Communication networks for smart grids : making smart grid real

Computer Communications and Networks

Communication

Networks for

Smart Grids

Kenneth C. Budka

Jayant G. Deshpande

Marina Thottan

Making Smart Grid Real

Computer Communications and Networks

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Kenneth C. Budka • Jayant G. Deshpande

Marina Thottan

Communication Networks

for Smart Grids

Making Smart Grid Real

123

Kenneth C. Budka

Alcatel-Lucent

Murray Hill, NJ

USA

Marina Thottan

Alcatel-Lucent Bell Labs

Murray Hill, NJ

USA

Series Editor

A.J. Sammes

Centre for Forensic Computing

Cranfield University

Shrivenham Campus

Swindon, UK

Jayant G. Deshpande

Alcatel-Lucent Bell Labs

Murray Hill, NJ

USA

ISSN 1617-7975 Computer Communications and Networks

ISBN 978-1-4471-6301-5 ISBN 978-1-4471-6302-2 (eBook)

DOI 10.1007/978-1-4471-6302-2

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Preface

In its Framework and Roadmap for Smart Grid Interoperability Standards, the US

National Institute of Standards and Technology declares that a twenty-first-century

clean energy economy demands a twenty-first-century electric grid.

1 The start of the

twenty-first century marked the acceleration of the Smart Grid evolution. The goals

of this evolution are broad, including the promotion of widespread and distributed

deployment of renewable energy sources, increased energy efficiency, peak power

reduction, automated demand response, improved reliability, lower energy delivery

costs, and consumer participation in energy management. This evolution will touch

each and every aspect of the electric power grid, a system that has changed little

since its inception at the end of the nineteenth century. Realizing the goals of the

Smart Grid evolution will require modernization of grid components, introduction

of new control and monitoring technologies, and ongoing research and development

of new technologies.

The “intelligence” of the Smart Grid relies upon the real-time exchange of

measurement and control data among a vast web of devices installed in homes and

businesses, within the distribution and transmission grids, and at substations, control

centers, generation stations, and other facilities. Thus, a high-performance, reliable,

secure, and scalable communication network is an integral part of the Smart Grid

evolution.

However, the communication networks of many utilities today are ill-equipped

to meet the challenges created by the Smart Grid evolution. These communication

networks are largely purpose-built for the support of individual applications:

separate networks for Supervisory Control and Data Acquisition (SCADA), for

video surveillance, for Land Mobile Radio backhaul, and so on. These networks

rely heavily on circuit-based transport technologies. The ever-expanding growth

of network endpoints and applications as Smart Grid expands makes these current

1National Institute of Standards and Technology, NIST Framework and Roadmap for Smart

Grid Interoperability Standards, Release 2.0, NIST Publication 1108R2, U. S. Department of

Commerce, February 2012.

v

vi Preface

practices untenable. A new, integrated network architecture is required, one that will

carry traffic from all applications while meeting their disparate reliability, security,

and performance requirements.

This book is a contribution to this growing body of knowledge. It is based

both on our research into Smart Grid communications and on the consulting

services we have provided electric power companies on transforming their existing

communication networks to meet the challenges of Smart Grid evolution.

This book will be of interest to those engaged in the planning, deployment, engi￾neering, operation, and regulation of Smart Grids, including strategists, planners,

utility practitioners, communication network technology providers, communication

network service providers, Smart Grid product vendors, regulators, and academics.

This book will also be a resource for upper-level undergraduate and graduate courses

covering Smart Grids.

We have taken an application-centric approach to the development of the

Smart Grid communication architecture and network transformation based on that

architecture. Therefore, a significant part of this book is devoted to describing the

evolving Smart Grid applications such as Advanced Metering Infrastructure (AMI),

distribution automation (DA), and traditional utility applications like SCADA.

We begin in Chap. 1 with characterizing the Smart Grid in the broadest sense.

The electric power grid consists of power plants of bulk electric energy generation

connected to a system of high-voltage transmission lines to deliver power to

consumers through electric distribution systems. Communication networks have

been used for grid monitoring in the latter part of the twentieth century but were

limited to the substation-based SCADA and teleprotection systems. The need

for clean energy with large-scale deployment of renewable sources of energy,

advantages of peak power reduction for environmental and economic reasons, grid

modernization, and consumer participation in energy management are some of the

motivations for the evolution of Smart Grid. While Smart Grid is a natural evolution

of the electric power grid, the evolution has taken a sense of urgency in the last

decade.

Topics in power systems and grid operations relevant to this book are presented

in Chap. 2 for the benefit of the readers with little background in power systems.

After presenting the definitions of basic electric quantities like power and energy,

a quick overview of alternate current systems and phasors is presented. Elements

of power generation, transmission, and distribution systems are briefly described to

provide background relevant to this book.

