An intelligent grid – Where to from here?

By Keith Schaefer, CEO of BPL Global

The path to the intelligent electrical grid is not clear. Reports of false starts abound. Smart cities, smart meters, cost overruns, technological missteps present a minefield for utilities, regulators and consumers. Why bother?

Because the choice is stark. At stake is the health of our environment and the strength of national economies. A reliable and efficient electrical grid is critical for economic growth and a cleaner environment. These twin forces of economics and the environment are permanent and the industry must respond. Despite the barriers of regulation, costs, technology, security and standards, electric utilities globally are moving forward - some with more success than others. The goal of the smart grid is the availability of reliable electric power delivered more efficiently and with significantly lowered environmental impact. It represents the most significant change to the electric grid since its inception and will impact all stakeholders. We've got the 20th century's greatest engineering achievement in our hands. How best to navigate the way forward?

Smart Integration. At BPL Global (BPLG), we believe that smart grid solutions are most compelling when they address the entire energy delivery value chain. That is why we offer smart grid solutions from substations through customer premises. Addressing the development of an intelligent grid infrastructure should not be based on a point solution approach. Islands of intelligence are a systems integration headache to be avoided. Islands in the grid lead to technological incompatibilities, stranded assets and financial underperformance of the solution. Instead the goal should be to establish collaborative solutions across the grid. When intelligent solutions across the grid can share data and information, there is a value multiplying effect. Following a smart integration strategy fulfills the vision of the smart grid.

The industry is at an inflexion point. We're moving from pilots to scaled deployments. Stimulus funding around the globe is enabling larger deployments providing proof of technology and scalability, thereby decreasing risk. Once outside the pilot scale, systemic approaches to smart grid deployments, not merely expanding local builds, are the order of the day.

Smart integration demands an enterprise class platform approach that enables utilities to sequence deployment of smart grid solutions within a unified open architecture. The ability to sequence smart grid solutions that can collaborate with each other over time is vital to navigating the minefield we all face in creating the smart grid. This approach allows utilities to prioritize smart grid starting points based on technology and business cases that work for all stakeholders. Implementing smart grid technology demands the discipline to deploy technology where value is created, not arbitrarily across a utility's infrastructure. Clearly, some of our smart city and smart meter projects are not working for all stakeholders. While smart meter projects have been a lead smart grid application in the US and Europe, it requires the combination of smart meters with other smart grid solutions like demand management to create a solid ROI. When technology and ROI make sense for everyone, we know we do not have yet another false start on our hands. A well thought out progression of collaborative smart grid solutions based on a platform approach reduces risk, improves ROI and holds value for all involved.

Among the attributes of a powerful smart grid platform are an open architecture, capable of interfacing with existing legacy systems, and integration, effectively connecting data and information from disparate systems. Data analytics and modeling are becoming strong factors in operating an intelligent grid. For example, when an intelligent substation application warns of an impending transformer load issue, that information can be processed by the load management system and load reduction can be implemented. Or, other distributed energy resources can be deployed downstream of the transformer to resolve the issue. Either way, collaborative systems, enabled by a platform, are providing value across interdependent and connected smart grid solutions.

Another key is communications. As an industry, we will be linking an unprecedented number of intelligent devices and systems along the edge of the grid including sensors, meters, distributed energy resources and other energy assets. Deployment of a two way communications system is fundamental to successfully integrating and coordinating these edge devices and systems. Real-time communications enables centralized management of the grid from the network operations center across the distribution grid and into customer premises. The utility's network can no longer stop at the meter.

Distributed Energy Resources (DER) including renewable and distributed generation, electric vehicles, energy storage and customer load are becoming a strategic part of grid assets. If properly managed, they offer untapped potential for enhanced grid efficiency, increased grid stability and improved return on investment (ROI). The opportunity is to utilize DER to meet growing demand, reliability, and environmental goals in a supply constrained and aging electrical network. These diverse assets must be integrated to optimize reliability, efficiency, economic, and environmental performance. Assets can be managed for operational flexibility as well as market monetization. The sheer diversity of DER will require a systemic approach to management and coordination. The system that only focuses on electric vehicles for example will not be able to benefit from the value of pole-top solar, rooftop solar or community storage systems along the same feeder. We need to dynamically manage both capacity and load at the edge of the grid. Again, the platform helps us get there.

The path to an intelligent grid is becoming more clear. With intelligent solutions collaborating across the grid, successful deployments are pointing the way to the next in the sequence. Utilities and regulators will be able to prioritize reliability and efficiency improving solutions while delaying investment in new generation and delivery capacity. BPLG is proud that our smart grid platform and vertical solutions have a demonstrated ROI through smart integration. Connected, Collaborative, Effective - these are the elements of solutions for an intelligent grid. With value multiplying among the intelligent solutions over time, we will see the smart grid deliver on its promise.

Contact BPL Global at solutions@bplglobal.net or www.bplglobal.net.