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Roadmap to integration

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Roadmap to integration
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  52 IEEE   power & energy magazine may/june 2014 1540-7977/14/$31.00©2014IEEE  Digital Object Identifier 10.1109/MPE.2014.2301515 Date of publication: 17 April 2014    I   M   A   G   E   L   I   C   E   N   S   E   D   B   Y   I   N   G   R   A   M    P   U   B   L   I   S   H   I   N   G S SMART GRID-RELATED BLOGS, NEWSLETTERS, and conferences have endured numerous debates and discussions around the issue of whether or not the smart grid is being integrated correctly. While most debates focus on approach, methodology, and the sequence of what needs to be done, there is insufficient discussion about what is actually meant by “smart grid integra-tion.” This article attempts to present a holistic view of smart grid integration and argues for the importance of developing system integration “maps” based on a utility’s strategic smart grid road map.Faced with diverse technological, organizational, and business issues that adversely affect the bottom line, util-ity companies are contemplating immediate changes and/ or upgrades of their technologies, business processes, and organization. At the same time, however, the realities of insufficient resources, regulatory impediments, and tech-nological hurdles have prevented the development of con-crete plans and concerted actions in this regard.A closer look at mainstream discussions within the utility industry reveals that, despite consensus about the need for change, there is no agreement across the board in any given utility about a smart grid road map and integration map. The absence of industrywide standards and blueprints for smart grid integration has further compounded the issue. The silo mentality of the constituent parts of the utility organization drives the generation folks to push for expanding generation capacity through the integration of renewables, the transmission people to urge expansion of transmis-sion capacity through automation, and the distribu-tion community to argue for integration of new assets, technologies, and intelligence on the downstream side of the network.  A Road Map to Integration By Hassan Farhangi   may/june 2014 IEEE   power & energy magazine  53 Furthermore—and given the fact that each group has traditionally been exposed to cer-tain vendors and technology providers for its respective silo—each constituency tends to regard the technologies and solutions offered by those vendors as the answer to much larger, systemwide problems. And in the utility environment, these problems by default transcend the confines of a single silo.The situation is further complicated by the diversity of views, interests, and approaches advocated by vendors and technology providers in the field. Influenced (and constrained) by its core competencies and technologies, each vendor defines the problems, and therefore the solutions, in the way that best suits its own technologies and products. One should therefore not be surprised to hear different suppliers put different spins on basic concepts such as dis-tribution automation, demand response, and so on. The irony is that they are mostly sincere in what they are advocating. The issue is whether any of their prescriptions is the Holy Grail needed to solve the utility’s smart grid integration puzzle. This seems to be a reenactment of Rumi’s story of the blind men and the elephant. Each person has his own understanding of what the creature is based on what part he has managed to touch. The absence of sight (or light) has convinced each and every one of the righteousness of his version of the truth, ignoring the fact that the smart grid’s systemwide issues require all its constituent parts to work together and implement a collective strategy for doing what needs to be done. In Rumi’s words, “If each of us held a candle there, and if we went in together, we could see it.” Smart Grid Development  Utilities in North America have had their fair share of challenges in taking the first step on their path to full implementation of the smart grid, namely, large rollouts of smart metering across their distribution circuits. The reaction of the public to the push by utility companies to implement smart metering took many in the industry by surprise. In addition to open calls by consumer associations to do away with the idea, many jurisdictions saw the intro-duction of symbolic resolutions, passed by county and municipal councils, banning smart meter installation. In response to this backlash from customers, many North American utilities have had to either slow down smart metering rollouts or