In Chap. 3, topics in communication networks relevant to this book are presented

for the benefit of the readers with little background in networking. After a brief

presentation of the data communication network architecture framework of the

Open System Interconnection (OSI) architecture, networking layers pertinent to

Smart Grid network are presented in more detail. Introduction to many wireless and

wireline technologies is included. Since IP will be the network protocol of choice

for the evolving smart networks, relevant IP networking features are described in

more detail. Multiprotocol Label Switching (MPLS) technology is also included in

this review since MPLS provides many important features needed in the Smart Grid

Preface vii

communication network, in addition to supporting utility applications that cannot

be carried over an IP-only network.

Before the Smart Grid evolution began, networking for utility operations was

generally limited to applications such as SCADA and teleprotection. Utility mobile

workforce personnel use communication networks for their operations – mostly for

push-to-talk voice communications. Some utilities have deployed network video

surveillance with closed circuit television (CCTV) cameras. All these applications

will continue to be supported in the Smart Grid network. In Chap. 4, these

applications and their communication network requirements, networking protocols,

and networking technologies are presented.

In Chap. 5, we present a comprehensive description of many of the new utility

applications that can be attributed to the Smart Grid evolution. In addition to

presenting their communication network requirements, we briefly discuss net￾work protocols and network technology options for some of these applications.

Applications included in this chapter are AMI, DA, distributed generation (DG),

distributed storage, electric vehicles (EVs), microgrids, home area networks, retail

energy markets, automated demand response, wide area situational awareness and

synchrophasors, flexible AC transmission system, and dynamic line rating (DLR).

Contributions of the application of Chaps. 4 and 5 to one or more of the four broad

characteristics of the Smart Grid are summarized in a table at the end of this chapter.

In Chap. 6, the Smart Grid communication network architecture is developed.

A core-edge network architecture is well suited for the Smart Grid network with

many utility endpoints communicating with the application endpoints located in the

utility data and control center (DCC). The concept of the wide area network (WAN)

is formalized for the Smart Grid network as an interconnection of aggregation

routers – called WAN routers. Other utility endpoints connect to the WAN at the

WAN routers over access networks – called field area networks (FANs) in the utility

community. While IP will be the overall network protocol, the architecture will

support legacy applications and protocols for a period of time as desired by a utility.

In addition to the physical network architecture, the logical network architecture is

described with the use of many examples.

At the outset, it is important to understand that the networking requirements for a

utility network are different in many aspects compared to those for a network service

provider (NSP) network used for data services offered to its customers as well as

for data networks in most enterprises. The NSP networks are primarily designed

to support their customers’ multimedia applications, while the Smart Grid network

must support mission-critical applications such as SCADA, teleprotection, DA, and

synchrophasors. Most enterprise data network requirements on reliability, security,

and performance are less stringent than those of Smart Grid networks. Therefore,

the network design paradigm for Smart Grid networks is different in many respects

from that of the more established data network design practices. Chapter 7 begins

with the characterization of Smart Grid logical connectivity and network traffic that

are the inputs to network design. Design considerations are provided for the support

of the requirements on routing, quality of service (QoS), and network reliability.

viii Preface

While security is briefly included in Chap. 7 in the context of network design,

network security deserves a detailed treatment. Chapter 8 discusses network security

for Smart Grid communication networks. Cybersecurity of the power grid has

become as important as physical security. There has been a concerted effort by

utilities, regulators, and standards bodies to implement a high level of communi￾cation network security that will not only secure the networks but also minimize the

possibility of attacks on the grid and help mitigate and eliminate security threats. A

security architecture with multiple security zones is presented.

Chapter 9 provides an overview of communication network technologies appro￾priate for WANs and the FANs. For WAN, optical networks are discussed in detail

since many utilities already own or plan to deploy significant fiber infrastruc￾ture with optical ground wire (OPGW). Both wireline and wireless networking

technologies are considered with special emphasis of their use as FANs. A more

detailed treatment is provided for power line communication (PLC) technology

since it is not a very commonly deployed technology in NSP or most enterprise

networks. Similarly, long-term evolution (LTE) technology is described in detail in

this chapter, since LTE has the promise of the most appropriate wireless broadband

network technology for Smart Grid endpoints that need to be connected over

wireless networks. Benefits and drawbacks of all technologies for their use in the

FANs are summarized in a table. The chapter ends with a discussion on benefits

and drawbacks of utility ownership of one or more of these network components in

comparison to using carrier data networking services.

