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Practical Adoption of Cloud Computing in Power Systems – Drivers, Challenges, Guidance, and Real-World Use Cases IEEE Task Force on Cloud Computing for Power Grid

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Practical Adoption of Cloud Computing in Power Systems – Drivers, Challenges, Guidance, and Real-World Use Cases IEEE Task Force on Cloud Computing for Power Grid This is a preprint version with comprehensive discussion on use cases. A reduced version has been submitted to IEEE Transactions on Smart Grid 1 Practical Adoption of Cloud Computing in Power Systems – Drivers, Challenges, Guidance, and Real-world Use Cases IEEE Task Force on Cloud Computing for Power Grid Song Zhang (TF Chair), Senior Member, IEEE, Amritanshu Pandey (TF Vice-Chair), Member, IEEE, Xiaochuan Luo (TF Vice-Chair), Senior Member, IEEE, Maggy Powell, Member, IEEE, Ranjan Banerji, Member, IEEE, Lei Fan, Senior Member, IEEE, Abhineet Parchure, Member, IEEE, Edgardo Luzcando, Member, IEEE computing services that provides essential virtualized Abstract—Motivated by FERC’s recent direction and ever- resources such as computing, storage and networking over growing interest in cloud adoption by power utilities, a Task Force the Internet was established to assist power system practitioners with secure, Platform-as-a-Service – a category of cloud computing reliable and cost-effective adoption of cloud technology to meet services that allows customers to provision, instantiate, run, various business needs. This paper summarizes the business drivers, challenges, guidance, and best practices for cloud and use a modular bundle comprising of a computing adoption in power systems from the Task Force’s perspective, platform and one or more applications without the need for after extensive review and deliberation by its members that users to perform essential management (e.g., patching) include grid operators, utility companies, software vendors and Software-as-a-Service – a category of cloud computing cloud providers. The paper begins by enumerating various services where a vendor hosts applications and deliver them business drivers for cloud adoption in the power industry. It to end users over the Internet on a subscription basis follows with the discussion of challenges and risks of migrating power grid utility workloads to cloud. Next for each corresponding Function-as-a-Service – a category of cloud computing challenge or risk, the paper provides appropriate guidance. services that allow users to develop, deploy and run single- Importantly, the guidance is directed toward power industry purpose applications by modules without having to manage professionals who are considering cloud solutions and are yet servers hesitant about the practical execution. Finally, to tie all the sections Container-as-a-Service – a category of cloud computing together, the paper documents various real-world use cases of services that allows software developers and IT departments cloud technology in the power system domain, which both the power industry practitioners and software vendors can look to upload, organize, run, scale, and manage containers by forward to design and select their own future cloud solutions. We using container-based virtualization hope that the information in this paper will serve as useful Cloud Service Provider – a company that offers guidance for the development of NERC guidelines and standards components of cloud computing such as the aforementioned relevant to cloud adoption in the industry. services (e.g., cloud-based services and infrastructure) Elastic Computing – a cloud computing characteristic Index Terms—Cloud computing, cloud adoption, public cloud, that denotes secure and resizable compute capacity to meet cyber security control, compliance, service reliability, fault- tolerant architecture, resilient infrastructure, operations and changing demands without fixed preplanning for capacity planning. and engineering for peak usage Serverless Computing – a cloud computing execution KEY TERMINOLOGIES model in which the cloud provider provides an execution IT/OT – Information Technology and Operational environment that does not require users to manage servers Technology Vertical Scaling (Scaling Up) – scaling by adding more Infrastructure-as-a-Service – a category of cloud resources to a single node such as additional CPU, RAM, and DISK to cope with an increasing workload S. Zhang and X. Luo are with ISO New England, Holyoke, MA 01040 USA (e-mail: [email protected], [email protected]). A. Pandey was with Pearl Street Technologies, Pittsburgh, PA, USA. He is now with the Department of ECE, Carnegie Mellon University, Pittsburgh, PA 80523 USA (e-mail: [email protected]). M. Powell, R. Banerji, and A. Parchure are with Amazon Web Services, Herndon, VA 20170, USA (e-mail: [email protected], [email protected], [email protected]) L. Fan is with University of Houston, Houston, TX 77004, USA (e-mail: [email