Smart Grid Infrastructure Handbook

A GTM Research Whitepaper

SMART GRID INFRASTRUCTURE HANDBOOK

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY 1.1 Smart Grid Landscape 1.2 Technologies 1.3 Major Trends 1.4 Integrated Solution Value Assessment 2 MARKET SEGMENTATION ANALYSIS 2.1 Control Room (Enterprise) 2.1.1Taxonomy 2.1.2Solutions 2.1.3Deployments 2.2 Transmission 2.2.1Taxonomy 2.2.2Solutions 2.2.3Deployments 2.3 Substation Automation 2.3.1Taxonomy 2.3.2Solutions 2.3.3Deployments 2.4 Distribution Automation 2.4.1Taxonomy 2.4.2Solutions 2.4.3Deployments 3 ABB/VENTYX COMPANY ECOSYSTEM 3.1 ABB 3.2 Ventyx 3.3 Analysts Note 3.4 Partnerships and Capabilities

3 3 4 6 6 8 8 9 10 11 12 13 14 14 15 16 17 17 18 20 21 22 23 23 24 24 25

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SMART GRID INFRASTRUCTURE HANDBOOK

1 EXECUTIVE SUMMARY

1.1 Smart Grid Landscape Smart grid investment in the United States is entering a new stage as the major wave of AMI projects led by American Recovery and Reinvestment Act (ARRA) funding and large IOU deployments is nearing completion. Over the next couple of years, the last of the eight billion dollars invested in stimulus projects that accelerated the deployment and development of smart grid technologies in the United States will be spent. The ARRAs funds primary focus on automated metering infrastructure (AMI) contributed to a tremendous ramp-up of AMI spending that overshadowed less aggressive growth in other smart grid submarkets. Vendors have shipped over 56 million AMI endpoints to US utilities as of the second quarter of 2012. AMI deployment seems to have reached nearly steady state as shipments in 2011 fell from a 2010 high, and shipments are expected to continue to fall slightly in 2012. As the AMI market stabilizes, investment in grid operations is projected to continue to grow. The investment focus is now shifting to the grid and operations to enable utilities to drive reliability and efficiency. In the coming years, the deployment and integration of synergistic software with communications-enabled grid equipment will be the focus of smart grid investment. These systems will provide utilities with the tools to improve grid reliability and the efficiency of existing business processes, as well as enable new technologies to effectively interact with the grid. Utilities will have to make use of a variety of these tools to integrate distributed energy resources, including new demand response programs and home automation; distributed generation; electric vehicles; storage; and microgrids, all of which are being deployed on the electric grid. These investments will induce evolutionary shifts in the control room, transmission system, substation, and distribution grid. Utilities will still focus on their core mission of matching supply and demand and maintaining a safe, reliable grid, but intelligence on the grid will be able to improve a utilitys visibility, reliability, and responsiveness. For most utilities, the process of making the grid smart is occurring through the methodical implementation of technologies that enhance traditional capabilities, allowing utilities to evolve business processes to capture value. In control rooms, utilities are upgrading legacy IT applications, installing new management and network modeling software, and expanding DSCADA systems to extend data acquisition and control to additional intelligent electronic devices (IEDs) outside the substation fence. GTM Research expects utility enterprise spending to have a compound annual growth rate of 4.8% from 2012-2015. Transmission spending in the United States is being driven largely by interconnection of renewables and grid interconnection points. Advanced high-voltage DC (HVDC) technology and exible AC transmission systems (FACTS) are bringing remote renewable generation to population centers while increasing existing transmission carrying capacity. The integration of wide-area monitoring and synchrophasors to SCADA/ EMS enables better state estimation, power oscillation monitoring, and voltage stability management. Advancements in the substation are allowing for vast increases in data transfer, improvements in protection and control, and drastically reduced installation and networking costs through the introduction of a local enterprise bus versus older point-to-point integration.

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SMART GRID INFRASTRUCTURE HANDBOOK

The vast expansion of wide-area wireless broadband communications is enabling IEDs on the distribution grid to monitor the grid and coordinate eld device actions. Coordination of DA devices can improve the efficiency and control of the distribution of power, as well as assist in the improvement of traditional business operations such as outage management. Communication, monitoring, and coordination represent a massive shift for utilities that are generally used to viewing the distribution grid as a black box. GTM Research predicts investment in transformer monitoring devices; Volt/VAR control software and devices; self-healing grid hardware and software; distribution management systems (DMSs); enabling communications; and installation will increase at a CAGR of 19.7% through 2015. The accelerating integration of distributed energy resources such as distributed generation, electric vehicles, and storage is hastening the implementation of enabling smart grid infrastructure. 1.2 Technologies Smart grid technologies improve data collection, enable real-time analytics, enhance control, improve reliability, and increase efficiencies created by connection and coordination of grid assets locally and centrally. Smart grid technologies span utility operations. Making a utility smarter can consist of the deployment of advanced eld devices, enhanced communications, additional monitoring equipment, the implementation of advanced network modeling and control software with or without advanced applications, or replacing or upgrading legacy IT systems in the control center.