Smart Grid brings with it an enormous growth in data that must be managed for

use by an ever-growing number of utility applications. Smart Grid data management

is discussed in Chap. 10 in the context of data collection, storage, and access across

the communication network. The traditional practice of client-server communi￾cation between individual applications and individual data source (such as smart

meters, intelligent electronic devices, and synchrophasor) is not scalable. Further,

this end-to-end communication has inherent security and data privacy risks. There

have been recent advances in secure data management that are particularly suitable

in the Smart Grid data management environment with network-based data storage

and the corresponding middleware that affords highly secure and low-delay access

to the data. In this chapter, a secure data-centric data management architecture is

discussed. The chapter ends with a brief presentation of the elements of Smart Grid

data analytics.

Chapter 11 brings together the concepts, technologies, and practices in the

realization of communication networks for the Smart Grid. In this chapter, we

present network transformation from the present mode of utility operation – of

supporting all utility applications over multiple disparate networks – to an integrated

network based on the Smart Grid architecture framework developed in this book.

The network transformation process must weigh all available alternatives toward

optimal network architecture and design that is sustainable for many years (typically

between 5 and 20 years depending on a utility’s planning horizon).

Planning for long-term network transformation described in this book is based

on reasonable assumptions on future developments in new network technologies,

Preface ix

Chapter 1: Introduction to Smart Grids

Chapter 2:Elements of Power Systems for Networking Practitioners

Chapter 3: Elements of Networking for Power Systems Practitioners

Chapter 4: Conventional Applications in Utility Operations

Chapter 5: Smart Grid Applications

Chapter 6: A Communication Network Architecture for the Smart Grid

Chapter 7: An Overview of Smart Grid Network Design Process

Chapter 8: Network Security

Chapter 9: WAN and FAN Technologies for the Smart Grid

Chapter 10: Smart Grid Data Management

Chapter 11: Communication Network Transformation

Chapter 12: Future of Smart Grid Communication Networks

Interdependence of the book chapters

their availability to the utility in its service area, possibilities of using networking

services from network service providers, and costs. While some of these futuristic

elements and traits were considered in earlier chapters, a more focused discussion

is presented in Chap. 12.

Interdependence of chapters of the book are shown in the figure at the top.

Readers of each chapter will benefit from the material covered in the previous

chapters. Power system professionals may skip Chap. 2 or skim through it.

Similarly, communication networking professionals may skip Chap. 3 or skim

through it. Readers with a significant background in Smart Grid and communication

networking, or with an interest in the specific topics covered, may directly proceed

to Chaps. 9, 10, or 11 after skimming through earlier chapters.

Murray Hill, NJ, USA Kenneth C. Budka

Jayant G. Deshpande

Marina Thottan

Acknowledgments

We started working on Smart Grids about 6 years back when the vague idea

about Smart Grids, its challenges, its benefits, and its potential were starting to

mature. Information and communication technologies (ICTs) were at the core of

transforming the power grid into the Smart Grid. We quickly realized that Smart

Grid requires a fresh look into how communication network technologies should

be used in realizing the Smart Grid. For practitioners in power grid operations,

communication networks were considered only as an expedient tool to support

their immediate needs. What was more surprising to us was that the practitioners

in communication networking looked at the power grid as just another enterprise

that can be supported using the traditional and proven network architecture and

design for network service provider and enterprise data networks. That is simply not

adequate when applied to critical infrastructure such as Smart Grid communication

networks. We hope that this book addresses the needs of both the utility and

communication network communities to make the Smart Grid evolution a success.

In working with many utilities around the world, we had the valuable opportunity

to learn power systems and their operations in great detail from numerous experts

in the area and to learn and understand their needs as they work towards network

transformation to support the Smart Grid. Our thanks to all of them in providing us

the necessary background in developing a Smart Grid application-centric network

architecture and a roadmap for network transformation to support the ever-evolving

applications over an integrated network. Our special thanks to our partners at EPB

of Chattanooga: the material on Smart Grid data analytics drew heavily on what we

have learned through our joint project.

We are thankful to our colleagues in the Strategic Industries Division of Alcatel￾Lucent for their invaluable help as we worked on many research, development, and

customer projects on Smart Grid communication networks. Our thanks to Kamal

Ballout, Lynn Hunt, and Ken Rabedeau.

We are thankful to Alan Mc Bride, Peter Merriman, and Carl Rajsic for their

review of the manuscript and providing valuable suggestions and improvements to

make this a better and more useful book. We also thank Tewfik Doumi, Kimberley

Harris, Mark Madden, Andrew McGee, and Charles Sinno for their review of the

xi

xii Acknowledgments

manuscript. We have learned a lot from our Smart Grid research team, which has

greatly helped us in the writing of this book. Our thanks to our team members

Gary Atkinson, Young-Jin Kim, and Frank Feather. We also thank Ed Eckert, Barry

Freedman, Joe Moreno, and Stephane Thierry for their help in the process of writing

of this book.

