November 23, 2024

The Grid Transformation Forum | Moving Towards Grid Modernization

by Matthew Carrara, Doble Engineering
For this issue's Grid Transformation Forum, we had a chance to speak with Matthew Carrara, president of Doble Engineering, about grid modernization: what it is and what the industry is and is not doing to meet the needs for a modernized grid.

EET&D – In simple terms, can you explain the concept of grid modernization and digitalization?

Carrara – Grid modernization is the process of updating and strengthening the existing power grid infrastructure to meet the demands of today's digital age. This means integrating technologies and digital solutions that make the grid more efficient, reliable and sustainable.

For example, instead of just delivering electricity from point A to point B, a modernized grid can enable communication with various devices to optimize energy usage, detect faults before damage is done to components and integrate alternative energy sources more effectively. It's like upgrading from an old flip phone to a smartphone. It's not just about making calls anymore — it's about accessing a whole world of possibilities at your fingertips. This allows for better management of energy resources and improved reliability through real-time monitoring and control systems.

EET&D – How long has Doble had its strategy for grid modernization in place?

Carrara – Doble has been working on grid modernization for over twenty years. Our strategy focuses on advancing automated monitoring, diagnostic and test systems to help utilities operate smarter and more efficiently. In the late 1990s, Doble began creating products to connect utility equipment digitally and monitor it remotely. This laid the foundation for enhanced supervision of critical assets and over the years, Doble expanded its online monitoring solutions like the Insulation Defect Analyzer (IDB) which was released in 1998 and allowed utilities to monitor bushings more effectively.

We’ve continued to build on that foundation over the years, offering more insights into the condition of utility assets in real-time. By providing systems that assess oil conditions through DGA monitors, for example, we’re able to give utilities a means of knowing their next move in maintaining the performance of transformers. Our focus is also on the digital transformation of protection and control where IEC 61850 is playing a role. Doble's grid modernization strategy is dynamic and driven by a commitment to innovation and empowering utility professionals with accurate information and the right tools for the job.

EET&D – Describe how Doble has prepared for and executed its grid modernization efforts.

Carrara – One core piece of our modernization strategy is active participation in IEEE, IEC and other industry organizations. This way, we’re not only keeping a pulse on technology standards but also gaining insights regarding trends that influence the direction our products and services take to address industry needs.

We also collaborate with partners and engage the entities we serve – power and utility companies, commercial and industrial operations, colleges and universities – on many fronts. Clear communication is key here as grid modernization efforts require meticulous planning, interdepartmental coordination and input from key decision-makers to deploy new technologies, upgrade infrastructure and develop the workforce effectively.

EET&D – With more industry partners getting on board with grid modernization, what do you think is the most critical point they should consider before taking the next step?

Carrara – When strategizing for grid modernization, industry partners, or in this case utilities, must establish alignment across key areas to facilitate a smooth transition. Implementing a top-down mandate that includes specific standards is usually the first step. This ensures that the plans to modernize are led by one vision and that the utility’s data strategy is supported by a framework that adheres to best practices and regulatory requirements.

Utilities must also truly understand their specific business needs and challenges in order to make the best decisions. Working closely with experts and vendors who possess a deep understanding of industry standards, challenges and equipment can be a critical step to getting utilities on track to modernization. However, it’s important to remember that what works for one utility may not necessarily be suitable for another.

For example, a substation situated in the cold climate of Canada will present different requirements and challenges compared to one in the desert region of Utah. Their digital strategies will be different, and the most advanced or digitalized solution may not always make the most business sense. Industry partners should engage in discussions with experts to identify the best solutions for the circumstances of each utility, ensuring that the money invested in digital solutions is allocated to areas where they will yield the greatest benefits. My advice is this: review the standards, align your strategy, engage with experts and have a business justification for every decision you make.

EET&D – What happens to those industry partners who are behind in their efforts to modernize their processes?

Carrara – A measured approach is a good way toward modernization. It can offer an opportunity to learn from early adopters and leapfrog past some of the struggles with ineffective technologies or strategies by benefiting from lessons learned.

However, the longer the delay in modernizing, the greater their potential negative consequences become. For instance, failing to improve efficiency offered by modern software tools could risk falling behind on NERC compliance standards, for example, that risk financial penalties organizations simply can’t afford with so many challenges already straining their resources. Additionally, delayed modernization can exacerbate workforce and skillset issues down the road, further constrain budgets and complicate adapting to industry demands.

EET&D – What are the proper steps industry leaders like Doble have taken to make progress in their efforts toward digitalization and grid modernization?

Carrara – At Doble, we know the importance of collaboration and the insights we gather from analyzing market trends. We have the benefit of high exposure and reach into the industry which offers insight into what utilities and other key players are doing. Traditionally, utilities have operated in isolation, each managing their challenges independently. However, we've observed a shift towards greater openness to collaboration. As a result, we’re actively engaging with utilities on a personalized level, cultivating partnerships and gaining insights into their unique needs and preferences.

