Optical networks help utilities modernize their operations with confidence
What’s important for utility communications networks in 2024?
Power utilities are working hard to keep pace with several growing trends in 2024. The electrification of everything movement is gaining momentum. Consumers are buying more electric cars. Distributed energy resources (DERs) need to be integrated into the grid. People and enterprises are enthusiastically embracing digital applications that rely on power-hungry data centers. The list goes on.
Recent research shows that trends like these are impacting grids worldwide. In its Electricity 2024 report, the International Energy Agency says global electricity demand is set to grow by 3.4 percent yearly through 2026, and that electricity consumption by data centers, AI and the cryptocurrency sector could double by 2029. The IEA also reports that electric cars accounted for around 18 percent of all cars sold in 2023, up from 14 percent in 2022 and only 2 percent in 2018.
The US Energy Information Administration projects that global demand could increase by one-third to three-quarters by 2050, and that renewables and nuclear could generate two-thirds of the world’s electricity by that point.
Utilities are taking it all in stride and finding ways to adapt. Many are starting to embrace digital transformation, automate their processes and shift to data- and software-driven operations. They’re also looking to build stronger cyber defenses.
As a cornerstone of grid communications, the optical network is a key enabler for these changes. To keep providing safe, reliable power that meets the needs of customers, utilities need optical solutions that can help them address four key challenges:
-
Ensure continuous connectivity for critical grid systems and assets.
-
Scale network capacity in step with new demands.
-
Maintain network health and resilience.
-
Secure critical data against any threat, including from quantum computing.
Ensuring continuous connectivity
The acceleration of trends such as electrification and digitalization means that customers are expecting more from the grid. With everything from assembly line robots to data centers and passenger vehicles now powered by electricity, the consequences of grid faults, disruptions and outages are greater than ever.
To meet these expectations, utilities need highly reliable and resilient optical transport networks that can ensure continuous connectivity for their mission- and business critical operational technology (OT), information technology (IT) and grid operations applications over any distance. These applications run the gamut from line differential protection, distribution automation and advanced metering infrastructure (AMI) to IEC 61850-enabled automation, facility surveillance and back-office billing and metering systems.
Utilities must choose robust and scalable optical solutions that can be deployed in redundant configurations to meet the transport demands of every application 24/7/365. With interruption-free connectivity, utilities will be able to use their asset data to make better decisions in real time.
Scaling without limits
As they digitalize their grids, utilities will deploy applications that require higher network performance. Utilities will need new optical technologies, network architectures and operational models that will enable them to ramp up capacity and speed in a sustainable and cost-effective way. But managing all these new elements will be challenging.
The right optical network solutions will make it easy to add, delete and allocate capacity with features such as OTN traffic grooming, layer 2 switching, edge-optimized platforms and software control. They will support capacity scaling of coherent optics and wavelength division multiplexing (WDM) spectrum, and provide optical network automation that streamlines operations.
With optical solutions that simplify the network and enable scaling without limits, utilities will be able to build smarter, more automated grids that deliver on today’s needs and unlock tomorrow’s possibilities.
Using AI to maintain network health and resilience
Like many enterprises, utilities are looking for ways to take advantage of artificial intelligence (AI) applications. Given their dependence on scalable and reliable optical networks, utilities could find big value in using AI to help maintain optical network health and resilience.
An effective AI-powered network automation solution would make it easier to monitor and analyze the network, trigger corrective actions, or simplify service creation and activation. A utility could drive better operational and business outcomes by using these capabilities to:
-
Maximize fiber optic link utilization
-
Proactively maintain the network
-
Detect and diagnose impending network failures
-
Monitor and isolate unauthorized fiber taps
-
Predict future network capacity needs
-
Manage network power consumption.
Making grid communications quantum-safe
Quantum computing is evolving fast and will soon unlock exciting industry possibilities. Unfortunately, criminals are waiting to use the power of quantum computers to attack the grid.
Mathematical theories have shown that some traditional encryption frameworks are vulnerable to attack by a sufficiently powerful quantum computer. We don’t know when this cryptographically relevant quantum computer (CRQC) will be a reality. We may not know until it is too late.
Criminals may already be harvesting massive volumes of grid data. When they gain access to a CRQC, they will be able to decrypt and analyze the data and attack the grid at will. Utilities need to start defending against these harvest now, decrypt later (HNDL) attacks.
The good news is that utilities can make grid communications quantum-safe today by deploying symmetric key distribution technologies and AES-256 encryption at different layers of the network. By implementing Quantum-Safe Networks now, utilities will be able to protect their data from HNDL threats today and full-blown quantum attacks in the future.
Find out more
Nokia optical networks can help you build a mission-critical grid communications architecture that brings higher level of intelligence, automation, performance and security to your operations.
Visit our power utilities web page to find out how our solutions can help you take on your most important challenges and get empowered for the new energy future.
