Lecture 12

IoT Case Studies – Smart Grid

Internet of Things
The slides are made by PNNL and NIST,
adapted by Tan Le

Instructor: Le Duy Tan, Ph.D.

Email: [email protected]
Overview of Smart Grid

Introduction
Problems on the electrical grid
Need for HPC on the electrical grid
Operations
Integration of renewables
Cyber security
Need for HPC at vision level
State estimation
Multithreaded platforms for contingency analysis
Looking forward
Transform the way the U.S. generates, transmits, distributes and uses electricity

Current U.S. electricity infrastructure is inadequate for national energy priorities in

the 21st century. Three main areas need to be addressed:
Capacity
Grid management (wide area, real-time)
Vulnerability, resiliency, reliability

The future state of the grid must be able to:

Substantially increase the integration of renewables
Reduce carbon emissions
Provide flexibility to enable electrification of transportation and reduce dependence on oil imports
(substitute electricity for oil)
Respond to increased demand

Reality: The current grid infrastructure/operation is limited

Currently manage/engage grid at sub-optimal (service territory) level; can’t efficiently move
electrons across large enough spaces
No ability to see performance across grid (lacks transparency)
Inability to integrate renewables; need storage, ability to offset, transmission across service
territories where generated, load/dispatch renewables
System communication has been one-directional: supply to demand
Fragmented authority, control, market, function, regulation

Need to build new functionality and infrastructure into the grid

Future grid must be transformed while maintaining reliability
and affordability (serving public good)
3
Transform the way the U.S. generates, transmits, distributes and uses electricity

Capacity:
Transmission infrastructure cannot meet future load growth and large-scale
renewable connectivity to grid
Utilities not incentivized to build physical infrastructure
Difficult to site & permit new transmission infrastructure
Renewable resource physically isolated from high grid transmission infrastructure

Grid Management:
Unable to manage grid at national, interconnect scale
Large scale models that allow examination and optimization of future national grid do not exist
Integrated wide area models (variable renewable generation, energy storage, distributed
generation, demand management) that describe real-time power flow and predict reliability do
not exist
Ability to see and understand the grid at interconnections scale are limited; wide area grid
performance is not accessible, transparent so can’t optimize supply and demand across limited
service areas
Transparent real-time monitoring and operation currently not in place
Large-scale wind generation introduces significant variability
Large scale electric energy storage capability is limited – pumped hydro, flywheels, electro-chemical
systems connected to and supporting the power grid

Vulnerability and Resiliency

Susceptible to cyber, other threats – can we prevent, respond to threats?
Resilient to catastrophic events – can we rapidly recover?

4
Power System Elements
Problems on the electrical grid

Inadequacy of current control center functions

Slow, not able to keep up with the change of the grid
Static, no dynamic information for real-time operations

Computational Issues with today’s grid operations

Real-time grid view: static
Not able to capture grid dynamics
Low computational efficiency: not keep up with system changing
No use of high-performance computing architectures
Problems on the electrical grid
The need for HPC on the electrical grid

Major HPC Architectures

Shared-memory architecture for extensive data sharing and un-uniform data
access
Distributed-memory architecture for less data sharing and uniform data access
Hybrid architecture - re-configurable architecture: e.g. FPGA + shared-memory
Performance of Parallel Algorithms/Programs
Speedup/Scalability
Reliability
The need for HPC on the electrical grid

Parallel Computing is essential

Only explicitly parallelized algorithms can take advantage of multi-core parallel
computers
Parallel Computing is “an art”
Parallelization approaches are problem-dependent
Computing implementation needs to consider “good match” of computing
architecture and the problems
Today’s Electrical Grid Operations Paradigm
Normal operations
• Asset underutilization
slow
static • Limited market opportunities
• Lead to emergency operations

Emergency operations
• Blackouts and cascading failures

SCADA Operator
~ seconds Violations
State Contingency
Estimation Analysis
~ minutes ~ minutes

Off-line Constrained
Transient/Voltage Market solutions
Stability Analysis Operation
~ hours
seasonal Ratings & Limits
Trends Impacting Control System Security

Open Protocols
Open industry standard protocols are replacing vendor-specific
proprietary communication protocols
General Purpose Computing Equipment and Software
Standardized computational platforms increasingly used to support
control system applications
Interconnected to Other Systems
Connections with enterprise networks
to obtain productivity improvements
and information sharing
Reliance on External Communications
Increasing use of public telecommunication
systems, the Internet, and wireless for control
system communications
Increased Capability of Field Equipment
“Smart” sensors and controls with enhanced
capability and functionality
The Emerging Cyber Threat

