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NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY 1 © Nokia Siemens Networks Next generation ICT for Smart Grids SGEM –työpaja Smart Grid visions June 17, 2010, VTT Espoo [email protected] CTO Office Nokia Siemens Networks

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NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY1 © Nokia Siemens Networks

Next generation ICT for Smart GridsSGEM –työpaja – Smart Grid visionsJune 17, 2010, VTT [email protected] OfficeNokia Siemens Networks

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY2 © Nokia Siemens Networks

Story

Striking the right balance

Similarity in challenges

New growth opportunity

Connecting next billion

Building windmills & bridges

Preferably with SGEM

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY3 © Nokia Siemens Networks

Climate change & resource scarcity encourage prudence and open up new business opportunities

Common business environment outlook themes influence strategic direction

Digital lifestyle goes mainstream

Enabling customerexperience becomes operator core business

Data traffic explosion drives radical scalability and cost efficiency improvements

Internet of Things - Fixed, Nomadic, Mobile

Telecom, IT and Media ecosystems merge – rules of IT and Media will dominate

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY4 © Nokia Siemens Networks

Utilities and ICT infrastructures have highsimilarity in future challenges

Establishing sustainable role in the ecosystem

Keeping today‘s customers & adding value

Driving efficiency and environmental sustainability

Managing the traffic explosion

Reducing complexity & controlling cost

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY5 © Nokia Siemens Networks

From network efficiency tocustomer experience

Efficiency

Service

Network

Experience

ExtremeNetwork Efficiency

Customer

todaytomorrow

Consumers will decide who gets the "business" based on the user experience - They don't care how smart are the grids!

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY6 © Nokia Siemens Networks

Competitive positioning for energy – Logical growth area for NSN

Businessmanagement

Infra mgmt.OSS/BSSsolutions

Infrastructure

Inside products

Telco vendors

Cross-industrysoftware vendors

Evolution of Telco specific software vendors?

IT and IP vendors as part of solutions

IT vendors

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY7 © Nokia Siemens Networks

2010 2015

Charging Service mgmt Element mgmt Charging Service mgmt Element mgmt

Smart ICT Business potential

Metering & Homes Grids Generation

ME

UR

/aM

EU

R/a

Growing need and opportunities for telecom & networking infrastructure, software and services

Source: Nokia Siemens Networks & Pöyry study: ‘Smart ICT opportunities in Smart Grids’, June 2009

0

100

200

300

400

500

600

700

800

900

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

ME

UR

/aM

EU

R/a

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY8 © Nokia Siemens Networks

Connecting next billion… smart ‘things’

Smart Phones

Smart Devices

Smart Objects

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY9 © Nokia Siemens Networks

Common enablement can triggermassive service growth and capture values

Strong need for simplification of the complex value chain

Smart Objects Services Enablement

Verticals in some specific areas

Smart Objects Connectivity

Energy Logistics Home Security Payment Health Enterprise integration

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY10 © Nokia Siemens Networks

Many of needed assets exists

Data collection & pre-processing

Service creation & management

Business integration capabilities

Energy Logistics Home Security Payment

Connectivity

Smart object communication

Health

Remote object management

Smart objects services enablement

Smart objects connectivity

Enterprise integration

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY11 © Nokia Siemens Networks

Trusted communication with smart objectsreliable, secure and efficient

Connectivity

Smart object communication

• Cost optimized network connectivity

• Dedicated connectivity services for smart objects

Connectivity

• Reliable & secured sessions• Managing multiple, heterogeneous,

redundant connections

Smart object communication

WANconnectivitymodule(s)

Applicationpart

WANconnectivitymodule(s)PAN/LANmodule

PAN/LANconnectivity

module

Applicationpart

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY12 © Nokia Siemens Networks

Remote management of smart objects:Highly automated and flexible

Smart object communication

Connectivity

Configurationmanagement

Faultmanagement

Performancemanagement

Management application platform

Managed object framework

Remote object management

Remote object management• Provide automated and remote

management of smart objects• Leverage proven Telco

management assets across multiple industry sectors

• Support industry sector specific business integration

WANconnectivitymodule(s)

