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Importance of Standardisation – The Business Case

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1 Importance of Standardisation – The Business Case
DKE 952 Dortmund, 26. August, 2003 Wolfgang Maerz MCC

2 The IEC Founded in 1906, the International Electrotechnical Commission prepares and publishes international standards for all electrical, electronic and related technologies. The Commission’s objectives are to: meet the requirements of the global market efficiently; ensure primacy and maximum world-wide use of its standards and conformity assessment schemes assess and improve the quality of products and services covered by its standards establish the conditions for the interoperability of complex systems increase the efficiency of industrial processes contribute to the improvement of human health and safety contribute to the protection of the environment

3 WTO and IEC The World Trade Organisation‘s (WTO)
„Agreement on Technical Barriers to Trade“ (TBT) makes standardization and the assessment to conformity of standards an important part of the global trade agenda and cites the IEC As one of the major partners to establish standards for trade.

4 IEC TC 57 Power System Control and associated Communications
Secretary: Dr Andreas Huber (Siemens, Germany) Chairman: Mr Thierry Lefebvre (EdF, France) TC 57 consists of 24 P-member and 11 O-member countries Scope To prepare international standards for power system control equipment and systems - including EMS, SCADA, Distribution Automation, Teleprotection and associated communications such as power line carrier - used in the planning, operation and maintenance of electric power systems. Power systems control comprises control within control centres, RTUs and substations including telecontrol and interfaces to equipment, systems and databases outside the scope of TC57.

5 Secondary Distribution
Standard domain of IEC TC 57 Power Generators 380 / 220 kV and higher Transmission Control Centres - Transmission - Distribution - Energy management - Asset management - Trouble call - etc Grid Supply Point 110 kV Bulk Supply Point 30 kV Distribution - transmission - primary - secondary - etc substations Secondary Distribution Primary Distribution Industrial Distribution Urban Distribution 10 kV Rural Distribution

6 Power System Communication Architecture
Application Domain Administrative Services Communication Level CIM - Common Information Model Power Model OM Object Models SM Service Models SA SCADA SA Switches SA Power Transformer SA C/V Transformer DP Wind turbines DP Photovoltaic DP Fuel cells Configuration Language CFL SEC Security Network Management CNM CP Communication Profiles Serial interfaces in primary equipment Primary Equipment Substation (PES) Distributed Energy Resources (DER)

7 Content From interfaces to architectures
The notion of Communication Interfaces The development of Communication Interfaces over the time The evolving of Communication Architectures The future seamless Communication Architecture The importance of international standards for Economy of countries Multinational vendor corporations Small-to-medium-sized vendor enterprises System operators (users) Energy market participants

8 From Standards to Business

9 World Electricity Market – 2,385 Billion € 1)
100% 7,8 Other 90% 6,2 Consumer Electronics 5,4 80% 3,0 1,3 Houshold Appliances 70% Luminaires & Lamps 60% 911 Billion € 38,2 Medical Systems 50% Information Technology influences and Communications 40% 4,1 Car Electric & Electronics 112 Billion € 4,7 30% Measuring & Automation 17,8 20% 425 Billion € Energy & Installation Equipment 10% Components 11,5 0% 1) 1999 % share

10 World Electricity Market – growth rate in %/ a 1)
14 % Other Consumer Electronics Houshold Appliances Luminaires & Lamps Medical Systems Information Technology and Communications Car Electric & Electronics Measuring & Automation Energy & Installation Equipment Components 12,5 12,0 12 % 10 % 8 % technological drivers active! 6 % 5,5 4,5 4 % 3,5 2,5 2,5 2,5 2,0 2,0 2 % influences 0 % 1) 1999 % growth/ a old industry! 1) 1999

11 Market share of Measurement & Automation
40 % Automation 25 % Measurement & Controls 20 % Other 15 % Sensors & Actors 112 Billion € World-wide /a 1) 1) 1999 2 % Automation system operators 2 Billion € /a influences

12 Life-Cycle Cost of Automation Systems 1)
Maintenance 25 % Hard- and Software 10 % Too many Interfaces increase the overall cost! SW Upgrades 30 % 55 % Engineering 35 % Don‘t forget! 45 % 1) Automotive industry

13 Interfaces Vendor Product User Market Region Operation
Fitting together by standardized Interfaces User Market Region Operation

14 Interfaces telecontrol
Application Serial Link Communication Standardisation Object model Services Communication Stack (OSI layer 1-7) Example IEC Telecontrol CC-CC TASE.2 (MMS) Example IEC Telecontrol -101, -102, -103, -104

15 Interfaces in substation
Application Communication Devices (IDEs) Bus Standardisation Device model Object model Services Communication Stack (OSI layer 1-7) Example IEC 61850 Substation bus (MMS, ..) Process bus

