The Case for Engineering Next-Generation IT-Enabled Electricity Services at Value

Abstract

In this chapter we put forward the premise that the operations and planning of future electric energy systems will become much more complex than in the past and that data-driven knowledge about system changes will become essential. To support this claim, we briefly review today’s industry practices. We start by posing the single operations and planning industry objective mathematically. We then formally derive for the first time ever how commonly made engineering assumptions lead to the simpler planning and operation tasks. The limitations of computer methods currently used in EHV/HV energy management system (EMS) centers and in the MV/LV distribution management system (DMS) centers and of the automation logic currently embedded in power plants are discussed in light of the assumptions made and the implications of using these assumptions on system performance. We use these findings to identify what needs to change and why, in order to enable efficient and reliable future electric energy systems. In particular, we discuss the challenge to the next-generation Information Technology (IT)-enabled operations and control tools in light of ever-evolving system complexity and the need for enabling choice at value.