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Smart Grid Infrastructure Handbook A GTM Research Whitepaper

ABB-450-WPO_Smart Grid Infrastructure Handbook

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Page 1: ABB-450-WPO_Smart Grid Infrastructure Handbook

Smart Grid Infrastructure HandbookA GTM Research Whitepaper

Page 2: ABB-450-WPO_Smart Grid Infrastructure Handbook

2Copyright © 2012 Greentech Media Inc., Ventyx. All Rights Reserved.

SMART GRID INFRASTRUCTURE HANDBOOK

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY 31.1 Smart Grid Landscape 31.2 Technologies 41.3 Major Trends 61.4 Integrated Solution Value Assessment 6

2 MARKET SEGMENTATION ANALYSIS 82.1 Control Room (Enterprise) 82.1.1 Taxonomy 92.1.2 Solutions 102.1.3 Deployments 11

2.2 Transmission 122.2.1 Taxonomy 132.2.2 Solutions 142.2.3 Deployments 14

2.3 Substation Automation 152.3.1 Taxonomy 162.3.2 Solutions 172.3.3 Deployments 17

2.4 Distribution Automation 182.4.1 Taxonomy 202.4.2 Solutions 212.4.3 Deployments 22

3 ABB/VENTYX COMPANY ECOSYSTEM 233.1 ABB 233.2 Ventyx 243.3 Analyst’s Note 243.4 Partnerships and Capabilities 25

Page 3: ABB-450-WPO_Smart Grid Infrastructure Handbook

3Copyright © 2012 Greentech Media Inc., Ventyx. All Rights Reserved.

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 ARRA’s 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 effi ciency. 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 effi ciency of existing business

processes, as well as enable new technologies to eff ectively 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 utility’s 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 fl 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 fi eld device actions. Coordination of DA devices

can improve the effi ciency 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 effi ciencies 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 fi 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

*Also available as part of an integrated advanced DMS solution

Source: GTM Research

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SCADA/Energy Management System

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Advanced Applications

Wide Area Measurement System (WAMS)

-- Volt/VAR Optimization*

Fault Location/FLISR/FDIR*

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Sensors Sensors

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High Voltage DC (HVDC)Enhanced Station Controllers (RTU/PLC/Gateway)

DA Equipment (reclosers, automated switches, capacitor banks, controllers, and power electronics

Flexible AC Transmission Systems (FACTS)

Digital Protection and ControlDistributed Energy Resources (distributed generation, electric vehicles, storage, load controllers) Integration

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6Copyright © 2012 Greentech Media Inc., Ventyx. All Rights Reserved.

SMART GRID INFRASTRUCTURE HANDBOOK

1.3 Major Trends

Figure 1-2: Smart Grid Trends

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 utility’s 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 other’s 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.

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.

2) Renewables expansion

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 2008-2011 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 diffi culty of matching supply and demand, also increase.

3) Acceptance of cloud solutions and software-as-a-service models

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.

4) Rise of predictive asset management and analytics

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.

5) The increasing integration of IT/OT

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.

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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 profi tability.

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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8Copyright © 2012 Greentech Media Inc., Ventyx. All Rights Reserved.

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’ eff ect

on utility operations, which span the control center, transmission, substation, and distribution grid.

2.1 Control Room (Enterprise)

Deployment of additional communications in the fi 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, fl 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 effi ciency, and fi nancial management.

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9Copyright © 2012 Greentech Media Inc., Ventyx. All Rights Reserved.

SMART GRID INFRASTRUCTURE HANDBOOK

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10Copyright © 2012 Greentech Media Inc., Ventyx. All Rights Reserved.

SMART GRID INFRASTRUCTURE HANDBOOK

2.1.2 Solutions

Figure 2-2: Control Room Solutions

*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

CONTROL ROOM SOLUTIONSSmart Grid Sector Product Name Product Category

Energy Market ManagementNetwork Manager: Market Manager System (MMS)

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) Transmission Analysis and Control

Description: The GMS suite offers a full range of SCADA functions, while incorporating applications such as generation optimization .

Transmission Network ManagementNetwork Manager: Energy Management System (EMS)

Generation Analysis and Control

Description: Ventyx’s 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, effi ciency 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 AutomationNetwork Manager: Distribution Management System (DMS)

Distribution Management System Suite

Description: Integrates existing SCADA and distribution SCADA data to create an accurate load fl 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 fl 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 AutomationNetwork Manager: Outage Management System (OMS)

Outage Management System

Description: Coordinates outage management efforts, including fault location information from distribution SCADA; notifi cation of automated fault restoration services provided by fault location, isolation, and service restoration applications; automated call systems; and customer communications.

Distribution Automation Network Manager: SCADA SCADA

Description: Provides a strong data acquisition platform with asset control capabilities.

Asset Management Ventyx EAM Enterprise Asset Maintenance

Description: Ventyx EAM utilizes various enterprise data streams to improve asset utilization, reduce operating costs, and reduce operational risk.

Asset Management Service Suite Workforce Management

Description: Allocates workforce to maintenance tasks and warehouses human resources information including skills and scheduling.

Asset Management Ventyx ERP Enterprise Resource Planning

Description: Ventyx functionality allows for cost management, cost of ownership calculation, project capitalization, and reporting and compliance support.

Asset Management Asset HealthConditions-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 effi ciency gains

Demand Response Demand Response Management System Demand Response Management

Description: Ventyx’s 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.