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SMART GRID INFRASTRUCTURE HANDBOOK

Figure 1-1: Smart Grid Technologies

Control Center Business Intelligence

D Ma ema na nd ge me Resp nt on Sy se SC ste AD m A/ EM S
Ma na t tem rke Sys Ma nt me ge A AD
SC

iss io n

n tio ta ion bs at Su tom Au

Tr an sm

Enterprise Asset Management

TRANSMISSION
Modeling and Control Advanced Applications SCADA/Energy Management System Wide Area Measurement System (WAMS) Synchrophasors

SUBSTATION AUTOMATION
SCADA --

En

rce kfo or ent e W em bil ag Mo Man

Distribution Automation

te r

SCADA/OMS/DMS

Monitoring

Asset Health Monitoring Equipment Sensors

High Voltage DC (HVDC) Equipment Flexible AC Transmission Systems (FACTS)

Enhanced Station Controllers (RTU/ PLC/Gateway)

Digital Protection and Control

*Also available as part of an integrated advanced DMS solution Source: GTM Research

pr i Pla se R nn eso ing ur ce

DISTRIBUTION AUTOMATION
SCADA/Distribution Management System/ Outage Management System Volt/VAR Optimization* Fault Location/FLISR/FDIR* Fault Current Indicators/Voltage Monitors Sensors DA Equipment (reclosers, automated switches, capacitor banks, controllers, and power electronics Distributed Energy Resources (distributed generation, electric vehicles, storage, load controllers) Integration

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SMART GRID INFRASTRUCTURE HANDBOOK

1.3 Major Trends

Figure 1-2: Smart Grid Trends

U.S. SMART GRID MARKET TRENDS

1) Investment focus is moving from AMI to DA with a splash of DR Recent AMI plans have had long payback periods, sometimes with near negative NPVs, often relying on difficult-to-quantify benefits dependent on consumer behavioral change. Distribution automation (DA) benefits are more reliable and persistent, as they do not depend on customer behavior. A combination of DA with demand response (DR) can improve efficiency and reliability, reduce utilities exposure to performance-based rate penalties, and mitigate the costs associated with of peak demand periods. Renewable generation continues to be on the rise in the United States. The growth rate of wind has slowed recently, but solar installation continues to grow heartily. GTM Research has tracked and predicted more than a 75% reduction in the average selling price of a photovoltaic panel from 20082011 and a more than 1000% forecasted increase in solar capacity from 2008-2012, respectively. As penetrations continue to rise, the possibility of unstable conditions on the transmission and distribution grid, as well as the difculty of matching supply and demand, also increase. GTM Research expects municipal and cooperative utilities to lead in the adoption of cloud solutions and software-as-a-service, as IOUs remain on the periphery, using the cloud primarily to reduce the cost of implementing smart grid pilots. Asset health analytics can improve asset performance, lowering operations and maintenance costs, mitigating the loss of experienced utility workers to retirement, and increasing the lifespan of aging infrastructure. The integration of information and operational technology is beginning to occur, most notably in the categories of asset health, demand response, and distribution operations. Data about equipment, supply chains, personnel, and geographic locations are unlocking benefits involving grid management through demand response, improved asset utilization, and more efficient allocation of maintenance resources.

2) Renewables expansion

3) Acceptance of cloud solutions and software-asa-service models 4) Rise of predictive asset management and analytics

5) The increasing integration of IT/OT

Source: GTM Research

1.4 Integrated Solution Value Assessment Ventyx with ABB offers an integrated solution that has products or partnerships that can meet almost any utilitys need for the grid and control center. The combined ABB/Ventyx organization has a strong grounding in both information and operations technology that allows experts on both sides of the IT/OT divide to leverage each others experience to enhance non-traditional solutions such as advanced asset management. A deep understanding of asset performance models and software for supply chain management and workforce management provide ABB/Ventyx with a rare breadth of expertise and capabilities that can be applied to implement other complex system solutions such as outage restoration involving distribution automation, outage management, social media communications, and workforce management. For utilities, this breadth of expertise and product offerings provides an additional opportunity to avoid costly software integration and ensure full-feature functionality. Integrating disparate systems is a costly endeavor that most often requires hiring specialized, third-party consulting firms. Purchasing complementary systems and equipment that are already integrated reduces project timelines as well as overall project costs. Furthermore, the use of a single vendor with an integrated portfolio and experience in both hardware and software can ensure ease of installation, reduced project timelines, and lower integration costs.

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SMART GRID INFRASTRUCTURE HANDBOOK

Traditional utility spaghetti or stovepipe integration schemes are no longer optimal for many utility processes, which require a more open service-oriented architecture (SOA). An SOA utilizes one or a collection of enterprise service buses to allow enterprise applications to reach across utility data and departmental siloes. A more open SOA-based approach for non-real time functions can reduce integration costs for complex systems, reduce upgrade complexity, and allow analytical software to access and analyze data from operations and the IT department to not only optimize the grid for service but also reduce costs, benchmark and improve business processes, and improve protability. Utilities can achieve significant savings and reduce headaches by partnering with a vendor with wide expertise both inside and outside of the control room, such as ABB/Ventyx. ABB/Ventyx leverages its strong background in both field equipment and software to provide integrated solutions that reduce implementation costs and create value, reducing project timelines, increasing available functionality, and providing utilities with the tools to benchmark, compare and enable ongoing business process improvement.

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SMART GRID INFRASTRUCTURE HANDBOOK

2 MARKET SEGMENTATION ANALYSIS GTM Research views the smart grid market as a variety of segments, including: control center or enterprise systems, smart transmission systems, substation automation (SA), distribution automation (DA), distributed generation and electric vehicle integration, automated metering infrastructure (AMI), and home area networks (HAN). This document will focus on smart grid technologies effect on utility operations, which span the control center, transmission, substation, and distribution grid. 2.1 Control Room (Enterprise) Deployment of additional communications in the eld coupled with the addition of smart devices and monitoring equipment on the grid is providing utilities with far more data on grid conditions than in the past. At the transmission level, this increase in data is largely due to the progressive introduction of synchrophasors. Similarly, at the substation level, the increasing creation and transmission of data is an incremental change. At the distribution level, this change is suddenly giving utilities insights into what was once a black box virtually devoid of communications and monitoring. The sudden availability of vast amounts of data on actual systems conditions is allowing enterprise applications to model and provide decision support based on actual conditions along the electrical grid, demand management resources available to the utility, and the market for wholesale power. Control center systems are analyzing more disparate data sets to improve network modeling, gain insight into the performance of the grid, and evaluate disturbances to provide utilities with actionable intelligence to increase reliability, exibility, and asset life while reducing costs. The true value of these software suites will come from tying these systems together to support business process redesign to improve response time, grid efficiency, and nancial management.

