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Competing in
the information era.
A smarter approach to smart grids.
Smart grids are coming of age.
The technology, the processes and
the tools are being put in place to
make them truly smart and deliver
a wealth of value to utilities, to
consumers, and to third parties
who want to take advantage of
smart grid infrastructures. This
guide outlines the potential—and
the challenges—and demonstrates
why Oracle is the smart grid choice
for OEMs and systems integrators
seeking a true end-to-end solution
for utilities.
Foreword

                                                                                                                                                                                                                       Contents
           Carl Ford,
                                                                                                    put 1.6 billion dollars into energy storage   with over 9 million developers in the                                Introduction	                                5
           VP of CrossFire Media.
                                                                                                    and regional demonstration projects.          worldwide market today***. Java
                                                                                                                                                                                               As the invention of
           Worldwide the adoption of smart grid is not                                              It’s logical to understand that
                                                                                                                                                  represents not only a secure approach                                Part I: The Evolution of Smart Grids	        7
                                                                                                                                                  but is well understood, allowing             the PC gave new tools   —The Infrastructure Era	                     8
           about the benefits to the utilities but the control                                      developing a smart grid requires
                                                                                                                                                  application developers to make “an app       and the Internet        —The Device Era	                             9
           of consumption. Regardless of the any other                                              information technology, but for the
                                                                                                                                                  for that” for everything from managing       gave us new ways to     —The Information Era	                       10
                                                                                                    utilities it requires a change in mindset
           environmental or economic discussion the reality                                         from supplier to enabler. Information
                                                                                                                                                  the heat to correlating use to user-         communicate, the        —The Advantages of the Information Era	     14
                                                                                                                                                  specific goals.
           is the market for energy is far more competitive                                         technology changes the dynamics                                                            smart grid promise
                                                                                                                                                                                                                       Part II: The Cornerstones of Smart Grids	   17
                                                                                                    of supply demand and makes it so              This briefing provides the insight to help   new ways to control
           that it was just six years ago.                                                          that demand response solutions are            you understand the power of enabling         consumption.
                                                                                                                                                                                                                       — Open and Agile IT Infrastructures	        17
                                                                                                                                                                                                                       — Real-Time Information	                    20
                                                                                                    collaborative and two-way. As the             control to the consumer. Whether you
           In fact, according to BP’s Statistical      consuming more power than the                                                                                                                                   — The Capacity for Change	                  22
                                                                                                    invention of the PC gave new tools            are a utility, M2M OEM, or an integrator,
           Review of World Energy 2011*, most          United States for more than triple the                                                                                                                          — A Focus on Security	                      23
                                                                                                    and the Internet gave us new ways to          putting your energies into delivering
           countries have tripled their importing of   population, their goal is to deploy 280
                                                                                                    communicate, the smart grid promises          solutions for the smart grid pays off.
           oil and gas from over 15 suppliers, while   million smart meters by 2016 (In-Stat                                                                                                                           Part III: The Essentials of Smart Grids	    25
                                                                                                    new ways to control consumption.
           the suppliers themselves have doubled       report**) and to expand their use of                                                       You just have to be smart about it.                                  — Gathering Data	                           25
           their international customers. The result   renewables which has already reached         The goal is no longer to be utility                                                                                — Analysing Data	                           26
           is a more dynamic economic model            1% with solar and wind technologies.                                                       * http://www.bp.com/                                                 — Turning Raw Data into Real Information	   28
                                                                                                    supplier, but to enable third party
           for energy that has a direct impact on                                                                                                 multipleimagesection.do?categoryId=6
                                                                                                    solutions to use the smart grid to make
                                                       In the United States, the promise of                                                       840&contentId=7021557
           economies worldwide.                                                                     decisions. Where will these third parties                                                                          Part IV: The Reality of Smart Grids	        33
                                                       the electronic vehicle is creating an
                                                                                                    come? From the device standpoint, the         ** http://www.instat.com/press.                                      — Open-Platform Wireless Communications	    33
           To avoid being rip-sawed by competitive     opportunity for the consumer to be a
                                                                                                    answer is from the M2M community              asp?ID=3257&sku=IN1104731WH                                          — Dedicated SIM Platforms	                  33
           markets, countries are mandating that       repository for energy as well as a partner
                                                                                                    where temperature and energy sensors                                                                               — Smart Concentrators	                      34
           utilities manage demand response with       in avoiding overloads.
                                                                                                    dominate the deployments already.             *** http://jaxenter.com/how-many-java-                               — Smart Home Gateways	                      35
           alternative strategies and distribute
                                                       To enable distributed generation on          From the solutions perspective, the           developers-are-there-10462.html                                      — Non-Utility Peripherals	                  35
           their sources with renewable energy.
                                                       smart grids, the Depart of Energy has        answer is clearly Java which dominates
           For example in China, which is now
                                                                                                                                                                                                                       Part V: The Fastest Route to Smart Grids	   36




                                                                                                                                                                                                                                                                        3
Introduction



                   Smart grids are no longer about simply delivering power. They’re also about
                   delivering information to utilities that can help them control costs, improve
                   reliability, and take advantage of additional applications and processes.

                   For OEMs and systems integrators,              Utilities, meanwhile, want to lower                     An infrastructure, furthermore, that can
                   they represent a new opportunity to            operating costs and improve reliability.                provide a range of add-on services to
                   develop flexible, future-proof, and secure     They are looking to smart grids to                      make the smart grid truly smart, with
                   applications and products that will give       provide a wealth of invaluable usage                    robust technology that can be further
                   each of the three key audiences involved       and event data—and ease the load on                     developed and adapted over time to
                   major advantages.                              networks by delivering information to                   accommodate future demands.
                                                                  consumers that makes them proactive
                   The need to conserve resources and                                                                     But what are the implications of thinking
                                                                  in adjusting usage.
                   lower carbon emissions is prompting                                                                    intelligently about utility infrastructures
                   governments, for example, to                   And end users? Increasingly, they                       and the devices that connect to them?
                   encourage a change in energy usage             are looking for ways to control their
                                                                                                                          This guide looks at the evolution of
                   and distribution patterns. In the UK,          own energy usage to save costs, as
                                                                                                                          smart grids, addresses the issues that
                   the Government has committed to                well as access additional information
                                                                                                                          utilities face in their quest to compete
                   the rollout of smart meters for both           and services.
                                                                                                                          in an era when information itself is
                   electricity and gas in all homes and most
                                                                  To realise all of these advantages,                     becoming a valuable utility, and shows
                   small businesses by the end of 2020.
                                                                  smart grids require an agile yet secure                 the opportunities opening up for truly
                   £8.6 billion will be spent replacing some
                                                                  IT infrastructure that can collect,                     secure embedded JAVA applications
                   47 million meters, which are expected to
                                                                  analyse, and deliver information where                  and solutions in the Complex Event
                   deliver total benefits of £14.6 billion over
                                                                  it is needed, whenever it is needed,                    Processing (CEP) arena.
                   the next 20 years.*
                                                                  whatever it is needed for.




4                                                                   * ‘Smarter Grids: The Opportunity’, The UK Department of Energy & Climate Change, December 2009     5
Part I:
    The Evolution of Smart Grids



                                   Utilities across the globe all face the same challenge: how to support,
                                   maintain, and enhance infrastructures that, by their very nature, are
                                   large, expensive and, once installed, relatively inflexible. Added to
                                   this are environmental, regulatory, and consumer pressures that
                                   vary country by country, region by region, together with the need to
                                   contain costs, improve reliability, and maintain security.


                                   The answer across every utility has been     What was smart just five years ago          The new demands are, for the first time,
                                   to develop smart grids: infrastructures      has become a standard part of utility       giving utilities the chance to change the
                                   that help in the supply, metering, and       infrastructures. Smart devices that were    way they operate, with detailed usage
                                   billing of electricity by automating meter   regarded as cutting edge are now seen       information, real-time event
                                   reading and delivering information           as old-fashioned. The need to conserve      data, distributed generation, smart
                                   that can be used to improve business         energy is changing the way electricity is   switches and relays all bringing their
                                   decision-making.                             expected to be delivered and controlled.    own challenges.
                                                                                Infrastructures that once had defined
                                   The issue, however, is that as                                                           So the first point to address in any
                                                                                end-points are now extending into
                                   metering technologies, IT systems,                                                       discussion about smart grids is how
                                                                                devices in the home. Additional uses
                                   legislation, and user demands                                                            they have evolved—and where they
                                                                                are being expected from—sometimes,
                                   have advanced and changed, the                                                           are now heading.
                                                                                demanded from—smart grids, with
                                   expectations of what smart grids can
                                                                                those expectations and demands
                                   deliver has also changed.
                                                                                varying market by market.




