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Smart Grid: a transformational (standards) journey Emmanuel Darmois, VP Standards, Bell Labs IEEE SmartGridComm 2010 October 5, 2010

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Smart Grid: a transformational

(standards) journey

Emmanuel Darmois, VP Standards, Bell Labs

IEEE SmartGridComm 2010October 5, 2010

Alcatel-Lucent at a Glance

R&D PROFILE

Ben VerwaayenChief Executive Officer

� Worldwide Presence: More than 130 countries

� Annual Revenue: €15 bn (2009)

� Employees: More than 77K

� Employee Nationalities: More than 100

© Alcatel-Lucent 2010 All Rights Reserved

R&D PROFILE

� Budget: €2.4 bn (2009)

� Active Patents Held: ~ 28K

� Patents Awarded in 2009: >2K

� Nobel Prizes Won: 7

� More than 500 experts in ~100 worldwide

standard organizations.

ParisGlobal Headquarters

2 | IEEE SmartGridComm 2010| October 5th 2010

Two customer groups addressed with a products and services portfolio

Enterprise & Strategic Industries

•Operating Segments

Input from customers

Services

•Customer Teams

© Alcatel-Lucent 2010 All Rights Reserved

Customer Solutions

Carriers

Bell Labs

Openinnovation Networks

Applications

3 | IEEE SmartGridComm 2010| October 5th 2010

Within Enterprise and Strategic Industries…

Alcatel-Lucent is focusing on 5 market groups

© Alcatel-Lucent 2010 All Rights Reserved

Transportation Energy Smart Communities Healthcare Defense

� Main Line Rail

� Urban Rail

� Highways

� Airports

� Power Utilities

� Oil & Gas

� State & LocalAuthorities

� Public Safety

� Connected hospitals

� Telecare

� Strategic backbone

� Wireless solutionsfor Deployable forces

� Border control

4 | IEEE SmartGridComm 2010| October 5th 2010

Outline

Understanding the utility business

A Smart Grid Vision

© Alcatel-Lucent 2010 All Rights Reserved

A Technology Challenge

A Standardization Challenge

Conclusion

5 | IEEE SmartGridComm 2010| October 5th 2010

Alcatel-Lucent and the Utilities1

© Alcatel-Lucent 2010 All Rights Reserved

Alcatel-Lucent and the Utilities1

6 | IEEE SmartGridComm 2010| October 5th 2010

Equipment life

expectancy

Increasedcompetition

Safety, reliability,security

How we understand the business of utilities

To support this for all technologies or services requires “always on” control and supervision

Enabled through new technologies

“Change it only when absolutely necessary”

Operationalefficiency

Stakeholder pressure on investment

© Alcatel-Lucent 2010 All Rights Reserved

Environment

Smart GridChallenge

Regulatory pressure to be more “green”

Requirement to promote environmentally friendly technologies

Operational requirements

“Rapid” move to embrace new technologies and processes

Very specific technical demands for HV networks

Extreme physical and electrical (EMC) environments

7 | IEEE SmartGridComm 2010| October 5th 2010

Alcatel-Lucent’s scope of activity in utilities

Transmission

Security mgt

Comms mgt

Transmissionnetwork solutions

Distributionnetwork solutions

Managementsolutions

Distributioncommunications

DistributionProduction

© Alcatel-Lucent 2010 All Rights Reserved

Transmission End Users

Transmission communications

supporting

Protection,

SCADA

& Telemetry

MDMS

mgt

supporting

SCADA,

AMI

& Smarter Grids

CallCentres

Adding value from experience

8 | IEEE SmartGridComm 2010| October 5th 2010

A wide range of customers with a variety of business focal points

© Alcatel-Lucent 2010 All Rights Reserved

Network refreshIP transformationSmart MeteringSmart Grid*UTelcoManaged Services

* enabling intelligence in the network

9 | IEEE SmartGridComm 2010| October 5th 2010

Our Smart Grid vision2

© Alcatel-Lucent 2010 All Rights Reserved

Our Smart Grid vision2

10 | IEEE SmartGridComm 2010| October 5th 2010

Smart grid use cases sampled from our customers

Canada

US

Japan

ChinaEurope

Secure electricity suppliesBoost energy conservation

Renewable integration

Operational EfficiencyAsset Optimization

High Power Quality with RES

Reduce peak-hourPromote micro-generation

© Alcatel-Lucent 2010 All Rights Reserved

Australia

00:00 06:00 12:00 18:00 00:00

Instantaneous demand (kW)