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2.1.1Taxonomy

Figure 2-1: Control Room Taxonomy

CONTROL CENTER Cyber Security GIS Digital Globe Ventyx Enterprise Asset Management Mobile Workforce Management CIS, Billing Ventyx Enterprise Resouce Planning Ventyx Ventyx Wide Area Management System Ventyx Ventyx DMS Ventyx Market Management Software EMS Ventyx Generation Management System Ventyx Ventyx Ventyx SCADA ABB Ventyx Service-Oriented Architecture and Enterprise Integration Tools Ventyx Software AG Real-time Data Management Ventyx Data Visualization Ventyx IED Integration and Management ABB Meter Data Management Landis+Gyr Meter Management and Integration Ventyx ABB Ventyx ABB Volt/VAR Optimization Fault Location, Isolation, & Service Restoration (FLISR) Load Balancing Load Management/ Forecasting ABB Ventyx Web Portals Ventyx ESRI Vmware Business Intelligence Industrial Defender

PROCESS IMPROVEMENT ANALYTICS OVERLAY

ENHANCED IT APPLICATIONS

SMART GRID APPLICATIONS

Ventyx Demand Response Management System

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MODELING & CONTROL SYSTEMS

ENTERPRISE ARCHITECTURE

ENTERPRISE INFORMATION MANAGEMENT

FIELD & DEVICE INTEGRATION

PHYSICAL INFRASTRUCTURE LAYER

SMART GRID INFRASTRUCTURE HANDBOOK

Source: GTM Research

SMART GRID INFRASTRUCTURE HANDBOOK

2.1.2Solutions
Figure 2-2: Control Room Solutions

CONTROL ROOM SOLUTIONS

Smart Grid Sector Energy Market Management Product Name Network Manager: Market Manager System (MMS) Product Category Wholesale Power Operations

Description: The MMS suite offers a full range of clearing and transmission congestion management, an open and secure market trading infrastructure, integration of market settlement lifecycle operations, billing and meter data management, and management of outage scheduling and reporting for servicing assets. Generation Management Generation Management Systems (GMS) Network Manager: Energy Management System (EMS) Transmission Analysis and Control Description: The GMS suite offers a full range of SCADA functions, while incorporating applications such as generation optimization . Transmission Network Management Generation Analysis and Control

Description: Ventyxs EMS offers the full range of traditional SCADA functions while incorporating an Operator Training Simulator to improve operator decision-making and prepare for emergency conditions, efciency and security tools; wide area measurement (WAM) to enhance transmission planning models; and a data historian for historical analysis, report creation, and critical data archiving. Distribution Automation Network Manager: Distribution Management System (DMS) Distribution Management System Suite

Description: Integrates existing SCADA and distribution SCADA data to create an accurate load ow model of the actual conditions on the grid. Additional integration with Ventyx or existing OMS creates a single platform to reduce time to restoration. Advanced load ow modeling can further be utilized by advanced smart grid applications such as Volt/VAR optimization (VVO) and fault location, isolation, and service restoration (FLISR). Distribution Automation Network Manager: Outage Management System (OMS) Outage Management System

Description: Coordinates outage management efforts, including fault location information from distribution SCADA; notication of automated fault restoration services provided by fault location, isolation, and service restoration applications; automated call systems; and customer communications. Distribution Automation Asset Management Network Manager: SCADA Ventyx EAM SCADA Enterprise Asset Maintenance Description: Provides a strong data acquisition platform with asset control capabilities. Description: Ventyx EAM utilizes various enterprise data streams to improve asset utilization, reduce operating costs, and reduce operational risk. Asset Management Asset Management Service Suite Ventyx ERP Workforce Management Enterprise Resource Planning Description: Allocates workforce to maintenance tasks and warehouses human resources information including skills and scheduling. Description: Ventyx functionality allows for cost management, cost of ownership calculation, project capitalization, and reporting and compliance support. Asset Management Asset Health Conditions-Based Maintenance and Asset Lifecycle Management

Description: Focal Point-based Asset Health Center provides visibility into critical assets for the improvement of situational awareness and condition-based maintenance. Business Intelligence and Analytics Focal Point Business intelligence Description: Historical and real-time analytics platform for business process performance analysis to identify areas for productivity and efciency gains Demand Response Demand Response Management System Demand Response Management Description: Ventyxs Demand Response Management System (DRMS) provides utilities with the tools to connect demand response to market management software for interaction with regional ISOs, manage customer participation, geographically target demand response events, and provide reports on event effectiveness. The commercial package also provides power and storage optimization, emissions and renewable calculations, demand response simulation, and post-event analysis.
*Control center systems can no longer be viewed in complete isolation, as the integration of clusters of applications can improve efficiency and enhance the value generated from these software suites. The combination of these programs can create

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SMART GRID INFRASTRUCTURE HANDBOOK

an advanced system rather than a point solution. One such example includes the combination of SCADA/DMS/OMS, mobile workforce management, asset management, and business intelligence to reduce restoration times through improved modeling and fault location, optimize maintenance staff routing, improve sourcing time, and provide the tools to analyze results and execute process improvement (see Figure 2-8). Source: GTM Research

2.1.3Deployments Utility: New York Independent System Operator Type: Market Management Solution Details: Ventyx market management system at the New York ISO integrates fast-start generation commitment, look-ahead dispatch price signals, emergency operations, and real-time price mitigation, while coordinating limited integration of load and storage assets.

Utility: Detroit Edison (DTE) Type: Network Manager SCADA/EMS/DMS Details: Ventyx and ABB are currently working with Detroit Edison to integrate DMS functionality in its existing ABB SCADA/EMS system. The nal DMS will be networked to 11 substations, providing unbalanced load ow state estimation with enhanced fault location and fault location isolation and service restoration enabled. These technologies will reduce workforce response times to fault conditions, while allowing for remote restoration services to improve upon system reliability. Volt/VAR optimization will also be enabled with the integration of the DMS system for improved power quality and reduced losses. In concert with the DMS, DTE is deploying automated switches, reclosers, and various other intelligent end devices.

