The Challenge of Disruption

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1 The Challenge of Disruption DISTRIBUTED NETWORK INTELLIGENCE IN THE AGE OF DISTRIBUTED ENERGY RESOURCES (DER) MATHEMATICAL EVOLUTIONS FOR RISK MANAGEMENT: THETARAY ANOMALY DETECTION ALGORITHMS ARE A GAME CHANGER WHITEPAPER 1

2 INTRODUCTION The power utilities industry, a conservative and traditional sector, is facing huge disruption. And in the middle of all this change stands DER Distributed Energy Resources perhaps the driving factor. The power utilities sector is transforming from a one-way (unidirectional) power flow, into a more distributed grid. One with a decentralized power generation network that no longer depends on large generation plants. Instead, we have numerous small-scale power generators and multiple renewable energy sources. Sources including solar, wind, hydro, and gas located in rural, metropolitan and residential areas. In this decentralized power grid, energy flows in multiple directions and consumers can just as likely be energy producers. Such dramatic change requires the power sector to evolve and modernize the platforms it uses to control its transmission and distribution (T&D) grid. Not just part way, but right to the very edge of the energy network. GRID EVOLUTION TODAY One-Way Power System EMERGING The Energy Cloud Large, central located generation One-way energy flow No flexibility Simple market structure DER-Distributed Energy Resources Multiple input and users Digital smart grid and AMI Complex market structure Other trends are driving modernization, too: Electrical vehicles (EVs) which will require redistribution of energy resources and advanced monitoring and control systems able to cope with thousands (if not millions) of charging stations and adapt to changes in what has been until now, largely predictable energy consumption habits. Available energy storage systems for households, businesses and industry Growth in micro-grids, capable of supplying their own energy needs and even sharing energy with the utility company Compliance with strict environmental, security and safety regulations and laws. New payment models, where the utility company pays small and individual producers 2

3 THE COMPONENTS OF TRANSFORMATION Much of the change from the old to the new is being driven by technological trends. In effect, creating what s called the Energy Cloud. Some of these technology trends which are more influential on the energy market include: Smart Grid Systems evolving from a one-way electro-mechanical grid to pockets of connectivity and automation and, in the future, wide-spread connectivity with modern Industrial IoT (Internet of Things) devices. Eventually, this will become the Neural Grid with cloud-based AI, ubiquitous connectivity, edge computing, and automation (Navigant, 2016 from Smart Grid towards Neural grid $500 billion USD market cap in 2025 with 6% annual growth from 2018). The Digital Substation evolving from first-generation SCADA, telemetry and teleprotection systems, to digital, connected platforms based on new standards such as IEC This will replace legacy remote terminal units (RTUs) and programmable logic controllers (PLCs) with new-generation intelligent electrical devices (IEDs). They communicate by using advanced, secure protocols and Ethernet-based, protected and resilient substation systems. Communications Network the old TDM/ SONET/SDH-based systems are becoming end of life (EoL), heralding next-generation secure packet and optical technologies such as (Ethernet, IP/MPLS, MPLS-TP, WDM/OTN, segment routing). These can handle legacy SCADA and telemetry systems (TDM-based) and large-scale packet-based services and applications, which require more processing and switching capacity in multiple layers. These modern systems can also deliver advanced traffic engineering tools to all points of the network to cope with mission-critical services and applications (e.g. SCADA and tele-protection) and other, less sensitive traffic and data. Smart Meters or advanced meter instruments (AMIs) provide bi-directional data in real-time and are connected to the power grid communications network through fiber, wireless or copper. These devices will harness IoT technologies, offering miniaturization, long battery life, processing, and connectivity. Big Data allows huge volumes of protected and secure OT and IT data to flow quickly from all points of the distributed grid. Existing and evolving standards work to provide a standards-based architecture. One enabling data and information exchange between internal and external parts of the energy cloud. Asset and Grid Management Platforms control and monitor every element of the grid from a central operations control center. Also enable real-time response, precise billing, and customer satisfaction and retention, to increase energy efficiency, sales, profits and ROI. Cyber Security an energy cloud, with more points of access, also provides more opportunities for attack. Cyber security poses a unique challenge for power utilities because attacks are hard to predict, unlike outage events which are related to weather or aging assets. Recent cyber events are prompting power utilities to expand beyond traditional compliance-based practices to more proactive cyber security policies. In future, energy cloud cyber security solutions will have to be deep, broad and holistic, protect hard and soft assets, and extend from DER to all points/edges of the grid. 3

