Virtualized Substations

Overview

In a virtual substation, many of the conventional protection and control functions typically assigned to specific hardware devices are instead implemented virtually using intelligent electronic devices (IEDs). Components such as relays and control panels can be virtualized, allowing for more centralized management of these systems at the operations center. This approach simplifies the upgrade process and enhances system adaptability, enabling utilities to respond more efficiently to changing operational demands and improve overall reliability.

Benefits​

Virtual substations have the potential to help address the following grid challenges:

Outage Management: 

  • Virtual substations improve fault detection and response times through centralized monitoring and analysis, allowing for quicker restoration of service after outages.

DER Integration: 

  • Virtual substations support the integration of distributed energy resources (DERs) by providing the necessary control and communication infrastructure to manage these resources effectively.

Technology Readiness Level (TRL): 6

Several utilities have begun experimenting with virtual substations, using intelligent electronic devices (IEDs) and advanced communication technologies to enhance grid operations. These techniques require further refinement though before they can be fully implemented in operational environments.  

Adoption Readiness Level (ARL)

Value Proposition

Delivered Cost

Low Risk

Installation time for a digital or virtual substation can be reduced by up to 50%.

Virtual substations can result in overall project cost reduction of 10-15%.

Functionality Performance

Low Risk

Virtual substations provide robust functionality that often exceeds traditional systems by allowing for extensive pre-deployment testing and optimization.

They enhance performance through precise modeling and simulation capabilities, which improve overall system design and reliability.

Ease of Use/Complexity

Low Risk

Virtual substations require less copper wiring and less space.

This new design enables rapid, standardized integration and quick replication.

Does require effective staff training.

Market Acceptance

Demand Maturity/Market Openness

Low Risk

There is a growing openness as utilities look to integrate more digital solutions to improve grid management and resilience.

Market Size

Medium Risk

The potential market size for virtual substations is expanding with the global push towards smarter energy solutions.

Would likely be a solution for new substations or to replace failing infrastructure.

There are more than 55,000 existing substations in the U.S.

Downstream Value Chain

Low Risk

The value chain, business proposition, and pathway between technology producers and the utility companies are well established.

Resource Maturity

Capital Flow

Low Risk

The financial model for virtual substations shows good returns relative to traditional substation designs.

New substation buildouts using virtual or digital technology would be financed the same as traditional substations.

Project Development, Integration, and Management

Medium Risk

The installation of virtual substations has not occurred widely yet.

As more projects are completed there will be more opportunity for process maturity through consistent track records.

Infrastructure

Low Risk

New buildouts would be simplified with virtual technology.

Although the physical infrastructure at traditional substations could be replaced, it likely wouldn’t occur until existing hardware needed replacement to due to age or failure.

Manufacturing and Supply Chain

Low Risk

The manufacturing and supply chain risks for virtual substations are generally low since the primary components are software-based.

There is a well-established supply chain for the required IT and network hardware, reducing potential delays or disruptions.

Materials Sourcing

Low Risk

Material sourcing risks are minimal as virtual substations primarily rely on digital resources and standard computer hardware.

Virtual substations use significantly less materials like copper wiring.

Workforce

Low Risk

Less workers are required to monitor virtual substations.

Even though some additional training may be required for staff, the overall reduction in workloads will more than compensate for the added training needs.

License to Operate

Regulatory Environment

Low Risk

Regulatory frameworks exist on domestic and international standards.

Standards help ensure intelligent electronic devices in electrical substations have defined communication protocols.

Utility companies are well versed in regulatory compliance for infrastructure including hardware and software.

Policy Environment

Low Risk

Federal policies have been put in place to encourage grid resilience and modernization efforts.

Efforts by the Department of Energy have created national laboratory consortiums to support grid modernization.

Permitting and Siting

Low Risk

By eliminating electrical connections between power equipment and control panels the work environment becomes safer.

Virtual substations pose low environmental and safety risks since they operate primarily in a digital domain, reducing physical impacts and hazards associated with traditional substations.

Environmental & Safety

Low Risk

Virtual substations pose low environmental and safety risks since they operate primarily in a digital domain, reducing physical impacts and hazards associated with traditional substations.

Community Perception

Low Risk

Generally, community perception is positive, particularly as virtual substations contribute to safer and more reliable energy systems without the need for extensive physical construction.

Effective communication and community engagement strategies can further enhance public support.

Case Studies & Implementation

Saudi Aramco’s Optimized Power System Automation

Successful Implementations:

  • Integration of IEC-61850 Compliant Devices: Saudi Aramco successfully integrated multifunction relays that handle both protection and metering, replacing separate metering devices. This led to a more streamlined substation setup with reduced infrastructure complexity.
  • Substation Automation System (SAS) Deployment: Initiated in 2007, the SAS utilized the advanced communication capabilities of protection relays for additional functionalities like metering and remote control, enhancing operational efficiency.

Lessons Learned:

  • Technical Coordination: The project highlighted the importance of ensuring seamless integration and communication between various substation components. Effective technical coordination was crucial in managing the complexities associated with upgrading to a fully integrated system.
  • Stakeholder Engagement: Engaging with internal and external stakeholders was key to the project’s success. It ensured that all parties were aligned with the project goals and understood the benefits of the new automation standards, fostering a collaborative environment for implementation.

Resources: Saudi Aramco vision of optimized power system automation (PSA)

Georeferenced 360-Degree Photos at Mascarenhas de Moraes Hydroelectric Power Plant Substation

Successful Implementations:

  • Integration of 360-Degree Photos: Successfully implemented georeferenced 360-degree photographic technology to create a virtual environment of the substation, enhancing the realism and interactivity of the virtual model.
  • Enhancement of Virtual Navigation: Enabled precise and intuitive navigation within the virtual substation environment, allowing users to visualize equipment and site layout as if they were physically present.

Lessons Learned:

  • Technical Coordination: This implementation highlighted the importance of accuracy in georeferencing and syncing of visual data with existing virtual models. Precise coordination was required to align the photographic data with technical schematics for effective use in training and operations.
  • Stakeholder Engagement: Emphasized the need for effective communication between the technical team and on-site personnel to ensure the 360-degree photos were captured and integrated in a way that met operational needs and enhanced training protocols.

Reference: Georeferenced 360-Degree Photos for Enhancing Navigation and Interaction within Virtual Electric Power Substations

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