How IoT Affects Smart Grid Emerging Technology Strategy

Raiford Smith

Duke Energy Director, Smart Grid Emerging Technology

5/2/2014 Duke Energy – Confidential and Proprietary Information page 1

About Duke Energy • Largest electric holding company in the

United States

• Electric utility operations in North and South Carolina, Indiana, Ohio, Kentucky and Florida serving 7.1 million customers

• Over 58,000 MW of regulated generation

• 8,000 MW of commercial generation capacity including over 1500 MW of wind and 50 MW of solar located throughout the United States

• Duke Energy International principally operates and manages almost 4,300 MW of owned capacity (primarily in Latin America)

Emerging Technology Roles and Responsibilities

• Emerging Technology is responsible for: – Technology development and testing

– New technology strategy, roadmap, risk and opportunity identification

– Lab/field testing of new technology

– Establish business value and formulation of initial business case development

Emerging Technology

“Develop”

Grid Modernization

“Deploy”

Transmission

Distribution

Information Technology

“Operate”

5/2/2014 Duke Energy – Confidential and Proprietary Information page 3

The Electric Utility Industry In a Nutshell

Supply Demand Pipe

The purpose of the network is to efficiently enable whatever

transaction is desired between the customer and the supplier.

Generation / DER Transmission

Distribution

Customer

5/2/2014 Duke Energy – Confidential and Proprietary Information page 4

METCALFE’S LAW: The value of a network is directly

proportional to the square of the number of compatible

communicating devices.

A Smart Grid Consists of Operational Technology, Information Technology, and Telecommunications

Telecommunications (wired and wireless)

Electric Grid (Operational Technology)

Software (Information Technology)

Supply Demand Network

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

telecommunications 5/2/2014 Duke Energy – Confidential and Proprietary Information page 5

A Similar Convergence Has Already Occurred to Enable Smart Phones

Handset

Operational Technology

The same three technology categories have converged to enable

smart phones

Telecommunications

(wired and wireless)

Software

Information Technology

5/2/2014 Duke Energy – Confidential and Proprietary Information page 6

Remembe

r these

devices?

O

Supports 3rd party eco-system of applications

On-board memory and processing

Communicates with other 3rd party devices

Combines multiple functions into one

device

Many devices were rendered obsolete by the smart phone – a single platform that consolidated many devices into one physical, logical, and

telecommunications hub.

Many Capabilities Have Been Integrated Into A Single Smart Phone

5/2/2014 Duke Energy – Confidential and Proprietary Information page 7

Function Integration, Cost Reductions, and Performance Enhancements Are Enabled Through Standards and Inter-Operability

Top Handset Manufacturers - 10 years ago Top Handset Manufacturers -

today Handset Manufacturer Software / OS

proprietary

proprietary

proprietary

proprietary

proprietary

Handset Manufacturer Software / OS

This evolution was enabled by standards-based designs and easy inter-operability. 5/2/2014 Duke Energy – Confidential and Proprietary Information page 8

The Electric Grid of Today is Similar to the Historic Telecommunications Infrastructure (pre-smart phone)

Su

bs

tati

on

• Solar PV

• Energy Storage

• Dist. Mgmt System

• PMU (6)

• Weather stations (7)

Sh

err

ill’s

Ford

,

Ran

kin

, M

cA

lpin

e

Su

bsta

tio

ns

Cu

sto

me

r

Pre

mis

e

~60

ho

me

s s

erv

ed

by

McA

lpin

e c

ircu

its

• Solar PV

• Home Energy Manager

• PEV

• Charging Stations

• Smart Appliances

• Demand Response

• In-home load monitoring

Dis

trib

uti

on

Cir

cu

it

6

McA

lpin

e

circu

its

• Line Sensors (200+)

• Solar PV

• CES, HES Energy

Storage

• Comm. Nodes (3,000)

• Intelligent Switches

• DERMS/DMS

• AMI metering (14,000)

5/2/2014 Duke Energy – Confidential and Proprietary Information page 9

Standards-Based

Comm Node

Internet

UTILITY CENTRAL

OFFICE

• ARM processor + Memory

• Linux-based OS • Open API

Messaging • 3rd Party Apps • Security /

Network Mgr

A Standards-Based, Modular Communications Node Enables Significant Benefits for Utilities and Their Customers

3G/4G, WiFi, GPS

Ethernet / Serial

PLC / 900 MHz ISM

Required Comms.