protected]) E. Luzcando was with Midcontinent ISO from 2003 to 2012 and New York ISO from 2012 to 2018. He is now with Performance Improvement Partners, Shelton, CT 06484, USA (e-mail: [email protected]) This is a preprint version with comprehensive discussion on use cases. A reduced version has been submitted to IEEE Transactions on Smart Grid 2 Horizontal Scaling (Scaling Out) – scaling and increasing these grid applications because it offers fault-tolerant system resources by adding more nodes (e.g., virtual machines) to design capabilities and benefits without an equal (linear) an existing pool of nodes rather than simply adding increase in cost. Learning from numerous successful resources to a single node applications in the industries mentioned above where no fewer Regions and Availability Zones – Regions are geographic rigid requirements on cyber security and compliance are locations in which cloud service providers' data centers are imposed, the Task Force concludes that cloud technology can geographically located. Availability Zones are isolated benefit the entire power industry. locations within data center Regions from which cloud Despite the firm resistance to cloud adoption by the power services originate and operate; industry due to often misunderstood fundamentals, some Shared Responsibility Model – a cloud security innovative organizations have begun to use the cloud for non- framework that dictates the security obligations of a cloud critical, low-impact workloads such as planning studies and computing provider and its users to ensure accountability load forecasting. Given this background, the Task Force Spot instance – a node (e.g., virtual machine) that uses a initiated this work to systematically organize the most recent spot market pricing model for a CSP’s unused capacity. cloud applications in the electric energy sector and provide Spot instances come at a steep discount but can be shut down expert guidance for cloud adoption to power system users and when the CSP no longer has unused capacity. software vendors by combining: i) best practices endorsed by On-Demand Instance– a node (e.g., virtual machine) that the Cloud Service Providers (CSP) and ii) experiences learned you pay for by the hour or second with no long-term from the pioneering use cases of cloud technology in power commitments. industry. The goal of this work is to address the common Reserved Instance– a node (e.g., virtual machine) that concerns over the cloud adoption, provide guidance for reliable you pay a discounted rate for by reserving compute capacity and secure use of cloud resources for power entities and and committing to long term usage (for example 1 to 3 elaborate how cloud technology can help in a variety of power years). system businesses. Additionally, this document also aims to untangle common misconceptions related to cloud technology in the power industry and help software vendors design I. INTRODUCTION products that are better suited to the cloud. loud computing is a mature technology that has become The authors of the paper recommend that the readers C ubiquitous in modern business environment. Concurrently, consider the following before reading the document. The paper it is globally seen as critical infrastructure [1] like other vital is divided into four independent broad sections. Section II resources such as power, gas, and fresh water supply [2]. While describes the key business drivers for cloud adoption in the field adoption of cloud technology in the power industry faces of power systems. If the reader's interest lies solely on drivers resistance on several fronts, e.g., cyber security, compliance, for cloud adoption, they should read Section II. Section III of cost, consistency, latency, software pricing and licensing, there the paper documents the known challenges from the power grid is growing interest for cloud adoption amongst many grid utilities and software vendors perspective when adopting or entities driven by their business needs. In part this is driven by developing cloud technology. Section IV is closely tied to rapid grid modernization and decarbonization, which requires Section III and provides guidance to the reader for every ever-growing demand for data analytics and resources such as challenge documented in Section III. In case the reader is computing, network, and storage. Traditional on-premises interested in reviewing a specific challenge, he or she can jump facilities are facing constraints and the utilities most affected directly to the relevant sub-section in Section III and follow that are eagerly searching for scalable and cost-effective solutions with corresponding guidance for that challenge in Section IV. to meet their fast-rising needs. Cloud technology is an obvious Finally, Section V brings together real-world use cases of cloud choice. Independently, power system practitioners are technology in power grids. It combines discussion from prior continuously
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