You may not have heard about BKK AS. They are actually the second largest power grid owner in Norway with over 180,000 customers. Like many power and energy companies, some of their equipment has been around a long time. It works, but it’s getting old and it’s time to move on to something more cost effective. That’s where Cisco comes in.
I remember starting out my career in IT years ago, when IBM was selling the ‘System370 range’ as it was called. You’ll remember that in those days “nobody ever got fired for buying IBM”. As a young sales person, I found the whole IT thing fascinating. I remember that in those days the customer communications were more measured. We had typing pools, we had face-to-face meetings, and the whole selling process took time. The business customers were upgrading their systems, and the newer kit had a great business case. Maintenance on the old installation was more, over several years, than the cost of new equipment. If you were to do nothing, your competitors would steal a march on you and you’d lose customers as your costs would begin to erode your business.
Well the same is true these days. In the Utility business there is a lot of older (though still reliable, in some cases) equipment. However, some of the older time-division multiplexing (TDM) networks are reaching the end of their useful lives. So it was with BKK AS. Maintenance was becoming onerous. But it’s not just about IT costs anymore. It’s about the missed opportunity of not doing anything. New grid applications are requiring any-to-any communications flows and also pushing for IT and operations technology (OT) convergence.
BKK, therefore, decided to build one reliable IP/Multiprotocol Label Switching (MPLS) network to ultimately securely connect all systems and grid devices. Like many commercial business customers, BKK operates a separate IP network that supports its commercial broadband services. Having had a positive experience using Cisco® technology for the commercial IP network, BKK chose Cisco for the new utility network as well. That’s IT/OT Convergence! Rick Geiger talks about it in his series of blogs stating with: Energy Networking Convergence Part 1 – The Journey From Serial to IP.
The new network needed to support a variety of grid applications, including very critical protection systems for the high-voltage grid. In addition, BKK is using teleprotection systems (both distance protection as well as current differential protection), which require the communications network to support extremely low latency (< 10 ms), deterministic behavior as well as very high availability. So the network needed to be deterministic – a common need for process control networks.
“Cisco offered the hardware and software features, as well as the reliability, that we needed to put our packet-based utility network into production,” says Svein Kåre Grønås, managing director/CEO, BKK Fiber AS. “It’s also reassuring that Cisco understands where the utility industry is heading, and is committed to connected grid services.”
So what are the results? Well here’s something taken straight out of the newly published case study:
Moving to a next-generation, packet-based utility network will save BKK significant operational costs for the utility network due to the ability to use cost-effective, standardized IP networking gear and avoid maintaining two separate networks at substations.
“Building and operating a high–bandwidth, packet-based network has given us a lot more flexibility. In addition, we can leverage the same processes and skill sets that we use to operate our Cisco commercial broadband network,” says Grønås.
With the new IP-based utility network, BKK no longer needs to reserve bandwidth for TDM communications, and now has more bandwidth available because it can be dynamically allocated. As a result, BKK can now offer the same network resources at substations that are available at corporate office locations. Workers can securely access needed documentation and other network resources at substations and power plants, instead of printing documents beforehand or calling colleagues at the office to gather information as they did in the past.
“This represents a major improvement in workforce enablement, productivity, and maintenance efficiency,” says Grønås.
In addition, this sets up BKK for success for the future. The new IP backbone will alllow BKK to provide new IP-based services and new capabilities in managing the power grid, such as advanced metering infrastructure (AMI) and distribution automation. In the future, BKK can assign IP addresses to sensors and relays to develop smart grid technologies and provide greater visibility into its electrical
“The utility industry is changing fast as smart grids become reality and more devices become part of the Internet of Things,” says Grønås. “With our Cisco-based IP utility network, we’re ready to reap the benefits of this new paradigm.”
You can read the whole case study which outlines the Cisco products and services here: Norway Utility Modernizes Power Grid.
Whilst I’m now proud to work at Cisco, some things never change – the emphasis on solving business issues of enabling business opportunities are key – it’s not just about cost savings. With Cisco heading towards being the leading IT company in the world, I’m sure we’ll see even more of this kind of customer success in the future.