Bringing critical power
distribution out of the dark
and into a safer, more reliable,
and sustainable future
by Markus Hirschbold

Executive summary
Today, proven technologies exist that can fully
digitize the electrical distribution infrastructureof significant and critical buildings andfacilities. These are helping improve safety forpeople and assets, increase power reliability
and business continuity, optimize operationaland energy efficiency, achieve sustainability
goals, and meet regulatory compliance.
Yet, most organizations are still not taking
advantage of these latest advances in power
distribution connectivity and intelligence,some of which may already be in place in theirfacilities. Without this crucial last step, facility
teams are working blind, unaware of many
hidden risks and opportunities.

Schneider Electric White Paper

Introduction

The pressures on organizations have never been greater. Businesses routinely face toughcompetition, while the boards of businesses and institutions expect improvements inefficiency – often with fewer resources – to help reduce costs and protect profits. At thecore of keeping operations running smoothly is a steady flow of electrical energy, the mostimportant input to critical operations.
This is why operations and maintenance teams for large and critical power facilities – suchas hospitals, data centers, and continuous industrial processes – have five primary goals
regarding their electrical infrastructure: electrical safety, power availability, sustainability,
operational efficiency, and cybersecurity. Each of these goals continues to present serious
challenges as well as great opportunities:● Risks to safety: Electrical system issues are recognized as the cause of 22%
of workplace fires,1 while an estimated 25% of electrical failures are attributed toloose or faulty connections, according to a major insurance carrier.2 This points
to a need for more vigilance in finding sources of overheating. And while today’s
breakers reliably protect from overloads and short circuit conditions, hospital
operating theatres are particularly sensitive to insulation faults, which can put lives
at risk. Finally, if a facility-wide or localized outage occurs, power must be restored
immediately to ensure occupants’ safety and re-establish operations.
● Risks to power availability: Studies have shown that power quality disturbances
cause 30 to 40% of business downtime and that 70% of those disturbancesoriginate within the premise.3 Any amount of power interruption can be devastating
to an organization’s operations. Given that the average outage in mission-criticalfacilities lasts 90 minutes,4 these incidents represent a massive cost to businesses
and institutions. Beyond lost productivity is the cost of replacing expensive
equipment such as a failed transformer. Lawrence Berkeley National Laboratory

Figure 1
Facility teams for large
and critical buildings needto maintain their electricalinfrastructures’ safety,
reliability, efficiency,
and compliance.

1 Electrical Contractor Magazine, “Fire in the Workplace,” 2004
2 NETA World magazine, “Top Five Switchgear Failure Causes and how to avoid them,” 2010
3 A. E. Emanuel and J. McNeill, “Electric Power Quality,” Annual Review of Energy and the Environment, vol. 22, pp. 263-304,
December, 1997
4 Emerson Network Power, “Understanding the Cost of Data Center Downtime,” 2011

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable future2

Schneider Electric White Paper

3

found that power interruptions cost the U.S. economy approximately $59 billion
in 2015, increasing more than 68% since an earlier 2004 study. Commercial andindustrial businesses account for more than 97% of these costs.5 Many facilities
also rely on backup power systems to support loads in case of a utility outage.
This, of course, requires regular testing and maintenance to ensure backup poweris available when needed. Preventing downtime requires ‘seeing into the future,’ orrather being able to identify when conditions on your power network are deviating
outside of safe parameters or when protection settings have deviated from their
original design.
● Risks to sustainability and energy efficiency: Beyond the costs of power-related
interruptions, there are also the economic and environmental costs of inefficiency.
The US Department of Energy estimates that “with the application of new andexisting technologies, buildings can be made up to 80 percent more efficient oreven become ‘net zero’ energy buildings with the incorporation of on-site renewablegeneration.”⁶ This presents a huge opportunity for organizations to reduce theirenergy consumption and carbon emissions, and in turn their operating costs. Also,
emissions regulations are now common in most countries, while many corporations
implement their own sustainability goals. In turn, this requires gaining visibility into
every aspect of energy, from billing, to consumption, to on-site energy production.
● Risks to operational efficiency: Another big part of operational costs is facility
teams’ time and money to maintain power and buildings systems, often with limited
staff. Maintenance represents 35% of a building’s lifetime costs (IFMA, 2009),7 so any
improvements to team efficiency and equipment lifespan can represent significant
bottom line savings. In fact, another Department of Energy study revealed that byimplementing a program of condition-based predictive maintenance, a building cansave up to 20% per year on maintenance and energy costs, while increasing the
projected lifetime of the building by several years.8 However, predictive maintenancerequires a new level of analytic capabilities that can help predict equipment needs
and enable collaboration with experts when needed.
● Risks to cybersecurity: With increased connectivity, use of IoT-enabled devices,and IT/OT convergence, it is critical that electrical systems are designed andupdated to minimize cybersecurity risks. This includes the proper assessment ofpotential threats and vulnerabilities, as well as the specification of appropriate levelsof security from the device to the system level. See white paper “Understanding
cybersecurity for IoT-enabled electrical distribution systems.”
This is a demanding set of challenges. What is even more concerning is that facility
management teams in most large buildings and plants are still unaware of these risks
and opportunities. The reason: a lack of visibility to enterprise-wide power and equipment
conditions. Though the consequences of a power outage are severe, and the costs ofenergy and maintenance are high, most new and legacy facilities still use only a rudimentarylevel of technology to help prevent power system failures and minimize operational costs.
When problems arise, the response is usually on a reactive rather than proactive basis.

