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For much of the past few years, meter automation and demand response have been the central applications of Smart Grid projects. But now a third leg of the Smart Grid stool -- advanced distribution operations (ADO) -- is gaining increasing interest from utilities. In both informal discussions and formal processes such as RFPs, utilities are displaying new emphasis on applications such as advanced grid monitoring and interconnection of distributed energy resources. In fact, one-third of utilities plan to implement distribution automation/asset monitoring functionality while another third are considering adding such functionality, according to Chartwell's 2008 survey of 74 electric distribution utilities.

The addition of advanced grid sensors that help improve outage restoration and asset management is a significant benefit of any Smart Grid deployment. Distribution operations enhancement can often drive the second most value beyond meter automation of all Smart Grid applications, according to estimates of various utility projects and research. Utilities -- and vendors alike -- are trying to grasp the true potential value of increased distribution functionality and identify the best path toward realizing those benefits.

But before utilities can realize these benefits, many issues must be addressed. This paper will discuss solutions to many of those challenges including:

1. What is the cost and actual value of using a Smart Grid network to enhance distribution operations? When will the benefits be realized?
2. What technology and software is required to make advanced distribution operations work? What must be required of Smart Grid vendors to enable near real-time distribution-related applications?
3. How should advanced distribution goals fit into overall corporate and Smart Grid strategies?
4. How do current distribution enhancement opportunities differ from the complex and expensive distribution automation initiatives many utilities have doing for years? What are the additional benefits?

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To set the foundation of the discussion, let's answer the last question first. To understand the true value of network-based distribution applications, we must first differentiate between past capabilities -- which tended to be selective in nature -- and future capabilities which can provide more holistic, system-wide functionality such as increased reporting accuracy of false positives due to tightly integrated AMI and outage management systems.

Many utilities will argue that they have to some degree "automated" their distribution operations. But the potential benefits of integrating Smart Grid network infrastructure-based distribution operations are much greater than simply automating distribution processes (see figure below). Utilities now have the opportunity to transform operations from reactive to proactive. Asset management is a prime example. Using timely information from Smart Grid communications, utilities can move from a comprehensive predictive-based to a condition-based asset management approach, thereby increasing utilization of transformers and other assets. Rather than waiting for a transformer to overload or replacing one simply due to expected lifecycles, utilities can now make decisions based on the actual condition of the asset.

The difference between traditional distribution automation (DA) and advanced distribution monitoring and control is analogous to the difference between AMR (automated meter reading) and AMI (advanced metering infrastructure). While mobile (drive-by) automated the meter reading process (thereby increasing accuracy and decreasing staff and customer intrusions), the network provides the foundation for many Smart Grid applications, including distributed generation, demand response and more. Similarly, advanced distribution monitoring enabled by a Smart Grid communications is about much more than distributed automation. Distribution monitoring is about implementing advanced grid operations and applications that can potentially solve a multitude of challenges/issues including, but by no means, limited to:

1. Asset Management: implementing intelligent electronic devices (IEDs) such as relays, reclosers and switchable cap banks
2. Distribution SCADA: installing monitoring and controlling IEDs on the distribution circuits
3. Advanced Outage Management (Notification / Restoration): integrating AMI and outage management systems (OMS) to help utilities reduce duration and number of outages through protection devices, smart relays and sectionalizers that can communicate and identify precise outage locations

Justification / Business Case

These solutions can generate potential benefits including improvements in reliability, security, O&M spend, environmental stewardship and operational efficiency. Advanced distribution operations can account for as much as 20 percent Smart Grid benefits (see chart below) including improving useful asset lives and SAIFI/CAIDI performance, and decreasing transformer failure rates and troubleshooting time through utilization of distribution network analytics.

Using a Smart Grid network for advanced distribution monitoring requires a long-term investment and commitment. Realizing the benefits of advanced distribution monitoring may take much longer than those linked directly to meter automation and demand response because it requires complete implementation and integration of all related systems. In other words, although advanced distribution operations should be considered as part of a holistic Smart Grid strategy, the communications and software platform must be implemented and systems integrated to enable true Smart Grid applications. Once the software and systems are implemented, the utility must determine how best to turn data into "actionable information" -- such as business intelligence, root cause analysis, trending, measurement and historic/advanced analytics. Smart Grid deployments for large utilities can often take 18 months to five years to complete, and then it may take a few additional years for distribution enhancements to be realized. Of course, once the network is installed, advanced distribution operations is just one of many applications that can be enabled.

Open Standards for Communications and IP-addressability

The communications network is the key enabler to achieving advanced distribution operations. Nothing can be accomplished without a robust communications system that can evolve with your utility's needs. Many Smart Grid communications systems have the capability to deliver advanced grid benefits, though the level of capability varies dramatically among systems. Advanced distribution operations, like other applications, must be driven by clear requirements and objectives. As with demand response and time-of-use or any other functionality, it is best to take an application-based approach to identifying your utility's optimal Smart Grid roadmap and network.
The communications network is the key foundational component of Smart Grid and must be able to adapt to future requirements. If the intelligent communications platform is not set as the foundation then the applications will not be enabled. Every application has specific technical and business requirements and constraints that can be addressed through the communications network (see graphic below). Hence, utilities must select an open standards communications network that can enable benefits for many of the applications for many years and decrease the risk of obsolescence.

The term "open standards" has many different meanings to many different people. But for a communications network to truly enable advanced intelligence, it must be able to use communications devices from various manufacturers and enable communications across various systems used by utilities. Specifically, a communications network should have a standards-based approach built on three layers:
communications devices, the medium (e.g., Internet protocol) and the language. First, to enhance migrate-ability, networks should use two-way radios that meet IEEE 802.15.4 standards and enable integration of chipsets from various manufacturers. Second, all firmware must be able IP-addressable to enable communications between any two points on the network. Third, a common language must be used to ensure that all points can provide information that can be understood by all other points on the network.

No matter its configuration, a Smart Grid communications network must leverage open standards to ensure that advanced distribution -- and future applications -- operations can be fully realized. Advanced distribution operations is just one application enabled by a Smart Grid network. Utilities must implement a network that will evolve with the utility over the next 20 to 25 years. A network built on open standards will deliver the most flexible and cost-effective path for decreasing the risk of technological obsolescence. Many utilities will initially use their Smart Grid network to enable advanced metering and demand response before implementing advanced distribution operations and other advanced applications. But no matter what applications are on your Smart Grid roadmap, your utility will need an open standards-based , high-bandwidth communications network that can deliver the Smart Grid today -- and well into the future.