Telecommunications for the smart grid

Electricity distribution networks are undergoing the greatest transformation in their history. The accelerating electrification of the economy, the widespread integration of renewable energy sources, the growth of self-consumption and the expansion of electric vehicles demand much more dynamic, real-time system management. In this new context, telecommunications have evolved from a mere operational support function into a turning point: the true nervous system that ensures climate prosperity, security of supply and the cybersecurity of smart grids.

Historically, the need for communications in the electricity sector began with operational voice communications, a dedicated channel that enabled direct contact between field technicians and control centres, ensuring safety during complex switching operations. In the mid-20th century, the progressive automation of the system introduced the first digital protection systems and remote-control units. These devices required highly reliable communication links to monitor the status of facilities and execute switching commands remotely.

Today, given the complexity of a decarbonised and decentralised electricity system, telecommunications have become a key pillar of smart grid development, essential for anticipating incidents, automating operations and protecting the company's assets.

Key areas of telecommunications development in smart grids 

Today, telecommunications are essential to ensuring the efficient, safe and reliable operation of the electricity network. As a pioneer in deploying telecommunications services for the network, Iberdrola continues to lead development across all the areas required. This development is structured around four key areas:

Secure communications for a more resilient network

The digitalisation of the electricity system requires telecommunications infrastructure to be transformed into highly secure networks designed to maintain service continuity and mitigate risks in environments classified as critical infrastructure. Organisations such as the National Institute of Standards and Technology (NIST) highlight that smart grids depend on secure bidirectional communications technologies to strengthen monitoring, incident management and security of electricity supply.

The shift towards more digitalised energy systems increases the need for communications architectures that protect both data and operational processes. Recent studies on smart grid cybersecurity, such as Smart grid cyber-physical systems: Components, vulnerabilities, mitigations, opportunities, and conceptual framework, and organisations such as the European Commission highlight the importance of incorporating authentication mechanisms, communications protection and advanced threat detection and mitigation capabilities to maintain service continuity and strengthen electricity network resilience.

Iberdrola at the forefront of smart grid telecommunications

Iberdrola's leadership in telecommunications for electricity networks has enabled us to progress towards a more connected and automated smart network, better equipped to meet the energy system's changing needs. This involves combining high-capacity communications technologies with advanced digital solutions to collect and analyse information in real time, optimise asset operations and improve network efficiency and resilience. Examples of the cutting-edge technologies we use include:

• Optical fibre transmission using DWDM (Dense Wavelength Division Multiplexing): this technology makes it possible to transmit up to 100 times more information through a single optical fibre by using “light in different colours”. Each “colour” carries the same amount of information as a single conventional fibre.
• High-capacity IP/MPLS (Internet Protocol / Multiprotocol Label Switching) digital networks: enabling the transfer of large volumes of information, using the same technology that underpins today’s internet backbone.

• 4G and 5G networks, using both commercial operators' infrastructure and our own networks.

• PLC (Power Line Communications): telecommunications over power lines. We are leading the development of the PRIME (PoweRline Intelligent Metering Evolution) standard, which enables large-scale telecommunications to support the millions of smart meters installed to serve our customers, without the need for additional infrastructure beyond the power cables. We also have tens of thousands of devices deployed with broadband PLC (BPL) technology, which allows network assets to communicate through medium-voltage underground cables. This technology also improves the operation of the low-voltage grid.
• Software Defined Networks (SDN): we are leading the implementation of this technology in operational environments to enhance the resilience of automation and control of our electricity grid.

• Industrial IoT and edge computing: connected sensors and devices enable real-time monitoring of the condition of electricity assets. By processing data close to where it is generated, edge computing helps reduce response times and improve operational decision-making.

• Artificial intelligence and advanced substation automation: these solutions analyse large volumes of data from the network to anticipate potential incidents, optimise predictive maintenance and support more efficient, secure and automated electricity infrastructure operations.

Innovative telecommunications serving Iberdrola’s electricity grid

At Iberdrola we continue to make progress in telecommunications, leading multiple innovation projects in all the countries where we operate to develop technologies tailored to the needs of an electricity distribution company. These technologies enable, among other things, greater automation and control of the grid, advanced smart metering functions, communication and information support for field crews and improved communication with customers.

These digital capabilities deliver direct benefits to customers by contributing to a more reliable, efficient electricity network that is better adapted to changing energy needs. Advanced monitoring and automation help reduce the impact of potential incidents and speed up service restoration, while improved data management capabilities facilitate the integration of renewable energy, promote new self-consumption solutions and support the development of electric mobility. In addition, smart metering technologies provide users with more detailed information about their energy consumption, helping them make more efficient decisions and play an active role in consolidating a cleaner and more sustainable energy model.

The development of smart grids has required electricity companies to deploy extensive telecommunications networks. These networks have evolved from serving a few thousand locations to supporting millions of connection points and services that go far beyond traditional applications. This has presented a major challenge, which Iberdrola has addressed through innovative solutions.

Iberdrola has been a pioneer in this field and will continue to innovate through the development of projects to improve the performance of its telecommunications networks. This has established the Group as a global benchmark in the sector, always with the aim of improving the service we provide to our customers.