include:

Fresh Point of View. Within most companies, employees often have a vested interest in maintaining the status quo. But a managed services organization has a vested interest in delivering the best possible service to the customer – a paradigm shift in attitude that enables dramatic improvements in performance and creativity.

Drive to Achieve Optimum Efficiency. Executives, freed from the day-to-day business of running the network, can focus on their core activities, concentrating on service excellence rather than complex technology decisions. To quote one customer, “From my perspective, a large amount of my time that might have in the past been dedicated to networking issues is now focused on more strategic initiatives concerned with running my business more effectively.”

Processes and Technologies Optimization. Optimizing processes and technologies to improve contract performance is part of the managed services package and can yield substantial savings.

Synergies with Existing Activities Create Economies of Scale. A utility and a managed services vendor have considerable overlap in the functions performed within their communications engineering, operations and maintenance activities. For example, a multi-skilled field force can install and maintain communications equipment belonging to a variety of customers. This not only provides cost savings from synergies with the equivalent customer activity, but also an improved fault response due to the higher density of deployed staff.

Access to Global Best Practices. An outsourcing contract relieves a utility of the time-consuming and difficult responsibility of keeping up to speed with the latest thinking and developments in technology. Alcatel-Lucent, for example, invests around 14 percent of its annual revenue into research and development; its customers don’t have to.

What Can Be Outsourced?

There is no one outsourcing solution that fits all utilities. The final scope of any project will be entirely dependent on a utility’s specific vision and current circumstances.

The following list briefly describes some of the functions and activities that are good possibilities for outsourcing:

Communications Strategy Consulting. Before making technology choices, the energy utility needs to define the operational strategy of the communications network. Too often communications is viewed as “plug and play,” which is hardly ever the case. A well-thought-out communications strategy will deliver this kind of seamless operation. But without that initial strategy, the utility risks repeating past mistakes and acquiring an ad-hoc network that will rapidly become a legacy infrastructure, which will, in turn, need replacing.

Design. Outsourcing allows utilities to evolve their communications infrastructure without upfront investment in incremental resources and skills. It can delegate responsibility for defining network architecture and the associated network support systems. A utility may elect to leave all technological decisions to the vendor and merely review progress and outcomes. Or, it may retain responsibility for technology strategy, and turn to the managed services vendor to turn the strategy into architecture and manage the subsequent design and project activities.

Build. Detailed planning of the network, the rollout project and the delivery of turnkey implementations all fall within the scope of the outsourcing process.

Operate, Administer and Maintain. Includes network operations and field and support services:

  • Network Operations. A vendor such as Alcatel-Lucent has the necessary experience in operating Network Operations Centers (NOCs), both on a BOT and ongoing basis. This includes handling all associated tasks such as performance and fault monitoring, and services management.
  • Network and Customer Field Services. Today, few energy utilities consider outside maintenance and provisioning activities to be a strategic part of their business and recognize they are prime candidates for outsourcing. Activities that can be outsourced include corrective and preventive maintenance, network and service provisioning, and spare parts management, return and repair – in other words, all the daily, time-consuming, but vitally important elements for running a reliable network.
  • Network Support Services. Behind the first-line activities of the NOC are a set of engineering support functions that assist with more complex faults – these are functions that cannot be automated and tend to duplicate those of the vendor’s. The integration and sharing of these functions enabled by outsourcing can significantly improve the utility’s efficiency.

Conclusion

Outsourcing can deliver significant benefits to a utility, both in terms of its ability to invest in and improve its operation and associated costs. However, each utility has its own unique circumstances, specific immediate needs, and vision of where it is going. Therefore, each technical and operational solution is different.

Alcatel-Lucent Your Smart Grid Partner

Alcatel-Lucent offers comprehensive capabilities that combine Utility industry – specific knowledge and experience with carrier – grade communications technology and expertise. Our IP/MPLS Transformation capabilities and Utility market – specific knowledge are the foundation of turnkey solutions designed to enable Smart Grid and Smart Metering initiatives. In addition, Alcatel-Lucent has specifically developed Smart Grid and Smart Metering applications and solutions that:

  • Improve the availability, reliability and resiliency of critical voice and data communications even during outages
  • Enable optimal use of network and grid devices by setting priorities for communications traffic according to business requirements
  • Meet NERC CIP compliance and cybersecurity requirements
  • Improve the physical security and access control mechanism for substations, generation facilities and other critical sites
  • Offer a flexible and scalable network to grow with the demands and bandwidth requirements of new network service applications
  • Provide secure web access for customers to view account, electricity usage and billing information
  • Improve customer service and experience by integrating billing and account information with IP-based, multi-channel client service platforms
  • Reduce carbon emissions and increase efficiency by lowering communications infrastructure power consumption by as much as 58 percent

Working with Alcatel-Lucent enables Energy and Utility companies to realize the increased reliability and greater efficiency of next-generation communications technology, providing a platform for, and minimizing the risks associated with, moving to Smart Grid solutions. And Alcatel-Lucent helps Energy and Utility companies achieve compliance with regulatory requirements and reductions in operational expenses while maintaining the security, integrity and high availability of their power infrastructure and services. We build Smart Networks to support the Smart Grid.

American Recovery and Reinvestment Act of 2009 Support from Alcatel-Lucent

The American Recovery and Reinvestment Act (ARRA) of 2009 was adopted by Congress in February 2009 and allocates $4.5 billion to the Department of Energy (DoE) for Smart Grid deployment initiatives. As a result of the ARRA, the DoE has established a process for awarding the $4.5 billion via investment grants for Smart Grid Research and Development, and Deployment projects. Alcatel-Lucent is uniquely qualified to help utilities take advantage of the ARRA Smart Grid funding. In addition to world-class technology and Smart Grid and Smart Metering solutions, Alcatel-Lucent offers turnkey assistance in the preparation of grant applications, and subsequent follow-up and advocacy with federal agencies. Partnership with Alcatel-Lucent on ARRA includes:

  • Design Implementation and support for a Smart Grid Network
  • Identification of all standardized and unique elements of each grant program
  • Preparation and Compilation of all required grant application components, such as project narratives, budget formation, market surveys, mapping, and all other documentation required for completion
  • Advocacy at federal, state, and local government levels to firmly establish the value proposition of a proposal and advance it through the entire process to ensure the maximum opportunity for success

Alcatel-Lucent is a Recognized Leader in the Energy and Utilities Market

Alcatel-Lucent is an active and involved leader in the Energy and Utility market, with active membership and leadership roles in key Utility industry associations, including the Utility Telecom Council (UTC), the American Public Power Association (APPA), and Gridwise. Gridwise is an association of Utilities, industry research organizations (e.g., EPRI, Pacific Northwest National Labs, etc.), and Utility vendors, working in cooperation with DOE to promote Smart Grid policy, regulatory issues, and technologies (see www.gridwise.org for more info). Alcatel-Lucent is also represented on the Board of Directors for UTC’s Smart Network Council, which was established in 2008 to promote and develop Smart Grid policies, guidelines, and recommended technologies and strategies for Smart Grid solution implementation.

Alcatel-Lucent IP MPLS Solution for the Next Generation Utility Network

Utility companies are experienced at building and operating reliable and effective networks to ensure the delivery of essential information and maintain flawless service delivery. The Alcatel-Lucent IP/MPLS solution can enable the utility operator to extend and enhance its network with new technologies like IP, Ethernet and MPLS. These new technologies will enable the utility to optimize its network to reduce both CAPEX and OPEX without jeopardizing reliability. Advanced technologies also allow the introduction of new Smart Grid applications that can improve operational and workflow efficiency within the utility. Alcatel-Lucent leverages cutting edge technologies along with the company’s broad and deep experience in the utility industry to help utility operators build better, next-generation networks with IP/MPLS.

