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 infrastructure
of significant and critical buildings and
facilities. These are helping improve safety for
people and assets, increase power reliability
and business continuity, optimize operational
and 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 their
facilities. Without this crucial last step, facility
teams are working blind, unaware of many
hidden risks and opportunities.
 Schneider Electric White Paper 2

Introduction The pressures on organizations have never been greater. Businesses routinely face tough
competition, while the boards of businesses and institutions expect improvements in
efficiency – often with fewer resources – to help reduce costs and protect profits. At the
core of keeping operations running smoothly is a steady flow of electrical energy, the most
important input to critical operations.

This is why operations and maintenance teams for large and critical power facilities – such
as 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 to
loose 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 disturbances
originate within the premise.3 Any amount of power interruption can be devastating
to an organization’s operations. Given that the average outage in mission-critical
facilities 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 need
to maintain their electrical
infrastructures’ 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 and

into a safer, more reliable, and sustainable future
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 and
industrial 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 power
is available when needed. Preventing downtime requires ‘seeing into the future,’ or
rather 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 and
existing technologies, buildings can be made up to 80 percent more efficient or
even become ‘net zero’ energy buildings with the incorporation of on-site renewable
generation.”⁶ This presents a huge opportunity for organizations to reduce their
energy 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 by
implementing a program of condition-based predictive maintenance, a building can
save up to 20% per year on maintenance and energy costs, while increasing the
projected lifetime of the building by several years.8 However, predictive maintenance
requires 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 and
updated to minimize cybersecurity risks. This includes the proper assessment of
potential threats and vulnerabilities, as well as the specification of appropriate levels
of 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 of
energy and maintenance are high, most new and legacy facilities still use only a rudimentary
level 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 and

into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 4

Intelligent power has arrived

Wastewater plant Facility teams should be taking full advantage of the many applications and benefits that
averts disaster digitalization now enables. Without a fully connected and intelligent power management
One of the largest system, facility teams are ‘working blind,’ unaware of the many risks that may be
wastewater treatment plants threatening business continuity and efficiency. And risks progressively increase as new
in the world was expanding loads are added that could affect power quality, especially non-linear loads often used to
its power management improve energy efficiency such as LED lighting, VSDs, switching power supplies, etc.
system. When the final
metering devices were Like advances in vehicle-based intelligence in the automotive industry, power distribution
connected, the system systems now include a complete network of smart, connected devices. These deliver
immediately detected a timely, actionable information to facility teams through powerful software applications,
serious problem. 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 and
The tiebreaker between the
two incoming transmission
manage complex power systems.
lines was unexpectedly
The steps to implementing such a solution can be extremely cost-effective, considering all
closed at one of the
primary substations
the dimensions of ROI that can be achieved in a very short payback period. Many of the
feeding the plant. Worse, pieces may already be in place in most facilities, such as smart meters and breakers.
a fuse was blown on one
of the incomers, meaning
Once connected, facility teams will immediately benefit from:
dual incomer redundancy
1. early warning of risks
was lost. If there had
been a grid outage on 2. faster recovery from problems
the remaining incomer,
3. identification of energy efficiency and sustainability improvement measures
an entire plant section
could have experienced 4. revealing of time and cost-saving opportunities
a disastrous failure.
5. streamlined maintenance
Fortunately, this risk 6. enhanced equipment performance and lifespan
was detected and
corrected, highlighting
the critical importance
This paper will show how a nominal investment in a digitalized electrical distribution
of 24/7 electrical infrastructure can help large and critical facilities meet core operational, sustainability,
system monitoring. and regulatory goals more easily while gaining additional unexpected benefits.