Industry has long history of planning for and coping with natural disasters
and other reliability events
Through industry standard operating procedures, there is much effort expended to
reduce likelihood of cascading outages leading to widespread blackouts
Historically, cyber security focused on countering unstructured
adversaries
e.g., individuals, untargeted malicious software, human error
Very little protection against structured adversaries intent on exploiting
vulnerabilities to maximize consequences
e.g., terrorist groups, organized crime, nation states
Insider threat remains very challenging, can be used as part of structured threat
vector
New possibilities for widespread sustained outages resulting from cyber
attack are now being contemplated
But industry still not ready to cope with this threat
The need for HPC: State Estimation

Power system State Estimation (PSE)

Given: power grid topological information, telemetry on line flows, bus injections
or bus voltages
Compute: a reliable estimate of the system state (bus voltages), validate model
structure and parameter values
Calculated using Weighted Least-Squares (WLS) method
WLS: minimize
Where r = z - h(x), and r is the residual vector, x is the system state, z is a vector of
measured quantities, h is a vector function, wi is the weight for residual ri and W is
as diagonal matrix.
This is a non-linear problem, which is solved using the Newton-Raphson iterative
procedure
The need for HPC: State Estimation

PSE
Every iteration of the method requires solving a large set of sparse linear
equations
Sparse matrices are derived from the topology of the power grid being
analyzed
The number of non-zeros per row varies greatly and the matrix is badly
conditioned
The set of linear equations can be solved using direct solvers such as
sparse LU factorization or iterative solvers such as sparse Conjugate
Gradient (CG)
PSE is a critical element of the software used by power grid
control centers
Under real-time constraints (< 10 seconds)
Commercial PSE solvers are not commonly parallel
Power System State Estimation

August 14, 2003

Situational Awareness?
Blackout

August 13, 2003

Normal

Do we know what really happened?

Could it be prevented?
Source: NOAA/DMSP
Model Validation Need and Challenges

Reality

Model

Recorded system dynamics vs. simulation results:

California and Oregon Intertie (COI) real power flow during
the August 10, 1996 event
The need for HPC: Multithreaded Platforms for Contingency Analysis

Growing class of scientific applications is becoming memory-bound

Many scientific applications exhibit irregular memory access patterns
CPU and memory technology trends indicate that the situation will not
improve anytime soon
Multithreaded architectures offer an appealing alternative for irregular
applications
Processors tolerate memory access latencies by switching execution context
between multiple hardware threads
Examples of such architectures are the Cray MTA-2 and XMT systems and the Sun
Niagara
Latency tolerance mechanisms should improve the performance of irregular, data-
intensive applications with abundant fine-grained parallelism
Role of Contingency Analysis

From “N-1” to “N-x”

To improve situational awareness

From Balancing Authorities to a Wide

Area
Example: 35 BAs in west
Further require “N-x” CA
To better understand cascading failures

N-x Contingency Analysis

Result in a large number of cases. “N-5” à
1020 cases for the west =~ 1020 seconds +
lots of data
Needs: better contingency selection and
post-processing
NIST Smart Grid Interoperability Framework 4.0

1
Review: Energy Independence and Security Act

NIST has “primary responsibility

to coordinate development of a
framework that includes
protocols and model standards for
information management to
achieve interoperability of smart
grid devices and systems…”

N I S T s m a r t g r i d p r o g r a m 2
Agenda
• Background on NIST Smart Grid Interoperability Framework
• Smart grid conceptual model
• Communications pathways scenarios
• CPS ontology for the grid
• Key Framework Messages
– Operations
– Economics
– Cybersecurity
– Testing & Certification
• Ways to be involved

N I S T s m a r t g r i d p r o g r a m 2
Review: Interoperability Frameworks to date

2010 2012 2014

N I S T s m a r t g r i d p r o g r a m 2
Review: Interoperability Frameworks to date

2010 2012 2014

N I S T s m a r t g r i d p r o g r a m 2
Motivations / Themes

Motivations Framework 4.0 Themes

• Technology is advancing rapidly • Structural changes are occurring in the grid

• System complexity is increasing

• Evolving capabilities bring: – Interoperability is a critical element of modern grid
– New opportunities function
– New concerns / challenges
– Structural change • No single architecture is correct
– Common trends
– Unique conditions
• Modular and scalable technologies enable:
– Disaggregation of system physics • Grid architectures affect:
– Hyper-local optimization – Operations
– A new set of cascading concerns – Economics
– Cybersecurity

• Distribution models diversifying

• As actors take on new roles within the system and
• Interoperability more critical than ever new economic forces emerge, interoperability
• Interoperability more challenging than ever gains new dimensions
– Testing & Certification

N I S T s m a r t g r i d p r o g r a m 24
 Conceptual Model
Smart Grid Conceptual Model
• Generation including DER
– Technology diversity
– Physical proximity to transmission,
distribution + customer domains
Operations
• Intelligent distribution system Service
Provider
– Increasing importance (location + size) Markets
– Improved controllability + intelligence
– Connected to service provider domain
(e.g., congestion mitigation)
Distribution
• Empowered consumers
– Operations & intelligence enters Transmission
Customer
customer domain
– Customer diversity incorporated

