Against this backdrop, the need for sophisticated telecommunications infrastructure is emerging as a key factor in navigating the way forward. A massive build-out of endpoint devices and related communications infrastructure is needed so that utilities can properly monitor and stay ahead of unforeseen events on increasingly complex distribution grids.

Distributed energy resources (DER), along with the battery energy storage systems needed to smooth out intermittency and maintain power quality, are reshaping the grid. These diverse resources contribute to grid resiliency, but can bring challenges if communications systems are not planned properly.

Planning for optimal communications systems can significantly reduce delays caused by incompatible systems and the unexpected costs that can accrue when retrofitting telecommunications infrastructure.

Data flow linking utilities with distributed energy vendors and systems is a critical factor that must be accounted for in telecom design. Vendors may need access to DER data that may be flowing, either bidirectionally or one way. This may be addressed by utilities by designating a controlled access point giving vendors a secure connection to upload this data via a restricted network section that does not expose the broader distribution network. This configuration supports data security with continued operational control while giving vendors access only to the data they need.

The level of digital intelligence embedded in the connections between utilities and DERs directly affects the complexity and functionality of the system. Serial connections represent a straightforward approach, offering simple point-to-point physical links that are inherently secure and less complex. Because these serial connections cannot be accessed remotely, cybersecurity risks may be reduced. However, the need for on-site access by technicians who may be required to travel many miles from centralized operational centers in order to make updates or modifications is a trade-off that must be considered.

Moreover, a serial connection system design lacks the flexibility and scalability of Internet Protocol (IP)-based connections, which enable remote access and more dynamic data flows. However, the trade-off for this greater flexibility may be increased cybersecurity risks that must be addressed via data protection through encryption protocols, such as IPSEC and MACSEC. System resilience may be further enhanced by security equipment, including firewalls and advanced vendor-provided solutions.

It's important to recognize that technology alone is not enough to maintain the data security utilities need. Comprehensive physical and digital security strategies will be needed for wall-to-wall protection of DER systems.

There are a number of viable options for utility communication media, and making the right choice will be one key to successful DER integration that optimizes cost, promotes reliability and enhances performance.

One of the first decisions is whether wireless or wired connections will be the right fit for a utility’s operational needs.

Wireless options — like public LTE, and noncellular mesh radio networks and satellite technologies — offer flexibility and often involve lower upfront costs. Geography plays a significant role in the effectiveness of wireless connections, and these solutions are particularly efficient in areas where physical cabling is impractical. However, regions with rough terrain or weak mesh or cellular coverage may pose performance problems. Careful planning to assess expected data speeds and volume is essential.

Wired connections through fiber-optics are another option that provides high throughput and greater network speeds, a feature that makes them ideal for data-intensive applications. Wireline telecommunications can be particularly attractive when there are two locations in close proximity that must exchange data. The trade-off for higher reliability, however, is likely to be higher capital costs and the need for extended planning time, particularly for deployments in remote locations where the cost and practicality of underground versus overhead installations must be evaluated.

Deciding who owns and operates the telecom network connecting utilities to DERs has significant implications for cost and control. Utilities that opt to utilize public telecom networks may find benefits in the ability to simplify processes and shift costs toward operations and maintenance. Public networks may be a practical solution for utilities seeking to reduce capital expenditures and maintain budget certainty of operations and maintenance costs, while reducing the complexities of managing a telecom system and hiring additional staff.

Private telecom networks offer a different value proposition. Though utilities will incur greater capital investment costs, they achieve greater control over performance, better data security and configurations customized to fit the utility's unique needs.

Utilities with private networks control the security postures they want to implement and gain the ability to define their own technical road maps. By controlling the trade-off between cost and reliability — while reducing outside influence — the gain in reliability and flexibility is proving to be attractive option for critical DER connections for many utilities.

Integrating DERs into the utility grid hinges on robust and secure communications systems. Without a safe telecommunication handoff between the DER and the utility, the energy cannot be consumed or utilized by those on the grid. By carefully devising a DER strategy that includes selecting the optimal communications medium, addressing security challenges and defining vendor access, utilities can create resilient networks that support operational and reliability goals.

*Typically these costs may be expected, though some exceptions are possible.