to recast the Internal Electricity Market
Directive. The Commission decided to
focus on promoting further development of integrated short-term electricity
markets, hoping to incentivize consumers to shift their demand behavior,
improve short-term backup solutions
and increase generation flexibility.
The Commission believes that price
signals and their formation should be
more directly impacted by scarcity of
electricity and grid constraints.
This model increases exposure of off
takers, including households, to price
variations. It poses new challenges in
defining socially and politically acceptable security of supply strategies.
Possibly, the deployment of smart
grids will provide more choice in finding
the right balance between these principles, as well as the resulting liabilities
and benefits for system users.
• Customer vulnerability must be
addressed. Should vulnerable customers be protected from the possibility of
higher bills? If so, how?
• Should some customer groups less able
to participate in dynamic pricing be
excused from bearing the extra costs
of smart grids or being subject to new
service conditions? If so, what can or
should be done for these customers?
• For consumers, the most obvious
manifestation of smart grids will
be the presence of smart meters in
their homes. The extent to which
they feel the full benefits of smart
grids will depend, in part, on the
choices made at a national level about
smart meter rollouts, as well as new
choices proposed by the Commission
in the November 2016 package.
Some of these issues have been
reflected in the commission’s proposal
generation or energy storage system;
regulation must address supply into
the grid as well as safety and security.
With proposals of increased obligations
of distribution network operators for
local balancing of supply and demand,
smart grids seem inevitable for achiev-
ing such goals.
• It will be important to adopt regulatory, business and market models that
ensure that the costs and benefits of
smart grids are shared fairly across the
value chain, including system operators, generators, retailers and other
intermediaries and end users.
The following are consumer related:
• Detailed data sets generated by smart
grid operation must be considered,
maybe by way of license condition.
• Security of supply in the more com-plicated/automation-driven networks
will be a concern to consumers.
greater to narrower-band communications of 100kHz and 1. 25 MHz in
channel size. This expansion of channel
sizes has opened numerous new radio
frequencies, and new technologies for
either a completely utility-owned and
operated network to new services dedicated just to mission critical traffic.
An attack on the power grid has
the potential to be one of the greatest threats to the safety of individuals
throughout the nation, particularly when
focused on densely populated areas with
a heavy reliance on continued power
for almost all daily activities. This is
precisely why utilities should be upholding their responsibility to ensure that
the increased efficiencies gained from
network connectivity are executed in a
secure and reliable manner.
defined radios (SDRs) that use a variety of
licensed industrial radio spectrum. These
technologies are capable of changing frequencies over a wide range quickly to
adapt to changing needs including interference and even intentional jamming.
Selection of technologies and in-depth
insight on developing these new networks
has been clearly laid out for the industry
within a new standard.
The electric utility industry, through its
leading research arm, the Electric Power
Research Institute (EPRI), is driving a
new IEEE standard known as 802.16s, or
GridMAN, for actively defending against
and preventing disorder caused by these
types of hacker attacks. This new stan-
dard expands the existing 802.16 stan-
dard, which originally only allowed for
channel bandwidth of 1. 25 MHz and
network can wreak havoc in the control
CREATING A NEW INDUSTRIAL INTERNET
In the wake of automation adoption and
cybersecurity demands, utilities now need
to upgrade their networks to keep pace
with best practices. Although public wireless networks seem like a viable option, for
most critical utility functions, they pose too
much quality and security risk.
Private wireless networks using licensed
radio frequencies is one solution that is
considered a best practice for utility networks. To create the network, utilities can
either deploy their own network or partner with a private network provider that
has strict rules in terms of access and connectivity to the public networks. These
networks rely on state of the art software
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