5 Lawrence Berkeley National Laboratory, “The National Cost of Power Interruptions to Electricity Customers – A Revised
Update,” January 2017
6 Next10, ‘Untapped Potential of Commercial Buildings: Energy Use and Emissions’
7 Schneider Electric, “Predictive Maintenance Strategy for Building Operations: A Better Approach”
8 Operations & Maintenance Best Practices: A Guide to Achieving Operational Efficiency,” Federal Energy Management Program,
U.S. Department of Energy

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

Wastewater plant
averts disasterOne of the largest
wastewater treatment plants
in the world was expanding
its power management
system. When the final
metering devices wereconnected, the system
immediately detected aserious problem.
The tiebreaker between thetwo incoming transmission
lines was unexpectedly
closed at one of the
primary substations
feeding the plant. Worse,a fuse was blown on oneof the incomers, meaning
dual incomer redundancy
was lost. If there had
been a grid outage on
the remaining incomer,
an entire plant section
could have experienced
a disastrous failure.
Fortunately, this risk
was detected andcorrected, highlighting
the critical importanceof 24/7 electricalsystem monitoring.

4Intelligent power has arrived
Facility teams should be taking full advantage of the many applications and benefits that
digitalization now enables. Without a fully connected and intelligent power management
system, facility teams are ‘working blind,’ unaware of the many risks that may bethreatening business continuity and efficiency. And risks progressively increase as newloads are added that could affect power quality, especially non-linear loads often used to
improve energy efficiency such as LED lighting, VSDs, switching power supplies, etc.
Like advances in vehicle-based intelligence in the automotive industry, power distribution
systems now include a complete network of smart, connected devices. These deliver
timely, actionable information to facility teams through powerful software applications,either at the desktop, in the cloud, or on their mobile devices anywhere they are. The
newest tools make it simpler than ever to understand power and energy conditions andmanage complex power systems.
The steps to implementing such a solution can be extremely cost-effective, considering all
the dimensions of ROI that can be achieved in a very short payback period. Many of thepieces may already be in place in most facilities, such as smart meters and breakers.
Once connected, facility teams will immediately benefit from:1.

early warning of risks

2. faster recovery from problems
3. identification of energy efficiency and sustainability improvement measures
4. revealing of time and cost-saving opportunities
5. streamlined maintenance6. enhanced equipment performance and lifespanThis paper will show how a nominal investment in a digitalized electrical distribution
infrastructure can help large and critical facilities meet core operational, sustainability,
and regulatory goals more easily while gaining additional unexpected benefits.

Figure 2
Smart, connected devices
are the first step in acompletely digitized power
distribution system.

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

The digitalization of power
distribution

5

Digitalization is all around us. Consider the automotive industry. Cars today are someof the most digitalized machines in our lives, yet we all take for granted the incredible
advances that have taken place in recent years.
Every aspect of the operation is monitored, displayed, and, in some cases, controlled
automatically. These capabilities have vastly improved the safety, reliability, efficiency,
and compliance of every kind of vehicle while improving ease-of-use and driving
experience for owners. For example, vehicles routinely provide:● Oil pressure, temperature, battery voltage, fuel level, coolant level, etc. sensors:
make sure you are alerted in case of any malfunction before you get stranded on
the side of the road
● Anti-lock braking system (ABS): prevent uncontrolled skidding● Stability controls: prevent loss of traction (by sharing the same brake actuator andsensors with ABS)
● Automatic airbags: to protect driver and passengers in the event of a collision● Emission sensing and control: to meet regulatory standards
More advanced capabilities might include:● Tire pressure monitoring sensors: improve fuel economy and alerting the driver to apotential flat
● Backup cameras with proximity sensors: guide the driver into a parking spot
● Blind-spot monitoring: increase the safety of lane changes● Lane departure warning: help avoid collisions due to driver error, distractions,and drowsiness● Look-ahead radar: starts braking before a collision can occur

Communication
Automatic climate control
Navigation
Drowsiness sensors
Adaptive cruise control
Airbag sensors
Automatic brake actuator

Figure 3

Lane departure warning
Front camera
Night vision
Automatic speed control

Blind spot detection
Cross traffic alert
Rear camera
Rear laser radar
Collision sensor

Engine management
Emissions management
Continously variabletransmission

Advancements in
automobile technology
provide as standard
equipment a vast arrayof sensors and intelligencein every vehicle.

