Management of Smart Grid Data

The advent of Smart Grid has significantly expanded the role and importance of data and information management requiring:

• Strategies to ensure the proper collection, analysis and utilization of data and information
• Development of robust and flexible communication networks
• Being proactive in addressing any legal ramifications relating to data ownership

Leveraging Smart Grid Data

There are a number of factors and implications to consider when considering the usefulness of this influx of data and information, namely:

• Smart Grid will enhance the electric utilities’ ability to understand customer behavior and energy usage, but not without a concerted effort and focus.
• Utility executives will need to establish tactics to translate this data to information that is relevant to their customers and communicate it efficiently with their customers.
• New challenges will emerge as the bar will likely be raised with respect to load forecasting, system reliability, and energy conservation.

The implementation of technology alone will not make a grid smart. Use and depth of deployment of these technologies will be critical. For example, AMI, used to improve service restoration in the event of a power outage is part of a Smart Grid strategy, but to merely use these smart meters as an alternative to manual meter reading is not. But, more to the point, there should be a clear linkage between the technology and business goals. Valuations should compare the costs of implementing the technology and capturing information with  a longer term strategic goal. This integration of strategy and tactics should be at the center of any discussion regarding the optimization of a significant influx of additional information. For example:

• Implementing demand response can result in the avoidance of new generation thus conserving energy.
• Customer outages can be identified without depending on customer phone calls, thus improving overall outage response.
• Customer willingness to reduce power usage during peak hours can be measured and the full range of incentive frameworks can be created and evaluated to encourage against targeted reductions in energy consumption.
• Load balancing within the transmission systems will provide lower generation costs, savings that can be passed on to the customer.

This certainly represents new and improved ways to approach the business and integrate utility operations with the long range strategies and supporting objectives.  In overlaying this communication network (smart grid) over an existing power network, the stage will be set to leverage the data, convert it to information and communicate the insights and ramifications to all stakeholders.

Requires a Robust Communication Infrastructure

It has already been established that the Smart Grid will cause a significant increase in data and information flow between the electric utilities and the customers they serve. The sheer magnitude and scope of this information might suggest that the electric utilities are in fact, operating in two industries: electricity and communications. Focusing on the elements around communication, the following observations can be made:

• Fiber optic networks, wireless communications, and power line carrier (PLC) technologies  appear to all have a role in future utility communication infrastructures. This will support the quick implementation of AMI, yet allow for the introduction of other technologies such as demand response and distribution automation, such that communication can occur at a control center and communicate throughout the system all the way to the customer premise.
• Assuming that adequate flexibility is built into the smart grid, this architecture will also support control devices for major appliances, ensure pertinent information is fed to switches and sensors, and be able to measure and report energy usage.

Refocusing on the operational considerations, this configuration will allow the electric utility to immediately realize and correct for any system disconnects and meet the anticipated need for energy, while lowering operations costs and satisfying system reliability performance expectations.

Recognizing that the goals take on a number of different dimensions:

• Reduce costs
• Provide customers with timely and meaningful information
• Maintain network security

One can begin to appreciate the challenges of collecting, evaluating and reporting on this dramatic influx of data.

Data Ownership Raises Issues Around Privacy and Confidentiality

Every opportunity brings with it unintended challenges. Though smart grid enhances an electric utility’s ability to reliably and efficiently provide energy to its customers, it also poses some public policy, security and legal issues revolving around the handling of data that highlights an individual’s habits (e.g. types of appliances and their usage, type of heating and cooling systems, daily routines around housework and related functions, and thermostat settings) or commercial customer’s operations (shift routines, energy consumption and available remedies to reduce energy use). The primary issues around this topic include:

• To what extent do privacy rights apply
• Ownership of the information
• Methods to protect the information

There are a number of avenues to pursue in addressing these concerns, ranging from establishing a uniform set of laws (or confirming that the current laws are adequate) to the creation of an information agreement that clarifies ownership, specifies the amount of privacy to be accorded, and the commercial value of the information. Additionally, rights around intellectual property and competitive intelligence need to be addressed. The unique circumstances surrounding each electric utility should be analyzed and any policy and legal issues should be resolved prior to the full deployment of a smart grid.