Alcatel-Lucent has years of experience in the development of IP, MPLS and Ethernet technologies. The Alcatel-Lucent IP/MPLS solution offers utility operators the flexibility, scale and feature sets required for mission-critical operation. With the broadest portfolio of products and services in the telecommunications industry, Alcatel-Lucent has the unparalleled ability to design and deliver end-to-end solutions that drive next-generation utility networks.

About Alcatel-Lucent

Alcatel-Lucent’s vision is to enrich people’s lives by transforming the way the world communicates. As a leader in utility, enterprise and carrier IP technologies, fixed, mobile and converged broadband access, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at work, at home and on the move.

With 77,000 employees and operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and Bell Labs, one of the largest research, technology and innovation organizations focused on communications. Alcatel-Lucent achieved adjusted revenues of €17.8 billion in 2007, and is incorporated in France, with executive offices located in Paris.

Online Transient Stability Controls

For the last few decades the growth of the world’s population and its corresponding increased demand for electrical energy has created a huge increase in the supply of electrical power. However, for logistical, environmental, political and social reasons, this power generation is rarely near its consumers, necessitating the growth of very large and complex transmission networks. The addition of variable wind energy in remote locations is only exacerbating the situation. In addition the transmission grid capacity has not kept pace with either generation capacity or consumption while at the same time being extremely vulnerable to potential large-scale outages due to outdated operational capabilities.

For example, today if a fault is detected in the transmission system, the only course is to shed both load and generation. This is often done without consideration for real-time consequences or alternative analysis. If not done rapidly, it can result in a widespread, cascading power system blackout. While it is necessary to remove factors that might lead to a large-scale blackout, restriction of power flow or other countermeasures against such a failure, may only achieve this by sacrificing economical operation. Thus, the flexible and economical operation of an electric power system may often be in conflict with the requirement for improved supply reliability and system stability.

Limits of Off-line Approaches

One approach to solving this problem involves stabilization systems that have been deployed for preventing generator step-out by controlling the generator acceleration through power shedding, in which some of the generators are shut off at the time of a power system fault.

In 1975, an off-line special protection system (SPS) for power flow monitoring was introduced to achieve the transient stability of the trunk power system and power source system after a network expansion in Japan. This system was initially of the type for which settings were determined in advance by manual calculations using transient stability simulation programs assuming many contingencies on typical power flow patterns.

This type of off-line solution has the following problems:

  • Planning, design, programming, implementation and operational tasks are laborious. A vast number of simulations are required to determine the setting tables and required countermeasures, such as generator shedding, whenever transmission lines are constructed;
  • It is not well suited to variable generations sources such as wind or photovoltaic farms;
  • It is not suitable for reuse and replication, incurring high maintenance costs; and
  • Excessive travel time and related labor expense is required for the engineer and field staff to maintain the units at numerous sites.

By contrast, an online TSC solution employs various sensors that are placed throughout the transmission network, substations and generation sources. These sensors are connected to regional computer systems via high speed communications to monitor, detect and execute contingencies on transients that may affect system stability. These systems in turn are connected to centralized computers which monitor the network of distributed computers, building and distributing contingencies based on historical and recent information. If a transient event occurs, the entire ecosystem responds within 150 ms to detect, analyze, determine the correct course of action, and execute the appropriate set of contingencies in order to preserve the stability of the power network.

In recent years, high performance computational servers have been developed and their costs have been reduced enough to use many of them in parallel and/or in a distributed computing architecture. This results in a system that not only provides a benefit in greatly increasing the availability and reliability of the power system, but in fact, can best optimize the throughput of the grid. Thus not only has system reliability improved or remained stable, but the network efficiency itself has increased without a significant investment in new transmission lines. This has resulted in more throughput within the transmission grid, without building new transmission lines.

Solution and Elements

In 1995, for the first time ever, an online TSC system was developed and introduced in Japan. This solution provided a system stabilization procedure required by the construction of the new 500kV trunk networks of Chubu Electric Power Co. (CEPCO) [1-4]. Figure 1 shows the configuration of the online TSC system. This system introduced a pre-processing online calculation in the TSC-P (parent) besides a fast, post-event control executed by the combination of TSC-C (child) and TSC-T (terminal). This online TSC system can be considered an example of a self-healing solution of a smart grid. As a result of periodic simulations using the online data in TSC-P, operators of energy management systems/supervisory control and data acquisition (EMS/ SCADA) are constantly made aware of stability margins for current power system situations.

Using the same online data, periodic calculations performed in the TSC-P can reflect power network situations and the proper countermeasures to mitigate transient system events. The TSC-P simulates transient stability dynamics on about 100 contingencies of the power systems for 500 kV, 275 kV and 154 kV transmission networks. The setting tables for required countermeasures, such as generator shedding, are periodically sent to the TSC-Cs located at main substations. The TSC-Ts located at generation stations, shed the generators when the actual fault occurs. The actual generator shedding by the combination of TSC-Cs and TSC-Ts is completed within 150 ms after the fault to maintain the system’s stability.

Customer Experiences and Benefits

Figure 2 shows the locations of online TSC systems and their coverage areas in CEPCO’s power network. There are two online TSC systems currently operating; namely, the trunk power TSC system, to protect the 500 kV trunk power system introduced in 1995, and the power source TSC system to protect the 154 kV to 275 kV power source systems around the generation stations.

Actual performance data have shown some significant benefits:

  • Total transfer capability (TTC) is improved through elimination of transient stability limitations. TTC is decided by the minimum value of limitations given by not only thermal limit of transmission lines but transient stability, frequency stability, and voltage stability. Transient stability limits often determines the TTC in the case of long transmission lines from generation plants. CEPCO was able to introduce high-efficiency, combined-cycle power plants without constructing new transmission lines. TTC was increased from 1,500 MW to 3,500 MW by introducing the on-line TSC solution.
  • Power shedding is optimized. Not only is the power flow of the transmission line on which a fault occurs assessed, but the effects of other power flows surrounding the fault point are included in the analysis to decide the precise stability limit. The online TSC system can also reflect the constraints and priorities of each generator to be shed. To ensure a smooth restoration after the fault, restart time of shut off generators, for instance, can also be included.
  • When constructing new transmission lines, numerous off-line studies assuming various power flow patterns are required to support off-line SPS. After introduction of the online TSC system, new construction of transmission lines was more efficient by changing the equipment database for the simulation in the TSC-P.

In 2003, this CEPCO system received the 44th Annual Edison Award from the Edison Electric Institute (EEI), recognizing CEPCO’s achievement with the world’s first application of this type of system, and the contribution of the system to efficient power management.

Today, benefits continue to accrue. A new TSC-P, which adopts the latest high-performance computation servers, is now under construction for operation in 2009 [3]. The new system will shorten the calculation interval from every five minutes to every 30 seconds in order to reflect power system situations as precisely as possible. This interval was determined by the analysis of various stability situations recorded by the current TSC-P over more than 10 years of operation.

Additionally, although the current TSC-P uses the same online data as used by EMS/ SCADA, it can control emergency actions against small signal instability by receiving phasor measurement unit (PMU) data to detect divergences of phasor angles and voltages among the main substations.

Summary

The online TSC system is expected to realize optimum stabilization control of recent complicated power system conditions by obtaining power system information online and carrying out stability calculations at specific intervals. The online TSC will thus help utilities achieve better returns on investment in new or renovated transmission lines, reducing outage time and enabling a more efficient smart grid.

