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The Need for an Industry Architecture

There is a two-part answer to the question, “Why it is necessary to develop an industry architecture?’ First, it must be understood that the challenge facing utility executives is keeping the lights on while also enhancing the value of services to consumer. However, by itself, the need for increased reliability is not enough to mandate the development of an industry architecture. The second, and more powerful argument, is that the only way to address the challenge utility executives face is to go back to basics, understand why the current system doesn’t perform as needed, and then to design interoperability into the system from the ground up.

The Value of an Industry-level Architecture: Baseline Energy System Integration versus Status Quo

In today’s uncertain, vulnerable socioeconomic and geopolitical environment, utility executives are under increasing pressure from shareholders to efficiently manage the electricity supply chain, while maintaining a sustainable growth rate. At the same time, these executives must strive for more efficient, cost effective, reliable, environmentally friendly, stable and secure operation of the power system. Regulators, government, governing bodies, interest groups, and consumer advocate groups also require utilities to comply with numerous reliability, restructuring, and environmental mandates. Last, but far from least, consumers demand the utility to keep the lights on.

To meet these expectations and the needs of our power-hungry society, utility executives must rely on the machine known as the ‘electric power grid’. Over its hundred-year history, this grid has been expanded continuously. It has become quite complex and technologically fragmented, thus making it difficult to manage and predict its behavior. In recent years, the electric power grid has been asked to perform far beyond its originally designed capabilities, creating operational challenges for today’s utilities. The threat of cyber attack and physical sabotage further complicates the challenge of keeping the system operational. To keep the lights on, the current system must be analyzed and deficiencies in the fundamentals of quality power delivery addressed. Current fundamental deficiencies in the grid include:

Stability of Supply

The network’s age and complexity, along with the increased energy demand, challenge the stability and reliability of the grid. Moreover, the inadequacies of legacy distributed computing systems, dispersed heterogeneous data and legacy applications, and lack of reliable integrated energy and information infrastructure compound this problem. Reduced maintenance budgets, increasing life cycle cost, and a shortage of trained personnel add even more dimensions of complexity. Power systems operating near system capacity, managed by dispersed computing processing and information infrastructures, utilizing legacy applications without a unified view, and shortage of expert-trained staff are destined for cascading failures and the resulting widespread blackouts.

Quality of Service

Today’s digital society is dependent on a reliable source of electric power. The loss of power is not only very inconvenient, but can also be very expensive. The costs associated with loss of power during the Aug 14, 2003 blackout have been estimated at $6 billion. Although the cost of making the electric power grid an impenetrable fortress is prohibitive, much can be done to significantly improve its overall reliability and availability. Moreover, the frequency of power outage also causes the loss of customer confidence in their electric supply, and consequently has resulted in corporate sector spending to install temporary power.

Security

The growing danger of cyber attack and physical sabotage pose fundamental challenges to the security and reliability of the power supply. Untenable and inconsistent system management and security policies resulting from a lack of an industry-wide integrated system architecture and inadequate key business/regulatory entities, exacerbate this problem.

Environment

Environmental concerns have made it difficult to augment the grid and add additional transmission capacity. Environmentally conscious consumers increasingly demand ‘green energy’ sources, including wind and photovoltaic energy. Adding these distributed energy resources to the grid will bring new opportunities and challenges to effective grid management.

Workforce Reduction and Talent Swap

Competition for the information technology talent base, reduction in power system trained engineers, voluntary force reduction, and loss of workers with legacy system knowledge has created a talent gap which directly affects critical day-to-day grid operations.

Satisfying All Stakeholders

Against the backdrop of deregulation, it is becoming increasingly difficult to satisfy the myriad of stakeholders with vested interests in the operation of the power grid.

Asset Swap/Capital Investment

Globalization, mergers, and acquisitions—combined with restructuring and economic uncertainty—have forced the deferral of critical asset procurement. One report [4] shows a $112 million per year decline in transmission system spending (Figure 4). This trend underscores the need to develop techniques channel more power through existing assets.

Figure 4: Transmission Investment Trend

There has been a decline in transmission investment for the past 25 years.

 

In this volatile and uncertain operating environment, it has become an unprecedented challenge to keep the lights on. There is an urgent need to revitalize and modernize the electric power grid. Meeting these expectations requires the overlay of a robust high-performance information infrastructure. Put simply, to build a solid foundation, all the fundamental aspects of quality power must be reinforced.

