How to increase the IQ of the world’s energy distribution systems.
Cisco played a critical role in revolutionizing the Internet and the digitalization of voice communications.
According to its current leadership, the next «grid revolution» could occur in the global energy distribution system.
At the same time, Cisco believes that a comprehensive strategy called Cisco® Smart Grid will help utilities and their customers more effectively manage the delivery and consumption of electricity, as well as reduce the harmful impact of the energy industry on the environment.
This is discussed in the article by Cisco Vice President of Network Systems and Security Marie Hattar.
Cisco’s Smart Grid strategy envisions the creation of a two-way, end-to-end communications infrastructure for electrical distribution networks.
This IP-based infrastructure will operate throughout energy systems from the power plant to the wholesaler, home or commercial customer. Today, all communications in energy networks are usually one-way in nature and provide a very limited understanding of energy consumption.
For example, checking meters in residential buildings is carried out at best once a month, or even once a year, i.e. this system does not work in real time. Communication in it is not two-way, limited to one-way transfer of historical data without feedback, error analysis and continuous improvement of efficiency. The new communications infrastructure will allow for reliable two-way communication with intelligent functions and integrated management of energy supply and demand. As a result, utilities will be able to better plan their operations, improve energy reliability and reduce operating costs.
If Thomas Edison came back from the dead, he would find almost no changes in the energy system. In recent decades, few people have invested in modernizing it, and therefore our energy system is outdated and inefficient. Moreover, it aims to meet peak demand. As a result, huge generation and distribution capacities remain idle most of the time, further reducing the overall efficiency of the system.
Meanwhile, demand for electricity is growing faster than supply, utilities pay high taxes, and energy systems periodically fail, costing the United States $50 billion in annual losses. However, the situation is getting worse and worse as consumers use increasingly energy-intensive household devices. Just imagine what will happen when we start using electric cars and plugging them in to recharge at about the same time every evening!..
Another problem is that there is nowhere to store large amounts of generated energy, and if the electricity is not used, it is simply lost. At the same time, during the production of electricity, the environment is polluted and hydrocarbons are released into the atmosphere. This is why we are so interested in electric vehicles: their batteries can be used to temporarily store energy and transfer that energy to distribution networks during peak hours. In addition, electric vehicle batteries can be adapted to store electricity coming from renewable sources (wind generators, solar panels, etc.).
In this case, the accumulated energy can be consumed when there is no wind, the sun is obscured by clouds, and the demand for electricity remains high. In other words, an electric car could become the first industrial energy storage device in history to reduce hydrocarbon emissions into the atmosphere.
These functions should also be regulated through a communication mechanism and a comprehensive Smart Grid infrastructure management system. The intelligent functions of Smart Grid will give our energy system a “second wind”.
They will help utilities optimize the use of existing resources without overinvesting in the construction of additional generation and distribution capacity. The entire increase will be achieved through more competent management and optimal energy distribution.
Another problem with existing energy systems is the inability to integrate large amounts of energy from renewable sources (wind, solar, etc.). These sources provide energy when the sun is shining and the wind is blowing, which does not always coincide with peak load times.
To increase the role of renewable sources, it is necessary to organize a two-way flow of electricity, which requires communication technologies and communication between transformers, as well as intelligent functions. All this can be provided by Smart Grid.
Smart Grid includes home energy management systems, smart meters and sensors installed in residential buildings. As you know, knowledge is power. Accurate information about home energy consumption helps people reduce energy costs by 15 percent without compromising their convenience.
Home energy management systems will automatically manage the energy consumption of major household devices in the background according to the rules set by their owner. This way, you can automatically turn on your washing machine, dishwasher or pump during hours when energy costs are lowest. In this case, you will be able to choose your own energy source (conventional power plant, solar battery, wind generator, etc.).