6                                                                                                                                                                       7
It is estimated that                            The Infrastructure Era                                                                         The Device Era
a direct reduction
of 6% in electricity
consumption, with
a range of 1% to                                In the past, the drivers behind utility        The disadvantages of an                         Modern economies have now entered               The advantages are many, such as
10%, can be achieved                            networks were straightforward. Electricity     infrastructure-based approach are               the device era, in which the focus is on        utilities being able to bill more accurately,
in the residential                              simply had to be delivered to homes            that rather than being designed to              smart meters, which communicate the             near real-time data contributing to more
                                                and businesses. Cost and ease of               deliver, process and analyse data,              data they gather back to the utility, either    precise forecasting of future usage,
and small/medium
                                                implementation were the biggest factors,       such networks simply collect data at            wirelessly or using power lines, and can        and live usage data encouraging users
commercial building                             and the networks had to be scalable in         thousands of fixed end-points. That data        deliver processed information to users.         to economise
sectors through                                 order to accommodate new users with            has to be read and collated manually and
implementation                                                                                                                                 The drivers that have prompted the              The disadvantages are that the
                                                relative ease.                                 is fixed and unchangeable. It is difficult to
                                                                                                                                               device era are increasing regulatory            easier collection of data is still seen by
of smart grid                                                                                  add or enhance the data that is gathered,
                                                The advantages are similarly                                                                   pressures like the EU 20-20-20 target,          utilities as the main driver, rather than the
technologies.                                                                                  or the way that it is gathered.
                                                straightforward, particularly when the                                                         potential supply issues prompting utilities     analysis of it, and utilities remain largely
‘The Smart Grid: An Estimation of the Energy    average time in the utility industry for                                                       to track consumption far more accurately,       unaware of the wider potential of the
and CO2 Benefits’, Pacific Northwest National
Laboratory, January 2010
                                                components to be replaced is 30-40                                                             and utility companies trying to save on         two-way connection into homes and
                                                years. Such networks are simple to                                                             the cost of collecting meter data.              businesses and the consequent need
                                                maintain, with low tech components used                                                                                                        for open standards.
                                                throughout that can be easily replaced
                                                should they wear out.




                                                                           The focus is on the infrastructure with each                                                                       The focus is on devices with smart meters
                                                                           element siloed and separate from the others.                                                                       installed in homes for remote meter reading.




                                                Generation               Transmission                    Distribution         Consumers        Generation                 Transmission                  Distribution           Consumers

   8                                                                                                                                                                                                                                           9
The Information Era



 Utility companies, OEM partners,               Smart meters, for example, are                 Overall, smart grids in this                5.	 The deployment of smart                 9.	 The development of standards for
 and integrators are now talking about          becoming true smart meters that                information era differ from smart               technologies for metering,                  communication and interoperability
 smart grids in which information and           can send and receive actionable                grids of the past in ten key ways:              communications concerning                   of appliances and equipment
 connectivity become a utility, multiple        information to and from a variety of                                                           grid operations and status, and             connected to the grid
                                                                                               1.	 The increased use of digital
 levels of functionality exist, and further     other devices equipped with machine-                                                           distribution automation                 10.	 The lowering of unreasonable or
                                                                                                   information and controls technology
 functionality can be added as the              to-machine (M2M) communication in                                                          6.	 The integration of smart appliances          unnecessary barriers to adoption.
 need arises.                                   a secure environment.                          2.	 The optimisation of grid
                                                                                                                                               using embedded technologies
                                                                                                   operations and resources,
 The crucial point is that, just as utility     In addition to the connectivity to the             with full cyber security                7.	 The deployment and integration
 infrastructures deliver electricity            smart meter, the move to distributed                                                           of advanced electricity storage                                                  Analysis of 350 smart
                                                                                               3.	 The deployment and integration of
 wherever it is required, so smart grids        processing at the substation will also                                                         and peak-shaving technologies,
                                                                                                   distributed resources and generation,                                                                                        metering/demand
 should deliver information wherever            bring about actionable analysis, relying                                                       including plug-in electric and hybrid
 it is needed, in whatever form it is           on new applications that must be
                                                                                                   including renewable resources
                                                                                                                                               electric vehicles, and thermal-
                                                                                                                                                                                                                                response initiatives in
 needed, whenever it is needed. And,            developed—applications that are both           4.	 The incorporation of demand                 storage air conditioning                                                         more than 50 countries
 as importantly, the kind of information        standards-based and secure.                        response, demand-side resources,
                                                                                                                                           8.	 The provision to consumers of timely
                                                                                                                                                                                                                                represented 500
 they gather should change as the                                                                  and energy efficient resources
                                                                                                                                               information and control options                                                  million smart meters
 environment changes.                                                                                                                                                                                                           that could be deployed
                                                                                                                                                                                                                                within the next decade.
                                                                                                                                                                                                                                Smart Metering, Market Dynamics Report,
                                                                                                                                                                                                                                Q2 2011


            New sensors / distribution computing on transmission                              Smart Meters and Home Networks help
            and distribution lines alert operations, fix problems,                            customers use energy wisely, mitigate peak
            integrate large-scale renewables generation.                                      demand, integrate local renewables.




10                Generation                     Transmission                  Distribution         Consumers                                                                                                                                                             11
Summary Table



                                              The drivers that have encouraged              The advantages of such smart grids           Basic Utility Infrastructures                                          Smart Grids
                                              interest in the new era of smart grids are:   are that they can change and adapt as        Users are uninformed and non-participative.                            Users are informed, involved, and active.
                                                                                            required, providing to utilities masses
                                              „	 An increasing need to save electricity                                                  Dominated by central supply, with many obstacles                       Many distributed energy resources with plug-and-play
Utilities need to                                                                           of usage data such as voltage, energy        to the connection of distributed resources.                            convenience, and a focus on renewables.
                                                 whenever possible
choose technologies                                                                         supplied, and time of usage (TOU),
                                                                                                                                         Limited wholesale markets, not well integrated,                        Mature, well-integrated wholesale markets,
that are interoperable                        „	 The emergence of M2M devices               together with event data such as power
                                                                                                                                         with limited opportunities for users.                                  and growth of new markets for users.
                                                 in home appliances like washing            outages, tampering alerts, and service
so that the larger                                                                                                                       Focus on supply with a subsequent slow response                        Quality is a priority with a variety of quality/price options,
                                                 machines and air conditioning              diagnostics. This wealth of information
grid can be built.                                                                                                                       to quality issues.                                                     and the rapid resolution of issues.
                                                 systems that allow them to be turned       allows applications and uses to be added
‘Smart metering – a review of experiences        off by the utility provider at times of    and removed as required.                     Little integration of operational data with asset                      Greatly expanded data acquisition and analysis capability,
and potential across multiple geographies’,
                                                 peak demand, the utility gaining by                                                     management, resulting in business-process silos.                       reaching beyond traditional parameters.
Datamonitor, November 2009
                                                 having control over demand in peak         The disadvantages are that they are          A focus on protecting assets following faults.                         Automatic detection and response to problems,
                                                 periods, the user gaining from off-        more complicated to specify, configure,                                                                             with a focus on prevention, minimising impact to users.
                                                 peak tariffs                               implement, and maintain. The number of
                                                                                                                                         Vulnerable to malicious acts of terror and natural disasters.          Resilient to attack and natural disasters with
                                                                                            potential M2M devices and applications                                                                              rapid restoration capabilities.
                                              „	 Recognition that information can
                                                                                            that could connect to smart grids, for
                                                 become a tool to drive down costs,                                                      Uses traditional fuels and sources.                                    Uses cleaner supply technologies and reduced CO2 emissions.
                                                                                            example, is extremely wide and diverse
                                                 provided it is accessible                                                               Limited information provided by single-use, proprietary devices.       A wealth of information available from M2M devices that
                                                                                            and there is a danger of information
                                                 and actionable                                                                                                                                                 are re-programmable and re-purposable.
                                                                                            overload or blockage. There are also
                                              „	 The emergence of mobile phone and          increasing concerns about the security of
                                                 PC apps that allow users to control        information held within smart grids.
                                                                                                                                        The evolution of Smart Grids
                                                 their energy use remotely
                                              „	 The adoption of wind turbines and                                                              Summary                                                                               Electricity
                                                                                                                                                                           Time of use                                                                              MicroGrid
                                                                                                                                                  bills                                                                                storage
                                                 other devices in the electricity arena                                                                                      pricing                                                                                balancing
                                                                                                                                                                                                         Smart meters
                                                 turning users into generators as well                                                        Automated                                                                              Home area
                                                                                                                                             meter reading                  Advanced                                                  networks
                                                 as consumers.                                                                                                                                                                                                       Real-time
                                                                                                                                                                             metering
                                                                                                                                                 Demand                                                                                                               pricing
                                                                                                                                                                          infrastructure                                               Smart
                                                                                                                                                                                                          Advanced
                                                                                                                                                response                                                                             appliances
                                                                                                                                                                                                         distribution
                                                                                                                                                                           Critical peak                 management                                                   Electric
                                                                                                                                               Distribution                                                systems                   Distributed
                                                                                                                                               automation                     pricing                                                generation                       vehicles


                                                                                                                                        10 years ago                                                        Now                                                       Future: 10 years


  12                                                                                                                                                                                                                                                                                     13
The Advantages of                                                    Businesses
 The Information Era                                                  Businesses can track energy usage to identify
                                                                                                                                                            Systems Integrators
                                                                      potential savings, switch additional services on
                                                                      and off quickly and easily, and take advantage                                        Systems Integrators can plan for any requirement
                                                                      of new services as soon as they are introduced,                                       in a new or existing infrastructure, introduce new
                                                                      with middleware managing the complex task of                                          services quickly and easily, and repurpose M2M
                                                                      collating information from a multitude of systems.                                    devices as required, with open standards removing
            Consumers                                                                                                                                       compatibility problems and speeding the process.