Secure Communication Flows

Electrical Flows
Generation including DER
Domain Source: DRAFT NIST Smart Grid Framework 4.0

N I S T s m a r t g r i d p r o g r a m 25
Generation Domain
Generation
Including DER

Geothermal
Operations Biomass Pumped Markets
Storage Storage

Nuclear

Hydro Coal

Wind
Gas

Customer

Solar
Service
Provider

Control Measure Protect Record

Source: DRAFT NIST Smart Grid Framework 4.0

Transmission
External Communication Flows Distribution
Internal Communication Flows
Electrical Flows
Domain

N I S T s m a r t g r i d p r o g r a m 26
Transmission Domain
Transmission

Operations
Markets

Storage

Distribution
Substation Sag

Substation

Control Measure Protect Record Stabilize Optimize

External Communication Flows

Internal Communication Flows
Source: DRAFT NIST Smart Grid Framework 4.0
Electrical Flows
Domain Generation including DER

N I S T s m a r t g r i d p r o g r a m 27
Distribution Domain
Distribution

Operations Markets
Fault
Circuit N.O. Switch
Indicator
Distributed
Storage Distributed
Generation
Transmission
Substation Sectionalizer

Service
Cap Provider
Bank
Reclosers & Relays

Control Measure Protect Record Stabilize Optimize

Generation including DER

Customer
Source: DRAFT NIST Smart Grid Framework 4.0
External Communication Flows
Internal Communication Flows
Electrical Flows
Domain

N I S T s m a r t g r i d p r o g r a m 28
Customer Domain
Customer
Service Thermal
Provider Storage
Building /
Commercial Building
Automation
Solar
Meter
Operations
Campus Distributed
Wind
Co-Generation
Building
Distribution Gateway
Multi-
Dwelling
Electric Automation
Vehicle
Solar Meter
Industrial
Generation Lighting

Markets
Thermostat

Home Sub-Metered
Processes
Automation
Meter
Generation including DER
Industrial
Gateway
Source: DRAFT NIST Smart Grid Framework 4.0
Appliances

External Communication Flows

Home
Internal Communication Flows
Gateway
Electrical Flows
(ESI)
Domain

N I S T s m a r t g r i d p r o g r a m 29
Markets Domain
Markets

Service
Operations Provider

Distribution Market
Management
Market Ops DER Aggregation

Customer

Transmission
Wholesaling
Retailing
Trading Ancillary Ops

Source: DRAFT NIST Smart Grid Framework 4.0

External Communication Flows

Internal Communication Flows
Electrical Flows
Domain
Generation including DER
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Operations Domain
Operations
Fault
Analysis Monitor Control

Markets
Load Control Reporting & Analysis
Statistics

Network Operations Service

Maintenance & Financial Supply Chain /
Construction Logistics
Provider

Extension
Planning Ops Planning Records &
Assets

Customer
Communications Security
Meter Reading Network Management
& Control

Transmission

Distribution
External Communication Flows
Internal Communication Flows Source: DRAFT NIST Smart Grid Framework 4.0
Electrical Flows
Domain

Generation including DER

N I S T s m a r t g r i d p r o g r a m 31
Service Provider Domain
Service Provider

Customer
Management Account
Management Emerging
Billing Services
Markets

Operations

Installation & Energy

Maintenance
Home
Management Customer
Management
Distribution Building
Management

Source: DRAFT NIST Smart Grid Framework 4.0

External Communication Flows

Internal Communication Flows
Electrical Flows
Domain
Generation including DER

N I S T s m a r t g r i d p r o g r a m 32
Legacy Communications Pathway Scenario
Markets Operations Service Providers
Retailer / RTO/ISO Transmission Distribution Ops Utility Third-Party
Wholesaler Ops Ops Provider Provider
DMS Asset
Mgmt CIS CIS
EMS EMS Retail
Aggregator Demand Energy
WAMS Response MDMS
Provider Billing
Billing

Energy Market Service Service Service Home / Building

Clearinghouse
Integration Integration Integration Manager

RTO Aggregator
Transmission Metering Distribution
ISO/RTO SCADA
SCADA System SCADA
Participant
Internet / Others
Internet / e-Business
e-Business

Customer
Market
Services Wide Area EMS
Field Area Energy
Interface Networks Services
Networks
Interface
Data
Collector Customer
Plant Control Equipment
System
Substation Substation Field Meter
Integration Controller Device Premises
Generators Networks
Distributed Electric
Appliances
Generation Substation Generation Storage
Device
Domain Electric
Storage Electric Electric
Network Storage Vehicle Thermostat
Roles and Actors Transmission Distributed
Gateway Role Generation
Comms Path Distribution Customer
Comms Path Changes Owner / Domain Distributed Energy Resources Source: N IST S m art G rid Fram ew ork 3.0, 2014

