How IoT Affects Smart Grid Emerging Technology

Strategy
Raiford Smith
Duke Energy
Director, Smart Grid Emerging Technology
5/2/2014

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About Duke Energy

Largest electric holding company in the

United States

Electric utility operations in North and

South Carolina, Indiana, Ohio, Kentucky
and Florida serving 7.1 million customers

Over 58,000 MW of regulated generation

8,000 MW of commercial generation

capacity including over 1500 MW of wind
and 50 MW of solar located throughout
the United States

Duke Energy International principally

operates and manages almost 4,300 MW
of owned capacity (primarily in Latin
America)

Emerging Technology Roles and Responsibilities

Emerging Technology is responsible for:

Technology development and testing

New technology strategy, roadmap, risk and opportunity identification
Lab/field testing of new technology
Establish business value and formulation of initial business case
development
Transmission
Emerging
Technology

Grid
Modernization

Develop

Deploy

Distribution
Information
Technology
Operate

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The Electric Utility Industry In a Nutshell

Supply

Generation / DER

Pipe

Transmission
Distribution

Demand

Customer

The purpose of the network is to efficiently enable whatever

transaction is desired between the customer and the supplier.
METCALFES LAW: The value of a network is directly
proportional to the square of the number of compatible
communicating devices.
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A Smart Grid Consists of Operational Technology, Information

Technology, and Telecommunications
Supply

Electric Grid
(Operational
Technology)

5/2/2014

Network

Telecommunications
(wired and wireless)

Demand

Software
(Information
Technology)

Convergence between O/T and I/T is enabled by

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telecommunications

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A Similar Convergence Has Already Occurred to Enable Smart

Phones
Handset
Operational Technology

Telecommunications
(wired and wireless)

Software
Information Technology

The same three technology categories have converged to enable

phones
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Many Capabilities Have Been Integrated Into A Single Smart Phone

Supports 3rd party
eco-system of
applications

On-board memory
and processing

Communicates
with other 3rd
party devices

Combines multiple
functions into one
Remembe
device

r these
devices?

Many devices were rendered obsolete by the smart phone a single

platform that consolidated many devices into one physical, logical, and
telecommunications hub.
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Function Integration, Cost Reductions, and Performance

Enhancements Are Enabled Through Standards and Inter-Operability
Top Handset Manufacturers - 10 years ago
Handset Manufacturer Software / OS

Top Handset Manufacturers today Software / OS

Handset Manufacturer

proprietary

proprietary

proprietary
proprietary

proprietary

This evolution was enabled by standards-based designs and easy inter-operability.

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6 McAlpine
circuits
~60 homes served
by McAlpine circuits

Sherrills Ford,
Rankin, McAlpine
Substations

Distribution
Circuit
Customer
Premise

Substation

The Electric Grid of Today is Similar to the Historic Telecommunications

Infrastructure (pre-smart phone)

5/2/2014

Solar PV
Energy Storage
Dist. Mgmt System
PMU (6)
Weather stations (7)

Line Sensors (200+)

Solar PV
CES, HES Energy
Storage
Comm. Nodes (3,000)
Intelligent Switches
DERMS/DMS
AMI metering (14,000)

Solar PV
Home Energy Manager
PEV
Charging Stations
Smart Appliances
Demand Response
In-home load monitoring

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DEMAND

A Standards-Based, Modular Communications Node Enables

Significant Benefits for Utilities and Their Customers
Smart
Assets

Smart Meter
Standards-Based
Comm Node

SUPPLY

ELECTRIC GRID

Transformer

5/2/2014

3G/4G, WiFi, GPS

Other Nodes

Ethernet / Serial

Line
Sensor

PLC / 900 MHz ISM

Distributed
Energy
Resources
Capacitor Bank
Intelligent
Switch
Street Light

ARM processor +
Memory
Linux-based OS
Open API
Messaging
3rd Party Apps
Security /
Network Mgr

One common platform that

can connect to generation,
transmission, distribution,
Required Comms.
and customer-owned
Optionalassets
Comms. using a standardsbased, modular design can
unlock a wide variety of
capabilities.
Computing
Capabilities

Smart Generation
Continuous
Emission
Monitoring

Internet

UTILITY CENTRAL
OFFICE

Weather Sensor

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The Communications Node as a Computing Platform

1 Node

Deep Blue
(1997) Super
Computer

McAlpine
Test Area

Ohio
Deployment

Watson (2011)
Super
Computer

SystemWide

Units

N/A

3k

150k

N/A

2.2MM

MIPS

750

3MM

2.3MM

113MM

100MM

1.7Bn

256 MB

64GB

768 GB

38.4 TB

16TB

563 TB

Memory

The processing and memory capabilities of our smart grid

compared to two notable super computers. This demonstrates
the considerable capabilities of a distributed intelligence system
to solve complex optimization problems.

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Interoperability and Rapid Response with Distributed Telemetry

Traditional Design Centralized Decision-Making

Meter

Transformer

Rapid Swing in Line Sensor

Production

Battery
Storage

Future State Distributed Decision-Making

Complements Centralized Systems

Meter Transformer Rapid Swing in Line Sensor

Production

Battery
Storage

Communication
Node

Response
Decision

Cellular Network

Cellular Network

Response
Decision +
Update
Model

Line Sensor
Head End

Update
Model

Utility Office

Utility Office

Centralized Response > 15 min

Line Sensor
Head End

Distributed Response < 500 msec

Using a communications node, we are able to make decisions faster, reduce outage times
and lower the cost to operate the system.
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The Field Message Bus: The Distributed, Standards-Based, OpenSource Internet of Things Enabler

Interoperability between OT, IT, & Telecom

Filtered & Compressed Telecom backhaul
Modular & Scalable Hardware and Software
End-to-End Encryption & Virtual Firewall

Proprietary
Network

Head
End B

Vendor C Solution
3G / LTE
Carrier

900MHz
ISM

Head
End C

3G/LTE,
WiFi, Ethernet,
or Fiber

Head
End B

Head
End C

R
UTILITY CENTRAL
OFFICE

Current State Message Bus at Data Center

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Head
End A
Field Message Bus

Vendor B Solution

Head
End A

Data Center Message Bus

Private
Carrier

Communication
Node
Data Center Message Bus

Vendor A Solution

Speed / Cost / Security

Communication
Node

UTILITY CENTRAL
OFFICE

Future State Message Bus in Field and Data Center

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IoT Enabled Data and Analytics Framework

Business Intelligence

S
e
c
u
r
i
t
y

Visualization / Discovery
Storage
(Structured)

Storage
(Unstructured)

CIM (Contextualization)

Analytics at
the
Substation

Field Message Busses (Translation)

Analytics at
the Edge

Smart
Assets

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Analytics at
the Central
Office

Smart Meter TransformerLine

Sensor Protection Street
& Control Light

Distributed
Weather Comm.
Energy
Resources Sensor Node

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One System, Multiple Functions, Many Savings

Capacitor Control

Opportunity
Cost-Savings

Streetlight Control

Regulator Control

AMI and Line Sensors

Weather Sensor

Impact

90% Transmission Telecommunications cost reduction

16-33% Distribution Automation cost reduction

15 minute to 250msec response time improvement

Performance Gains Interoperability of diverse assets unlocks data and allows systems
to coordinate better
Detect outages faster
Customer Benefits Respond more efficiently
More direct and interactive customer experiences possible
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