Distributed Intelligence for Cost-Effective and Reliable Distribution Network Operation
Deliverable (D) No: 8.2
SWOT-Analysis of applied technologies and solutions Author: DNV GL Date: 09.03.2016 Version: 3
www.discern.eu
The research leading to these results has received funding from the European Union Seventh Framework Programme (FP7/2007-2013) under grant agreement
No. 308913.
Confidential (Y / N): N
D8.2 SWOT analysis of applied technologies and solutions
DISCERN_WP8_D8 2_V3
Title of the Deliverable
SWOT-Analysis of applied technologies and solutions
WP number WP title WP leader
8 Economic viability, business cases, recommendations
DNV GL
Task title T8.4 SWOT-Analysis of applied technologies and solutions
Main Author Anna Bellot, Lutz Itschert, Alan Birch / DNV GL
Project partners involved
Dr. Alan Birch, DNV GL Raúl Bachiller / IBDR Carmen Calpe / RWE Dr. Oliver Franz / RWE Olaf Neumann / RWE Marius Storp / RWE Sarah Rigby / SSEPD Fernando Salazar Saez / UFD Angel Yunta Huete / UFD Eva Alvarez Gonzalez / UFD Ying He / VTF
Type (Distribution level)
PU, Public
PP, Restricted to other program participants (including the Commission Services)
RE, Restricted to other a group specified by the consortium (including the Commission Services)
CO, Confidential, only for members of the consortium (including the Commission Services)
Status
In Process
In Revision
Approved
Further information www.discern.eu
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Executive Summary
The highly industrialized European economy requires high quality power supply at all times with a high
degree of reliability. The European Distribution System Operators (DSOs) must provide this service in
an efficient manner within the relevant regulatory framework. At the same time, connection of
distributed generation to the grid poses great challenges to the DSOs. Therefore, “smart” distribution
grids will become the backbone of all endeavours to alter the patterns of power generation and
consumption in Europe.
A key part of DISCERN was a series of demonstration projects (demo-sites) to test and evaluate
several smart grid technical solutions. A SWOT-Analysis was developed and performed in order to
support the decision-making processes of DSOs evaluating the impact of each solution and
determining if the relative merits of each solution could be compared to other solutions. This
qualitative analysis provides a structured approach to determine the strengths and weaknesses,
opportunities and threats of the DISCERN technical solutions. In detail, the analysis answers which
decision parameters are relevant for the implementation of smart grid-enabling technologies functions
and the related automation and defines the advantages and disadvantages of these strategic decision
options. The SWOT-Analysis identifies parameters which can be used by DSOs, vendors (research &
development) and regulators in order to support, promote and influence Smart Grid development.
The SWOT-Analysis has been executed using a new and enhanced approach that combines the
SWOT approach with methodological approaches of DISCERN and already documented partial
project results (e.g. “New system functionality” [D4.2] presenting the new system functionality
implemented during the project in the demo-sites or “DISCERN guide for facilitating the replication and
scalability of the solutions” [D5.2]) . By using the Smart Grid Architecture Model (SGAM) framework
(“Tool support for managing Use Cases and SGAM models” [D2-3.2]) the SWOT analysis documents
the strengths and weaknesses, opportunities and threats involved using a mapping to the SGAM
levels for each of the solutions implemented within DISCERN. This not only provides a new level of
understanding to the analysis, it aids communication between all interested parties and provides
clarity for the potential further use both of the analysis framework and of the findings from this analysis
of the DISCERN solutions that are relevant to decisions to be made by other DSOs on replicating or
adapting the solutions.
The main findings of the analysis - besides the current lack of the level of maturity for Smart Grid
technologies as new developed and introduced components, including the market for such
components - highlight the DSOs’ need to stabilize and improve the end-to-end telecommunication
infrastructure, especially wireless and wired (PLC) communication. A further important outcome is the
relationship of the deployment of smart grid components (new technologies) to regulatory drivers
including regulated CAPEX, OPEX incentives, as well as setting the framework for data-management
related regulation.
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Table of contents Executive Summary .............................................................................................................................. i Table of contents .................................................................................................................................. ii List of figures ........................................................................................................................................ iii List of tables ......................................................................................................................................... iv Abbreviations and Acronyms .............................................................................................................. v 1 Introduction .................................................................................................................................... 1
1.1. Background ............................................................................................................................ 1 1.2. Scope of the document ........................................................................................................ 2 1.3. Structure of the document ................................................................................................... 2
2 Methodology .................................................................................................................................. 3 2.1 Main objectives of SWOT .................................................................................................... 3 2.2 Subject of analyses .............................................................................................................. 5 2.3 Development of SWOT-Template ...................................................................................... 6 2.4 Analysis of results ................................................................................................................. 8 2.5 Summary .............................................................................................................................. 13
3 SWOT-Analysis on Use Case level per sub-functionality..................................................... 14 3.1 B6 – Enhanced monitoring and control of MV/LV network........................................... 14
3.1.1 Discern_UFD_Leader_B6 ......................................................................................... 14 3.1.2 DISCERN_IBDR_Leader_B6.................................................................................... 18 3.1.3 Discern_RWE_Leader_B6 ........................................................................................ 21 3.1.4 Discern_VTF_Learner_B6 ......................................................................................... 25 3.1.5 Summary ...................................................................................................................... 28
3.2 B7bd – Real time monitoring of LV grid .......................................................................... 30 3.2.1 Discern_UFD_Leader_B7bd ..................................................................................... 30 3.2.2 Discern_RWE_Leader_B7bd .................................................................................... 33 3.2.3 Discern_SSEPD_Leader_B7bd................................................................................ 37 3.2.4 DISCERN_IBDR_Learner_B7bd .............................................................................. 40 3.2.5 Summary ...................................................................................................................... 43
3.3 B9a – Optimized AMR data collection and analysis using virtualized & physical concentrators ................................................................................................................................... 45
3.3.1 Discern_VTF_Leader_B9a ........................................................................................ 45 3.3.2 Discern_UFD_Learner_B9a ...................................................................................... 50 3.3.3 Summary ...................................................................................................................... 53
3.4 B9b – Calculation and separation of non-technical losses........................................... 54 3.4.1 Discern_IBDR_Leader_B9b ...................................................................................... 54 3.4.2 Discern_UFD_Learner_B9b ...................................................................................... 57 3.4.3 Summary ...................................................................................................................... 59
3.5 Summary of results............................................................................................................. 60 3.5.1 Strengths and Weaknesses ...................................................................................... 60 3.5.2 Opportunities and Threats ......................................................................................... 61
4 Conclusion: Implications for overall strategy .......................................................................... 63 5 References .................................................................................................................................. 67
5.1 Project documents ................................................................................................................. 67 5.2 External documents ............................................................................................................... 67
6 Revisions ...................................................................................................................................... 68 Appendices .......................................................................................................................................... 69
Appendix A Template SWOT Analysis ........................................................................................ 69
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List of figures
FIGURE 2-1 SWOT-ANALYSIS (GENERAL APPROACH) ................................................................. 4
FIGURE 2-2 SWOT-APPROACH IN DISCERN ............................................................................. 5
FIGURE 2-3 USE CASES SELECTED FOR THE SWOT-ANALYSIS.................................................... 6
FIGURE 2-4 SWOT-QUESTIONNAIRE .......................................................................................... 8
FIGURE 2-5 EXAMPLE FOR SWOT-MATRIX ................................................................................. 9
FIGURE 2-6 EXAMPLE FOR EVALUATION OF SWOT-INTERVIEWS ON USE CASE LEVEL ................ 10
FIGURE 2-7 EXAMPLE FOR EVALUATION ON SUB-FUNCTIONALITY LEVEL ...................................... 12
FIGURE 3-1 SWOT-MATRIX FOR DISCERN_UFD_LEADER_B6 USE CASE .............................. 17
FIGURE 3-2 SWOT-MATRIX FOR DISCERN_IBDR_LEADER_B6 USE CASE ............................. 20
FIGURE 3-3 SWOT-MATRIX FOR DISCERN_RWE_LEADER_B6 USE CASE ............................. 24
FIGURE 3-4 SWOT-MATRIX FOR DISCERN_VTF_LEARNER_B6 USE CASE ............................. 27
FIGURE 3-5 SWOT-MATRIX FOR DISCERN_UFD_LEADER_B7BD USE CASE .......................... 32
FIGURE 3-6 SWOT-MATRIX FOR DISCERN_RWE_LEADER_B7BD USE CASE ......................... 36
FIGURE 3-7 SWOT-MATRIX FOR DISCERN_SSEPD_LEADER_B7BD USE CASE ..................... 39
FIGURE 3-8 SWOT-MATRIX FOR DISCERN_IBDR_LEARNER_B7BD USE CASE ....................... 42
FIGURE 3-9 SWOT-MATRIX FOR DISCERN_VTF_LEADER_B9A USE CASE ............................. 49
FIGURE 3-10 SWOT-MATRIX FOR DISCERN_UFD_LEARNER_B9A USE CASE ........................ 52
FIGURE 3-11 SWOT-MATRIX FOR DISCERN_IBDR_LEADER_B9B USE CASE ......................... 56
FIGURE 3-12 SWOT-MATRIX FOR DISCERN_UFD_LEARNER_B9B USE CASE ........................ 58
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List of tables
TABLE 1 ACRONYMS .................................................................................................................. V
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Abbreviations and Acronyms
Table 01 Acronyms
AMR Advanced Meter Reading
CAPEX Capital expenditures
CBA Cost-Benefit-Analysis
COM600 all-in-one communication gateway, automation platform and
user interface solution for utility and industrial distribution
substations
DSO Distribution System Operator
EEGI European Electricity Grid Initiative
EU European Union
FPI Fault Passage Indicator
HEC Home Energy Controllers
ICT Information and Communication Technology
IED Intelligent Electronic Devices
IBDR Iberdrola
KPI Key performance indicator
LV Low voltage
MV Medium voltage
NTVV New Thames Valley Vision
OPEX Operational Expenditures
RWE RWE Deutschland
SCADA Supervisory Control and Data Acquisition (Control centre
application)
SGAM Smart Grid Architecture Model
SM Smart Meters
SmOp Smart Operator
SS Secondary Substation
SSEPD Scottish and Southern Energy Power Distribution
SWOT-
Analysis
Analysis of Strengths, Weaknesses Opportunities and Threats
UFD Unión Fenosa Distribución
VTF Vattenfall
WAC Wide Area Control
WP Work Package
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1 Introduction
The SWOT-Analysis developed and applied within the DISCERN project provides a qualitative evaluation of
the technical solutions within the different Use Cases developed for the DISCERN sub-functionalities,
identifying their specific Strengths, Weaknesses, Opportunities and Threats. The approach analyses the
advantages and disadvantages of the different aspects of each Use Case solution. This document presents
this analytical review of the technical aspects of the demonstration projects (demo-sites) and their Use
Cases, but also includes economical, regulatory and social aspects. In detail, this SWOT analysis delivers
criteria for strategic decisions defining advantages and disadvantages of these options. The evaluation of
the different functionalities of the demo-sites projects based on a proven methodology and approach is the
main aim of this analysis, with a view to determining outcomes of the projects that may be shared with other
parties.
In order to meet the requirements of the DISCERN project with respect to involving different stakeholders
from different industries and countries, the SWOT-methodology identified from business economics theory
was adapted and enhanced by DISCERN, specifically for use with Smart Grid projects.
1.1. Background
The highly industrialised European economy requires a high quality and reliable electric power supply. The
European DSOs are monopoly service providers and so are regulated entities and must provide electricity
distribution services to their customers in a cost effective and efficient manner. At the same time integration
of distributed generation poses great challenges to the DSOs. Therefore, “smart” distribution grids will
become the backbone of all endeavours to change the patterns of power generation and consumption in
Europe. As the EU Commission Task Force for Smart Grids as well as the EEGI (European Electricity Grid
Initiative) have identified, Smart Grids will have a number of different advanced functionalities. A DSO will
need to determine which functionalities they need and which technological options exist for implementation
of these and their level of suitability for wide scale deployment.
One the main objectives of DISCERN was to identify and specify a well-defined subset of sub-functionalities
as needed for cost-effective distribution network operation, and to evaluate the project’s demo-sites through
business cases and KPIs.
This deliverable describes strengths and weaknesses of the technical solutions deployed by DSOs and
assembled within DISCERN, as well as the opportunities and threats to the future implementation of these
solutions, as based on the SWOT-Analysis undertaken to evaluate the demo-sites. This complements the
economic evaluation presented by deliverable [D8.1] within WP8 “Economic viability, business cases,
recommendations“.
In detail, the analysis identifies the options relevant for the centralised or decentralised automation, and
defines the advantages and disadvantages of these options in relation to the smart grid sub-functionalities.
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1.2. Scope of the document
This deliverable D8.2 provides an assessment of the technical solutions developed and implemented in the
demo-sites by the DISCERN DSO partners.
The SWOT-Analysis focuses on internal (strengths / weaknesses) as well as external (opportunities /
threats) aspects. The analysis has been conducted on a Use Case-level based on experiences of demo-
sites, but is not limited to these findings. Further, the analysis considers each level of the SGAM framework
in turn, to clearly consider the difference facets of a solution in turn. Results of the SWOT-Analysis will
reflect technical best practices as well as overall implications for the design of the LV and MV grid according
to the changing “external surrounding world”.
1.3. Structure of the document
The document comprises four main sections:
Section 1 - Introduction - this section;
Section 2 - Methodology - describing the approach that was developed specifically for the DISCERN
project analysis;
Section 3 - SWOT-Analysis on Use Cases per sub-functionality - outcomes of the analysis per Use
Case based on the individual responses, and
Section 4 - Conclusion - summary of the lessons learned and final outcomes.
The introduction describes the project overall and the scope of this deliverable. In section 2 essential
aspects of the SWOT-Analysis and the methodology used for the analysis is described. The SWOT-Analysis
of the individual Uses Cases and their summarization at sub-functionality level is detailed in section 3.
Section 4 contains the conclusions and implications related to the results and outcomes of this analysis.
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2 Methodology
This chapter describes the process of developing the approach to determine the strengths and weaknesses
of the demo-sites technical solutions as well as their relevant opportunities and threats. It also provides an
overview of the taken steps in order to develop a template to facilitate the SWOT-Analysis.
2.1 Main objectives of SWOT
SWOT analysis is a standardised qualitative analysis tool that provides a structured approach to evaluate
the strengths, weaknesses, opportunities and threats associated with a development project (or new
business venture). A SWOT analysis can be carried out for an individual project element or overall project. It
involves specifying the overall objective of the project and identifying the internal and external factors that
are favourable and unfavourable to help achieve project objectives. The degree to which the project maps to
its internal and external environments is expressed by the concept of strategic fit.
The SWOT elements are defined as:
Strengths: characteristics of the development project that give it an advantage over others.
