Modernizing Operational Technology (OT) Networks for the Grid of the Future

The evolving landscape of energy and utilities

The energy and utility industry is undergoing a significant transformation. This is being driven by a growing demand for electricity that's fueled by the rise of the increasing integration of renewable energy sources and AI-powered technologies, which is introducing more variability in power generation. This shift is placing new demands on operational technology (OT) networks, requiring utility companies to reevaluate their strategies and modernize their infrastructure to allow for greater visibility and control over their operations, necessitating the growth of communications and compute capabilities deep into the grid. 

Watch the full 35-minute video!

As utilities prepare to expand their telecommunications networks to meet these demands, they face the challenge of marrying new technologies with their existing infrastructure. The long-term nature of network deployments means that utilities need to start planning and implementing these projects now to enable the grid of the 2030s and beyond. Delaying these critical investments could result in an inability to support the grid's future requirements, leading to potential outages, higher costs and an inability to meet sustainability goals.

Building the business case for modernization 

When building the business case for modernizing operational technology networks, utilities must consider a range of factors, including affordability, reliability and safety. Executives and regulators will be seeking a balanced approach that optimizes capital and operational expenditures while ensuring the grid's resilience and the safety of both employees and customers. 

Utility companies must also explore new technologies that can optimize the performance, reliability and security of their OT networks, such as exploring the transition from multiprotocol label switching with traffic engineering (MPLS-TE) to Segment Routing in Wide-Area Networks (WAN). 

Another key consideration is the role of carriers and the need for reliable, long-term networks that can support the grid's specific requirements. Utilities must carefully evaluate the trade-offs between using public wireless networks and building their own private solutions, as the latter can provide greater control and customization to meet their unique needs. The decision to leverage public or private networks, or a combination of both, will depend on factors such as the density of devices, the need for operational visibility in remote areas and the ability to maintain control of critical infrastructure.

However, the challenge lies in balancing the adoption of these new technologies with the need to support legacy systems that may have been in place for decades. Utilities must establish a proactive life cycle management program that can adapt to the rapid pace of technological change. They must also prioritize risk management and resilience planning to mitigate the impacts of natural disasters, cyber-attacks and other disruptions. 

Engaging with business units and technology providers 

Engaging with business units and understanding their future requirements is also crucial. Utilities must work closely with their operational teams to identify and design their networks to support emerging use cases, such as energy orchestration and electric vehicle charging.

By collaborating with these business units, utilities can gain valuable insights into their operations' evolving needs. This includes understanding the anticipated growth in connected devices, the demand for real-time data and analytics, and the integration of new technologies like renewable energy sources and energy storage systems. 

Moreover, strong partnerships with technology providers, industry experts and even other utilities can help utilities leverage best practices, share knowledge and accelerate their modernization efforts. Collaborative initiatives can drive innovation, identify new use cases and ensure that investments align with the long-term needs of the grid. 

Armed with this knowledge, utilities can design their operational technology networks to support emerging use cases, ensuring that their infrastructure is future-ready and capable of adapting to the changing landscape. This collaborative approach not only strengthens the business case for modernization but also fosters a shared understanding and commitment to the grid's transformation.

Embrace the unexpected 

As utilities plan for the future, they must also be prepared to adapt to the unexpected. The industry is rapidly evolving, and new technologies, use cases and regulatory requirements can emerge quickly. Utilities need to adopt a flexible and proactive approach to network planning, regularly revisiting their strategies and being ready to adjust as the landscape changes. This may involve establishing a framework for assessing current capabilities, future needs and potential gaps. By analyzing a range of growth scenarios, from low to high, utilities can better understand the impact of their decisions and ensure their networks are capable of supporting a variety of future outcomes.

In the short term, utilities should be open to leveraging third-party WAN and FAN (Field Area Network) resources to address immediate challenges. While the long-term vision may include building private infrastructure, utilizing external resources can provide the flexibility needed to respond swiftly to emerging issues and opportunities. 

Conclusion

Ultimately, the transformation of OT networks is not just about upgrading infrastructure — it's about positioning utilities to thrive in the energy landscape of tomorrow. By embracing this challenge, utilities can become true enablers of the grid's evolution, delivering reliable, sustainable and cost-effective power to their communities for decades to come. 

Explore the latest industry insights and best practices from experts in the field to learn more about how your organization can navigate the evolving landscape of energy and utilities.