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Critical
Infrastructure Determines Long-Term Strategy, Part I |
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The
first part of this two-part article will discuss network infrastructure and
implementing the right network.
Energy
Conservation. Energy
Efficiency. Go Green. Clean Tech. Smart Grid. The utility industry has
enacted a number of initiatives with a common goal -- improving the quality,
value and long-term sustainability of electricity delivery. Utility executives
are being challenged to chart a course for the next century of utility services
and prepare the grid for changing and often-unknown demands of their customers.
Utility issues are moving beyond traditional revenue-cycle services to embrace
energy efficiency, alternative generation and improve customer service.
For the
past 20 years, the industry has focused considerable resources on automated
meter reading, primarily intended to improve the accuracy and cost of monthly
revenue reads. Today focus has broadened to a number of related applications
leveraging the same technology assets. Dynamic pricing programs hold great
promise for flattening the load curve, but require more sophisticated and
granular measurement. This expansion of demand response creates significant
opportunities in both commodity hedging and customer services, but may also change the economics of distributed generation.
Increases in distributed generation will have untold impact on distribution
operation, expanding the need for distribution automation beyond the
substation. The convergence of these varied and interrelated applications is
creating exciting opportunities to reshape the nature of electric delivery.
Utility
leaders are developing comprehensive strategies to implement and support a
variety of new applications that move well beyond meter reading. Understanding
the cumulative requirements of these operational initiatives leads to the
recognition that an advanced networking infrastructure is required to
efficiently manage the many devices that crate a "smart grid." The
right network brings smart devices "on line" and allows for real-time
command and control of the entire distribution.
Utilities'
ability to realize the vision of a smart grid is largely determined by their
choosing the right network infrastructure: one that is functionally capable and
cost-effective today, yet will support future (and
often unknown) requirements. Advanced networking from the substation to -- and
into -- the premise creates the fundamental platform on which smart grid
initiatives are built. The right network infrastructure provides secure and
seamless connectivity, supporting any utility application. Innovative,
standards-based applications can leverage smart grid assets, turning new
concepts into new products.
The
practice of a common network infrastructure supporting a number of applications
is not new. For example, consider the Ethernet system installed in most
offices. When the network was installed, it was intended to support a variety
of applications, including email, Web browsing, video delivery and more.
However, it was not necessary to decide up front all of the computers, printers
or applications that would ever run over that network. By choosing a
standards-based network with the right performance characteristics, new
technologies are easily and seamlessly incorporated onto the network.
Utilities
that make the right strategic decisions regarding the networking platform to
deliver the smart grid will enjoy similar flexibility and business value
creation. Failure to make the right networking choice may result in a utility's
future initiatives being hampered by the limitations of its network.
Defining
Your Smart Grid
The first
step in implementing the right network requires a utility to develop a
strategic plan and define the technical, performance and price characteristics
needed to support both current and future applications. Input from all areas of
the utility operation should be included, as all departments are affected by --
and can benefit from -- the smart grid. Operational use cases that consider
both current and anticipated needs should be reviewed, including representation
from customer service, metering, distribution operations, information
technology, revenue protection, regulatory and rate making. A considerable body
of work is available to assist in this effort, including published documents
from EPRI, GridWise and UtilityAMI.
Open, Not
Closed
Next,
technical requirements of the advanced utility network need to be defined to
support the operational requirements of the business. Given the variety of devices
and interrelations between several applications, use of single-purpose or
proprietary networking should be avoided. Implementing these technologies
increases complexity and cost, while simultaneously decreasing long-term
flexibility. Standards-based networking is the safest, surest route when
specifying the network infrastructure of the smart grid.
The
dominant standard in networking is Internet protocol, known simply as IP.
Beyond the World Wide Web, IP is the networking standard used in managing nearly
all telecommunications, cable and information technology applications. Hundreds
of billions of dollars in collective research and development make IP the gold
standard for mission-critical networking around the world.
IP
addresses many of the challenges of running multiple applications and devices
on the same network. The IP suite delivers proven technologies for addressing,
routing, quality of service and a host of related networking functions, all
demonstrated at scale. With IP, vendors can compete to develop best-of-breed
products for a variety of applications, yet share a common network
infrastructure to minimize cost and complexity.
Security
via Proven Technology
Historically,
security in many remote utility applications consisted solely of "obscurity"
created through the use of proprietary products or the use of simple passwords
that were rarely changed. The move to sophisticated command-and-control
applications mandates significantly more proven and robust security across the
entire grid.
A number
of proven IP security technologies (for example, IPSEC or SSL) are available to
address this need. These technologies are widely used in a number of
industries, including securing financial transactions over the Web, to manage a
range of security concerns. Most importantly, these technologies are constantly
improving due to the collective efforts of countless vendors. IP suite security
technologies allow utilities to effectively address concerns of spoofing,
denial of service and unauthorized access without the requirement of
reinventing new technologies or relying on the efforts of a single vendor.
The
second part of this two-part article will address further steps to take in
developing the technical requirements of the smart grid network, and how to
"build it right."
Editor's
Note: This article originally
appeared in The Energy & Utilities Project.
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