Weaknesses: characteristics that place the project at a disadvantage relative to others.
Opportunities: elements that the project could exploit to its advantage.
Threats: elements in the environment that could cause problems for the development or
deployment of the project.
Identification of SWOT elements is useful and important because they can inform later actions in planning to
achieve the objective of the development project, and help inform high-level and detailed decisions.
The systematic assessment of internal successes, failures and potential synergies, in addition to the
possible external drivers can be undertaken by individuals, by teams in workshops and through structured
qualitative interviews. By analysing internal and external conditions to identify future opportunities and risks,
it is possible to identify strategies for dealing with them.
Figure 2-1 shows the general methodology approach for the SWOT-Analysis.
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Figure 2-1 SWOT-Analysis (General approach)
The following objectives and guidelines for the SWOT-Analysis were agreed by DISCERN partners:
1. The SWOT-Analysis qualitatively summarizes the experiences gained during the
implementation and test stages of each of the DISCERN demo-sites.
The SWOT-Analysis was conducted based on qualitative (structured interview) questions. Compared to
quantitative methods, this is much more flexible with regard to eliciting answers from the participants,
though answers are more difficult to compare.
Within the SWOT-Template and especially the SWOT-Questionnaire (section C of the SWOT-template; see
chapter 2.3) open questions concerning the solutions’ strengths and weaknesses, together with external
opportunities and threats, were asked. Quantitative KPIs were not directly surveyed, rather these are
considered as “given” results (ceteris paribus) from the analysis performed in [D8.1].
2. The SWOT-Analysis includes related content from the other Work Packages and assesses
them with respect to the technical objectives of DISCERN.
The goal of the SWOT-Analysis in DISCERN is to assess the techniques which are developed, implemented
and used within the demo-sites. It does not assess the methodologies used within DISCERN (e.g. the
Leader, Learner, Listener approach or the SGAM-Model), but uses these as a framework for the analysis of
the technical solutions implemented at the demo-sites.
3. The SWOT-Analysis is a tool to complement the presentation of demo-site results.
The SWOT-Analysis does not aim to produce new technical content, rather it assesses the technical content
produced within the different WPs of DISCERN based also in the experience of the DSOs.
The results of the following DISCERN WPs have had a significant influence on the SWOT-Analysis:
WP 4 (System Integration concept),
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WP 5 (Process integration model),
WP 6 (Technical evaluation and replicability assessment of the solutions),
WP 7 (Field tests at existing demo-sites) and
WP 8 (CBA, regulation and sensitivity analysis)
The SWOT-Analysis is conducted for each Use Case implemented by Leaders and Learners. Listeners
views were not assessed, since Listeners have not implemented technologies within DISCERN. The
analysis draws on the experiences of the demo-sites through DISCERN, but also broader experiences
where relevant.
The following Figure 2-2 represents this overview of the purpose of the DISCERN SWOT-Approach.
Figure 2-2 SWOT-Approach in DISCERN
The results of the SWOT-Analysis include learning outcome concerning technical solutions for certain
circumstances (“if-sentences”) as well as identified general (overarching) parameters which can be used to
influence success or failure of the technical solutions.
2.2 Subject of analyses
Within DISCERN the methodology to categorise technical solutions into sub-functionalities and Use Cases
following the EEGI framework is applied (see deliverable [D1.1]). All these sub-functionalities are ultimately
aimed at providing the “High-level Smart Grid services” as highlighted by the European Commission Task
Force for Smart Grids in [EU-EG1]. The common High-level Smart Grid service for these sub-functionalities
is referred to as “B - Enhancing efficiency in day-to-day grid operation”. This means that all Use Cases
presented in this section have the same overall objective.
At the outset of DISCERN a number of possible demo-site projects were proposed by the DSOs. These
were all in varying stages of completion, some being in feasibility stage and others having already been
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successfully concluded. Similarly, the DSOs brought forward several topics which they considered valuable
to study within DISCERN. In order to facilitate the exchange of information and provide a consistent means
to define a DSOs commitment level, the concept of Leading, Learning and Listening DSO was introduced in
DISCERN.
While the Leader DSOs have brought projects to DISCERN which had been implemented and were
underway, Learners actually implemented technical solutions of a sub-functionality within the scope of
DISCERN. Listener DSOs followed the sub-functionalities without yet having made any conclusions
regarding their own implementation.
The Leader, Learner, Listener concept is described in detail within Deliverable [D1.1], and the SWOT-
Analysis includes Leaders and Learners Use Cases for the following sub-functionalities:
B6 Enhanced monitoring and control of MV/LV network (chapter 3.1)
B7bd Real time monitoring of LV grid (chapter 3.2)
B9a Optimized AMR data collection and analysis using virtualized as well as physical concentrators
(chapter 3.3)
B9b Calculation and separation of non-technical losses (chapter 3.4)
Figure 2-3 provides an overview of the Use Cases analysed within WP8.
Figure 2-3 Use Cases selected for the SWOT-Analysis
2.3 Development of SWOT-Template
Due to project related characteristics such as the heterogeneous stakeholder group (including DSOs,
vendors, academics and consultants) from different countries, with different demo-projects and objectives, it
was decided to perform the SWOT-Analysis through the use of a SWOT-Template including a structured
SWOT-Questionnaire.
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The SWOT-Template was developed to support the DSOs to describe the demo-projects’ objectives,
characteristics and motivation, and to capture their views as to their strengths, weaknesses, opportunities
and threats of the various aspects of the technical solutions implemented to achieve the Use Cases.
The following section describes the SWOT-Template, including the SWOT-Questionnaire.
The template developed consisted of three sections: Section A and B which were picturing detailed
background information of the Use Cases, and Section C including the actual SWOT-Analysis, asking for
Strengths, Weaknesses, Opportunities and Threats of the solutions.
Section A and B – General Information
Section A and Section B include a general overview on the details of the specific Use Case (Section A),
reporting:
High-level Background on DSO
Relevant Aspects Influencing the Use Case
Description of demo-sites / Grid Environment (for Use Case)
Technical Solution
This section reflects the DSO’s Motivation for implementing a Use Case (Section B) and was designed so
that it could be completely adopted from [D8.1].
For reference the SWOT-Template is included as Appendix A to this document.
Section C SWOT-Questionnaire
Section C of the template comprised the actual SWOT-Analysis of the Use Cases. This section also
included general guidelines for completing the questionnaire.
The SWOT-Questionnaire itself was structured into the four key aspects of the analysis (Strengths,
Weaknesses, Opportunities and Threats) and includes five sections covering the five layers of the Smart
Grid Architecture-Model (SGAM). Guidelines and examples are given for the expected input into this
section. The use of the SGAM framework within the questionnaire adds strength to the analysis as it SGAM
is the language for communicating the demo-site projects amongst DISCERN partners, and provides clarity
as to which aspects of the solution influence the strengths and weaknesses.
The SGAM layers used in the SWOT analysis are as follows:
Business Layer
Function Layer
Information layer
Communication layer
Component layer
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For each of these layers, the strengths, weaknesses, opportunities and threats are evaluated considering
aspects derived from the assessment of:
Relevant data model, or communication protocol (ICT), or domains
Costs
Scalability
Replicability
The following Figure 2-4 shows an extract of the SWOT–Template. The complete SWOT-Template is
provided for information in this document as Appendix A Template SWOT Analysis of this document.
Figure 2-4 SWOT-Questionnaire
2.4 Analysis of results
The template was issued to the DSOs (Leaders and Learners) for completion of the SWOT-Questionnaire
(section C of the SWOT-Template) based on their respective solutions. Additionally interviews undertaken
via conference calls with each of the DSOs were held to clarify responses where necessary and to finish
completion of the questionnaire.
The evaluation process included:
Analysis on Use Case level
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Analysis on sub-functionality level and beyond, as well as
Checks clarifications and confirmation of results (feedback round)
Analysis by Use Case
The SWOT-Analysis results per Use Case were summarised into high level statements for representation in
a SWOT-Matrix. The following Figure 2-5 gives an example of the SWOT-Matrix.
Figure 2-5 Example for SWOT-matrix
Within the matrix key Strengths, Weaknesses, Opportunities and Threats for each Use Case are shown.
With respect to the drivers of the market, DSOs arguments are also identified as being related to:
Technology;
Costs;
Regulatory, or
Customer / society aspects.
Each of the market drivers can influence the development of the solution in one way or another, and so
have influence on the success or failure of the solutions.
The following Figure 2-6 shows an example for the allocation to the markets drivers for
DISCERN_UFD_Leader_B6 Use Case.
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Figure 2-6 Example for Evaluation of SWOT-Interviews on Use Case level
Quantitative Analysis of SWOT-Interviews (Draft)Category
No. Arguments
DIS
CER
N_
UFD
_Le
ade
r_B
6
Tech
no
logy
Eco
no
my
Re
gula
tory
Cu
sto
me
rs /
so
cie
ty
Summary / aggregated argument Specification
1
1.1
Positive Scalability effects due to easy
deployment of devices and
technology .
B5
B6X X Scalability Scalability of solution
1.2Deployment of ICT is (partially) based
on DSO-owned infrastructure. B8 X X Usability ICT build on DSO-owned infrastructure
1.3
Building technology and DSO owned
infrastructure makes it inexpensive to
install and easily replicable to other
DSOs.
B9
B10X X Replicability
Technology and Data model based on DSO owned
infrastructure (easy replicability)
1.4Standardized information data model
eases scalability and replicability.
B12
B13X Interoperability - Standards
Technology and Data model based on standards
(easy replicability)
1.5Centralized information allow
"better" operational decisions. B11 X Usability Improved network operations
1.6
MV network supervision functions
enable other potential smart grid
functions.
B14 X X Usability Enables other smart grid functions
1.7
Better control of the whole grid,
individual areas, outage response,
etc.
B15 X X Usability Improved control of the grid
3.3Improve / smooth network operation
through better monitoring.
D14
D18X Usability
Improve / smooth network operation through better
monitoring
2
2.1Devices need a lot of space for
installation.C5 X Scalability Solution need a lot of physical space for installation
Overview strength of the technologies
Overview weaknesses of the technologies
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As shown in Figure 2-6, the analysis starts with the DSO’s original argument (column B). The argument then
has been assigned to a certain cluster (column D-G), then aggregated (column H) and specified with
respect to further information available (column I). To prevent the loss of relevant information or
misunderstandings SWOT results were supplied to the DSOs as part of the approval process.
Through this process, all arguments were allocated to the four generic market drivers: Technology,
Economy, Regulatory and Customer / Society. This approach on the one hand helps to address certain
arguments to certain stakeholder groups of the project, and on the other hand helps to give a good initial
overview of the types of arguments to external parties
During the evaluation arguments were grouped across the SGAM layers with the combined arguments
providing a consistent presentation of the results of the analysis.
Analysis beyond Use Case level
After performing the analysis at Use Case level, the answers were aggregated in order to summarise
strengths, weaknesses, opportunities and threats for each sub-functionality.
An example for sub-functionality B6 is shown in the following Figure 2-7.
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Figure 2-7 Example for Evaluation on sub-functionality level
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As the figure shows, identical arguments for the different Use Case within one sub-functionality can be
identified (Column K). This helps to identify similarities and differences with respect to strengths and
weaknesses of the applied technologies, and the results show overall parameters which influence success
or failure of the solutions. In the example pictured above, the analysis indicates that one success factor for
Enhanced monitoring and control of MV/LV network (sub-functionality B6) lies within the availability of the
communication infrastructure.
2.5 Summary
The main goal of the SWOT-Analysis in DISCERN was to assess the technical solutions implemented by
both Leaders and Learners within the Demo projects. The analysis was performed using the methodological
approach of DISCERN (e.g. the Leader, Learner, Listener approach based around the SGAM-Model) as a
framework to structure and complete the analysis. This demonstrates the suitability of the tools for further
utilisations related to smart grid evaluation.
The SWOT-Analysis was conducted based on qualitative questions asked within a structured and
standardised SWOT-Template enabling the DSOs to fully describe the adopted solution and provide the
relevant details. However, as the responses were presented at a varying level of technical detail and
relevance, this approach complicates the process of making valid comparisons between responses.
The results of the SWOT-Analysis include learning outcomes concerning technical solutions, together with
overall recommendations related to the external environment and the influence of and interaction with such
things as renewable generation technologies and markets and regulation.
To provide clarity and to support the participants in considering the SWOT aspects of their solutions, the
questionnaire was designed in keeping with the SGAM-Model, (as developed in an earlier part of DISCERN)
to determine the strengths, weaknesses, opportunities and threats of the different technical solutions for
each of the SGAM-layers including Business Layer, Function Layer, Information layer, Communication
layer, and Component layer. For each layer, the analysis considered the technical, cost, scalability and
replicability aspects of the solution.
While aggregating the findings of the individual Use Case related SWOT-Matrixes to sub-functionality level,
it was found that the aggregation only made sense for opportunities and threats. For strengths and
weaknesses the description at a Use Case level could be used in order to assess the differences and
similarities of the technological solutions. In keeping with the objectives of the DISCERN project, this
qualitative analysis of the individual SWOT assessments helps to answer which options are relevant for
centralized / decentralized implementation of DSO functions and the related automation, defining the pros
and cons of these options. Also, the responses to the questions and identification of the SWOT items
provides a set of practical experiences and guidance to interested parties who may wish to adopt the
solutions implemented in DISCERN for their own potential projects.
Looking at the opportunities and threats, the aggregation at sub-functionality level and DISCERN level
identifies key economical, technical, regulatory and social parameters which have an impact on the success
or failure of each of the technical solutions. Following the classification of the arguments within the SWOT-
Matrix, general implications for each of the different stakeholder groups can be developed and detailed.
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3 SWOT-Analysis on Use Case level per sub-
functionality
This section presents and describes the outcomes and results of the SWOT-Analysis undertaken for each of
the DISCERN Use Cases, as described in the previous chapter. During the detailed analysis phase, all
DSOs expressed the view that the analysis of the strengths, weaknesses, opportunities and threats greatly
depends on the network context, the specifics of the Use Case and the reasons for development and
implementation of the solution. Therefore the results described in this report and pictured in the SWOT-
Matrixes (four-quadrant-scheme) cannot be regarded as a “stand alone” assessment of the technical
solutions, but must be seen within the context in which the solution has been developed such as the
technical objectives, size of the implementation and maturity of the solution.
As described in section 2.3strengths, weaknesses, opportunities and threats are at first identified at Use
Case level. Further, the context of the Use Cases is presented alongside the SWOT analysis. For more
detailed insight information concerning the Use Cases, the completed DISCERN Use Case descriptor, as
developed in Work Package 8, for Deliverable [D8.1] can be found in the Appendix. Additionally
Deliverables [D4.1] and [D4.2] provide very detailed descriptions of the DISCERN Use Cases.