4 Power utilities are all different and depending on local/regional laws and regulations, energy generators, transmission system operators (TSOs) and distribution system operators (DSOs), will each have different reasons for embracing change and modernization. Reasons include cost savings, improved energy quality, efficiency and sustainability, environmental and greenhouse gas (GHG) reductions. Plus of course, improved reliability and resilience, increased customer satisfaction and retention, and increased sale and profits. WITH CHANGE COME CHALLENGES Ambitious programs such as ARRA (American Recovery and Reinvestment Act ) and the EU s initiative are pushing grid technology deployments. Alongside the above mentioned technological and market drivers, the power sector has to overcome big and varied challenges to enable a cost-effective transformation. All in a way that minimizes risks and maximizes results. Challenges include: Workforce The current skills and knowledge to deploy and manage a traditional unidirectional grid aren t enough in the age of DER. These must evolve to handle new technologies and platforms. Maintenance and Management It s a challenge to manage a lot more assets over a complete lifecycle, while maintaining and supporting strict and regulated mission-critical services and applications. SCADA, telemetry and tele-protection systems must continue to work with even higher levels of availability, resilience and security. Analytics becomes key in managing DERs effectively and allowing failures and degradations to be predicted. IT/OT Convergence Previously two separate networks, IT and OT are converging into one for three reasons: 1. To address cyber security threats in a holistic and multilayered way. 2. The OT network, is evolving from TDM/SONET/SDHbased communications technologies to packet-optical solutions, similar to technology used in the IT network. 3. To bring together cross-domain services and applications such as: demand-response systems real-time customer relationship management (CRM) connected across smart grid and smart meters office-to-field systems for improved reliability and resilience of the grid. All this provides smart and secure segmentation between IT and OT through platforms and technologies such as firewalls, VPNs (Virtual Private Networks), network slicing, encryption, and other tools. Network Complexity Smart grid and IIoT evolution means active and passive assets deployed and managed across the energy cloud will grow by 10s of thousands, maybe even 100s of thousands. It will need advanced DERMS-DER management systems and endto-end asset management platforms, combined with cloud/ edge computing capabilities to provide end-to-end visibility and as much tool and service automation as possible. High volumes of digital data from devices integrating IT and OT with engineering systems will help create a digital view of the DER energy cloud. Communications Network Distributed Intelligence As part of the IT/OT convergence, an intelligent communications network needs to connect different elements of the smart grid. Any smart or neural grid platform is composed of: Applications (eg. billing services, call center, analytics, cloud services, data storage and management). End-user services (eg. smart meters, smartphones/tablets, smart appliances, EV charging stations, smart sensors). Infrastructure (eg. transmission and distribution grid, solar, wind, gas stations, micro-grids, utility-scale storage). Communications is key to connecting these elements and deriving added-value from them. ROI and Business Benefits Technology investment, budget limitations, regulatory requirements, security and safety issues, marketing and billing, customer satisfaction and retention. All these factors affect any decision-making and will define the speed of transformation. In the energy sector, it is essential that 4

5 technology is field proven over to be highly available and robust, so modernization and migration cycles are sometimes very long (from 10 to 20 years). Improving Safety and Security Critical infrastructure is a strategic asset, and so highly regulated. As such, laws evolve in line to address the threats that target the cyber and physical security of the DER and other grid assets that form the energy cloud. In effect, any element affecting the grid s availability and reliability. NERC (North American Electric Reliability Corporation) CIP (Critical Infrastructure Protection) is an example of standards that maintain reliability, availability and security of North American power utilities. Safety is constantly addressed across standards, certifications, training and policies to ensure a healthy workplace and safe delivery of basic electricity services. FAN-to-T&D Connectivity The challenge to deploy countless smart meters and smart sensors in the distribution network (Field Area Network), connected to transmission and generation control centers has led to various solutions, including: satellite (used in remote, rural areas) private RF mesh networks (like IoT backhaul solutions such as LORA and Spring Networks) public wireless (2G/3G and 4G) point to point and point to multipoint microwave systems private fiber (FTTx), leased lines and PLC (powerline communications) using medium/low voltage lines for data communications). There s no one-size-fits-all solution. Each requires different interfaces and capacities from the transmission communications network, which must, by default, provide high bandwidth, support predictable low latency, be multi-purpose, multi-service, secure, and future-proof. The next generation of mobile technology, 5G, aims to evolve from providing best effort data services, and of course voice, to becoming a ubiquitous connectivity platform for residential, business and critical industries. As part of this it will be the architecture to support the massive IoT involved with supporting the evolution to smart utilities. To enable it to achieve this ubiquitous delivery platform the 5G network will provide: 1Ms UP TO 10 99% End-to-end roundtrip delay (latency) GBPS Year battery life for low-power, M2M devices (such as IoT) 100% Coverage Reduction in energy consumption SECURE NETWORK Times the bandwidth per unit area connections to endpoints in the field times number of connected devices % availability Creating a ubiquitous field area network (FAN) using 5G technology, and with under 1ms latency across very large geographies, may not be possible for a few years yet. It will require specific sets of features and capabilities from the transmission communications network to serve as a backhaul for such services. 5

6 THE LONG AND WINDING ROAD FUTURE The Energy Superhighway Broadband Low-latency Multi-technology Multi-purpose Ubiquitous Future-proof Large, central located generation Owned or leased network 6