Applicationpart

WANconnectivitymodule(s)

PAN/LANmodule

PAN/LANconnectivity

module

Applicationpart

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY13 © Nokia Siemens Networks

Data collection and pre-processingDelivering smart and relevant data

Smart object communication

Connectivity

Data collection & pre-processing

Data collection

Data pre-processing

Data presentation framework

Data collection & pre-processing• Collection of application and

management data• Pre-processing of data in terms of

data abstraction, data mining and event generation

• Presentation of ‘smart’ data and industry sector specific business integration

WANconnectivitymodule(s)

Applicationpart

WANconnectivitymodule(s)

PAN/LANmodule

PAN/LANconnectivity

module

Applicationpart

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY14 © Nokia Siemens Networks

Utilization of existing Telco assets will speed up development, reduce cost of ownershipand maximize revenues

Consulting and systems integration

Wireless access

2G 3G LTE

Transport and fixed broadband

Microwave Optical Fixed access

Core networks

Voice core Subscriber data management

Management and charging

Network management systems

Service management

Charging solutions

Services Networkimplementation

Care Managed services

Telecom routing

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY15 © Nokia Siemens Networks

Networks of networks build on best practices

Mobile Broadband – with full mobility• Standards define the connectivity, transport and application layer structure• Allows all the things connected to establish a communication channel, which allows us

to use services with full mobility and roaming capabilities

• Decoupling sources and integrations from data and applications• Designed to be changed - for new applications and regulatory changes• In-built Mobility, Security, QoS, Scalability and high availability from day 1• Real time operations• Reduced risk in vendor & technology choices with open, mainstream ICT• Service enablement springboard for customer experience innovations

Internet of Energy have an opportunity to fully leverage best ICT Practices

Internet & IP Protocol - Connectivity amongst all the devices• Services only took off after there was agreement on the transport layer (TCP, UDP

etc.) and application layer (IMAP, SMTP, HTTP etc.) protocols

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY16 © Nokia Siemens Networks

The gap in smart access

16 © Nokia Siemens Networks

Billions

Millions

Thousands

SmartnessGap

Access

Core

Control

Subscribers

Distribution

Generation

Control

Prosumers

TransmissionHundreds

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY17 © Nokia Siemens Networks

Outage Mgmt,MDMS

Smart Grid Communication

Back-office& Corp Systems

Head-endSystems

UtilityDMZ

Home Area Network

Neighbourhood Area Network

Access Network

BackhaulNetwork

Mesh

Powerline Com

Public Wireless IP

Private Wireless IP

Service Provider

Private Fiber

Utility Corporate Network

Cable Provider / Cellular Provider

SmartMetering

EnergyConservation and

Demand Management

DistributionAutomation

Mobile WorkforceCommunication

Industrial Ethernet

IEC 61850Substation / Distribution

Automation

DistributedGeneration

LTE

LTE

Zigbee

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY18 © Nokia Siemens Networks

SGEM Communications requirements under study

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY19 © Nokia Siemens Networks

SGEM Communications requirements under study

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY20 © Nokia Siemens Networks

LTE fulfills requirements of a next generationMobile Broadband Network

AccessFlat Overall Architecture

• 2-node architecture• IP routable transport architecture

Improved Radio Principles• peak data rates [Mbps ] 173 DL , 58 UL • Scalable BW: 1.4, 3, 5, 10, 15, 20 MHz• Short latency: 10 – 20 ms

New Core Architecture• Simplified Protocol Stack• Simple, more efficient QoS• UMTS backward compatible security

Access Core Control

LTE BTS (eNodeB)

MMESAE-GW

IMS HLR/HSS

RF Modulation:• OFDMA in DL• SC-FDMA in UL

MME

S-GW and P-GW

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY21 © Nokia Siemens Networks

* LTE values according to Nokia and Nokia Siemens Network simulations for NGMN performance evaluation report V1.3 (macro cell,full buffer, 500m ISD, pedestrian speed)

** Server near RAN

LTE significantly improves performance in throughput and latency

Latency (Rountrip delay) **

0 20 40 60 80 100 120 140 160 180 200

LTE

HSPAevo(Rel 8)