N I S T s m a r t g r i d p r o g r a m 33
 High-DER Communications Pathway Scenario
System Operations Utility Service Providers
G eneration Distribution Ops Ops Services Business Systems
& Trans Ops E nterprise
Customer
Advanced Distribution Management A sset Third-Party Info System
E nterprise
Energy
7 State System Resource
Management
Distributed SOutage
ystem
Estimation
Management
Modeling &
Service Providers Billing Planning
Energy Manage- Geographic
System and Grid Planning T ools S ystem
Management ment Optimization Inform ation A ggregated
Generation System Control
Management
Economic Demand Systems
System Workforce and Response
Automated Management
Generation Reliability Management
System Management System B usiness S ystem s
Control Gateway
DR Head 3rd Party Head-
End End System

Operational Enterprise Service Bus

Admin Enterprise Service Bus
Meter Data
Weather Management
Service Advanced Load Profile Advanced Load
System (MDMS)
Internet
Analytics Calculation Forecasting

Internet Gateway, Data

Energy
Market Translator, IP SCADA Source: DRAFT NIST Smart Grid Framework 4.0
Communications
C learinghouse Intelligent
Distribu ted Electronic
Ancillary Controll ers DLC Smart
Devices
Services & W A N / LA N A ppliances
Market DR
C learinghouse LA N /WA N D evices
A M I Telemetry
Capacity Generator Intelligent Network Building
Market C ontrol Electronic Advanced
VVO A utom ation C ustomer Systems
C learinghouse S ystem Devices Trans- S ensor s and C ontrol
formers System S ervice
Fault H om e A rea A ccount E m ail
Energy U tility Gateway Order
C ap B anks/
D ispatch
C ontrollers
Circuit M eter App Apps
App Legend
Indicators
A ncillary Bulk
Remote E nergy
Services G enerator
Switches
B illing
Audit
U sage Domain
D ispatch App Apps
Apps
Bulk
Substation
D istribution Sub Meter S m art HVAC Comm Network
Generator A utom ation T -stat D evices
Congestion O utage
Roles and Actors
M anagem ent Bulk Transmission Distribution
Apps
G enerator Co-
Generation
Gateway Role
Smart DR
Inverter Devices
Participating Participating Energy Comms Path
$ Load Generation D ER S torage DER
including
E lectric Comms Path Changes
Energy
M arkets
V ehicle Owner / Domain
Generation including D E R Storage Cu stom er

N I S T s m a r t g r i d p r o g r a m 34
Microgrid Communications Pathway Scenario
Energy A ncillary Services Capacity
Energy A ncillary Services Congestion
Market Market Market
Dispatch Dispatch M anagement
C learinghouse Clearinghouse C learinghouse Legend
Markets Domain
Comm Network

Operations Control Center Roles and Actors

Distribution Ops Gateway Role

M icrogrid
Master Advanced
Demand Response
DER Comms Path
Contoller Distribution M anagement Comms Path Changes
M anagement System
M anagement System System
Owner/Domain

Operational Controls
Microgrid
Master
Controller
Lighting Building Wind
A utomation PV C ontrol Fuel Cell Turbine Remote
Control
System System C ontroller Control Switch at
System Power
System Point of
Plant C onversion
PV C ontrol C ommon
Control System
System Coupling
System
Wind
HVAC Circuit PV System Fuel C ell Turbine Distribution or Transmission
System Panel Inverter Inverter Inverter
System
Battery
M anagement
Generator PV System System

Energy Wind
Storage PV System Fuel C ell Turbine
System
Battery
Generation including D E R
Energy Storage
Customer-Managed Microgrid System

Source: DRAFT NIST Smart Grid Framework 4.0 Generation including D E R

Utility-Managed Microgrid

N I S T s m a r t g r i d p r o g r a m 35
Hybrid Utility Communications Pathway Scenario
Centralized Systems
Operations Control Center ISO/RTO
Aggregator
Control Participant
S ystem s Transmission Distribution Ops
Building Ops Advanced Energy Retailer
A utomation Energy Distribution Demand Market
and C ontrol M anagement Management C learinghouse
Response
System System System Management Wholesaler
Reliability & DER System
Market Management
Markets
Home Energy
Management O ptimization System
System

Generator
Operational Enterprise Service Bus

Distributed Systems
Home C ommunicating
Controller Programmable Energy
Utility
Thermostat Microgrid Synchro- Storage
Energy
Master phasor
Storage Source: DRAFT NIST Smart Grid Framework 4.0
Controller
System Legend

O perational Communications Domain

Comm Network
HVAC Remote D istribution Roles and Actors
System Controllable Smart Smart Intelligent Phasor Electric
A utomation Vehicle
Appliance M eter Inverter Electronic M easurement DER Gateway Role
Device
Device Unit
Comms Path
Customer Transmission Generation Comms Path Changes
Distribution Owner/Domain
Edge Systems