T ime of day

Shave off seasonal peak

Technology upgrade required to support a variety of business goals

11 | IEEE SmartGridComm 2010| October 5th 2010

The drivers of Smart Grids

Power Delivery Non-stop energy delivery, despite…

•Rising seasonal demand

•Ageing infrastructure

•International interconnectors

•LT volume electric vehicles

Power Quality A legal requirement, despite…

• Increasingly “noisy” loads

•Growth in small scale renewables

© Alcatel-Lucent 2010 All Rights Reserved

Green Energy Pressure on CO2 footprint:

• Growth in small scale renewables

• Management of energy losses

•Growth in small scale renewables

Customer Intimacy Retain/creating value for customers

Operational Efficiency Better cost control, requiring…

• Improved operational processes

• Better asset utilisation

12 | IEEE SmartGridComm 2010| October 5th 2010

Smart Grids will dramatically transform utility communications

� Information from millions of sensors and controls to be assessed and managed

� Reaching out to remotely located devices, where� No existing

communications� Goes beyond “the grid”

and into the end user’s

Qualitymanagementapplications

Powermanagementapplications Wide

area

network

Existingnetworking

© Alcatel-Lucent 2010 All Rights Reserved

and into the end user’s premises

� Will be critical to the stability of future energy networks

� Requires 'always on', real time communications for system reliability and stability

Smart Grid/metering

applications

applications

Access

network

Newnetworking

Robust communications and data management: two key enablers

13 | IEEE SmartGridComm 2010| October 5th 2010

Alcatel-Lucent’s proposition

Operational

communications

transformation

Outsourcing Services

(partial or full)

© Alcatel-Lucent 2010 All Rights Reserved

End-to-end Smart Grid

communications

AMI & MDM

Customer Information

System

14 | IEEE SmartGridComm 2010| October 5th 2010

A Technology Challenge3

© Alcatel-Lucent 2010 All Rights Reserved

A Technology Challenge3

15 | IEEE SmartGridComm 2010| October 5th 2010

Communications is the key enabler for the smart grid vision

Operational communications

� Production communications: where grid

safety and security are paramount

� Other communications:

where grid efficiency is the driver

Business communications

� Everyday business non-

operational voice and

data traffic

The different types of utility communications

© Alcatel-Lucent 2010 All Rights Reserved

where grid efficiency is the driver

Ultimately, converging on a single communications infrastructure

Multiple operational networks to consolidate

Communications modernization is required to make Smart Grid a reality

16 | IEEE SmartGridComm 2010| October 5th 2010

IP/MPLS: Enabling the transformation of networks and operations

Each service has its own network A mix of networking technologies

All services in one network

OptimizationSimplification

© Alcatel-Lucent 2010 All Rights Reserved

IP: the technology of tomorrow

� Brings simplicity of design and operation

� But changes the way networks are designed, built and operated

Existing applications: the reality of today

� Critical applications that must be supported

� Safety and reliability must be maintained

Turning a "revolution" into an "evolution"

17 | IEEE SmartGridComm 2010| October 5th 2010

A transformation use case

Teleprotection using IP/MPLS

Use case: A Transmission or a Distribution operator deploys a converged IP network to

be used for all current and future smart grid applications: Teleprotection,

SCADA, Mobile workforce, Smart meter, etc.

OptimizationSimplification

© Alcatel-Lucent 2010 All Rights Reserved

Requirement: Different applications have different latency allowances ranging from ~10ms

for Teleprotection to 1s for e.g. On demand SCADA

Challenge: Satisfy very strict latency and high reliability requirements of teleprotection

(today being performed with redundant TDM networks)

Simplification

1818 | IEEE SmartGridComm 2010| October 5th 2010

A transformation use case

Teleprotection using IP/MPLS: the role of standards

The challenge to communication applications� Typical telecommunications applications are less demanding in terms of delay:

� VoIP acceptable latency is around 200ms versus expected 10 ms for teleprotection

� But field trials are increasingly considering the use of teleprotection over IP

Possible optimizations� Traffic engineering recommendations (Best Current Practices) for configuring the

IP network to isolate the teleprotection traffic� Evolution of current teleprotection systems using TDM interfaces.

