IEEE Smart Grid Interview with Ron Chebra | Bridging the Internet of Things and Grid of Things for Effective Optimization

Aug 2, 2019 | Article

IEEE Smart Grid Interview with Ron Chebra
Bridging the Internet of Things and Grid of Things for Effective Optimization

By: Ron Chebra, VP of Grid Modernization
rchebra@enernex.com
865-218-4600 x8108

 

Ron Chebra, EnerNex Vice President of Grid Modernization, is a recognized thought leader and industry expert in utility modernization. He has deep operating knowledge in technology solutions in areas such as MicroGrids, Renewable Energy Integration, Smart Grid, Distribution Automation (DA), Advanced Metering Infrastructure (AMI) and Demand Response. He provides strategic consulting services to leading energy organizations and to industry suppliers of products and services in the following areas: MicroGrids, demand response, battery energy storage solutions and “Behind the Meter” technologies. He is frequent contributor to leading industry journals and for the past 2 years, he has been the Chairman of the Smart Cities/Iot Track for Distributech. Ron has over 35 years of experience, including previous positions with Verizon Enterprise Solutions, Schneider Electric and DNV GL.

In this interview, the Ron answers questions from his webinar, Bridging the Internet of Things and Grid of Things for Effective Optimization, originally presented on June 6, 2019. For more details regarding these questions, please view his webinar on-demand on the IEEE SG Resource Center.

Are there opportunities for utilities to generate revenue from leveraging any existing communications infrastructure?

Each case may need to be examined from the perspective of how the infrastructure was paid for. For utilities that are regulated and where the asset was paid for by rate recovery mechanisms this may be more difficult to leverage. In areas where this is not an issue then appropriate methods must be undertaken to properly quantify the value. For instance, there is a precedent where fees were charged for pole attachments for telecommunications and cable services. Certainly, as we see the growth of small cells in a 5G Wireless environment, there is a possibility of leveraging not only the pole space but some of the services that can be transported over this infrastructure.

How would the grid and customer systems be balanced? And who would have control? What is best for the utility is not always best for the customer? Who would ensure the customer needs are serviced fairly?

There is a level of reliability and service capability that must be provided by the utility. Safety is paramount, if turning off a customer’s asset is required to ensure the well-being of a lineman than there should be no question about priority. Other less definitive cases, such as trimming back individual customer PV production to ensure the integrity of the feeder has implications both for the utility and their requirements (e.g. overvoltage) and the customer (reduced local production). Many of these conditions are covered in the interconnection agreements; however, this is an issue that many public service commissions are examining to ensure fair treatment of all parties.

IOT wasn’t designed with cybersecurity in mind. Are there other options other than IOT that can be used, in your opinion?

There has been a lot of interest in cyber security measures with regard to IoT. Last year, in September of 2018, California enacted CA SB 327, It covers a broad cybersecurity governance over IoT devices. This law mandates that any maker of an Internet-connected, or “smart,” device ensure the gadget has “reasonable” security features that “protect the device and any information contained therein from unauthorized access, destruction, use, modification, or disclosure.” A manufacturer of a connected device shall equip the device with a reasonable security feature or features that cover all of the following:

  • Appropriate to the nature and function of the device.
  • Appropriate to the information it may collect, contain, or transmit.
  • Designed to protect the device and any information contained therein from unauthorized access, destruction, use, modification, or disclosure.
  • Subject to all of the requirements of subdivision (a), if a connected device is equipped with a means for authentication outside a local area network, it shall be deemed a reasonable security feature under subdivision (a) if either of the following requirements are met:
    • The preprogrammed password is unique to each device manufactured.
    • The device contains a security feature that requires a user to generate a new means of authentication before access is granted to the device for the first time.

In March of this year senator Mark Warner, (D-VA) introduced Senate Bill S.734 that covers a physical object that is:

  • Capable of connecting to and is in regular connection with the Internet
  • Has computing processing capability that can collect, send or receive data, and
  • Is not a general-purpose computer device, including a PC, smart mobile device, PLC or mainframe
  • NIST is to be responsible to ensure managing IoT cyber security risks, especially regarding capabilities of IoT devices, and that
  • NIST publishes guidance on policies and procedures for reporting, coordinating, publishing and receiving information about
    • Device vulnerability and resolution
    • Alignment with ISO Standards 29147 and 30111

What are the key connective security concerns for IoT and GoT?