            Consumers can monitor their energy usage, save
            money by using high-demand appliances off-peak,
            sell energy back to the utility, plug in third party
            devices like health monitoring systems, and access a                                                                                                                             OEMs
            range of additional information services in the future.                                                        Distribution                                                      OEMs can design smart
            All through flexible and agile devices and applications
            that can change as the market changes.
                                                                                                                           Network                                                           meters and other M2M
                                                                                                                           Operators                                                         devices that are flexible,
                                                                                                                                                                                             re-purposeable, and
                                                                                                                           Distribution Network Operators
                                                                                                                                                                                             secure, and that can be
                                                                                                                           can track real-time usage
                                                                                                                                                                                             integrated into future M2M
                                                                                                                           permanently, allowing them
                                                                                                                                                                                             devices, offering real long-
                                                                                                                           to adapt the infrastructure to
                                                                                                                                                                                             term value to utilities.
                                                                                                                           suit local demands, identify
                                                                                                                           potential weak spots and move
                                                                                                                           from reactive management to
                                                                                                                           proactive monitoring.




                                                     Utilities
                                                     Utilities can track usage in real time, even out peaks
                                                     in demand, identify network issues immediately, bill
                                                     customers accurately, and respond to changes in the
14                                                   supply environment quickly and easily, with a flexible,                                                                                                          15
                                                     agile infrastructure that can adapt to new demands.
Part II:
     The Cornerstones of Smart Grids



                                       The journey to the smart grid in the information era, while
                                       worthwhile for utilities, OEMs, and integrators, means
                                       that any smart grid deployment has to be based on four
                                       essential cornerstones, all of which are critical for success.

                                       Open and Agile                               In order for smart grids to be truly
                                       IT Infrastructures                           smart, therefore, the IT infrastructure
                                                                                    underpinning them needs to be open
                                       With traditional infrastructures, the life
                                                                                    and agile, providing a common platform
                                       expectancy of components is 30-40
                                                                                    for the many emerging components,
                                       years, during which what they can do
                                                                                    technologies, and applications in
                                       and the information they deliver does
                                                                                    different areas.
                                       not change.
                                                                                    Planned correctly, the infrastructure can
                                       Smart grids are different because
                                                                                    deliver a constant stream of data through
                                       the applications they need to access,
                                                                                    a variety of devices and applications.
                                       collect, deliver, and return back to
                                       both the user and the utility have to be
                                       flexible, future-proof, and secure.




16                                                                                                                              17
If smart grids come to fruition,
                                                                                                                                                                           consumers will flock to:

                                                                                                                                                                           62%	In-home displays
                                                                                                                                                                                        for real-time
                                                                                                                                                                                        access to usage
 Key to the success of such an approach        as asset utilisation and management,      Distributed Intelligent Agents               fast load flow analysis; system                   and cost data
 are integrated, scalable, proven, and         work management, outage                   Distributed Intelligent Agents are           performance monitoring,
 standards-based technologies that             management, and GIS-based systems.        adaptive, self-aware, self-healing, and      simulation and prediction;           51%	 Smart
 will contribute to the flexibility of the                                               semi-autonomous control systems              condition-based maintenance;                      appliances
                                               Advanced Control Methods
 infrastructure at every stage:                                                          that respond rapidly at the local level to   outage management; and
                                               The communication infrastructure
                                                                                         unburden centralised control systems         asset optimisation.                  31%	 Mobile device
 Integrated Communications                     supporting today’s emerging smart                                                                                                        portals
                                                                                         and human operators. Several of
 With a fully integrated data                  grids consists of a wide spectrum of                                                   Decision Support
 communications architecture, smart            technologies patched together. The
                                                                                         these agents are often combined to
                                                                                                                                      In smart grids, complex and          18%	 Distributed
 grids can capture, distribute, process,       required information is transmitted
                                                                                         form a multi-agent system with peer-
                                                                                                                                      extensive system information
                                                                                                                                                                                        energy
 and analyse large amounts of real-time        from the sensor to the control systems,
                                                                                         to-peer communication.
                                                                                                                                      needs to be rendered into
                                                                                                                                                                                        resources
 data from sensing and measurement
 devices. This acquisition and transfer of
                                               processed by the control systems,
                                               and then transmitted to the controlling
                                                                                         40% of CO2 emissions                         formats quickly understood by
                                                                                                                                      system operators so that they
                                                                                                                                                                           11%	 Plug-in hybrid
                                                                                                                                                                                        electric
 data supports the grid’s ability to detect,   devices. This is too limited to support   come from power                              can understand the overall                        vehicles (PHEVs)
 analyse, and respond autonomously to          the high-speed requirements and           generation. By                               status of the grid at a glance and
 adverse trends and conditions.                broad coverage needed by Advanced         2020, Europe has                             lend support to the self-healing     10%	 Electricity
                                               Control Methods, and does not                                                          aspect of the grid.                               storage
 The data and information made available
                                               provide the networked, open
                                                                                         committed to
                                                                                                                                                                           Oracle Survey of 150 North American
 using integrated communications
                                               architecture format necessary for the     cutting these                                New applications such as
                                                                                                                                                                           C-level utility executives, 2010
 technologies additionally benefits other                                                                                             advanced pattern recognition,        —Executives asked to select the top two
 processes and technologies, such
                                               continued enhancement and growth          emissions by 20%,                            holographic video, geospatial
                                                                                                                                                                           advances they believe will take off fastest.
                                               of smart grids.
                                                                                         producing 20%                                reporting, and dashboard
                                               In true smart grids, Distribution         of energy from                               presentations can all improve
                                               automation (DA) technologies can be                                                    visualisation and thus increase
                                                                                         renewable sources,
                                               used to monitor and operate devices                                                    the human operator’s
                                               installed throughout the distribution     and increasing                               understanding and speed
                                               system, thereby optimising station        energy efficiency                            of comprehension.
                                               loadings and reactive supply,             by 20%.
                                               monitoring equipment health,
                                               identifying outages, and providing        In smart grids, these multi-agent
                                               more rapid system restoration.            systems are capable of reaching goals
                                                                                         difficult to achieve by an individual
                                                                                         system and can be used for ultra-
18                                                                                                                                                                                                                        19
Real-Time Information                              quality. On top of this, other data such      The challenge for OEMs and
                                                    as network outage notifications, tariff       systems integrators is to develop
 The second and perhaps most important
 issue for utility companies is the fact
                                                    updates, and firmware updates also            solutions for utilities that offer:            Utilities must support smart grids with the
                                                    need to be transferred to and from smart
 that real-time information becomes a                                                             „	 An open standards architecture              additional processing power needed to:
                                                    meters. And that’s before other M2M
 utility. And, like a utility, the sheer scale of                                                    that optimises future flexibility and
                                                    applications are even considered.
 information flowing to, through, and from                                                           freedom of choice
                                                                                                                                                 „	 Continually assess power              or feeding customer-owned
 a smart grid will be vast. Estimates from          A pre-requirement of a truly smart grid       „	 M2M devices that similarly speak the           delivery and available                distributed generation into the
 The Electric Power Research Institute              is therefore a resilient, scalable system        same language and can interact with
 (EPRI) indicate a growth of 800% over              capable of communicating with and
                                                                                                                                                    feeder capacity                       grid through net metering
                                                                                                     each other faster and more easily
 what utilities experience today.                   processing all of the messages from a
                                                                                                  „	 The ability to capture, store, analyse,     „	 Analyse sensor data to             „	 Size the network to optimise
                                                    large mixed smart meter estate within a
 In traditional infrastructures, for example,                                                        distribute, and manage the large               mitigate feeder problems              available capacity and limit
                                                    finite processing window.
 meter readings are taken at defined                                                                 volumes of data involved in the                before they occur                     line losses
 periods and customers are billed                   That data must then be turned into               management of a smart grid
 based on those readings. With the                  something that is actionable and                                                             „	 Prepare bills that reflect         „	 Provide near-real-time views
                                                                                                  „	 Reliability, scalability, security,
 need for smart grids to deliver real-time          usable across the business from                  flexibility, and manageability of              and explain to customers              of usage and costs that
 information, it is generally accepted              forecasting to program development               the IT systems                                 the complex pricing models            empower customers to make
 that usage and event data needs to be              to asset management. It is here that
 acquired at 30-minute or even 15-minute            the importance of platform integration
                                                                                                  „	 High performance in real-time data             that encourage them to shift          the best usage decisions for
 intervals, and then processed, stored,                                                              transactions, transaction speed, and           optional electricity use to off-      their situation.
                                                    and open architecture really comes into
                                                                                                     data volumes
 and made available.                                play. There are large financial benefits to                                                     peak hours
                                                    efficiently leveraging available enterprise   „	 System resilience in terms of                                                     In order to handle the massive
 Even at the lower limit of 30 minutes,
                                                    information with real-time smart grid            automatic back-up and fail-over             „	 Manage rebates and incentive       increase in data, it is critical that
 48 separate items of usage data alone
                                                    operational data through data sharing            procedures architected in to                   processes for customers            application architecture uses
 need to be parsed, verified, validated,
                                                    between legacy systems.                          the system                                     purchasing and installing          building blocks that are open,
 and securely stored for every customer
 every day. If a large utility has 10 million       There are also many advantages of using
                                                                                                  „	 Robust data management systems                 energy-efficient equipment         flexible, adaptable, and scalable.
 customer accounts, this would equate                                                                that are able to categorise data in
                                                    embedded technologies which offer high
 to 480 million pieces of data. Per day.                                                             terms of its latency, priority, currency,
                                                    performance and functionality yet low
 And this does not include additional                                                                accuracy, recoverability, and longevity.
                                                    latency, and can be relied upon in the
 data channels that utilities now want to           long-term for ongoing support.
 collect such as event alerts and power

20                                                                                                                                                                                                                             21
What smart grid components
                                                                                                                                          will see wide-scale utility
                                                                                                                                          adoption most quickly?


