The electric grid is feeling the strain from significant changes in both the supply of power and demand for power. The limitations of traditional substations, in particular, become more apparent as utilities grapple with increasing demands from large load centers, generator interconnects, rising electrification across sectors, and the growing utilization of distributed energy resources.
Aging infrastructure, manual processes and physical wiring schemes all contribute to slower deployments, higher costs and greater complexity in maintaining system reliability. These pressures have made modernizing protection and control systems not just a technological opportunity, but a strategic necessity.
Fortunately, technological advancements in digital substations present opportunities for utilities to rise to the occasion.
Benefits of Moving Beyond Copper
Digital substations built around the IEC 61850 communication standard offer a way forward. By replacing traditional copper wiring with fiber-optic communication on networks, these systems support high-speed data exchange, greater automation and streamlined system design. Although the standard was introduced about two decades ago, trends affecting the industry have renewed its relevance.
IEC 61850 was developed to standardize communication between devices within substations. It enables different systems to talk to each other in real time using a common language. Beyond simplifying device interoperability, the standard introduces features like Generic Object Oriented Substation Events (GOOSE) messaging and Sampled Values (SV), which allow protection signals and analog measurements to be transmitted over Ethernet networks. These capabilities help reduce copper cabling by up to 70% and make it possible for substations to shift from hardware-centric designs to software-driven architectures.
The benefits of this transition are compelling. Digital substations reduce the physical footprint required for protection and control systems, simplify wiring, and enable faster commissioning. They also support remote diagnostics, improve personnel safety by minimizing contact with live circuits, and offer utilities more scalability.
IEC 61850 enables active monitoring of the substation protection system, allowing for early detection of issues such as device misbehavior, communication loss or abnormal traffic — problems such as wiring faults or loose connections that might go unnoticed in traditional hardwired systems. IEC 61850 also reduces the potential for human error by allowing protection and control (PAC) logic to be digitally configured. This minimizes the variability and risks associated with manual wiring of cutoff switches and test switches, replacing them with digital logic functions. This results in a more reliable, consistent system that is easier to configure, use and maintain.
Importantly, these systems are more adaptable to future changes, such as integrating new protection schemes or responding to shifting cybersecurity requirements. The IEC 61850 standard facilitates centralization of PAC and enables virtualization to streamline interaction between systems.
Catching Up With the World
Despite these advantages, adoption in North America has lagged other regions. Utilities in Europe and Asia have been implementing IEC 61850 at scale for years. In the United States, early hesitancy has stemmed from several factors: lack of familiarity with the standard, unwarranted concerns over reliability, resistance from field technicians accustomed to traditional methods, and the inertia that comes of trusting existing systems that “just work.” Substation protection is critical to maintaining reliable power; changes that affect the grid’s operation are often viewed with caution.
However, this dynamic is shifting. As the quantity of new substations being built grows — especially for generator interconnections (which face long interconnect queues) and load growth (which typically feature aggressive timelines from large load centers) — many utilities are reassessing the long-term value of digital substations. Most generator interconnects and distribution substations are very similar in configuration. Many utilities use standardized designs, and IEC 61850 helps make them even more standardized. Leadership teams facing tight budgets and labor shortages are beginning to recognize the cost and scalability benefits of embracing IEC 61850. Executives are increasingly driving adoption decisions, sometimes catalyzed by leadership changes or strategic modernization goals.
In one striking development, a large investor-owned utility on the East Coast is moving toward digital substations. Faced with needing many more substations in the near term than it has historically constructed annually, the utility envisioned fully digital control enclosures that could be assembled and tested off-site before being delivered to project sites. These mass-produced, factory-built control houses illustrate how standardization and modular design can accelerate deployment timelines and reduce repetitive design work. Accordingly, pilots and implementations have begun popping up around the country; some are also giving consideration to complementary virtualization efforts.
Embracing and Engaging
While moving forward with digital substations, change management will be critical. Utilities need to prepare not just their infrastructure but also their workforce for this transition. Digital substations require new skill sets, from network engineering to software diagnostics. Developing internal capabilities and fostering familiarity with IEC 61850 tools will be essential to attaining the technology’s full value.
For utility leaders evaluating the path ahead, the message is clear: The technologies have demonstrated their effectiveness in the field all over the world. The tools are available, and the need is urgent. Digital substations have moved beyond the experimental stage. They can be a practical solution to a growing challenge, capable of supporting a more reliable, scalable and efficient grid. Organizations should be asking themselves how they can make the transition to IEC 61850 thoughtfully and effectively.
Rapid changes have become the rule in the energy sector. Our team has experience across all aspects of generation, transmission and distribution.
