Electricity Asset Management Plan 2019-2029
19 Vector Limited://
CASE STUDY MANAGED INTEGRATION Technological disruption in the electricity sector is advancing every year. Customer-owned distributed energy resources (DERs) are changing the way energy is transferred across the network. In response to this, there is a pressing need to manage the impact of these changes to enable Vector to continue to provide a service that is affordable and fair to all customers. Traditionally, energy has always moved in one direction: from large power stations through to the transmission network, then to the distribution network, before terminating at an end-point in appliances and devices. When you add solar panels and battery storage into the mix, energy can also flow back the other way. It is important that Vector has visibility of the customer owned DERs on the network, and that we understand the impact they have on bi-directional power flows. Without this visibility, there is a risk DERs could lead to significant network investment, cause unplanned interruptions for customers as well as creating a safety risk for line mechanics due to the bi-directional power flows. The benefits of this visibility go far beyond network resilience and reliability. As well as enabling customer choice, managing dynamic power flows can reduce the load on physical assets during peak times. This enables Vector to defer capital investment. Vector has invested in a system known as the ‘Vector DERMS Platform’. The acronym DERMS stands for distributed energy resource management system . There will be increased use of non-traditional technologies and designs which will enable greater visibility, control, resiliency and access to the distribution network. The network of the future will no longer consist of proprietary components and legacy protocols and will become far more accessible, open and have a less definitive boundary. All of these factors increase the attack surface and significantly increase the risk of unauthorised access and disruptive cyber-attacks. We expect the transition to this new type of network to continue at pace. To adequately manage the increasing cyber risk from targeted attacks on critical infrastructure, Vector needs to continually assess the threat landscape to ensure the network is appropriately protected and CYBER SECURITY Increased customer demand and expectation in relation to the capabilities of the network coupled with the need to adequately address the macro trends impacting the Auckland region, require a different approach to network design.
Co-developed with software firm mPrest, the Vector DERMS Platform allows us to securely connect DERs and manage them in conjunction with our customers by ensuring alignment with network requirements while also providing direct benefits to customers. This system that we are co-developing will challenge the traditional mindset that has seen EDBs grow their networks to accommodate greater peaks. It helps Vector defer network reinforcements costs and reduces the risk of stranded assets at a time when industry disruption is almost certain by utilising DERs to their full extent. In the long term, this kind of system has the potential to actively facilitate customer choice. For example, if a customer has a full storage battery at their home or business and doesn’t need to use its energy, the Vector DERMS Platform could allow the person to share this excess energy with a neighbour, or even sell it back to the grid. Customers could also choose to let Vector integrate their DER into the network. This has the potential to enhance network resiliency and reliability – meeting the needs of the customer’s wider community – while also providing commercial benefits to the customer and Vector. It’s the same principle as room-sharing models, but, instead of booking accommodation in someone’s home, customers can put their home’s generated energy into an open marketplace. Vector could choose to run the network as a closed system, but we have chosen a bold strategic path of evolving a traditionally closed system to one that is open, intelligent and connected, in a way that provides satisfactory commercial aspects to customers and all others. invest in appropriate preventative and detective technologies, tools and resources. Maintaining trust and confidence in the network and ensuring security of supply is critical to our future. The investments we have made to date have improved our ability to detect and respond to cyber threats but are only the start of our journey. The controls we have in place today are likely to require upgrade, replacement or enhancement to remain relevant and effective. At times, we will need to be leading edge (such as our deployment of an Intrusion Detection System (IDS) specifically for our electricity control systems, which, as we understand, was the first in our sector in New Zealand) and at other times a more conservative approach may be required. The cyber threat can never be fully eliminated and therefore to manage any exposures will require a constant level of assessment and investment. The evolving cyber threat cannot be ignored and will remain a key strategic risk for Vector and our industry moving forward.
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