Traction control
Anti-lock braking
Active suspension management
Tire pressure monitors
Wheel speed sensor

Nighttime pedestrian warning
Active park assist
Front laser radar
Collision avoidance

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

University improvessafety and reliability
For a large university,
unpredicted power outages
carry a high cost, bothfinancially and potentiallyin lost lives at its medical
center. After sufferinga major transformer
failure, the university built
its own substation andinstalled a complete power
management system.
The intelligent power
quality meters andanalytic software
perform automated alarm
monitoring, breakerstatus monitoring andcontrol, and transformer
temperature monitoring.
The system helps schedulepreventative maintenance,correct transient anomalies,
and enables quick
response to emergencies
such as power outages andweather-related incidents.

6

Smarter power distribution
It is now unthinkable to deal with the extreme complexity found in cars without sophisticateddigitalization. Imagine being an auto mechanic and having to troubleshoot a modern car
without a diagnostic scanner.
The same is true for modern electrical distribution systems. Systems are larger andtypically evolve to accommodate more loads, which are increasingly power-sensitive (e.g.,
automation systems). Many types of loads, such as variable speed drives, can also be thesource of potential power quality (PQ) issues. Beyond energy-consuming loads, larger
sites will often include on-site generation and storage, either for power backup, ‘peakshaving’ to avoid demand penalties or to consume self-generated renewable energy
when it’s most economical.
As the complexity and sophistication of our electrical distribution infrastructure increases,
it becomes critical to have the appropriate digital sensors, advanced controls, andanalytic capabilities to detect, diagnose, and correct issues before they cause missioncritical systems to fail. Touching every corner of a facility’s electrical network, the latest‘edge control’ software and mobile apps connect to smart devices to keep facility teams
informed and reveal deep insights.
Like digitalized vehicles, digitalized power distribution optimizes safety for people andassets, while improving reliability and business continuity. It provides the data converted
by analytic software to actionable information to help facility teams maximize energy
efficiency and lifecycle efficiency. As an alternative to interval-based maintenance,
digitalization enables condition-based maintenance, enabling equipment servicing to be
performed at the right times to improve reliability and avoid unnecessary time and costs.
A digitalized power network also simplifies energy and emissions tracking and reportingfor regulatory compliance, supporting participation in carbon markets, or publicly
showcasing energy performance.
Finally, data from distributed devices can be automatically and continuously uploaded
to cloud-based platforms, enabling 24-hour support from expert services. This canbe especially valuable for facilities that do not have adequate in-house resources
or expertise.

Simple steps
to getting
connected

Unlike today’s vehicles, power distribution systems do not come ‘stock’ with complete
digitalization. However, the technology is available, proven, and operating successfully inthousands of facilities worldwide.
Currently, the required devices, communication networking, and software applications
need to be specified. It is expected that all of this will become a standard and ubiquitouspart of every power distribution installation in the future.
The good news is that most newer power distribution systems may already have theconnectivity available but may not have it implemented yet. Installed devices simply need
to be networked together. Even legacy systems have simple retrofit possibilities to add
the appropriate devices and sensors. These upgrades are highly cost-effective when
considering the long list of benefits to the facility and the organization.
Let’s look at the type of devices, communications, and architectures that make adigitalized power distribution system possible.
Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

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Smart, connected devices
The increasing connectivity of devices has enabled the digitalization of power distribution,
aided by the global trend in the Internet-of-Things (IoT). More and more devices andsensors are becoming digitalized, with new kinds being introduced all the time. Table 1
lists some common types.

Device / equipment

Data / control provided

Protection devices
Circuit breakers

Trip units with embedded power and energy metering, breakercondition monitoring, diagnostics, alarms, data logs

Protective relays

Trip units with diagnostics, network status, alarms, data logs

Meters, monitors, sensors
Energy meters

Table 1
Typical types of smart,connected devices within apower distribution system.

Basic single or multiphase energy consumption, data logs

Power quality monitors

Energy, power, demand, advanced power quality capture andanalysis, equipment status, alarms, data and event logs

Environmental sensors

Temperature, humidity, gas, and pollution (e.g., to help
avoid corrosion, reduced performance, etc.)

