Smart1Grid Enterprise. Architecture

Transcription

1 UNIVERSITY OF CALIFORNIA, SAN DIEGO Smart1Grid Enterprise Architecture A Capstone Team Project submitted in partial satisfaction of the requirements of the Architecture-based Enterprise Systems Engineering Leadership Program Northrop Grumman NGIS Spectrum Center Clark Romuald Anthony Andrina Renee Luczon David Charles Martin Thomas Patrick Mulligan Committee in charge: Professor Harold W. Sorenson, Chair Professor Ingolf Krueger Professor of Practice Alexander Zak Professor Thomas Roemer 2013

2 Copyright 2013 by Northrop Grumman Corporation

3 Signatures The Team Project prepared by Clark Anthony, Andrina Luczon, David Martin, and Thomas Mulligan is approved Professor Ingolf Krueger Professor of Practice Alexander Zak Professor Thomas Roemer Professor Harold W. Sorenson Chair University of California, San Diego 2013 iii

4 Table of Contents 1.0 Project Context: Smart1Grid Approach Strategic Analysis SWOT Analysis S Analysis Analysis Diamond Framework Analysis Forces Model TOP Perspective Financial Analysis Net Present Value Customer Value Proposition Real Options Analysis High R&D Proposal Low R&D Proposal Financial Justification System Description and System Design System Complexities System Development Overall Strategy System Purpose and Top Level Requirements Top Level Description Preliminary Risk Register iv

5 4.6 Overall Development Process Concept Maps for System Design Architecture Design AV-1: Overview and Summary Information Architecture Project Identification Name Architect Organization Developing the Architecture Approval Authority Date Completed Level of Effort and Projected and Actual Costs to Develop the Architecture Scope: Architecture View(s) and Products Identification Views and Products Developed Time Frames Addressed Organizations Involved Purpose and Viewpoint Purpose, Analysis, Questions to be Answered by Analysis of the Architecture From Whose Viewpoint the Architecture is Developed Context Mission Doctrine, Goals, and Vision Rules, Criteria, and Conventions Followed v

6 Tasking for Architecture Project and Linkages to Other Architectures Tools and File Formats Used Preliminary Considerations Architecture Development Process Part 1: Define the Problem solved by the Architecture Part 2: Establish and Describe Requirements Part 3: Develop the Logical Architecture Description Part 4: Develop the Physical Architecture Description Executable Architecture Measures Of Performance and Effectiveness System Architecture Operational Views OV-1: Operational Concept OV-2: Operational Resource Flow Description OV-3: Operational Resource Flow Matrix OV-4: Organizations and relationships OV-5b: Operational Activity Model OV-6c: Event Trace Description Capability Views CV-1: Vision CV-2: Taxonomy CV-3: Phasing CV-4: Capability Dependencies vi

7 5.4.3 Systems Views SV-1: System Interface Diagram SV-6: Systems Resource Flow Matrix Services Viewpoints SvcV-3b: Services-Services Matrix SvcV-4: Services Functionality Description SvcV-8: Services Evolution Description SvcV-10c: Services Event-Trace Description Standards Viewpoint StdV-1: Standards Profile UML Model Architecture Use Cases Overall Class Diagram Enterprise Service Bus Class Diagram Glossary Class Categories and Subsystems Package Diagram Activity Diagrams Seamless Power Transition Management from a BLOS Location Secure Access Power Priority Distribution Local Management Sequence Diagrams vii

8 Seamless Power Transition Management from BLOS Location Secure Access Power Priority Distribution State Machine Diagrams Authentication Logging Remote Access Design Patterns Security Architecture Governance Decision Making Process Structure - Managerial Levers Composition Context Communication Process - Key Questions Function Approach to Bounded Rationality Issue: Limited Information Mitigation Issue: Cognitive Limitations Mitigation Issue: Limited Processing Resources viii

9 Mitigation Conclusion / Path Forward Appendix A AV-2: Integrated Data Dictionary Appendix B Colored Petri Net (CPN) Executable Model Appendix C Use Cases ix

