Figure 14. <strong>Smart</strong> gridproduct providersElectrical equipmentmanufacturers(Production, transformationand protection equipment)<strong>Smart</strong> gridproductsICT industry(Communication equipment,software and datamanagement, cyber security)zzzzzzzzzzzzPhasor measurement units and other sensorsthat increase wide-area situational awareness.Distribution grid automation and integrationof renewable resources.Interconnection of energy storage.Communication with electric vehicles tomanage charging.Data communication in the smart grid.Cyber security.Benefits of interoperabilitySource: Canmet Energy/Natural Resources Canada(not previously published)International perspective onstandardsVariations in equipment and systems to meetdiffering national standards add cost; thiseventually gets passed on to consumers.International standards are needed to promotesupplier competition and expand the range ofoptions available to utilities, resulting ultimately inlower costs for consumers. Connection of nationalelectric grids with those of adjacent countries – asin the Americas and in Europe, for example – willalso be facilitated by expanded internationalstandards. For all these reasons, it is in the interestof countries developing smart grids to collaborateon international standards.<strong>Smart</strong> grids will eventually require hundreds ofstandards to be completely specified. Some of thehighest priority areas include: 20zzzzBuilding industry(HVAC,energy managementsystems)Advanced metering infrastructure (AMI).Interfaces between the grid and the customerdomain to support demand response andenergy efficiency applications.20 Adapted from NIST, 2010.Consumer products(Electronics, appliances,automotive)KEY POINT: A broad range of product andservice providers who have not workedtogether in the past will have to collaboratein smart grids deployment.Interoperability refers to the ability of two ormore networks, systems, devices, applications orcomponents to communicate and operate togethereffectively, securely, and without significant userintervention. The evolution of telecommunicationnetworks and the Internet over the last 40 yearshas demonstrated the benefits of having robustinteroperability standards for large infrastructuresystems. Standards prevent prematureobsolescence, facilitate future upgrades and ensuresystems can be scaled up for larger deployments.Standards can also provide for backwardcompatibility, integrating new investmentswithexisting systems. Standards are neededto support the development of mass markets forsmart appliances and electric vehicles that cancommunicate with the grid regardless of locationor service provider. The introduction of informationtechnologies in the smart grid introduces new cybervulnerabilities that must be protected against bythe rigorous application of cyber security standards.Standards will also protect privacy while enablingcustomers to securely access information on theirown energy consumption.Highlights of ongoing activitiesAt the international level, technical standardsunderpinning the smart grid are being developedby several organisations. 21 Since the standardsall need to work together to support an overallsystem, co-ordination of efforts by theseorganisations is critically important.In the United States, the National Institute ofStandards and Technology (NIST) has beenleading a major co-ordination programme, whichhas developed and published the Release 1.021 Including International Electrotechnical Commission (IEC),International Institute of Electrical and Electronics Engineers(IEEE), International Organization for Standardization (ISO),International Telecommunications Union StandardizationSector (ITU-T), and many other.32 Technology <strong>Roadmap</strong>s <strong>Smart</strong> grids© OECD/IEA, 2010
Interoperability Framework for smart grids. NISThas co-operated with many other countries thatare working on smart grids to share work andfacilitate collaboration, and has also establisheda new independent organisation, the <strong>Smart</strong> <strong>Grid</strong>Interoperability Panel. Nearly 600 companiesand organisations from around the world areparticipating in the panel, which is co-ordinatingthe work of over 20 standards developmentorganisations, including those listed above.In Europe, a European Joint Working Group forStandardisation of <strong>Smart</strong> <strong><strong>Grid</strong>s</strong> has recently beenestablished in which CEN, CENELEC, ETSI 22 andthe European Commission are participating.Japan has developed an initial standards roadmapfor smart grids and has also formed a <strong>Smart</strong>Community Alliance, which has extended theconcept of smart grids beyond the electric systemto encompass energy efficiency and efficientmanagement of other resources, such as water,gas and transportation. The government of Koreahas announced a plan to build a national smartgrid network and is beginning work on a standardsroadmap. In China, the State <strong>Grid</strong> Corporation hasdeveloped a draft Framework and <strong>Roadmap</strong> forStrong and <strong>Smart</strong> <strong>Grid</strong> Standards.The major economies are all contributing to thedevelopment of international standards uponwhich national standards can be based. Continuedcommunication and collaboration will createexcellent prospects for international harmonisationof many smart grid standards, especially thosedealing with the new information aspects of thegrid, while taking into account the diversity ofinfrastructure requirements around the world.22 European Committee for Standardization (CEN), EuropeanCommittee for Electrotechnical Standardization (CENELEC),European Telecommunications Standards Institute (ETSI).Technology development : actions and milestones33© OECD/IEA, 2010