Power utilities across the world are increasingly adopting the internet of things (IoT) for more efficient and reliable operations and management of grids. US-based Silver Spring Networks is engaged in providing standards-based networking platforms, software and services to enable utilities and cities worldwide to leverage IoT and support multiple smart grid and smart city applications and services on a single, unified network. In an interview with tele.net, Raj Vaswani, co-founder and chief technology officer, Silver Spring Networks, explains how these solutions can help utilities in improving their performance and talks about the company’s journey so far. Excerpts...

What was the motivation for launching Silver Spring Networks and where does the company stand today?

The company was launched in 2002 in the US. During that time the industry and policymakers had started considering the environmental impact of fossil fuels and it was becoming difficult to build coal-based generation plants. In addition, grid reliability issues in the country were eroding about 1.5 per cent of the gross domestic product every year. Against this backdrop, there emerged a solution called smart grids that promised to solve problems such as integrating renewables into the grid and bringing in greater reliability.

The idea behind setting up Silver Spring Networks was that if smart grids are going to enable devices to talk to each other, there has to be a company that will build the networking and software platforms to facilitate the same. At the time, utilities were using small-scale application-specific proprietary solutions for some services such as automated metering and demand response. Instead of searching for a cost-benefit option for the entire set of applications, utilities would look for the least-cost solution for each of the applications. Our first motivation, thus, was to create an open standards-based IPv6 networking platform that could plug devices at the bottom and applications on the top.

It took about five to six years to prove the technology and start operations. Since then, the technology has been continuously evolving and we are now on our fifth generation of the technology while other players in this space are still in their first generation. In the past five years, the technology has been globally proven and we have been able to deploy 21.5 million devices across the world in regions such as the US, Australia, New Zealand, Asia, Europe and South America. Moreover, utilities are now beginning to see the benefits that our communications and IT solutions are able to deliver in terms of cost savings, as well as faster restoration of services and fewer power interruptions.

What were the challenges that the company faced in the initial stages of operations and how were these issues addressed?

While some may view utilities as slow decision-makers, I believe that they are appropriately cautious rather than risk-averse. Their mandate is to deliver reliable power, at the lowest possible rates over a long period. Therefore, they have set several standards according to which they accept any solution. They need to deploy solutions that will last for at least a decade. We were fortunate that there were a couple of large utilities in the US which shared a similar vision as ours. Florida Power & Light, which has about 5 million customers in southern Florida, and Pacific Gas & Electric with 5 million customers in northern California, tested the technology and chose to deploy it. Since then, there has been no looking back and many other progressive utilities have followed suit.

What are the company’s key offerings?

Our solution comprises physical connectivity, in the form of an IPv6 network connecting devices, control software that helps in network management, provisioning and security; as well as a data platform, the SilverLink Sensor Network that draws data from various devices and makes it available for several applications. We do not build devices such as meters and switches and, for the most part, do not even build applications. Our solution enables devices and applications to connect in the most reliable and cost-effective way. We also partner with meter vendors, and load disaggregation and other application providers. Today, we have more than 125 partners around the world.

Many utilities are now deploying networks on a scale that they have not had to before and, therefore, require help. So, we operate those networks for them in the initial period. Today, 80 per cent of our customers take operational services from us. Moreover, our offering focuses not on the lowest cost for an individual service but on the best cost-benefit for multiple services such as automated metering, reliability and demand response.

For instance, ComEd, a utility in the US serving about 4 million customers across Chicago and Illinois, has deployed our platform for its smart grid infrastructure. The utility has estimated that using our technology for applications such as automatic switching will save it 500,000 power interruptions a year. This translates into huge savings for the utility in terms of money. When the societal benefits are also added on, the overall benefits become really significant.

How can this technology be adapted in India?

The differences between the Indian market and the ones where we have already worked are not as large as one might intuitively think. The technology has been proven and standards have been built, but testing needs to be done to be able to make the necessary adjustments for any new country where the solution is being deployed for the first time.

Historically, utilities in India have operated in a very application-specific manner. Our experience in the country has shown that utilities are now moving towards the absorption of solutions that are being used across the world. The notion of having the maximal cost benefit is very clear to the utilities. The next step is to make it clear to those who regulate or moderate these utilities. In India, people are already talking about smart cities. The country has every opportunity to deploy this platform and reap the associated benefits. In addition, it has a large amount of IT talent. With our multi-application platform, one can develop devices that will meet India’s needs and can also be exported on a global stage. This will encourage the local IT workforce to innovate.

A key challenge specific to India is weak utility finances. How do you plan to address this issue?

The decision to deploy a solution is, fundamentally, a question of payback. It is increasingly being accepted that this technology is not a massive sink of money that starts delivering only five to six years later. In fact, the payback period is getting much shorter. If people accept that a given technology is proven and comes with demonstrated benefits, then there is an opportunity cost in not adopting it. If the initial cost of the technology is a deterrent, then instead of removing features from the technology to make it cheaper, the discussion should focus on improving the delivery model.

What is Silver Spring Networks’s plan for the Indian market?

Utilities in India are partially aware of what is happening globally. Our conversations with them have been very productive and positive and the message has resonated well. While utilities may be aware of the potential benefits, what is now required is to make the other stakeholders realise these benefits. Utilities know that they have a challenge on their hands. My message is that when they are presented with a solution, they should test the model that is globally proven instead of embarking on a project with untested technology.

What should Indian utilities be looking for when specifying and evaluating smart en-ergy network solutions?

Indian utilities can go by international experience and specify high requirements. At times, solution providers might compel them to withdraw some demands in order to keep the solution low cost. Utilities have to be cautious because each requirement translates into a concrete benefit and withdrawing any one might keep them from realising its associated gains.

What kind of communication network is required for delivering the platform?

It is globally proven that an radio frequency (RF)-mesh-based architecture is better as it has the best economics, reliability and coverage. So, a network with an RF foundation that also supports multiple transports is best. In our case, we combine mesh and mobile networks, and this then connects to the backhaul network. This is because the networks required for IoT and machine-to-machine (M2M) communication are different from those used for humans. In IoT and M2M, devices need to talk to each other very quickly. As a result, the actual end-to-end bandwidth needs are not very large. In such cases, a low latency peer-to-peer network is required. This can be achieved by combining multiple transport technologies instead of relying on just one.

What are the key future trends in technology?

• Technology is evolving along two paths. One, it continues to go towards higher data rates, higher processing power, higher memory, and more capabilities at the edge. Over the past five years, we have seen data rates on mesh networks increase threefold every two years. Therefore, we are able to connect more and more capable devices on more and more capable networks. Two, Moore’s law ensures that devices continue to become more powerful, while operating less capable devices, such as battery-operated ones, is becoming more efficient.
• Another clear trend is wireless technol-ogy dominating wireline technology.
• The third trend is the emergence of big data analytics and the ability to leverage the distributed sensor resources at the edge for analytics applications.