N I S T s m a r t g r i d p r o g r a m 36
The CPS Framework—A Tool for the Smart Grid
Jargon surrounds the electrical grid:
• Intelligence moving to the edge
• Data tsunami
• Grid architecture
• Cloud / fog computing
• Smart grid
• Microgrid vs backup power

The cyber-physical systems (CPS)

framework provides a vocabulary of
energy sector semantics, or
ontology, through evaluation of CPS
framework aspects and concerns
N I S T s m a r t g r i d p r o g r a m 37
CPS Aspects and Concerns
• Functional • Human • Data
– Actuation – Human Factors – Data Semantics
– Communication – Usability – Relationship between Data
– Controllability
– Functionality • Trustworthiness • Boundaries
– Manageability – Privacy – Behavioral
– Measurability – Reliability – Networkability
– Monitorability – Resilience – Responsibility
– Performance – Safety
– Sensing – Security • Composition
– Adaptability
• Business • Timing – Complexity
– Enterprise – Synchronization – Constructivity
– Cost – Time Awareness – Discoverability
– Environment
– Policy • Lifecycle
– Quality – Deployability
– Regulatory – Disposability
– Time to Market – Engineerability
– Utility – Operability
N I S T s m a r t g r i d p r o g r a m 38
CPS Aspects and Concerns
• Functional • Human • Data
– Actuation – Human Factors – Data Semantics
– Communication – Usability – Relationship between Data
– Controllability
– Functionality • Trustworthiness • Boundaries
– Manageability – Privacy – Behavioral
– Measurability – Reliability – Networkability
– Monitorability – Resilience – Responsibility
– Performance – Safety
– Sensing – Security • Composition
– Adaptability
• Business • Timing – Complexity
– Enterprise – Synchronization – Constructivity
– Cost – Time Awareness – Discoverability
– Environment
– Policy • Lifecycle
– Quality INTELLIGENCE – Deployability
– Regulatory – Disposability
– Time to Market Note: Illustrative only – Engineerability
– Utility – Operability
N I S T s m a r t g r i d p r o g r a m 39
Description of CPS Concerns for the Smart Grid

N I S T s m a r t g r i d p r o g r a m 40
Framework Themes through pathway scenarios
• Scenarios affect what we think about grid
– Cybersecurity
– Operations
– Economics ENGAGEMENT OPPORTUNITIES
Registration info on later slides
• We can use the examples to explore
– Common trends July 9, 2018:
– Changing responsibilities Testing & Certification Workshop
– Unique considerations Washington, DC

• Scenarios help us understand value streams July 24, 2018:

– Who is the customer in a High-DER architecture? Communications Pathways & Ontology Workshop
– The role of interoperability in unlocking this value Gaithersburg, MD

• Testing & Certification growing importance August – October, 2018:

– Claimed conformance vs actual performance Regional operations & economics workshops
– Actuation and controllability in every device
– Diversified ownership, unified operation

• CPS ontology allows description and specification

N I S T s m a r t g r i d p r o g r a m 41
Operations Key Message: Migrating to domain edge
• Sensing, actuation and control
is moving towards the grid edge
– Common trend across all
scenarios
– Occurring in each domain
• Transmission edge: PMUs and IEDs
• Distribution edge: distribution
automation devices & smart inverters
• Customer edge: remote controllable
appliances
– Operational efficiencies can be Hybrid Utility Communications Pathways Scenario
gained through local management

N I S T s m a r t g r i d p r o g r a m 42
Operations Key Message: Shared infrastructure
• As DERs increase, shared infrastructure becomes more important

• Shared infrastructure increases need for predictability

– Physical predictability (e.g., IEEE 1547)
– Communications predictability (e.g., IEC 61850)
• Shared infrastructure has benefits, possible risks
N I S T s m a r t g r i d p r o g r a m 43
Operations Key Message: No single implementation
• Grid architectures are not mutually exclusive
• The examples allow us to explore technical aspects of interoperability
• No single architecture is “correct”

Hybrid Utility Communications

Pathway Scenario
Communications Pathway Scenario
High-DER

N I S T s m a r t g r i d p r o g r a m 44
Operations Key Message: Diversified ownership
Diversifying asset ownership
• Common to all architecture examples
Demands increased interoperability

Requires Trustworthiness Grid operation is highly interdependent with

• Extends beyond cybersecurity market structure, which in turn is limited by
– Trustworthiness.Reliability the nature of grid operations. Operations and
– Trustworthiness.Resilience market evolve coincidently and
– Trustworthiness.Safety interdependently.

• Architecture defines trustworthiness

requirements
– Device level trustworthiness
– Microgrid level trustworthiness
– Service provider level trustworthiness

N I S T s m a r t g r i d p r o g r a m 45
Economics Key Message: Interoperability and Specificity
Interoperability can help to overcome the barriers of device specificity and support the
marketing efforts and revenue outlook of new and existing grid services.

Organizational Strategy
1. Organizations invest in resources and capabilities that strengthen their core competencies.
2. Investments may commit an organization to certain competitive strategies and business models.
3. Firms may discover subsequent, synergistic opportunities.