Utility: Baltimore Gas and Electric (BGE) Type: Demand Response Management System Details: BGE sought to utilize demand response to help reach the state government of Marylands goal to decrease energy demand by 15% per capita by 2015. Implementation of Ventyxs Demand Response Management System (DRMS) netted an 18% reduction in use during peak hours and a 300% increase in demand response capability, as well has helping to avoid $545 million in new generation capacity costs over seven years. The DRMS coordinated customer enrollment and signals; calculated the reduction in power used and the number of overrides; and allowed for the creation of up to a seven-day demand forecast. The ability to target demand response at the feeder level to reduce stress on local assets, including overloaded feeders, will improve location-based reliability. Integration of daily backcasts and settlement features with the PJM market allow BGE to automate settlement processes with its Independent Service Operator.

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SMART GRID INFRASTRUCTURE HANDBOOK

Utility: Xcel Energy Type: Intelligent Asset Management Details: Ventyx implemented its Asset Suite to improve asset health, scheduling of work crews, and maintenance supply chains timeliness. The software suite centralized a variety of disparate systems into a business intelligence suite. Introduction of the asset management suite reduced maintenance and inspection efforts by 17%, lowered scheduling efforts by 87%, and improved construction crew productivity by 47%.

2.2 Transmission The management of the electrical transmission grid is becoming increasingly complex, as some states have deregulated electrical grids separating generation, transmission, and distribution. The creation and operation of Independent Service Operators (ISOs) have made the location of power production more varied, and with it put new strains on the transmission grid to more exibly control power. Coupled with increasingly higher volumes of load and variable renewable power, more intelligent management equipment and analytics will be required to safely transmit power from generator to distributor. Renewable portfolio standards are placing additional pressure on utilities to install additional transmission lines to connect renewables that are often located far from population centers. The interconnection of these systems is best suited to HVDC transmission lines that have lower line losses over long distances and harmonize electrical output from a various distributed generators such as at large wind farms or solar installations. Transmission line transfer capacity is a primary concern of transmission grid operators. The amount of power that can be moved across a transmission line is constrained by voltage transient stability limits, thermal limits, or voltage regulation limits. The more common constraint is reaching the transient stability limit, which can be relaxed by Flexible AC Transmission Systems (FACTS) such as static VAR compensators. Combinations of high-voltage direct current (HVDC) transmission systems and power-electronics-based FACTS technologies improve grid capacity and efficiency. The integration of synchrophasor technology promises improved notication, automated response, and event reporting. Integration into a larger enterprise-level EMS architecture can further increase centralized control capabilities, while providing a real-time view of the conditions on the transmission grid.

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2.2.1Taxonomy

Figure 2-3: Transmission Taxonomy

TRANSMISSION TAXONOMY GIS Ventyx ENTERPRISE ASSET MANAGEMENT Ventyx Digital Globe ENTERPRISE RESOURCE PLANNING Ventyx Ventyx ESRI MOBILE WORKFORCE MANAGEMENT BUSINESS INTELLIGENCE SUITE

PROCESS IMPROVEMENT ANALYTICS OVERLAY

ENHANCED IT APPLICATIONS

EMS
Data Historian Ventyx SCADA Ventyx ABB Fiber ABB PHASOR DATA CONCENTRATOR ABB HIGH VOLTAGE DC Above Ground Underground ABB ABB ABB SYNCHROPHASOR ABB FLEXIBLE AC TRANSMISSION SYSTEMS Static VAR Compensator ABB Static Synchronous Condensor ABB ABB ABB Series Capacitors ABB Microwave Ethernet Power Line Communications Cellular Satellite Voice ABB Ventyx Ventyx Data Visualization Training Simulator Wide Area Management System Ventyx

MANAGEMENT + OPTIMIZATION

CONTROL

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UTILITY COMMUNICATIONS

SYNCHROPHASOR MONITORING EQUIPMENT

PHYSICAL EQUIPMENT

PHYSICAL INFRASTRUCTURE LAYER

SMART GRID INFRASTRUCTURE HANDBOOK

TRANSMISSION

SUBSTATION

13

Source: GTM Research

SMART GRID INFRASTRUCTURE HANDBOOK

2.2.2Solutions
Figure 2-4: Transmission Solutions

SMART GRID TRANSMISSION SOLUTIONS

Product Name Network Manager SCADA/EMS Product Category Transmission SCADA and State Estimation

Description: Ventyxs EMS offers the full range of traditional SCADA functions while incorporating an Operator Training Simulator to improve operator decision-making and preparation for emergency conditions, efciency and security tools; wide area measurement (WAM) to enhance transmission planning models; and a data historian for historical analysis, report creation, and critical data archiving. High Voltage Direct Current (HVDC) Transmission Lines Power Electronics Description: ABB HVDC transmission transmits high volumes of power at up to 800 kV from point to point over overhead or underground (HVDC Light) lines over long distances with limited losses compared to HVAC lines. HVDC is ideal for bringing power from remote sites to population centers. These installations require setting up conversion stations at both ends of the DC line to interconnect the lines to traditional AC transmission grids. These systems are often accompanied by FACTS devices to improve system stability and increase carrying capacity. STATCOM Flexible AC Transmission System Description: STATCOMs are autonomous FACTS devices that mitigate transient instabilities as well as harmonics by dynamically adjusting the injection of inductive or capacitive reactive power utilizing voltage source conversion technology up to eight times per cycle. The high cost of these devices versus other FACTS devices have relegated them most commonly to mitigating harmonics at sensitive customer premises such as foundries with arc furnaces. These devices can incorporate blocking or shunt harmonic lters. Leveraging synchrophasor data can enhance the performance of FACTS devices. Static VAR Compensators (SVCs) Flexible AC Transmission System Description: SVCs are autonomous FACTS devices for transmission substations that smooth voltage proles and increase transfer capacity by increasing the transient stability limit through sub-cycle adjustment and compensation capabilities. SVCs dynamically adjust the injection of inductive or capacitive reactive power using thyristor technology up to two times per cycle per phase. Leveraging synchrophasor data can enhance the performance of FACTS devices. Wide Area Measurement Systems (WAMS) Synchrophasor Integration