16 Interfaces in control centre
Integration Bus Standardisation Object model Interfaces of Components Communication Stack (CORBA, DCOM, ...) Example IEC 61970, 61968 Integration Bus (IB) Common Information Model (CIM) Control centre Application Software External systems IDL CIM Communication (legacy systems with adapter) Components (multiple vendors)

17 Evolving of Communication Architectures
Protocol IEC /101 104 (IP routing) Time 80‘s IEC /TASE.2 (MMS) (IP routing) Protocol Application Objects Services Mapping 90‘s IEC (MMS, ...) IEC (CORBA, ..) IEC (CORBA, ..) Bus Protocols Objects Services Mapping 00‘s

18 Logical Device (vendor specific)
Object Modelling of IEDs in Substation Objects Services Mapping Bus Protocols Time 00‘s Application Logical Device (vendor specific) L. Node Object Functional Group

19 Modelling of real world devices
Virtual device (circuit breaker) Real world device (circuit breaker) Class_Name attribute ... services mapping meta data

20 The Importance of Meta Data
Bill 1,000 $ ? € ?

21 Future Seamless Communication Architecture
Conventional Web-based fixed Web-based mobile : anytime anywhere a seam

22 Seamless Definition Seamless is defined on the abstract level for interoperability without data format and service conversion and does not exclude physical seams at various system levels if necessary A system is seamless if the application layer data model (objects) and abstract services (ACSI, Abstract Communication Service Interface) are used throughout the system within the substation and for telecontrol to the control centre This does not exclude different protocol stacks on different system levels the objects and services are mapped to, but the use of the same stack throughout the system simplifies it and allows potential additional cost savings.

23 Seamless Communication Architecture (1)
Control centre with CIM Web based mobile access 1) UMTS GPS seamless coms : meta data configuration data real-time data Engineering Station radio Network OSI Layer 1-3 (IP) Substation Host (with Proxy) IEC Substation bus 1) (7/3 layer) IED IEC Process bus 1) (7/3 layer) HV/MV Equipment 1) and emergency system in case of data network or CC failure 1) substation bus / process bus can be identical (flat architecture)

24 Seamless Communication Architecture (2)
Network OSI Layer 1-3 (IP) IED HV/MV Equipment IEC Substation bus 1) (7/3 layer) IEC Process bus 1) Substation Host (with Proxy) Control centre with CIM Remote CC front end Other possibility with distributed remote CC front end internal CC protocol 1) substation bus / process bus can be identical (flat architecture) seamless coms : meta data configuration data real-time data

25 Telecontrol & Bus Protocols
Communication Stack IEC TASE.2 (MMS, ...) over IP IEC Substation Bus (MMS, ...) IEC Integration Bus (CORBA, ..) IEC Integration Bus (CORBA, ..) Telecontrol & Bus Protocols Objects Services Mapping Application API High life > for ever Definition „Diamonds of SCADA/EMS“ Medium life < 20 years Technology

26 Seamless Objects and Services
IEC Process Bus (3 layer) Bus Protocols Mapping Application API Substation: Process Objects Services IEC Station Bus (7 layer) Bus Protocols Mapping Application API Substation: Station Control Centre IEC Station Bus IEC TASE.2 IEC 61970/61968 Integration Bus / CIM Bus protocols Mapping Application API seamless May be the same! Ethernet

27 Seamless with web-based technologies
Web-based Intranet Browser Web-based mobile UMTS GPS Coordinated Communications Seamless Object Model Seamless Virtual Communication Services Independence of Protocol Implementation Eliminating Gateways and Format Conversions Reduced cost of implementation Reduced cost of Maintenance Reduced cost over the life cycle seamless coms

28 Example of seamless physical Architecture
Control centre Substation Host with Proxy Engineering IEC 61850 for telecontrol Router IEC 61850 IEC 61850 Bay #1 Bay #2 Bay controller Relay A Relay B Switch 10 Mbit/s Bay controller Relay A Relay B BUS Switch 10 Mbit/s Switch 10 Mbit/s IEC 61850 IEC 61850 (flat switched Ethernet network) Modern Switchgear Modern CT / VT Modern Switchgear Modern CT / VT Same data model, services and protocol mappings

29 decentralised wind power systems
Seamless also for decentralised wind power systems WIND TURBINE GENERATOR SYSTEMS IEC Part 25 - Communications for monitoring and control of wind power plants communication based on IEC (i.e. ISO 9506; MMS) IEC TC 88 IEC TC 57

30 communication based on IEC 61850 (i.e. ISO 9506; MMS)
Coming soon ... DER Distributed energy resources .. . decentralized communications for fuel cells and photo voltaic. communication based on IEC (i.e. ISO 9506; MMS) IEC TC 57

31 Need for a Security Framework
Holding Subsidiary #1 System Operator Electricity #2 Generation #4 #5 #n Public Telecoms + Internet External Process Net World Other System Operators #3 System Operator Gas Corporate Network ?