References

  1. Ota, Kitayama, Ito, Fukushima, Omata, Morita and Y. Kokai, “Development of Transient Stability Control System (TSC System) Based on Online Stability Calculation”, IEEE Trans. on Power System, Vol. 11, No. 3, pp. 1463-1472, August 1996.
  2. Koaizawa, Nakane, Omata and Y. Kokai, “Acutual Operating Experience of Online Transient Stability Control System (TSC System), IEEE PES Winter Meeting, 2000, Vol. 1, pp 84-89.
  3. Takeuchi, Niwa, Nakane and T. Miura
    “Performance Evaluation of the Online Transient Stability Control System (Online TSC System)”, IEEE PES General Meeting , June 2006.
  4. Takeuchi, Sato, Nishiiri, Kajihara, Kokai and M. Yatsu, “Development of New Technologies and Functions for the Online TSC System”, IEEE PES General Meeting , June 2006.

Successful Smart Grid Architecture

The smart grid is progressing well on several fronts. Groups such as the Grid Wise Alliance, events such as Grid Week, and national policy citations such as the American Recovery and Reinvestment Act in the U.S., for example, have all brought more positive attention to this opportunity. The boom in distributed renewable energy and its demands for a bidirectional grid are driving the need forward, as are sentiments for improving consumer control and awareness, giving customers the ability to engage in real-time energy conservation.

On the technology front, advances in wireless and other data communications make wide-area sensor networks more feasible. Distributed computation is certainly more powerful – just consider your iPod! Even architectural issues such as interoperability are now being addressed in their own forums such as Grid Inter-Op. It seems that the recipe for a smart grid is coming together in a way that many who envisioned it would be proud. But to avoid making a gooey mess in the oven, an overall architecture that carefully considers seven key ingredients for success must first exist.

Sources of Data

Utilities have eons of operational data: both real time and archival, both static (such as nodal diagrams within distribution management systems) and dynamic (such as switching orders). There is a wealth of information generated by field crews, and from root-cause analyses of past system failures. Advanced metering infrastructure (AMI) implementations become a fine-grained distribution sensor network feeding communication aggregation systems such as Silver Springs Network’s Utility IQ or Trilliant’s Secure Mesh Network.

These data sources need to be architected to be available to enhance, support and provide context for real-time data coming in from new intelligent electronic devices (IEDs) and other smart grid devices. In an era of renewable energy sources, grid connection controllers become yet another data source. With renewables, micro-scale weather forecasting such as IBM Research’s Deep Thunder can provide valuable context for grid operation.

Data Models

Once data is obtained, in order to preserve its value in a standard format, one can think in terms of an extensible markup language (XML)-oriented database. Modern implementations of these databases have improved performance characteristics, and the International Engineering Consortium (IEC) common information/ generic interface definition (CIM/GID) model, though oriented more to assets than operations, is a front-running candidate for consideration.

Newer entries, such as device language message specification – coincidence-ordered subsets expectation maximization (DLMS-COSEM) for AMI, are also coming into practice. Sometimes, more important than the technical implementation of the data, however, is the model that is employed. A well-designed data model not only makes exchange of data and legacy program adjustments easier, but it can also help the applicability of security and performance requirements. The existence of data models is often a good indicator of an intact governance process, for it facilitates use of the data by multiple applications.

Communications

Customer workshops and blueprinting sessions have shown that one of the most common issues needing to be addressed is the design of the wide-area communication system. Data communications architecture affects data rate performance, the cost of distributed intelligence and the identification of security susceptibilities.

There is no single communications technology that is suitable for all utilities, or even for all operational areas across any individual utility. Rural areas may be served by broadband over powerline (BPL), while urban areas benefit from multi-protocol label switching (MPLS) and purpose- designed mesh networks, enhanced by their proximity to fiber.

In the future, there could be entirely new choices in communications. So, the smart grid architect needs to focus on security, standardized interfaces to accept new technology, enablement of remote configuration of devices to minimize any touching of smart grid devices once installed, and future-proofing the protocols.

The architecture should also be traceable to the business case. This needs to include probable use cases that may not be in the PUC filing, such as AMI now, but smart grid later. Few utilities will be pleased with the idea of a communication network rebuild within five years of deploying an AMI-only network.

Communications architecture must also consider power outages, so battery backup, solar recharging, or other equipment may be required. Even arcane details such as “Will the antenna on a wireless device be the first thing to blow off in a hurricane?” need to be considered.

Security

Certainly, the smart grid’s purpose is to enhance network reliability, not lower its security. But with the advent of North American Reliability Corp. Critical Infrastructure Protection (NERC-CIP), security has risen to become a prime consideration, usually addressed in phase one of the smart grid architecture.

Unlike the data center, field-deployed security has many new situations and challenges. There is security at the substation – for example, who can access what networks, and when, within the control center. At the other end, security of the meter data in a proprietary AMI system needs to be addressed so that only authorized applications and personnel can access the data.

Service oriented architecture (SOA) appliances are network devices to enable integration and help provide security at the Web services message level. These typically include an integration device, which streamlines SOA infrastructures; an XML accelerator, which offloads XML processing; and an XML security gateway, which helps provide message-level, Web-services security. A security gateway helps to ensure that only authorized applications are allowed to access the data, whether an IP meter or an IED. SOA appliance security features complement the SOA security management capabilities of software.

Proper architectures could address dynamic, trusted virtual security domains, and be combined not only with intrusion protection systems, but anomaly detection systems. If hackers can introduce viruses in data (such as malformed video images that leverage faults in media players), then similar concerns should be under discussion with smart grid data. Is messing with 300 MegaWatts (MW) of demand response much different than cyber attacking a 300 MW generator?

Analytics

A smart grid cynic might say, “Who is going to look at all of this new data?” That is where analytics supports the processing, interpretation and correlation of the flood of new grid observations. One part of the analytics would be performed by existing applications. This is where data models and integration play a key role. Another part of the analytics dimension is with new applications and the ability of engineers to use a workbench to create their customized analytics dashboard in a self-service model.

Many utilities have power system engineers in a back office using spreadsheets; part of the smart grid concept is that all data is available to the community to use modern tools to analyze and predict grid operation. Analytics may need a dedicated data bus, separate from an enterprise service bus (ESB) or enterprise SOA bus, to meet the timeliness and quality of service to support operational analytics.

A two-tier or three-tier (if one considers the substations) bus is an architectural approach to segregate data by speed and still maintain interconnections that support a holistic view of the operation. Connections to standard industry tools such as ABB’s NEPLAN® or Siemens Power Technologies International PSS®E, or general tools such as MatLab, should be considered at design time, rather than as an additional expense commitment after smart grid commissioning.

Integration

Once data is sensed, securely communicated, modeled and analyzed, the results need to be applied for business optimization. This means new smart grid data gets integrated with existing applications, and metadata locked in legacy systems is made available to provide meaningful context.

This is typically accomplished by enabling systems as services per the classic SOA model. However, issues of common data formats, data integrity and name services must be considered. Data integrity includes verification and cross-correlation of information for validity, and designation of authoritative sources and specific personnel who own the data.

Name services addresses the common issue of an asset – whether transformer or truck – having multiple names in multiple systems. An example might be a substation that has a location name, such as Walden; a geographic information system (GIS) identifier such as latitude and longitude; a map name such as nearest cross streets; a capital asset number in the financial system; a logical name in the distribution system topology; an abbreviated logical name to fit in the distribution management system graphical user interface (DMS GUI); and an IP address for the main network router in the substation.

Different applications may know new data by association with one of those names, and that name may need translation to be used in a query with another application. While rewriting the applications to a common model may seem appealing, it may very well send a CIO into shock. While the smart grid should help propagate intelligence throughout the utility, this doesn’t necessarily mean to replace everything, but it should “information-enable” everything.

Interoperability is essential at both a service level and at the application level. Some vendors focus more at the service, but consider, for example, making a cell phone call from the U.S. to France – your voice data may well be code division multiple access (CDMA) in the U.S., travel by microwave and fiber along its path, and emerge in France in a global system for mobile (GSM) environment, yet your speech, the “application level data,” is retained transparently (though technology does not yet address accents!).