 The Capacity for Change                       meters are expected to collect, process,   monitoring systems that can be installed        63%	Smart metering                             A Focus on Security                          of smart meters or concentrators on

 The thinking behind smart grids, in
                                               and respond to.                            quickly and easily. Once again the smart
                                                                                                                                          48%	Demand                                     The concern for many utilities when
                                                                                                                                                                                                                                      the grid. Instead a common security

 terms of what is possible and what
                                                                                          grid is the highway that can be used by                     response and                       considering smart grids is to contain
                                                                                                                                                                                                                                      standard has to be adopted for every
                                               Inside the home, smart appliances like
                                                                                          third party companies and M2M devices.                      critical peak                                                                   smart meter and device at every
 can be delivered on a large scale, is         washing machines and air conditioning                                                                                                     costs and improve reliability. A
                                                                                                                                                      pricing                                                                         endpoint, with embedded security as
 changing all of the time. Hence, smart        systems that modify their energy           So far more will be expected from                                                              major issue that always lurks in the
                                                                                                                                                                                                                                      the rule, not the exception.
 meters and other M2M devices need to
 be designed so that they can adapt to
                                               consumption during times of peak
                                               demand are already being developed.
                                                                                          the smart meters and smart devices
                                                                                          of tomorrow than today. OEMs and
                                                                                                                                          38%	Smart                                      background, however, is the security of
                                                                                                                                                                                         the grid itself.                             Similarly, once data is processed and
                                                                                                                                                      distribution and/
 the shifting environment around them.         Fridges will follow, and domestic          integrators need to be thinking about                       or transmission                                                                 analysed within the utility, customer and
                                                                                                                                                                                         Every day, every utility has to defend
                                               heating boilers, and audio visual          it now, however, because embedded                           operation                                                                       employee access to information needs to
 Plug-in hybrid electric vehicles (PHEVs),                                                                                                                                               itself from countless cyber attacks,
                                               equipment and… think of a device that      technologies will be key in extending the                   devices                                                                         be streamlined with automated access
 for example, may also be seen by the                                                                                                                                                    intrusions, and hackers who want to
                                               consumes energy and the likelihood is      lifespan of infrastructures for utilities and                                                                                               and identity management, and next-
 network as a battery source that can,
 at times of peak demand, be used
                                               that M2M technologies will emerge to       the commercial opportunities that               30%	Integration of                             destabilise the distribution grid. With
                                                                                                                                                                                         new devices in smart grids providing
                                                                                                                                                                                                                                      generation consumer energy portals.
                                               even out demand.                           will arise.                                                 renewables
 to help supply electricity rather than                                                                                                                                                  more data, utilities are being exposed       Issues like this require OEMs and
                                                                                                                                                      (hydro power
 consume it. So smart meters have to           The driver for consumers will be                                                                                                          to more security challenges than ever        integrators to use a platform for the
                                                                                                                                                      and wind energy)
 be able to accommodate this change            lower tariffs when demand falls, once                                                                                                     before. And this is only the beginning.      smart meters and any other M2M
 by, for instance, running backwards           again requiring those smart meters to                                                      26%	Increase in                                Future developments of smart grids           devices that is utterly secure in order
 when electricity is being supplied, or by     be adapted.                                                                                            smart sensors                      will see them extend into areas inside       to reassure users, yet agile enough to
 reducing supply if such battery-stored                                                                                                               on the network                     homes and businesses, where the grids        reduce the time and cost of compliance
 power is fed directly into the house.         In order for a UK                                                                                                                         become highways for other services.          by rapidly adjusting to new regulations
                                               smart grid to work,
                                                                                                                                          21%	 Accommodation                             These services will, by their very nature,   and mandates.
 Once price and legislation allows, many                                                                                                              of plug-in                         carry sensitive data that has to be
 more consumers will invest in wind            the smart meter                                                                                        hybrid electric                    protected at every point in the grid.        In order to guarantee commercial
 turbines and become power generators
                                               system alone will                                                                                      vehicles (PHEVs)                                                                success in the information era, therefore,
 as well as power users, selling electricity                                                                                                                                             It is not enough for each smart meter        the focus needs to be on inherent and
 back to the grid and changing the way
                                               need to process                                                                            Oracle Survey of 150 North American C-level
                                                                                                                                                                                         and M2M device to promise its own            integrated security throughout smart
                                                                                                                                          utility executives, 2010—Executives asked to
 power grids are controlled.                   a minimum of                                                                               select up to three smart grid components.      security protocols, independently            grid infrastructures using proven,

 The increasing use of batteries for
                                               2,256,000,000 separate                                                                                                                    developed and tested. Nor is it sufficient   established technologies with an existing
                                                                                                                                                                                         for M2M devices to trust in the security     support ecosystem.
 storage will additionally localise supply     data items per day.
 as well as demand, placing yet more
 demands on the information that smart         Healthcare too is in the spotlight, with
                                               smart grids acting as the backbone for

22                                                                                                                                                                                                                                                                            23
Part III:
     The Essentials of Smart Grids



                                     Smart grids, by their very nature, have complex infrastructures comprised
                                     of many components, lots of which are concerned with carrying electricity
                                     to consumers safely and with minimum loss. The key concern for OEMs
                                     and systems integrators developing solutions for gathering and analysing
                                     data, and transforming that data into valuable information, is to ensure that
                                     those solutions integrate seamlessly with the smart grid.

                                     Gathering data                                Not every appliance in the home has        will play a growing interactive role in
                                                                                   the potential to be ‘smart’, however.      energy-efficient homes in smart grids,
                                     In every smart grid, it is the last mile in
                                                                                   Component costs and market price           by communicating with and controlling a
                                     particular where there is the opportunity
                                                                                   points dictate that smaller devices with   range of smart appliances and devices.
                                     for OEMs and systems integrators to
                                                                                   no user interface and a limited response
                                     develop new technologies and products                                                    Smart Meters
                                                                                   requirement are unsuitable from a cost
                                     that can help utilities gather more data.                                                Smart meters are the real hub of
                                                                                   as well as complexity perspective.
                                     Smart Appliances                                                                         information in smart grids. Instead
                                     A lot has been written about how usage        Smart Apps                                 of being relatively dumb devices that
                                     data from smart appliances like washing       At the next level up, a widening range     monitor and report energy usage and
                                     machines, freezers and air conditioning       of applications on tablet PCs, smart       little else, modern smart meters gather
                                     systems can be gathered and used to           phones and other devices are gathering     more information, more frequently.
                                     have a real and lasting impact by moving      information and showing users energy       Giving utilities the ability to access
                                     usage and energy consumption to off-          usage in real time, whenever and           many different channels of usage and
                                     peak periods.                                 wherever they want it. With increasing     event data—and enhance and expand
                                                                                   regulation and mandates for energy-        that data as the environment and
                                                                                   efficient white goods, smart apps          needs change.




24                                                                                                                                                                      25
What are your biggest smart grid
                                                                                                                                        priorities for the next 10 years?

