Smart grids rising, but barriers are still present

Smart grid investments are rising around the world, but significant roadblocks still exist.

By Max Burkhalter
July 23, 2014

The global smart grid market is expanding as organizations work to improve reliability and efficiency within the energy grid. However, the industry is growing at a rapid pace despite some significant barriers. This is creating an environment in which companies need to work carefully to overcome roadblocks as they work to effectively implement smart grid technologies.

According to a recent Transparency Market Research study, the smart grid is rising as a way to modernize conventional grid architectures and improve the functionality of various components within a grid architecture.

Looking closely at emerging smart grid models
The news source explained that communications infrastructure is a central component of the emerging smart grid industry. At this point, smart grid projects are centered around capturing data created throughout the grid, turning that information into knowledge and dispersing that knowledge in every direction within the infrastructure. This results in a technological climate that can be incredibly difficult to deal with.

Utility providers and energy companies are currently facing immense pressure to comply with rigid regulatory guidelines while dealing with rising distribution and transmission losses. This is resulting in an environment in which technological innovation throughout the grid is necessary, but it may not be easy to install large-scale communications systems throughout the entirety of an energy grid, the report explained.

Roadblocks to smart grid development
While energy companies around the world are facing pressure to make smart grid investments, the technical challenges that come with building a system can be sever. The study identified interoperability issues throughout the grid and a lack of open standards for technology deployment as two key barriers to future smart grid plans.

Dealing with interoperability issues
Investing in solutions like serial to Ethernet terminal servers can alleviate some of the interoperability challenges facing energy companies making smart grid investments. The network represents a key integration roadblock because many of the utility-specific technologies that operate in transformer stations and similar locations are built to support serial network connections. Serial networks are common in these settings because the internal communications at these sites need the zero-latency communication and stability offered by serial connections.

The problem is that serial is not an applicable option for the communications network that will interconnect various parts of the grid. This creates an environment in which converting between Ethernet and serial signal formats plays a vital role in supporting smart grid projects.


Perle offers a range of cost effective serial-to-Ethernet converters to help meet NERC-CIP compliance for the protection of critical cyberassets in substations. The IOLAN SDS HV/LDC Terminal Server is designed to meet harsh environments associated with Power Substations with attributes such as support for substation AC and DC voltage ranges, extended operating temperatures and meeting emission, immunity and safety approvals associated with substation IT equipment.

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