Hardware

The world of computerized solutions does not speak to software alone. For instance, AMI storage consolidation addresses the concern that the volume of data coming into the utility will be increasing exponentially. As more meter data can be read in an on-demand fashion, data analytics will be employed to properly understand it all, requiring a sound hardware architecture to manage, back-up and feed the data into the analytics engines. In particular, storage is needed in the head-end systems and the meter-data management systems (MDMS).

Head-end systems pull data from the meters to provide management functionality while the MDMS collects data from head-end systems and validates it. Then the data can be used by billing and other business applications. Data in both the head-end systems and the master copy of the MDMS is replicated into multiple copies for full back up and disaster recovery. For MDMS, the master database that stores all the aggregated data is replicated for other business applications, such as customer portal or data analytics, so that the master copy of the data is not tampered with.

Since smart grid is essentially performing in real time, and the electricity business is non-stop, one must think of hardware and software solutions as needing to be fail-safe with automated redundancy. The AMI data especially needs to be reliable. The key factors then become: operating system stability; hardware true memory access speed and range; server and power supply reliability; file system redundancy such as a JFS; and techniques such as FlashCopy to provide a point-in-time copy of a logical drive.

Flash Copy can be useful in speeding up database hot backups and restore. VolumeCopy can extend the replication functionality by providing the ability to copy contents of one volume to another. Enhanced remote mirroring (Global Mirror, Global Copy and Metro Mirror) can provide the ability to mirror data from one storage system to another, over extended distances.

Conclusion

Those are seven key ingredients for designing or evaluating a recipe for success with regard to implementing the smart grid at your utility. Addressing these dimensions will help achieve a solid foundation for a comprehensive smart grid computing system architecture.

Thinking Smart

For more than 30 years, Newton- Evans Research Company has been studying the initial development and the embryonic and emergent stages of what the world now collectively terms the smart, or intelligent, grid. In so doing, our team has examined the technology behind the smart grid, the adoption and utilization rates of this technology bundle and the related market segments for more than a dozen or so major components of today’s – and tomorrow’s – intelligent grid.

This white paper contains information on eight of these key components of the smart grid: control systems, smart grid applications, substation automation programs, substation IEDs and devices, advanced metering infrastructure (AMI) and automated meter-reading devices (AMR), protection and control, distribution network automation and telecommunications infrastructure.

Keep in mind that there is a lot more to the smart grid equation than simply installing advanced metering devices and systems. A large AMI program may not even be the correct starting point for hundreds of the world’s utilities. Perhaps it should be a near-term upgrade to control center operations or to electronic device integration of the key substations, or an initial effort to deploy feeder automation or even a complete production and control (P&C) migration to digital relaying technology.

There simply is not a straightforward roadmap to show utilities how to develop a smart grid that is truly in that utility’s unique best interests. Rather, each utility must endeavor to take a step back and evaluate, analyze and plan for its smart grid future based on its (and its various stakeholders’) mission, its role, its financial and human resource limitations and its current investment in modern grid infrastructure and automation systems and equipment.

There are multiple aspects of smart grid development, some of which involve administrative as well as operational components of an electric power utility, and include IT involvement as well as operations and engineering; administrative management of customer information systems (CIS) and geographic information systems (GIS) as well as control center and dispatching operation of distribution and outage management systems (DMS and OMS); substation automation as well as true field automation; third-party services as well as in-house commitment; and of course, smart metering at all levels.

Space Station

I have often compared the evolution of the smart grid to the iterative process of building the international space station: a long-term strategy, a flexible planning environment, responsive changes incorporated into the plan as technology develops and matures, properly phased. What function we might need is really that of a skilled smart grid architect to oversee the increasingly complex duties of an effective systems planning organization within the utility organization.

All of these soon-to-be-interrelated activities need to be viewed in light of the value they add to operational effectiveness and operating efficiencies as well as the effect of their involvement with one another. If the utility has not yet done so, it must strive to adopt a systems-wide approach to problem solving for any one grid-related investment strategy. Decisions made for one aspect of control and automation will have an impact on other components, based on the accumulated 40 years of utility operational insights gained in the digital age.

No utility can today afford to play whack-a-mole with its approach to the intelligent grid and related investments, isolating and solving one problem while inadvertently creating another larger or more costly problem elsewhere because of limited visibility and “quick fix” decision making.

As these smart grid building blocks are put into service, as they become integrated and are made accessible remotely, the overall smart grid necessarily becomes more complex, more communications-centric and more reliant on sensor-based field developments.

In some sense, it reminds one of building the space station. It takes time. The process is iterative. One component follows another, with planning on a system-wide basis. There are no quick solutions. Everything must be very systematically approached from the outset.

Buckets of Spending

We often tackle questions about the buckets of spending for smart grid implementations. This is the trigger for the supply side of the smart grid equation. Suppliers are capable of developing, and will make the required R&D investment in, any aspect of transmission and distribution network product development – if favorable market conditions exist or if market outlooks can be supported with field research. Hundreds of major electric power utilities from around the world have already contributed substantially to our ongoing studies of smart grid components.

In looking at the operational/engineering components of smart grid developments, centering on the physical grid itself (whether a transmission grid, a distribution grid or both), one must include what today comprises P&C, feeder and switch automation, control center-based systems, substation measurement and automation systems, and other significant distribution automation activities.

On the IT and administrative side of smart grid development, one has to include the upgrades that will definitely be required in the near- or mid-term, including CIS, GIS, OMS and wide area communications infrastructure required as the foundation for automatic metering. Based on our internal estimates and those of others, spending for grid automation is pegged for 2008 at or slightly above $1 billion nationwide and will approach $3.5 billion globally. When (if) we add in annual spending for CIS, GIS, meter data management and communications infrastructure developments, several additional billions of dollars become part of the overall smart grid pie.

In a new question included in the 2008 Newton-Evans survey of control center managers, these officials were asked to check the two most important components of near-term (2008-2010) work on the intelligent grid. A total of 136 North American utilities and nearly 100 international utilities provided their comments by indicating their two most important efforts during the planning horizon.

On a summary basis, AMI led in mentions from 48 percent of the group. EMS/ SCADA investments in upgrades, new applications, interfaces et al was next, mentioned by 42 percent of the group. Distribution automation was cited by 35 percent as well.

Spending Outlook

The financial environment and economic outlook do not bode well for many segments of the national and global economies. One question we have continuously been asked well into this year is whether the electric power industry will suffer the fate of other industries and significantly scale back planned spending on T&D automation because of possible revenue erosion given the slowdown and fallout from this year’s difficult industrial and commercial environments.

Let’s first take a summary look at each of the five major components of T&D automation because these all are part and parcel of the operations/engineering view of the smart grid of the future.

Control Systems Outlook: Driven by SCADA-like systems and including energy management systems and distribution management software, this segment of the market is hovering around the $500 million mark on a global scale – excluding the values of turn-key control center projects (engineering, procurement and construction (EPC) of new control center facilities and communications infrastructure). We see neither growth nor erosion in this market for the near-term, with some up-tick in spending for new applications software and better visualization tools to compensate for the “aging” of installed systems. While not a control center-based system, outage management is a closely aligned technology development, and will continue to take hold in the global market. Sales of OMS software and platforms are already approaching the $100 million mark led by the likes of Oracle Utilities, Intergraph and MilSoft.

Substation Automation and Integration Programs: The market for substation IEDs, for new communications implementations and for integration efforts has grown to nearly $500 million. Multiyear programs aimed at upgrading, integrating and automating the existing global base of about a quarter million or so transmission and primary distribution substations have been underway for some time. Some programs have been launched in 2008 that will continue into 2011. We see a continuation of the growth in spending for critical substation A&I programs, albeit 2009 will likely see the slowest rate of growth in several years (less than 3 percent) if the current economic malaise holds up through the year. Continuing emphasis will be on HV transmission substations as the first priority for upgrades and addition of more intelligent electronic devices.