Arc-flash sensors and relays

Alarm on arcing condition

Vibration sensors
Voltage, current sensors

Vibration readings
Single measurements on each phase

Busbar temperature sensors

Temperature, alarm on exceeding threshold

Insulation Decomposition Detection

Detect overheating of insulated conductors
too small for temperature sensors

Embedded equipment sensors, controllers
UPSs, DC inverters, battery chargers
Gensets
Transformers
Automatic Transfer Switch

UPS status, battery levels, control functions
Genset status, voltage, current, power, fuel level,temperature, control functions
Temperature sensors, voltage, current
Switch status, control functions

Automation equipment
Programmable Logic Controller
Remote Terminal Unit

Data from connected devices, control functions
Analog and digital input measurements

Devices can be integrated into a communications network in several ways. Wireless can beused for ease of installation, especially for simpler measurement or sensing requirements.
Serial communications can make a good choice in some cases, especially as serial ports
are common on many types of devices. Ethernet is the best choice where a large amountof data and fast data transfer are requirements, such as for more advanced power quality
monitors and for communications hubs that aggregate data from many downstream devices.

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

8Standards and communications data models, such as the IEC 61850 standard, areemerging for more effective universal and non-proprietary communications.
Most smart devices offer a choice of communication protocols for system compatibility. At
the same time, some provide modular hardware designs that enable communication ports
to be installed in the field for devices not already connected. Some more advanced devices
also offer modular firmware architectures that allow functionality to be customized. This kindof flexibility allows devices to adapt to current and future needs.
IoT-enablement means smart devices can upload data directly to cloud-based data storage
and applications, making for simpler data sharing and collaboration across one or more
facility’s operations and maintenance teams. Many devices also offer direct browser-based
access to real-time and logged data using mobile devices.
An example of what an IoT-enabled electrical distribution architecture can look like is shownin Figure 4. This illustrates a simplified architecture for a hospital, highlighting devices at themedium-voltage, low-voltage, and final distribution levels.

Figure 4
A typical digitalized power
distribution monitoring
network showing smart
devices located at eachlevel of the electrical system.

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

Powerful supervisory applications
In a digitalized power distribution system, a software application acts as the central
collection point. All digital real-time and historical data is aggregated and made available
to all stakeholders that oversee the electrical infrastructure.
The combination of software and device network is often referred to as an energy andpower monitoring systems (EPMS). For large and mission-critical systems, supervisory
control and data acquisition (SCADA) systems designed for power distribution areavailable. These have built-in redundancy that supports fail-safe operation, reliable control
actions, and highest accuracy timing.
With central software, the benefits of digitalization come to fruition. Using connectivity to
all the devices and equipment mentioned previously, the software can supervise electrical
processes such as power transfers and network automation. This is commonly done withthe help of ‘single-line’ diagrams that display power and energy conditions throughout thefacility, as well as equipment status, see Figure 5.
Event data is captured and stored onboard each device with precise time-stamping,then automatically uploaded to the software. The software sends automatic email or SMS
notifications for alarms and events to designated recipients. It will also provide extensive
analytic capabilities to help diagnose and isolate sources of problems and reveal
opportunities to improve power, energy, and equipment performance. The next sections
describe how these tools simplify each process.

Figure 5
A typical ‘one-line’
diagram showing electricalconditions and equipment
status throughout a power
distribution system.

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable future9Schneider Electric White Paper

10

Power
management
made easy

With a fully digitalized power system, facility teams can take advantage of a vast number
of applications to help meet safety, reliability, sustainability, operational efficiency andcybersecurity goals. Desktop edge-control or cloud-based software and mobile apps
enable access to devices distributed across the entire electrical infrastructure. At thesame time, analytic tools make it simpler than ever to gain deep insights, enable decisions,
reduce response time, and make operations and maintenance workflows more efficient.9
Further, cloud-based advisor services, with experts helping perform analytic and advisory
functions, can take the burden off the on-site facility team by assisting with preventive or
predictive maintenance. See white paper “Do more with less: moving power and building
management to the cloud.”

Soap factorysolves production
stoppages

However, it is essential to make sure the data received by analytic applications is accurate
and reliable. Experience has shown that many systems are prone to wiring, configuration,and commissioning mistakes. It is vital to have an error-checking algorithm that detects
all errors to be eliminated. Without this crucial step, incorrect decisions can result fromunreliable data.

A soap making factory was
experiencing mysterious
production line stoppages
about once a month.
Each caused a four toeight-hour delay costing$20,000 (USD) per hour
and $120,000 (USD)every month.
A networked power
management system wasinstalled. Smart power
quality meters and analytic
software determined the
problem was power sags,
swells, and transientscoming from the utility grid.
The utility determined
the problem was comingfrom a heavy equipment
operator nearby that was
generating disturbances
back onto the grid. The
utility installed new linesthat isolated the plantfrom the problem,
which resolved the
downtime issue.