Description: WAMS systems collect and display sub-cycle phasor measurement unit data to provide real-time situational awareness of the conditions on an electrical grid. This system is a modular add-on to the Ventyx Network Manager SCADA/ EMS to provide enhanced awareness of system conditions and eventually improve centralized and distributed decision-making to identify and isolate the spread of cascading transmission failures.
Source: GTM Research

2.2.3Deployments Project: Competitive Retail Energy Zones (CREZ) Program Utility: Electric Transmission Texas LLC, Oncor Type: Flexible AC Transmission System Details: $45 million deployment of one static VAR compensator and two series compensators. These devices will enhance the safe carrying capacity of existing transmission lines while facilitating the safe use of additional wind generation from existing sites under the Competitive Retail Energy Zones program.

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Project: Mackinac HVDC Light Utility: American Transmission Company Type: Flexible AC Transmission System Details: The Mackinac transmission line will connect the Upper and Lower Peninsulas of Michigan, delivering dynamic voltage support and increasing grid reliability, while allowing for the addition of more wind generation to the bulk power system. The HVDC installation will have a converter station on either side of the Straits of Mackinac. ABB will also design, supply, and install a 200 MW back-to-back HVDC Light station that will allow the system to continue to function as a static synchronous compensator or STATCOM regulating device if one of the converters is non-functional. The line will be complete in mid-2014.

Project: Competitive Retail Energy Zones (CREZ) Program Utility: Electric Transmission Texas LLC, AEP Texas Type: Flexible AC Transmission System Details: $50 million deployment of four static VAR compensators to help integrate up to 18 gigawatts of renewable energy. ABB will provide design, supply, installation and commission of FACTS devices. The devices will enhance capacity and transmission system flexibility, and help to integrate large remote wind generation facilities into the transmission grid. The project is part of the Competitive Retail Energy Zones Program and is set for completion in Q1 2013.

2.3 Substation Automation Improved monitoring and control equipment, communications technology, and control center applications are redening and optimizing the substation. Enhanced monitoring and control equipment is allowing utilities to record and act upon vital conditions data about some of their most expensive assets, including transformers and circuit breakers. The continued expansion of transformer monitors, digital relays, revenue-grade meters, and various sensors are providing utilities with a wealth of once-unattainable data and capabilities. The intelligent substation simplies much of the installation work that traditionally entered into the construction, rewiring, or upgrading of various remote-controllable intelligent devices. Traditional substations utilized miles of copper wire to hundreds of direct connections between grid protection, control, monitoring, and physical equipment. Improved networking and integration tools have allowed these connections to be made to a substation information bus that can connect these devices with far fewer ber, coaxial, or serial wires. Intelligent substation devices produce and transmit far more information than their predecessors to grid operators, allowing for increased data about conditions at the substation and the effect of various utility actions. Control center applications such as intelligent asset management and business intelligence software suites are providing utilities with enhanced processing power to analyze waves of data from the substation to create actionable intelligence about the effects of various grid conditions and actions through advanced analytics.

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2.3.1Taxonomy

Figure 2-5: Substation Automation Taxonomy

SUBSTATION AUTOMATION TAXONOMY ASSET HEALTH Ventyx Ventyx Ventyx SCADA Ventyx ABB Fiber IEC 61850 ABB Transformer Monitor ABB SUBSTATION TRANSFORMERS HV Transformer ABB ABB ABB Elster ABB ABB ABB Breaker monitor Revenue Grade Meter Voltage Transformer Current Transformer MV Transformer ABB Temperature Sensor ABB Gas Analyzer ABB ABB Coaxial Cable Serial STANDARDS DNP 3.0 ABB ENTERPRISE RESOURCE PLANNING Ventyx ENTERPRISE ASSET MANAGEMENT MOBILE WORKFORCE MANAGEMENT

ENHANCED IT APPLICATIONS

STATION CONTROLLER/PLC/RTU

CONTROL

COMMUNCATIONS

TRANSFORMATION

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MONITORING

FLEXIBLE AC TRANSMISSION SYSTEMS Static VAR Compensator ABB Static Synchronous Condensor ABB TRADITIONAL EQUIPMENT Load Tap Changers ABB Reinhausen Solid-State Relays ABB Gas-Insulated Switchgear ABB Air-Insulated Switchgear ABB Substation Voltage Regulators ABB Intelligent Electronic Controllers ABB Circuit Breakers ABB Substation Capacitor Banks ABB Series Capacitor ABB