AMI/AMR: This is the lynchpin for the smart grid in the eyes of many industry observers, utility officials and perhaps most importantly, regulators at the state and federal levels of the U.S., Canada, Australia and throughout Western Europe. With nearly 1.5 billion electricity meters installed around the world, and about 93 percent being electro-mechanical, interest in smart metering can also be found in dozens of other countries, including Indonesia, Russia, Honduras, Malaysia, Australia, and Thailand. Another form of smart meters, the prepayment meter, is taking hold in some of the developing nations of the world. The combined resources of Itron, coupled with its Actaris acquisition, make this U.S. firm the global share leader in sales and installations of AMI and AMR systems and meters.

Protection and Control: The global market for protective relays, the foundation for P&C has climbed well above $1.5 billion. Will 2009 see a drop in spending for protective relays? Not likely, as these devices continue to expand in capabilities, and undertake additional functions (sequence of event recording, fault recording and analysis, and even acting as a remote terminal unit). To the surprise of many, there is still a substantial amount (perhaps as much as $125 million) being spent annually for electro-mechanical relays nearly 20 years into the digital relay era. The North American leader in protective relay sales to utilities is SEL, while GE Multilin continues to hold a leading share in industrial markets.

Distribution Automation: Today, when we discuss distribution automation, the topic can encompass any and all aspects of a distribution network automation scheme, from the control center-based SCADA and distribution management system on out to the substation, where RTUs, PLCs, power meters, digital relays, bay controllers and a myriad of communicating devices now help operate, monitor and control power flow and measurement in the medium voltage ranges.

Nonetheless, it is beyond the substation fence, reaching further down into the primary and secondary network, where we find reclosers, capacitors, pole top RTUs, automated overhead switches, automated feeders, line reclosers and associated smart controls. These are the new smart devices that comprise the basic building blocks for distribution automation. The objective will be achieved with the ability to detect and isolate faults at the feeder level, and enable ever faster service restoration. With spending approaching $1 billion worldwide, DA implementations will continue to expand over the coming decade, nearing $2.6 billion in annual spending by 2018.

Summary

The T&D automation market and the smart grid market will not go away this year, nor will it shrink. When telecommunications infrastructure developments are included, about $5 billion will have been spent in 2008 for global T&D automation programs. When AMI programs are adding into the mix, the total exceeds $7 billion. T&D automation spending growth will likely be subdued, perhaps into 2010. However, the overall market for T&D automation is likely to be propped up to remain at or near current levels of spending for 2009 and into 2010, benefiting from the continued regulatory-driven momentum for AMI/ AMR, renewable portfolio standards and demand response initiatives. By 2011, we should once again see healthier capital expenditure budgets, prompting overall T&D automation spending to reach about $6 billion annually. Over the 2008-2018 periods, we anticipate more than $75 billion in cumulative smart grid expenditures.

Expenditure Outlook

Newton-Evans staff has examined the current outlook for smart grid-related expenditures and has made a serious attempt to avoid double counting potential revenues from all of the components of information systems spending and the emerging smart grid sector of utility investment.

While the enterprise-wide IT portions (blue and red segments) of Figure 1 include all major components of IT (hardware, software, services and staffing), the “pure” smart grid components tend to be primarily in hardware, in our view. Significant overlap with both administrative and operational IT supporting infrastructure is a vital component for all smart grid programs underway at this time.

Between “traditional IT” and the evolving smart grid components, nearly $25 billion will likely be spent this year by the world’s electric utilities. Nearly one-third of all 2009 information technology investments will be “smart grid” related.

By 2013, the total value of the various pie segments is expected to increase substantially, with “smart grid” spending possibly exceeding $12 billion. While this amount is generally understood to be conservative, and somewhat lower than smart grid spending totals forecasted by other firms, we will stand by our forecasts, based on 31 years of research history with electric power industry automation and IT topics.

Some industry sources may include the total value of T&D capital spending in their smart grid outlook.

But that portion of the market is already approaching $100 billion globally, and will likely top $120 billion by 2013. Much of that market would go on whether or not a smart grid is involved. Clearly, all new procurements of infrastructure equipment will be made with an eye to including as much smart content as is available from the manufacturers and integrators.

What we are limiting our definition to is edge investment, the components of the 21st century digital transport and delivery systems being added on or incorporated into the building blocks (power transformers lines, switchgear, etc.) of electric power transmission and delivery.

Is Your Mobile Workforce Truly Optimized?

ClickSoftware is the leading provider of mobile workforce management and service optimization solutions that create business value for service operations through higher levels of productivity, customer satisfaction and cost effectiveness. Combining educational, implementation and support services with best practices and its industry leading solutions, ClickSoftware drives service decision making across all levels of the organization.

Our mobile workforce management solution helps utilities empower mobile workers with accurate, real-time information for optimum service and quick on-site decision making. From proactive customer demand forecasting and capacity planning to real-time decision making, incorporating scheduling, mobility and location- based services, ClickSoftware helps service organizations get the most out of their resources.

The IBM/ClickSoftware alliance provides the most comprehensive offering for Mobile Workforce and Asset Management powering the real-time service enterprise. Customers can benefit from maximized workforce productivity and customer satisfaction while controlling, and then minimizing, operational costs.

ClickSoftware provides a flexible, scalable and proven solution that has been deployed at many utility companies around the world. Highlights include the ability to:

  • Automatically update the schedule based on real-time information from the field;
  • Manage crews (parts and people);
  • Cover a wide variety of job types within one product: from short jobs requiring one person to multi-stage jobs requiring a multi-person team over several days or weeks;
  • Balance regulatory, environmental and union compliance;
  • Continuously strive to raise the bar in operational excellence;
  • Incorporate street-level routing into the decision making process; and
  • Plan for the catastrophic events and seasonal variability in field service operations.

The resulting value proposition to the customer is extremely compelling:

  • Typically, optimized scheduling and routing of the mobile workforce generates a 31 percent increase in jobs per day vs. the industry average. (Source: AFSMI survey, 2003)
  • A variety of solutions, ranging from entry level to advanced, that directly address the broad spectrum of pains experienced by service organizations around the world, including optimized scheduling, routing, mobile communications and integration of solutions components – within the service optimization solution itself and also into the CRM/ERP/ EAM back end.
  • An entry level offering with a staged upgrade path toward a fully automated service optimization solution ensures that risk is managed and the most challenging of customer requirements may be met. This “least risk” approach for the customer is delivered by a comprehensive set of IBM business consulting, installation and support services.
  • The industry-proven credibility of ClickSoftware’s ServiceOptimization Suite, combined with IBM’s wireless middleware, software, hardware and business consulting services provides the customer with the most effective platform for managing its field service operations.

ClickSoftware’s customers represent a cross-section of leaders in the utilities, telecommunications, computer and office equipment, home services and capital equipment industries. Over 100 customers around the world have deployed ClickSoftware workforce and service optimization solutions and services to achieve optimal levels of field service.

At Your Service

Today’s utility companies are being driven to upgrade their aging transmission and distribution networks in the face of escalating energy generation costs, serious environmental challenges and rising demand for cleaner, distributed generation from both developing and digital economies worldwide.

The current utilities environment requires companies to drive down costs while increasing their ability to monitor and control utility assets. Yet, due to aging infrastructure, many utilities operate without the benefit of real-time usage and distribution loads – while also contending with limited resources for repair and improvement. Even consumers, with climate change on their minds, are demanding that utilities find more innovative ways to help them reduce energy consumption and costs.

One of the key challenges facing the industry is how to take advantage of new technologies to better manage customer service delivery today and into the future. While introducing this new technology, utilities must keep data and networks secure to be in compliance with critical infrastructure protection regulations. The concept of “service management” for the smart grid provides an approach for getting started.