Optimizing safety
Preventing electrical fires. Up to now, electrical fire prevention has involved using infrared(IR) scanning. An IR camera is used to detect hot spots in bus bar junctions, transformer
connections, or breaker contacts. This procedure is quite expensive and, therefore, is only
performed at specific intervals, from twice a year to once every two years. The problem isthat electrical fires are often caused by incorrectly performed maintenance procedures;
therefore, the issue can be missed if the maintenance is done after the regular IR scanninghas been performed.10
Fortunately, digitalization brings a more sophisticated and continuous approach to thermalmonitoring. Wireless sensors installed in strategic locations detect abnormal temperaturerises due to high impedance connections on bus bars or conductors, transformers, or
breakers. Temperature data is wirelessly transmitted to the software or an asset monitoring
service bureau. This allows for near real-time alarming in case of a thermal problem before
it results in an electrical fire destroying equipment or injuring people. Thermal monitoringis effective at medium-voltage and low-voltage levels. Specifically, it also brings greatvalue in busway applications to detect improperly tightened junctions. See white paper“Beyond IR Thermography: How continuous thermal monitoring improves performanceand equipment protection.”
Preventing electrical shock. Operating rooms and intensive care units in hospitals rely on
isolated power to keep patients safe. Sensors in isolated power panels are connected to thepower management network so that electricians can be remotely alerted to an insulation
failure and, in turn, provide immediate assistance to surgical staff.
Recovering fast from outages. Responding effectively to an outage requires access to
the right information when and where it is needed. An intelligent relay or circuit breaker trip
unit delivers this information directly to mobile smart devices in a digitalized power network.
Mobile devices can also be used to perform remote breaker control to restore power safely
from a distance.

9 Do more with less: Moving power and building management to the cloud
10 Schneider Electric, “Beyond IT Thermography: How continuous thermal monitoring improves performance andequipment protection”

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

11

At a workstation, sophisticated software tools allow for advanced power forensics, speedingup the diagnosis of power incidents. Due to the high-accuracy time-stamping of events that
occur onboard smart devices – e.g., distributed meters, relays, data loggers, etc. – a visual
timeline can automatically create related events, waveforms, and trends, see Figure 6.
Custom filters can be used to show only what is most relevant.
Additionally, a patented diagnostic capability from Schneider Electric named DisturbanceDirection Detection makes it easier than ever before to determine where disturbances arecoming from. Power meters automatically analyze every captured waveform, indicating
the direction that a disturbance was traveling. With many meters connected to central
power management software, it is possible to see how a disturbance flowed throughthe electrical distribution system, revealing if it was coming into a facility from the grid ororiginating from inside the building. This capability saves a tremendous amount of time indiagnosing problems.

Figure 6
Advanced event analysis
shows related incidents on
a visual timeline, revealing
how an event cascades
through the system andenabling the facility team
to isolate the problem’s
source quickly.

Precise time synchronization, cross-system correlation, and Disturbance Direction
Detection all help to reconstruct event sequences before, during, and after an incident.
This helps operations personnel understand how incidents cascaded through the system,
quickly find the root cause of the event, and enable steps to be taken to restore power
quickly. Analytical results can be annotated and saved for later consideration.

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

Airport maximizes
use of infrastructure
A large international airport
digitized their electrical
distribution system with
automatic data collection
from key points throughout.
The goal was to improve
the overall reliability
and efficiency.
The system identified peakloading on all distribution
equipment, as well as
helping determine when
non-critical loads could
be shed, helping avoid
overloading that could
cause outages andequipment damage.
Trending capabilities
also helped maximize
equipment utilization
by identifying areasof excess capacity.