                                                                                                                                        45%	Improving service
                                                                                                                                                    reliability and
     Analysing Data                               of collecting. Added to this is the         generation tool to closely emulate                    operational
                                                  complexity of converting raw data into      production scenarios and realistic
     Just as important as the last mile of                                                                                                          efficiency
                                                  usable business intelligence.               distribution of the data. 80% of the
     smart grids is the first mile—at the
     headquarters or data centre of the utility   Take usage data. It needs to be
                                                                                              accounts created were for residential     41%	 Implementing
                                                                                              customers, 18% for commercial                         smart metering
     itself. Rather than gathering data, it is    mediated (converting measured
                                                                                              customers, and 2% for industrial
     here that the same data is aggregated,       consumption into rateable units of
                                                                                              customers. In addition to the financial   37%	Developing
     analysed, processed, and turned into         measure); rated (applying complex                                                                 demand response
                                                                                              history data, one year of historical
     information before being passed on to        rate and discount structures to the                                                               and energy
                                                                                              meter readings was also created.
     the various departments that need it.        mediated usage); billed (assembling the                                                           efficiency
                                                  rated information into discreet financial   The result                                            programs                          The cost of
     The biggest issue with smart grids is the
                                                  transactions for interface to the general   Given the huge demands placed                                                           generating a
     sheer volume of usage and event data
                                                  ledger); and invoiced (assembling the       upon a relatively modest server           23%	Updating physical                         kilowatt-hour of
     that smart grids are capable
                                                  billable information for presentation to    configuration, the result was                         infrastructures
                                                                                                                                                                                      electricity is 70 to
                                                                                              surprising. Running on just two
                                                  the customer).
                                                                                              Sunfire X4470 servers on the
                                                                                                                                        17%	 Offering real-                           170 times the cost
                                                  Suddenly, what was an initiative that
                                                                                                                                                    time pricing                      of saving a KWH
                                                                                              application tier and a quarter
                                                                                                                                                    options
                                                  can help utilities work smarter becomes     rack Exadata v2-2 server on the                                                         through efficiency.
                                                  one that could make their work even
                                                  more complex.
                                                                                              database tier, the benchmark              15%	 Increasing your                          ‘Real. Smart. Solutions’,
                                                                                              demonstrated that Oracle Utilities                    renewable                         GE Digital Energy, 2010

                                                  Providing a benchmark                       Customer Care and Billing v2.3.1                      portfolio
                                                  In order to demonstrate that a complex      is able to process bills at a rate
                                                  billing scenario can be handled with a      of 993,240 bills/hour. While the          14%	 Optimising
                                                                                              measured throughput is reaching
                                                                                                                                                    existing business
                                                  solution that meets market windows
                                                                                              extreme performance, the Exadata
                                                                                                                                                    processes
                                                  and regulatory requirements, with low
                                                  total cost of ownership and a high          2-node utilisation was less than          Oracle Survey of 150 North American
                                                                                                                                        C-level utility executives, 2010—Executives
                                                  return on investment, Oracle tested         55%, leaving ample room to grow or        asked to select their top two priorities.
                                                  its Utilities Customer Care Billing         host other applications in the same
                                                  2.3.1 software on an Oracle Exadata         database server.
                                                  Database Machine X2-2.

                                                  12 months of historical financial data
                                                  for one million customer accounts
                                                  was created using an internal data
26                                                                                                                                                                                                                27
          © Idaho National
          Laboratory/Flikr
Turning Raw Data into                    The Intelligent Choice                      Outage Management and Distribution                 Oracle Utilities Meter Data Management
     Real Information                         The first foundation for many               Management capabilities) and world-                can serve as the foundation for a smart
                                              organisations seeking to exploit            class Oracle Fusion Middleware to                  metering initiative, integrating with
     There are many reasons for choosing
                                              information and intelligence is Oracle.     handle complex event processing,                   multiple advanced metering solutions
     technologies to support a smart grid.
                                              Oracle offers mission-critical software     batch operations, the streamlining                 and acting as a central data repository.
     But for OEMs, systems integrators,
                                              applications, a proven operational          of business processes, alignment of                It provides validated, ‘clean’ data for
     telcos, and other parties involved in
                                              software suite, high-performance            business applications, exponential data            downstream systems such as billing,
     the planning, design, configuration,
                                              servers and storage, and world-leading      growth, and visualisation for embedded             customer care, network management
     and implementation of smart grids for
                                              middleware and embedded technology          spatial capabilities.                              and more, feeding processed and
     utilities, several questions remain.
                                              that can help address every smart grid                                                         formatted data to the Oracle Utilities
                                                                                          Oracle’s smart metering software,
     What technology should be trusted        and smart meter challenge.                                                                     applications that support smart metering.
                                                                                          similarly, is a solution set that offers new
     in the development of smart meters
                                              As importantly, Oracle provides end-        ways to conserve energy, potentially
     and other M2M devices? Will the
                                              to-end solutions with the world’s most      reducing bills and carbon footprints.
     choice of a particular technology over
                                              complete set of software choices that
     another end up restricting choices
                                              help utilities address emerging customer
     in the future? Is there a technology
                                              needs, speed the delivery of utility-                                                                                  As well as understanding the
     that can be integrated with existing                                                 Oracle utility industry solutions                                          complexity around smart grid
                                              specific services, increase corporate
     technologies to enhance smart
                                              administration efficiency, and turn                                                                                    initiatives and implementations,
     grids? Does the technology use the
     Common Information Model (CIM), now
                                              business data into business intelligence.                                              Application for utilities       Oracle provides a complete footprint
     recognised as the data standard for      Oracle’s smart grid software, for
                                                                                                                                                                     of flexible, innovative technology and
     smart grids? How can that technology     example, is a solution set that is based
                                                                                                                                     Middleware for utilities        applications that increase efficiency,
     be employed to gather masses of usage    on the Common Information Model and                                                                                    improve stakeholder satisfaction,
                                                                                                                                         Database for utilities
     and event data—and then turn that data   uniquely positioned to provide utilities                                                                               future-proof organisations, and turn
     into actionable, usable information?     with the end-to-end applications to help                                                                               information itself into a powerful
                                                                                                                                Operating system for utilities
                                              solve their technology needs.
                                                                                                                                                                     utility. Making Oracle the smart grid
                                                                                                                                 Virtual machine for utilities
                                              The role of operational applications                                                                                   choice for utilities everywhere.
                                              starts with the distribution management                                                      Servers for utilities
                                              features of Oracle Utilities Network
                                                                                                                                          Storage for utilities
                                              Management System (which includes



28                                                                                                                                                                                                     29
Competing In The Information Era: A Smarter Approach to Smart Grids
Competing In The Information Era: A Smarter Approach to Smart Grids
Competing In The Information Era: A Smarter Approach to Smart Grids
Competing In The Information Era: A Smarter Approach to Smart Grids
Competing In The Information Era: A Smarter Approach to Smart Grids

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Competing In The Information Era: A Smarter Approach to Smart Grids

