Grid Modernization- The Path to Full Network Automation

Current priorities placed on Advanced Metering Infrastructure (AMI) and SmartGrid technologies at the highes levels of state and federal government are creating compelling pressure on every utility to commit significant investment to such initiatives. But the path to success involves a plan that integrates myriad of factors, including:

• Broad array of developed and emerging technologies.
• Grid Readiness (i.e. health and condition of current T&D system and its foundational capacity to sustain highly reliable service)
• Ever-expanding group of internal and external stakeholders (e.g. Regulators, Shareholders, Legislators, and Customers)
• Additional funding requirements

The challenge confronting the electric utility industry is not limited to selecting the proper AMI solution and supporting communication infrastructure (though that in of itself is a significant element), but must be broadened to developing a comprehensive T&D strategy that addresses the challenges inherent to these factors, from the source of supply to the customer premise. Defined as Grid Modernization, this approach must be:

• Customer-Centric: Ensure the customer receives full benefits of automation at a reasonable and justifiable cost
• Shareholder-Centric: Present a holistic view of the costs and benefits in a manner that supports full recovery of the investment
• Utility-Centric: Address the myriad of technical and financial legacy issues that lead to sub-optimal decisions around work planning and execution

Since utilities vary widely across each of factors and constraints that are related to Grid Modernization, a utility-specific view of what constitutes Grid Modernization (scope) and the approach/strategies to be implemented must be adopted. The primary differentiators among utilities in determining their readiness for automation can be described applying a 2-dimensional view:

• Readiness for Automation indicating a measure of the asset health and condition of the system
• Regulatory/Legislative Approach suggesting that a critical success factor in implementing this strategy involves a more open and collaborative relationship with governmental agencies

The majority of U.S. utilities are not ready for automation and relatively formal in their dealings with the regulator. In this case, modernizing the electric infrastructure (or backbone) should be a primary focus; and any immediate efforts to automate the grid or customer premise (AMI), should either focus on pilot efforts to test out technologies, or be initiated only in response to ill-timed legislative mandates. However, as the functioning, yet aging assets bordering on obsolescence are replaced, more standard configurations are installed and “automation-ready” elements (e.g. radio-controlled reclosers, remote-operated switches, “smart” relays, expanded telecommunications bandwidth and added margins for automatic load shifts) are added to the networks, the emphasis will then shift to completing the automation of the grid, installing AMI (and associated communication infrastructure), and building out the selected AMI applications. This sequence in concert with proactive funding and regulatory strategies will likely produce an actionable plan, meet the expectations of the primary stakeholders, and result in cheaper, cleaner, safer, smarter and more reliable electric service.