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Smart Grid for City of Ottawa
Executive Summary
City of Ottawa
Ottawa is Canadas capital, in the southeastern province of Ontario, near the city of Montreal and
the US border. The City of Ottawa is the corporate entity of municipal government in Ottawa.
The corporation is responsible for provision of services to the public as well as enforcement of
municipal by-laws. It is overseen by the City Manager (Steve Kanellakos) and responsible to the
Mayor of Ottawa (Jim Watson) and City Council.1
The current population of the City of Ottawa is 960,756 with approximately 403,197
households.2 City has more than 25,000 employers, more than 728,000 jobs and is home to the
Government of Canada, Parliament, the Supreme Court, and various other government
organizations.3
There are five main energy types supplied to Ottawa: electricity, natural gas, heating oil, propane
and vehicle fuels. Most of Ottawas electricity is produced by Ontario Power Generation, and
transmitted to Ottawa via the Hydro One grid, which owns 97% of Ontarios 30,000 km of
transmission lines. Energy is delivered from the transmission system to the distribution network
through a number of transformer stations across the city. The largest of these are owned by
Hydro One, while the remainder are owned by Hydro Ottawa. Locally, electricity is distributed
within the urban area by Hydro Ottawa (which is owned by the City of Ottawa) and in the rural
area by Hydro One, with some exceptions.4
Problem Statement
The City of Ottawa is growing at a very fast rate, and the electricity sector has become the focus
of heightened interest in the context of escalating concerns over emissions, security and energy
demand growth. The electricity infrastructure experienced a steady growth during the 1970s and
1980s, as a result the time is now due for most of the aging infrastructure to be replaced. In this
scenario, utilities and policy makers are implementing Smart Grids, rather than just replacing
existing poles and lines, as a means to several ends conservation, energy efficiency, the
integration of renewables, greener communities and sustainable transportation (to name just a
few).
A Smart Grid is a modern electricity system that uses sensors, monitoring, communications,
automation and computers to improve the flexibility, security, reliability, efficiency, and safety of
the electricity system.5 An automated, widely distributed energy delivery network, the Smart
Grid will be characterized by a two-way flow of electricity and information and will be capable
of monitoring everything from power plants to customer preferences to individual appliances. It
incorporates into the grid the benefits of distributed computing and communications to deliver
1 https://en.wikipedia.org/wiki/city_of_ottawa
2http://ottawa.ca/en/city-hall/get-know-your-city/statistics/population-and-households-occupied-dwellingsestimates-sub
3 http://investottawa.ca/why-ottawa-old/city-profile/
4 http://app05.ottawa.ca/sirepub/cache/2/52r5ild322fk0jdpqrvhkqvs/19144410152016034039640.PDF
5paul murphy et. al., enabling tomorrows electricity system: report of the Ontario smart grid forum,
http://www.ieso.ca/imoweb/pubs/smart_grid/smart_grid_forum-report.pdf (September, 2010)
real-time information and enable the near-instantaneous balance of supply and demand at the
device level.6
Table of Contents
Executive Summary1
City of Ottawa.........................................................................................................................................1
Problem Statement...................................................................................................................................1
1
1.1.1
Customers............................................................................................................................7
1.1.2
1.1.3
Regulators............................................................................................................................7
1.1.4
Vendors................................................................................................................................8
1.1.5
Utility providers...................................................................................................................8
1.1.6
Electricity producers............................................................................................................8
1.1.7
1.1.8
Neighboring jurisdictions.....................................................................................................8
1.2
Stakeholder Analysis....................................................................................................................9
1.3
1.4
Stakeholder Map........................................................................................................................10
Business Requirements......................................................................................................................11
2.1
Operational efficiency................................................................................................................11
2.2
Grid resilience............................................................................................................................11
2.3
Environmental performance.......................................................................................................11
2.4
Interoperability...........................................................................................................................11
Strategy Canvas.................................................................................................................................12
Business Goals...........................................................................................................................13
4.1.1
4.1.2
4.1.3
Energy storage...................................................................................................................13
4.1.4
Electric transportation........................................................................................................13
4.1.5
Cyber security....................................................................................................................13
4.1.6
Network communications..................................................................................................13
4.1.7
4.1.8
4.2
4.2.1
Business Drivers........................................................................................................................14
Reliability and quality of supply........................................................................................14
3
4.2.2
The environment................................................................................................................14
4.2.3
Operational excellence.......................................................................................................14
4.3
5
Constraints.................................................................................................................................15
Demand Response.....................................................................................................................16
5.2
5.3
5.4
5.5
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
6.10
6.1
Clarified Scope..................................................................................................................................23
7.1
Breadth of Coverage..................................................................................................................23
