Utilities, Smart Grids, and the Convergence of IT and OT

smart grid funding 400

March 15 2016

The goal for any utility that invests in smart grid technology is to attain higher efficiency and reliable performance. At the heart of this evolution is the convergence of operations technology (OT) and information technology (IT), which changes every aspect of a utility’s operations.

Understanding the dynamics of OT and IT

In basic terms, OT comprises the grid physical infrastructure assets and applications, and IT is the human interface that enables rapid and informed decision making.
Today, the smart grid is transforming utility operations and pushing IT across its traditional boundary into OT at a remarkable pace. The growth in grid modernization is driving the way utilities are deploying equipment and automation, influenced by these trends:

  • continuous growth in OT deployment
  • continuous implementation of IT to model, monitor, and manage distribution systems
  • an urgent requirement to integrate IT and OT networks

Integrating IT and OT

The convergence of IT and OT means bringing together applications and devices in new ways, and tying together systems that have primarily operated in isolation. Along with growth in numbers of devices and increased functionality, bringing the systems together introduces integration on a new scale.

Addressing the needs of the IT/OT-integrated distribution grid requires advances in communications, adherence to expanded standards, and a focus on architecture and security. Points to consider include:

  • communications and protocols — the IT/OT-integrated world involves a federation of networks that combine private and public infrastructure, and integrate standards-based, open technologies such as IP with existing proprietary legacy solutions. No operating utility can afford to design its communications infrastructure from point zero; however, it’s important to maintain the parameters that support OT in mission-critical applications to ensure reliability, availability, security, and predictable performance.
  • standards — developing interoperability standards plays a key role in supporting grid modernization. National, industrial, and trade groups are all contributing to establishing the definitions and specifications for connecting grid devices. Processes are already in place to close the gaps in current standards.
  • architecture — in addition to addressing the core requirements of reliability, security, and performance, the new smart grid IT/OT architecture must support the integration of existing enterprise systems within the grid modelling, monitoring, and management environment. As with communications infrastructure, no operating utility has the luxury of designing and implementing its architecture from scratch. But industry-proven architectural roadmaps exist to help utilities work through the design process.

Transforming to a smart grid operation

The move to the smart grid is an evolution, not a revolution. The change begins with a simple awareness of the significant influence of IT on operational equipment.
Next is the recognition of a need to create a clear, long-term roadmap for a smarter network. With the roadmap as a guide, an IT/OT-converged approach will allow utility personnel to deploy each grid modernisation application project as a part of a connected whole.

Finally, utility personnel should carefully consider decisions involving network systems. Deployment of an advanced distribution management system (ADMS) will help a utility to succeed in achieving IT/OT technology acceleration.


This article was first published as a Schneider Electric insight; www.schneider-electric.ca/en/.

Related Articles


Latest Articles

  • ABB Wins New Product Award at MCEE Show

    ABB Wins New Product Award at MCEE Show

    April 28, 2025 ReliaHome™ Smart Panel won Best New Product Award in the Software, Controls and Related Components category. Iberville® Gangable boxes with low-voltage cables support bracket was recognized as a finalist in the Commercial, Institutional and Industrial Electrical Products category. ABB was honored with a Best New Product Award in the Software, Controls and… Read More…

  • Weidmuller Celebrating a Legacy: 175 Years Globally, 50 Years in Canada

    Weidmuller Celebrating a Legacy: 175 Years Globally, 50 Years in Canada

    April 28, 2025 The year 2025 is truly special for Weidmüller. The company proudly celebrates not just 50 remarkable years in Canada but also its 175th anniversary globally—an extraordinary achievement few companies can claim. This legacy is a testament to the company’s relentless pursuit of innovation and commitment to refining its offerings. But the journey… Read More…

  • Canada Stands Tall at Hannover Messe 2025

    Canada Stands Tall at Hannover Messe 2025

    April 28, 2025 By Owen Hurst At Hannover Messe earlier this month Canada had a strong presence as the host country with a wide variety of companies and programs focusing on the development of advance technology. The presence was accentuated by numerous halls hosting Canada pavilions. Partner Country Canada presented itself impressively at HANNOVER MESSE…. Read More…

  • BC Prompt Payment Legislation Progressing

    BC Prompt Payment Legislation Progressing

    April 28, 2025 Consistent with its mandate of growing the economy, the government wants to ensure that businesses are paid promptly for work performed on (or material provided to) construction projects. British Columbia’s Ministry of Attorney General staff have been tracking the issue of payment delay in the construction industry, including legislative responses in other… Read More…


Changing Scene

  • Schneider Electric Advances in Product Environmental Data Transparency

    Schneider Electric Advances in Product Environmental Data Transparency

    April 28, 2025 Schneider Electric has launched its Environmental Data Program. This initiative, which builds on the legacy Green Premium label, provides customers with unique access to information on the environmental impact of its products, enabling them to make better informed, data-based decisions and meet evolving regulatory requirements with confidence. Schneider Electric has frequently been recognized… Read More…

  • nVent Sustainability Report Highlights Progress and Focus on Electrification

    nVent Sustainability Report Highlights Progress and Focus on Electrification

    April 15, 2025 nVent Electric plc announced the release of its 2024 Sustainability Report. The new report highlights nVent’s achievements in each of its sustainability focus areas: People, Products, Planet and Governance. The report also highlights how nVent solutions support electrification, digitalization and sustainability efforts around the world. “nVent is becoming a more focused electrical… Read More…

  • Ontario Introduces Legistlation to Unlock Trade and Labour Mobility Within Canada

    Ontario Introduces Legistlation to Unlock Trade and Labour Mobility Within Canada

    April 18, 2025 As a next step in its plan to protect Ontario by unleashing the province’s economy, the Ontario government is introducing the Protect Ontario through Free Trade within Canada Act to unlock free trade and labour mobility within Canada. This legislation will, if passed, create new opportunities for job creation and investment attraction, supporting economic… Read More…

  • Ontario, P.E.I. Join Nova Scotia With Legislation to Remove Internal Trade Barriers

    Ontario, P.E.I. Join Nova Scotia With Legislation to Remove Internal Trade Barriers

    April 18, 2025 Prince Edward Island and Ontario have joined the Nova Scotia by introducing reciprocal legislation that will help foster an environment of mutual recognition of goods, services and labour mobility between these provinces. “Leaders across the country are expressing interest in removing trade barriers, and I’m very pleased that P.E.I. and Ontario have… Read More…