devise opt-out programs while investing in information campaigns to reach and influence their customers. Despite the specific form that the consumer backlash took (e.g., concern about the health effects of RF radiation, the privacy and security of customer data, or an imminent rise in the cost of energy), one could see that such concerns were primarily attributed to an absence of buy-in for this new technology on the part of utility customers.What is interesting is that very few, if any, utilities have attempted to answer the more fundamental question of why their customers should embrace this new technology with open arms. What will make customers want to be willing participants in this process? Would smart meters reduce utility bills? Would it provide customers with more reliable Perspectives on Smart Grid Development    54 IEEE   power & energy magazine may/june 2014 service? Would smart metering protect customers’ vital information and personal data? What would the short- and long-term impacts of smart metering be on customer engage-ment? What is next after smart metering? What future func-tionalities and capabilities would be enabled through smart meters that would be beneficial to customers? In fact, not only have very few attempts been made to answer these questions adequately and convincingly, but some utilities have added fuel to the fire by suggesting that smart meters will help with “customer behavior change” or “load control” through time-of-use (ToU) mechanisms and dynamic pricing. Without a well-formulated plan to prove to customers that such behavior change will not and should not happen at the cost of their convenience or at their expense, such suggestions have only reinforced public perceptions that smart metering is nothing but a quick money-grabbing exercise on the part of cash-strapped utilities trying to fill the holes in their budgets on the backs of rate payers.The questions that arise here are these: Why wouldn’t utilities confront such misconceptions head on and commu-nicate to their customers the benefits of smart metering? Why wouldn’t they portray smart metering as the first step toward smart grid integration and all the unprecedented capabilities that a smart grid will offer their customers? Why wouldn’t they attempt to convince their customers that a smart grid will effectively empower them to be active stakeholders and players in energy and service transactions? Although there could be many reasons for such a discon-nect between utilities and their customers, some have specu-lated that either utilities have not yet managed to develop a strategic road map for the smart grid or if they have, that there was very little consensus across their organizations on the integration plan and on a realistic schedule for implement-ing it. Regardless of the root cause, pundits have seen this as a failure on the part of the utilities to formulate the right communication plans to help their systems, organizations, staff, infrastructure, assets, and, ultimately, their customers navigate collectively through this uncertain yet exciting tran-sition to a new set of service transactions, energy paradigms, and fundamentally different roles and responsibilities. It goes without saying that no utility has ever discounted the need for a strategic smart grid road map—and subse-quently a smart grid integration map—prior to making such large investments in their assets and infrastructure. The question is therefore not the existence of such blueprints but simply their role in driving (and informing) the major technology investment commitments utilities are making today. The litmus test for this process is to ask a series of questions so as to ascertain how conducive each investment is to a seamless transition from a less intelligent grid to an intelligently integrated smart grid. Strategic Smart Grid Road Maps As discussed earlier, the need for the development of stra-tegic road maps for smart grids was recognized early on by many practitioners and planners in the utility industry. Such work began by identifying utilities’ business and corporate objectives and goals, recognizing the most critical issues and impediments to reaching those goals, and devising plans for how to address them. Figure 1 depicts an early attempt by a group of experts from the British Columbia Institute of Tech-nology (BCIT) and BC Hydro who worked collaboratively over a period of several months to formulate an R&D as well as demonstration road map for their joint smart microgrid initiative at BCIT’s Burnaby campus. This collaborative effort took into consideration what each party was hoping to achieve from the joint project, the modalities of their respec-tive development efforts, the realities on the