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

Bringing critical power distribution out of the dark and

into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 5

The digitaliza- Digitalization is all around us. Consider the automotive industry. Cars today are some
of the most digitalized machines in our lives, yet we all take for granted the incredible
tion of power advances that have taken place in recent years.

distribution 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 and
sensors 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 a
potential 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 Lane departure warning Blind spot detection

Automatic climate control Front camera Cross traffic alert
Navigation Night vision Rear camera
Drowsiness sensors Automatic speed control Rear laser radar
Adaptive cruise control Collision sensor
Airbag sensors
Automatic brake actuator

Engine management
Emissions management
Continously variable
Figure 3 transmission

Advancements in
automobile technology
provide as standard
equipment a vast array
of sensors and intelligence
in 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 and

into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 6

Smarter power distribution

University improves It is now unthinkable to deal with the extreme complexity found in cars without sophisticated
safety and reliability digitalization. Imagine being an auto mechanic and having to troubleshoot a modern car
For a large university, without a diagnostic scanner.
unpredicted power outages
carry a high cost, both The same is true for modern electrical distribution systems. Systems are larger and
financially and potentially typically evolve to accommodate more loads, which are increasingly power-sensitive (e.g.,
in lost lives at its medical automation systems). Many types of loads, such as variable speed drives, can also be the
center. After suffering source of potential power quality (PQ) issues. Beyond energy-consuming loads, larger
a major transformer sites will often include on-site generation and storage, either for power backup, ‘peak
failure, the university built shaving’ to avoid demand penalties or to consume self-generated renewable energy
its own substation and when it’s most economical.
installed a complete power
management system. As the complexity and sophistication of our electrical distribution infrastructure increases,
it becomes critical to have the appropriate digital sensors, advanced controls, and
The intelligent power
analytic capabilities to detect, diagnose, and correct issues before they cause mission-
quality meters and
analytic software
critical systems to fail. Touching every corner of a facility’s electrical network, the latest
perform automated alarm ‘edge control’ software and mobile apps connect to smart devices to keep facility teams
monitoring, breaker informed and reveal deep insights.
status monitoring and
control, and transformer Like digitalized vehicles, digitalized power distribution optimizes safety for people and
temperature monitoring. assets, while improving reliability and business continuity. It provides the data converted
The system helps schedule by analytic software to actionable information to help facility teams maximize energy
preventative maintenance, efficiency and lifecycle efficiency. As an alternative to interval-based maintenance,
correct transient anomalies, digitalization enables condition-based maintenance, enabling equipment servicing to be
and enables quick performed at the right times to improve reliability and avoid unnecessary time and costs.
response to emergencies
such as power outages and A digitalized power network also simplifies energy and emissions tracking and reporting
weather-related incidents. for 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 can
be especially valuable for facilities that do not have adequate in-house resources
or expertise.

Simple steps Unlike today’s vehicles, power distribution systems do not come ‘stock’ with complete
digitalization. However, the technology is available, proven, and operating successfully in
to getting thousands of facilities worldwide.

connected 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 ubiquitous
part of every power distribution installation in the future.

The good news is that most newer power distribution systems may already have the
connectivity 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 a
digitalized power distribution system possible.

Bringing critical power distribution out of the dark and

into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 7

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 and
sensors are becoming digitalized, with new kinds being introduced all the time. Table 1
lists some common types.

Device / equipment Data / control provided

Protection devices

Trip units with embedded power and energy metering, breaker

Circuit breakers
condition monitoring, diagnostics, alarms, data logs

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

Meters, monitors, sensors

Energy meters Basic single or multiphase energy consumption, data logs

Energy, power, demand, advanced power quality capture and

Power quality monitors
analysis, equipment status, alarms, data and event logs

Temperature, humidity, gas, and pollution (e.g., to help

Environmental sensors
avoid corrosion, reduced performance, etc.)