12

Improving reliability
Avoiding downtime. By staying connected 24/7 to every point in the electrical distribution
network, the real-time state and conditions of the network can be monitored for any
deviations from normal operating conditions. If this occurs, the right people can be notified
automatically, who will have detailed alarm data to determine the problem and respond
before an outage can occur. Chronic power system events can be analyzed using the root
cause analysis tools mentioned above to help in preventing future occurrences.
By constantly monitoring load trends through a facility, active load management can beused to prevent overloads and, in turn, business disruptions. This information can also be
used to uncover unused capacity and for capacity planning for new facility expansions,avoiding overbuilding, and minimizing CapEx.
Large and critical facilities have a hierarchy of protective devices, typically with moldedcase circuit breakers at the medium voltage level and compact circuit breakers at the final
distribution level. To properly isolate faults, a circuit breaker must trip upstream of a fault,
also referred to as breaker selectivity or co-ordination. During facility commissioning, aco-ordination specialist ensures that all breakers are configured such that a downstream
breaker always operates before an upstream breaker. This minimizes the impact of a fault
on the overall electrical system.
In recently commissioned facilities, breaker co-ordination is typically intact and configured
as designed. However, over the life of a facility electricians and operators tend to ‘tinker’
with breaker settings in response to nuisance trips or expansion of loads. This compromises
selectivity and can result in trips for a much larger part of the network than intended.
Thanks to digitalization and connectivity to edge-control software or cloud-based
analytics, it is now possible to dynamically and continuously analyze breaker co-ordination,
generating an alarm in case of any co-ordination violations. A ‘digital twin’ captures andstores the original co-ordination settings of each breaker, detecting any deviation that will
result in undesired consequences. This added level of intelligence can help maximize
breaker performance and reliability of the overall electrical system over the longer term.
Increasing asset reliability and lifespan. A recent trend in facilities has been replacing linear
electrical loads with non-linear loads such as LED lighting, variable speed drives, andswitching power supplies. This is typically done to conserve energy. However, non-linear
loads introduce harmonics that can affect sensitive electrical equipment. As a facility starts
to transition to these alternatives, they may not, at first, appear to be causing any problems.
But, as the number of non-linear devices increases, the level of harmonics can get to apoint where sensitive equipment is being affected.
This situation is typical of most power quality problems. Many facility managers may be heard
saying, “We have never had problems with harmonics or power quality. It is not something weare concerned about.” Then, one day, their mission-critical machine starts to fail.

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

Hospital reveals
source of dialysis
machine failures
A large hospital was
experiencing failuresof their blood dialysis
machines due to an
unknown source.
A power management
system was installed andused to analyzing systemwide power quality. It wasdetermined that the dialysis
machines were sensitive toincreased harmonics in theelectrical system, coincident
with the recent installation ofvariable frequency drives.
Appropriate harmonic
filtering was installed,which solved the problem.

13

All the relevant information needed to identify power quality issues will help manage theirimpact and keep them from disrupting business operations or damaging critical loads andequipment. Sensitive equipment must be protected from harmonics, voltage sags, swells,
flicker, transient voltages, or brief interruptions. A fully digitalized power distribution system
helps prevent these by providing early detection of conditions before they exceed levels
that harm equipment.
Another threat to reliability is high temperatures and humidity. These can prematurely age
the components in power distribution switchgear, especially when operating in extreme oroutdoor environments, and when pollutants are present such as salt. Compact, affordable
sensors are now available that measure both temperature and relative humidity.11 Sensors
are battery-operated and transmit data wirelessly to the analytic software for analysis. If
environmental conditions exceed defined thresholds and durations, maintenance teams canperform required maintenance to help avoid corrosion, equipment failure, and downtime.
Depending on available in-house skills, temperature, humidity, and power quality issues
can be analyzed and evaluated on-site by the local facility team. Alternatively, this can beoutsourced to a cloud-based advisory service.

Boosting efficiency
Managing energy consumption and costs. Since energy represents a significant line item
for any facility, especially energy-intensive ones like data centers, finding ways to reduceenergy spending can significantly impact the corporate bottom line. The first step to achievea massive payback is to use accurate ‘shadow metering’ and energy analytics to verify thata facility’s utility bill is accurate, both from a metering and bill calculation perspective.

Figure 7
Energy analysis tools allow
the import of contextual
data (e.g., weather) to
track energy performance,
conduct energy analysis,
and calculate important
KPIs. Analytics reveal
the difference between
modeled (pre-retrofit) andactual (post-retrofit) data,
helping weigh the resultsof energy conservation
measures against target.

11 Schneider Electric, “How To Control The Impact Of Severe Environments Surrounding Medium Voltage Switch-gear”

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

14

The next step is to encourage energy-efficient behavior and support cost accounting
by accurately allocating direct and indirect energy costs to departments or processes.
The software can also benchmark and compare energy usage across buildings, plants,
or process lines to uncover inefficiency and waste. The energy performance of a facility
or building can be analyzed against a modeled baseline that considers relevant energy
drivers, such as weather, production levels, etc., see Figure 7.
Then, drilling down to see how much energy is consumed by the various load types and/or areas in a facility will help to determine where to focus energy conservation initiatives.
Before and after analysis will help verify the energy savings from an energy retrofit orenergy savings program. Some of these initiatives might include eliminating power factor
penalties (e.g., by installing appropriate PF management equipment) and, as noted
previously, avoiding demand penalties using peak shaving or active load management.