32 Vision: Convergence and Seamless Control
Services Networks Terminals Multimedia Applications Information Technologies & Communications Seamless Objects Services Platforms Control bang Seamless Control

33 - the national macro economic view -
How the economies of countries benefit from international standardisation - the national macro economic view -

34 International standardisation leads to cost savings of
about 1 % of the gross national product (GNP) 1). This results to world-wide savings of about 20 Million € of the EMS/SCADA market (2 Billion €) 24 Billion € of the electricity product market (2,385 Billion €) The impact of International Standardization on the economy is greater then of those of patents and licences 1) Standardisation leads to technology transfer between vendors In the Standardisation process vendors learn of the requirements of users 1) Research result (DIN Berlin, TU Dresden, FhG-ISI Karlsruhe), Germany, 2000

35 How multinational vendor corporations benefit from international standardisation - the global micro economic view -

36 Since the middle of the 20th century, growth rates in
international trade and investment have exceeded those of domestic economies. Innovative vendors gain more than 50 % of there sales with products < 5 years old and need standards for it From this follows that standards must keep up with the pace of innovation Standardisation helps vendors to enter foreign markets and profit from it.

37 Developing anticipatory intelligence:
You can acquire information that enables you to anticipate, before other stakeholders, circumstances that have not yet widely manifested themselves.

38 Using customer networks:
You can identify consumer needs and conceive new products through networking with user representatives on standards committees and this may enhance the market success of new products.

39 Saving time and money: One of the goals of standardization is to make design and manufacturing simpler, cleaner, surer. By using standards, you don’t need to reinvent the wheel every time. Instead, you can focus your efforts on adding something new to the wheel – something that will improve the quality of life and that will contribute to technological progress. Knowledge about standardization helps to research and invest in the right technology

40 Improving safety and quality:
Nobody today can pretend to know all there is about a certain technology. Within IEC working groups you will encounter ideas some of which will be new and valuable, others which may help you to avoid making costly mistakes.

41 ABB Using IEC international standards saves us time and money in our multi-million dollar transfer of technology project with Indian Railways. Without IEC standards this project could not have been attempted. Christian Vetterli Technology Transfer Project Head

42 Siemens If customers don’t see the IEC present in the product, Siemens must justify why. The IEC has made globalization possible for Siemens ... Without IEC standards, prices for Siemens products would be much higher as they would have to adapt to different national requirements around the world. Gerhard Goller Head of Global Operations for High-Voltage Switchgear

43 Vendors move to the markets
One world One technology One standard IEC (substation bus & process bus & telecontrol) for Electricity nets communications Windmill turbines communications Coming soon ... fuel cells communications

44 How small-to-medium-sized vendor enterprises benefit from international standardisation - the global micro economic view -

45 Since the middle of the 20th century, growth rates in
international trade and investment have exceeded those of domestic economies. Standardisation helps SMEs to enter foreign markets and profit from it.

46 It is the received view that SMEs in technology-intensive industries have little possibility of setting either de jure or de facto standards. While there may be far fewer de facto standards set by SMEs, nevertheless SMEs have important incentives for participating in international standardization. These incentives have to do with very important benefits related to strategic marketing advantages.

47 Many new SMEs - particularly the high-tech or internet-related ones - are international right from the beginning, yet these companies often experience substantial problems and high failure rates when trying to penetrate foreign markets. SMEs must address this from the beginning. One strategy they can use to penetrate successfully is being involved in international standardization.

48 SMEs are able to provide third party equipment to systems of big vendors using standardized interfaces SMEs can act as suppliers of big manufactures SMEs mostly gain from technology transfer

49 How System Operators benefit from international standardisation

50 Sales (fee of net and system services use)
ROI driven System Operators SCADA/EMS & Control Systems requirements standards Asset- Management (ROI) Engineering Operation Power System Control Sales (fee of net and system services use) Market Participants Net Customers Vendors Market rules and codes Regulation System services Balancing Metering Settlement Products Construction Services Fee comparison with other SOs

51 Open standardized architectures substantially reduce
installation time and cost and allow equipment from multiple vendors within one system. Answer: Standard support of System integration Interfaces.

52 Approximately 55 % of the installed cost of utility control systems are associated with system configuration and integration over the life cycle Answer: Standard support of System migration Configuration Maintenance Conformance tests.

53 How market participants benefit from international standardisation

54 Electronic business language
The function of the liberalized energy market with many market participants and more than 1 million transactions per day 1) in Europe relies heavily on electronic communication Answer: Standard support of Electronic business communication based on ebXML, Wb Services Energy market specific business language True B2B (not over mail boxes and folders) High security and performance. Modelling is a regional issue (Europe: ETSO, EFET, ..) 1) Study of the EU, 2001

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