After the analysis at Use Case level at the end of each sub-chapter, the strengths and weaknesses of each
solution are set against each other in order to identify similarities and differences. At the same time
opportunities and threats are aggregated and interpreted on the sub-functionality level in order to identify
overarching parameters which have impact on the success or failure of each of the technical solutions.
3.1 B6 – Enhanced monitoring and control of MV/LV network
This sub-functionality refers to solutions aimed at enhancing monitoring and control of power flows and
voltages. The Leading DSOs are UFD (MV monitoring and telecontrolled switches), IBDR (Optimal level of
MV network monitoring and automation) and RWE (Wide Area Control in MV). The Learner that
implemented this new functionality during the project is VTF. SSEPD as Listener carried out a feasibility
analysis of this sub-functionality. The Listener perspective is not presented or analysed in the SWOT since
Listeners have not implemented technologies within DISCERN.
3.1.1 Discern_UFD_Leader_B6
UFD’s Use Case deals with MV network supervision and the operation of tele-controlled switchgear to
perform remote MV network reconfigurations. MV supervision is performed using voltage and current
sensors, as well as Fault Passage Indicators located in MV lines feeding secondary substations. Signals
and alarms generated are sent to central systems.
The status of the network is monitored using Intelligent Electronic Devices, also called MV supervisors. MV
supervisors have RTU (remote terminal unit) functionalities that provide them with communication
capabilities. Measurements and alarms from fault passage indicators are sent to the SCADA system.
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The key steps are:
1. Voltage and current in MV cables feeding secondary substations are measured using sensors.
2. In the case of fault, fault passage indicators signal the presence of a fault and its direction to the MV
supervisor.
3. The MV supervisor sends these fault alarms and directional indications to the SCADA.
4. Operators analyze the information received in the SCADA system. If necessary, the network is
reconfigured by the means of remote operation of telecontrolled switches, following operational
procedures.
5. Switching operations are transmitted to the telecontrolled switchgears.
The SWOT-Analysis for the DISCERN_UFD_Leader_B6 Use Case focusses on the operation of the tele-
controlled switchgears. Strengths and Weaknesses of the switchgears mostly relate to technical and
economic aspects. Opportunities and threats additionally include regulatory and customer / society oriented
arguments.
Strengths and Weaknesses
The strengths of this solution mainly refer to its usability, interoperability, and the scalability and replicability,
whilst weaknesses mainly relate to lifecycle and other aspects related to the maturity of technique.
Looking at the usability of the telecontrolled switchgears, it became apparent that the advantages of the
solution include the improvement of monitoring and control of the grid and so improvement of grid operation
and operational decisions. Additionally the solution enables other smart grid functionalities e.g. by
advancing the solution to deliver required data for state estimation.
With regard to the solution’s scalability and replicability, the devices and the technology are easy to deploy
to additional substations, supported by the fact that the solution is based on DSO owned infrastructure and
a standardized information data model. Complex additional installations seem not to be necessary when
expanding the solution. However, the solution requires a lot of physical space in the individual substations.
This constrains the scalability a little since substations need to have sufficient space to accommodate
installation of the system, which is not always the case. The scaling and replicating of the solution also have
implications for the operational processes and costs, since field crews and engineers who implement the
solution have to be trained, and appropriate documentation has to be prepared.
The technical weaknesses relate also to the lifecycle of the components of the solution and to the maturity
of the chosen technique. The solution is only currently deployed within the demo-project, therefore at
present the DSO (and vendors and academics) do not yet have significant experience and learning. It is
assumed that while gaining experience with the technology in the DSO-environment, knowledge gained will
lead to improvements in technology, extensions of lifecycles and reduction of costs.
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Opportunities and Threats
The opportunities and threats of the telecontrolled switchgear relate mainly to possible changes in the
regulatory framework. As an opportunity, the deployment of devices can help to reduce times for fault
restoration, potentially generating revenue from regulatory incentives. Evolutions in the regulatory
framework to support the installation of such devices (regulatory obligation / incentivisation to install) can
also have a positive influence on the cost-benefit of the solution.
As threats, a major risk relates to the regulatory framework with DSOs fearing a lack of regulatory support
for investments in smart grid related ICT. Expansion and / or improvement of smart grid related
communication (especially in rural areas) is one key parameter for the successful use of the telecontrolled
switchgears. Regulatory changes may also have influence on the cost effectiveness of the solution, e.g. if
the number of devices is set as a requirement by the regulator, cost-effectiveness may not be achieved.
Since the solution handles a lot of grid-related data for monitoring and control, another risk relates to future
data security requirements and legislation, and the need to maintain compliance as this change.
Technology-related opportunities and threats predominantly relate to economies of scale and scope.
Increased application of the solution can lead to more vendors offering the equipment at cheaper prices
(economies of scale). Further, greater experience with the solution should lead to improved solutions
(economies of scope), for example relating to communication protocols and use of open standard data
model. However, such continuous technology evolution will require a range of different technologies to be
maintained and/or upgraded.
Customer / Society related threats include customer outages as it might be necessary to disconnect
customers them from network during installation of new devices. Other outage / security of supply related
risks are related to potential operational problems caused by the integration of distributed generation.
Effects of the expansion of distributed generation have not yet been evaluated.
Last but not least, UFD sees a major chance in using the results of the DISCERN project for the
development of specialized management tools and best practice guidance which can be offered as a
service to other DSOs.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_UFD_Leader_B6 Use Case in Figure
3-1.
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Figure 3-1 SWOT-Matrix for DISCERN_UFD_Leader_B6 Use Case
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3.1.2 DISCERN_IBDR_Leader_B6
The Use Case implemented by IBDR is called “Optimal level of MV network monitoring and automation”.
The methodology proposed supports planning decision makers to establish the optimal level of automation
in MV networks considering a balance between costs and quality of service (based on the regulation). The
optimal solution is not unique throughout the entire network, rather it depends on different circumstances
(e.g. type of network area selected, quality of service objective, investment and historical data of the
analysed portion of MV network), and this distinction is key to optimising investment and resources.
Within the solution, data from applications at operational and enterprise level are used (e.g. historical data
on fault rates, networks parameters and costs of automation units). The analysis of these data combined
with simulations helps to determine an optimal automation level. This Use Case relates more to
development of a procedure than a technical solution. It is worth noting that IBDR has some prior
experience in this area and has deployed MV automation and monitoring solutions for some years.
The requirements for implementing automation in MV networks are increasing. However, the relationship
between investment in automation and quality of service is not linear, and the location and grid topography
could lead to a range of costs for any given number of devices. Moreover, initial investment plans made
some time ago (that could consider higher levels of automation and supervision) may no longer be
affordable due to the recent economic crisis. As such, IBDR have proposed a simulation procedure to
evaluate different scenarios and select a compromised point between costs, number of equipment and
quality of service that could be achieved. The main three steps in the process are:
1. Use average outage values (for example rate of outages in SS, lines, cables...) and unit cost of
work to install telecontrolled equipment (cabinet at SS and breakers at lines) to increase the
automation of the network. These data are managed by the DSO after analysing historical
records taken from their systems.
2. Run simulations to evaluate different scenarios of outages over a simplified MV network portion
3. Selection of compromise solution between cost and quality of service achieved based on the
findings from the simulations.
Strengths and weaknesses of the solution relate mainly to technical aspects, whilst opportunities and threats
also include regulatory aspects.
Strengths and Weaknesses
Technical strengths of the procedure include its usability and replicability, while technical weaknesses relate
to the maturity of the procedure.
Considering the usability, the developed procedure uses data which is already available and can be used for
network monitoring without additional installations. With relation to the simulation process, it is the case that
this helps to establish some base criteria to decide the amount of supervision and automation to deploy in
different areas of the network.
Since ICT and deployment of the procedure is based on well known (industry) standards, the procedure can
be easily replicated to other DSOs.
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Technical weaknesses relate to the maturity of the procedure in the sense that so far the process described
by IBDR has not been performed completely automatic (e.g. in the form of a unique module to launch the
procedure, collect inputs, run simulations and get results automatically).
Additional strengths refer to the simplicity gained through various modifications.
Opportunities and Threats
The opportunities and threats of the procedure refer to the technical aspects and the maturity of the
technique, and to changes in regulatory framework.
The procedure gives a proposal of the amount (percentage) of automation and supervision but not exactly
where the devices need to be installed on the network. As such, further decisions are required after
determining the level of automation and supervision using the proposed procedure. Also, the procedure is
based on simulations that use average failure rates of the main components to simplify the methodology. It
might be that some situations do not reflect these average values, which again would lead to technical
usability problems. However, the simplicity could also be seen as a strength, since the main purpose of the
Use Case is to obtain approximate volumes of automation to be deployed (please see also recommendation
in Deliverable [D7.2]: Monitoring and testing report and recommendations on the most effective and
replicable solutions).
Further, opportunities might arise from the strength that the procedure can be adapted to new regulations
easily.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_IBR_Leader_B6 Use Case - see Figure 3-2.
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Figure 3-2 SWOT-Matrix for DISCERN_IBDR_Leader_B6 Use Case
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3.1.3 Discern_RWE_Leader_B6
The solution proposed by RWE is called “Wide Area Control” (WAC) and its objective is to improve MV
network operation by means of a WAC system that automatically controls the tap position of a power
transformer in a primary substation. The solution helps to stabilize voltages in MV and LV grids. With the
help of the WAC the voltage level of neuralgic measuring points is collected and the tap changer at a
primary substation is automatically operated based on this information, i.e. if the voltage is too high in the
grid, the tap changer is set in a way that reduce the voltage supplied to lower parts of the grid via the
primary substation and vice versa. Furthermore the WAC provides additional benefits through the
improvement of the MV network monitoring and additional hosting capacity of the grid.
Traditionally the tap changer position at the primary substation is regulated based on a voltage
measurement at the secondary side of the transformer itself. Therefore, it is possible that the transformer
tap position is not changed even though the voltage violates the voltage band limits at some nodes in the
downstream grid (MV or LV grid). This happens because in the traditional system, the controller of the tap
changer in the primary substation has no information about the LV grid state. A WAC system can be used to
resolve this problem. In this system only a few neuralgic measuring points on the LV grid (which represent
the MV grid state at the corresponding MV stations) are incorporated for derivation of the ideal tap changer
position.
To implement a WAC system the location of the neuralgic nodes has to be determined. Suitable neuralgic
nodes are identified by load calculations with several scenarios (maximum feed in with low load / minimum
feed in with high load), simulations, operational experience, load forecasts and measurements in the grid.
These nodes have to be equipped with voltage sensors, which are connected via ICT to the SCADA system
in order to include the measured values in the algorithm that determines the optimal tap changer position of
the primary substation.
At the start of the process the measured values are checked in order to validate the measured values to the
associated nodes in the network Next, the maximum voltage difference between the voltage of the nodes
and the nominal voltage is calculated to determine whether there is a violation of the voltage band limits. If
there is a violation the controller will change the tap position. If there are both over voltages and under
voltages, the controller will act in order to fix the overvoltage. Before a switching operation is done, the
controller has to check whether the maximum position of the tap changer already is reached.
In summary, the WAC process consists of three main stages:
1. Collecting data from measuring points;
2. Transferring and processing the data, and
3. Instigating any resulting switching operations, i.e. changing the position of the tap changer if
applicable.
Detailed information concerning the process steps and Use Case can be found in deliverable [D4.2].
The SWOT analysis for Use Case DISCERN_RWE_Leader_B6 focusses on the improvement and
automation of the monitoring and control of the MV networks using the WAC. Strengths and weaknesses of
the WAC mostly relate to technical and economic aspects. Opportunities and threats additionally include
regulatory arguments.
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Strengths and Weaknesses
Technical and economic strengths of the solution mainly relate to its usability, its scalability and replicability,
the technical robustness, the autonomy and the impact on installation and operational costs (CAPEX,
OPEX) of the WAC.
Weaknesses mainly relate to the communication infrastructure, technical lifecycle of ICT devices,
maintenance programs, and other aspects related to the maturity of the technique.
Looking at the usability of the WAC, the control not only helps to improve monitoring and autonomous
control of the MV networks, but also enables other smart grid functionalities, e.g. detection of overloads due
to measurement of reactive and active power; creating real load profiles of LV grids for use in forecasting
and planning.
The replicability of the WAC by other DSOs is a strength due to the small physical size of the equipment, the
data model based on standards, the ICT which is built on DSO-owned infrastructure and therefore can be
reused in a cost-efficient manner, and the low required data volume. However, a lack of space due to
reduced physical size of existing secondary substations may make it difficult to install new IED s and
sensors at some substations, which may have an impact on the scalability of the WAC.
Technical robustness and autonomy are further strengths of the solution. The WAC runs completely
autonomously, however remote control is also possible, which helps to save costs. Additionally, the WAC is
engineered in a way that communication outages of a few measurement devices within times up to 15 min
are uncritical. This is also of benefit as the technology works based on wireless communication which can
equate to lower availability and less reliable communication technology in rural areas. Now withstanding
that, this level of reliability may result in fewer opportunities for implementing further smart grid solutions
using the same communication routes for cost efficiency. So the way of communication could be a subject
of change in future applications. This change could be applied very easily since WAC-application can be run
based on any communication infrastructure / carrier.
With respect to the costs: due to a slim product portfolio (only necessary functions are implemented), the
possibility of using cheap LV technology instead of more expensive MV technology technology (in order to
determine voltages at MV-level), and applying inexpensive standard equipment, the installation and
operation of the WAC seem to be cost efficient. Additionally, using the WAC for resolving problems by
improving both local grid monitoring and control is certainly less expensive than conventional grid
expansion.
In keeping with the Use Case of UFD, technical weaknesses also include shorter lifecycle of the ICT
equipment as compared to other network assets, and specific maintenance programs for the solution.
Opportunities and Threats
The opportunities and threats of the WAC solution mainly refer to technological aspects, especially with
respect to an expansion of the communication infrastructure. Further chances and risks result from changes
in the regulatory framework, and economic aspects.
The technological aspects mainly include the expansion of the communication infrastructure, the widening of
the solution (upgradeability), and are related gaining experiences with the WAC in order to further increase
the maturity of the solution.
Considering the expansion of the communication infrastructure and the use of the ICT, new communication
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standards could increase the availability of IEDs. Also wireline technologies may be applied depending on
the topology of the network (e.g. PLC on MV) and a higher availability of wireless communication in rural
areas would help to improve usability of the solution. Similarly, new technologies and algorithms could help
to reduce number of necessary devices, e.g. the measurement and communication devices could be
integrated as standard for new secondary substations; and the communication infrastructure could be used
to communicate further data such as current or reactive power in order to further improve monitoring and
operation of the grid.