7 To embrace distributed energy resources requires root and branch changes to the traditional way of doing things new business models, assured security, resilience, grid reliability, and a fully supported digital transformation. As organizations start on the sometimes decades-long and winding road to upgrade and modernize their mission-critical energy infrastructure, they ll need to work with a partner that provides: Optimized hardware Optimizing interfaces, cost, size, and environments for power utilities means a solution that provides a full packet portfolio, supports legacy TDM/SDH and full WDM/OTN for bulk transport. Hardware needs to integrate packet and optical support for TDM/SDH, deliver high scalability with in-service expansion options, and have unique DIN-Rail MPLS-TP compact switch support DER topology. Risk-free migration and network modernization Proven, field-hardened, transition processes and partners, from early project development and definition through to final implementation. Optimal technology The right technology for IT/OT convergence and mission critical assurance. So MPLS-TP for the deterministic packet transport and advanced OAM required for mission-critical (OT) services. And IP/MPLS for dynamic non-mission-critical and IT services. Advanced operations software To simplify operations, increase network availability, and reduce TCO by providing simple intuitive network management for the entire network, including mission-critical service assurance and advanced fault management features. Software must also ensure the network operates at maximum availability, usage and efficiency and provides optimized security for power, with SCADA anomaly detection, encryption at all levels, and next-generation firewalls. THREE PATHS TO MODERNIZATION Combining high-performance, scalable and future-proof packet and optical platforms provides a unique solution for a communications network migration strategy for generators, TSOs or DSOs. Regardless of preferred technology, there are three different strategies to replace near end of life TDM, SDH or SONET communication OT networks: FULL MIGRATION This network modernization scheme deploys a new optical-packet network and migrates all legacy services and applications. This option combines TDM/SDH/SONET support alongside packet services. New and old services and devices co-exist and work alongside each other. OVERLAY This deploys a new packet-optical network alongside the old one, gradually installing, testing and certifying new SCADA, telemetry, tele-protection operational platforms and devices, to guarantee the same or better service compared to the old parallel system. Over time, this replaces legacy services and applications with modern ones (eg IEC based). At the end of the process, the old TDM/SDH/SONET network is phased out. UNDERLAY This modernizes and digitizes substations in steps, migrating all SCADA, telemetry, voice, video and teleprotection to a mission-critical digital substation ecosystem, usually with an Ethernet infrastructure. Legacy TDM/ SDH/SONET is maintained for as long as possible, while deploying a new generation OTN underlay (Layer 1). The OTN wavelength funnels old network trails and circuits alongside circuits aggregating packet traffic from the digital substation applications and services. Ultimately, TDM/SDH/SONET is phased out, alongside all legacy SCADA and tele-protection systems. Each strategy requires a future-proof, scalable platform, with multi-service support, and embedded cyber security tools (such as SCADA anomaly detection, encryption, and substation secure gateways). Each also requires the ability to backhaul any FAN technology including 5G, with very strict requirements (such as automation, slicing and edge computing). 7

8 IN SUMMARY To comply with standards and deliver the required set of mission-critical, legacy and new generation packet-based services and applications, means having the right future-proof building blocks in place. Key to all of that is choosing an experienced connectivity partner who understands the dramatic transformation and modernization processes ahead. And is there to guide you through them. YOUR CHALLENGES Need mission critical SLA assurance Need tight OPEX control Ever increasing cyber security threats Teleprotection over packet Support of new IP based services Multiservice support form single platform Need to reduce network complexity Network needs to be future proof OUR SOLUTIONS Require deterministic MPLS to provide deterministic behaviour with SLA monitoring and sub-50ms lossless protection switching. Need advanced software tools to monitor network utilization Must have the ability to perform DPI on the control signals and be able to detect and react to SCADA anomalies. Need to have the capability to encrypt at all layers (1/2/3), provide a secure gateway, an authenticated proxy and pull this all together with a consolidated Secure information and event management system (SIEM) The network must provide strict, deterministic latency with a field proven distance/differential teleprotection over packet solution. Need to flexibility to support the most appropriate transport technology for the service; IP/MPS, MPLS-TP and OTN Need a single platform that can integrate the packet based IT services with the legacy OT services and provide an evolution path for both Need simple intuitive network management with advanced software applications to simply operations tasks and reduce/eliminate the potential for errors Need a modular system that has the agility to easily allow the network to evolve from TDM/SDH to packet at the rate required. Contact us today to learn more about ECI s ElastiGRID Utility Solutions ABOUT ECI ECI is a global provider of ELASTIC network solutions to CSPs, utilities as well as data center operators. Along with its long-standing, industry-proven packet-optical transport, ECI offers a variety of SDN/NFV applications, end-to-end network management, a comprehensive cyber security solution, and a range of professional services. ECI's ELASTIC solutions ensure open, future-proof, and secure communications. With ECI, customers have the luxury of choosing a network that can be tailor-made to their needs today while being flexible enough to evolve with the changing needs of tomorrow. For more information, visit us at 8

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