10 List of Figures Figure 1. Smart1Grid Concept Map: Project Context... 2 Figure 2. Smart1Grid Concept Map: Approach... 4 Figure 3. Smart1Grid Concept Map: SWOT... 7 Figure 4. Smart1Grid Enterprise 7S Figure 5. Smart1Grid Concept Map: Diamond Framework Figure 6. Smart1Grid Staging Figure 7. Expanding the Corporate Image Figure 8. Smart1Grid Concept Map: 5-Forces Model Figure 9. Smart1Grid Concept Map: TOP Perspective Figure 10. Smart1Grid Concept Map: Economic Benefit Figure 11. Smart1Grid System Development Cash Flows Figure 12. Overall Strategy for System Development Figure 13. Smart1Grid Concept Map: Problem Formuation Figure 14. Smart1Grid Top Level Concept Map Figure 15. OV-1 Operational Viewpoint Figure 16. Operational Viewpoint OV-2 Operational Resource Flow Decryption Figure 17. Operational Viewpoint OV-4 Organizations and relationships Figure 18. Operational Viewpoint OV-5b Operational Activity Model Figure 19. Operational Viewpoint OV-6c Event Trace Description Figure 20. CV-2 Capability Viewpoint Taxonomy Figure 21. CV-4 Capability Viewpoint Dependencies x

11 Figure 22. SV-1 Systems Interface Diagram - Initial Figure 23. SV-1 Systems Interface Diagram - Detailed Figure 24. SvcV-3b Services-Services Matrix Figure 25. SvcV-8 Services Evolution Description Figure 26. SvcV-10C Services Event Trace Figure 27. Smart1Grid Overall Class Diagram Figure 28. Enterprise Service Bus Figure 29. Smart1Grid Overall Package Diagram Figure 30. Activity Diagram: Seamless Power Transition Figure 31. Activity Diagram: Management from a BLOS Location Figure 32. Activity Diagram: Secure Access Figure 33. Activity Diagram: Auto Grid Manager Figure 34. Activity Diagram: Local Management Figure 35. Sequence Diagram: Seamless Power Transition Figure 36. Sequence Diagram: Management from BLOS Location Figure 37. Sequence Diagram: Secure Access Figure 38. Sequence Diagram: Power Priority Distribution Figure 39. Sequence Diagram: Local Management Figure 40. State Machine: Authentication Figure 41. State Machine: Logging Figure 42. State Machine: Remote Access Figure 43. Decision Making Process Figure 44. Stylistic Update #1: Using Association Classes xi

12 Figure 45. Stylistic update #2: Seperating Class Attributes from Operations Figure 46. Data Declaration Example: Colorset Definitions Figure CPN Tools Model Message Sequence Chart (MSC): Part Figure CPN Tools Model Message Sequence Chart (MSC): Part 2 (Full) Figure 49 CPN Tools Model State Space Analysis xii

13 List of Tables Table 1. Smart1Grid SWOT Analysis... 6 Table 2. Smart1Grid Market Opportunities Table 3. Smart1Grid Estimated Cash Flows Table 4. Smart1Grid Estimated Startup Costs Table 5. Smart1Grid Customer Value Proposition Table 6. Smart1Grid High R&D Proposal Table 7. Smart1Grid Low R&D Proposal Table 8. Smart1Grid Concept Map: Complexity Table 9. Risk Register Table 10. Operational Viewpoint Diagrams Table 11. Operational Viewpoint OV-3 Operational Resource Flow Matrix Table 12. Capability Viewpoint Diagrams Table 13. CV-3 Capability Viewpoint Deployment Phasing Table 14. Systems Viewpoints Table 15. SV-6: Systems Resource Flow Matrix Table 16. Services Viewpoints Table 17. SvcV-3b Services-Services Matrix Key Table 18. SvcV-3b Services-Services Matrix Table 19. Standards Viewpoints Table 20. StdV-1 Standards Profile Table 21. Breakdown of Classes by Subsystem xiii