With respect to possible changes in the regulatory framework, this seems to be a major parameter for the
success or failure of the WAC. Opportunities arise especially from regulatory incentives related to OPEX
rather than CAPEX (network expansion), while risks relate to new data-management related regulations. In
this instance, RWE believes that data-management related regulation encompasses two issues:
Data privacy regulation
Data security regulation
Last but not least RWE has already realized the economic opportunity of offering the WAC as a grid service
to other DSOs.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_RWE_Leader_B6 Use Case in Figure
3-3 SWOT-Matrix for DISCERN_RWE_Leader_B6 Use Case
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Figure 3-3 SWOT-Matrix for DISCERN_RWE_Leader_B6 Use Case
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3.1.4 Discern_VTF_Learner_B6
With respect to the sub-functionality B6 Enhanced monitoring and control of MV/LV network, VTF is in the
role of a Learner. The solution implemented within DISCERN is aimed at improving MV network supervision
to improve MV network observability and operation by installing current and voltage sensors and using
telecontrolled switches in secondary substations.
The main objective of the VTF B6 demo-sites is to geographically pinpoint faults in the distribution level
network and use the information from sensors to reduce the duration of customer interruptions, directly
affecting the SAIDI.
During the demonstration the aim will be to gain knowledge on smart grid network operations and find a cost
effective solution for monitoring the MV network using "simple" sensors, and to demonstrate a solution that
reduces SAIDI/SAIFI by faster and more precise fault location, e.g. when a power outage or earth fault
occurs.
The Use Case details the monitoring of MV network status by using Intelligent Electronic Devices (IEDs),
also called MV supervisors. The MV supervisors are connected to voltage sensors (voltage transformer in
feeding substation) and current sensors (current transformer in substation and distributed along the line)
within the demo-site network. Two types of MV supervisors are used: IEDs in the MV switchgear and fault
passage indicators located at key points on the lines. The IEDs have computing capabilities to calculate
power flows and store high-resolution current and voltage data related to network faults. The IED’s will
generate signals and alarms that are sent to the SCADA system where an operator can act on it. The fault
passage indicators provide high resolution measurements of the current and send alarms if a fault current
passes the indicator.
Strengths and weaknesses of the solution mostly relate to technical and economic aspects, but also include
customer related arguments. Opportunities and threats also include regulatory arguments.
Strengths and Weaknesses
Strengths of the solutions mainly refer to its usability, replicability, and the robustness of the technology,
while weaknesses mainly relate to usability related aspects, maintenance intervals and the maturity of the
technique.
The solution fulfils the expected functionalities by allowing better control of the whole grid of individual
areas, outage response, etc. However there are high requirements for implementation of the components.
Additionally the types of FPI used collect no data regularly about MV network voltage and current levels,
and contain no earth fault detection for switch onto fault. In order to gather data for improving the long term
monitoring and control, additional functions would be required. Furthermore the solution chosen is not
optimal for lightly loaded feeders.
With respect to the scalability and replicability, the technology and infrastructure are based on standards
thereby making the technology inexpensive to set up and easy to replicate. Using batteries to provide last
gasp functionality makes the solution robust against outages.
Additional technical weaknesses relate to the maturity of the technology, maintenance intervals and outages
during installation, as the deployment requires quite an extensive and noticeable power outage for
customers.
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Opportunities and Threats
Opportunities and threats refer mainly to economic aspects (installation and operational costs) as well as
technological usability of the solution. Threats also relate to changes in the regulatory framework.
Economic opportunities and threats refer mainly to maturity and market development relating to economies
of scale, the comparison of installation and operational costs with alternatives, and cost relevant ICT-
aspects (economic solution for rural networks).
With respect to economies of scale the solution could be better positioned by development of integrated
equipment and the existence of more vendors. Looking at alternatives with inexpensive equipment costs
gives an opportunity for a more dense deployment of FPI’s for real MV network monitoring, i.e. not only
monitoring at MV level in primary substations by using the relay protections as FPI’s as well. The substation
computer COM600A is cheaper and still locates the distance to faults.
Technology related opportunities mainly relate to the usability and interoperability of the solution. Standard
interface could be used for the communication between the substation computer COM600A, FPI and any
IED with IEC 61850 [D2-3.3]. Data processing may be performed by an operator in both SCADA and in
COM600A, by remote access user interface.
Technology related threats mainly refer to ICT-related issues as well as the level of the maturity of the
technology. The technology depends on availability of public (wireless /wireline) networks. If a public
network is not available this has an impact on the solution’s usability. Furthermore new software in
COM600A for distance to fault calculation is used. This may require further fine tuning and testing before
reaching a reliable and, hence, a manageable commercial product. The developed decentralized solution
may perhaps also be handled by the overlying SCADA system in the future; this would make the hardware
in the substation redundant or even obsolete. The overall deployment cost is quite high, even though the
equipment (FPIs) is cheaper than other more advanced MV network Smart Grid solutions. The total cost of
the deployment process may be larger than the benefits gained if analysed from an investment decision
perspective. A large scale roll-out strategy may not be applicable for this test solution.
Regulatory aspects also relate to the maturity of the solution and the lack of experience, particularly as
changes in regulation might require new data-management and IT security related investments.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_VTF_Learner_B6 Use Case in Figure
3-4.
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Figure 3-4 SWOT-Matrix for DISCERN_VTF_Learner_B6 Use Case
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3.1.5 Summary
Looking at the solutions for improving monitoring and control of the grid for MV networks, the following
sections summarises the similarities and differences of the solution with respect to technical, economic,
regulatory and customer-related aspects.
Technological Aspects
The solutions described present the slightly different technical functionalities and usability-issues aimed at
enhancing monitoring and control of power flows and voltages. While UFD focusses on the improvement of
MV network observability and operation by installing current and voltage sensors as well as telecontrolled
switches in secondary substations, IBDR aimed on determining the optimal automation level based on
procedures using historical data on fault rates and costs of automation units. RWE on the other hand
developed and implemented the WAC to stabilize voltages in medium and low voltage grids, gather
information on the grid and allow automatically operated processes based on this information, while VTFs
solution includes installing current and voltage sensors and use telecontrolled switches in secondary
substations.
All technologies aim to enable easy scalability and replicability of the solutions. Therefore the solutions are
mainly configured based on industry or country-standards and / or are using technology which is already in
use by the DSO. The physical size of the solution is also important, with UFD and RWE citing the need for
solutions that are small enough to be easily installed into substations.
Furthermore autonomy with respect to controllability as well as ICT is identified as important. For example,
RWE points out that remote-control eases autonomy (WAC). With respect to the ICT, most of the DSOs
highlight the importance of stable communication infrastructure. While the solution of RWE due to its
decentralized character can deal with communication outages of up to 15 minutes, more centralized
solutions like that from VTF use batteries to support reliability of communication and components. Similarly,
the solution of UFD depends on reliable communication infrastructure for sending the gathered information
to a centralized documentation system.
With respect to robustness and maturity of technologies all DSOs see further potential for improvement. At
present, all the DSOs identify shorter lifecycles for some of the technologies when compared to traditional
network assets, in addition to higher requirements for maintenances. Furthermore VTF in the role as a
Learner, but also the other DSOs, acknowledge a lack of experience with the technology outside the project.
The Learner Use Case also identifies a weakness with respect to its deployment and configure. This may be
due to lack of learning at present.
Economic strengths and weaknesses
Economic aspects refer to the cost of installation and operation of the technology, but also to the opportunity
costs for network expansion or other aspects that will help improve network operation.
RWE and VTF point out the cost economies of their solutions, stating that whilst there acquisition,
installation, and implementation costs associate with a solution, overall network operational costs are much
lower. Additionally the solution of RWE allows improved decisions for grid expansion supporting more
efficient investment in the network.
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The use of industry and company standards and the use of components and infrastructure already used by
a DSO also have an economic dimension. Less investment is required if technology is already in place or
where standards support the principal of plug-and-play. Further, training costs can be avoided when using
equipment and technology that are already well-known and understood in the company.
Customer related strengths and weaknesses
Customer related strengths and weaknesses include outages during the installation of the devices used
within the VTF solution. This is a major weakness, as this may have an influence on customer acceptance.
It is expected that further experience and maturity of the technology will help to address this weakness and
improve the technology.
Opportunities and threats
The opportunities and threats associated with these solutions relate to the technical functions, costs, ICT
and regulation.
Economic and technical opportunities and threats mostly relate to economies of scale and scope. From the
DSO view point, opportunities include lower future prices for devices (installation and operation),
communication and information technology, and a higher quality of the technology based on increased
knowledge and experience of use.
Further technology related opportunities refer to the improvement of communication technology. In
particular, the improvement, and / or extension of wireless technology in rural areas would improve and
secure network communication and have an impact on the real life ability to monitor and control the grid. For
centralised solutions the necessary extension of the ICT-network (usually performed by third party) can be
source of major threats related to operational risk and uncertainty.
DSOs agree that opportunities and threats for improving the monitoring and control as related to regulation
include both regulatory incentives for a more secure system (less faults and failures with no penalty fees),
and decreased times for fault restoration (both based on improved monitoring and control of grid). However,
most of the DSOs express concerns over regulatory barriers with respect to data collection and storage, and
uncertainty as to the future regulatory support for investments in ICT technologies.
Opportunities and threats with respect to customers relate to situations where customer engagement and
participation is required to allow data gathering.
Last but not least UFD and RWE see the opportunities to achieve benefits through use of the solutions
developed as a commercial grid service proposal to other DSOs within their countries.
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3.2 B7bd – Real time monitoring of LV grid
Sub-functionality B7bd comprises to solutions focusing on real time monitoring of LV networks. UFD, RWE
and SSEPD share their knowledge about this sub-functionality as Leaders, while IBDR is the Learner.
3.2.1 Discern_UFD_Leader_B7bd
The solution proposed by UFD for this sub-functionality is called “LV monitoring for future power quality
analysis”. The objective of UFD’s solution is to collect and store electric measurements, events and alarms
generated by Intelligent Electronic Devices (IED) in LV networks. This information could be used in the
future for performing power quality analysis with the aim of improving LV network operation.
This Use Case deals with the analysis of continuity of service and power quality issues in the LV side of
secondary substations, and generates related signals and alarms. Quality of supply is monitored by the
means of intelligent electronic devices (IED) called LV supervisors. These collect voltage and current
measures from sensors on the LV side of secondary substations, perform registrations of energy,
measurements and events, and generate alarms when some voltages or currents are out of limits.
Quality of supply is monitored by the means of intelligent electronic devices (IED) called LV supervisors.
These collect voltage and current measurements from sensors in the LV side of secondary substations,
perform registrations of energy, measurements and events, and generate alarms when some voltages or
current measurements are out of predefined margins.
The main steps include:
1. Voltages and currents are measured with LV sensors from the LV output cables of secondary
substations.
2. LV supervisor collects these data from sensors and perform calculations on power flows as well
as power quality issues, generating also events reports:
- Energy registration (similar to meters), absolute and incremental values
- Registration of real and calculated measurements, i.e. values
- Events reports
3. Selected events will generate alarms in LV supervisor that are spontaneously sent to upper
systems, up to the Distribution Management System.
4. LV data monitoring collected is periodically sent to upper systems. Further corrective actions
can be taken in order to prevent malfunction.
With regards to this solution strengths and weaknesses, opportunities and threats mainly relate to
technological and economic aspects of the solution.
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Strengths and weaknesses
Strengths and weaknesses mainly refer to the solutions’ usability, scalability and replicability of the solution,
autonomy as well as the communication infrastructure.
Looking at the usability on the one hand the solution enables the expected functions: it helps to improve the
availability of communication, it provides centralized information and thereby eases decision making
processes, it helps to improve LV grid monitoring capabilities, it provides improved monitoring of upstream
MV grids, and also enables other smart grid functions. On the other hand it's a low data resolution for some
applications, and functionality is not aimed at LV network control (only monitoring). Additional investments
for improving the control might be required.
With respect to scalability and replicability: due to the simple deployment of additional devices in new
secondary substations, and use of existing infrastructure the solution is easily scalable and replicable by
other DSOs.
With respect to the communication, the solution provides autonomy due to its Independency of IEDs (direct
IT-communication) and functions based on GPRS communication standards which are usually already in
place.
Technical weaknesses of the solution refer to the maturity of the technology. There is no experience
concerning the feasibility of the solution so far.
Economy related weaknesses further include that it is difficult and costly to set up the solution and to
manage and maintain new devices. Installation and operational cost of decentralized equipment increase in
line with growth. Economies of scale can be generated only related to the data collection and storage in the
control centre.
Opportunities and Threats
Opportunities and threats relate to the communication infrastructure, the use of (industry) standards, the
solutions usability as well as Cost economics (buy and operate), Changes in the regulatory framework and
distributed generation.
Technological opportunities and threats include aspects of communication infrastructure, the use of industry
standards and usability related ones. With respect to the communication infrastructure the Smart Meter roll-
out is a major chance to the solution. Other chances result in expanding public operators providing GPRS
communication. At the same time some threats arise from communicational aspects since some secondary
substations are located in areas with poor mobile communications service.
With respect to the usability new devices deployed for distribution network monitoring are the first step
towards network state estimation. On the other hand increased network and operational issues might arise
due to lack of sufficient observability and control of LV network with increased integration of distributed
generation. Also new communication standards can increase the availability of IEDs.
Cost related opportunities arise by realization of economies of scale, which is at the moment not possible.
Another opportunity relates to regulatory incentives with positive influence on the Use Case. The solution
also allows Better Network Operation in case of distributed generation.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_UFD_Leader_7bd in Figure 3-5.
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Figure 3-5 SWOT-Matrix for DISCERN_UFD_Leader_B7bd Use Case
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3.2.2 Discern_RWE_Leader_B7bd
The solution proposed by RWE for this sub-functionality is called “Smart Operator” (SmOp). It is based on a
Station Controller (the Smart Operator) capable of automatically controlling numerous components located
in directly connected LV networks, such as breakers, batteries, home automation gateways and power
transformer tap changers. The objective is to optimize LV grid efficiency while at the same time minimizing
the need for grid reinforcement.
The SmOp is a specialized controller that is installed in the secondary substation. The SmOp is responsible
for the LV grid connected to its substation. Based on voltage and current measurements in the LV network,
weather forecasts, possible consumption profiles of the households provided by the Home Energy
Controllers (HEC), tap changer positions, states of the breakers and charging states of batteries in the low
voltage Grid, the SmOp stores and analyses measured values from the devices throughout the grid and
calculates state estimations for points in the LV grid that are not measured directly. The SmOp controls the
low voltage grid every minute and constantly improves its own efficiency by learning from historical data
(“self-learning algorithms”).