ground, and the resources and technologies needed to achieve those goals over a five-year period.As Figure 1 demonstrates, the road map highlighted the need for several constituent streams, each informing as well as enabling other streams along the way. For example, the energy management system (EMS) stream included several layers of sophistication and features, based on the avail-ability of certain assets and capabilities provided by other parallel streams, such as advanced metering infrastructure (AMI), communication infrastructure, and load and asset management. The interplay among these functionalities, made possible by the integration of their respective technolo-gies, was conceived as enabling stepwise jumps in the range of capabilities the initiative was expected to provide.The smart microgrid initiative implemented by BCIT and BC Hydro reinforced the notion that smart grid integration consists of several concurrent streams, designed to introduce intelligence (and thereby command and control) into strate-gic areas of the system, providing capabilities and functional-ities that transcend the legacy silo architecture of the system. The nature of these capabilities and their intended reach will determine which assets and/or subsystems must be integrated in order to realize the target functionality. As Figure 2 dem-onstrates, smart grid integration does not always have to be This article attempts to present a holistic view of smart grid integration and argues for the importance of developing system integration “maps.”  may/june 2014 IEEE   power & energy magazine  55 BCIT/BCHydroSmart MicrogridRD&DRoad Map Legend:Status: Proprietary and ConfidentialC2: HAN NetworkC3: WAN NetworkC4: DistributionAutomationDemand-SideManagementD1: IntelligentTransportation NetworkEV Charge PilotE1: Rural DCMicrogridA6: MicrogridIslandingA4: Smart GridControl CenterA5: Expansion of MicrogridCo-Gen CapacityC5: MicrogridAsset ManagementB2: DynamicTariffsA3: AdvancedEMSResidence CompetitionC1: AMI InfrastructureB1: LAN NetworkA1: Basic EMSA2: MobileEMSAuthor: Dr. Hassan FarhangiDate: 5 Feb. 2011Version 0.7EMSStreamRevenueStreamAutomationStreamEVStreamDCStreamPilotIPToolPaper A MI  D a t   a b  a s  eA r  c h i   t   e c  t   ur  eM o b i  l   eE M S V  er 1 L  o a d  S h  e d  d i  n gI  n t   e gr  a t  i   on of  T h  er m al  T  ur  b i  n eN e t  M e t   er i  n gP r  o t   e c  t  i   on an d  S wi   t   c h i  n g S  y n c h r  oni  z  a t  i   onE n er  g y T r  an s  a c  t  i   on s R ev  en u eM o d  el   s E M S V  er 4 I  n t   e gr  a t  i   on of   S  t   or  a g eI  n t   e gr  a t  i   on of  Wi  n d T  ur  b i  n eI  n t   e gr  a t  i   on of   S  ol   ar M o d  ul   e s D C Di   s  t  r i   b  u t  i   onN e t  w or k D C P r  o t   e c  t  i   on an d  S wi   t   c h i  n g DC Microgrid PilotBCIT Campus IPP Pilot Mi   c r  o gr i   d  C  on t  r  ol  l   er I  n t   e gr  a t  i   on S  G C  C T  o p ol   o g y E M S V  er  3 E M S V  er  5 E n d - C  u s  t   om er E x  p er i   en c  eE n d - C  u s  t   om er E x  p er i   en c  eV 2  G an d  G2 V  S  o c i   al   S  c i   en c  eF  a c  t   or  s i  nE n er  g y M an a g em en t  L  o a d P r  e d i   c  t  i   on an d P r  of  i  l  i  n gE V  C h  ar  g eM an a g er  S  c i   en t  i  f  i   c P  a p er  OnD S M S  c i   en t  i  f  i   c P  a p er  OnD C Mi   c r  o gr i   d  S  c h  e d  ul  i  n gE M S V  er 2 P r i   c i  n g S i   gn al  B r  o a d  c  a s  t  M ax i  m umD em an d T  ar i  f  f  T i  m e of   U s  eT  ar i  f  f  A  s  s  e t  M an a g em en t  D a s h  b  o ar  d Mi   c r  o gr i   d A  s  s  e t  M an a g er I  n t   e gr  a t   e d Mi   c r  o gr i   d  S  en s  or N e t  w or k Mi   c r  o gr i   d  S  u b  s  t   a t  i   on s A  u t   om a t  i   on S  c i   en t  i  f  i   c P  a p er  OnI  E  C  6 1  8  5  0 M o b i  l   eE M S D a s h  b  o ar  d E n d  C  u s  t   om er E x  p er i   en c  e S  o c i   al   S  c i   en c  eF  a c  t   or  s i  nE n er  g y M an a g em en t   S  c i   en t  i  f  i   c P  a p er  OnE M S Wi  M ax  (  1 . 8  GHz  an d  3 . 6  GHz  )  D e d i   c  a t   e d F i   b r  eP  or  t   al  T  e c h n ol   o g y E M S V  er 1 Z i   gB  e eN e t  w or k wi   t  h  S m ar  t  E n er  g y P r  of  i  l   eM ODB  U S I  n t   e gr  a t  i   onT  e c h ni   q u e s A N S I  - C 1 2 .1  9 D a t   aA  g gr  e g a t  i   onE 2 E P L  C  an d RF  S MI  N e t  w or k MDM S A N S I   C 1 2 .2 2  S m ar  t  M e t   er i  n gL  o a d  C  on t  r  ol  f   or HWT  an d B B HZ i   gB  e e S  en s  or  ,T h  er m o s  t   a t   an d I  HDB  ui  l   d i  n gA  u t   om a t  i   on 20092010201120122013  figure 1.  A typical strategic road map.
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