VOLT/VAR CONTROL

PROTECTION

SMART GRID INFRASTRUCTURE HANDBOOK

PHYSICAL INFRASTRUCTURE LAYER SUBSTATION TO DISTRIBUTION

16

TO TRANSMISSION

Source: GTM Research

SMART GRID INFRASTRUCTURE HANDBOOK

2.3.2Solutions
Figure 2-6: Substation Automation Solutions

SUBSTATION AUTOMATION SOLUTIONS

Solution MicroSCADA Pro and RTU 560 Category Substation Scale SCADA

Description: MicroSCADA Pro is a scalable communications gateway with an integrated control human-machine interface, monitoring capabilities, and the ability to act as a communications server for other gateways and RTUs. MicroSCADA can also perform power quality monitoring, as well as disturbance analysis. The RTU 560 is a smaller-footprint, scalable communications gateway for use in smaller substations with fewer IEDs. Data Concentration and Aggregation Station Controller and Communication Description: ABBs Communications Gateway COM 600 maps signals between substation protections and control devices, including monitoring information from IEDs and coordination and command signals from a Network or Distributed Control Center. Relion Product Family Intelligent Electronic Devices (IED) Description: The Relion product family spans transmission and distribution substations, providing protection, control, measurement, and supervision of power systems and devices such as transformers, breakers, busbars, solid state relays, sensors, and feeder protection and control. On-Line Transformer Monitoring Asset Health Description: Coupling ABB transformer monitors with an Optima or EasyLine ABB gas analyzer creates the information to feed ABB On-Line Monitoring. The integration of the Ventyx EAM software suite creates a robust transformer health program that identies dangerous conditions via operational data, utilizing manufacturer performance models, and schedules and optimizes asset maintenance and/or shut-down, while allowing an Ventyx ERP to coordinate replacement parts orders and account for the work. IED and Protection Scheme Integration Protection and Control Description: ABB offers integration services for IEDs which, coupled with secure low-latency communications, localized control, and networking, signicantly increase reliability. Standard and Protocol Support Standards Description: ABB was an early backer of the IEC 61850 standard, but ABB can also utilize DNP 3.0, UDP, and other TCP/IP communications architectures.
Source: GTM Research

2.3.3Deployments Company: Utility in the Northeast Type: Substation Controller/PLC/RTU Details: Complete system engineering, procurement, manufacturing, and commissioning of ABB RTU 560 substation controllers (RTUs) for 40 transmission substations. This project added Ethernet switches and frame relays to connect substations devices via DNP 3.0 to an ABB RTU, all controlled through a Micro SCADA HMI. This project will be complete by the end of 2012.

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SMART GRID INFRASTRUCTURE HANDBOOK

Company: Industrial Substation in the South Type: AIS and GIS Substations Details: Complete system engineering, procurement, manufacturing, and commissioning of air-insulated and gas insulated generation and switching stations with step up and step down transformers for transmission and local load. The rst substation involved the integration of the Micro SCADA platform that controls ABB relays within transformer and differential panels, a bus control panel, and a bay control panel, with a RTU 560 station controller. The second station integrated the Micro SCADA platform with a collection of relays and panels for managing transmission lines and bay control, a differential panel, and bus protection. Both stations utilize RuggedCom Ethernet switches. Both substations were completed in early 2009.

Company: Industrial Substation in the Midwest Type: Industrial IEC 61850 Substation Implementation Details: Complete system engineering, procurement, manufacturing, and commissioning of 115/13.8kV air-insulated switchgear station. The station includes 480V switchgear and motor control center integration. The substation utilizes a station HMI PC running on the MicroSCADA platform with a RTU 560 substation controller capable of DNP 3.0 communications to the distribution operator and IEC 61850 communications locally with gateway functionality to communicate with IEDs for transformer protection and control, medium voltage switchgear, and Modbus IEDs. The substation uses ABB Ethernet switches and was completed during the rst half of 2012.

2.4 Distribution Automation The distribution grid represents a challenge of scale not encountered when dealing with transmission-scale monitoring. The distribution grid has tens of thousands of substations that distribute power to hundreds of thousands of circuits and more than 140 million end-use customers. Efforts to increase eld monitoring in the 1980s and 1990s connected many substations back to control centers using early supervisory control and data acquisition (SCADA) technology. Until recently, devices outside the substation were left to operate based on local measurements of voltage or loading. Recent advancements and falling costs in wide area communications, networking, and local intelligence are enabling utilities to install and connect intelligent electronic devices to equipment on the lines, allowing for enhanced monitoring and coordination of grid asset actions to provide utilities with an understanding of the actual conditions outside the substation and to improve grid efficiency and reliability. Monitoring and reliability technologies, including automated switching, gradients of Volt/VAR optimization (VVO), and intelligent asset management, currently characterize the broad category of distribution automation with a fourth set of technologies beginning to emerge to deal with high penetration of disruptive distributed variable generation, energy storage, and electric vehicles. Monitoring and reliability technologies incorporate advanced outage sensors such as remote

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fault circuit indicators and voltage monitors with networked automated switches, reclosers, and sectionalizers to pinpoint and mitigate the effects of a fault, increasing reliability by reducing outage time. VVO technology has advanced to allow for closed loop operation of optimization analytics and integration of a dynamic network model to coordinate and optimize the operation of load tap changers, capacitor banks, and voltage regulators to reduce losses and demand. VVO systems improve grid efficiency, which in turn reduces fuel costs, decreases the utilitys carbon footprint, shaves peak load on certain feeders and can decrease the need for the construction of new generation capacity. Intelligent asset management technologies utilize sensors and monitoring equipment along with analytical processing to determine asset lifetime and wear, prioritize maintenance, and manage maintenance truck rolls. Power electronics and community energy storage offer future solutions to the integration of variable generation and electric vehicles.

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2.4.1Taxonomy

Figure 2-7: Distribution Automation Taxonomy

DISTRIBUTION AUTOMATION
Business Intelligence Ventyx Enterprise Asset Management ABB Ventyx Enterprise Resource Planning Ventyx Ventyx DMS Digital Globe Ventyx ESRI ABB SCADA Ventyx Control Center Volt/ VAR Optimization ABB Reinhausen Ventyx Load Tap Changer Controller ABB Control Center Load Balancing ABB Reclosers ABB Automated Switches Ventyx Ventyx ABB Sectionalizers ABB ABB ABB Controllers Fault Current Indicators ABB Line Voltage Regulator ABB Station Contoller/ PLC/RTU Load Tap Changer Line Capacitor Bank ABB ABB Field Area Communications Tropos (An ABB Company) Trilliant Capacitor Bank Controller ABB Voltage Regulator Controller Voltage/Line Monitors Advanced Inverters ABB* Storage w/ Ancillary Services Ventyx Substation FLISR Distributed FLISR ABB OMS GIS Substation VVO Distributed VVO Pole-Top Transformer ABB Mobile Workforce Management Pad-Mount Transformer Transformer Monitors ABB Sensors ABB

