ICT4SMARTDG ICT Solutions to Enable Smart Distributed Generation WP2 Summary 8 May 2011

1. ICT4SMARTDGICT Solutions to Enable Smart Distributed Generation WP2 Summary 8 May 2011

2. PARTNERS OVERVIEW

3. THE CONSORTIUM Telecom Equipment Manufacturers Telecom Operators DG Equipment Manufacturers Software Developers ICT4SMARTDG CONSORTIUM Distribution Operators Associations Construction Companies

4. WP1 The Challenge for the Utility The Network with Distributed Generation

5. WP1 The Challenge for the Utility The Network with Distributed Generation Two way Power Flow in Medium & Low Voltage Networks: Multi-directional energy flows: Energy Storage Devices Customer Load Renewable Generation Distribution Network(s) Safety on Distribution Network is paramount Many protection devices Storage and generators must be isolated from network for fault and maintenance Use as much as possible already existing infrastructure for economic viability

6. WP1 Distributed Generation Requirements Measure and Control the MV/LV Network: Voltage and frequency Power flow Load Shifting-shedding during islanding (Microgrids) Protection of the distribution assets Protection of utility staff & customers Overall operational stability Ability to interoperate with the distribution system when connected and to transition to and from island mode Use as much as possible already existing infrastructure for economic viability

7. WP1 The Challenge for ICT Technologies & Solutions (1/2) Energy Networks will need to rely heavily on ICT to enable Distributed Generation because the smart infrastructure will need to be: Self managing & self healing (best achieved through decentralized methods) ICT solutions will need to support and provide: Real-time communications between power producers, suppliers, DSOs and end users. Real-time M2M interaction between “smart points” within energy networks Real-time access to high-quality information on the status of the grid Software will need to have levels of autonomy, scalability, adaptability and be robust Algorithms to superimpose and maintain a virtual mesh of the desired topology Cyber security protocols to protect local grids and wider energy networks

8. Energy Network Assets – A Typical DSO ~100% SCADA Primary Network ~30-60% ~100% Multi-directional Power flow AUTOMATION ~50% ~5% CUSTOMERS !! SMART METERS 0% ~100% 8

9. Energy Industry Requirements • For Effective Distributed Generation • Communications are needed to infrastructure assets. It is difficult to define exact requirements because the distribution businesses  (DSOs) are not yet sure of how many of their MV/LV assets they will need to monitor and manage, however estimates range from 50% of the asset base to 100% of the asset base • DSOs also believe they will need some information from the customer premises, how many customers is not clear, estimates range from 10% to 100% • The first of these general requirements needs real time communications and will be supported by special applications designed to manage the infrastructure. • The second can be provided by smartmetering functionality • Therefore, large scale distributed generation will need smartmetering in place and will require a smart infrastructure to be operating. 9

10. Energy Industry Requirements • We can look at the requirements in more detail by using examples developed by SEESGEN • The following tables show • Typical services in the smart infrastructure and a high level view of data volumes, latency requirement, the level of reliability and security • Applications and how they map onto the same service requirements • The types of technologies that could service the applications and how they may support the data volumes, latency, reliability and security • Greater detail on the critical issue of latency • The advantages and disadvantages associated with some the more common technologies. 10

11. Overview of Requirements, Latency, Reliability, Security Source: Alcatel Lucent uk Applications in the Grid and requirements imposed on the ICT 11

12. Requirements from SEESGEN data ICT Requirements based on the function assigned to units DG (High, Medium, Low) Source:SEESGEN ICT After identifying the ICT requirements for the grid management, it is possible to illustrate the application (in terms of services provided by DG units) of the most common communication technologies. 12

13. Requirements from SEESGEN data Figure: Suitability of telecommunications technologies based on the function assigned to DG units (suitable, partially suitable, improper) Source:SEESGEN ICT 13

14. Requirements from SEESGEN data Figure: Data delivery time required for some applications Source:SEESGEN ICT 14

15. Technology Options for DG ICT Access – using SEESGEN data for one application example Table General communication options for voltage regulation in the medium voltage network 15

16. Requirements from Smart Buildings • Smart Buildings will be producers and consumers of energy • Smart BMS (Building Management Systems) will manage Quality, Environment, Health, Physical security • ECMS (Energy Control Management Systems) will be implemented, relying on ‘intelligent’ objects and communications with improved features such as optimization of Energy Efficiency, import and/or export of energy, energy costs, dynamic control of bulding support services and strategy-based reconfiguration of devices. • Such systems will communicate with energy distribution management solutions to support local energy aggregation or local load balancing • Will the DSO see the communications as OpTel services or external outsourced services, what level of interaction will be required? 16

17. Requirements from Energy Suppliers and Aggregators • Requirements from Energy Retailer/Aggregator • We received no direct feedback from the energy retail sector but it is considered the primary focus at the present time, is smartmetering. There are many examples of smartmeter requirements, some examples are included on the ICT4SMARTDG web site. • Contact was established with one energy aggregator operating in the USA. There principle requirement for ICT services was of a telemetry SCADA function to establish local conditions at production facilities and to obtain real time data on load shedding or load delivery from energy storage plant. • These requirements were not seen as being more or less onerous than those demanded by the local distribution system operator 17