� Mapping TDM to IP based networks consumes a part of the 10ms delay budget� Consider native teleprotection over IP

© Alcatel-Lucent 2010 All Rights Reserved

� Consider native teleprotection over IP

This may require an evolution of standards

TDMEquip.

Data

Sig

PacketizationGigE GigE Data

Sig

Jitter Buffer

Packetization NetworkPlayout

TDM Packets moving in this direction

Packet SwitchedNetwork(PSN)

TDMEquip.

1919 | IEEE SmartGridComm 2010| October 5th 2010

A standards challenge4

© Alcatel-Lucent 2010 All Rights Reserved

A standards challenge4

20 | IEEE SmartGridComm 2010| October 5th 2010

ICT meets Power: a horizontal view

Service Plane� Billing� e-Commerce� Subscription management and activation� Business processes

Control and Connectivity plane� OAM functions� Protection and restoration� Traffic engineering� Connectivity and routing� Virtualization� Access technologies

Service

IP networkIP network

© Alcatel-Lucent 2010 All Rights Reserved

� Access technologies� Time synchronization

Energy Plane� Sensors� Electric storage and interconnection� Transmission and Distribution Power

Systems, etc.

… with some vertical enablers� Privacy� Security� Data models

Energy

Control& connectivity

One view of Smart Grid: considering Energy as a network plane

21 | IEEE SmartGridComm 2010| October 5th 2010

Actors Energy Plane

Control & Connectivity

Plane

ServicePlane

Grid operator: DSO

Grid operator: TSO

Planes vs. actors of the Smart Grid value chain

© Alcatel-Lucent 2010 All Rights Reserved

Consumers/Suppliers/generators

Energy Marketplace Actors

Grid Communication/

Communication Network Provider

Service Providers

Increasing level of Involvement

All actors can (and usually do) play a role in each of the 'planes'

22 | IEEE SmartGridComm 2010| October 5th 2010

Power meets ICT: a sub-system view

Communication is seen as a service provided by a sub-system� Risk: 'field' communication separated from the 'public' (or internet) one

� For clarification: role of network and service providers

© Alcatel-Lucent 2010 All Rights Reserved

A part of the IEC SG3 functional architecture

Harmonizing the sub-system and plane view (in standards) is key

23 | IEEE SmartGridComm 2010| October 5th 2010

It is also about connectivity

Wireline Netw

ork

Wireless Netw

ork

(IP/MPLS) Core Network

Utility Data and Control Center

Substation

Vehicle Charging Station

Power Station

DER Storage

Utility Office

© Alcatel-Lucent 2010 All Rights Reserved

Wireline Netw

ork

Wireless Netw

ork

Powerline Communication Network

HAN/LAN

NAN

DER Storage

Utility Pole

Micro Grid

Building (Residential, Business, Industrial, ..)

A variety of possible connectivity scenarios involving many technologies

24 | IEEE SmartGridComm 2010| October 5th 2010

Communication capabilities and open business scenarios

The (simplified) example of the home

The home of opportunities� Different models depending, in particular, on (national) regulation

� Different potential architectures (centralized, trusted 3rd party, …)

� Different communications scenarios

Standards impact� Need to define use cases, information flows, open interfaces

BillingCustomer care

Competitiveretail Internet

© Alcatel-Lucent 2010 All Rights Reserved

Customer care

Individualconsumption info, power delivery and power grid

status

Consumptionmeasurement

and command

retail

Distribution

End-userMeter

EnergyBox

CommsBox

UserInfo

Internet

Wireless

25 | IEEE SmartGridComm 2010| October 5th 2010

Reference Architecture: a key in standards work

A variety of views to capture the complexity of Smart Grid:� Conceptual, Functional, Communication, Security, Information, …

AMISubsystem

HomeAutomationSubsystem

DistributionAutomationSubsystem

SubstationAutomationSubsystem

H / 2.1

WAN

AMIHead End

S / 4.1S / 4.2

OperationsSubsystem

1.1

G / 7.2G / 7.1 / 7.3

Power PlantSubsystem

9.1

DERSubsystem

S / 6.1

ERP/ CIS / Billing

8 11

8/11?