As for utilities, Smart Grid will help them reduce the number of failures and outages and reduce peak electricity demand through better management. Utilities will be able to better monitor repairs and maintenance of their equipment and proactively identify potential bottlenecks in their systems. This will make it possible to carry out preventive work and thereby prevent accidents, and if an accident does occur, immediately determine its source and “treat” the power system remotely. As a result, the efficiency of energy transmission will sharply increase and energy losses will be reduced. In addition, utilities will improve energy supply reliability. If a segment of the power grid fails, they will be able to quickly use other energy sources and transmission channels using the new communication mechanism. Currently, grid stability is achieved through flexible but expensive redundant power plants. Smart Grid technology regulates demand in such a way as to eliminate the need for redundant stations, which dramatically reduces the costs and investments required to create reserve capacity.
Smart Grid technology promises benefits for many. For example, the active use of renewable energy sources will significantly reduce dependence on imported oil and gas and thereby increase the economic security of countries that do not have sufficient primary energy resources. In any case, when energy losses are reduced or energy consumption is reduced, less carbon dioxide enters the atmosphere, and this is good for business and for all inhabitants of our planet.
Cisco Smart Grid is a combination of products, technologies, services and ecosystem partners. Our goal is the widest possible participation in the construction of this infrastructure. We are ready to provide highly secure routers and switches tailored to utilities, data center systems and technologies such as Cisco EnergyWise that will help companies manage the energy consumption of their network devices.
Our products and services operate in critical areas of energy infrastructure. One of them is automation of energy transmission and distribution, another is communication with smart meters, and the third is managing the energy supply of residential buildings and commercial enterprises. In addition, we are ready to build powerful data centers where utilities will process information coming from Smart Grid sensors. These are the areas where we intend to actively work. Each of them is responsible for one or another department or group. Together they will build a unified Smart Grid communication infrastructure at all levels — city, national and regional.
Cisco cooperates with the governments of several countries and the world’s leading energy companies. In addition, we are exploring partnerships in the energy space with system integrators, smart meter providers, energy system integrators, automation providers and other market participants.
We participated in the construction of the Internet. Today, a new stage in the construction of large networks begins in the energy field. The effect of deploying Smart Grid infrastructure will be 10 or even 100 times greater than that of the Internet: every home and every company has electricity, so in principle, any home or corporate device can connect to the new network. In the future, a refrigerator, a washing machine, and any other device can become “smart” elements or nodes in the Smart Grid infrastructure. This process can be considered a fundamentally new stage in the development of the Internet, in which connections will be established not between people, but between machines. At the same time, many intelligent nodes and sensors will operate in the network. This will require a highly reliable, standards-based communications infrastructure that ensures compatibility and interoperability among all connected devices. We at Cisco have done a lot to make IP a common standard, efforts that have had to be repeated again and again, and we believe that we are better than anyone else at achieving the same challenge in the utility environment.
Over the past 20 years, many critical infrastructures in finance, communications, defense and security have migrated to the IP standard. However, the Smart Grid IP network is not just about opening up energy networks to the Internet. Smart Grid is not an open platform, but a communications fabric that, in our opinion, should be woven according to IP standards. At the same time, Smart Grid will use best practices in the field of protecting critical infrastructures. To do this, all business functions will be segmented, and, depending on the segment, certain security measures will be applied to them (authentication, authorization, integrity control, confidentiality and threat prevention).
Projects of this scale inevitably face challenges. For example, power systems operate differently in different countries, so products and services for North American power systems in Europe will not be suitable. It is also difficult to agree on common standards, because sensors and meters are made by many different companies. However, standards are needed — otherwise it will be impossible to connect these devices to the general network. This situation is reminiscent of the early stages of the development of cellular communications, when there were many different standards and devices on the market that needed to be brought to a common denominator.
The Obama administration considers the construction of Smart Grid energy infrastructure a priority for the United States. The US Congress has allocated $30 billion for these purposes and other initiatives aimed at modernizing national energy systems. However, Cisco Smart Grid is a global initiative. We estimate that by 2013 a market with an annual turnover of $20 billion will be created in this area. That’s why Cisco has made the Smart Grid program a top corporate priority for 2009 and beyond.