A Smart Grid

A smart grid is created with new solutions that enable new business models. It brings together processes, technology and business partners, empowering utilities with an IP-enabled, continuous sensing network that overlays and connects a utility’s equipment, devices, systems, customers, partners and employees. A smart grid also enables on-demand access to data and information, which is used to better manage, automate and optimize operations and processes throughout the utility.

A utility relies on numerous systems, which reside both within and outside their physical boundaries. Common internal systems include: energy trading systems (ETS), customer information systems (CIS), supervisory control and data acquisition systems (SCADA), outage management systems (OMS), enterprise asset management (EAM); mobile workforce management systems (MWFM), geospatial information systems (GIS) and enterprise resource planning systems (ERP).

These systems are purchased from multiple vendors and often use a variety of protocols to communicate. In addition, utilities must interface with external systems – and often integrate all of them using a point-to-point model and establish connectivity on an as-needed basis. The point-to-point approach can result in numerous complex connections that need to be maintained.

Service Management

The key concept behind service management is the idea of managing assets, networks and systems to provide a “service,” as opposed to simply operating the assets. For example, Rolls Royce Civil Aerospace division uses this concept to sell “pounds of thrust” as a service. Critical to a utility’s operation is the ability to manage all facets of the services being delivered. Also critical to the operation of the smart grid are new solutions in advanced meter management (AMM), network automation and analytics, and EAM, including meter asset management.

A service management platform provides a way for utility companies to manage the services they deliver with their enterprise and information technology assets. It provides a foundation for managing the assets, their configuration, and the interrelationships key to delivering services. It also provides a means of defining workflow for the instantiation and management of the services being delivered. Underlying this platform is a range of tools that can assist in management of the services.

Gathering and analyzing data from advanced meters, network components, distribution devices, and legacy SCADA systems provides a solid foundation for automating service management. When combined with the information available in their asset management systems, utility companies can streamline operations and make more efficient use of valuable resources.

Advanced Reading

AMM centers on a more global view of the informational infrastructure, examining how automatic meter reading (AMR) and advanced metering infrastructure (AMI) integrate with other information systems to provide value-added benefits. It is important to note that for many utilities, AMM is considered to be a “green” initiative since it has the ability to influence customer usage patterns and, therefore, lower peak demand.

The potential for true business transformation exists through AMM, and adopting this solution is the first stage in a utility’s transformation to a more information-powered business model. New smart meters are network addressable, and along with AMM, are core components of the grid. Smart meters and AMM provide the capability to automatically collect usage data in near real time and to transport meter reads at regular intervals or on demand.

AMR/AMIs that aggregate their data in collection servers or concentrators, and expose it through an interface, can be augmented with event management products to monitor the meter’s health and operational status. Many organizations already deploy these solutions for event management within a network’s operations center environments, and for consolidated operations management as a top-level “manager of managers.”

A smart grid includes many devices other than meters, so event management can also be used to monitor the health of the rest of the network and IT equipment in the utility infrastructure. Integrating meter data with operations events gives network operations center operators a much broader view of a utility’s distribution system.

These solutions enable end-to-end data integration, from the meter collection server in a substation to the back-end helpdesk and billing applications. This approach can lead to improved speed and accuracy of data, while leveraging existing equipment and applications.

Network Automation and Analytics

Most utility companies use SCADA systems to collect data from sensors on the energy grid and send events to applications with SCADA interfaces. These systems collect data from substations, power plants and other control centers. They then process the data and allow for control actions to be sent back out. Energy management and distribution management systems typically provide additional features on top of SCADA, targeting either the transmission or distribution grids.

SCADA systems are often distributed on several servers (anywhere from two to 100) connected via a redundant local area network. The SCADA system, in turn, communicates with remote terminal units (RTUs), other devices, and other computer networks. RTUs reside in a substation or power plant, and are hardwired to other devices to bring back meaningful information such as current megawatts, amps, volts, pressure, open/closed or tripped. Distribution business units within a utility company also utilize SCADA systems to track low voltage applications, such as meters and pole drops, compared to the transmission business units’ larger assets, including towers, circuits and switchgear.

To facilitate network automation, IT solutions can help utilities to monitor and analyze data from SCADA systems in real time, monitor the computer network systems used to deploy SCADA systems, and better secure the SCADA network and applications using authentication software. An important element of service management is the use of automation to perform a wide range of actions to improve workfl ow efficiency. Another key ingredient is the use of service level agreements (SLAs) to give a business context for IT, enabling greater accountability to business user needs, and improving a utility’s ability to prioritize and optimize.

A smart grid includes a large number of devices and meters – millions in a large utility – and these are critical to a utility’s operations. A combination of IT solutions can be deployed to manage events from SCADA devices, as well as the IT equipment they rely on.

EAM For Utilities

Historically, many utility companies have managed their assets in silos. However, the emergence of the smart grid and smart meters, challenges of an aging workforce, an ever-demanding regulatory environment, and the availability of common IT architecture standards, are making it critical to standardize on one asset management platform as new requirements to integrate physical assets and IT assets arise (see Figure 1).

Today, utility companies are using EAM to manage work in gas and electric distribution operations, including construction, inspections, leak management, vehicles and facilities. In transmission and substation, EAM software is used for preventative and corrective maintenance and inspections.

EAM also helps track financial assets such as purchasing, depreciation, asset valuation and replacement costs. This solution helps integrate this data with ERP systems, and stores the history of asset testing and maintenance management. It integrates with GIS or other mapping tools to create geographic and spatial views of all distribution and smart grid assets.

Meter asset management is another area of increasing interest, as meters have an asset lifecycle similar to most other assets in a utility. Meter asset management involves tracking the meter from receipt to storeroom, to truck, to final location – as compared to managing the data the meter produces.

Now there is an IT asset management solution with the ability to manage meters as part of the IT network. This solution can be used to provision the meter, track configurations and provide service desk functionality. IT asset management solutions also have the ability to update meter firmware, and easily move and track the location and status of the assets over time in conjunction with a configuration database.

Reducing the number of truck rolls is another key focus area for utility companies. Using a combination of solutions, companies can:

  • Better manage the lifecycles of physical assets such as meters, meter cell relays, and broadband over powerline (BPL) devices to improve preventive maintenance;
  • Reconcile deployed asset information with information collected by meter data management systems;
  • Correlate the knowledge of physical assets with problems experienced with the IT infrastructure to better analyze a problem for root cause; and
  • Establish more efficient business process workflows and strengthen governance across a company.

Utilities are facing many challenges today and taking advantage of new technologies that will help better manage the delivery of service to customers tomorrow. The deployment of the smart grid and related solutions is a significant initiative that will be driving utilities for the next 10 years or more.

The concept of “service management” for the smart grid provides an approach for getting started. But these do not need to be tackled all at once. Utilities should develop a roadmap for the smart grid; each one will depend on specific priorities. But utilities don’t have to go it alone. The smart grid maturity model (SGMM) can enable a utility to develop a roadmap of activities, investments and best practices to ensure success and progress with available resources.

Empowering the Smart Grid

Trilliant is the leader in delivering intelligent networks that power the smart grid. Trilliant provides hardware, software and service solutions that deliver on the promise of Advanced Metering and Smart Grid to utilities and their customers, including improved energy efficiency, grid reliability, lower operating cost, and integration of renewable energy resources.

Since its founding in 1985, the company has been a leading innovator in the delivery and implementation of advanced metering infrastructure (AMI), demand response and grid management solutions, in addition to installation, program management and meter revenue cycle services. Trilliant is focused on enabling choice for utility companies, ranging from meter, network and IT infrastructures to full or hybrid outsource models.