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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

2.1.3 Deployments

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 fi nal DMS will be networked to 11 substations, providing unbalanced

load fl 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 Maryland’s

goal to decrease energy demand by 15% per capita by 2015. Implementation of Ventyx’s 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

eff orts by 17%, lowered scheduling eff orts 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 fl 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 effi ciency. The integration of

synchrophasor technology promises improved notifi cation, 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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SMART GRID INFRASTRUCTURE HANDBOOK

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SMART GRID INFRASTRUCTURE HANDBOOK

2.2.2 Solutions

Figure 2-4: Transmission Solutions

Source: GTM Research

2.2.3 Deployments

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.

SMART GRID TRANSMISSION SOLUTIONSProduct Name Product Category

Network Manager SCADA/EMS Transmission SCADA and State Estimation

Description: Ventyx’s 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, effi ciency 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 fi 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 profi les 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.

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15Copyright © 2012 Greentech Media Inc., Ventyx. All Rights Reserved.

SMART GRID INFRASTRUCTURE HANDBOOK

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

redefi ning 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 simplifi es 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 fi 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 eff ect 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 eff ects of various grid conditions

and actions through advanced analytics.

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SMART GRID INFRASTRUCTURE HANDBOOK

2.3

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SMART GRID INFRASTRUCTURE HANDBOOK

2.3.2 Solutions

Figure 2-6: Substation Automation Solutions

Source: GTM Research

2.3.3 Deployments

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.

SUBSTATION AUTOMATION SOLUTIONSSolution Category

MicroSCADA Pro and RTU 560 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: ABB’s 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 identifi es 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, signifi cantly 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.

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18Copyright © 2012 Greentech Media Inc., Ventyx. All Rights Reserved.

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 fi rst substation involved the integration of the Micro SCADA platform that controls ABB relays

within transformer and diff erential 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 diff erential 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 fi 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.

Eff orts to increase fi 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 effi ciency 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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SMART GRID INFRASTRUCTURE HANDBOOK

fault circuit indicators and voltage monitors with networked automated switches, reclosers, and

sectionalizers to pinpoint and mitigate the eff ects 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 effi ciency, which in turn reduces fuel costs, decreases the utility’s 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 off er future solutions to

the integration of variable generation and electric vehicles.

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SMART GRID INFRASTRUCTURE HANDBOOK

2.4

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SMART GRID INFRASTRUCTURE HANDBOOK

2.4.2 Solutions

Figure 2-8: Distribution Automation Products

DISTRIBUTION AUTOMATION PRODUCTSSolution Category

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

Description: Integrates existing SCADA and distribution SCADA data to create an accurate load fl 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 fl 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 effi ciency.

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 predefi ned 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 confi guration 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 ABB’s model-based 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 fi 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 effi ciencies from improved customer communications and more effi cient fi eld restoration services.

Substation Fault Location, Isolation, and Service Restoration (FLISR)

Substation FLISR

Description: ABB’s Substation FLISR utilizes algorithms located in a COM600-decentralized controller and fi 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: Ventyx’s FocalPoint suite utilizes ABB’s 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 effi ciency 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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SMART GRID INFRASTRUCTURE HANDBOOK

2.4.3 Deployments

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 effi ciency 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

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, CPSEnergy, CenterPoint Energy,ONCOR, and Detroit Edison

CEO: Joseph Hogan

Website: www.abb.com/smartgrids

Primary Competitors: AlstomGrid, GE, Schneider Electric, Siemens

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

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 signifi cant 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 fi rm Epyon and

equity investments in EV charging infrastructure fi 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

3.2 Ventyx

Ownership: PublicSubsidiary 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

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

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 Ventyx’s 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

eff orts on leveraging its equipment and software expertise to create

open utility systems that can gain insight and achieve effi ciencies

through IT-OT convergence.

Ventyx continues to focus its research and development eff orts

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 fi ve year plan for

the development of an asset health suite that utilizes current grid

conditions, equipment specifi c 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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SMART GRID INFRASTRUCTURE HANDBOOK

3.3 Partnerships and Capabilities

ABB has a strong partnership network that off ers products and services that enable ABB products,

require less integration work, or fi ll out a product gap within the ABB portfolio. At the control-center

level, Ventyx partners with a variety of fi 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 TomTom’s 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 fi 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 Elster’s EnergyAxis platform,

Sensus, Silver Spring, Landis+Gyr, GE, FreeWave, and Cisco, providing ABB with relationships with a

variety of fi eld area network providers.

ABB has also worked to ensure that its fi eld equipment products, as well as Ventyx control center

systems, continue to be secure. Outside of ABB’s internal work, it has partnered with cyber security and

compliance provider Industrial Defender, as well as cloud and virtualization specialist VMware.

3.4 Analyst’s Note

ABB has one of the widest product portfolios in the industry. ABB continues to focus its acquisitions on

improving geographic access, fi 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 eff orts are still underway to realize Ventyx’s vision of advanced asset management, business

analytics, distribution automation, and workforce management.

ABB’s championing of IT/OT integration puts them at the forefront of the eff ort 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

eff orts 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 ABB’s operation as it surpasses the EU region in revenue. A strong business foundation, growth

prospects, and a fi 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.

Page 26: ABB-450-WPO_Smart Grid Infrastructure Handbook

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