7.2
7.3
Time Horizon.............................................................................................................................23
Architecture Vision............................................................................................................................26
10
11
11.1
Transformation Challenges........................................................................................................30
11.1.1
11.1.2
11.1.3
11.1.4
Decentralization.................................................................................................................30
11.1.5
Disintermediation...............................................................................................................30
11.1.6
12
Transformation Risk..................................................................................................................31
12.2
Operations Risk.........................................................................................................................31
12.3
Enterprise Risk..........................................................................................................................31
12.4
Organizational Risk...................................................................................................................31
12.5
Market Risk...............................................................................................................................31
12.6
Regulatory Risk.........................................................................................................................31
13
13.1.1
Vision.................................................................................................................................32
13.1.2
Orientation.........................................................................................................................32
13.1.3
13.1.4
Platform Evaluation...........................................................................................................32
13.1.5
13.1.6
13.1.7
13.1.8
Long-Term Partner.............................................................................................................32
13.1.9
13.1.10
13.1.11
13.1.12
13.2
13.2.1
13.2.2
13.2.3
13.2.4
13.2.5
13.2.6
13.2.7
13.2.8
13.2.9
13.2.10
13.2.11
13.2.12
13.2.13
13.2.14
Hold Workshops.............................................................................................................34
13.2.15
14
Purpose......................................................................................................................................36
14.2
14.3
Project Scope.............................................................................................................................36
14.4
Project Objectives......................................................................................................................36
14.5
14.6
Architecture Vision....................................................................................................................37
14.6.1
Architecture Content..........................................................................................................37
14.7
14.8
List of Figures
Figure 1: Smart Grid an Overview..............................................................................................................2
Figure 2: Stakeholder power grid................................................................................................................9
Figure 3: Strategy Canvas for Smart Grid.................................................................................................12
Figure 4: Strategy Canvas for Smart Grid Ottawa.....................................................................................12
Figure 5: Business goals for smart grid.....................................................................................................14
Figure 6: Transformation assessment rubric..............................................................................................21
Figure 7: Smart Grid .................................................................................................................................26
Figure 8: Smart Grid Conceptual Model....................................................................................................27
Figure 9: Balance Score Card for Smart Grid Performance.......................................................................29
Figure 10: Conceptual Architecture for smart grid....................................................................................37
List of Tables
Table 1: Stakeholder map..........................................................................................................................10
Table 2: Business Transformation Summary.............................................................................................22
Table 3: The architecture principles and key statements on how to achieve the goals...............................24
Table 4: Smart Grid services and characteristics........................................................................................28
Table 5: Project Objectives........................................................................................................................36
Table 6: Stakeholders and key concerns....................................................................................................37
Table 7: Risk Mitigation for business Transformation...............................................................................38
1.1.4 Vendors
After the tremendous growth in electricity infrastructure during the 1980s, most utilities shed
their R&D arms in order to reduce costs. Hence the utility industry is now reliant on external
technological developers to meet the Smart Grid needs. The vendors should thoroughly
understand the concerns of the major stakeholder customer and should deliver on time.
1.1.5 Utility providers
Ottawas local distribution companies like Hydro One Networks Inc., Hydro Ottawa Limited,
and Ottawa River Power Corporation etc. will have to align their operations, networks and
information systems to be compatible with smart grid infrastructure. This will require monetary
investments which might cause distributors to resist the change. This need to be carefully
handled.
1.1.6 Electricity producers
These are the generators of electricity, for example, Ontario Power Generator. Smart Grid will
accelerate the shift to greener and renewable power generation, reducing the dependence on
fossil fuels. The electricity producers should plan their move to renewable resources side by side
with smart grid implementation, to achieve the goal of environmental performance.
1.1.7 Natural Resources Canada
Natural Resources Canada works to ensure the responsible development of Canadas natural
resources including energy, forests, minerals and metals.11As such, they will keep a close watch
on SG implementation, from an environmental point of view.
1.1.8 Neighboring jurisdictions
The SG technology used should be interoperable with neighboring jurisdictions so as to avoid
cascading of power black outs. The 2003 black out in US, which first started in Ohio, cascaded
to eight US states and one Canadian province. This type of situation can be avoided, or resolved
quickly only when the protocols are interoperable, allowing for communication between
networks. Hence neighboring jurisdictions should be involved in the SG roll out.