AMISubsystem

AMISubsystem

HomeAutomationSubsystem

HomeAutomationSubsystem

DistributionAutomationSubsystem

DistributionAutomationSubsystem

SubstationAutomationSubsystem

SubstationAutomationSubsystem

H / 2.1H / 2.1

WAN

AMIHead End

AMIHead End

S / 4.1S / 4.1S / 4.2S / 4.2

OperationsSubsystemOperationsSubsystem

1.11.1

G / 7.2G / 7.2G / 7.1 / 7.3G / 7.1 / 7.3

Power PlantSubsystemPower PlantSubsystem

9.19.1

DERSubsystem

DERSubsystem

S / 6.1S / 6.1

ERP/ CIS / Billing

ERP/ CIS / Billing

88 1111

8/11?8/11?

© Alcatel-Lucent 2010 All Rights Reserved

Internet

10.110.2

Internet

10.110.110.210.2

Wir

eli

ne

Ne

two

rk

Wir

ele

ss N

etw

ork

(IP/MPLS) Core Network

Utility Data and Control Center

Substation

Vehicule

Charging Station

Power

Station

Powerline Communication Network

HAN/LAN

NAN

DER Storage

Utility Pole

Micro

Grid

Utility Office

Building (Residential, Business, Industrial, ..)

26 | IEEE SmartGridComm 2010| October 5th 2010

A complex Smart Grid standards eco-system

Many actors (and good reasons for that) with associated challenges� Interoperability: key role of Information Models

� Flexibility: open, business model agnostic interfaces

Vision &Framework

Influential Bodies

Service

IERN, ICERUS: FERC,

EU: ER-GEG /

Standards Bodies

Policy & Regulation

IEEE P2030, ITU-T, IEC Smart Grid Strategy GroupJoint Cen, Cenelec and ETSI

ANSI C12, IETF, Zigbee, ETSI

NIST, EPRI, SG-ETP

SEA, INCITS, OpenADR

DLMS, OpenADR,

© Alcatel-Lucent 2010 All Rights Reserved

Serviceplane

Control & connectivity

plane

US: FERC, EU: ER-GEG /

ACER,CEER

China: SERCFrance: CREUK: OFGEM

Etc.Energyplane

ANSI C12, IETF, Zigbee, ETSIIEC 60870, 61868-70, Cenelec

ANSI C12, IETF, Cenelec,IEEE 1686, 1588, IEC 61850, 62351, Zigbee, ETSI, 3GPP

IEEE PES, 1547, C37, IEC, NERC

DLMS, OpenADR, OPC-UA,

DLMS

DNP, NEMA

27

Harmonization of Requirements, Use cases and Standards is critical

27 | IEEE SmartGridComm 2010| October 5th 2010

(Opening) conclusions

© Alcatel-Lucent 2010 All Rights Reserved

(Opening) conclusions

28 | IEEE SmartGridComm 2010| October 5th 2010

The beginning of a transformational journey

Smart Grid is a profound change (and Rome was not built in one day)

� New domains: DER, Electrical vehicle, …� New business models, new actors (incl. the user)� New challenges: security, privacy, green, …� Convergence 2.0: fully ICT-enabled industry

� From communication as a burden to a full opportunity

Smart Grid is there� Business: Network refresh, IP transformation, Smart Metering, …

© Alcatel-Lucent 2010 All Rights Reserved

� Business: Network refresh, IP transformation, Smart Metering, …� Technologies: in particular, communications (IP, wireless, …)� Standards: gap analysis, use cases, data models, …

More Standards needed to go forward� Reference Architecture and Use cases� Pervasive Communications� Converged Information Models� Security, privacy� …

29 | IEEE SmartGridComm 2010| October 5th 2010

A huge collaborative effort ahead: industries, research, standards, …

www.alcatel-lucent.comwww.alcatel-lucent.com

© Alcatel-Lucent 2010 All Rights Reserved

www.alcatel-lucent.comwww.alcatel-lucent.com

30 | IEEE SmartGridComm 2010| October 5th 2010