Arc-flash sensors and relays Alarm on arcing condition

Table 1
Vibration sensors Vibration readings
Typical types of smart,
connected devices within a Voltage, current sensors Single measurements on each phase
power distribution system. Busbar temperature sensors Temperature, alarm on exceeding threshold

Detect overheating of insulated conductors

Insulation Decomposition Detection
too small for temperature sensors

Embedded equipment sensors, controllers

UPSs, DC inverters, battery chargers UPS status, battery levels, control functions

Genset status, voltage, current, power, fuel level,

Gensets
temperature, control functions

Transformers Temperature sensors, voltage, current

Automatic Transfer Switch Switch status, control functions

Automation equipment

Programmable Logic Controller Data from connected devices, control functions

Remote Terminal Unit Analog and digital input measurements

Devices can be integrated into a communications network in several ways. Wireless can be
used 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 amount
of 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 and

into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 8

Standards and communications data models, such as the IEC 61850 standard, are
emerging 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 kind
of 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 shown
in Figure 4. This illustrates a simplified architecture for a hospital, highlighting devices at the
medium-voltage, low-voltage, and final distribution levels.

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

Bringing critical power distribution out of the dark and

into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 9

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 and
power monitoring systems (EPMS). For large and mission-critical systems, supervisory
control and data acquisition (SCADA) systems designed for power distribution are
available. 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 with
the help of ‘single-line’ diagrams that display power and energy conditions throughout the
facility, 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 electrical
conditions and equipment
status throughout a power
distribution system.

Bringing critical power distribution out of the dark and

into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 10

Power 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 and
management cybersecurity goals. Desktop edge-control or cloud-based software and mobile apps
enable access to devices distributed across the entire electrical infrastructure. At the
made easy same 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 factory However, it is essential to make sure the data received by analytic applications is accurate
solves production and reliable. Experience has shown that many systems are prone to wiring, configuration,
stoppages 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 from
A soap making factory was unreliable data.
experiencing mysterious
production line stoppages Optimizing safety
about once a month.
Each caused a four to Preventing electrical fires. Up to now, electrical fire prevention has involved using infrared
eight-hour delay costing (IR) scanning. An IR camera is used to detect hot spots in bus bar junctions, transformer
$20,000 (USD) per hour connections, or breaker contacts. This procedure is quite expensive and, therefore, is only
and $120,000 (USD) performed at specific intervals, from twice a year to once every two years. The problem is
every month. that 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 scanning
A networked power has been performed.10
management system was
installed. Smart power Fortunately, digitalization brings a more sophisticated and continuous approach to thermal
quality meters and analytic monitoring. Wireless sensors installed in strategic locations detect abnormal temperature
software determined the
rises due to high impedance connections on bus bars or conductors, transformers, or
problem was power sags,
swells, and transients
breakers. Temperature data is wirelessly transmitted to the software or an asset monitoring
coming from the utility grid. 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 monitoring
The utility determined is effective at medium-voltage and low-voltage levels. Specifically, it also brings great
the problem was coming value in busway applications to detect improperly tightened junctions. See white paper
from a heavy equipment “Beyond IR Thermography: How continuous thermal monitoring improves performance
operator nearby that was and equipment protection.”
generating disturbances
back onto the grid. The Preventing electrical shock. Operating rooms and intensive care units in hospitals rely on
utility installed new lines isolated power to keep patients safe. Sensors in isolated power panels are connected to the
that isolated the plant power management network so that electricians can be remotely alerted to an insulation
from the problem, failure and, in turn, provide immediate assistance to surgical staff.
which resolved the
downtime issue. 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 and
equipment protection”

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into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 11

At a workstation, sophisticated software tools allow for advanced power forensics, speeding
up 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 Disturbance

Direction Detection makes it easier than ever before to determine where disturbances are
coming 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 through
the electrical distribution system, revealing if it was coming into a facility from the grid or
originating from inside the building. This capability saves a tremendous amount of time in
diagnosing problems.