Smart Grid Context

1. Asset specificity often results from efforts to meet technical requirements and contribute to a
value chain.
2. Specificity may then act as a barrier to broader or further utilization of devices and systems.
3. Interoperability offers a strategy set through which to reduce “specificity barriers”.

Value chains and value networks

The value of DER and conventional assets to the electric grid will improve as interoperability enables
these resources and capabilities to make additional contributions across the sector’s value network

N I S T s m a r t g r i d p r o g r a m 46
Economics Key Message: Customer Empowerment
Interoperability is crucial to customer empowerment.

1. Enabling customers to be better informed regarding their own electricity-

use decisions.
a. Improved utilization of current assets
b. Better decision making with respect to technological adoption
c. Accurate signals are critical to economic efficiency

2. Enabling a plug-and-play environment.

a. Expectation that devices purchased will work with rest of the system
b. Devices can be selected for customer optimality
c. Reduced entry barriers and transaction costs of integrating customer equipment

3. Informational improvements may contribute to greater customer agency

N I S T s m a r t g r i d p r o g r a m 47
Economics Key Message: Complexity and Cost Structures
Interoperability can counter rising transaction and production costs associated with the
increasing complexity of interaction among diverse organizations of varying regulatory status.

1. Value chain complexity is rising with asset specificity

2. The regulatory status of firms varies across the value chain Impact on Cost Structures
3. Coordinating value-adding activities is costly

Transaction costs are rising in salience

“Current writing has helped bring out the point that market failure is not absolute; it is better to
consider a broader category, that of transaction costs, which in general impede and in particular cases
completely block the formation of markets. It is usually though not always emphasized that
transaction costs are costs of running the economic system”.
(Arrow 1969)

Interoperability strategies can directly address cost escalation due to complexity

N I S T s m a r t g r i d p r o g r a m 48
Economics Key Message: Testing and Certification
Effective and efficient testing and certification regimes are needed to ensure
that devices, systems, and components perform as expected and are fit for
purpose.

1. Achieving interoperability will require initial and ongoing testing of devices,

systems, and systems of systems.

2. Interoperability investments constitute cooperative strategies for improving the

efficiency of the electric grid.

3. Some interoperability benefits are likely to be split between stakeholder groups.

4. Testing and Certification regimes can help to identify and discipline problem
areas/actors as well as inform subsequent strategy formation and product
development.

N I S T s m a r t g r i d p r o g r a m 49
Cybersecurity Key Message: Requirements & responsibility

• Cybersecurity risk
profile for the smart grid
• Structural
considerations
– Business/mission
requirements similar
across architectures
– Responsibilities may
change, however
– Considerations for
cybersecurity activities
For more information on NIST Cybersecurity Framework:
https://www.nist.gov/cyberframework