This book would not have been possible without our employer Alcatel-Lucent

and their research and development arm Bell Labs for providing us an environment

conducive to undertake such a project. We thank Rati Thanawala and Chris White

for their support and encouragement.

We thank Springer for publishing this book and are particularly thankful to

the editors Simon Rees and Wayne Wheeler for making this book possible.

We appreciate their patience through numerous postponements of delivering the

manuscript. We also thank G. Kiruthika for support throughout the production of

the book.

Finally, our gratitude and thanks to our spouses Cynthia Curtis-Budka, Shubha

Deshpande, and Ashok Maliakal for their understanding, support, and encourage￾ment during a good part of the last year and a half while we were working on this

book. We also thank our children Allyn Budka, Colin Budka, Purva Deshpande,

Pari Deshpande, Cyril Maliakal, and Anna Maliakal.

Contents

1 Introduction to Smart Grids .............................................. 1

1.1 What Is a Smart Grid................................................. 4

1.1.1 Clean Energy................................................ 4

1.1.2 Energy Management........................................ 8

1.1.3 Consumer Participation in Energy Management .......... 11

1.1.4 Grid Modernization......................................... 11

1.2 Smart Grid Domains and Their Interconnections................... 13

1.3 Objectives of the Smart Grid Communication Network............ 14

1.4 Overview of the Book ................................................ 18

References.................................................................... 21

2 Elements of Power Systems for Networking Practitioners............. 23

2.1 Voltage, Current, Power, and Energy ................................ 23

2.1.1 Direct Current (DC) System ............................... 23

2.1.2 Alternating Current (AC) System.......................... 25

2.1.3 Phasors ...................................................... 31

2.2 Power Generation .................................................... 34

2.3 Transmission Systems................................................ 36

2.4 Distribution Systems ................................................. 41

2.5 Faults, Circuit Breakers, Switches, and Reclosers.................. 42

References.................................................................... 45

3 Elements of Communication Networking for Power

System Practitioners ....................................................... 47

3.1 Elements of Data Communication Networks ....................... 48

3.1.1 Links and Nodes ............................................ 49

3.1.2 Connection-Oriented and Connectionless Services ....... 50

3.1.3 Elements of Packet Communication ....................... 51

3.1.4 Classification of Networks ................................. 54

xiii

xiv Contents

3.2 Protocols and Protocol Layers ....................................... 54

3.2.1 OSI Reference Model ...................................... 55

3.2.2 Practical Protocol Layering in Network

Standards and Products..................................... 58

3.3 Data Networking Technologies...................................... 62

3.3.1 Physical Layer (PHY) ...................................... 62

3.3.2 Link Layer .................................................. 67

3.3.3 MPLS ....................................................... 74

3.3.4 Network Layer: IP .......................................... 77

3.3.5 TCP and UDP............................................... 81

3.4 Protocol Emulation, Tunneling, Encapsulation, and Gateways .... 82

3.5 MPLS Services and Protocol Emulation ............................ 84

3.6 Networking Standards................................................ 87

References.................................................................... 88

4 Conventional Applications in Utility Operations........................ 91

4.1 Distribution Management and Transmission Management......... 92

4.2 SCADA ............................................................... 93

4.2.1 Traditional SCADA ........................................ 93

4.2.2 Substation Automation ..................................... 95

4.2.3 SCADA Evolution with IEC 61850 Set of Standards..... 96

4.2.4 Networking for SCADA.................................... 98

4.3 Teleprotection ........................................................ 100

4.3.1 What Is Teleprotection ..................................... 100

4.3.2 Teleprotection Requirements............................... 101

4.3.3 Networking for Teleprotection ............................. 102

4.4 CCTV ................................................................. 104

4.4.1 Video Surveillance at Substations ......................... 104

4.4.2 Networking for CCTV ..................................... 105

4.5 Mobile Workforce Communication ................................. 106

4.6 Business Voice and Data ............................................. 108

References.................................................................... 108

5 Smart Grid Applications................................................... 111

5.1 Advanced Metering Infrastructure (AMI)........................... 111

5.1.1 Smart Meter Measurements ................................ 112

5.1.2 Networking for AMI ....................................... 113

5.1.3 Smart Meter Standards ..................................... 115

5.2 Distribution Automation (DA)....................................... 117

5.2.1 Networking for DA ......................................... 118

5.3 Distributed Generation (DG) ........................................ 120

5.3.1 DG at Consumption Locations Versus

Stand-Alone DG ............................................ 120

5.3.2 AC Versus DC .............................................. 121

5.3.3 Managing DG Connections to the Grid.................... 121