PROCESS IMPROVEMENT & ANALYTICS OVERLAY

INTELLIGENT ASSET MANAGEMENT

MODELING INTELLIGENCE LAYERS

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ABB ABB

COMMUNICATIONS + CONTROL

VOLT/VAR CONTROL

Control Center FLISR

AUTOMATED LINE SWITCHING

SMART GRID INFRASTRUCTURE HANDBOOK

PHYSICAL INFRASTRUCTURE LAYER

20
Note: *Not approved by UL for use in United States

Source: GTM Research

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2.4.2Solutions
Figure 2-8: Distribution Automation Products

DISTRIBUTION AUTOMATION PRODUCTS

Solution Network Manager: Distribution Management System (DMS) Category Distribution Management System

Description: Integrates existing SCADA and distribution SCADA data to create an accurate load ow model of the actual conditions on the grid. Additional integration with Ventyx or existing OMS creates a single platform to reduce time to restoration. Advanced load ow modeling can further be utilized by other add-on applications to enable smart grid applications such as Volt/ VAR optimization and fault location, isolation, and service restoration. Advanced Outage Management Outage Management Description: Utilizes an integrated approach to outage management that connects network manager outage management systems (OMS) with some combination of geographic information systems (GIS); Network Manager Distribution Management Systems (DMS); fault location, isolation and service restoration applications (FLISR); and mobile workforce management (MWFM) systems to coordinate immediate restoration with customer information systems to allow for improved customer communication and estimation of restoration time. Coupling traditional or new OMS with connections to operational systems such as DMS, MWFM, and GIS improves outage response time, reduces truck rolls and miles driven, and helps set customer expectations. The further integration of a Focal Point business intelligence software suite allows a utility to monitor, benchmark, and analyze the outage response process to improve operational efciency. Model-Based Volt/VAR Optimization Control Center Volt/VAR Control Description: Mode-based Volt/VAR optimization (VVO) utilizes a GIS connectivity model with the Network Manager DMS dynamic feeder modeling that takes into account SCADA status changes to provide an as-operated view of the distribution feeder. Using advanced mathematical algorithms, this VVO then optimizes line capacitor banks, line voltage regulator taps, and load tap changer taps to accomplish a predened utility goal to limit losses or promote conservation. Demand reductions from VVO installations can vary, but they typically reduce feeder loading by 2%-4%. Volt/VAR Management System (VVMS) Substation Volt/VAR Control Description: Substation VVMS utilizes end-of-line voltage measurements as well as feeder conguration information from station controllers to adjust load tap changer tap positions, line capacitor bank activation, and line voltage regulator tap positions in order to reduce line losses and optimize feeder voltage and reactive power according to utility preferences. Similar to ABBs modelbased approach, VVMS can support conservation voltage reduction, which can typically reduce demand on a feeder by 2%-4% without impacting customers. DMS-based Fault Location, Isolation, and Service Restoration (FLISR) Control Center FLISR

Description: DMS-based FLISR utilizes a Network Manager DMS dynamic feeder modeling coupled with SCADA data from eld intelligent electronic devices including controls on reclosers, automated switching, sectionalizers, fault current indicators, line monitors, and sensors to determine fault location. The application then determines more effective isolation schemes that restore power to customers outside of the immediate faulted circuit within seconds or minutes using reclosers, automated switches, and sectionalizers. Utilities can either have the system then automatically implement the switch orders via the DMS and SCADA systems or require operator approval. Deployment with an OMS and mobile workforce management can result in complementary efciencies from improved customer communications and more efcient eld restoration services. Substation Fault Location, Isolation, and Service Restoration (FLISR) Substation FLISR

Description: ABBs Substation FLISR utilizes algorithms located in a COM600-decentralized controller and eld data from intelligent electronic devices to determine the location of the fault. The system then organizes switching orders to restore customers not immediately within the faulted portion of feeder, using controllers on reclosers, automated switches, and sectionalizers to carry out the order. Tropos GridCom 2.0 Wide Area Communications Wireless Wi-Fi, point to point, WiMAX, or mesh communications and networking hardware and network management tools to enable wide area low-latency, high-bandwidth communications Focal Point and Ventyx EAM Asset Health Description: Ventyxs FocalPoint suite utilizes ABBs asset performance models coupled with operational data to analyze asset health and projected lifespan and suggest proactive maintenance strategies to increase asset utilization, reduce operating costs, and reduce operational risk. The Service Suite mobile workforce management module improves maintenance efciency by reducing truck rolls, optimizing maintenance scheduling, and improving labor allocation. Ventyx ERP functionality allows for cost management, cost of ownership calculation, project capitalization, and reporting and compliance support.

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2.4.3Deployments Utility: CenterPoint Energy Type: Enterprise Architecture, Automation, and Automated Switching Details: CenterPoint and ABB are currently in the process of installing a full Ventyx automation platform, starting with a 15% scale pilot and eventually expanding automation to 100% of the CenterPoint service territory. The project will link reclosers, 571 automated switches, capacitor banks, voltage regulators, and maintenance crews to a centralized SCADA/DMS/OMS system with integrated FocalPoint Business Intelligence and Ventyx mobile workforce management modules.

Utility: CPS Energy Type: Long-Term Control Center Operation Improvement Details: ABB has been working with CPS for seven years to improve many utility operations. CPS past projects include implementing an integrated SCADA/GIS/OMS/DMS. Current projects include pilots of centralized VVO and automated restoration.

Utility: Oklahoma Gas and Electric (OGE) Type: DMS Integration and VVO installation Details: OGE is installing a new ABB SCADA/OMS/DMS with advanced FLISR and model-based VVO applications. The VVO deployment is one of the largest announced in the United States to date with a projected 400 feeders connected at completion to enable the reduction of 75 MW of load during peak time. Coupled with an aggressive demand response initiative, cancellation of wholesale contracts, load curtailment, and energy efficiency programs, OGE expects to defer spending on additional generation assets by six years.