18. Communications Infrastructure - Needs a Decision on Service Delivery Methodologies • Two Primary Options • Utility Self Provided Networks • Capital Intensive, Impact of Energy Regulatory Environment • Utility Retains control of service • Designed to be Resilient and Reliable • Large choice of technical solutions • Managed Service or Outsourced Solutions • Revenue based service • Technology agnostic • Market lead pricing 18

19. Utility Service Delivery Methods for Operational Telecommunications • In 2010 Engineering Consultancy Mott MacDonald completed an international utility telecoms benchmarking report – the follwing slides are a sample of the findings, they illustrate that: • Most utilities still favour self provided networks for operational services with limited use of Managed services or Outsourcing • TDM services are still prevalent for tele-protection and for SCADA solutions • The transition to IP solutions will be slow, legacy protocols present problems and for tele-protection, the final solution may be direct optical fibre • Industry not convinced such mission critical services can be left to public network operators.

20. Op-Tel Network Ownership Ownership of Operational Telecommunications Network %age of In-House Owned Network

21. Op-Tel SourcingSourcing of Operational Telecommunications Services

22. Op-Tel ServicesTechnology Platform – Transmission Protocol

23. Op-Tel ServicesSCADA

24. Within ICT4SMARTDG Partners - Strong Focus on ICT in the Managed Service & Outsource Environment • Members of ICT4SMARTDG not surprisingly have looked towards the commercial sector for network solutions • Following two slides reflect case for commercial sector solutions • Commercial Broadband services have relatively high penetration which will continue to reach greater proportion of population • Using existing commercial solutions will improve the SG/SM business case • Use 3G( GPRS) , XDSL. Cable , as they are the most available communication technology for the majority of Customer premises • There is a fundamental belief in utility sector that commercial services can not deliver on reliability, resilience to power outrages, latency requirements. In addition utilities lose control of service provision and service support functions. 24

25. Communication Access Solutions available

26. Communication Access Solutions available

27. ICT Solutions For SMARTDG • Research confirms virtually all applications providers, system integrators and solution vendors have a view of smartgrid. • Very few will provide details of what can actually be delivered • This should not be a surprise, the energy sector does not know what is required and many will say nothing is needed for five years • The concern is that customers will make choices on EVs, heat pumps and domestic renewable energy and the energy sector must react to ensure the consequences of those choices are not catastrophic for the network and energy supplies • Work that is in progress on trials of smart infrastructure are based on traditional energy network applications and are focused in currently available technologies such as GPRS/3G, PLC and proprietary wireless solutions • Universities and academic institutions are also working on the complex problems of taking existing energy automation solutions and developing them to provide the functionality and flexibility required for the smart infrastructure • All players are trying to find their own space in the marketplace: • Major ICT players are looking to deliver all SG ICT needs including working in substation environment • Traditional distribution management vendors, trying to move into ICT space 27

28. ICT Solutions For SMARTDG • All players are trying to find their own space in the marketplace: • Major ICT players are looking to deliver all SG ICT needs including support for the smart substation environment • Traditional distribution management vendors, trying to move to compete with those who in the past have concentrated on the corporate ICT market • Many mobile operators believe the Machine to Machine solutions can deliver on smartmetering and smart infrastructure. This market is growing rapidly, strong competition with Millions of connections and presumably this will drive lower prices • It is not clear whether the proposed solutions meet any recognised standards, many may be considered proprietary causing vendor/supplier “lock-in” 28

29. A Few Examples:SW and Middle ware solutions (Nokia) • Fully managed ICT Communication Services by One-NDS Nokia Solution and NSN OPEN EMS  • Open  EMS  Suite  is  a  software  platform  product  for  the  OperationsSupportSystems (OSS) market  containing  generic  services, built-in applications and develop tools- that  makes  it  possible  for  application  developers  to  effectively  create  various  kinds  of  network  and  element  management  products  and  solutions.   • One-NDS is an open, customer-centric directory containing all subscriber and service data in one logical entity for existing and future domains and applications • Used with ServusNet,   delivered  operational  management  systems  to  a  wind  farm  in  Ireland

30. A Few Examples:DIFFERENT LAYER SOLUTION • This solution has a big number of applications. One of them is to monitor and control energy devices and could be an option for DER in a DG environment at Domestic Level. • The PIAM Ambient Intelligence Platform project proposes the creation of a new technological space with the capability to manage and access an increasing number of sensor and actuator • PIAM (Ambient Intelligence Platform) Solution

31. A Few Examples: DIFFERENT LAYER SOLUTION • General M2M solution for monitor and control of the Electric Grid • In this application, M2M technologies are broadly extended and used specially for power metering. • They have some advantages in reducing the operational costs It is a very Telco oriented solution probably it is not optimal to control functions in smart grid.. It has been designed for monitoring purposes, even though the possibility of including actuators and control is contemplated. The control of actuators must cope with the very low latency requirements of some smart DG applications, such functionality is not contemplated in M2M.

