With the increasing influx of renewable energy and the existence of a large number of suppliers and contractors across diverse locations, power utilities are turning to advanced technologies to increase their efficiency and optimise operations. Among these, machine-to-machine (M2M) technology and cloud computing are gaining increasing traction across the sector. Moreover, with the emergence of smart grid technologies and the concept of “prosumers”, the power sector is witnessing a paradigm shift in terms of automation and real-time monitoring of the grid.

M2M technology enables communication between multiple devices in the power value chain, ranging from  transformers to the grid, thus generating a large amount of data for utilities to store and analyse. For the efficient utilisation of this data, the role of cloud computing becomes crucial. Cloud computing refers to storing and accessing data and programmes on remote servers hosted on the internet instead of on the hard drive of a personal computer. Cloud computing services include the delivery of on-demand computing resources, applications and data centres over the internet on a pay-per-use basis.

Meanwhile, smart grid technology involves the exchange and transfer of a huge quantum of data, thereby necessitating two-way data communication across the entire power value chain. A robust and dynamic communication system is, therefore, vital for efficient monitoring, control and operation of the smart grid-enabled power system. A well-connected communication system helps utilities access real-time data and take action in a timely manner, thereby improving the safety and reliability of the grid. In order to meet the increasing demand for electricity and better quality power, the existing grid needs to be equipped with advanced metering, distributed generation and energy storage devices, which require robust communication technologies.

Meeting communication requirements of power utilities

Power utilities can choose from a wide variety of communication options depending on their needs. These include power line carrier (PLC), wireless technologies, wireline technologies and optical fibre cables (OFC). All these supplement the transmission and distribution process by enhancing communication between the systems.

PLC is a traditional and reliable technology available to electric power utilities for establishing critical communication channels and protection signalling. In PLC, the radio frequency signals are transmitted through power transmission lines. This technology has an appreciably higher mechanical strength as compared to ordinary lines, which implies that it remains unaffected even in adverse conditions.

OFC, on the other hand, have high bandwidth that enables the transfer of huge quantum of data over long distances. Moreover, fibre optic transmission results in less attenuation compared to traditional copper wires. There are various types of OFCs – underground, aerial and optical ground wire (OPGW). OPGW is being used in the smart grid to provide both grounding capabilities for transmission lines and communications network to utility systems such as supervisory control and data acquisition (SCADA).

In wireless communication, microwave radio and VSAT (very small aperture terminal) technologies are deployed. In addition, several other communication technologies such as mesh network and general packet radio service can also be dep­loyed by utilities.

Leveraging cloud computing

Cloud computing provides significant cost savings by reducing the capex, as the resources are acquired when needed and are only paid for when used. Thus, companies do not need to install costly hardware and software packages. In addition, it offers greater scalability and reduces go-to-market time through rapid prototyping. The technology enables power utilities to ensure business continuity through its various disaster recovery models, and frees valuable personnel, allowing them to focus on delivering value. Further, platforms such as cloud-based customer relationship management and social media help discoms move closer to their customers.

Discoms have a high resource requirement for cloud computing for processes such as meter data management, billing and collection, consumer engagement and demand response, connection management, transformer health monitoring and outage management. Cloud computing allows discoms to monitor their performance and gain business insights through analytics in order to strengthen their network operations and manage customer services efficiently.

However, a major barrier to cloud migration in India is the limited broadband connectivity, particularly in remote areas. There are also multiple challenges related to data security. Data, which is hosted by a cloud provider, faces the risk of interception when it is in transit and the risk of corruption when in use. However, these risks can be offset through third-party authentication, strong identity and access management for automated provisioning and authorisation, and cryptographic encryption.

There also exists the risk of data theft or damage, as well as jurisdiction-related risks as the data is stored in multiple locations. While the physical location can be secured through biometric scans and area access management, compliance can be ensured by regular audits, comprehensive legal documentation and trust-based partnership.

Other areas of concern for utilities are the lack of direct control over the data and reliability of the cloud service provider. Further, once a firm enters into an agreement with a provider, it faces a “vendor lock-in” situation. To this end, the utilities need to enforce stringent contract management and comprehensive company evaluation guidelines.

The challenges notwithstanding, the outlook for cloud computing in India is very promising. As per a Gartner report for 2015, the public cloud spending in India is projected to increase from $618 million in 2014 to $2,000 million by 2018. The expected increase in investment can be attributed to the benefits offered by cloud computing services. Recently, a number of discoms have launched mobile applications for customer billing purposes using cloud-based solutions. Going forward, several utilities are expected to migrate to cloud computing based solutions to meeting their key business requirements.

The way forward

As utilities continue to embrace new technologies and invest in advanced communication systems, there are certain challenges that need to be dealt with. The biggest challenge is to identify a suitable technology for enhancing the communication system. This differs from utility to utility. Further, digitalisation of systems and embracing of cloud technologies have made networks vulnerable to cybercrime. This calls for incorporating cybersecurity plans in the current IT framework. Another issue is the short-lived nature of technologies, which necessitates their upgradation at regular intervals. Utilities need to address these issues at hand in order to make optimal use of the existing communication networks.

Based on a presentation by Rajesh Gupta, Superintending Engineer, MPPTCL, and Ravikant Yadav, Senior Consultant, Infosys, at a recent PowerLine conference