Optional Comms.

Computing

Capabilities

5/2/2014 Duke Energy – Confidential and Proprietary Information page 10

Smart Meter

Capacitor Bank

Line

Sensor

X Street Light

Smart

Assets

Distributed

Energy

Resources

Transformer

Intelligent

Switch

DE

MA

ND

E

LE

CT

RIC

GR

ID

Smart Generation

Continuous

Emission

Monitoring

Weather Sensor SU

PP

LY

Other Nodes

One common platform that

can connect to generation,

transmission, distribution,

and customer-owned

assets using a standards-

based, modular design can

unlock a wide variety of

capabilities.

The Communications Node as a Computing Platform

1 Node Deep Blue

(1997) Super Computer

McAlpine Test Area

Ohio Deployment

Watson (2011) Super

Computer

System-Wide

Units 1 N/A 3k 150k N/A 2.2MM

MIPS 750 3MM 2.3MM 113MM 100MM 1.7Bn

Memory 256 MB 64GB 768 GB 38.4 TB 16TB 563 TB

The processing and memory capabilities of our smart grid compared to two notable super computers. This demonstrates the considerable capabilities of a distributed intelligence system

to solve complex optimization problems.

5/2/2014 Duke Energy – Confidential and Proprietary Information page 11

Interoperability and Rapid Response with Distributed Telemetry

Traditional Design – Centralized Decision-Making Future State – Distributed Decision-Making

Complements Centralized Systems

Meter Line Sensor

Cellular Network

Utility Office

Battery Storage

Rapid Swing in

Production

Meter Line Sensor

Communication Node

Cellular Network

Utility Office

Battery Storage

Rapid Swing in

Production

Update

Model

Response

Decision +

Update

Model

Response

Decision

Centralized Response > 15 min Distributed Response < 500 msec

Transformer Transformer

Line Sensor

Head End Line Sensor

Head End

Using a communications node, we are able to make decisions faster, reduce outage times

and lower the cost to operate the system.

5/2/2014 Duke Energy – Confidential and Proprietary Information page 12

– Interoperability between OT, IT, & Telecom

– Filtered & Compressed Telecom backhaul

– Modular & Scalable Hardware and Software

– End-to-End Encryption & Virtual Firewall

Current State – Message Bus at Data Center Future State – Message Bus in Field and Data Center

UTILITY CENTRAL OFFICE

HeadEnd B

Vendor B Solution

Proprietary Network

HeadEnd A

Vendor A Solution

PrivateCarrier

R

HeadEnd C

Vendor C Solution

3G / LTE Carrier

900MHzISM

Da

ta C

en

ter M

essa

ge

Bu

s

R

UTILITY CENTRALOFFICE

HeadEnd A

HeadEnd B

HeadEnd C

Da

ta C

en

ter M

essa

ge

Bu

s

Communication Node

3G/LTE, WiFi, Ethernet,

or Fiber

Communication Node

Fie

ld M

essa

ge

Bu

s

The Field Message Bus: The Distributed, Standards-Based, Open-Source “Internet of Things” Enabler

Speed / Cost / Security

5/2/2014 Duke Energy – Confidential and Proprietary Information page 13

page 14 Duke Energy– Confidential and Proprietary Information

Storage (Unstructured)

Storage (Structured)

CIM (Contextualization)

Visualization / Discovery

Business Intelligence

S

e

c

u

r

i

t

y

Analytics at the Central

Office

Analytics at the

Substation

Analytics at the Edge

Smart Meter Line

Sensor

X Street

Light

Smart

Assets

Distributed

Energy

Resources

Transformer Protection

& Control

Weather

Sensor

Comm.

Node

Field Message Busses (Translation)

IoT Enabled Data and Analytics Framework

Capacitor Control Weather Sensor Regulator Control Streetlight Control AMI and Line Sensors

One System, Multiple Functions, Many Savings

5/2/2014 Duke Energy – Confidential and Proprietary Information page 15

Opportunity Impact

Cost-Savings • 90% Transmission Telecommunications cost reduction • 16-33% Distribution Automation cost reduction

Performance Gains • 15 minute to 250msec response time improvement • Interoperability of diverse assets unlocks data and allows systems

to coordinate better

Customer Benefits • Detect outages faster • Respond more efficiently • More direct and interactive customer experiences possible