Energy IoT Landscape

01 Nov 2017 Long Read

Technologies such as IoT, analytics and cloud can bring the organisation and policy in alignment to digitise the grid, says PRAKASH CHANDRAKER.

With digitisation entering various walks of life, an increasing number of devices and appliances are becoming 'smart' and digitally connected. Consequently, the Internet of Things (IoT) is becoming a ground reality in different domains. In large measure, however, industrial IoT is now leading the way in creating new benchmarks in connectivity.

The three major drivers in the IoT revolution are: Urbanisation, digitisation and industrialisation.

With 50 billion connected things expected by 2020, digitisation is driven by efforts to ensure faster, more efficient devices, processes and systems in all industries. And with energy consumption expected to rise almost 50 per cent globally and three to four times in India by 2050, industries need to adopt sustainable practices based on green technologies and energy-efficient systems.

While the Centre has announced mega plans to boost power production through various sources, building power infrastructure requires time and resources.

For Indian power companies, operational efficiency improvement, reduction in AT&C losses and operational cost reduction are top priorities. And these can be addressed through seamless integration of IT (information Technology and OT (Operations Technology) leveraging today's technologies such as IoT, analytics and cloud.

The Energy IoT
When IoT (Internet of Things) is augmented with sensors and actuators, the technology becomes an instance of the more general class of cyber-physical systems, which also encompass technologies such as smart grids, smart homes, intelligent transportation and smart cities.

With such widespread, electrification and connectivity need rethinking as well. The Internet has already transformed the way we live, work and play. Now, connecting things is going to take this to a brand new level. Plus, when our world is more electric, more connected and more distributed, new opportunities emerge and allow us to tap into even more efficiency - in industrial processes, the energy value chain, buildings, transportation, the global supply chain, and even in the comfort of our homes.

The change in our world is more profound than ever. New technologies, enabling for the first time distributed and connected energy, are challenging us to redefine the way we live our lives. Looking at our future from an energy perspective, we have an energy paradox!

Becoming 4x more efficient
Energy demand will double in the next 40 years, stemming from the challenges of access to energy and the mega trends of urbanisation, digitisation and industrialisation worldwide. This is no different for India. However, at the same time, we have to reduce CO2 emissions by half to avoid significant irreversible damage to our planet. Therefore, the only way is to become four times more efficient.

A prerequisite to extracting optimal efficiency is the coming together of energy along with its primary equipment, automation and software and analytics. This makes the energy value chain more intelligent and predictable.

Add to this, a layer of connectivity. IoT is making this possible. Almost all energy equipment of the future will demand system-on-chip technologies.

Now, when we integrate energy, automation and software with connectivity, we drive greater energy and process optimisation. Right across this energy value chain, we see a great deal of IT-OT integration, the IoT and intelligence. It is the integration of smart grids, distributed generation and efficient demand that drives this new distributed and connected ecosystem from plant to plug.

Three emerging priorities

The first is to focus on excellence in operational efficiency for grid operators, by optimising and putting systems in place to ensure utilities can do more with the same, or even less. Network automation enables improved situational awareness and dynamic network optimisation from analytics to operate the grid assets as close as possible to their physical limits with fewer resources while closely tracking supply and demand fluctuations.

The second is to extend utility systems to the edge of the grid to manage increased renewables (either operated by utilities or decentralised at prosumer level). Utilities need to meet the demands of prosumers who want more energy choices and generate revenue from offering flexibility through solutions such as controllable loads, microgrids and storage.

The third priority is from demand management, so that utilities can tap into the potential flexibility existing beyond the meter, by developing new services as well as a system-wide approach to energy-efficiency.

Simple measures can have a big impact and the right technology suppliers are the key to it all - to provide the expertise, help redefine architectures, and support decisions on strategies:

  • Solutions emerging out of energy IoT: Utilities continue to steadily invest in traditional grid infrastructures but look to control costs with smarter equipment and flexible solutions to make the most of existing grid assets.
  • Efficient day-to-day grid operations: Streamlined distribution management processes to dynamically optimise the network and operate it as close to its physical limits as possible, closely tracking fluctations in supply and demand.
  • IT/OT connectivity for a smarter grid: OT systems connect to IT resources through standardised IP communication architecture. Single platform and user experience and managing integrated information flows enables simplified grid operations and analysis for quicker and more accurate decision-making.
  • Thriving on the renewable boom: Increased intermittent and distributed generation requires more grid-edge intelligence to connect wind, solar and other distributed energy sources. Decentralised generation systems need flexible management solutions allowing utilities and prosumers to take control and leverage energy choices.

Equipment intelligence
In addition to the smart DISCOM, the other key factor for smart electricity would be smart electrical equipment and systems that combine to deliver electricity at the customer's doorstep. When integrated through suitable ICT-based applications, smart electrical equipment and systems result in an intelligent distribution network that can be controlled remotely and possess self-healing capabilities.

In the context of a smart city or even from the viewpoint of a smart grid, smart electrical equipment should possess a number of general characteristics, such as:

Data recording: Capability of logging predefined critical parameters and events within a specific time period that would assist in analytics-based decision making.
Communication: Ability to communicate the recorded parameters or events, in real-time or as per a predefined time interval, with other equipment or any remotely located data aggregating centre. This communication can either be one-way or two-way depending on system requirements.
Ease of operation: Designed to ensure easy operability and maintenance with the possibility of remote monitoring and control.
Efficiency: Producing maximum possible output, for a specific input, without compromising on the equipment life and cost of operation.
Safety: Focus on operator and societal safety during installation and operation.
Zero effect: Negligible environmental impact during the product life-cycle, including manufacturing and disposal stages.

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About the author:
Prakash Chandraker
is Vice President, Energy Business of Schneider Electric India.

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