As a basis for its commands the SmOp uses a matrix in which all possible operating options are saved. It
selects an option from this matrix and checks the resulting grid state with a load-flow calculation. If no
overloading or voltage outside the allowed limits is detected the selected operation will be executed
accordingly. When the SmOp first goes into operation all operating options are of an equal weighting. If an
operation is successful, for instance, keeping the voltage within the allowed limits by charging a battery,
then this operation gets a higher weight and the next time it will be the more likely option. In this way the
algorithm constantly learns how to optimize control of the LV grid. In order to do this, the SmOp uses a
model of the LV grid consisting of the transformer (i.e. secondary substation), lines, load switches, busbars,
connection points, meters (consumption / feed in), storages and home automation network gateways. The
SmOp sends a few most suitable consumption profiles for each household to the HEC and the customer
can decide, which one he wants to use. The SmOp sends information about desired / preferred behaviour
regarding load and infeed to the Home Energy Controller (HEC). From that the HEC creates five profiles
(profiles 1-4: grid optimized; profile 5: self-optimized household) based on the available devices within the
respective household for 24 hours. These profiles are offered to the SmOp which in return acknowledges
the selected profile. The selected profile is subject to be executed by the HEC. In the case of a needed
change of flexibility from a household’s perspective the HEC sends modified profiles to the SmOp. In
addition to household flexibilities (via the HECs) the SmOp controls energy storages, tap changers, and load
switches.
The SmOp offers three main advantages to optimize LV grid operation:
1. Monitoring and evaluation of the LV grid condition provides a transparent data base for
exploiting flexibility of producers and consumers to optimize the use of assets, and
2. With help of measured and stored values it is possible to get detailed experience data about the
low voltage grid.
The SWOT-Analysis for Use Case DISCERN_RWE_Leader_B7d focusses on assessment of the SmOp.
Strengths and Weaknesses of the SmOp mostly relate to technical and economic aspects. Opportunities
and threats additionally include regulatory arguments.
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Strengths and Weaknesses
Technological and economic strengths of the SmOp mainly refer to its usability, scalability and replicability,
are related to the communication infrastructure, and cost economics realized during installation.
Weaknesses additionally include shorter Lifecycles of equipment, and other arguments related to the
maturity of the technology.
Strengths related to the usability of the SmOp include that the SmOp helps to monitor / supervise the LV
network. Critical network states can be avoided (e.g. violation of voltage range or current limits). The
information collected is stored in a decentralized database at the level of the secondary substation for the
corresponding low voltage network. Having all the information the SmOp allows better decisions making
regarding the use of assets and network operation. Furthermore, the SmOp can also help to reduce voltage
fluctuations and is suitable for avoiding grid reinforcements in the low voltage grid.
The SmOp creates a sufficient overview of the grid and so enables also other potential smart grid functions.
Further advantages of the SmOp include easy scalability and replicability. The usage of public and DSO
specific standards eases replicability and scalability. Additionally the SmOp runs completely autonomously,
but a remote control can also be implemented. Due to the small size of the equipment, the SmOp can be
installed into each secondary substation. A few IEDs per branch enable sufficient overview of the grid to
enable the SmOp work.
The communication protocol is also based on standards, and allows DSO specific and confidential parts for
security reasons. At the same time data privacy is guaranteed. This also eases the replicability of the SmOp
towards other DSOs.
Also the technical solution provides certain robustness: Communication outages of single measurement
devices within times up to 60 min are uncritical. A failure of the SmOp is not affecting the security of supply.
With respect to the costs-dimension, the solution helps to avoid or delay necessary network expansion so
the SmOp is less expensive than conventional grid expansion.
Weaknesses of the SmOp refer mainly to maturity and experience related arguments. For the following
components there are currently (not yet) no standardized communication interfaces available:
Grid Battery tele control components, inverters and management system;
Power switch controller;
Inverters;
Household battery system;
Communication between HEC and household appliances, and
Heat pumps.
The SmOp requires a suitable ICT-infrastructure, which also have an impact on the costs dimension.
Currently are lifecycles of ICT equipment shorter than for other network assets with specific maintenance
programs.
Data needs a lot of storage for documentation, which might lead to additional costs in the pilot phase.
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Furthermore some devices are not exploitable without the consent of the customer (Smart Meter, EVs white
goods) which is also a threat to the potential success of the solution.
Opportunities and Threats
Opportunities and threats are mainly related to technical aspects (e.g. Usability, Communication
infrastructure), economical aspects (e.g. implement solution as Business Model, Cost economics) and
regulatory aspects (changes in regulatory framework) of the solution. Additional arguments result from the
need for customer acceptance.
With respect to technical aspects opportunities might arise from new technologies and algorithms, which
can reduce the number of necessary devices. For example: The measurement and communication devices
will be integrated as standard for new stations. Looking at the communication infrastructure and the
involvement of customers, a Smart Meter rollout could help to include households into the Use Case in an
easier fashion as modern metering technology would already be available in the premises. Also wireline
technologies may be applied (e.g. PLC on LV), one major chance is also a higher availability of wireless
communication in rural areas. Threats from communication infrastructure arise from the dependency of the
DSO on the available public (wireless/wireline) e.g. licences for specific frequencies etc. may not be
prolonged. A lack of ICT expansion / operation might lead to decreasing usability.
Economic related opportunities refer to cost reductions regarding the devices or components, e.g. new and
cheaper solutions for battery storages would make this Use-Case more attractive. However, the SmOp
could help to create new market models (e.g. flexible tariffs). Some SmOp functionalities could be offered as
services.
Furthermore changes in regulation might also influence the solutions success or failure. New regulatory
frameworks that require higher data security standards like for instance the German “BSI Schutzprofil” at
household metering points could lead to:
Additional requirements for communication devices / gateways;
Increasing data volume/ bandwidth, and
Need to run a public key infrastructure.
Furthermore the regulatory framework does not allow DSOs to use electrical storages (as storing and
discharging electricity “could constitute a form of trading electricity”). Changes in the regulatory framework
might be necessary,
As stated already in the description of the strengths and weaknesses customer participation is crucial for
realizing all the possible strengths of the SmOp. Therefore customer participation might also influence the
solutions success or failure. Inasmuch additional threats might arise with respect to the future development
of electricity demand of households and its’ structure (energy efficiency, controllable loads etc.).
A summary of arguments is shown in the SWOT-Matrix for DISCERN_RWE_Leader_7bd in Figure 3-6.
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Figure 3-6 SWOT-Matrix for DISCERN_RWE_Leader_B7bd Use Case
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3.2.3 Discern_SSEPD_Leader_B7bd
The Use Case proposed by SSEPD for this sub-functionality draws on the “New Thames Valley Vision”
(NTVV) project. The solution implemented provides real-time monitoring of LV networks through
measurement (including smart meters where available) and analysis to provide system state information to
network operators and data to network planners.
The NTVV project has installed secondary (11kV/400V) substation monitoring which measures each phase
on every low-voltage feeder of the monitored substations, together with ‘end point’ monitoring equipment at
domestic and business properties (incorporating smart metering data where available). The intention is to
identify to what level physical end point and substation monitoring can be reduced to still provide meaningful
data.
The data collected will be used to establish LV network power flows, and analytic tools will be applied to:
categorise energy usage patterns;
establish how individual energy profiles aggregate up to the substation level;
identify trends, and
inform the use of scenarios to create forecasts for future energy requirements.
The strengths and weaknesses of the solution relate to technical, economic and customer / society related
aspects. Opportunities and threats additionally include regulatory oriented arguments.
Strengths and Weaknesses
The strengths of the solution primarily relate to its usability, scalability and replicability, autonomy,
communication infrastructure and interoperability, whilst weaknesses relate mainly to the lifecycle of some
of the technologies, which are not as long as lifecycles for traditional networks assets, in addition to aspects
related to the maturity of the technologies.
The NTVV Use Case enables load pattern identification, customer profiling (buddying across customer
types) and load forecasting, and will provide knowledge on the optimal level and location of monitoring.
Usability related strengths of the solutions include data monitoring and storage in the Data Repository, from
where data can be downloaded later and used for other applications. This provides a strength that the Use
Case acts as an enabler for other smart grid solutions and for providing other functionalities to various
stakeholder groups.
The solution’s ICT is based on industry standards, making it relatively easy to deploy and supporting
scalability and replicability. The ICT also supports the autonomous operation of the solution
Additionally, knowledge can be maintained in house, reducing reliance on third parties and helping to
reduce operational costs.
Technical weaknesses of the solution include the physical size of the solution and potential lack of space in
some secondary substations. Customer outages may be required during installation of the end point
monitors for safety reasons. It is recognised that the lifecycles of some components of the solution are less
than those for traditional network assets. The relative lack of maturity of the solution may bring issues,
particularly relating to communications technologies, and mobile communications networks can be subject
to lower availability in rural areas. Similarly, at present there is limited experience of some aspects of the
technologies and standard used. Detailed consideration must also be given to the implications for changes
to business processes and training requirements for transition of the solution into Business as usual.
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Opportunities and Treats
The opportunities and threats of solution mainly relate to technical, economic and regulatory aspects.
Technology related opportunities mainly relate to the economies of scale and scope. It is expected that the
increased application of the solution will lead to more vendors entering the market, with competition leading
to reduced costs and better solutions.
Other technology related opportunities refer to the reuse of the existing solutions for other purposes with
respect to the data now available and the enabling of further smart grid functions. Improved operational
information, particularly when used with network control and other new smart grid technologies, should
deliver a range of benefits to a number of stakeholders.
As with many smart grid technologies, ICT is key to the successful implementation of this solution. A choice
of well-established protocols and standards for information structure are available. New communication
standards may increase the range of data classes collected and communicated by the IEDs. Further, it is
estimated that over 95% of substations in urban areas can accommodate IEDs.
Opportunities relating to the regulatory framework include incentives on service or performance, rather than
the more traditional focus on CAPEX for network expansion.
Technology related threats predominantly relate to usability. Lack of technological matureness and
experience may lead to issues with the ICT aspects of the solution, for example poor mobile
communications service in some areas. The swift evolution of ICT in general may lead to technologies being
quickly out-dated or requiring frequent updates or replacements. Where monitoring is used for real time
control, network operation is more dependent on communications systems. Further, it is currently unclear
what data will be available from smart meter rollout. With regard to regulation, the regulatory framework will
need to continue to appropriately support investment in ICT & similar enabling technologies. Similarly
evolving data security regulations may require higher data security standards, which must be implemented
to ensure compliance, protect the system from external threats and ensure data privacy.
In the absence of the current wide spread use of smart meters and uncertainties around the future
availability of smart meter data collected by the Suppliers, rather than the Distribution Network Operators,
means that this Use Case is also reliant on customer participation with regard to the installation of end point
monitors. A lack of customer participation or similar data from other sources would limit the effectiveness of
this Use Case.
Engagement with the process of standards development is necessary to ensure that all relevant aspects are
considered and incorporated where appropriate. Lack of clear business processes & training associated
with the new functionality would prevent the technology from delivering full potential for the business.
Finally, lack of the scaled roll-out of such monitoring may also lead to higher than necessary investment in
network assets.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_SSEPD_Leader_B7bd Use Case in
Figure 3-7.
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Figure 3-7 SWOT-Matrix for DISCERN_SSEPD_Leader_B7bd Use Case
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3.2.4 DISCERN_IBDR_Learner_B7bd
The solution identified by IBDR for this sub-functionality is called “Advanced monitoring of LV grid”. The
objective of IBDR solution is to enhance monitoring and observability of network components down to LV
levels, using Secondary Substation (SS) equipment and the smart metering infrastructure it collects and
calculates magnitudes at both phase line and LV panel busbar levels. This includes gathering experiences
and facilitating trade-offs between factors such as:
Installation of equipment type and location and the capacities offered by the equipment and its
impact on the network operation and on the LV network in particular including quality of service;
Ease of installation and challenges faced during the installation process in relation to the cost
efficiency and comparing it with the functional efficiency;
Related reliability issues, and
Collection of new pieces of data providing insights to the LV network status.
These collected experiences will enable IBDR to devise the right strategy for optimal investment in LV
monitoring, and also thanks to the sharing mechanisms within DISCERN facilitate such decisions also to
other DSOs.
This information could be used in the future for improving LV network operation.
As a learner IBDR installed new measurement devices in a Secondary Substation for improving the
observability of the low voltage network.
Strengths and Weaknesses for this Use Case mostly relate to technical, economic and customer / society
related aspects. Opportunities and threats additionally include regulatory oriented arguments.
Strengths and Weaknesses
The strengths of the solutions mainly refer to its usability, scalability and replicability, autonomy,
communication infrastructure as well as interoperability, while weaknesses mainly relate to involved costs as
well as to the maturity of technique.
The Solution enables having all the information centralised in one location (e.g. AMI head end) and so it is
easier to make decisions. Once this kind of data is available from all SSs and they are processed through a
LV network Management system, the LV network operation (e.g. outage management) can be improved
and this will lead to the reduction of power short cuts suffered by end customers. Also enables other smart
grid functions (e.g. line identification). With respect to the scalability and replicability of the solution strengths
include easy deployment of the solution, and use of existing infrastructure (communication). Furthermore
can the equipment be accessed, monitored and configured remotely.
Weaknesses additionally beyond others refer to the lack of experience, also to the investment requirement
needed implementing and operating the solution.
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Opportunities and Threats
Opportunities and threats refer to usability and the maturity of technique as well as cost-economics and
changes in the regulatory framework.
On the one hand one major opportunity lies in improving the LV network operation. Furthermore new
devices deployed for distribution network monitoring are the first step towards network state estimation. This
estimation is needed to create a real time image of the network in order to feed other applications aimed at
smooth network operation. On the other hand might an increase of data volume not be manageable by
technology. Critical Communication (e.g. commands to key component) might be affected by information
overload. Additional risks occur due to not knowing that some pieces of data are already collected by some
other function and they can be reused in the upper systems.
Further opportunities include a smart-meter-rollout and awareness of user’s raises as well as generating
economies of scale and scope.
Changes in the regulatory framework may be a chance, at the same time 'availability of new data and the
manageability of the LV network could add new Regulations with unclear aspects.
Last but not least might the lack of technological matureness and experience might lead to problems.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_IBDR_Learner_B7bd Use Case in
Figure 3-8.
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Figure 3-8 SWOT-Matrix for DISCERN_IBDR_Learner_B7bd Use Case
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3.2.5 Summary
Looking at the solutions for improving monitoring and control of LV networks, the following sections
summarises the similarities and differences of the solutions with respect to technical, economic, regulatory
and customer-related aspects.
Technological Aspects
All described solutions emphasise slightly different technology functionalities and usability-issues aimed at
enhancing monitoring and control of power flows and voltages in LV networks. While UFD focusses on the
improvement the monitoring of LV networks by collecting and storing electric measurements, events and
alarms generated by Intelligent Electronic Devices (IED), RWE uses the SmOp to automatically controlling
numerous components located at LV networks. SSEPD’s solution enables load pattern identification,
customer profiling (buddying) and load forecasting, and uses this to develop knowledge on the optimal level
and location of monitoring; while IBDR’s solution enhances monitoring and observability of network
components down to LV levels using secondary substation equipment and the smart metering infrastructure
at LV line and phase. All technologies aim to enable easy scalability and replicability of the solution. As
such, the solutions are mainly configured based on technological industry or DSO-standards and / or use
technology which is already owned by the DSO. The physical size of the solution is also important.