Stakeholder
Ability
to
Disrupt
Change
H
H
Current
Understandin
g
Required
Understanding
Current
Commitment
Required
Commitment
Require
Support
Customers
Govt. and
policy makers
(Mayor, City
Council)
Regulators
M
Vendors
M
L
H
H
H
L
H
H
H
H
H
M
M
M
H
M
M
H
H
M
M
Utility
providers
Electricity
producers
NR Canada
Neighboring
Jurisdictions
M
L
M
L
H
M
H
L
H
H
M
M
We have classified each of the stakeholders into a class shown in this power grid, and this is
given in the stakeholder map given below. The means for communicating with each of these
classes are also mentioned in the stakeholder map.
Stakeholder
Key Concerns
Class
Communication Plan
Customers
Keep
Satisfied
Govt/Policy
makers (Mayor,
City Council)
Key
Player
Regulators
Competitiveness,
Productivity
Key
Informed
Vendors
Cost, Interoperable
standards, Technology
Independent Platform,
Timeline
Minimal
Effort
Electricity
Producer
Sustainable energy
generation
Minimal
Effort
Utility Service
Provider
Key
Player
Natural Resources
Canada
Environmental Impact,
Greenhouse Gas Emissions,
Sustainability
Keep
Informed
Neighboring
Jurisdictions
Interoperability
Minimal
Effort
Application Communication
Diagram
10
2 Business Requirements
The key business requirements that are to be identified, which will later be addressed in the
architecture engagement are given below.
2.4 Interoperability
The interoperability to smart grid devices and systems is critical. This calls for the creation of
new standards. The SG infrastructure of the city of Ottawa should be able to communicate with
those of its neighboring jurisdictions, especially when there are any power interruptions. In the
absence of standards, the smart grid technologies will become prematurely obsolete. In Canada,
many stakeholders have identified these issues and are voicing Canadian perspectives through
both American NIST Smart Grid Interoperability panel activities as well as internationally
oriented IEC efforts. A major challenge would be to resolve the discrepancies between NIST and
IEC standards development.
11
3 Strategy Canvas
ELIMINATE
RAISE
Redundancy,
Public involvement,
Aging infrastructure,
Power quality,
Theft,
Power outages
REDUCE
CREATE
Load,
Cost,
Communication protocols,
Worker danger,
Complexity
Figure 3: Strategy Canvas for Smart Grid
12
Business Goals
Wide-area situational awareness
retail supplier or the utility itself. AMI provides customers real-time (or near real-time) pricing of
electricity, and it can help utilities achieve necessary load reductions.
4.1.8 Distribution grid management
Focuses on maximizing performance of feeders, transformers, and other components of
networked distribution systems and integrating with transmission systems and customer
operations. As Smart Grid capabilities, such as AMI and demand response, are developed, and as
large numbers of distributed energy resources and plug-in electric vehicles (PEVs) are deployed,
the automation of distribution systems becomes increasingly more important to the efficient and
reliable operation of the overall power system. The anticipated benefits of distribution grid
management include increased reliability, reductions in peak loads, and improved capabilities for
managing distributed sources of renewable energy.12
12 NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0
13 THE SMART GRID: A PRAGMATIC APPROACH A State-of-Play Discussion Paper Presented by the
Canadian Electricity Association
14
4.3 Constraints
Some of the major constraints are given below:
Absence of interoperability and cyber-security standards: NIST and IEC provide separate
standards and the challenge for us is to identify the differences and try to create a
common ground, which can be implemented.
The need for continuous reassessment and updating of standards: The need for
continuous evolution is very high due to the sensitivity of smart grids when it comes to
security and privacy of customer data.
Data tsunami: The challenge is to produce concrete information useful for quality
decision making from the tera- or peta- bytes of data collected.
Early death: What is now a state of the art system could become obsolete in a few years,
hence the smart grid platform should be designed to be technology independent, allowing
for plug and play.
Replace household appliances: Smart grids require appliances that can communicate
within the Home Area Network to get the maximum benefits. However, convincing
customers to bear with this huge indirect cost will be an uphill task, often leading to
public resistance against the implementation.
Protection of customer privacy: Smart grid will create millions of new hackable points,
enhancing the vulnerability to sabotage. This is a major constraint, especially with respect
to what actions can be used against hackers and customers who breach security
protocols? Should the utility cut them off from service or should police be involved, and
at what level?
Cost of pilot projects: Smart grid implementation involves a high initial cost, and
government funding is very much essential to cover these costs. Hence it is a constraint.
15
Help modernize City of Ottawa electricity system by replacing nearly obsolete meters, and creating the
foundation for supporting new uses of electricity such as electric vehicles, customer generation and micro
grids.