We've developed systems that improve asset management, protection and control testing and online condition monitoring which allow utilities to make data-driven and informed decisions that enhance the performance of their assets while creating new analytics we can learn from. The more we continue to crowdsource, like we do with our expansive database of transformer test and diagnostic data, the smarter we can make our systems and solutions.

Another priority for us is taking steps to ensure that our products are flexible. The industry is evolving constantly, and we want our products– even our software– to interconnect with other systems as part of a larger platform and evolve along with our customers, instead of acting as piecemeal offerings that operate in data siloes.

EET&D – What are the most critical gaps in the utility space that need to be addressed?

Carrara – One of the main challenges in the utility space is the shortage of skilled workers. This gap in the workforce is causing utilities to stay even more entrenched in traditional approaches and limiting their ability to grow and adapt.

The shortage of skilled cybersecurity experts, in particular, poses an obstacle for utilities. A lack of cybersecurity expertise can not only leave systems vulnerable to cyberattacks but also creates much longer vetting and validating processes during cybersecurity review as workers are often learning on the job. Addressing these gaps requires investment in workforce development and training, but also more awareness about the need for cybersecurity experts in the utility space especially as critical infrastructure becomes a key target for cyber threats. Focusing on training and development along with attracting and retaining the next generation of workers will be vital to ensuring the industry has the right resources and tools to handle modern grid infrastructure effectively.

EET&D – What encourages you about how the industry is shifting towards a modernized grid?

Carrara – The industry's move toward a modernized grid is promising. Some key developments are trending towards more flexible systems and improved interfacing, like with APIs. Many providers are becoming more aware of utilities' needs, offering customized solutions that match industry requirements. This teamwork between vendors is making it easier for systems to work together.

The rise of online condition monitoring platforms also marks a big step forward in grid modernization. While these platforms have been around for a while, recent improvements have made them essential for utilities. Moving from offline to real-time monitoring helps utilities save money and work more efficiently. Plus, the fact that these platforms are now widely used shows they're reliable and offer real business value.

The increased focus on power programs within schools and universities and collaboration with the industry utilities is also encouraging. This teamwork is progressing computer science and power engineering skills that the industry needs, but also encourages innovation and improvements in power systems that the industry needs to keep moving forward.

As utilities in the industry continue to adapt to and team up over modernization efforts, we'll keep seeing progress toward a more resilient, efficient and sustainable energy infrastructure.

EET&D – What concerns you about the pace at which the industry is/is not embracing grid modernization?

Carrara – Progress in grid modernization is clear, but there are still concerns about how fast the industry is adopting these new technologies. Even though they bring tangible benefits, challenges like not having enough skilled workers paired with cybersecurity issues could hold initiatives back.

One concern is not having enough skilled people who know how to work with modern grid technologies. There's a high demand for these experts, but not enough of them to go around. This makes it hard for utilities to hire and keep the people they need to push their modernization plans forward. This scarcity creates barriers for the industry to come up with new ideas and keep up with changes.

Cybersecurity is another big worry for utilities as they move to more digital systems. More and more cyber threats are targeting critical infrastructure like the power grid. To keep their systems and data safe, utilities need to focus on strong cybersecurity measures that don’t disrupt workers. Getting the job done while keeping cyber systems secure is crucial.

EET&D – What other comments would you like to add?

Carrara – I recently had the opportunity to open our annual Client Conference and tried to put in perspective what’s really going on in its simplest terms. At the highest level, the industry is evolving as the demand for electricity is expected to grow nearly 5% nationwide over the next five years, nearly twice as much as previously estimated. So, think about this, funding is approved based on anticipated growth, utility budgets are built based on that same number and then the realization sets in that 2x more is what is really needed.

Here are the facts:

  • Data center growth is being supercharged by the rise of artificial intelligence: 2.5% of current load – expected to be 3X in five years.
  • Growth in Industrialization/manufacturing: 15% growth over the next five years.
  • Electrification of transportation and buildings is building momentum: 10% growth over the next five years.
  • Increases in the frequency and severity of extreme weather events.

Add all of that on an outdated power grid, couple that with lengthy permit processes, processing time it takes for IRA funding to trickle into the market, component shortages and labor shortages and you can now see why it’s a daily struggle to adapt the grid to today’s requirements.

Matthew Carrara is president of Doble Engineering and ESCO Utility Solutions Group (USG) and leads Doble’s vision and growth strategy. He has more than 30 years of experience across the process control, measurement and materials properties analysis industries and most recently served as vice president of Process Analyzers and Instrumentation at Schneider Electric. Carrara is passionate about mentorship and driving transformational change for the future of power and utilities.