14 ABSTRACT OF THE THESIS Smart1Grid Enterprise Architecture by Clark Romuald Anthony Andrina Renee Luczon David Charles Martin Thomas Patrick Mulligan Masters of Advanced Studies in Architecture-Based Enterprise System Engineering University of California, San Diego, 2013 Professor Harold W. Sorenson, Chair There is a lack of energy surety that exists throughout the world. Aging power grids in conjunction with more volatile weather patterns is making this issue more of a priority to both governments and corporations across the globe. Northrop Grumman is primed to capitalize on this developing market by leveraging its existing technology, integration capabilities, and business partnerships. xiv

15 The architecture presented addresses this problem while also showing a business case that illustrates a profitable path forward. Strategic business models are used to show how Northrop Grumman s management structure and market capabilities posture it for success in the energy management systems arena. The solution demonstrates development processes, governance models, and design principles to create an automated and intelligent ad hoc energy network that exhibits self-healing and scalable properties. The Smart1Grid provides a solution that can be utilized anywhere that there is a need for reliable power. The enterprise architecture shows how Northrop Grumman can enter a new market while providing an innovative solution. xv

16 1.0 PROJECT CONTEXT: SMART1GRID The existing legacy power grid is undependable, over utilized, and extremely vulnerable to both man-made and natural catastrophes. When there is an outage on the main grid, critical areas must have the infrastructure in place to continue operation while using their own sources of energy. There is a need for automatic and seamless power transition. In event of a grid failure in today s society, generators must be manually started thus leaving the possibility of a significant gap before power is turned back on to critical infrastructure. There is a need for power prioritization in critical infrastructure areas. This can be accomplished by isolating itself from the main grid in order to prevent system collapse. The energy market is in an evolving state and needs to transition from an aging infrastructure to scalable, networked and more secure architectures. Technology growth has enabled the creation of innovative solutions to problems posed by population growth, disaster recovery and infrastructure scalability. However, this growth also creates an entry for malicious activities, thus increasing the need for more secure networks. Further, the global push to become more conscientious with our energy consumption drives the need for energy usage analytics. The security capabilities of the Smart1Grid address market demand posed by increased network compromises. The lack of energy surety at critical areas presents new market opportunities for energy management systems with our automated and intelligent ad hoc energy network that exhibits self-healing and scalable properties. 1

17 2 The Northrop Grumman Smart1Grid provides a solution that can be utilized anywhere that there is a need for reliable power. The Smart1Grid offers auto failover to ensure continued performance of critical missions. Our approach ensures seamless power transition, reducing risk of mission failures and increases customer satisfaction. The policy driven architecture allows autonomous management of the grid during emergency scenarios providing protection of valuable resources and risk reduction to the customer. The Smart1Grid networking solution offers remote control of distributed assets and sharing of resources between grids resulting in the reduced cost of facility management and utility enhancement. Smart1Grid will provide a technically advanced yet affordable web-based enterprise architecture. The Concept Map figure provides an overview of the Smart1Grid project context. Figure 1. Smart1Grid Concept Map: Project Context

18 3 1.1 APPROACH Northrop Grumman enjoys brand recognition for the systems and services provided in today s defense and aerospace markets. The general approach recommended for entry into the microgrid market is to leverage existing customer contacts by initially providing microgrid integration services to our existing customer base. These microgrid integration projects will be performed on a case-by-case basis through individual proposal wins for specific integration projects. Design capability and microgrid integration experience will be developed through these initial projects. During this time, we will invest in the development of a general-purpose architecture that is flexible and scalable such that we can facilitate additional wins in large projects, including municipal, campus, and commercial customers. Increasing capabilities and scope of installations will provide access to a large commercial market demand for microgrid capabilities. approach. The Concept Map figure provides an overview of the Smart1Grid project

