Why Substation Modernization is So Challenging
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It’s no secret that the U.S. power infrastructure is advancing toward a paradigm shift in how it must operate, and substation modernization is a critical success factor in this regard.
The influx of electric vehicles (EVs) and EV charger technology, clean energy, distributed energy resources (DERs), and energy storage technologies have stretched the country’s old-school substations to the max because they are not optimized for controlling and monitoring bilateral energy flows. Unfortunately, despite the necessity of upgrading to smart substations, doing so is extremely challenging.
Challenges of Substation Modernization
There are about 75,000 substations in the U.S. that have not been updated to accommodate the transition to a smarter grid. While it’s true that smart meters are starting to proliferate, achieving more advanced levels of “smart” will require several phases of substation modernization.
Transmission and distribution utilities (TDUs) are best positioned to lead the charge here because they are connected to both customers as well as the broader universe of industry partners and stakeholders. Simply put, TDU substations play a critical role in enabling bilateral energy flows.
However, the cost and resources needed to pull off a broad modernization strategy can be daunting. This is mainly because TDU data management tools and technologies are often antiquated. The result is that the data is largely present, but not integrated at the substation level.
This data challenge is complicated by the advent of artificial intelligence (AI), as this new realm of technology is still evolving and therefore identifying if and how it should be embedded into utility systems can be akin to guess work.
Another challenge relates to talent. Simply put, utility workforces tend to skew older and lack the expertise to implement new technologies or even engage in different ways of thinking. Talent will need to be brought onboard to execute a holistic modernization strategy.
In the final analysis, there is an urgent need for substation modernization across the industry, especially for TDUs, but there are significant challenges that ensure it’ll be a long, drawn-out process.