  • 1. Competing in the information era. A smarter approach to smart grids.
  • 2. Smart grids are coming of age. The technology, the processes and the tools are being put in place to make them truly smart and deliver a wealth of value to utilities, to consumers, and to third parties who want to take advantage of smart grid infrastructures. This guide outlines the potential—and the challenges—and demonstrates why Oracle is the smart grid choice for OEMs and systems integrators seeking a true end-to-end solution for utilities.
  • 3. Foreword Contents Carl Ford, put 1.6 billion dollars into energy storage with over 9 million developers in the Introduction 5 VP of CrossFire Media. and regional demonstration projects. worldwide market today***. Java As the invention of Worldwide the adoption of smart grid is not It’s logical to understand that represents not only a secure approach Part I: The Evolution of Smart Grids 7 but is well understood, allowing the PC gave new tools —The Infrastructure Era 8 about the benefits to the utilities but the control developing a smart grid requires application developers to make “an app and the Internet —The Device Era 9 of consumption. Regardless of the any other information technology, but for the for that” for everything from managing gave us new ways to —The Information Era 10 utilities it requires a change in mindset environmental or economic discussion the reality from supplier to enabler. Information the heat to correlating use to user- communicate, the —The Advantages of the Information Era 14 specific goals. is the market for energy is far more competitive technology changes the dynamics smart grid promise Part II: The Cornerstones of Smart Grids 17 of supply demand and makes it so This briefing provides the insight to help new ways to control that it was just six years ago. that demand response solutions are you understand the power of enabling consumption. — Open and Agile IT Infrastructures 17 — Real-Time Information 20 collaborative and two-way. As the control to the consumer. Whether you In fact, according to BP’s Statistical consuming more power than the — The Capacity for Change 22 invention of the PC gave new tools are a utility, M2M OEM, or an integrator, Review of World Energy 2011*, most United States for more than triple the — A Focus on Security 23 and the Internet gave us new ways to putting your energies into delivering countries have tripled their importing of population, their goal is to deploy 280 communicate, the smart grid promises solutions for the smart grid pays off. oil and gas from over 15 suppliers, while million smart meters by 2016 (In-Stat Part III: The Essentials of Smart Grids 25 new ways to control consumption. the suppliers themselves have doubled report**) and to expand their use of You just have to be smart about it. — Gathering Data 25 their international customers. The result renewables which has already reached The goal is no longer to be utility — Analysing Data 26 is a more dynamic economic model 1% with solar and wind technologies. * http://www.bp.com/ — Turning Raw Data into Real Information 28 supplier, but to enable third party for energy that has a direct impact on multipleimagesection.do?categoryId=6 solutions to use the smart grid to make In the United States, the promise of 840&contentId=7021557 economies worldwide. decisions. Where will these third parties Part IV: The Reality of Smart Grids 33 the electronic vehicle is creating an come? From the device standpoint, the ** http://www.instat.com/press. — Open-Platform Wireless Communications 33 To avoid being rip-sawed by competitive opportunity for the consumer to be a answer is from the M2M community asp?ID=3257&sku=IN1104731WH — Dedicated SIM Platforms 33 markets, countries are mandating that repository for energy as well as a partner where temperature and energy sensors — Smart Concentrators 34 utilities manage demand response with in avoiding overloads. dominate the deployments already. *** http://jaxenter.com/how-many-java- — Smart Home Gateways 35 alternative strategies and distribute To enable distributed generation on From the solutions perspective, the developers-are-there-10462.html — Non-Utility Peripherals 35 their sources with renewable energy. smart grids, the Depart of Energy has answer is clearly Java which dominates For example in China, which is now Part V: The Fastest Route to Smart Grids 36 3
  • 4. Introduction Smart grids are no longer about simply delivering power. They’re also about delivering information to utilities that can help them control costs, improve reliability, and take advantage of additional applications and processes. For OEMs and systems integrators, Utilities, meanwhile, want to lower An infrastructure, furthermore, that can they represent a new opportunity to operating costs and improve reliability. provide a range of add-on services to develop flexible, future-proof, and secure They are looking to smart grids to make the smart grid truly smart, with applications and products that will give provide a wealth of invaluable usage robust technology that can be further each of the three key audiences involved and event data—and ease the load on developed and adapted over time to major advantages. networks by delivering information to accommodate future demands. consumers that makes them proactive The need to conserve resources and But what are the implications of thinking in adjusting usage. lower carbon emissions is prompting intelligently about utility infrastructures governments, for example, to And end users? Increasingly, they and the devices that connect to them? encourage a change in energy usage are looking for ways to control their This guide looks at the evolution of and distribution patterns. In the UK, own energy usage to save costs, as smart grids, addresses the issues that the Government has committed to well as access additional information utilities face in their quest to compete the rollout of smart meters for both and services. in an era when information itself is electricity and gas in all homes and most To realise all of these advantages, becoming a valuable utility, and shows small businesses by the end of 2020. smart grids require an agile yet secure the opportunities opening up for truly £8.6 billion will be spent replacing some IT infrastructure that can collect, secure embedded JAVA applications 47 million meters, which are expected to analyse, and deliver information where and solutions in the Complex Event deliver total benefits of £14.6 billion over it is needed, whenever it is needed, Processing (CEP) arena. the next 20 years.* whatever it is needed for. 4 * ‘Smarter Grids: The Opportunity’, The UK Department of Energy & Climate Change, December 2009 5
  • 5. Part I: The Evolution of Smart Grids Utilities across the globe all face the same challenge: how to support, maintain, and enhance infrastructures that, by their very nature, are large, expensive and, once installed, relatively inflexible. Added to this are environmental, regulatory, and consumer pressures that vary country by country, region by region, together with the need to contain costs, improve reliability, and maintain security. The answer across every utility has been What was smart just five years ago The new demands are, for the first time, to develop smart grids: infrastructures has become a standard part of utility giving utilities the chance to change the that help in the supply, metering, and infrastructures. Smart devices that were way they operate, with detailed usage billing of electricity by automating meter regarded as cutting edge are now seen information, real-time event reading and delivering information as old-fashioned. The need to conserve data, distributed generation, smart that can be used to improve business energy is changing the way electricity is switches and relays all bringing their decision-making. expected to be delivered and controlled. own challenges. Infrastructures that once had defined The issue, however, is that as So the first point to address in any end-points are now extending into metering technologies, IT systems, discussion about smart grids is how devices in the home. Additional uses legislation, and user demands they have evolved—and where they are being expected from—sometimes, have advanced and changed, the are now heading. demanded from—smart grids, with expectations of what smart grids can those expectations and demands deliver has also changed. varying market by market. 6 7
  • 6. It is estimated that The Infrastructure Era The Device Era a direct reduction of 6% in electricity consumption, with a range of 1% to In the past, the drivers behind utility The disadvantages of an Modern economies have now entered The advantages are many, such as 10%, can be achieved networks were straightforward. Electricity infrastructure-based approach are the device era, in which the focus is on utilities being able to bill more accurately, in the residential simply had to be delivered to homes that rather than being designed to smart meters, which communicate the near real-time data contributing to more and businesses. Cost and ease of deliver, process and analyse data, data they gather back to the utility, either precise forecasting of future usage, and small/medium implementation were the biggest factors, such networks simply collect data at wirelessly or using power lines, and can and live usage data encouraging users commercial building and the networks had to be scalable in thousands of fixed end-points. That data deliver processed information to users. to economise sectors through order to accommodate new users with has to be read and collated manually and implementation The drivers that have prompted the The disadvantages are that the relative ease. is fixed and unchangeable. It is difficult to device era are increasing regulatory easier collection of data is still seen by of smart grid add or enhance the data that is gathered, The advantages are similarly pressures like the EU 20-20-20 target, utilities as the main driver, rather than the technologies. or the way that it is gathered. straightforward, particularly when the potential supply issues prompting utilities analysis of it, and utilities remain largely ‘The Smart Grid: An Estimation of the Energy average time in the utility industry for to track consumption far more accurately, unaware of the wider potential of the and CO2 Benefits’, Pacific Northwest National Laboratory, January 2010 components to be replaced is 30-40 and utility companies trying to save on two-way connection into homes and years. Such networks are simple to the cost of collecting meter data. businesses and the consequent need maintain, with low tech components used for open standards. throughout that can be easily replaced should they wear out. The focus is on the infrastructure with each The focus is on devices with smart meters element siloed and separate from the others. installed in homes for remote meter reading. Generation Transmission Distribution Consumers Generation Transmission Distribution Consumers 8 9
  • 7. The Information Era Utility companies, OEM partners, Smart meters, for example, are Overall, smart grids in this 5. The deployment of smart 9. The development of standards for and integrators are now talking about becoming true smart meters that information era differ from smart technologies for metering, communication and interoperability smart grids in which information and can send and receive actionable grids of the past in ten key ways: communications concerning of appliances and equipment connectivity become a utility, multiple information to and from a variety of grid operations and status, and connected to the grid 1. The increased use of digital levels of functionality exist, and further other devices equipped with machine- distribution automation 10. The lowering of unreasonable or information and controls technology functionality can be added as the to-machine (M2M) communication in 6. The integration of smart appliances unnecessary barriers to adoption. need arises. a secure environment. 2. The optimisation of grid using embedded technologies operations and resources, The crucial point is that, just as utility In addition to the connectivity to the with full cyber security 7. The deployment and integration infrastructures deliver electricity smart meter, the move to distributed of advanced electricity storage Analysis of 350 smart 3. The deployment and integration of wherever it is required, so smart grids processing at the substation will also and peak-shaving technologies, distributed resources and generation, metering/demand should deliver information wherever bring about actionable analysis, relying including plug-in electric and hybrid it is needed, in whatever form it is on new applications that must be including renewable resources electric vehicles, and thermal- response initiatives in needed, whenever it is needed. And, developed—applications that are both 4. The incorporation of demand storage air conditioning more than 50 countries as importantly, the kind of information standards-based and secure. response, demand-side resources, 8. The provision to consumers of timely represented 500 they gather should change as the and energy efficient resources information and control options million smart meters environment changes. that could be deployed within the next decade. Smart Metering, Market Dynamics Report, Q2 2011 New sensors / distribution computing on transmission Smart Meters and Home Networks help and distribution lines alert operations, fix problems, customers use energy wisely, mitigate peak integrate large-scale renewables generation. demand, integrate local renewables. 10 Generation Transmission Distribution Consumers 11
