One of the most effective ways to meet these challenges is through rapid adoption of IoT (Internet of Things) technologies operating on LTE Cellular. IoT can help streamline multiple device use cases into a single, cohesive network, enabling increased efficiency and reduced overhead. IoT’s dynamic capabilities will drive productivity and efficiency for utilities looking to modernize and meet the new standards of the sector, while opening the door to new business opportunities.
The LTE advantage
Utilities rely on connectivity and communication for a number of different devices in the smart grid. Some line monitoring devices require low latency and instant reaction speeds from their network. Others, like smart meters, can operate with significantly more latency, needing only to transmit data at a certain interval. To address the diversity of use cases, many utilities silo their devices into a number of smaller proprietary non-LTE networks, customized for specific use cases. This allows them to operate each at the speed and latency appropriate for each device, but this process creates a decentralized, challenging web of networks to operate and is still not as cost-friendly as a more efficient, multipurpose LTE network.
LTE enables operation on multiple bands, delivering broadband and narrowband connectivity depending on the different device requirements. With the introduction of LTE as a wireless technology for grid modernization, utilities are now able to deploy a single, multipurpose network for multiple use cases. Regardless of the specific needs of the network, LTE’s flexibility makes it an ideal solution for all use cases, regardless of latency, throughput and coverage requirements.
Single-network functionality
Single networks enable companies to scale far more quickly and operate efficiently. LTE networks are built to reuse and distribute resources across different use cases for the network. This results in an efficient use of resources that can simultaneously be applied to narrowband and broadband applications. Dimensioning of common assets for broadband and narrowband NB-IoT and CAT-M1 is highly dependent on traffic intensity and volumes planned for each of the technologies. LTE is flexible to allow simultaneous use of all three technologies on a single site, with careful planning.
Broadband vs. Narrowband coverage
One of the ways LTE delivers a flexible, functional solution for all sections of the business is through its flexibility for simultaneous implementations, e.g. support for CAT-4, CAT-1, NB-IoT and CAT-M1 devices. Broadband implementations (e.g. LTE support for CAT-4, CAT-1) within LTE offer high throughput and speed across wider LTE channels, usually for fixed wireless or mobile applications. Narrowband implementations like NB-IoT and CAT-M1 deliver a deeper coverage with higher latency and slower speeds. By balancing spectrum use based on device needs all within a single network, utilities can address both performance and coverage use cases at peak efficiency.
The business case for IoT
Many of the benefits outlined above deliver enhanced value for utilities that leverage the Internet of Things to modernize their operations. Ongoing needs for cost optimization and operational efficiency drive the need for wireless modernization to LTE, maximizing agility and meeting increasingly complex regulatory requirements. IoT-driven dynamic capabilities can keep existing productivity levels high while enabling organizations to explore new digital business opportunities.
Utilities can use IoT narrowband technologies and LTE BSS systems for IoT data provisioning, analysis, dissemination and convergence of data to create information flow across edge, platform and enterprise analytics assets and systems. Broadband technologies can be utilized for digital twins and across monitoring, modeling, decision support, control and automation use cases, using systems already established for IoT.
Across five crucial areas, IoT delivers surplus value for utilities:
- Enabling new business and operating models: IoT’s flexibility serves as a launchpad for exploring new technologies and systems with functional parity with existing assets and use cases.
- Optimizing asset management: Reuse of assets across IoT and Broadband allows for optimized asset management.
- Automating operations: IoT opens the door to artificial intelligence (AI) systems that operate automatically using data analysis across the IoT ecosystem, streamlining utility operations and delivering savings.
- Data-driven: IoT can provide access to insights across IT, energy technology (ET), consumer energy technology (CET) and operational technology (OT), aligning with IoT principles of sense, communicate, analyze and act.
- Creating new products and services by engaging consumer-owned energy assets and devices: Many utilities are leveraging distributed energy assets (e.g. consumer power sources for wind, solar, EV) to deliver diversified power sources and meet environmental and sustainability regulations. IoT infrastructure built on LTE can manage the inbound/outbound flow with the enhanced responsiveness and reliability in the power grid to ensure it is balanced and secure.
IoT is a critical investment for utilities with an interest in evolving and highly transformational benefits driven by wireless technology like LTE. Within the next two to five years, mainstream utilities are expected to adopt IoT into their core business models. However, the shifting landscape requires an accelerated timeline to truly capture the value it can bring. Business stakeholders need to address and act on time to product/market/capability, and the service delivery model maturity for IoT applications and use cases. Utility leaders need to find and maintain the right mix of operational technology ambition and investments in innovation through IoT use to address these challenges and support new operating models and service delivery in the face of regulatory, climate and other disruptive trends.
As utilities begin to evolve toward 5G integration in the next few years, LTE users will be able to seamlessly integrate the newer technology into their networks as Ericsson’s technology is built for transition to 5G without stranding any built out LTE assets. IoT technologies are designed to work on both LTE and 5G, and simultaneous migration enables simple shifts for IoT networks built on LTE. Utilities able to realize IoT benefits early will be well-positioned to become industry leaders. Those slower to adopt these changes, however, may find themselves playing catchup for years to come.
Connected Energy Utilities Report
Ericsson published a full report outlining the changing environment utilities face, and how cellular connectivity is helping companies undergo digital transformation to meet those shifting needs. The report includes several use cases with real-world examples from notable energy providers, and is available for complimentary download.
Want to learn more?
More information on IoT for utilities can be found on the Ericsson website. Here are a few more articles on the evolution of wireless for utilities.
Utilities need secure, fast, flexible and adaptable connectivity solutions
How 5G will bring increased capabilities to the grid
Intelligent energy distribution with 5G
How wireless will evolve for utilities over the next five years
Ericsson’s Smart Grid report
