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Four technology trends that will fuel utilities’ digital strategies in 2023

In 2022, we saw power utilities confront climate change in many different ways, from interconnecting more distributed energy resources (DERs) to providing reliable electricity services amid severe weather events while reducing carbon emissions from grid operations. The cost of electricity jumped in many countries due to a strained natural gas supply and other supply chain disruptions.

These challenges will only become more monumental because the world needs more reliable, clean electricity. Utilities need to accelerate their digitalization journey to evolve to a smarter, mover adaptive grid as an integral component of their climate strategies so they can attain net zero while delivering safe, reliable, clean power.

As we move into 2023, several key technology developments and trends will play an essential role in enabling power utilities to succeed with their strategies. Here are four key predictions for what we can expect in this coming year.

1. IEC 61850 will gain more prominence

IEC 61850 was first published in 2003, under the title of “Communication networks and systems in substation.” Its focus was substation automation. With the advent of renewables and more stringent operation, reliability and safety requirements, utilities realized that automation was needed across the grid. Consequently, the standard suite was expanded to incorporate additional scenarios, including inter-substation communications for GOOSE-based protection, substation-to-control-center communications for synchrophasor, and distribution automation for fault location, isolation and service restoration (FLISR).

To date, we have observed a gradual increase in the adoption of IEC 61860 in various regions, but widespread acceptance is yet to be achieved. As the demand for advanced automation and DER interconnection grows, utilities must expedite their evaluation and implementation of IEC 61850.

2. Synchronization infrastructure will adopt IEEE1588v2 for time distribution

As they implement IEC 61850, utilities are modernizing their substations with digital monitoring, control and automation applications such as digital fault recorders (DFRs) and Sample Value (SV). These applications require accurate time synchronization on the order of 1 ms and 1 µs, respectively. While GPS is certainly an excellent source for time synchronization, it is not feasible to install a GPS receiver in every substation and deploy another cabling infrastructure to distribute time encoded in the inter-range instrumentation group (IRIG) signal. Even when GPS clock is available, utilities still need a redundant synchronization source.

Seeking a scalable and reliable alternative, utilities have increasingly turned to the IEEE 1588v2 profile for power utility automation in IEC 61850-9-3. IEEE 1588 is a timing over packet technology that can run over mission-critical telecom networks as well as substation LANs, distributing precise time synchronization along with grid communication traffic.

 

3. More utilities will migrate from TDM to IP/MPLS

Many utilities have already made IP/MPLS a central element of their grid modernization efforts, entrusting it to carry safety-critical differential protection and mission-critical SCADA applications. With TDM equipment and services moving beyond their end of life to end of support, more utilities will deploy IP/MPLS to carry critical operational traffic and advanced IEC 61850-based applications such as distribution automation and synchrophasor across the grid. They will benefit from the versatility of IP/MPLS services in supporting synchrophasor and GOOSE communications because it can help them attain operational excellence with robust resiliency.

4. OT cloud will emerge as a critical component for grid operations

Operational technology (OT) cloud refers to the use of cloud computing in grid operations. Contrary to the common misconception, the cloud is not a location for hosting compute resources. Rather, it is a compute consumption model for applications hosted in private data centers or colocation facilities, or even public cloud environments.

The proliferation of software-based innovation in grid management has been a significant trend within the industry. To strengthen their capabilities, utilities have started to refresh their real-time central software systems, including distribution management system (DMSs) and outage management system (OMSs), and integrating them with SCADA and synchrophasor. Some have also introduced a private LTE network that has a software-based core system to connect with devices and crew in the field. These real time applications will significantly enhance the efficiency and reliability of grid operations.

Utilities will need to rethink their data center fabric networking architecture to support these real-time OT applications while introducing cutting-edge IT automation agility for eventual IT/OT convergence. This rethink must ensure that the data center fabric can deliver five-nines reliability, internetwork seamlessly with the mission-critical communications network, and integrate seamlessly with their IT ecosystems.

2022 was an extraordinary year. 2023 will be another year filled with challenges and marked by exponential change and uncertainty. Of course, utilities are accustomed to facing challenges. They will hasten their pace on the digitalization journey and make greater use of these new technologies to become more agile and more adaptive to market forces and continue to provide safe, reliable, affordable and clean electricity to customers.