Ensuring the protective measures that provide assurance of information in place both for data in transit and data at rest. Encryption of sensitive information is essential, safeguarding that only authorized and authenticated access is granted to trusted entities. While “air gapping” applications may have worked in the past, the need for a greater level of access across the enterprise is growing in magnitude. Maintaining a clear delineation of systems of record and control is essential to maintain a level of cyber assurance.

Often, because of the levels of access that may be required ranging from central operations to field crews, maintaining a set of strong passwords that is uniformly managed and administered is required.

What will be the predominant communication standard in the Grid of Things? Will it be wired or wireless?

With the proliferation of digital cellular services and the reliance that many industries have placed on this infrastructure, one would lean toward wireless as the predominant standard; however, there is still a strong play for wired services when and where these can reasonably be deployed.

With much lower powered sensors and wireless modems, packages that contain both of these that often can be provisioned with small solar cells and battery backup, there is a new ability to place more things in the field.

What is the importance of cyber physical systems in grid of things perspective?

Cyber physical protection will always remain an important factor; given the fact that in more cases the deployment of IoT will be in remote and unmanned locations, limiting access to these assets will continue to be a need and a challenge.

What do you think is the future of linking home applications to utility needs, e.g. being able to optimize energy usage based on a time of day tariff?

A few years ago, under the American Recovery and Reinvestment Act of 2009, a number of pilots were conducted wherein smart communicating thermostats were given to customers who participated in demand response programs. In addition to these customer, there were a number of customers who were given in home display units that showed the user their real time energy consumption. Customers participating in demand-side management programs piloted at 10 utilities that participated in Consumer Behavior Studies reduced their peak demand by up to 23.5 percent, with annual savings for customers ranging from $5 to more than $500, depending on the type of rates offered. https://www.smartgrid.gov/files/Final_SGIG_Report_20161220.pdf

Does IOT need to fundamentally change the present structure of the power grid? Will this be practical in relation to the costs involved?

IoT will more than likely significantly change the interaction of the customer and the grid. Transforming a customer from simply a recipient of energy delivery to a responsible interactive role as a prosumer will be enabled by smart devices, connectivity to the larger environment, and a growing level of more intelligence. Today a majority of users are computer savvy, own smart phones and find a great comfort setting up conditions that suit their lifestyle. Being able to set up rules that are based on comfort, economics and convenience is how the grid will transform.

As far as costs, we are at the verge of sophisticated maturity with more options that are driving costs down. The grid is also transforming, using smarter devices at the edge, increasing machine intelligence, and greater levels of management and control.

Smart Metering (SM) and Advanced Metering Infrastructure (AMI)

Smart Metering and AMI is a transformational process addressing multiple business and technical needs of the utility enterprise. This is more than just smart meters and communications networks; it includes all of the back end applications that can leverage the meter assets, such as outage notification, demand response, call center optimization, disputed billing process handling, pre-payment opportunities, and service connection management methods and procedures, to name a few.

Implementing SM and AMI faces the same business, engineering, and operational challenges as any other across-the-utility information technology endeavors – most notably risk associated with embracing proprietary technology, missing functionality and early obsolescence. Effective SM and AMI development, implementation, and operation relies on a marriage of electric power engineering with information technology expertise: a key component of EnerNex’s expertise and experience.

EnerNex provides an array of engineering and consulting services geared towards intelligent and effective implementation of SM and AMI. This covers all phases of project development, starting with capturing system requirements where our experts leverage a “Use Case” centric view of activities needed to be accomplished and their interaction with systems and other users. Subsequent project steps typically examine other critical areas, such as: modeling of business cases, building inter-department consensus, assembling and assessing system functional requirements and non-functional requirements, developing a system design, hardware and software specifications and standards, complete procurement services including RFI and RFQ process support, supplier rating system, response evaluation methodology, deployment management, and training of office and field personnel.

Demand Response (DR)

Demand response can be as simple as load interruption directed by the energy supplier in response to severe demand requirements, to complex customer defined load management in response to price signals. DR is one of the components of a “Non-Wires Alternative” that many utilities are effectively using to avoid expensive distribution fortification or upgrade.

 

Often the success and/or failure of demand response programs can be linked to program implementation challenges such as rate/tariff design rate structures communication (e.g. price signals) or ineffective incentives used by utilities to encourage customers to accept operational change. The issues of program design, rate structure and customer impact have a tremendous influence on the success or failure of load management initiatives. Demand response has traditionally been used as a tool of the energy industry to ensure system stability. However, the introduction of microelectronics, communications, home automation and the Internet of Things (IoT) has led to the development of cost effective solutions that have the capability to allow the consumer to take control of managing their energy load and ultimately, the price they pay for energy.