N I S T s m a r t g r i d p r o g r a m 50
 Cybersecurity Key Message: Known issues, new interfaces
Logical Reference Model for Smart Grid Communications Logical Reference Model for High-DER Scenario
15 -
Multi-Level Hierarchical DER Scenario
D istribution
R TU s or IE D s Level 5: Market
U 117 U 109 14 - D istribution Operations
U28 Autom ation U 108
47 - 46 -
26 - Field D evices 19 - Energy
T ransm ission T ransm ission
D istribution 13 - D istributed U 112
U17 Market Level 4: Distribution System
R TU IED 17 - G eographic
45 - Phasor
U 67
E ngineering 40 - W ork U 131 Inform ation Intelligence
20 - ISO /R TO / Clearinghouse Operations
W holesale D 01
M easurem ent M anagem ent U 34 S ystem C apabilities D 06
Market
U nit U 85 25 - D istributed S ystem
25 - D istributed
U82 G eneration & U 105
U 30 12 - D istribution Generation & Storage
39 - W ide Storage U 20
U 81 36 -O utage D ata C ollectors M anagem ent
U 79 A rea M anagem ent D 02 27 - Distribution
U 114 (D ER M S) 17 - Geographic
M easurem ent M anagem ent U 29 M anagem ent U 102
16 - Field Inform ation
S ystem U27 S ystem
C rew T ools U 111 Level 4: Transmission/ISO/RTO U58 System (D M S)
System (G IS)
1 - P lant U 99 System Operations D 07
C ontrol U 80 28 - U 36 18 -
U 75 37 - D istribution U 104
S ystem U 31 D istribution
U 77 U76 T ransm ission O perator
30 - Energy
U 12 32 - Load Sensors U 87 U 27
U 84 SCADA 38 – 31 - ISO /R TO M anagem ent
M anagem ent U 11
U 65 U 37 C ustom er U 39 Operations System
U 13 S ystem / D em and- Portal D 04
35 - O perator U 115 U 100 R esponse U3 U 69
U 11
M anagem ent S ystem U9 32 - Load M anagem ent
U 16 D isplays U 68 U 101 U 26 24 -C ustom er U 65
U 86
U 40 2 - C ustom er 36 -O utage System / D em and-
U 78 Service
M anagem ent R esponse M anagem ent
29 - U 59 U 32 U33 R epresentative
U 89 U 116 U 52 S ystem (O M S ) System (LM /D R )
U 87 D istribution U 110
U 70 SCADA U 102 U 125
U 90 U9 27 - D 05
30 - Energy U 113 41b -
U 74 U 69 D istribution 23 - C ustom er 41a - Retail
M anagem ent M anagem ent Inform ation U 14 Energy Aggregator U 56
U 10 U7 U 22 U 127
S ystem U 83 S ystem S ystem U 38 U 35 P rovider (R E P) 29a - D ER
U 56 SCADA
U 97 U8 U 21 U 106 U 106
22 - Bulk 31 - ISO /R TO 21 - A M I U 24
U 66 U55 33 - M eter
Storage O perations H eadend U 119 9 - C ustom er
M anagem ent
U 51 D ata
U2
P rem ise
Level 3: Third Party, Aggregator U 92
U 126
M anagem ent D isplay D 03 D 03
U 88 U 124 U 92
S ystem
34 - M etering/ U 92 5 - C ustom er Energy
Billing/Utility U 15 M anagem ent U 44
20 - IS O /R T O / U1 U 98 U 25
B ack O ffice U 54 U 96
S ystem Level 2: Facilities DER Energy 5 - Facilities Energy
W holesale U 72
M arket U 52 U 63 3 - C ustom er Management (FDEMS) M anagem ent
U 42 U41 System (FD EM S)
U 64 A ppliances and
U58 U4 42 - Billing
U6 7 - Energy U 43 Equipm ent
U 91 U53 Services
U 62 U 62
U5 Interface/ H AN
U93 41a - R etail U 19 G atew ay U 120 U 45
U 17 U 49 Level 1: Autonomous DER
19 - Energy Energy
U 129
M arket Provider 44 - Third U 18 8 - M eter Generation and Storage 4a - D ER 6a - Electric
4a – Utility-Scale
C learinghouse Party U 60 Vehicle Supply
U 57 System
U 47 D 08 D ER or Plant
U 128 C ontroller E quipm ent (E V SE ) D 09 D 08
U 95 U 130 U45
43 - Energy U 46
U aa 10 - 6b - Electric Customer
Transm ission Domain Color Key U 20 41b - Service 4 - C ustom er U 48
S ubm eter Utility Meter and
4b – D ER
V ehicle (E V )
4b – D ER
Site Load
Aggregator P roviders D evice D evice
DER: 6 - Electric U 50 (EU M D ) Grid PCC
Bulk 11 - W ater/G as
O perations D istribution G eneration Vehicle
Generation M etering and S torage (EVSE/PEV)
Service
M arkets C ustom er
P roviders

Source: NISTIR 7628 Guidelines for Smart Grid Cyber Security, 2010 Source: DRAFT NIST Interoperability Framework v4.0

N I S T s m a r t g r i d p r o g r a m 51
Testing & Certification: Establishing context
SEPA/SGIP SG CoS List Identified SG Standard List DSO Priority List
of NIST Framework R3.0