With respect to the ICT, all of the DSOs highlight the importance of stabile communication infrastructure.
The ability to remotely configure and update the monitoring devices (rather than needing site visits) is also
of value, as is the automatic control of network components made possible in RWE’s solution.
With respect to robustness and maturity of the technology all DSOs see potential for further improvement. At
present, all the DSOs identify shorter lifecycles for some of the technologies when compared to traditional
network assets, in addition to higher requirements for maintenances.
Economic strengths and weaknesses
Economic aspects refer to the cost of installation and operation of the technology, but also to the opportunity
costs for network expansion or other measures that will help improve network operation.
All DSOs point out the cost economies of their solutions, stating that whilst there are acquisition, installation,
and implementation costs associated with a solution, overall network operational costs are much lower.
Additionally the solutions allow improved decisions for grid expansion supporting more efficient investment
in the network.
The use of industry and company standards and the use of components and infrastructure already owned
by a DSO also has an economic dimension. Less investment is required if technology is already in place or
where standards support the principal of plug-and-play. Further, training costs can be avoided when using
equipment and technology that are already well-known and understood in the company.
Customer related strengths and weaknesses
Customer related strengths and weaknesses refer mostly to the SSEPD and RWE Use Cases which both
have an element of customer participation. Some devices are not useable without the consent of the
customer (end point monitors, Smart Meters, electric cars, white goods), which is not a weakness per se,
but can be source of additional costs and may constrain the potential roll-out of a solution. Additionally, the
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installation of some solutions may cause short term outages for the customer, which might also have
negative influence on customer acceptance.
Opportunities and threats
The opportunities and threats associated with these solutions relate to the technical functions, costs, ICT
and regulation.
Technology related opportunities refer to the improvement of communication technology. Especially the
improvement and extension of wireless technology in rural areas have an impact on the monitoring and
control of the grid. Vice versa the actually low communication infrastructure in rural areas is one of the main
threats.
The installation of IEDs can also enable additional smart grid function to improve network operation
providing further grid data by program modification.
DSOs agree that changes in the regulatory framework can introduce both new opportunities and threats for
improving monitoring and control of the network. Opportunities could be opened by new incentives for a
more secure system (less faults and failures with no penalty fees), and decreased process times for fault
restoration (both based on improved monitoring and control of grid). Threats could arise by introducing
additionally data security standards causing high cost for implementing.
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3.3 B9a – Optimized AMR data collection and analysis using
virtualized & physical concentrators
Sub-functionality B9a addresses the optimization of Advanced Meter Reading (AMR) data collection and
analysis using virtualized as well as physical concentrators. In this sub-functionality VRD is the Leader and
UFD is the Learner.
3.3.1 Discern_VTF_Leader_B9a
The solution proposed by VRD for sub-functionality B9a is aimed at collecting and storing Smart Meter
readings meeting the collection performance requirements defined by the metering department. The
information obtained from the Smart Meters is stored and analysed at Enterprise level to extract useful data.
The collection of meter readings, events and alarms within the AMR process is made on a daily basis and to
some extent in real time. The AMR process uses smart meters at the customer site, together with Meter
Data Concentrators, normally in the secondary substation. All data is collected and stored in the AMI Head
end (collection system), which reports to the overlying Meter Data Management System (MDMS).
The process main steps for scheduled meter reading collection are:
1. The meter registers the energy consumption meter reading, event or alarm. VTF has defined
the meter to register the accumulated meter values every hour, starting 00.00. Events or alarms
are registered when at the time of occurrence.
2. At regular intervals the Meter Data Concentrator asks the meters for the latest stored meter
stands. These are collected and stored in the Meter Data Concentrator.
3. After midnight the following day the automatic meter reading collection starts. The system
calling functions dials each of the Meter Data Concentrator’s and asks for the meter readings.
4. The Meter Data Concentrator’s send the last day meter readings (on an hourly basis) to the
collection system
5. The collection system makes a check against the meter register if all meters have submitted
meter readings. Those meters missing a meter reading are asked again.
6. The collection performance analysis controls the daily performance and match those meters not
having submitted any meter readings against agreed and approved events. Those meters
having an approved event registered at the same time as the meter reading collection was
performed are excluded in the first run in the AMR process.
7. The meters not delivering any meter readings are handled separately in the fault identification
and maintenance process. Most of these meters must be restored within contracted service
time to meet the overall contracted SLA (Service Level Agreement) for the monthly collection
performance.
8. The metering collection department makes a first fault analysis and starts a field service errand,
which is sent to the field service entrepreneur.
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The process follows the same logic for registering and collecting events and alarms. It is a difference
between events and alarm when it comes to the exporting schedule. Events are collected once a day, but
alarms are acted on in “real time”, so are placed in a separate “real time export” group to overlying receiving
systems.
1. An event or alarms occurs;
2. The meter register the event/alarm, together with a time stamp;
3. The Meter Data Concentrator collects the information;
4. The event/alarm information is exported from the Meter Data Concentrator to the collection
system, and
5. The collection of system export defines events/alarms to the Enterprise system, (Performance
Evaluation Reporting system).
Strengths and weaknesses, opportunities and threats mainly relate to technical issues.
Strengths and Weaknesses
Technical strengths of the AMR include its usability, the robustness of technique, scalability and replicability,
as well as communication infrastructure. Additionally there are cost related strengths.
With respect to the usability the AMR is based on well-proven technology which has been available on the
market for quite some time. It is very compact and easy to install compared to other options. Different
communication solutions can be chosen dependent on the needs and requirements.
There are two communication channels – one to customers and the other for data collection (access
network and backhaul network). The meters/gateways can be operated with PLC or GPRS depending on
the requirements. The AMR is suitable for different communication protocols. Power Line Communication
has proved to be a good solution. It uses existing power line infrastructure. There is no need of special cable
solutions if PLC is applicable. The ordinary electrical grid and mobile 3G network are used. Furthermore the
solution obtains flexible data collection cycles. Meter Data Concentrator is equipped with capacitors that
make it possible to send information immediately in case of power failure. The meters can be used for all
kind of customers. More other measurement data, for example, power production from solar panels, can be
connected to the available data channels without change of the meter. No customer data is transferred only
measured values and an anonymous indicator (meter identification). Disconnecting and connecting meters
from control centre can be done automatically (as a service). A remote control for changing smart meter
settings is also available.
Furthermore the AMR is general and interoperable. It is applicable in other power utilities. The solution suits
a large variety of functions including monitoring of reactive power, zero error, detection of interruptions,
remote connection and/or disconnection of meters and also enables other smart grid functionalities.
With respect to the costs the initial main purpose to roll out smart meters was to implement a cost effective
way to fulfil the requirement from authorities that billing was to be based on actual meter values. This has
been possible with smart meters.
On the other hand the AMR obtains some technical weaknesses which are mostly related to the ICT, e.g. in
case of power failure the collected data is not lost but information that communication is down is not known
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until the power is back. Power disturbances can be caused e.g. from ants that have entered the meters and
caused short circuit. Other disturbances might be caused due to PLC or radio telecommunication masts
(using same frequencies or same communication masts). In case of disturbances there are no possibilities
for the customer to connect extra or own meters. To extract information a new meter with similar interface
would be needed.
Furthermore there are some limitations in speed (sequence for update). Frequent data collection can cause
problems in data communication traffic. Due to PLC solution it is not possible to send information or alarm of
power outage from meters to the control centre if a power outage occurs.
The data is centrally collected, and then sent out to the customers via VTF’s web-page. There is a lack of
direct interface between customer and meter. In principle the customers should be able to connect directly
to the meters and get the information from the meters. This could become a function requirement in Sweden
in the future. Smart home services for real-time presentation of consumption/events often require installation
of some kind of measurement device on the meters (e.g. counting the pluses). There could be a potential for
developing “almost real-time” services towards end customers based on smart meters data instead which
would not require any additional installation. However the time to collect values from the smart meters may
take too long, daily collection would in most cases be too slow.
Opportunities and Threats
Opportunities refer to technical parameters while threats refer also to costs economics and customer /
society related aspects.
Technology related opportunities might include the use of potential additional functions of the AMR which
are not yet used and implemented. The AMR can for example be used also to monitor many other events
like power quality, current peaks, detection and statistics of power interruptions, intrusion alarms. Further
customer-related functions could also be added to the solution. The solution could be used for customers to
pay their electricity bill directly (by credit card) for example. Furthermore there is the possibility to collect the
data more frequently (more than once in 24 hours), which would enable and further improve monitoring of
the grid. Concerning the communication and data transfer, the expansion is possible. Furthermore the
solution could enable low voltage network supervision, since it is possible to indicate events on the low
voltage level and send an alarm that would initiate an operator to be called out.
With respect to regulation, Swedish law states that interruptions in the power supply to the customers must
not exceed 24 hours. The meters can support controlling this by monitoring LV network and helping with
outage information (for example, if customers are not at home for a longer time when an interruption
occurs).
Furthermore the solution enables the development of many new services based on the existing smart meter
infrastructure and already done investments. Also with a smart meter roll-out data quality and the possibility
to automate more processes can be improved.
On the other hand technology related threats refer to the maturity of the solution, the momentary
dependency on technology suppliers as well as to potential security risks caused by hackers. With respect
to the maturity of the technology, today the ICT development cannot be foreseen. When the meters need to
be replaced after 15-20 years, due to changes of the meter infrastructure, additional costs / investments of
the DSOs might be necessary. For the success of the business case it would be important that the existing
infrastructure could be kept. Also related to the maturity of the technology is the dependency on certain
technology suppliers, which might cease to provide technical support. Gaining maturity the market will most
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certainly emerge into a buyers’ market.
Additional risk might occur by hackers, which could get access to the system and so access to other
customers’ meters. Still this is quite unlikely, since it would however require the person to be physically on
site and to have advanced data hacking skills. Therefore this risk might be acceptable as it is in reality
negligible.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_VTF_Leader_B9a Use Case in Figure
3-9.
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Figure 3-9 SWOT-Matrix for DISCERN_VTF_Leader_B9a Use Case
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3.3.2 Discern_UFD_Learner_B9a
The solution identified by UFD for sub-functionality B9a is aimed at collecting data generated in smart
meters in a cost-efficient manner, to optimize costs in smart meters data gathering for billing purposes
taking into account various factors, such as PLC communication issues and different degrees of
geographical dispersion of customers.
This Use Case deals with the collection of data generated in smart meters located at customer premises.
Data collection is performed by Meter Data Concentrators. The Use Case presents two main alternative
solutions for data concentration that can be used depending on the number of customers that are fed
through the secondary substations:
• Conventional Meter Data Concentrators located at secondary substations communicating with smart
meters via PLC are used in the general case.
• Virtual Meter Data Concentrators in a central location using mobile networks to communicate with
smart meters are used to collect data from scattered smart meters or when conventional PLC
communications with smart meters don’t work properly.
Strengths, weaknesses, opportunities and threats relate to technical and economic as well as regulatory and
customer-related aspects.
Strengths and Weaknesses
Strengths include technical arguments, are cost-related and picture social interests. Technical strengths
refer on the one hand to the usability; both solutions enable the collection of data generated in smart
meters. Functions are therefore transparent, and also enable other smart grid functions. Furthermore allow
the solutions improved remote management of customers supply (e.g. remote disconnection, change of
contracted power, etc.). The infrastructure of the solutions is easy replicable within substations, not only but
also since relevant infrastructure is owned by DSO.
With respect to costs there is a mature market of Smart Meter with various options.
Weaknesses of the solution on the other hand relate to the technology as well as to cost-related problems.
Technical related problems include that the solution is difficult to install and to maintain due to a large
number of smart meter. Furthermore is sufficient space necessary for installation in substation. With respect
to the ICT infrastructure the solution might cause possible noise problems when using LV cables for
communication purposes. Furthermore GPRS communication might not be available in basements / rural
areas. With respect to the data, the use of a specific data-model-standard might set limits for the future. Also
there is a high amount of information / data to be stored, which might cause technical, economical and / or
regulatory problems in the future.
Last but not least is there a lack of technological matureness and experience related to the technology.
Opportunities and Treats
Opportunities and threats relate mainly to the communication infrastructure but also to possible regulatory
changes. With respect to the ICT, chances might be caused by gaining market maturity, e.g. various public
mobile network operators enter the market and provide GPRS communications which than can be used for
virtual concentration. Referring to the logics of economies of scale and scope, improved technology and
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fewer costs would also be a possible consequence of this development. On the other hand threats include
possible communication issues in areas where there is no business case for mobile operators (low
population areas).
Regulatory related opportunities refer to regulatory changes, where the regulation makes it mandatory to
deploy smart meters infrastructure. The regulator would not only help / support / fasten the market
development but also enable new business models for UFD.
Regulatory changes could on the other hand also refer to data-management issues. Within the solution a
high amount of customers data is gathered and stored, which could rise confidentiality issues and therefore
promote new regulations. Additionally the lacking maturity of technique might also be source of threats,
since evolution of smart meters technology and their complexity could make them become obsolete.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_UFD_Learner_B9a Use Case in
Figure 3-10.
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Figure 3-10 SWOT-Matrix for DISCERN_UFD_Learner_B9a Use Case
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3.3.3 Summary
Looking at the solutions aiming at the optimization of Advanced Meter Reading (AMR) data collection and
analysis using virtualized as well as physical concentrators, the following section summarises that
similarities and differences with respect to technical, economic and regulatory aspects.
Technological related strengths and weaknesses
Each solution addresses different aspects of the sub-functionality. While the VTF Use Case focusses on the
communication of the Smart Meter information, UFD’s solutions focus on the collection of data generated in
smart meters. While Vattenfall’s AMR has strengths within the communication of the data (two
communication channels, PLC and wireless GPRS communication available), strengths of UFDs solutions
mainly refer to easy replicability of the solution based on using well proven smart meter technology.
Weaknesses of both Use Cases are ICT-related. While VTF refers to power failures due to ants or black
outs based on redundant usage of the frequencies; UFD relates to problems with the wireless
communication, e.g. in rural areas. In both cases, the current lack of experience and ICT maturity are cited
as weaknesses.
Economic related strengths and weaknesses
As a Learner, UFD sees weaknesses related to high installation and operational costs associated with the
current lack of maturity of the solutions and the required deployment of millions of devices.
Opportunities and Threats
Opportunities and threats associated with these solutions can be identified with respect to the technical
functions, costs, ICT and regulation.