HSPA Rel6

GSM/EDGE

ms

DSL (~20 - 50 ms, depending on operator)

Latency (Rountrip delay) **

0 20 40 60 80 100 120 140 160 180 200

LTE

HSPAevo(Rel 8)

HSPA Rel6

GSM/EDGE

ms

DSL (~20 - 50 ms, depending on operator)

Average cell throughput (macro cell, 2*20MHz or equivalent) *

0

10

20

30

40

50

60

70

HSPA R6 HSPAevo Rel8

LTE (2x2/1x2 MIMO)

LTE (4x4/1x4 MIMO)

Mbp

s/ce

ll

DownlinkUplink

4 carriers,each 2x5MHz

1 carrier,2x20MHz

1 carrier,2x20MHz

4 carriers,each 2x5MHz

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY22 © Nokia Siemens Networks

LTE rolling out

LTE/SAE launch

LTE/SAEVolume deployments

Operator servicemigration to LTE/SAE

LTE proof of concept / demos

• LTE lab and field tests

• Flexi Multiradio BTS (shipping)

• Preparation flat network architecture

• End-to-end LTE / SAE support

• IOTs• LTE/SAE launch

• LTE capable devices in volume deliveries

• LTE roll-out for coverage and capacity

2008

2009

2010

2011-

• Volume LTE roll-out with full coverage

• Gradual migration of cellular voice services to LTE

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY23 © Nokia Siemens Networks

Access Aggregation

LTE Network Elements - All protocols over IP

Inter-BTSconnectivity

X2-u/c

O&M

S1-u

S1-c(S1_MME)

BTS

BTS

S-GW

MME

• Ethernet will be the predominant equipment interface technology• Inter-BTS connectivity (X2) for handover comes along with Ethernet

Transport architecture

Transport network

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY24 © Nokia Siemens Networks

Confidentiality and Integrity of the network traffic (payload and control data) must be ensured

provided by• IPsec• TLS (SSL)

Authentication and authorization of genuine networks nodes has to complement confidentiality & integrity

Public Certificates / RSA keys allow unambiguous authentication in a high secure way and manageable way

Nokia Siemens Networks provides integrated security management: - Automated operator certificates deployment and life cycle management- IPSec & TLS for secured connectionsscaling from small to large networks

Technology shift to Ethernet & flat IP Backhaul and Plug’n’Play requires trusted network elements

Security need in Mobile Networks increases

Confidentiality and Integrity of the network traffic (payload and control data) must be ensured

provided by• IPsec• TLS (Transport Layer Security, successor of SSL)

Authentication and authorization of genuine networks nodes has to complement confidentiality & integrity

Public Certificates / RSA keys allow unambiguous authentication in a high secure way and manageable way

Nokia Siemens Networks provides integrated security management: - Automated operator certificates deployment and life cycle management- IPSec & TLS for secured connections- scaling from small to large networks

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY25 © Nokia Siemens Networks

IPSec

IPSec

X2

Security based on PKI, IPsec and TLS

Evolved Packet Core (EPC)Access / Transport

PKI is applied to• Authenticate network elements• Authorize network access• Protect integrity and confidentiality on transport path for all planes (c/u/m/s)

SAE GW

MME

User planeControl plane

OSS

Internet

FW

OperatorServices

HSSeNodeB PCRF

Services

Certificate Server (Identity Management)

Certificate

Certificate

Certificate

Certificate

SeGW

IntegratedSeGW

IntegratedSeGW

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY26 © Nokia Siemens Networks

FCC grants public-safety agencies waivers to build LTE networks

Overlay the Commercial LTE Network to 95% of the Population• 41,000 cell towers to achieve the capacity demanded by 290 million

subscribers • Public safety can use and harden these same towers to achieve excellent

coverage and signal reliability for a much smaller number of users• Public safety transceivers will be placed on up to 41 K commercial towers.

