Fibre and the Smart Grid

ntl-Telewest BusinessInternational targets to cut emissions of greenhouse gases such as carbon dioxide will require a fundamental shift in attitudes towards power generation and resource planning. At present electricity generators are driven by demand – they cannot limit the consumption of their customers, and poor forecasting of rapid load fluctuations often means they meet demand inefficiently.

To this end, smart metering has been a topic of hot debate for a number of years. Smart meters perform the traditional meter function of measuring energy consumption, but they also offer a range of advanced functions. These include allowing energy suppliers to communicate directly with their customers, removing the need for meter readings and ensuring accurate bills with no estimates. Consumption information can be provided to domestic customers through an integrated, in-home display enabling them to better monitor their consumption and the associated cost. However, smart metering isn’t just limited to gas and electricity suppliers, The Environment Agency considers smart meters to have the potential to assist in reducing demand and managing the UK's limited water resources.

In May 2009 the UK government unveiled plans for smart meters to be installed in every home by the end of 2020. The cost associated with fitting approximately 22 million gas and 26 million electricity meters is estimated to stand at £7billion1 . Whilst the government’s commitment to the scheme cannot be underestimated there are still some kinks that need to be ironed out.

For smart metering to work, each meter must be able to reliably and securely communicate the information collected about consumption back to utility company. This task is further complicated by the varying environments and locations where meters are found.

It has yet to be decided if the transmission of data in smart meters should be wireless, cable or even down power lines. A critical factor in determining this choice may well be open architectures. The creation of a smart grid – over which information is transmitted – will need to be based on open standards. It is important for consumer choice that there is interoperability between meters so that if they wish to change supplier they can do so. Internet Protocol (IP) is therefore gaining in prominence as the most widely understood and adopted application of such technology. In the US Duke Energy recently announced it was working with Cisco on an end-to-end smart grid communications architecture based on IP.

Next generation networks not only support IP, but also address many of the other critically important factors in the creation of a smart grid in the UK. Information from smart meters must be transported in real-time. To ensure data is not dropped, the underlying network must have resiliency at its core. Unlike copper, fibre networks are able to transport high volumes of data at speed to a central location. This information will be critical to the remote support of meters as well as collating the data in order to better predict usage peaks and spot other consumer trends that will enable utility suppliers to manage consumption more effectively.

Beyond measurement and consumption, smart metering also provides the opportunity for the industry to move from a reactive consumer interaction model, to a proactive one. To achieve this objective, utility companies need timely access to data, they therefore want to be assured that the network will support the smart meter grid and perform in line with agreed service levels. Unlike many traditional networks, fibre can provide these reassurances as it supports technologies like Ethernet, which means there is no single point of failure that could jeopardise the whole network.

There are many examples of how next generation networks are being used to more actively manage supply and customer interactions. We’re working with a number of utility companies to help them control remote devices that have a central role to play in the delivery of their services. Over a digital core network these companies are able to transport data from their remote devices back to headquarters. Here they are able to analyse the information to spot problems and compile insight into customer usage. Copper networks are unable to do this for two reasons. Firstly they lack the capacity to deliver the information in real-time and secondly they are less resiliantand so can be more prone to failure.

As well as being able to compile information that improves the business, the companies we are working with have also been able to realise additional efficiencies. Previously, if there was a problem they would have had to dispatch an employee to drive to all device locations in order to pinpoint what the issue was. Now however, this can all be established from central command. In fact by identifying trends in the data collected from the devices, utility companies are taking steps towards anticipating problems before they happen.

These projects provide an excellent blueprint for how next generations networks could support the management of smart meters in the UK. Without question, communication technology will play a significant role in making all aspects of this project feasible, particularly the underpinning infrastructure for transporting data. Fibre networks have the advantage for utility suppliers, not just because they can be used to support other projects within the business, but because they offer the resiliency and service reliability needed to ensure that the roll out is a success.

1. http://news.bbc.co.uk/1/hi/business/8042716.stm

Alison Adams
ntl-Telewest Business
web: www.ntltelewestbusiness.co.uk