What is a common communication protocol?
Communication protocols provide a set of rules and guidelines to facilitate information exchange between two or more entities.
In the context of demand response, a common communication protocol (in this case OpenADR®) serves as the backbone for effective and efficient data transmission between various components of the system.
These protocols define the rules and standards for data exchange, ensuring compatibility and interoperability between different devices and systems such as the electricity distribution network and solar and wind generation, and EVs.
The tools to deliver a protocol are the set of agreed cooperating software applications that enable the submission, processing, and storage of information in an automated, electronic exchange.
A ‘common’ protocol means that the same tools are used across the industry.
What are the benefits of open communications and industry-wide standards?
Across Aotearoa New Zealand there are 29 electricity distribution businesses and one transmission business, who will all need to decide what technology they might use to enable demand flexibility.
Without a standardised approach, they could develop and implement different protocols, meaning we risk losing, or vastly under-utilising, demand flexibility and consequently hinder proper grid integration.
Standardisation simplifies the integration of different systems and components, reducing complexity and ensuring consistency in communication.
The true benefit of standardising means that any flexibility supplier entering the market can “plug and play” with any EDB without having to create bespoke solutions.
This ability to adopt and participate creates market competition, and ultimately results in lowering price to the consumer (via their electricity bill).
Other benefits include:
- Enhanced Interoperability which ensures that devices and systems from different manufacturers can communicate seamlessly.
- Real-time data exchange ensuring timely access to accurate information. This real-time data is vital for making informed decisions and responding quickly to dynamic energy demand, improving the overall effectiveness of demand response programs.
- Common communication protocols can improve scalability and flexibility by being able to accommodate both small-scale and large-scale deployments. This alleviates limitations of communication infrastructure, lowering the barriers to entry and enabling wider participation.
Early insights from participating in the trial of OpenADR suggest the best outcome is an open and standardised communication protocol for demand flexibility. Real-time testing and industry-developed guidance, such as will be delivered via this project, will help the electricity supply industry to prepare for, and support this.
Why was OpenADR® selected as protocol for trial?
OpenADR® was chosen because it is an open, highly secure model and global, smart grid IEC standard.
It standardises the message format used for demand response and the management of distributed energy resources, so that signals can be exchanged in a uniform and interoperable way among network providers, flexibility suppliers, home energy management systems and smart devices.
As part of the project, we are reviewing a range of protocols and seeking external advice on those that exist and the rationale for adoption internationally.
We understand that the country’s needs will evolve and so we are not limiting the solution to one protocol i.e., there may be a place for one or more as more DER enters the system and we transition to clean energy future.
Who else uses OpenADR®
Adoption of OpenADR® 2.0 is occurring across Europe and Asia, as well as throughout many parts of North America including California, Nevada, Texas, Florida, Arizona and Hawaii.
The OpenADR® Alliance was created by industry to help organisations around the world standardise demand response, demand flexibility and distributed energy resources communications, automate processes, simplify customer energy management, and eliminate stranded assets.
In New Zealand, Transpower and Cortexo are also members of the OpenADR Alliance.