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SMART GRID INFRASTRUCTURE HANDBOOK

3 ABB/VENTYX COMPANY ECOSYSTEM

ABB is a market leader in power and automation technologies that enable utility and industrial customers to optimize operational performance. ABB has developed one of the 3.1 ABB
Ownership: Public ABB Year Founded: 1988 ABB Headquarters: Zurich, Switzerland (global), Cary, NC (North American) Number of Employees: 145,000 Revenue: $37.99 billion (2011) Notable Projects: NY-ISO, CPS Energy, CenterPoint Energy, ONCOR, and Detroit Edison CEO: Joseph Hogan Website: www.abb.com/smartgrids Primary Competitors: Alstom Grid, GE, Schneider Electric, Siemens

broadest product portfolios in the industry, as well as a strong partner network. ABB has committed to becoming a market leader, increasing research and development in each of the last six years, spending more than $10 billion over the last decade to develop more reliable grid infrastructure products. ABB undertook a signicant strategic shift by acquiring utility industry software provider Ventyx in 2010. This four-year-old product of a merger between Indus and MDSI was a market leader in utility software with a strong enterprise software product portfolio. This purchase, although smaller than recent acquisitions of Baldor (2011) and Thomas and Betts (2012), at $1 billion, represented a shift to a wider smart grid development strategy and a focus on long-term customer needs (see 3.2 for more information). ABB is working to expand its role in emerging grid technologies. The acquisition of Tropos provided ABB with a strong technology portfolio for low-latency, high- bandwidth wide area communications. The purchase of EV fast-charging rm Epyon and equity investments in EV charging infrastructure rm ECOtality, cyber security provider and partner Industrial Defender, and smart grid wide-area communications and AMI provider Trilliant have further widened the ABB smart grid portfolio.

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SMART GRID INFRASTRUCTURE HANDBOOK

Ventyx is a market leader in utility enterprise systems with a strong portfolio of operational and information technologies. Since its purchase by ABB in 2010, ABB has integrated its native network 3.2 Ventyx
Ownership: Public Subsidiary of ABB Year Established: 1997 Ventyx Headquarters: Atlanta, GA Number of Employees: 2,600 Notable Projects: CenterPoint Energy, CPS Energy, Oklahoma Gas and Electric, and Xcel Energy CEO: Jeff Ray Website: www.ventyx.com/ smartgrid Primary Competitors: Alstom Grid, GE, IBM, SAP, Telvent, and Siemens

manager platform along with its other legacy utility software under the Ventyx subsidiary and placed Ventyx within the Power Systems Group. Acquisitions of Insert Key Solutions (2010), Obvient Strategies (2011), and Mincom (2011) enhanced Ventyxs equipment reliability, process improvement, and operational performance software; added the Focal Point business intelligence software suite; and added the asset-intensive Ellipse enterprise asset management suite. With a strong portfolio and mindshare in the domains of both operational (DMS, EMS, SCADA, etc.) and information technology systems (ERP, CIS, EAM, etc.), the combined Ventyx has focused its efforts on leveraging its equipment and software expertise to create open utility systems that can gain insight and achieve efficiencies through IT-OT convergence. Ventyx continues to focus its research and development efforts on improving both control and asset management. Last year Ventyx commercially released model-based volt/VAR optimization through its Network Manager DMS-line. While its ve year plan for the development of an asset health suite that utilizes current grid conditions, equipment specic aging and stress expertise, and the ability to suggest life and revenue improving grid adjustments remains the most ambitious public roadmap of any of the grid giants.

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3.3 Partnerships and Capabilities ABB has a strong partnership network that offers products and services that enable ABB products, require less integration work, or ll out a product gap within the ABB portfolio. At the control-center level, Ventyx partners with a variety of rms to ensure strong, interoperable interfaces among systems. For mapping requirements, including GIS and workforce management, Ventyx has existing partnerships with ESRI, Digital Globe, and TomToms Tele Atlas. An existing partnership with Landis+Gyr has resulted in strong interfaces with Landis+Gyr meter data management systems for data sharing. In the communications space, positions in ber, PLC, and microwave technology at the transmission and substation levels, coupled with the recent acquisition of Tropos Networks, provide ABB with a strong portfolio of in-house communications. An investment in Trilliant has created a natural partnership that coupled with work and interoperability testing with Elsters EnergyAxis platform, Sensus, Silver Spring, Landis+Gyr, GE, FreeWave, and Cisco, providing ABB with relationships with a variety of eld area network providers. ABB has also worked to ensure that its eld equipment products, as well as Ventyx control center systems, continue to be secure. Outside of ABBs internal work, it has partnered with cyber security and compliance provider Industrial Defender, as well as cloud and virtualization specialist VMware. 3.4 Analysts Note ABB has one of the widest product portfolios in the industry. ABB continues to focus its acquisitions on improving geographic access, lling technological gaps, and adding related verticals. The acquisition of Ventyx and subsequent integration of Insert Key, Obvient, and Mincom have given ABB one of the most comprehensive software suites in the smart grid market with products spanning virtually all market management, T&D operations, and information technology systems. Integration and consolidation of various redundant software solutions under the Ventyx brand is largely complete, as targeted efforts are still underway to realize Ventyxs vision of advanced asset management, business analytics, distribution automation, and workforce management. ABBs championing of IT/OT integration puts them at the forefront of the effort to realize value from information exchange between traditional utility silos. Expertise with both hardware and software puts Ventyx into a prime position to promote and deliver holistic solutions that avoid costly integration efforts and allow utilities to realize the full value of their deployments. ABB is experiencing strong growth in relation to its peers with a compound annual growth rate of 10.2% over the last 5 years. The recent acquisition of Thomas and Betts makes North America the focal point of ABBs operation as it surpasses the EU region in revenue. A strong business foundation, growth prospects, and a rm commitment to smart grid innovation will continue to provide ABB with the opportunity to be a market leader in smart grid technology through internal research and development, as well as external acquisition.

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