Figure 6
Advanced event analysis
shows related incidents on
a visual timeline, revealing
how an event cascades
through the system and
enabling 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 and

into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 12

Improving reliability
Airport maximizes Avoiding downtime. By staying connected 24/7 to every point in the electrical distribution
use of infrastructure network, the real-time state and conditions of the network can be monitored for any
A large international airport deviations from normal operating conditions. If this occurs, the right people can be notified
digitized their electrical automatically, who will have detailed alarm data to determine the problem and respond
distribution system with before an outage can occur. Chronic power system events can be analyzed using the root
automatic data collection cause analysis tools mentioned above to help in preventing future occurrences.
from key points throughout.
The goal was to improve By constantly monitoring load trends through a facility, active load management can be
the overall reliability used to prevent overloads and, in turn, business disruptions. This information can also be
and efficiency. used to uncover unused capacity and for capacity planning for new facility expansions,
avoiding overbuilding, and minimizing CapEx.
The system identified peak
loading on all distribution Large and critical facilities have a hierarchy of protective devices, typically with molded
equipment, as well as case circuit breakers at the medium voltage level and compact circuit breakers at the final
helping determine when
distribution level. To properly isolate faults, a circuit breaker must trip upstream of a fault,
non-critical loads could
be shed, helping avoid
also referred to as breaker selectivity or co-ordination. During facility commissioning, a
overloading that could co-ordination specialist ensures that all breakers are configured such that a downstream
cause outages and breaker always operates before an upstream breaker. This minimizes the impact of a fault
equipment damage. on the overall electrical system.

Trending capabilities In recently commissioned facilities, breaker co-ordination is typically intact and configured
also helped maximize as designed. However, over the life of a facility electricians and operators tend to ‘tinker’
equipment utilization with breaker settings in response to nuisance trips or expansion of loads. This compromises
by identifying areas selectivity and can result in trips for a much larger part of the network than intended.
of excess capacity. 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 and
stores 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, and
switching 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 a
point 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 we
are concerned about.” Then, one day, their mission-critical machine starts to fail.

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into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 13

All the relevant information needed to identify power quality issues will help manage their
Hospital reveals impact and keep them from disrupting business operations or damaging critical loads and
source of dialysis equipment. Sensitive equipment must be protected from harmonics, voltage sags, swells,
machine failures 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
A large hospital was that harm equipment.
experiencing failures
of their blood dialysis Another threat to reliability is high temperatures and humidity. These can prematurely age
machines due to an the components in power distribution switchgear, especially when operating in extreme or
unknown source. outdoor environments, and when pollutants are present such as salt. Compact, affordable
sensors are now available that measure both temperature and relative humidity.11 Sensors
A power management
system was installed and
are battery-operated and transmit data wirelessly to the analytic software for analysis. If
used to analyzing system- environmental conditions exceed defined thresholds and durations, maintenance teams can
wide power quality. It was perform required maintenance to help avoid corrosion, equipment failure, and downtime.
determined that the dialysis
machines were sensitive to Depending on available in-house skills, temperature, humidity, and power quality issues
increased harmonics in the can be analyzed and evaluated on-site by the local facility team. Alternatively, this can be
electrical system, coincident outsourced to a cloud-based advisory service.
with the recent installation of
variable frequency drives. Boosting efficiency
Managing energy consumption and costs. Since energy represents a significant line item
Appropriate harmonic
for any facility, especially energy-intensive ones like data centers, finding ways to reduce
filtering was installed,
which solved the problem. energy spending can significantly impact the corporate bottom line. The first step to achieve
a massive payback is to use accurate ‘shadow metering’ and energy analytics to verify that
a 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) and
actual (post-retrofit) data,
helping weigh the results
of energy conservation
measures against target.

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

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 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 or
energy 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.