  • 8. Summary Table The drivers that have encouraged The advantages of such smart grids Basic Utility Infrastructures Smart Grids interest in the new era of smart grids are: are that they can change and adapt as Users are uninformed and non-participative. Users are informed, involved, and active. required, providing to utilities masses „ An increasing need to save electricity Dominated by central supply, with many obstacles Many distributed energy resources with plug-and-play Utilities need to of usage data such as voltage, energy to the connection of distributed resources. convenience, and a focus on renewables. whenever possible choose technologies supplied, and time of usage (TOU), Limited wholesale markets, not well integrated, Mature, well-integrated wholesale markets, that are interoperable „ The emergence of M2M devices together with event data such as power with limited opportunities for users. and growth of new markets for users. in home appliances like washing outages, tampering alerts, and service so that the larger Focus on supply with a subsequent slow response Quality is a priority with a variety of quality/price options, machines and air conditioning diagnostics. This wealth of information grid can be built. to quality issues. and the rapid resolution of issues. systems that allow them to be turned allows applications and uses to be added ‘Smart metering – a review of experiences off by the utility provider at times of and removed as required. Little integration of operational data with asset Greatly expanded data acquisition and analysis capability, and potential across multiple geographies’, peak demand, the utility gaining by management, resulting in business-process silos. reaching beyond traditional parameters. Datamonitor, November 2009 having control over demand in peak The disadvantages are that they are A focus on protecting assets following faults. Automatic detection and response to problems, periods, the user gaining from off- more complicated to specify, configure, with a focus on prevention, minimising impact to users. peak tariffs implement, and maintain. The number of Vulnerable to malicious acts of terror and natural disasters. Resilient to attack and natural disasters with potential M2M devices and applications rapid restoration capabilities. „ Recognition that information can that could connect to smart grids, for become a tool to drive down costs, Uses traditional fuels and sources. Uses cleaner supply technologies and reduced CO2 emissions. example, is extremely wide and diverse provided it is accessible Limited information provided by single-use, proprietary devices. A wealth of information available from M2M devices that and there is a danger of information and actionable are re-programmable and re-purposable. overload or blockage. There are also „ The emergence of mobile phone and increasing concerns about the security of PC apps that allow users to control information held within smart grids. The evolution of Smart Grids their energy use remotely „ The adoption of wind turbines and Summary Electricity Time of use MicroGrid bills storage other devices in the electricity arena pricing balancing Smart meters turning users into generators as well Automated Home area meter reading Advanced networks as consumers. Real-time metering Demand pricing infrastructure Smart Advanced response appliances distribution Critical peak management Electric Distribution systems Distributed automation pricing generation vehicles 10 years ago Now Future: 10 years 12 13
  • 9. The Advantages of Businesses The Information Era Businesses can track energy usage to identify Systems Integrators potential savings, switch additional services on and off quickly and easily, and take advantage Systems Integrators can plan for any requirement of new services as soon as they are introduced, in a new or existing infrastructure, introduce new with middleware managing the complex task of services quickly and easily, and repurpose M2M collating information from a multitude of systems. devices as required, with open standards removing Consumers compatibility problems and speeding the process. Consumers can monitor their energy usage, save money by using high-demand appliances off-peak, sell energy back to the utility, plug in third party devices like health monitoring systems, and access a OEMs range of additional information services in the future. Distribution OEMs can design smart All through flexible and agile devices and applications that can change as the market changes. Network meters and other M2M Operators devices that are flexible, re-purposeable, and Distribution Network Operators secure, and that can be can track real-time usage integrated into future M2M permanently, allowing them devices, offering real long- to adapt the infrastructure to term value to utilities. suit local demands, identify potential weak spots and move from reactive management to proactive monitoring. Utilities Utilities can track usage in real time, even out peaks in demand, identify network issues immediately, bill customers accurately, and respond to changes in the 14 supply environment quickly and easily, with a flexible, 15 agile infrastructure that can adapt to new demands.
  • 10. Part II: The Cornerstones of Smart Grids The journey to the smart grid in the information era, while worthwhile for utilities, OEMs, and integrators, means that any smart grid deployment has to be based on four essential cornerstones, all of which are critical for success. Open and Agile In order for smart grids to be truly IT Infrastructures smart, therefore, the IT infrastructure underpinning them needs to be open With traditional infrastructures, the life and agile, providing a common platform expectancy of components is 30-40 for the many emerging components, years, during which what they can do technologies, and applications in and the information they deliver does different areas. not change. Planned correctly, the infrastructure can Smart grids are different because deliver a constant stream of data through the applications they need to access, a variety of devices and applications. collect, deliver, and return back to both the user and the utility have to be flexible, future-proof, and secure. 16 17
  • 11. If smart grids come to fruition, consumers will flock to: 62% In-home displays for real-time access to usage Key to the success of such an approach as asset utilisation and management, Distributed Intelligent Agents fast load flow analysis; system and cost data are integrated, scalable, proven, and work management, outage Distributed Intelligent Agents are performance monitoring, standards-based technologies that management, and GIS-based systems. adaptive, self-aware, self-healing, and simulation and prediction; 51% Smart will contribute to the flexibility of the semi-autonomous control systems condition-based maintenance; appliances Advanced Control Methods infrastructure at every stage: that respond rapidly at the local level to outage management; and The communication infrastructure unburden centralised control systems asset optimisation. 31% Mobile device Integrated Communications supporting today’s emerging smart portals and human operators. Several of With a fully integrated data grids consists of a wide spectrum of Decision Support communications architecture, smart technologies patched together. The these agents are often combined to In smart grids, complex and 18% Distributed grids can capture, distribute, process, required information is transmitted form a multi-agent system with peer- extensive system information energy and analyse large amounts of real-time from the sensor to the control systems, to-peer communication. needs to be rendered into resources data from sensing and measurement devices. This acquisition and transfer of processed by the control systems, and then transmitted to the controlling 40% of CO2 emissions formats quickly understood by system operators so that they 11% Plug-in hybrid electric data supports the grid’s ability to detect, devices. This is too limited to support come from power can understand the overall vehicles (PHEVs) analyse, and respond autonomously to the high-speed requirements and generation. By status of the grid at a glance and adverse trends and conditions. broad coverage needed by Advanced 2020, Europe has lend support to the self-healing 10% Electricity Control Methods, and does not aspect of the grid. storage The data and information made available provide the networked, open committed to Oracle Survey of 150 North American using integrated communications architecture format necessary for the cutting these New applications such as C-level utility executives, 2010 technologies additionally benefits other advanced pattern recognition, —Executives asked to select the top two processes and technologies, such continued enhancement and growth emissions by 20%, holographic video, geospatial advances they believe will take off fastest. of smart grids. producing 20% reporting, and dashboard In true smart grids, Distribution of energy from presentations can all improve automation (DA) technologies can be visualisation and thus increase renewable sources, used to monitor and operate devices the human operator’s installed throughout the distribution and increasing understanding and speed system, thereby optimising station energy efficiency of comprehension. loadings and reactive supply, by 20%. monitoring equipment health, identifying outages, and providing In smart grids, these multi-agent more rapid system restoration. systems are capable of reaching goals difficult to achieve by an individual system and can be used for ultra- 18 19
  • 12. Real-Time Information quality. On top of this, other data such The challenge for OEMs and as network outage notifications, tariff systems integrators is to develop The second and perhaps most important issue for utility companies is the fact updates, and firmware updates also solutions for utilities that offer: Utilities must support smart grids with the need to be transferred to and from smart that real-time information becomes a „ An open standards architecture additional processing power needed to: meters. And that’s before other M2M utility. And, like a utility, the sheer scale of that optimises future flexibility and applications are even considered. information flowing to, through, and from freedom of choice „ Continually assess power or feeding customer-owned a smart grid will be vast. Estimates from A pre-requirement of a truly smart grid „ M2M devices that similarly speak the delivery and available distributed generation into the The Electric Power Research Institute is therefore a resilient, scalable system same language and can interact with (EPRI) indicate a growth of 800% over capable of communicating with and feeder capacity grid through net metering each other faster and more easily what utilities experience today. processing all of the messages from a „ The ability to capture, store, analyse, „ Analyse sensor data to „ Size the network to optimise large mixed smart meter estate within a In traditional infrastructures, for example, distribute, and manage the large mitigate feeder problems available capacity and limit finite processing window. meter readings are taken at defined volumes of data involved in the before they occur line losses periods and customers are billed That data must then be turned into management of a smart grid based on those readings. With the something that is actionable and „ Prepare bills that reflect „ Provide near-real-time views „ Reliability, scalability, security, need for smart grids to deliver real-time usable across the business from flexibility, and manageability of and explain to customers of usage and costs that information, it is generally accepted forecasting to program development the IT systems the complex pricing models empower customers to make that usage and event data needs to be to asset management. It is here that acquired at 30-minute or even 15-minute the importance of platform integration „ High performance in real-time data that encourage them to shift the best usage decisions for intervals, and then processed, stored, transactions, transaction speed, and optional electricity use to off- their situation. and open architecture really comes into data volumes and made available. play. There are large financial benefits to peak hours efficiently leveraging available enterprise „ System resilience in terms of In order to handle the massive Even at the lower limit of 30 minutes, information with real-time smart grid automatic back-up and fail-over „ Manage rebates and incentive increase in data, it is critical that 48 separate items of usage data alone operational data through data sharing procedures architected in to processes for customers application architecture uses need to be parsed, verified, validated, between legacy systems. the system purchasing and installing building blocks that are open, and securely stored for every customer every day. If a large utility has 10 million There are also many advantages of using „ Robust data management systems energy-efficient equipment flexible, adaptable, and scalable. customer accounts, this would equate that are able to categorise data in embedded technologies which offer high to 480 million pieces of data. Per day. terms of its latency, priority, currency, performance and functionality yet low And this does not include additional accuracy, recoverability, and longevity. latency, and can be relied upon in the data channels that utilities now want to long-term for ongoing support. collect such as event alerts and power 20 21
