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

  • Designing for Demand: The Role of Transformers in a Resilient EV Future

    Designing for Demand: The Role of Transformers in a Resilient EV Future

    June 23, 2025 Transformers in the EV Charging Boom: Are We Ready for the Load? As electric vehicles (EVs) continue their rapid rise, one question looms over the energy sector, municipalities, and developers alike: Is our infrastructure truly ready for the surge in demand? From city streets to highway rest stops, new EV chargers are… Read More…

  • The Time is Now: An Industrial Energy Efficiency Action Plan

    The Time is Now: An Industrial Energy Efficiency Action Plan

    June 23, 2025 In a whitepaper released on June third, ABB has set out the scale of the challenge facing the global industrial sector and emphasizes the critical role of industrial energy efficiency in meeting rising energy demand while strengthening energy security & affordability and driving industrial competitiveness. With 45% of the world’s electricity converted… Read More…

  • Multi-Family Construction Intentions Weigh Down Residential Sector

    Multi-Family Construction Intentions Weigh Down Residential Sector

    June 23, 2025 In April, the total value of building permits issued in Canada decreased by $829.6 million (-6.6%) to $11.7 billion. British Columbia (-$1.2 billion) led this decrease in construction intentions, which was mitigated by Ontario (+$299.3 million). On a constant dollar basis (2023=100), the total value of building permits issued in April fell by 6.6% from the previous… Read More…

  • Multi-Unit Component Leads Residential Construction Investment Decline in April

    Multi-Unit Component Leads Residential Construction Investment Decline in April

    June 23, 2025 The total value of investment in building construction decreased by $741.9 million to $22.3 billion in April. Investment in the residential sector decreased 4.5%, while the non-residential sector edged down 0.3%. On a constant dollar basis (2023=100), the total value of investment in building construction in April decreased 3.3% from the previous month and was up 5.6% on… Read More…


Changing Scene

  • Introducing the New WAGO App: Your Jobsite Sidekick

    Introducing the New WAGO App: Your Jobsite Sidekick

    WAGO at your fingertips — scan the QR to get the app now. Stay connected with WAGO wherever you go. Download the WAGO App to access product details, documentation, configuration tools, as well as local distributors — all from your mobile device. Scan the QR code to get started on the App Store or Google… Read More…

  • Ontario Launches Plan to Secure Energy for Generations

    Ontario Launches Plan to Secure Energy for Generations

    June 23, 2025 the Ontario government released Energy for Generations, the province’s first-ever integrated energy plan – a comprehensive roadmap to meet future energy needs, support new housing and power the most competitive economy in the G7. This plan is an important part of the government’s work to protect Ontario by bringing together electricity, natural gas, hydrogen and… Read More…

  • Gescan Continues to Invest in Digital Tools with New Mobile App

    Gescan Continues to Invest in Digital Tools with New Mobile App

    June 23, 2025 Gescan, a Sonepar Company, continues to invest in digital tools and technologies designed to modernize the way electrical contractors work. The latest milestone in Gescan’s digital journey is the launch of its new and improved mobile app. While just one part of a broader innovation strategy, the app gives users quick, reliable… Read More…

  • Leviton Canada Announces the Appointment of Matthew Dudka as Sales Director, Western Canada

    Leviton Canada Announces the Appointment of Matthew Dudka as Sales Director, Western Canada

    June 23, 2025 Leviton Canada is pleased to announce the appointment of Matthew Dudka to the position of Sales Director for Western Canada. With over 20 years of experience in sales and a strong educational foundation as an Electrical Engineering Technologist, Matthew brings a wealth of knowledge and a proven track record of success to… Read More…