Economic and technical opportunities and threats of both Use Cases primarily relate to economies of scale
and scope. From the DSO view point, opportunities include lower future prices for devices (installation and
operation), communication and information technology, and a higher quality of the technology based on
increased knowledge and experience of use. Additionally, more vendors might enter the market, and the
dependency on single technology suppliers with respect to maintenance might reduce. Similarly the
application of additional functionalities offered by devices may bring further benefits.
DSOs agree that opportunities and threats for improving the monitoring and control as related to regulation
include both regulatory incentives for a more secure system (less faults and failures with no penalty fees),
and decreased times for fault restoration (both based on improved monitoring and control of grid). However,
most of the DSOs express concerns over regulatory barriers with respect to data collection and storage, and
uncertainty as to the future regulatory support for investments in ICT technologies.
Further technology related opportunities refer to the improvement of communication technology. In
particular, the improvement, and / or extension of wireless and wireline (PLC) technology would improve
and secure the smart meter – concentrator communication. However, hackers might represent a threat to
the use of wireless ICT.
With respect to regulation, both DSOs cite concerns over regulatory barriers with respect to data collection
and storage, and uncertainty as to the future regulatory support for investments in ICT technologies.
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3.4 B9b – Calculation and separation of non-technical losses
Sub-functionality B9b comprises the solutions for calculating technical and non-technical losses in LV
networks. In this sub-functionality IBDR is the Leader, UFD the Learner. SSEPD is a Listener for this sub-
functionality; however the Listener role is outside the scope of the SWOT-Analysis.
3.4.1 Discern_IBDR_Leader_B9b
The solution proposed by IBDR is based on a set of algorithms that estimate technical and non-technical
losses for the next day and calculate the real values for the present day, apart from performing estimation of
consumption as well.
This Use Case combines real data captured by both Smart Meters at customer’s premises and sensors in
Secondary Substations with algorithms to calculate technical and non-technical losses in LV networks and
forecast SMs consumption.
Taking advantage of the installation of SMs at customer’s premises and measurement sensors at
Secondary Substations (due to the mandatory roll out of SMs in Spain up to a power contracted of 15kW by
the end of 2018), LV network losses (technical and non-technical), energy balance and client consumption
are estimated for one day ahead before receiving real measurements and calculated from actual readings to
evaluate the precision of the estimations. The information collected by the latter devices and stored in the
AMI head End at DSO facilities is used for this aim. That is: hourly and daily registers of Energies (active
and reactive) and Voltage/Current. They are organized in standard reports defined by the STG-DC protocol
(S02, S05 and S14). The format of these reports is xml. The algorithms have these reports along with
electrical data of the LV networks (cables lengths, network layout and cables parameters). The algorithms
are launched automatically every day when the information is already in the AMI Head End and uploaded
into the server used in the demo (independent from any other DSO system) where the reports are storage
for being used by the algorithms. The results are displayed in a graphical visualization tool.
Strengths and weaknesses are mainly technical and economical, while opportunities and threats also relate
to regulatory aspects.
Strengths and Weaknesses
Strengths of the solution refer mainly to its usability and its functions. The solution uses information already
made available by existing smart meters. The data (field data) from DSO owned systems is gathered and
centralized provided ensuring high data quality and so enabling sufficient losses estimation. Information on
losses can be used to identify fraud (and later eliminate it with proper actions), optimise network usage and
performing planning actions. In short, this means DSOs can obtain more knowledge about the LV network
status.
Furthermore strengths include easy scalability and replicability of the solution. For installation, no extra
equipment is necessary. The devices that get measurements are easy scalable within different substations
and also the algorithms that are used in the solutions. Since ICT and data model is set up based on
standards, the solution might also be easy replicable to other DSOs. Please see in this context also
deliverable [D5.2] and [D5.3].
The weaknesses refer also to functional aspects of the devices but also of the algorithm programmed.
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Furthermore they are related to maturity and experience of the solution as well as on the necessary costs
for installation.
With respect to its functions, weaknesses might include the dependency of the solution on the quantity of
nodes or SS that the algorithms are able to manage (programming issue). Even though devices are easily
scalable to different SS, depending on the interface additional effort might be involved. The solution also
requires having all supply points in LV with Smart Meters integrated in the AMI system. Other ways, the
power balance will be not complete to detect technical and not technical losses.
Weaknesses also include how the algorithms are programs regarding the conception of the network (i.e.
balanced or imbalanced), in case of not having all the measurements, some previous steps to complete
gaps are needed. Furthermore the solution lacks on matureness related to report structure and definition, as
well as on experience in the handling. In case of deciding to integrate the solution within the actual DSO
central systems it would be necessary to perform a cost benefit analysis. From IBDRs point of view
additional investments are needed to implement/integrate the solution within existing systems.
Opportunities and Threats
Opportunities and threats of the solution are related to the technology, the costs and regulatory aspects.
Technical opportunities refer to the extension of the scope and include doing forecasting and so improving
grid operation. At the same time detecting fraud / technical losses to apply later on measures to eliminate
them.
Regulation opportunities might be realised by incentives of reduced technical losses in the network, while
threats refer to potential regulatory requirements which are not clear enough, stable or the incentives are not
relevant as it is happen with other regulation aspects.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_IBDR_Leader_B9b Use Case in
Figure 3-11.
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Figure 3-11 SWOT-Matrix for DISCERN_IBDR_Leader_B9b Use Case
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3.4.2 Discern_UFD_Learner_B9b
The solution identified by UFD in the role of a Learner is based on a set of novel algorithms that estimate
technical and non-technical losses for the next day and calculate the real values for the present day.
This Use Case deals with the development of algorithms to compute power balances and identify technical
and non-technical losses as well as methods to identify energy thefts. The main inputs used by the
algorithms will be the energy data collected from smart meters located at customer premises and from LV
supervisors located at secondary substations. Events reports and alarms collected at Meter Data
Management System indicating suspicious behaviours in smart meters will also help to identify energy
thefts.
Strengths and weaknesses of the solution refer mainly to technology and costs, while opportunities and
threats additionally refer to regulatory arguments.
Strengths and Weaknesses
Strengths refer to usability, cost economics (buy), Replicability and Improved grid operation while
weaknesses refer mainly to the lack of data-availability as well as to problems with the scope / logic with the
algorithm.
With respect to technological strengths the developed algorithms help to compute power balances and
identify technical and non-technical losses as well as methods to identify energy thefts. The solution uses
information already made available by existing smart meter (no extra equipment necessary). Only few
additional components (one server/ computer) are necessary to enable the functionality. High data quality is
ensured because of centralized data provided from DSO owned systems, which helps to enable sufficient
losses estimation. Furthermore ICT and data model is based on industry standards which ease the
replicability of the Use Case to other DSOs.
Weaknesses on the other hand refer to a lack of data: For sufficient loss estimation not all necessary
information are documented and / or made available (grid data and meter data). Here are steps to complete
"gaps" needed. Furthermore the algorithms used are aimed at identification of non-technical losses, not
reduction. To use the provided information to reduce losses, very difficult and costly activities have to be
performed.
Opportunities and Threats
Both – opportunities and threats – refer to regulatory changes. Opportunities refer to regulatory changes
which would make it mandatory to deploy smart meters infrastructure. Furthermore regulation-based
incentives to reduce technical losses in the network would be source of additional opportunities.
Threats on the other hand include a possible lack of regulation for type 3 (50<P<450 kW Medium
commercial, industry) and type 4 (15<P<50 kW Small commercial, small industry) smart meters, and –
following from this – reduced performance of losses estimation algorithms.
A summary of arguments is shown in the SWOT-Matrix for DISCERN_UFD_Learner_B9b Use Case in
Figure 3-12.
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Figure 3-12 SWOT-Matrix for DISCERN_UFD_Learner_B9b Use Case
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3.4.3 Summary
A number of similarities can be seen in the two solutions for calculating technical and non-technical losses
in LV networks. In both cases, available smart meter data and a set of new algorithms are used to estimate
technical and non-technical losses. Strengths and weaknesses in both cases relate to the technology, while
opportunities and threats refer to regulatory issues. This finding may also reflect the fact that the associated
demo-site projects are located in the same area, and are therefore subject to similar geographic, economic,
legal and social environment conditions.
Technological related strengths and weaknesses
Both solutions have similar strengths and weaknesses related to functional aspects of the Use Cases. Both
Use Cases use information already available from existing smart meters to enable losses estimation. In both
Use Cases the information on losses can be used to optimise network usage and reduce losses.
Additionally both DSOs believe that their solutions are easy scalable and replicable to other DSOs
Weaknesses relate to a lack of very detailed grid data and gaps in meter data for specific supply points. For
loss estimation, steps to complete these “gaps” are therefore needed to ensure that all necessary
information is gathered, documented and / or made available. Further, the algorithms used in both Use
Cases are in need of improvement, since they are aimed at identification of non-technical losses, rather than
loss reduction. To use the provided information to reduce losses, additional complex and costly activities
have to be performed.
Opportunities and Threats
Opportunities and threats in both Use Cases mainly refer to regulation. Opportunities related to regulation-
based incentives for reducing technical losses in the network. Furthermore regulatory changes which would
make it mandatory to deploy smart meters infrastructure could provide an opportunity for both Use Cases.
On the other hand both DSOs fear a lack of regulation for reducing losses, which could influence the DSOs’
business cases for losses estimation algorithms.
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3.5 Summary of results
This section summarises aggregate arguments at a high level, drawing on the strengths, weaknesses,
opportunities and threats set out in sections 3.1 to 3.4. This aggregation can be used to identify general
(sub-functionality unspecific) similarities and differences in the responses. Looking at the opportunities and
threats general parameters for success or failure of the solutions can be identified.
3.5.1 Strengths and Weaknesses
In accordance with the aims of DISCERN, the evaluation of strengths and weaknesses concentrates on the
applied technologies and solutions.
Strengths and weaknesses relate mainly to the underlying conditions of the Use Cases. Use Cases and
technical solutions are aligned with each other. Therefore the evaluation of the strengths and weaknesses of
technical solutions using the SWOT-Questionnaires is executed with reference to the individual demo-site
and its challenges and environment, i.e. rural or urban areas and networks, available internal
communication facilities or available public communication services, decentralised or centralised solutions,
degree of automation.
Considering all of these individual assessments, a common theme relating to the expected strengths and
weaknesses was the extensive rollout of the technical solution being trialled, including general experiences
relating to the introduction of new technologies, such as decreasing costs (or otherwise), increasing
experience, the use of standardised solutions (or not with individual implementations i.e. due to different
types of substations) and others. These factors have operational and economic aspects.
To allow further structured evaluation of the SWOT-Analysis, the individual arguments were categorised in
four different classes: technology, costs, regulatory and customer/society-related, to develop summarised
results related to different stakeholders and aspects of a solution. The assignment and analysis was derived
from the main aspects of the arguments, however most of the statements provided by DSOs include
aspects of more than one of the four categories.
The key aspects of the strengths and weaknesses are presented in the following lists.
Strengths
• High replicability due to use of common / identified standards;
• Improved control of the grid / network;
• Improved network operation;
• Installed technologies enables other smart grid functions, and
• Less expensive than alternative (conventional) technology.
Strengths are mainly associated with technical and economic aspects, relating to the improved control of the
grid bringing benefits to customers such as faster and more precise detection of faults, reduced outage
times and improved quality of supply.
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Weaknesses
• Difficult to configure / deploy components;
• High expenses of deployment and maintenance;
• Limited functionality;
• Shorter lifecycles of equipment, and
• Solutions need physical space for installation problems with implementation, physical set-up and
deployment.
Technical weaknesses are predominantly challenges relating to the introduction of a new technique, the lack
technological maturity and lack of deployment experience, including the need for changes to operational
strategies and training to integrate new technologies with differing operation and maintenance requirements.
As themes that have both strengths and weaknesses depending on context, while several solutions are
realised through technical components that deliver the functionality, others are implemented by using
electronic components with functionality realised by software/programming. These components allow further
use of the devices beyond the original function and enable the future installation of additional smart grid
functions – a way of providing future proofing.
The necessity of communication and the availability of communication infrastructure, whether public or
company (internal) owned can also promote or limit the replicability of solutions to different network
environments and topologies, (e.g. urban – rural area). It also relates to the historical operating principles of
the company with regard to communication technologies and use of central or decentralised solutions.
Finally, the use of standardised components and protocols supports a number of evaluation aspects
including the availability of a component in the market and the replicability of the solution within both urban
and rural areas.
3.5.2 Opportunities and Threats
Considering the opportunities and threats, the analysis shows economic, technical, regulatory and social
key parameters which may impact the success or failure of each of the technical solutions.
Economic opportunities and threats mostly relate to economies of scale and scope. From the DSO view
point, opportunities include lower future prices for communication and information technology, and a higher
quality of the technology based on increased knowledge and experience of use. Lower prices can be related
to lower production costs of the vendors related to vendors will raising their production volumes as demand
rises, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out
over more units of output (economies of scale). Therefore lower prices for the communication and
information technology will be a result of a greater demand for such smart grid technologies and related
market growth (more vendors). Market growth will also have a direct effect on the prices: if there is a greater
competition on the market due to a greater number of vendors, the vendors might lower the prices in order
to achieve a competitive advantage.
At the same time due to greater number of vendors economies of scope can be realised and the quality of
technologies for the DSOs improves as vendors seek to improve performance and add functionality to
provide a better product and achieve a competitive advantage.
Opportunities and threats for smart grid development are also presented by regulatory frameworks. On the
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one hand DSOs see a great opportunity in receiving regulatory incentives for a more secure system (less
faults and failures with no penalty fees) and decreased process times for fault restoration (both based on
improved monitoring and control of grid), however on the other hand they cite concerns over regulatory
barriers, for example relating to cost recovery with respect to data collection and storage technologies, as
distinct from traditional network assets.
Technology related opportunities refer to the improvement of the devices based on the economies of scale
(see paragraph above) and to the improvement or extension of communication technology. Extension of
wireless / wired technology in rural areas would improve network communication and thereby have an
impact on the monitoring and control of the grid. However for centralised solutions the necessary extension
of the telecommunication network (usually performed by third party) can be source of major threats related
to operational risk and uncertainty.
Opportunities and threats with respect to social development / customer motivation relate to the need for
some solutions to engage with and recruit customers to participate in a solution. Other opportunities are
linked to the individual benefits of the participating DSOs relating to the potential to offer solutions
implemented within the DISCERN project as business models for other DSOs across Europe.
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4 Conclusion: Implications for overall strategy
This section of the deliverable provides the summary of the analysis of the responses from the DSOs
relating to their demo-sites as described in the preceding chapters. The conclusions that are outlined in this
section are based on our detailed analysis of the DISCERN Use Cases using the framework described in
section 2. While the outcomes and statements are soundly based and derived from the evidence provided
from the DISCERN Use Cases, it has not been possible to further generalize or expand our results to cover
more generic issues relating to the wider deployment of Smart Grid solutions due the technical complexity of
the demo-sites and the specific networks issues that they were developed to address. In providing our
remarks in this section, it is hoped that DSOs will be able to learn from the findings and outcomes of the
deployment of solutions of achieve various sub-functionalities with DISCERN, and that it will encourage
other interested parties to adopt the SWOT approach and framework developed within DISCERN.