Indicators of readiness
Indicators of readiness
Indicators of readiness
Indicators of readiness
Indicators of readiness
Indicators of readiness
Indicators of readiness
20
Indicators of readiness
Indicators of readiness
21
Each of the readiness factors will be rated using the following elements.
Urgency: If it is determined that a readiness factor is urgent, it means that action is needed
before a transformation initiative can begin.
Readiness Status: Select which best describes the readiness status of each factor.
Low needs substantial work before proceeding
Fair
needs some work before proceeding
Acceptable
some readiness issues exist, no showstoppers
Good
relatively minor issues exist
High
no readiness issues
Degree of Difficulty to Fix: Select which best describes the effort required to overcome any
issues identified.
No action needed
Easy
Moderate
Difficult21
Table 2: Business Transformation Summary
Readiness Factor
Urgency
Readiness
Status
1. Vision
2. Desire/willingness/resolv
e
3. Need
4. Funding
5. Sponsorship and
leadership
6. Stakeholder
Management /Governance
7. Accountability
8. IT capacity to execute
9. Ability to implement and
operate
Urgency
Readiness Status
Urgent
Good
Easy
Urgent
Good
Moderate
Urgent
Fair
Moderate
Urgent
Fair
Moderate
Urgent
Good
Difficult
Urgent
Fair
Difficult
Not Urgent
Good
Moderate
Urgent
Fair
Difficult
7 Clarified Scope
Following are in the scope of Business Transformation Process
- Identifying the right technology partner
- Identifying the right partner for infrastructure.
- Cyber Security
- Analytics for better service delivery
- Providing online support to customer issues
- Developing a detailed set of specific functional, operational and technical requirements
- Participating in technology and industry standards groups.
- Monitoring the progress and results from utilities and incorporate lesson learned into project
planning
23
- Tracking the market evolution of metering technologies, software products, and in-home energy
management offerings
Following are excluded from the scope of Business Transformation process
- In house technology development
- Legislation requirements
- Technical requirements for smart metering
24
Table 3: The architecture principles and key statements on how to achieve the goals 23
Principles
1. Customer Value
2. Coordination
3. Interoperability
4. Security
5. Economic Development
6. Go Green
Statement
Smart Grid must provide benefits to customers
Smart Grid distributors should coordinate and share their
information.
- Sharing information such as lessons learn and results of
pilot projects among distributers help smoothen the
transition and to achieve economic scale.
Adopt recognized industry standards; SCADA, NERC.
- Adopt recognized industry standards will support the
exchange of meaningful and actionable information
between and among smart grid systems and enable
common protocols for operation.
Ensure cyber and physical security to protect data from any
malicious attacks.
- Ensure security of information systems and physical
infrastructure meet recognized standards and up to date.
Encourage economic growth and create more jobs.
- Encourage economic growth and job creation within the
City of Ottawa. Wherever practical, actively encourage
the development and adoption of smart grid products,
services, and innovative solutions from local-based
sources.
Promote and integrate clean energy.
Promote the integration of clean technologies,
conservation, and more efficient use of existing technologies to
reduce the environmental footprint of the electricity and
transportation sectors.
Provide consumers opportunity to provide services back to
the electricity grid such as small scale renewable generation and
storage.
Enable flexible distribution infrastructure to increase
distribution of renewable generation.
23 http://www.ieso.ca/Documents/smart_grid/materials/20100209/MEI%20Smart%20Grid%20Principles%2020100208.pdf
25
Control
10. Education
9 Architecture Vision
Smart Grid incorporates movement from power from generators to different level of consumers
through intelligent grid system by enhancing interactive communication, IT, and secure
monitoring system efficiently. It is also optimized power consumption, manage demands, reduce
outage and yield environmental friendly. Figure below show a high-level communication flow
between different components in Smart Grid.24
24 https://www.csiac.org/journal-article/the-efficacy-and-challenges-of-scada-and-smart-grid-integration/
26
Figure below shows a high-level communication flow between different components in a Smart
Grid
The City of Ottawa Smart Grid domain includes Customer, Market, Service Provider, Operation,
Bulk Generation, Transmission and Distribution which explained in section 6. The domains are
group of business capabilities providing related business function, which required similar skills
and expertise.
The comprehensive high-level architecture needed to support the utility business domains and
common enabling services uses a model that assumes a service-oriented governance process
exists supporting the fundamental characteristics of layered services architecture. These provide
a variety of services for systems and subsystems to accomplish business functions.
Governance provides a framework to define the relationships and processes used to direct and
control grid activities, as well as the actions, authority and metrics used to realize business
benefits while balancing risk versus reward.26
Figure below shows the City of Ottawa utility domains as groupings of common capabilities. A
utility may elect to combine some domains (i.e. distribution and transmission) and plan a single
logical infrastructure to support the Smart Grid.