Solutions

Trilliant provides fully automated, two-way wireless network solutions and software for smart grid applications. The company’s smart grid communications solutions enable utilities to create a more efficient and robust operational infrastructure to:

  • Read meters on demand with five minute or less intervals;
  • Improve cash flow;
  • Improve customer service;
  • Decrease issue resolution time;
  • Verify outages and restoration in real time;
  • Monitor substation equipment;
  • Perform on/off cycle reads;
  • Conduct remote connect/disconnect;
  • Significantly reduce/eliminate energy theft through tamper detection; and
  • Realize accounting/billing improvements.

Trilliant solutions also enable the introduction of services and programs such as:

  • Dynamic demand response; and
  • Time-of-use (TOU), critical peak pricing (CPP) and other special tariffs and related metering.

Solid Customer Base

Trilliant has secured contracts for more than three million meters to be supported by its network solutions and services, encompassing both C&I and residential applications. The company has delivered products and services to more than 200 utility customers, including Duke Energy, E.ON US (Louisville Gas & Electric), Hydro One, Hydro Quebec, Jamaica Public Service Company Ltd., Milton Hydro, Northeast Utilities, PowerStream, Public Service Gas & Electric, San Diego Gas & Electric, Toronto Hydro Electric System Ltd., and Union Gas, among others.

Shaping a New Era in Energy

In the last few years, the world has seen the energy & utilities business accelerate into a significant period of transformation as a result of the smart grid and related technologies. Today, with some early proponents leading the way, the industry is on the verge of a step-change improvement that some might even classify as a full-scale revolution. Utilities are viewed not only as being a critical link in solving the challenges we face related to climate change and the care of our planet’s energy resources, but they’re becoming enablers of growth and innovation – and even new products, services and jobs. Clearly the decisions the industry is making today around the world’s electricity networks will impact our lives for decades to come.

If the current economic environment has muted any enthusiasm for this transformation, it hasn’t been much. With the exception, perhaps, of plummeting oil prices temporarily providing some sense of calm in the sector, there are probably few people left who don’t believe the world needs to urgently address its clean, smart energy future. As of this writing, fledgling signs of an economic recovery are emerging, and along with it, increases in fossil fuel prices. As such, enthusiasm is growing over the debate about how countries will utilize billions in stimulus funding to enable the industry to achieve a new level of greatness.

There is a confluence of events helping us along this path of dramatic and beneficial change. IBM’s recent industry consumer survey (selected findings of which are featured in this publication in "Lighting the Way" by John Juliano) signals a future that is being shaped in part by a younger generation of digitally savvy people who care about – and are willing to participate in – our collective energy future. They willingly engage in more open communication with utility providers and tend to be better at understanding and controlling energy utilization.

As utilities instrument virtually all elements of the energy value chain from the power plant to the plug, they will improve service quality to these customers while reducing cost and improving reliability to a degree never before achievable. Customers engage because they see themselves as part of a larger movement to forestall the effects of climate change, or to battle price instability. This fully connected, instrumented energy ecosystem takes advantage of the data it collects, applying advanced analytics to enable real-time decisions on energy consumption. Some smart grid projects are already helping consumers save 10% of their bills, and reduce peak demand by 15%. Imagine the potential total savings when this is scaled to include companies, governments and educational institutions.

While positive new developments abound, they also are creating a highly complex environment, raising many difficult questions. For example, are families and businesses truly prepared to go on a "carbon diet" and will they stay on it? How will governments, with their increased stake in auto manufacturers, effectively and efficiently manage the transition toward PHEVs? Will industry players collaborate with one another to deal with stealth attacks on smart grids that are no longer the stuff of spy novels, but current realities we must face 24/7? How do we responsibly support the resurgence of nuclear-based power generation?

Matters of investment are also complex. Will there be sufficient public/private partnership to effectively stimulate investment in new businesses and models to profitably progress safe alternative energy forms such as solar, tidal, wind, geothermal and others? Will we have the "smarts" – and the financial commitment – to build more smarts into the reconstruction of ailing infrastructures?

Leading the Way

IBM has been a leading innovator in smart grid technology, significantly investing in energy and environmental programs designed to promote the use of intelligent energy worldwide. We created the Global Intelligent Utility Network Coalition, a strategic relationship with a small group of select utilities from around the world to shape, accelerate and share in the development of the smart grid. With the goal to lead industry organizations to smart grid transformation, we actively lead and participate in a host of global organizations including the GridWise® Alliance, Gridwise Architecture Council, EPRI’s Intelligrid program, and the World Energy Council, among others. By coming together around a shared vision of a smarter grid, we have an unprecedented opportunity to reshape the energy industry and our economic future.

The IBM experts who engage in these groups – along with the thousands of other IBMers working in the industry – have contributed significant thinking to the industry’s progress, not the least of which is the creation of the Smart Grid Maturity Model (SGMM) which has been handed over to the Carnegie Mellon Software Engineering Institute (SEI) for ongoing governance, growth and evolution of the model. Furthermore, the World Energy Council (WEC) has become a channel for the global dissemination of the model among its worldwide network of member committees.

IBM’s own Intelligent Utility Network (IUN) solution enables a utility to instrument everything from the meter in the home to miles of power lines to the network itself. In fact, the IUN looks a lot more like the Internet than a traditional grid. It can be interconnected to thousands of power sources – including climate-friendly ones – and its instrumentation generates new data for analysis, insight and intelligence that can be applied for the benefit of businesses and consumers alike.

Our deep integration skills, leading-edge technology, partner ecosystem and business and regulatory expertise have earned us roles in more than 50 smart grid projects around the globe with showcase projects in the U.S. Pacific Northwest, Texas, Denmark and Malta (See "The Smart Grid in Malta" by Carlo Drago in this publication) to name just a few. IBM also has a role in seven out of the world’s 10 largest advanced meter management projects.

The IBM Solution Architecture for Energy (SAFE), is a specialized industry framework focused on the management, maintenance, and integration of a utility’s assets and information, inclusive of generation, transmission and distribution, and customer operations. This is complemented by a world-class solution portfolio based on the most comprehensive breadth of hardware, software, consulting services, and open standards-based IT infrastructure that can be customized to meet the needs of today’s energy and utilities enterprises around the globe.

These activities are augmented by the renowned IBM Research organization that engages in both industry-specific and cross-industry research that influences our clients’ progress. This includes new computing models to handle the proliferation of end-user devices, sensor and actuators, connecting them with powerful back-end systems. How powerful? In the past year IBM’s Roadrunner supercomputer broke the "petaflop" barrier – one thousand trillion calculations per second using standard chip sets. Combined with advanced analytics and new computing models like "clouds" we’re turning mountains of data into intelligence, making systems like the smart grid more efficient, reliable and adaptive – in a word, smarter.

IBM Research also conducts First-of-a-Kind research – or FOAKs – in partnership with our clients, turning promising research into market-ready products and services. And our Industry Solution Labs around the world give IBM clients the chance to discover how leading-edge technologies and innovative solutions can be assembled and proven to help solve real business problems. For example, we’re exploring how to turn millions of future electric vehicles into a distributed storage system, and we maintain a Center of Excellence for Nuclear Power to improve design, safety analysis, operation, and nuclear modeling / simulation processes.

IBM is excited to be at the forefront of this changing industry – and our changing world. And we’re honored to be working closely with our clients and business partners in helping to evolve a smarter planet.

The Smart Grid Maturity Model

The software industry has been using maturity models to define and measure software development capabilities for decades. These models have helped the industry create a shared vision for these capabilities. They also have driven individual software development organizations to set and pursue aggressive capabilities goals while allowing these groups to measure progress in reaching those objectives along the way.