32. A Few Examples: DIFFERENT LAYER SOLUTION • SAMARES OSIRIDE is a smart operations centre intended to provide integrated management of many installations producing energy from renewable sources through the use of Mediation Devices (MD, e.g.: OSIRIDE QS, other dataLOG). • The center receives and combines information from one or more systems for the production of energy from renewable sources in order to control and show to the public the performances of a lot of distributed energy systems. • The system interfaces with data loggers and Mediation Devices of individual plants. It has a modular software architecture that handles a large number of communication protocols, both standard and proprietary including: NMR MODBUS, • DLSm, COSEM, TVP-IT, Ethernet, etc.

33. A Few Examples: Active Network Management control Solutions • Aura and ABB Statcom • AuRA-NMS, an autonomous regional active network management system currently being developed in the UK through a partnership between several UK universities, two distribution network operators (DNO) and ABB. • The scope of control to be undertaken by AuRA-NMS includes: automatic restoration, voltage control, power flow management and implementation of network performance optimisation strategies. • The continuous increase of installed wind power seen during recent years has forced the transmission system operators (TSO) to tighten their grid connection rules – also known as grid codes – in order to limit the effects of wind power parks on network quality and stability.

34. THE REFERENCE MODEL PROPOSED IN ICT4SMARTDG • No clear Architecture Reference model to follow many vendors are proposing similar, very complex models • IEEE Communications reference model (P2030) • EPRI Communications Architecture • Connected Service Framework from Microsoft • A lot of companies creaqting applications ( See GTM report) • Most of them currently focus on smart metering and home networks • Use of raw communications, WAN, LAN, etc( PLC, XDSL, Ethernet, GPRS etc)

35. THE REFERENCE MODEL PROPOSED IN ICT4SMARTDG? • Strong play being made by SW Industry ( SAP, IBM, ORACLE, Microsoft, etc) to use SOA models. • SOA models good for Web designed services, could support metering solutions, billing, energy consumption and analysis • Apparently not recommended for Real Time critical applications. • Most of these SW solutions are a mix of existing port folio solutions ( Lotus, WebSphere, Tivoli etc)

36. THE REFERENCE MODEL PROPOSED IN ICT4SMARTDG? • Major Telecom operators favour NGN services to deliver all requirements for Smartgrid • Traditional Op Tel systems such as SCADA could be integrated in NGN by means of SIP/IP in the reference model • End to end solutions supported by integration in the Fixed Mobile Convergence Model • Telcos has experience in managing a lot information from millions of devices, and users ( for billing, charging, etc). • Use IPv6 without forgiving IPv4 • Network open to Internet, but telcos have extensive experience on Cyber security

37. General approach to Reference Architecturein ICT4smartDG? • There is an opinion that suggests the best reference model is a combination of the SOA orientated solution favoured by SW providers and the NGN solution favoured by Telco operators Such discussions are beyond the remit and capability of this group 37

38. Regulatory Requirements - Energy Sector • Many groups are examining the regulatory issues in the energy sector, we have included a summary from one such group, the SUSTELNET PROJECT • Non-discriminatory network access is a key precondition to a level playing field between centralized and distributed generation • Open access to wholesale electricity markets for distributed generation is already granted by the Electricity, RES and CHP Directives • The scope of market access should be broadened to include ancillary services • The benefits and cost of distributed generation to the electricity system are directly related to the geographical point of connection • To facilitate the integration of DG in electricity networks DSOs have to endorse ‘active network management’ • This active network management entails investment in innovations to improve network management, in particular in the field of ICT • The current regulatory frameworks often do not allow for DSOs to recover the cost of investments in innovation. 38

39. Regulatory Requirements – Telecoms Sector • It is recognised Wireless solutions will play a major role in the ICT support for smart metering and smart infrastructure. • Utility companies in Europe use a range of wireless spectrum for diiferent support services in their infrastrtructure networks • It is recognised by the utility sector that additional spectrum is required to deliver ICT services for Smartgrid • There are sound arguements for harmonised spectrum across Europe for utilities • Vendor companies can better plan their products • More vendors will enter the market, creating competition and price pressure • A competitive market will stimulate innovation through market pressure • A larger, unified market will encourage service companies into the smartgrid arena • EUTC supported by the vendor community is in discussion with DGINFSO Spectrum Policy Unit on the opportunity for harmonised spectrum 39

40. WP2 - Conclusions Current ICT utility service delivery methods favour self provided networks. This is not likely to change dramatically in the next 3-5 years A range of telecom technologies are being used in smart infrastructure trials The ICT community believe public networks should be used to support the new smart energy networks. Existing public service solutions and applications can provide an improved business case. Telco companies and Software companies believe NGN and SOA solutions respectively are capable of meeting all the future SG requirements although each has benefits and disadvantages Utilities will need to be convinced, this is not a short term activity, discussions between Telco IMS, SOA Manufacturers and Power Utilities should be considered at the earliest opportunity Stadardization is a major issue being discussed in may different fora, it is important from a European perspective progress is made on this issue 40

41. Conclussions-Recommendations added by Isidro ¿?