25 Power Stream Smart Grid, MaRS Market Insights, Ontario Utilities and the Smart Grid: Is there room
for innovation? January 2012
26 Smart Grid Reference Architecture Volume 1, SCECiscoIBM SGRA Team July 14,
2011
27
Governance
Netw
ork
Oper
ation
s
Enter
prise
Mgnt
Distrib
ution
Market
Service
Provider
Netw
Operat
Operations
ork
ions
Exten
Planni
sion
ng and
Recor
Plann
optimi
d
&
ing
Mainte
zation
Asset
nance
Bulk
Mgnt
and
Energ
Constr
y
uction
Mgnt
Transmi
ssion
Mete
ring
Cust
omer
Servi
ce
Communication
Security
Data Management
Analytics
Smart Grid Control
System Management
Custo
mer
Bulk
Generatio
n
28
Smart Grid services and benefits are linked to the City of Ottawa goals that are driving the Smart
Grid deployment. They can be considered as useful indicators to evaluate the contribution of
projects toward the achievement of the goals.
Table below addresses Smart Grid services and characteristics to define the ideal Smart Grid
Table 4: Smart Grid services and characteristics29
Characteristic
Accommodate all generation and storage
options
Architecture value propositions and KPIs is the indicator of a successful smart grid system that
needs to be addressed and carefully delivered. To ensure the implementation of Smart Grid is
useful to achieve strategic goals, conducting suitable metric and key performance indicator is
critical.
28 Assessing Smart Grid Benefits and Impacts: EU and U.S. Initiatives, Joint Report EC JRC US DOE,
2012
29 Page 21, Table III - Smart Grid services and characteristics to define the ideal Smart Grid, Assessing
Smart Grid Benefits and Impacts: EU and U.S. Initiatives, Joint Report EC JRC US DOE, 2012
29
Figure above represents major Key Performance Indicators to evaluate progress toward strategic
goals, which is progress toward the integration of Smart Grid services. Key indicators in each
group measure the progress also work together to balance sections of strategic goal.
30
32
industry transformations to be in alignment with their best interests, or suffer actions or inactions
by regulators that confound their plans.
33
13.1.10
Start as Soon as Possible
It is vital to start early for a successful business transformation. Time is a critical aspect of
success, given that time, resources and quality are three points of a dynamic triangle that affects
all projects, with each working in a dynamic relationship with the other. Emphasis on any two
will necessarily lead to a relaxation of the third constraint. For instance, if the project must be
completed in a short amount of time and with limited resources, then quality is likely to suffer.
Conversely, if the project must be quick and high quality, then greater resources will be needed.
13.1.11Engage an Experienced Implementation Partner
Use of an experienced partner will lower the risk of a long-term business transformation. When
considering a long-term transformation project, the selection of an external change agent who
can also act as a subject matter expert reduces project risks as follows:
unforeseen outcomes may be anticipated and avoided with the use of best practices and
by leveraging lessons learned from outside the utility;
third party experts can take greater risks, generate a sense of urgency and push the project
harder than an internal team can; and
a third party partner lowers political risk and second-guessing later in the project, when
difficult decisions are encountered, or when public doubts arise
13.1.12
Seek Strategic Partnerships to Create Market Advantage
As change accelerates, it will become more and more difficult for a utility to do all that is
necessary to cope, without outside help.
34
35
13.2.15
Develop a Competency in Partnering
We recommend that the City of Ottawa establish strategic partnering as a core competency and
work to develop its internal capacity to partner. As the City of Ottawa proceeds with its Energy
Service Provider business model and builds a Smart Grid, it will have increasing opportunities to
partner with companies whose business capabilities and business strategies align well with its
own.31
Objectives
Description
Wide-area situational
awareness
Cut energy use during times of peak demand or when power reliability is
at risk.
Energy storage
Electric transportation
Cyber security
Network communications
Advanced metering
infrastructure (AMI)
Distribution grid
management
37
Stakeholder
Key Concerns
Customers
Mayor and City Council
Govt/Policy makers
Regulators
Vendors
Electricity Producer
Utility Service Provider
Natural Resources
Canada
Neighboring
Jurisdictions
38
Risk
Transformation
risk
Operations risk
Enterprise risk
Organizational risk
Market risk
Regulatory risk
Description
This broad category incorporates
traditional utility risks as reserve
margins, system outages, cyber
security, market exposure, longterm planning and capital
expenses, etc.
The risk of power backflow on
heavily loaded circuits.
Mitigation Plan
Engage an experienced implementation
partner.
39