Considering a specific innovation objective, the project aims to evaluate and demonstrate how LTE technologies can enable Smart Grid applications, from monitoring to real time control. In particular, the project will produce a holistic view on the economic and technical tradeoffs for delivering Smart Gird services using public LTE infrastructure. Running under the “Smart Energy Systems Action” Line, the project brings together the following partners: Siemens, Ericsson and KTH.
In addition to private infrastructures, public networks and LTE will play an important part in the overall Smart Grid Communication Architecture. Depending on the type of application dedicated M2M services are needed. This activity will (a) identify for which concrete use cases public networks are required, (b) evaluate how the technical LTE capabilities have to be used to fulfill the QoS requirements, (c) validate the concepts in test setups, (d) verify the business cases for all stakeholders.
The key deliverables are:
- Use cases and Requirements
- Technical concept and Proof-of-concept
- Business Aspects
The project is divided into three major tasks:
1. Use Cases and Requirements:
In this task the main system requirements of the project will be addressed, which include both business and technical aspects. Partners will define selected use cases to deduce specific requirements that subsequently lead to the key performance indicators of the project. The use case domains Smart Market and Smart Grid will be considered.
2. Technical Concept and Proof of Concept
Focus of this task is to provide a Proof-of-Concept (PoC) validation of the applicability and the performance of LTE in the smart grid. Based on the selected use case(s) a concept for smart grid communication over LTE is designed following open standards and protocols.
3. Business Aspects
The business aspects task is subcategorized into the following:
- Analysis of cost-performance characteristics of using public LTE networks for Smart Grid;
- Analysis on scalability in terms of capacity when using public LTE networks for Smart Grid applications;
- Business comparison between using public LTE networks or alternative communication solutions in terms of drivers and obstacles;
- Identification of feasible business models, relationships between actors and pricing schemes for an LTE enabled Smart Grid.
The work is targeted towards virtually all Smart Grid market segments, e.g. advanced metering, demand response, distributed generation, energy automation and grid optimization, since the communication infrastructure is a key component in the Smart Grid architecture, regardless of application. We consider two types of markets and the related business values:
- The cost savings and improved efficiency enabled for utility companies,
- The sales of equipment to enable these savings/benefits.
The enablement of Smart Grid applications using a public LTE infrastructure would provide value to several actors. First, utility companies would not be required to build and operate a complex communication infrastructure. Furthermore, the competition between mobile operators could be leveraged to obtain competitive pricing schemes for the LTE services. Mobile operators would gain customers with a reduced churn rate. Finally, device manufacturers would benefit from decreasing LTE module prices as a result of an increased adoption of the technology.