  • 13. What smart grid components will see wide-scale utility adoption most quickly? The Capacity for Change meters are expected to collect, process, monitoring systems that can be installed 63% Smart metering A Focus on Security of smart meters or concentrators on The thinking behind smart grids, in and respond to. quickly and easily. Once again the smart 48% Demand The concern for many utilities when the grid. Instead a common security terms of what is possible and what grid is the highway that can be used by response and considering smart grids is to contain standard has to be adopted for every Inside the home, smart appliances like third party companies and M2M devices. critical peak smart meter and device at every can be delivered on a large scale, is washing machines and air conditioning costs and improve reliability. A pricing endpoint, with embedded security as changing all of the time. Hence, smart systems that modify their energy So far more will be expected from major issue that always lurks in the the rule, not the exception. meters and other M2M devices need to be designed so that they can adapt to consumption during times of peak demand are already being developed. the smart meters and smart devices of tomorrow than today. OEMs and 38% Smart background, however, is the security of the grid itself. Similarly, once data is processed and distribution and/ the shifting environment around them. Fridges will follow, and domestic integrators need to be thinking about or transmission analysed within the utility, customer and Every day, every utility has to defend heating boilers, and audio visual it now, however, because embedded operation employee access to information needs to Plug-in hybrid electric vehicles (PHEVs), itself from countless cyber attacks, equipment and… think of a device that technologies will be key in extending the devices be streamlined with automated access for example, may also be seen by the intrusions, and hackers who want to consumes energy and the likelihood is lifespan of infrastructures for utilities and and identity management, and next- network as a battery source that can, at times of peak demand, be used that M2M technologies will emerge to the commercial opportunities that 30% Integration of destabilise the distribution grid. With new devices in smart grids providing generation consumer energy portals. even out demand. will arise. renewables to help supply electricity rather than more data, utilities are being exposed Issues like this require OEMs and (hydro power consume it. So smart meters have to The driver for consumers will be to more security challenges than ever integrators to use a platform for the and wind energy) be able to accommodate this change lower tariffs when demand falls, once before. And this is only the beginning. smart meters and any other M2M by, for instance, running backwards again requiring those smart meters to 26% Increase in Future developments of smart grids devices that is utterly secure in order when electricity is being supplied, or by be adapted. smart sensors will see them extend into areas inside to reassure users, yet agile enough to reducing supply if such battery-stored on the network homes and businesses, where the grids reduce the time and cost of compliance power is fed directly into the house. In order for a UK become highways for other services. by rapidly adjusting to new regulations smart grid to work, 21% Accommodation These services will, by their very nature, and mandates. Once price and legislation allows, many of plug-in carry sensitive data that has to be more consumers will invest in wind the smart meter hybrid electric protected at every point in the grid. In order to guarantee commercial turbines and become power generators system alone will vehicles (PHEVs) success in the information era, therefore, as well as power users, selling electricity It is not enough for each smart meter the focus needs to be on inherent and back to the grid and changing the way need to process Oracle Survey of 150 North American C-level and M2M device to promise its own integrated security throughout smart utility executives, 2010—Executives asked to power grids are controlled. a minimum of select up to three smart grid components. security protocols, independently grid infrastructures using proven, The increasing use of batteries for 2,256,000,000 separate developed and tested. Nor is it sufficient established technologies with an existing for M2M devices to trust in the security support ecosystem. storage will additionally localise supply data items per day. as well as demand, placing yet more demands on the information that smart Healthcare too is in the spotlight, with smart grids acting as the backbone for 22 23
  • 14. Part III: The Essentials of Smart Grids Smart grids, by their very nature, have complex infrastructures comprised of many components, lots of which are concerned with carrying electricity to consumers safely and with minimum loss. The key concern for OEMs and systems integrators developing solutions for gathering and analysing data, and transforming that data into valuable information, is to ensure that those solutions integrate seamlessly with the smart grid. Gathering data Not every appliance in the home has will play a growing interactive role in the potential to be ‘smart’, however. energy-efficient homes in smart grids, In every smart grid, it is the last mile in Component costs and market price by communicating with and controlling a particular where there is the opportunity points dictate that smaller devices with range of smart appliances and devices. for OEMs and systems integrators to no user interface and a limited response develop new technologies and products Smart Meters requirement are unsuitable from a cost that can help utilities gather more data. Smart meters are the real hub of as well as complexity perspective. Smart Appliances information in smart grids. Instead A lot has been written about how usage Smart Apps of being relatively dumb devices that data from smart appliances like washing At the next level up, a widening range monitor and report energy usage and machines, freezers and air conditioning of applications on tablet PCs, smart little else, modern smart meters gather systems can be gathered and used to phones and other devices are gathering more information, more frequently. have a real and lasting impact by moving information and showing users energy Giving utilities the ability to access usage and energy consumption to off- usage in real time, whenever and many different channels of usage and peak periods. wherever they want it. With increasing event data—and enhance and expand regulation and mandates for energy- that data as the environment and efficient white goods, smart apps needs change. 24 25
  • 15. What are your biggest smart grid priorities for the next 10 years? 45% Improving service reliability and Analysing Data of collecting. Added to this is the generation tool to closely emulate operational complexity of converting raw data into production scenarios and realistic Just as important as the last mile of efficiency usable business intelligence. distribution of the data. 80% of the smart grids is the first mile—at the headquarters or data centre of the utility Take usage data. It needs to be accounts created were for residential 41% Implementing customers, 18% for commercial smart metering itself. Rather than gathering data, it is mediated (converting measured customers, and 2% for industrial here that the same data is aggregated, consumption into rateable units of customers. In addition to the financial 37% Developing analysed, processed, and turned into measure); rated (applying complex demand response history data, one year of historical information before being passed on to rate and discount structures to the and energy meter readings was also created. the various departments that need it. mediated usage); billed (assembling the efficiency rated information into discreet financial The result programs The cost of The biggest issue with smart grids is the transactions for interface to the general Given the huge demands placed generating a sheer volume of usage and event data ledger); and invoiced (assembling the upon a relatively modest server 23% Updating physical kilowatt-hour of that smart grids are capable billable information for presentation to configuration, the result was infrastructures electricity is 70 to surprising. Running on just two the customer). Sunfire X4470 servers on the 17% Offering real- 170 times the cost Suddenly, what was an initiative that time pricing of saving a KWH application tier and a quarter options can help utilities work smarter becomes rack Exadata v2-2 server on the through efficiency. one that could make their work even more complex. database tier, the benchmark 15% Increasing your ‘Real. Smart. Solutions’, demonstrated that Oracle Utilities renewable GE Digital Energy, 2010 Providing a benchmark Customer Care and Billing v2.3.1 portfolio In order to demonstrate that a complex is able to process bills at a rate billing scenario can be handled with a of 993,240 bills/hour. While the 14% Optimising measured throughput is reaching existing business solution that meets market windows extreme performance, the Exadata processes and regulatory requirements, with low total cost of ownership and a high 2-node utilisation was less than Oracle Survey of 150 North American C-level utility executives, 2010—Executives return on investment, Oracle tested 55%, leaving ample room to grow or asked to select their top two priorities. its Utilities Customer Care Billing host other applications in the same 2.3.1 software on an Oracle Exadata database server. Database Machine X2-2. 12 months of historical financial data for one million customer accounts was created using an internal data 26 27 © Idaho National Laboratory/Flikr
  • 16. Turning Raw Data into The Intelligent Choice Outage Management and Distribution Oracle Utilities Meter Data Management Real Information The first foundation for many Management capabilities) and world- can serve as the foundation for a smart organisations seeking to exploit class Oracle Fusion Middleware to metering initiative, integrating with There are many reasons for choosing information and intelligence is Oracle. handle complex event processing, multiple advanced metering solutions technologies to support a smart grid. Oracle offers mission-critical software batch operations, the streamlining and acting as a central data repository. But for OEMs, systems integrators, applications, a proven operational of business processes, alignment of It provides validated, ‘clean’ data for telcos, and other parties involved in software suite, high-performance business applications, exponential data downstream systems such as billing, the planning, design, configuration, servers and storage, and world-leading growth, and visualisation for embedded customer care, network management and implementation of smart grids for middleware and embedded technology spatial capabilities. and more, feeding processed and utilities, several questions remain. that can help address every smart grid formatted data to the Oracle Utilities Oracle’s smart metering software, What technology should be trusted and smart meter challenge. applications that support smart metering. similarly, is a solution set that offers new in the development of smart meters As importantly, Oracle provides end- ways to conserve energy, potentially and other M2M devices? Will the to-end solutions with the world’s most reducing bills and carbon footprints. choice of a particular technology over complete set of software choices that another end up restricting choices help utilities address emerging customer in the future? Is there a technology needs, speed the delivery of utility- As well as understanding the that can be integrated with existing Oracle utility industry solutions complexity around smart grid specific services, increase corporate technologies to enhance smart administration efficiency, and turn initiatives and implementations, grids? Does the technology use the Common Information Model (CIM), now business data into business intelligence. Application for utilities Oracle provides a complete footprint recognised as the data standard for Oracle’s smart grid software, for of flexible, innovative technology and smart grids? How can that technology example, is a solution set that is based Middleware for utilities applications that increase efficiency, be employed to gather masses of usage on the Common Information Model and improve stakeholder satisfaction, Database for utilities and event data—and then turn that data uniquely positioned to provide utilities future-proof organisations, and turn into actionable, usable information? with the end-to-end applications to help information itself into a powerful Operating system for utilities solve their technology needs. utility. Making Oracle the smart grid Virtual machine for utilities The role of operational applications choice for utilities everywhere. starts with the distribution management Servers for utilities features of Oracle Utilities Network Storage for utilities Management System (which includes 28 29