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

  • Industry Optimism and Growth: Looking Back on the Hong Kong International Outdoor and Tech Light Expo

    Industry Optimism and Growth: Looking Back on the Hong Kong International Outdoor and Tech Light Expo

    December 2, 2024 By Elle Bremmer Attracting more than 50,000 buyers from around the world, the 26th Hong Kong International Lighting Fair (Autumn Edition) and the 9th Hong Kong International Outdoor and Tech Light Expo was by all definitions, a success. The twin fair events, which were organized by the Hong Kong Trade Development Council… Read More…

  • What Is Corrosion and Why Does VpCI® Help?

    What Is Corrosion and Why Does VpCI® Help?

    December 2, 2024 Rust is a familiar sight for most of us. Rusty cars, rusty nails, rusty locks, and other forms of corrosion are part of everyday life, causing assets to lose their value and functionality. But while the problem is obvious, the cause and the solution are less apparent to most. However, understanding the… Read More…

  • IHSA: Workplace Mental Health Toolkits

    IHSA: Workplace Mental Health Toolkits

    December 1, 2024 IHSA is committed to supporting employers and workers with their occupational health and safety needs. That includes psychological health and safety—a growing and critically important area for workplaces to address. In the sections below, you will find tools, resources, education, and supports from IHSA and our health and safety system partners. They… Read More…

  • New Research on Smart Home Trends & Technology Adoption

    New Research on Smart Home Trends & Technology Adoption

    December 1, 2024 Entertainment systems are becoming a common entry point for smart home technology, with 61% of adopters using smart TVs, displays, or speakers. So says a new consumer research report from the Association for Smart Homes & Buildings (ASHB) that explores the perceptions, preferences, pain points, and challenges of residential renters and owners… Read More…


Changing Scene

  • Legrand Acquires Power Bus Way, a Leading Provider of Fully Customized Power Feeder Systems for Data Center, Industrial and Large-scale Commercial Applications

    Legrand Acquires Power Bus Way, a Leading Provider of Fully Customized Power Feeder Systems for Data Center, Industrial and Large-scale Commercial Applications

    December 3, 2024 Legrand® has announced it has acquired Power Bus Way, a Toronto-based premier provider of custom-designed cable bus solutions for data centers, industrial facilities and commercial projects. Due to increasing demand for more digital infrastructure, Legrand estimates the North American data center market will continue to grow. This accelerated growth is further bolstered by… Read More…

  • Procore Drives Connected Construction Innovation at Groundbreak 2024

    Procore Drives Connected Construction Innovation at Groundbreak 2024

    December 2, 2024 Procore Technologies wrapped up Groundbreak 2024 last month. Procore is unveiled Resource Management, the industry’s first all-in-one solution for comprehensive labor, equipment and materials tracking and planning, along with new AI-powered Scheduling and Safety tools that enhance efficiency and streamline safety management. “Construction is one of the most complex industries in the world,… Read More…

  • Applications Now Open for Next Round of Onatario Skills Development Fund

    Applications Now Open for Next Round of Onatario Skills Development Fund

    December 1, 2024 The Ontario government has launched the second round of its Skills Development Fund (SDF) Capital Stream, with over $74 million in available funding to build, expand and retrofit training facilities for workers in the trades, including construction, manufacturing, technology and health care. Since the province launched the Skills Development Fund in 2021, Ontario is… Read More…

  • New Alberta Industry Skills Grant

    New Alberta Industry Skills Grant

    December 1, 2024 Alberta’s government continues to find creative ways to help employers find the qualified workers they need, especially in industries experiencing labour shortages. The new Alberta Industry Skills Grant will fund industry-led training in high-demand sectors like aviation, aerospace, construction and tech. Alberta’s government is making $5 million available through a pilot program… Read More…