Managing multiple energy sources. A digitalized power distribution system helps

Children’s hospital leverage on-site energy production and consumption to boost cost savings and uptime.
uncovers energy These energy sources might include solar, combined heat and power systems, or gas
saving opportunities or diesel-fueled backup generators. It could also have an energy storage system. Such
integrated systems are typically referred to as microgrids. They can be operated in
With an intelligent power parallel with the main utility grid or can sometimes be operated in an off-grid islanded
and energy management mode in the case of a grid blackout.
system in place, a hospital
was able to allocate Digitalization also enables access to value-added services on the ‘smart grid,’ helping
energy costs to different a facility team optimize when to consume, store, or sell energy back to the grid.
sections, with alarms set for Advanced on-site or cloud-based microgrid control systems can provide predictive
excessive consumption.
source management with inputs such as weather, energy cost, and other parameters to
The system analyzes
drive energy source control decisions. Many solutions are modular in design, offering
consumption patterns for scalability to manage smaller commercial microgrids up to large-scale, islanding-
individual equipment. This capable systems.
supports load-shedding
operations to avoid peak Optimizing maintenance. A digitalized electrical network gives a voice to critical
demand penalties and load energy assets. It enables equipment to provide the relevant condition-based information
management to reduce to maintenance teams to identify when they require servicing. This is a more proactive
base energy costs. This approach, in contrast to servicing only at regular intervals, saving time and money while
has also identified areas to also catching risk conditions that might otherwise be missed.
improve energy efficiency.
An example of condition-based monitoring is breaker-aging analysis. This innovative new
capability provides some of the most advanced circuit breakers and power management
software. Breakers report on the condition of their contacts, as well as many other
operational 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 and

into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 15

Digitalization is a wonderful enabler for this since it enables 3rd party facility management
Shoe factory companies to offer competitive analytic and advisory services, including monitoring
achieves LEED multiple facilities from a central operations center. Many of the newest cloud-based
certification power and energy management solutions allow for data sharing with outsourced expert
services. These services facilitate condition-based maintenance, ensuring maintenance
A large shoe factory is focused where needed, the right maintenance is performed at the right time, and
sought to achieve LEED optimized maintenance spending.
certification using several
steps, including installing
a system to monitor
Simplifying compliance
and modify the factory’s Committing to sustainability. Energy analytic platforms enable facility teams to
energy use. benchmark energy consumption concerning national or international energy efficiency
certifications bodies and to share energy reduction success with the public.
Using distributed metering,
web dashboards, and Systems will help track and report on carbon emissions for public disclosure and
reporting tools, the factory transparency to boost green image, meet regulatory compliance, or participate in carbon
reduced energy usage markets. Many applications also provide simple ways to showcase energy performance to
by 18%, which helped stakeholders via public dashboard displays, encouraging energy awareness and energy-
achieve LEED certification.
efficient behaviors.
The system also allocates
costs to 11 different factory Testing backup systems. Organizations like hospitals must regularly test and report on
sections to help measure
their backup power systems (generators, UPS, etc.). This process can be demanding;
and balance energy use.
however, the newest power management systems can help simplify this process by
Return on investment has automatically generating compliance, test, and maintenance reports to save time and
been $US 5k per month reduce human error.
in energy savings, with
a payback period of Ensuring supplier power quality. It is critical to validate that power quality inside
20 months. 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 and

analysis, 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 “one
year’s time one in four have been the victims of cyber extortion or threatened cyber
extortion; denial of service attacks had increased from 50% to 80% of respondents; and
approximately two-thirds have found malware designed to sabotage their systems.”12

Like the corporate IT network, digitalized power distribution systems are critical and
vulnerable 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 the
white 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 and

into a safer, more reliable, and sustainable future
 Schneider Electric White Paper 16

Fast payback The extensive (yet, not exhaustive) list of applications and benefits presented above
makes a good case for digitizing facility electrical distribution networks. Such an
investment 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 the
right 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 can
also 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 the
advances 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 pre-
installed 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 from
the factory; however, digitizing existing installations will result in huge benefits and
savings. See white paper “Power Digitalization: Understand and Achieve Active Energy
Management in Buildings.”

Bringing critical power distribution out of the dark and

into 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 a
data 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 Management

in 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 decades
of tenure at Schneider Electric.

Schneider Electric
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Bringing critical power distribution out of the dark and

into a safer, more reliable, and sustainable future