Back to Basics…the Need for a Reliable Customer Centric Operation

Growing pressure for customer-centric and highly reliable power systems mandates new integrated approaches to enhance power system robustness at the grid apparatus level. In addition, there must be new approaches to develop the underlying communication and information infrastructures. Only through this paradigm shift can utilities find an operational balance to increase reliability without sacrificing profitability. They must find a way to deliver measurable benefits to their customers and shareholders including:

Operation stability

Reduce outage frequency and duration by identifying problem conditions and preventing difficulties (harmful conditions in transmission and distribution, power quality variations, interruptions, equipment failures) before they occur.

Asset management

Defer capital expenditure by increasing asset life and system throughput through continuous automated monitoring, thereby resulting in reduced operating and maintenance cost.

Responsiveness

Retain customers by providing consolidated and competitive service and innovative product offerings.

To achieve the new level of reliability and profitability mandated by customers and the new market dynamics, the fundamentals of quality power must be revitalized, redefined, and rebuilt with a new mindset. This mindset must employ a new set of disciplines and guidelines in accordance with the current geopolitical and geo-social reality.

In this new paradigm, the system is simple but intelligent; its behavior adaptive and proactive, not static and reactive. It is secure.

To achieve these objectives, the new paradigm must provide a clear set of useful, reality-based tools, procedures, and guidelines to facilitate:

§       Integration of operational and business decisions

§       Expandability, scalability, flexibility of applications and computing systems

§       Information (distilled from data) to support the right decision

§       Tools to communicate with customers

§       Increased throughput and decreased congestion

§       Adherence to stringent environmental requirements

§       Competitiveness in response to profit pressure

§       Disaster prevention and recovery

§       Post disturbance monitoring and analysis

§       Mergers and desegregation of assets

§       Security

Adapting the fundamentals of quality power into this new paradigm will provide a solid foundation for a power system made up of automated transmission and distribution systems all operating in a coordinated, efficient and reliable manner. Such a system will handle emergencies, will be ‘self-healing’, and will be responsive to energy-market and utility business- enterprise needs. This system will involve millions of customers and have an intelligent information infrastructure enabling the timely, secure and adaptable information flow needed to provide reliable and economic power to the evolving digital economy.

Adoption of these principles will make the grid smart enough to monitor itself, predict problems, take corrective actions…………all while keeping the lights on.

Consequences of the Status Quo

If the power industry continues with the ‘baseline architecture’ and the industry status quo, advanced energy automation and consumer communication systems will be significantly fragmented when viewed from an industry architecture level. Moreover, without concerted efforts to improve standards and technology integration, the status quo is likely to continue to be fragmented in several key areas. In some cases, there is duplication of standards development, while some needed standards are not being developed. It should be recognized that there are pockets of good standards work taking place, but the situation can be improved through improved coordination and harmonization between standards.

Further, the problem is not merely organizational: the technology gaps make the energy automation and applications integration tasks extremely difficult. Patchwork solutions applied to fix these gaps make the overall system unmanageable and difficult to maintain. Discovering how to develop standards, and their resulting technologies, comes strategically from efforts to develop an industry-level architecture.

The vision of a highly integrated, interactive, and self-healing system will not come about on its own. The integration and systems management needs suggested by this long-term vision demand the application of architectural principles in the design and development of advanced automation and consumer communication systems for the future. The system must be viewed from an architecture level, and strategies must be developed to bring about the necessary change and integration.

Why an Architecture will Solve this Problem

Problems that surfaced in the August 2003 blackout touched on several architecture level concepts. Issues such as the need for sharing data over larger areas and the ability to view the system from high operational levels are architecture related issues that emerged. An architecture is required to survey the issues of integration from a high level. Ad hoc development work that focuses only on system components will not further the needs of the overall vision. An integrated power systems and communication architecture will enable the utilities to:

§       increase the grid reliability–keep the lights on

§       increase interoperability–keep costs down

§       enable the next level of services for customers–generate value for shareholders

 

[4] Hirst, Eric; “Transmission Planning for a New Era”; 1/2004; http://www.ehirst.com/PDF/TXPlanning102.PDF

 

 

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Copyright EPRI 2004