Children’s hospital
uncovers energy
saving opportunities
With an intelligent powerand energy management
system in place, a hospital
was able to allocateenergy costs to different
sections, with alarms set forexcessive consumption.
The system analyzes
consumption patterns forindividual equipment. This
supports load-shedding
operations to avoid peakdemand penalties and load
management to reducebase energy costs. This
has also identified areas toimprove energy efficiency.

Managing multiple energy sources. A digitalized power distribution system helps
leverage on-site energy production and consumption to boost cost savings and uptime.
These energy sources might include solar, combined heat and power systems, or gas
or diesel-fueled backup generators. It could also have an energy storage system. Suchintegrated systems are typically referred to as microgrids. They can be operated inparallel with the main utility grid or can sometimes be operated in an off-grid islanded
mode in the case of a grid blackout.
Digitalization also enables access to value-added services on the ‘smart grid,’ helping
a facility team optimize when to consume, store, or sell energy back to the grid.
Advanced on-site or cloud-based microgrid control systems can provide predictive
source management with inputs such as weather, energy cost, and other parameters todrive energy source control decisions. Many solutions are modular in design, offering
scalability to manage smaller commercial microgrids up to large-scale, islandingcapable systems.
Optimizing maintenance. A digitalized electrical network gives a voice to criticalenergy assets. It enables equipment to provide the relevant condition-based information
to maintenance teams to identify when they require servicing. This is a more proactive
approach, in contrast to servicing only at regular intervals, saving time and money while
also catching risk conditions that might otherwise be missed.
An example of condition-based monitoring is breaker-aging analysis. This innovative newcapability provides some of the most advanced circuit breakers and power management
software. Breakers report on the condition of their contacts, as well as many otheroperational parameters, while other sensor inputs report on environmental conditions
that can affect breaker health, such as temperature, humidity, and corrosive gases. In
combination, a more accurate picture of the aging of a breaker can be determined to help
drive the appropriate maintenance protocol. This can help enhance the performance,
reliability, and lifespan of each breaker.
Outsourcing facility management functions. Today, many facilities struggle with the‘brain drain’ dilemma when experienced electrical engineers and electricians retire, and it
is difficult to find new young talent. It is becoming more and more common for facilities to
outsource some or all their facility management tasks.

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

Shoe factory
achieves LEED
certification
A large shoe factorysought to achieve LEED
certification using several
steps, including installinga system to monitor
and modify the factory’s
energy use.
Using distributed metering,
web dashboards, andreporting tools, the factory
reduced energy usage
by 18%, which helped
achieve LEED certification.
The system also allocatescosts to 11 different factory
sections to help measureand balance energy use.
Return on investment has
been $US 5k per monthin energy savings, witha payback period of
20 months.

15

Digitalization is a wonderful enabler for this since it enables 3rd party facility managementcompanies to offer competitive analytic and advisory services, including monitoring
multiple facilities from a central operations center. Many of the newest cloud-based
power and energy management solutions allow for data sharing with outsourced expert
services. These services facilitate condition-based maintenance, ensuring maintenanceis focused where needed, the right maintenance is performed at the right time, andoptimized maintenance spending.

Simplifying compliance
Committing to sustainability. Energy analytic platforms enable facility teams tobenchmark energy consumption concerning national or international energy efficiency
certifications bodies and to share energy reduction success with the public.
Systems will help track and report on carbon emissions for public disclosure andtransparency to boost green image, meet regulatory compliance, or participate in carbon
markets. Many applications also provide simple ways to showcase energy performance tostakeholders via public dashboard displays, encouraging energy awareness and energyefficient behaviors.
Testing backup systems. Organizations like hospitals must regularly test and report on
their backup power systems (generators, UPS, etc.). This process can be demanding;however, the newest power management systems can help simplify this process byautomatically generating compliance, test, and maintenance reports to save time andreduce human error.
Ensuring supplier power quality. It is critical to validate that power quality inside
the facility meets the required standards for the reliability of sensitive equipment.
This includes ensuring that a facility’s power provider is meeting contract obligations
regarding power quality. Power management systems provide a range of capabilities
to help simplify this.
Advanced power quality meters provide on-board PQ compliance monitoring andanalysis, while analytic software aggregates PQ compliance data from across the facility.
Combined reports can be generated that help facility teams track PQ trends and identify
the source of risks, including problems coming from outside the facility on the utility grid.
These reports can be used as evidence when bringing issues to the power provider.
Gaining cybersecurity peace of mind. Attacks on critical infrastructure, in general,
have been on the rise, with a recent survey conducted by McAfee revealing that in “oneyear’s time one in four have been the victims of cyber extortion or threatened cyberextortion; denial of service attacks had increased from 50% to 80% of respondents; andapproximately two-thirds have found malware designed to sabotage their systems.”12
Like the corporate IT network, digitalized power distribution systems are critical andvulnerable infrastructures that need protection. Any choice of digitalized solution should
adhere to cybersecurity best practices, such as IEC 62443. These should include
security training to developers, adhering to security regulations, conducting threat
modeling and architectural reviews, ensuring secure code practices, and executing
extensive security testing. For more information on mitigating cyberattack risks, see thewhite paper “Securing Power Monitoring and Control Systems.”

