Energy Superhighway will be crucial to management of Energy Cloud services, finds report

by Brianna Crandall — December 16, 2016 — A recent white paper from Navigant Research provides a far-reaching view of the connectivity needs of electric utilities, exploring approaches and technologies, with case studies of projects designed to develop an Energy Superhighway, considered critical for the Energy Cloud.

Over the last decade, with the advent of smart grid technology, utilities have been prompted to invest in a wide array of networking technologies for a variety of purposes, including advanced metering infrastructure (AMI), distribution substation and feeder automation, and other monitoring and information technology (IT) functions. These networks have frequently been built and managed within operational silos, but going forward, utilities must reinvent themselves and consider a two-way network-centric strategy that will support both the smart grid applications of today and as-of-yet undefined needs of tomorrow.

According to the white paper, an Energy Superhighway will be crucial to the successful delivery and management of energy services, which may include integrated solar and wind, transactive energy markets, microgrids, energy storage, and other disruptive technologies. Navigant Research defines the Energy Superhighway as the robust, ubiquitous, high-bandwidth, low-latency communications backbone that will be necessary to support the many software- and hardware-based systems that will ultimately power the Energy Cloud and enable utilities to drive industry evolution.

Richelle Elberg, principal research analyst with Navigant Research, explains:

In the Energy Cloud, the function of a utility will not be limited solely to the generation, transmission, and distribution of electric power; it will be about empowering end users through ubiquitous, robust connectivity to community resources and the provision of related services. The Energy Superhighway will be the backbone upon which the utility of the future will develop and thrive within a highly networked grid.

Comparable to the buildout of the U.S. Interstate Highway System in the 1950s, massive economic growth is a possible outcome of a concerted effort to develop the Energy Superhighway, according to the report. As part of the broader Energy Cloud concept, the underlying communications infrastructure will be foundational to utilities wishing to embrace the opportunities presented by this emerging paradigm.

The white paper, Communications in the Energy Cloud: The Energy Superhighway and the Future of Grid Connectivity, provides a far-reaching view of the connectivity needs of electric utilities — today and tomorrow. The report examines the reasons why a network-centric approach — rather than a silo-based, application-centric strategy — is imperative for power utilities today. It also explores which connectivity technologies are best positioned to be future-proof, and provides several case studies of visionary utility projects designed to develop the Energy Superhighway.

Each of the topics in this white paper is examined more deeply in research reports and ongoing research from Navigant Research’s Grid Networking and Communications Research Service. An Executive Summary of the report is available for free download on the Navigant Research Web site.