Separating smart grid hype from market reality

By Alex Brisbourne

With so much buzz about the Smart Grid, it is more important than ever to remind ourselves where the term originated and what it means.

“Smart grid initiatives are no more exotic than deploying real-time or near real-time applications that can simultaneously support operational decision-making within the utility, and deliver end-users more meaningful and timely information to manage their own energy habits”
-Alex Brisbourne

In an age where a new iPhone release can shake up markets for weeks at a time, it is not surprising that the concept of Smart Grid has taken hold so quickly. 'Green' technologies are hot and the 2009 Economic Stimulus package was designed to funnel billions of dollars towards smart grid and other energy efficient initiatives. But with so much hype in the market, it may be more important than ever to take a step back and ask ourselves, "What, exactly, is the smart grid and how do we build it sustainably?"

The term itself has many connotations. "smart grid" can be applied to a high-level view of the overall security of the U.S. power grid, from generation to transport to distribution. Or, it can be focused on boosting visibility into individual components of the overall system. 

While both of these views are correct, let us focus on the virtually untapped area of IT-enablement in the distribution grid - those parts of the electric grid that lie between the sub station and the end-users.

With approximately 3,000 electric utilities regulated by 50 public utility commissions, the electric grid in the United States is extremely diverse. Leading-edge utilities have already deployed intriguing elements such as self healing networks and automation, while others remain almost entirely un-automated.

But any way you slice it, the overall distribution grid is not IT-enabled. This is a provocative state-of-affairs when you consider that virtually every other major enterprise in the U.S. is rigged with IT tools from end-to-end. 

Smart grid initiatives are no more exotic than deploying real-time or near real-time applications that can simultaneously support operational decision-making within the utility, and deliver end-users more meaningful and timely information to manage their own energy habits.

I like to separate the smart grid into four primary components, or pillars:

1.      Sensor and control hardware

2.      Communications

3.      Analytical software

4.      IT-focused utility operations

Sensors:  Utility grid sensors have existed for years.  These are measurement and sensory devices that monitor various electrical engineering parameters and equipment states such as current, voltage, phase angle, transformer state and a variety of other grid hardware.  Historically, these devices have been read manually, or have relied on dedicated (and very expensive) communications mechanisms that operate in a utility silo and do not take into account information from other parts of the utility.  

Communications: Cost-effective, secure and reliable two-way communications is absolutely vital for the IT-enabled smart grid. Without this component, information cannot get where it needs to go. To fill this role, wireless transmitters are being integrated into more and more sensory and control devices. Moreover, the ubiquity and now low cost of public wireless M2M networks has emerged as a reliable, secure and cost-effective means to connect the vast array of sensors that gather the information needed to analyze the state of the distribution grid and to provide control functions for key equipment.

These trends open the door for the more effective transmission of real time information, and lead to our next topic, analytical software.

Analytical Software: Individual software applications have existed for some time to carry out specific tasks. However, with the vast amount of geo-spatial data now being collected, new cross enterprise software applications are being developed that can handle the processing and spit out actionable intelligence to an IT savvy utility operations team.

IT-focused Utility Operations: Looking forward, linemen will need to maintain the same level of electrical training as they have today, but they will also need to be trained and qualified to manage a new array of sensory and communication devices. Interestingly enough, technicians will be able to take on a more forward-leaning role; they will just as likely be proactively dispatched by intelligent software as they will be to respond reactively to incidents, or perform routine maintenance.

All of this being said, the major opportunity - indeed the tie-that-binds - for a scalable and sustainable smart grid lies in the provision of well-managed, reliable wireless IP communications. With this simple component in place, smart grid applications such as automated metering infrastructure (AMI), demand response, distribution automation and other emerging IT-driven initiatives are free to blossom.

Arizona Public Service Gets Smart

Arizona Public Service (APS) is Arizona's largest electric utility, delivering electricity and energy-related products and services to more than a million customers across the state. Since 2005, even before smart grid became part of the common vernacular, APS defined automated metering as one of its strategic priorities.

This deployment consists of two way wireless data communications with electric meters at customer premises. In practice, the system simultaneously provides a higher level of service and reduces many hard and soft operational costs required for service. Consumers can monitor electrical usage in realtime, while APS can streamline the meter reading process and pinpoint service interruptions more quickly.

To date, APS has installed more than 160,000 AMI-enabled meters in apartment complexes, homes and businesses that the utility services. In late 2008, APS launched a large-scale expansion of an additional 800,000 meters. When the expansion is complete, the AMI deployment will total more than a million meters!

APS considered fiber, leased line, fixed wireless and cellular data services, but determined that the ubiquity of a cellular GSM network for IP-based machine-to-machine communication offered the best balance between price, performance, time-to-market and service support.

APS has eliminated 7,200 truck rolls per month for every 100,000 meters deployed. In addition, APS has resolved more than 1,450 meter reading access issues as part of an access improvement plan it put forth in 2007.

'Soft' benefits include reduced fuel consumption and fewer emissions. In fact, once APS completes its 800,000 meter expansion, it estimates it will eliminate 1,510 meter tons of CO2 per year.

In short, APS is leading the way toward a utilities infrastructure that can achieve the vision of utilities and consumers collaborating to conserve energy, the ultimate goal of a truly smart grid.