EnerNex has the experience and skills to turn your DR program into a successful operational asset and customer engagement process that can deliver value to all parties.

Energy Assurance Planning

Natural and man-made disasters cause an estimated $57B in average annual costs for all parties; large single events have resulted in losses of $100B or more. Events, such as the World Trade Center disaster, Hurricane Katrina, and most recently Hurricane Helene, have demonstrated an acute need to revisit, revise and implement an effective energy assurance plan. Energy assurance plans assess the functionality and interdependencies of buildings and infrastructure systems and the role they play in sustaining service and rapidly restoring critical services to a community following a hazard event.

 

EnerNex assists our clients in developing comprehensive energy assurance plans that mitigate and minimize the impact of energy disruptions. Our experts assess critical infrastructure risks and evaluate appropriate mitigation strategies and can help in developing an effective business continuity/disaster recovery (BC/DR) plan for utilities and your customers.

Microgrid Development

As the electric grid becomes more distributed and interactive, microgrids are playing an increasingly important role in our energy future. Decision makers at military bases, corporate and institutional campuses, residential communities and critical facilities across the world are exploring and implementing microgrids to meet economic, resiliency and environmental goals. Utility-grade microgrids are being deployed to meet transmission constraints, reliability requirements and safe-havens in the event of a significant storm event.

Microgrid_development Graphic steps to support grid modernization

Bringing together a portfolio of distributed energy resources into a controllable, islandable microgrid comes with its own set of challenges. The key to solving these challenges is in architecting a system to support information exchanges between components across well-defined points of interoperability (interfaces) in a technology independent manner. This interoperability ensures that the system is resilient to technology change. Modern systems engineering techniques must be employed to ensure that individual sub‐systems are clearly identified, their functions enumerated, their data requirements known, and the points of interoperability clearly specified, along with the commensurate monitoring, command and control that is needed to ensure grid stability. With such architecture, we can apply best of breed technology available today to support those information exchanges at interface boundaries but be free to upgrade / change the implementation technology later without causing a ripple effect throughout the system.

Enterprise Architecture

Enterprise Architecture focuses on aligning an organization’s business strategies with its anticipated, desired and planned technology enhancements. Enterprise Architecture provides a framework to cost-effectively transition from a current “as-is” technology to future enterprise-wide technological solutions. An effective Enterprise Architecture program aligns business investments with long-term business strategies while minimizing risk and providing superior technological solutions. EnerNex’s key asset is its highly skilled and experienced staff who are closely connected to both the smart grid and EA standards and practices. We provide clients with the insight necessary to operate a fully functioning smart grid, which is flexible, scalable, and vendor independent.

Grid Modernization Roadmap

Utility companies across the globe are continually modernizing their grid. Each company often has different rationales, objectives and priorities. Frequently, smart grid plans are developed for individual, incremental initiatives, rather than as a part of a whole, intelligent and interoperable infrastructure. Planning may be developed around technology choices rather than business and technical requirements. The result of incremental and flawed planning leads to increased cost and risk, lost opportunities, disconnected expectations and dead ends.

 

EnerNex’s approach to grid modernization roadmap development follows a proven, industry-standard approach to grid modernization planning by collaboratively working with the utility to develop a set of prioritized and time-phased grid modernization initiatives unique to its business strategy and objectives. The roadmap developed is holistic, requirements-based, business value driven and actionable. It often builds on and leverages existing applications and infrastructure, and incorporates industry standards to ensure interoperability, flexibility and reduced cost and risk.

Utility Communications

Utility communication and control systems are increasingly interconnected to each other and to public networks and as a result, they are becoming increasingly more susceptible to disruptions and cyber attacks. EnerNex has experience with the various issues relating to development, implementation and optimization including feasibility analysis, design, software development and customization, project management and acceptance. Our expertise extends from being involved in the development of the fundamental standards that support utility communication and automation, through deployment and securing of those resources. EnerNex personnel were heavily involved in development of such standards and protocols as IEC 61850, IEC 60870-5 and DNp3. Our staff played a key role in the EPRI Utility Communication Architecture (UCA) project and the IntelliGrid Architecture effort.

Related Articles

Related

Grid Modernization & Grid Architecture

Helping our clients implement and integrate grid modernization technologies and processes that are aligned with tomorrow’s utility. A Grid Modernization program frequently includes many complex utility engineering and operational topics, many times the scope of these...

read more

Grid Modernization with Artificial Intelligence

_______________________________________________________________________________________________________________________ Introduction The electric power industry is undergoing a transformative era, driven by digitalization, renewable energy integration, and increasing...

read more
X