NIST SG Framework V3.0-2014 SG List 36. MultiSpeak

37. NAESB REQ18, WEQ19 -2010
1. ANSI C12.1-2008 38. NAESB REQ-21 Energy Services Provider Interface (ESPI)
2. ANSI C12.18-2006 39. NAESB REQ-22
3. ANSI C12.19-2008 40. NEMA Smart Grid Standards Publication SG-AMI 1-2009
4. ANSI C12.20-2010 41. OPC-UA
5. ANSI C12.21-2006 42. Open Automated Demand 2.0
6. ANSI/ASHRAE 135-2012 43. Open Geospatial Consortium(OGC) Geography Markup Language (GML)
7. ANSI/CEA 709 and CEA 852.1 LON Protocol Suite 44. OASIS Energy Interoperation (EI)
8. IEC 60870-6 -503 TASE.2-2010 45. OASIS EMIX (Energy Market Information eXchange)
9. IEC 60870-6-702 Function profile 46. Smart Energy Profile 2.0 (Device communication and information model)
10. IEC 60870-6-802: TASE.2 Object model 47. RFC 6272 IP-basedSG network
11. IEC 61850-1 48. OASIS WS-Calendar (Communication)
12. IEC61850-2 49. NISTIR 7761v1, NIST Guidelines for Assessing Wireless Standards for SG applications
13. IEC61850-3 50. NISTIR 7862 – Guideline for the Implementation of Coexistence for Broadband PLC Standards
14. IEC61850-4 51. OpenHAN
15. IEC61850-5 52. SAE J1772: SAE Electric Vehicle and Plug in Hybrid Electric Vehicle Conductive Charge Coupler
16. IEC61850-6 53. SAE J2836/1: Use Cases for Communication Between Plug-in Vehicles and the Utility Grid
17. IEC61850-7-1 54. SAE J2847/1: Communication between Plug-in Vehicles and the Utility Grid.
18. IEC61850-7-2 55. SGTCC Interoperability Process Reference Manual (IPRM) v1.0
19. IEC61850-7-3 56. SGIP 2011-0008-1 PAP 18 Transition from SEP 1 to SEP 2.0
20. IEC61850-7-4 57. Security Profile for Advanced Metering Infrastructure, v 1.0, 2009
21. IEC61850-7-410 58. DHS, NCS, Catalog of Control Systems Security: recommendations for standards developers
22. IEC61850-7-420 59. DHS Cyber Security Procurement Language for Control Systems
23. IEC61850-8-1 60. IEC 61851: Electric vehicle conductive charging system - Part 1: General requirements
24. IEC61850-9-2 61. IEC 62351-1
25. IEC61850-10 62. IEC 62351-2
26. IEC61850-90-5 63. IEC 62351-3TCP/IP
27. IEC 61968/61970 suite 64. IEC 62351-4 security for MMS
28. IEEE 1815 (DNP3)-2012 65. IEC 62351-5 the application layer authentication and security-issues
29. IEEE C37.118.1-2011 66. IEC 62351-6 security for IEC 61850
30. IEEE C37.118.2-2011 67. IEC 62351-7 end-to-end information security
31. IEEE C37.238 -2011 PTP 68. IEC 62351-8 specifies role-based access control (RBAC) requirements
32. IEEE C37.239-2010 COMFEDE 69. IEEE 1686-2007 defines functions and features to be provided in substation IEDs
33. IEEE 1547 Suite 70. NERC Critical Infrastructure Protection (CIP) 002-009
34. IEEE 1588 PTP 71. NIST Special Publication (SP) 800-53 Mandatory standards for the bulk electric system
35. IEEE 1901-2010 (ISP) and ITU-T G.9972 72. NISTIR 7628 Guidelines for Smart Grid Cyber Security V1.0, V2.0, V3.0

https://www.nist.gov/news -events/news/2014/10/nist-
releases-final-version-smar t-grid-framework-update- Source:
Source: http://www.gridstandardsmap.com/ 30
https://www.edsoforsmartgrids.eu/wp-
content/uploads/public/DSO-Priorities-
Smart-Gird-Standardisation.pdf
New Standards:
• New Standards
Smart Grid Standards for
• New versions of old standards Evaluation (244 Standards)
N I S T s m a r t g r i d p r o g r a m 52
 Testing & Certification: Standards Evaluation Methodology

Inform ation M od el
Domain,

Practice Security
M od el M a p p i n g
Standard Standard Name subdomain Use NIS SEPA IEC

Communication

Communication
No.
(Types) Description Characteristics T&C

Perform ance

Test m e t h o d

G uideline &
Family No. and Cases T CoS CoS

Mapping
componen 3.0
ts

N I S T s m a r t g r i d p r o g r a m 53
 Testing & Certification: Preliminary Data Analysis
Smart Grid Standards and Associated Testing & Certification
300 Communication

250
Number of Standards

200

150

100

50

0
Information Model Communications Protocol Performance
Standards Functional Category Information
Standards in Category Testing & Certification Programs Total Standards Reviewed
Model Performance

16/61 25/114 14/30

N I S T s m a r t g r i d p r o g r a m 54
T&C Key Message: Gaps persist in assuring interoperability

• There is a growing number of standards that are the foundation of grid

modernization.
• There remains a gap in the availability of testing and certification
programs to ensure that standards have been implemented
appropriately and consistently to support interoperability of devices
and systems.
• Even as industry coalesces around a subset of standards and options,
the real universe of standards and applications is diversifying.
• Some standards are showing convergence on a subset of
requirements but on parallel pathways.

N I S T s m a r t g r i d p r o g r a m 55
T&C Key Message: Implementation complexity
Communication Information Implementations
Protocols Models

IEEE Standard SEP2 DER

2030.5 (SEP2)

IEEE Standard IEC 61850

1815 (DNP3)

SunSpec SunSpec
Modbus

Others… Others…

N I S T s m a r t g r i d p r o g r a m 56
T&C Key Message: Interoperability profiles
• A profile is a description of a well-defined subset of the standard that
has been agreed upon by a user community, testing authority or
standards body.
• The specification and use of profiles allows the interoperability gap to
be narrowed by reducing the degrees of freedom of implementation
flexibility in the context of interest by the device supplier, implementer
and system owner.
• Interoperability profile can
– Narrows constraints and provides uniformity
– Supports multi-vendor interoperability
– Lowers cost of system integration

N I S T s m a r t g r i d p r o g r a m 57
THANK YOU
https://www.nist.gov/engineering-laboratory/smart-grid/smart-grid-framework

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