Providers will compete to provide this service• Public safety mobile devices will be hardened versions of commercial

handheld devices to reduce costs and increase functionality

For the most rural remaining 5% build a vehicular LTE network• Public safety will use and harden LMR or other towers where available,

and will supplement with new towers where needed• To reduce number of rural towers needed, mobile devices in rural areas

will have externally mounted antennas as is common today• In-door coverage improved through “relays” placed in emergency vehicles

5

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY27 © Nokia Siemens Networks

Component ==> Hardware Software/ Middleware

Operating System

Baseband Chipset RF Chipset RF Front End

Degree of commonality to commercial devices Medium Medium 100% 100% 100% Low

Effect of customization on cost Low Medium High High High Low

There is a great opportunity with LTE to leverage commercial economies of scale on those parts that add the most cost to devicesTherefore public safety devices will be close to the cost of unsubsidized commercial devices

Device Ecosystem

Cost of customizing the highest cost components will NOT be incurred because

they are 100% leveraged

13

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY28 © Nokia Siemens Networks

The LTE standard includes a flexible priority mechanism that can be configured to meet any public safety need.Technology

• LTE Allocation and Retention Priority (ARP) – Used to accept/modify/drop bearers (applications/users) in

case of resource limitations– At the beginning of a session, packets immediately receive the

designated of packets from existing consumer data sessions– Signaling priority

Reaching Agreement• FCC will work with public safety, commercial wireless carriers and

vendors to determine precise needs, and how systems should be configured to meet those needs

Priority Access and Roaming

14

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY29 © Nokia Siemens Networks

eEnergy advancing with 3 BU transfers andstrong scaled up project portfolio

Smart Grid Communication (SGC 4.1)

Telco Energy Metering (TEM 1.4)

Total Site Manager (TSM 2.3)

Resource Optimization Engine (ROE 4.2/5.5)

2010 1H11 NSN target areas

Sub

scrib

er D

ata

Man

agem

ent

Rea

l tim

e ch

argi

ng

Mob

ile B

road

band

Ser

vice

Man

agem

ent

BusinessRamp-Ups

Electro Mobility (EMO from 1.4 to 3.3) Artemis IoEfor eMobility

FI PPPSmart Energy Grids

ROE for MUSCO / GS

IE Industry Analysis (1.1.4 & 1.3.1) IE Industry Home Program

Tekes SGEM programEU FP7 programs

Demand Response (DRE 3.2)

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY30 © Nokia Siemens Networks

LetLet’’s s buildbuild bridges and windmillsbridges and windmills

5. DemonstratingSmart Grid 2.0in real life grids

Key Imperatives1. Enabling Active

Consumers

2. Improving System Reliability

3. Facilitating Active Resources

4. Enabling real time energy markets

Smart Grid Communication (4.1):• ICT Requirements collection for selected Smart Grid

Scenarios – focus on ADA• Smart Grid ICT architecture• Applying Mobile broadband (LTE) within eEnergy• Security/Privacy/Trust for Smart GrideMobility (3.3):• Tech. enablers: Smart Card authentication/infra,

embedded SW, local connectivityDemand Response (3.2):• Management of Micro Generation (VPPs)• Forecasting and modeling of controlable loads

(Aggregators)• Billing, chargingReal option to scale up with EU FP7:• EU FP7 Artemis IoE for Electro Mobility• EU FP7 FI PPP Smart Energy Grid (SEG)

• Phase1: Requirements, arch. & trial preparation• Phase2: Large scale pilots

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY31 © Nokia Siemens Networks

Conclusions

High similarity in challenges with ICT - Internet and Cellular evolution

Smart Grid applications will increasingly need 1) data communication and collection capabilities and 2) data analysis applications and solutions to utilize the data

Multi-dimensional connectivity challenge call for effective cross industry collaboration to meet scale, cost and fast-to-market targets

Networks of the future will combine high efficiency with individual experience - Consumer / prosumer will decide who gets the "business"

Leveraging proven solutions will shorten time-to-market, minimize technology risks, maximize revenues and reduce cost of ownership

Unique opportunity for VTT to put it’s wide knowledge base in action by creatively combining its multidisciplinary expertise with the know-how of NSN

NSN SGEM_Next generation ICT for Smart Grids_17062010.ppt / SeY32 © Nokia Siemens Networks

"When the wind of change blows, some people build walls,others build windmills."

Old Chinese proverb

"When the wind of change blows, some people build walls,others build windmills."

Old Chinese proverb