From the DISCERN tasks completed and reported in this deliverable, we are able to provide the following
views and findings, which are further elaborated upon in the sections below. Key implications include:
1. Smart Grid technologies and supply markets needs to gain maturity.
2. Stable, robust and extensive telecommunication-infrastructure needs to be further
developed and deployed across the distribution networks, both urban and rural, to ensure
that smart grid roll-outs are possible and practical.
3. Smart Meter rollout is a major factor in supporting successful smart grid development. In
order to facilitate the development of smart grids existing modern infrastructures like full-
scale Smart Meter rollouts should be leveraged as far as possible.
4. The use of common standards and protocols is a key to true interoperability of Smart Grid
components and their efficient deployment.
5. Regulatory Incentives relating to innovation, enabling technologies and communications
infrastructure as well as traditional CAPEX and OPEX (or TOTEX) are key for supporting
smart grid Use Cases identified as being of benefit to the network and its customers, and
should be developed and implemented to promote the extensive roll-out of such
technologies and enable network users to gain the substantial benefits.
6. A framework for data-related regulation has to be developed and agreed to facilitate the
expansion of Smart Grids.
1. Smart-Grid technologies and supply markets needs to gain maturity
Strengths and weaknesses as well as opportunities and threats are pre-dominantly identified in the fields of
Technology and Costs. The answers and responses from the DSOs reflect the fact that the implemented
technologies still have a relatively low level of maturity both at the individual component level and at the
combined solution level. Even though most of the new technologies are developed and implemented based
on country and industry specific standards, the robustness of techniques, (assumed) shorter lifecycles and
higher requirements for maintenance cycles are often identified as sources for potential threats. Additionally
some of the DSOs highlighted issues that they have faced due to the more difficult procurement and supply
of “smart devices” and new technologies. They indicated that the small size of the market for the supply of
smart grid technologies currently presents a constraint to the procurement and maintenance of smart grid
technologies and their associated telecommunication infrastructure. Due to the limited market and small set
of vendors, DSOs need to manage the challenge that vendors may take commercial advantage of their near
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monopoly market situation.
When, taking into account the principal of economies of scale and the significant scope for market growth,
DSOs understand that these will also have a direct effect on the price of equipment and its availability: if
there is a greater vendor competition on the supply market due to a greater number of vendors, the vendors
might lower their prices in order to create a competitive advantage.
At the same time due to greater number of vendors, economies of scope can be realised and both the
maturity of technologies and the range of functionalities offered improves for the DSOs.
2. Stable, robust and extensive telecommunication-infrastructure needs to be further
developed and deployed across the distribution networks, both urban and rural, to ensure
that smart grid roll-outs are possible and practical.
Strengths and weaknesses as well as opportunities and threats relate closely to the improvement and / or
extension of communications infrastructure. Extension of wireless / wired technology in rural areas would
improve network communication and thereby has an impact on the reliability and therefore effectiveness of
monitoring and control of the grid and network components. This is especially the case for centralized
solutions where the necessary extension of the telecommunication network (usually performed by third
party) has been identified as the source of major threats related to operational risk and increasing
uncertainty. . In order to facilitate greater use of infrastructure sharing it would be useful to foster the
harmonisation of regulatory and technical issues and the creation of a European repository classifying all
existing and upcoming infrastructure. Rules should also be established for allowing adequate access to
public communication infrastructures and the fees etc. to be paid.
3. Smart Meter rollout is major factor in supporting successful smart grid development. In
order to facilitate the development of smart grids existing modern infrastructures like full-
scale Smart Meter rollouts should be leveraged as far as possible.
In parallel to the improvement of the supporting and enabling ICT infrastructure, the analysis shows that a
network-wide DSO Smart Meter rollout is expected to have a supporting and positive influence on the
efficiency of day-to-day grid operation, this is especially the case for LV-networks where traditionally there
has been little detailed provision of network related data for the DSO to monitor the network status and
performance.
The majority of the solutions implemented in DISCERN are designed to monitor, utilise and embrace
customer usage data to better understand their behaviours, the performance of the network and inform
design and operation decisions. Smart Meters can provide (for the first time) reliable data on LV network
utilization and so help to improve monitoring and control of LV networks. In addition, a network wide role out
of Smart Meters is able to help to optimize data collection for the purpose of meter reading and calculations
and help to identify the separation of non-technical losses. However, key to this is the careful consideration
of what data will be available to the DSOs from the Smart Meters, and in what timeframe (for example where
Smart Meters are not owned and operated by DSOs, e.g. in the UK, day after information provided by a
Supply company will not be sufficient for operational control of a network).
Therefore, subject to the appropriate regulatory conditions being in place (see also chapter 3) the Smart
Metering rollout is a major factor in supporting successful smart grid development and deployments even if
the rollout is not a pre-condition to develop smart grids. Dedicated Use Cases (RWE) have shown that the
enabling of the smart grid development is possible without the necessity to rollout smart meters based on a
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large or full-scale deployment.
4. The use of common standards and protocols is a key to true interoperability of Smart Grid
components and their efficient deployment.
ICT is a key to the successful implementation of smart grid solutions. A choice of well-established protocols
and standards for information structure are available. The agreement or better the normalisation of
standards and especially protocols will lead to an increasing product standardisation and more vendors
offering smart grid electronic devices at cheaper prices (economies of scale). As a consequence greater
experience with the technology by higher quantities should lead to improved solutions, for example relating
to communication protocols and use of open standard data model.
The use of standardised components and protocols supports a number of evaluation aspects including the
availability of a component in the market and the replicability of the solution within the different European
countries.
5. Regulatory Incentives relating to innovation, enabling technologies and communications
infrastructure as well as traditional CAPEX and OPEX (or TOTEX) are key for supporting
smart grid Use Cases identified as being of benefit to the network and its customers, and
should be developed and implemented to promote the extensive roll-out of such
technologies and enable network users to gain the substantial benefits.
Regulatory incentives are a significant parameter and key financial driver to support the development and
deployment of the new technologies and strategies implemented in DISCERN. DSOs indicated that there
should be clear incentivisation for implementing such new technology (e.g. approval of CAPEX within grid
fees) and also incentivisation for the improvement and optimisation of business and operational processes
(e.g. better prediction leading to the avoidance of (or fewer) faults, and shorter times to fix these faults).
Potential solutions here have to be country-specific in order to be fully compliant and effective within the
relevant regulatory regime thereby having maximum impact on the networks and the DSOs.
Further insights concerning regulatory measures and potential changes to regional/national frameworks are
described in Deliverable [D 8.1].
6. A framework for data-related regulation has to be developed and agreed to facilitate the
expansion of Smart Grids.
It was noted that some of the threats identified by the DSOs in the SWOT-Matrixes are related to uncertainty
with respect to data-handling controls and regulation. Most of the technologies implemented in DISCERN
help to capture and store grid-data, including customer usage patterns and other parameters which might be
beneficial for energy sales and trading. Therefore DSOs recognise that increased data privacy and security
regulations may lead to updates and adaptations to technologies through time to ensure compliance with
such requirements and to avoid constraints to using any existing technologies. The converse of this is also
true and could present an opportunity for DSOs as they could become the provider of (data trusted) services
that act to facilitate the local energy markets through provisions of relevant sets of data to other market
participants. Regardless of the future role of the DSO, it is important to note that regulation of data collection
and access to the data sets will be a key topic as the understanding of the behaviour of the end user
becomes more important to all parties involved in energy supply and distribution.
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Clear data handling guidance and requirements as set out by the regulators is necessary in order to reduce
the high degree of uncertainty faced by all DSOs that may delay or defer the rollout of smart grid
technologies. While DSO are striving to operate all data according to the legal security and privacy
requirements legal and regulatory authorities should be aware that these requirements are balanced with
regards to the development of economic viable power grids of the future.
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5 References
5.1 Project documents
List of reference document produced in the project.
[D1.1] DISCERN WP1 D1.1 List of agreed KPIs with associated metrics and refined smart grids
functionalities list
D1.3] DISCERN WP2-3 D2-3.2 Tool support for managing Use Cases and SGAM models
[D2-3.3] DISCERN WP2-3 D2-3.3 Standard assessment regarding devices and communication
architectures
[D4.1] DISCERN WP4 D4.1 Identification of present system architecture
[D4.2] DISCERN WP4 D4.2 New system functionality
[D5.2] DISCERN WP5 D5.2 DISCERN guide for facilitating the replication and scalability of the
solutions
[D5.3] DISCERN WP5 D5.3 Technical specifications for implementation and economic analysis
[D7.2] DISCERN WP7 D7.2 Monitoring and Testing report the lessons learned from the field tests
[D8.1] DISCERN WP8 D8.1 Business case on Use Cases and sensitivity analysis
5.2 External documents
[EU-EG1] CEN-CENELEC-ETSI Smart Grid Coordination Group, SGCG / M490/G_Smart Grid Set of
Standards
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6 Revisions
Name Date
(dd.mm.jjjj) Version
Changes
Subject of change page
Anna Bellot/ DNV GL 02.11.2015 0,1 First version for review
Anna Bellot / DNV GL 30.11.2015 1,0 First complete version including comments to version 0.1
all
Anna Bellot / Lutz Itschert / DNV GL
29.12.2015 2,0 Second version including comments of all partners and revision by SSEPD
all
Lutz Itschert / DNV GL 27.01.2015 2.1 Comments of VTF and RWE included
5, 9, 10, 12, 13, 25, 30, 37
Carmen Calpe/ RWE 29.02.2016 2.2 Final review all
Carmen Calpe/ RWE 10.03.2016 3 Approval document
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Appendices
Appendix A Template SWOT Analysis
SWOT ANALYSIS FOR USE CASE: <<Name of Use Case>> Please note that general information to each Use Case will be filled by DNV GL with respect to the answers
from D8.1 CBA questionnaires.
C. SWOT Analysis - Strength, Weaknesses, Opportunities and Threats
1. Target and structure of SWOT analyses questionnaire
SWOT is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats associated with the solutions trialled at the demo-sites within DISCERN. It analyses internal and external conditions in order to identify future opportunities and risks, and helps to identify strategies for dealing with them. In the first step internal successes and failures as well as potential synergies are identified (columns 1-2). If applicable, possible regulatory / legal, and technological drivers – with respect to each layer – are discussed (columns 3-4).
Objective of the SWOT analysis in DISCERN is
to analyse strength and weaknesses of different technical solutions / ICT infrastructure used by the DSOs in the different demo-projects and so to identify enabler and disablers for efficient network / grid operation and development,
to analyse strength and weaknesses of demo-projects operational organization (process view) in order to identify enabler / disabler for efficient network operation and development within the organization,
to analyse (based on the results of T8.3) opportunities and threats for network operation/ development which can be ascribed to different regulatory backgrounds and so to identify implications for regulators,
to analyse opportunities and threats for network operation and development due to different degrees of distributed generation.
SWOT analysis will be performed for each of the DISCERN Use Cases.
Leaders are asked to fulfil the questionnaire to share experiences with listeners and external DSOs.
This SWOT analysis is structured in accordance with the SGAM layers introduced in DISCERN (see D2-3.2 Tool support for managing Use Cases and SGAM models):
Results of SWOT analysis are input for a following decision making process
and the development of a strategy, not answers! It includes internal (own company) and external (surrounding world)
analysis.
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Component Layer (presenting the physical distribution of the components that implement the technical functions),
Communication Layer (proposing communication standards to enable the exchange of information objects),
Information Layer – Canonical Data Model View (showing the canonical data models that shall be used to achieve semantic interoperability within the solution),
Information Layer – Business Context View (representing the information objects that must be exchanged within the solution in order to realize the technical functions),
Function Layer (describing the technical functions that are realised by the Smart Grid solution that is being modelled),
Business Layer (defining concepts related to the business architecture, such as business actors, objectives, and business processes).
2. General guidelines
Gen
era
l G
uid
elin
es
For each layer the name of the layer and guidelines to assist in the comprehensive completion of the questionnaire is provided.
Please add information to the Strengths, Weaknesses, Opportunities and Risks sections below each header as appropriate for sections 1-5 relating to the layers of SGAM.
Further Work
This questionnaire will be part of the related delivery of the SWOT analysis (D8.2: SWOT analysis of applied technologies and solutions).
Additional information could be added like information of scalability and replicability from related guidelines in D5.2 DISCERN guide for facilitating the replication and scalability of the solutions.
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No Strength Weaknesses Opportunities Threats
1
Component Layer (presenting the physical distribution of the components that implement the technical functions). Please comment on your experience related to the use of technical components / devices and the ICT infrastructure, which can be based on: Use of existing or new components
Equipment specifics, e.g. requirements relevant to the location (necessary, optimal, etc.) of electrical, information and communication components
Interface design and interoperability, etc.
Please fill
Please fill
Please fill
Please fill
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No Strength Weaknesses Opportunities Threats
2
Communication Layer (proposing communication standards to enable the exchange of information objects) Please comment on your experience related to the protocols and interoperable data exchange, which can be based on: DSO-owned infrastructure
Use of protocols (i.e. is the selected protocol the best choice)
Design of interfaces
Technological results (e.g. high / low number of outages)
Please fill
Please fill
Please fill
Please fill
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No Strength Weaknesses Opportunities Threats
3
Information Layer Canonical Data Model View (showing the canonical data models that shall be used to achieve semantic interoperability within the
solution)
Information exchanges (representing the information objects that must be exchanged within the solution in order to realize the technical functions)
Please comment on your experience regarding two views: canonical data models and information exchanges: Canonical data model Availability of standard data model
Comprehensive inclusion of all the aspects of the solution within the data model Standardisation gaps
Information exchanges Volume and frequency of data exchanges Advantages/disadvantages of a centralised/distributed data management
Please fill
Please fill
Please fill
Please fill
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No Strength Weaknesses Opportunities Threats
4
Function Layer (describing the technical functions that are realised by the Smart Grid solution that is being modelled) Please comment on your experience related to the required functions, which can be based on: functions developed within DISCERN developed and whether these can be used outside of the project thanks to their interoperability
functions associated with network topology, capacity, failure, experience or other
Please fill
Please fill
Please fill
Please fill
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No Strength Weaknesses Opportunities Threats
5
Business Layer (defining concepts related to the business architecture, such as business actors, objectives, and business processes) Please add here any factors which relate to:
development of the market for generated distribution and increased use of sustainable energy technologies (e.g. EVs)
regulatory and legal development
cost, economics and other
Please fill
Please fill
Please fill
Please fill