12 James Christopher Foreman, Dheeraj Gurugubelli, “Cyber Attack Surface Analysis of Advanced Metering Infrastructure,”
July 2016

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

Fast payback

16

The extensive (yet, not exhaustive) list of applications and benefits presented above
makes a good case for digitizing facility electrical distribution networks. Such aninvestment is highly cost-effective, representing tangible ROI. A single solution offers
a complete network of smart devices and multiple analytic desktops and mobile
applications. The optimal architecture can achieve many different functions with theright mix of meters, monitors, sensors, transducers, and software.
Once in place, the facility can monitor, alarm, and report tools that enable enhanced
safety and reliability, real energy and operational savings, optimized use of the power
infrastructure, and simpler workflows. As such, a digitalized power system will optimize
both CapEx and OpEx. Though digitalization increases installation costs by 10 to 20%,
it results in significantly lower operating costs over the long term.
The increase in CapEx is typically paid for in less than 2 years.
Advances in technology have enabled a nominal incremental investment in digitalization of
the electrical distribution infrastructure to reap a very large and fast return on investment.
Also, a powerful single solution with multiple capabilities can pave the way to the future,
allowing new challenges to be addressed, sometimes with unexpected additional
benefits. For example, consider how vehicle wheel speed sensors first designed for ABS
functionality also spawned traction control capabilities. But those same sensors canalso be used to track humidity cycles which can help avoid dust build-up that can cause
arcing, fires, and failures. Similarly, having temperature sensors on conductors
and connections can help prevent overheating, fire, and equipment failures.

Conclusion

The benefits of digitalization of the electrical distribution infrastructure in critical buildings
and facilities are almost limitless. The categories of benefits are analogous to theadvances in the automotive industry, bringing improved safety, reliability, and efficiency,
and simplification in areas such as regulatory compliance.
However, due to the aging infrastructures of facilities such as hospitals, airports,
wastewater treatment plants, etc., electrical distribution has not kept up with the latest
digitalization technology trends. As such, most facility teams are still working ‘in the dark’
by not leveraging available, proven IoT-enabled power management technology to its
fullest to achieve optimal performance. Digitalization brings insight into costs and risks
that are otherwise unmanageable or unforeseen.
Fully digitalized electrical distribution systems are becoming the standard with preinstalled transducers and sensors. Digitalization occurs in three layers, from connected
products to on-site supervisory applications, to cloud-based analytics and advisory
services that support facilities without the required skills and resources. It is essential
to have digitalization in mind when designing, building, or upgrading facilities. It is
more cost-effective to have electrical distribution equipment already digitalized fromthe factory; however, digitizing existing installations will result in huge benefits andsavings. See white paper “Power Digitalization: Understand and Achieve Active Energy
Management in Buildings.”

Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable futureSchneider Electric White Paper

17

The payback from digitalization retrofits, or the added cost of a digitalized infrastructure
for new construction, can occur in several ways. For example, in a critical facility like adata center or hospital, avoiding a significant power outage can deliver instantaneous
payback. In the case of energy-related costs savings (e.g., optimized energy bill, energy
usage reduction) or maintenance cost savings (e.g., predictive practices, extended
equipment life), payback is usually within two years. The benefits outweigh the costs
to avoid dust build-up that can cause arcing, fires, and failures. Similarly, having
temperature sensors on conductors and connections can help prevent overheating,fire, and equipment failures.

Resources

Customer Success Stories Web Page
Power Digitalization: Understand and Achieve Active Energy Managementin Buildings
Designing Electrical Systems for Future-proof, Energy-efficient Green Buildings
Beyond IR Thermography: How continuous thermal monitoring improves
performance and equipment protection
Do more with less: Moving power and building management to the cloud
Understanding cybersecurity for IoT-enabled electrical distribution systems

About the author
Markus Hirschbold (P.Eng., CEM, PMP)
Markus is responsible for offer creation of EcoStruxure Power, the IoT-connected solutions of Schneider
Electric, designed to improve every aspect of power distribution systems. He has held various key
positions in R&D, Services, Power Quality, Project Management, and Offer Marketing in over two decadesof tenure at Schneider Electric.

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Bringing critical power distribution out of the dark andinto a safer, more reliable, and sustainable future