As the utility industry embarks on the complex and ambitious transformation of the outdated power grid to the new smart grid, it has struggled to develop a shared vision for the smart grid end-state and the path to its development and deployment. Now, the smart grid maturity model (SGMM) is helping the industry overcome these challenges by presenting a consensus vision of the smart grid, the benefits it can bring and the various levels of smart grid development and deployment maturity. SGMM is helping numerous utilities worldwide develop targets for their smart grid strategy, and build roadmaps of the activities, investments and best practices that will lead them to their future smart grid state.

IBM worked closely with members of the Intelligent Utility Network Coalition (IUNC) to develop, discuss and revise several drafts of the SGMM. This team was assisted by APQC, a member-based nonprofit organization that provides benchmarking and best-practice research for approximately 500 organizations worldwide. The goal in the development process was to ensure the SGMM reflects a consensus industry vision for the smart grid, and brings together a wide range of industry experts to define the technical, organizational and process details supporting that vision.

APQC has a long history of benchmarking, performance measurement and maturity definition, and was therefore able to provide critical experience to drive development of a clear, measureable maturity model. IBM has worked on smart grid initiatives with numerous utilities around the world, and provided guidance and some initial structure to help start the development process. But the most important contributors to the SGMM were utilities themselves, as they brought a wealth of deep technical and strategic knowledge to build a shared vision of the smart grid and the various stages of maturity that could be achieved.

Because of this consensus development process, the SGMM reflects a broad industry vision for the smart grid, and it now gives utilities a tool for both strategic and tactical use to guide, measure and assess a utility’s smart grid transformation:

Strategic uses of the SGMM:

  • Establish a shared vision for the smart grid journey;
  • Communicate the smart grid vision, both internally and externally;
  • Use as a strategic framework for evaluating smart grid business and investment objectives;
  • Plan for technological, regulatory, and organizational readiness; and
  • Benchmark and learn from others

Tactical uses of the SGMM:

  • Guide development of a specific smart grid roadmap or blueprint;
  • Assess and prioritize current smart grid opportunities and projects;
  • Use as a decision-making framework for smart grid investments;
  • Assess resource needs to move from one smart grid level to another; and
  • Measure smart grid progress using key performance indicators (KPIs).

The SGMM structure is based on three fundamental concepts:

Domains: eight logical groupings of functional components of a smart grid transformation implementation;

Maturity Levels: five sets of defined characteristics and outcomes; and

Characteristics: descriptions of over 200 capabilities that are expected at each stage of the smart grid journey.

As Figure 1 shows, the domains span eight areas covering people, technology, and process, and comprise all of the fundamental components of smart grid capabilities.

Maturity levels range from an entry level of 1, up to a top level of 5, and can be summarized as follows:

Level 1 – Exploring and Initiating: contemplating smart grid transformation; may have a vision, but no strategy yet; exploring options; evaluating business cases and technologies; may have some smart grid elements already deployed.

Level 2 – Functional Investing: making decisions, at least at a functional level; business cases in place and investments being made; one or more functional deployments under way with value being realized; strategy in place.

Level 3 – Integrating Cross Functional: smart grid spreading; operational linkages established between two or more functional areas; management ensuring decisions span functional interests, resulting in cross-functional benefits.

Level 4 – Optimizing Enterprise-Wide: smart grid functionality and benefits realized; management and operational systems rely on and take full advantage of observability and integrated control, both across and between enterprise functions.

Level 5 – Innovating Next Wave of Improvements: new business, operational, environmental, and societal opportunities present themselves, and the capability exists to take advantage of them.

It is important to note that a utility may not choose to target maturity level 5 in every domain – in fact, it may not target level 5 for any domain. Instead, each utility using the SGMM must consider its own strategic direction and performance goals, and then decide on the levels of smart grid maturity that will support those goals to determine the target maturity in each domain. For example, a utility that is strategically focused on the retail side of the business may want to achieve relatively high maturity in the customer management and experience domain, but have a much lower target for maturity in the grid operations domain.

The key point is that the SGMM is not a report card with those utilities reaching the highest maturity levels "winning the game." Instead, each utility uses the SGMM to understand how the smart grid can help optimize its planning and investment to achieve its aspirations.

With over 200 characteristics describing the capabilities for each domain and maturity level, it is not possible to describe them here, but an example of a typical characteristic shown in Figure 2 provides a good sense of the level of detail in each characteristic of the SGMM.

Taken together, the domains, maturity levels, and characteristics form a detailed matrix that describes smart grid maturity across all critical areas.

Evaluating Smart Grid Maturity

A utility uses two surveys in conjunction with the SGMM structure described above to: assess its smart grid maturity; and track its progress and the resulting benefits during deployment. The first survey is the maturity assessment, which asks a series of about 40 questions that cover the current state of the utility’s smart grid strategy and spending, and the current penetration of smart grid capabilities into various areas of the business. The assessment yields a detailed report, providing the results for each domain, as well as higher-level reports that show the broader view of the utility’s current state and aspirations for the smart grid.

In this example, the utility’s current smart grid maturity is shown by the green circles, while its maturity aspirations are shown by the yellow circles. This highlevel view can be very useful as support for detailed plans on how to get from current state to aspirational state. It is also helpful for conveying maturity concepts and results to various stakeholders – both inside and outside the utility.

The second survey is the opportunity and results survey, which focuses on KPIs that track progress in smart grid deployment, as well as realization of the resulting benefits. For example, many questions in the survey cover grid operations, with the focus on cost, reliability and penetration of smart grid capabilities into the "daily life" of grid operations. The survey is expected to be completed annually, allowing each utility using the SGMM to track its deployment progress and benefits realization.

Using SGMM Results

The results from the SGMM can be applied in many ways to gauge a utility’s smart grid progress. From a practical management standpoint, the following important indicators can be derived directly from the SGMM process:

  • How the utility compares to other survey participants overall;
  • Where the utility has deficiencies in one domain that may adversely affect other domains;
  • Effects of being potentially projectoriented rather than program-driven, resulting in a jagged, "peaks and valleys" maturity profile with uneven advancement;
  • Indications that some domains are too far ahead of others, resulting in the risk of putting the "cart before the horse;" and
  • Confirmation of progress in domains that have been given particular focus by the utility, and indications of domains that may require increased focus.

More broadly, completion of the SGMM surveys provide a utility with the information needed to establish a shared smart grid vision with both internal and external stakeholders, mesh that vision with the utility’s overall business strategy to set maturity targets, and then build a detailed roadmap for closing the gaps between the current and target maturity levels.

Transition of SGMM Stewardship

IBM has been pleased to work with APQC and members of the IUNC to support definition and early roll-out of the SGMM. But as an important and evolving industry tool, IBM believes that the SGMM should be supported and maintained by a broader group. Therefore, we are planning to transition to a stewardship model with three organizations each playing a critical role:

  • Governance, Management, and Growth: the Carnegie Mellon Software Engineering Institute will govern the SGMM, working in conjunction with Carnegie Mellon University and the Carnegie Mellon Electricity Industry Center. The institute and its 500 employees will leverage its 20 years of experience as stewards of the Capability Maturity Model for software development.
  • Global Stakeholder Representation and Advocacy: the World Energy Council will provide representation for stakeholders around the globe. The council was established in 1923, represents 95 member countries and regularly hosts the World Energy Congress. Its mission is to promote the sustainable supply and use of energy for the greatest benefit of all people. This mission fits well with the development of the smart grid and the expanding use of the SGMM.
  • Data Collection and Reporting: APQC will provide further support for the SGMM survey process. With over 30 years of quality and process improvement research, APQC will continue the work it has done to date to assist utilities in assessing their smart grid maturity and tracking their progress during deployment.

Summary

All utilities should consider using the SGMM as they develop their vision for the smart grid and begin to plan and execute the projects that will take them on the journey. The SGMM represents the best strategic and technical thinking of a broad cross-section of the utility industry. We believe that the SGMM will continue to represent a thoughtful and consensus view as the smart grid – and the technology that supports it – evolves over the next few years.