19 Figure 2. Smart1Grid Concept Map: Approach 4

20 2.0 STRATEGIC ANALYSIS A strategic analysis was performed using various models to understand the strengths and weaknesses of both Northrop Grumman and its competitors, new market opportunities and market growth potential. The subsequent analysis demonstrates Northrop Grumman s ability to capitalize on the developing energy management market by leveraging its existing technology, integration capabilities, and business partnerships. Strategic business models are used to show how Northrop Grumman s management structure and market capabilities posture it for success in the energy management systems arena. 2.1 SWOT ANALYSIS An analysis for understanding internal and external factors that may support or hinder Northrop Grumman s ability to success in the Smart1Grid venture was performed. The Strengths Weaknesses Opportunities Threats (SWOT) Analysis below highlights the initial findings and will support strategy definition through project maturation. The strategy that results from the SWOT analysis highlights Northrop Grumman s strong integration role and aligns with the corporate strategy to expand in global markets. 5

21 Table 1. Smart1Grid SWOT Analysis 6

22 7 The Concept Map figure below provides a SWOT overview. Figure 3. Smart1Grid Concept Map: SWOT 2.2 7S ANALYSIS An analysis of the Northrop Grumman enterprise was performed to understand its current position to achieve success for market entry into the energy industry. Although we do not have a strong foot in the energy market, the 7S analysis below shows Northrop Grumman s posture to enter and dominate the energy market.

23 8 Strategy: follows 1 : As a team we seek to exemplify Northrop Grumman s mission statement as Our mission is to be at the forefront of technology and innovation, delivering superior capability in tandem with maximized cost efficiencies. The security solutions we provide help secure freedoms for our nation as well as those of our allies. Squarely meeting our obligations, fiscally and technologically, isn't just a business goal, but a moral imperative. To that end, as we evolve as a company, the responsibility we feel for our country and the citizens and troops we help support grows with us. The strategy for Smart1Grid project pursuit includes the utilization of our strong integration and C2 abilities to provide smart and secure energy management. We will further utilize our existing customer base to expand opportunities to facility management. The Smart1Grid innovative solution to surpass the challenges of an evolving energy industry aligns with the Northrop Grumman corporate strategy. Structure: Northrop Grumman has a very adaptive structure that is constantly evolving to an ever changing world that allows the ability to provide quick response solutions. Corporate infrastructure exists as a geographically dispersed company thus supporting the creation of relationships with partners throughout the country. The corporate is broken into sectors, division, business unit and directorates to support customer need. This structure allows the addition of or adaptation to new business and market opportunities. 1 Northrop Grumman Corporation. 15 July 2013.

24 9 Smart1Grid utilizes the capabilities and talents of existing Northrop Grumman Defense Systems Division. Systems: Northrop Grumman has a variety of systems in place to support daily activities and procedures that employees engage to accomplish tasks. These systems include: Procurement system, vendor information system, corporate policies, engineering, finance, business development, logistics, field support The microgrid project will utilize all existing systems to provide our solution. The current systems will have to be adapted to support a commercial industry. Shared Values: Northrop Grumman is a corporation made up of highly educated engineers that support the United States and US DoD. As a growing global corporation, Northrop Grumman is further postured to grow in global facilities management. Smart1Grid allows Northrop Grumman to continue to provide innovative and secure solutions for our war fighter and the greater global population. Style: The style of Northrop Grumman focuses on innovation and quality. This is achieved through engaged senior management, innovation competitions, leadership challenges and a true focus on thought leadership. Northrop Grumman is seen as an innovator and continues this innovation through cost effective solutions utilizing existing capabilities to meet the needs of the evolving energy industry.

25 10 Staff: Northrop Grumman includes a staffing team of engineers, finance, marketing, management. The emergence into the energy market will require pursuit of additional engineering disciplines to include power specialties and CA Professional Engineers. Skills: Northrop Grumman focuses on the following disciplines: Software engineering, RF engineering, mechanical engineering, electrical engineering, systems engineering, cyber engineering, program management, finance, schedulers, cost account managers, proposal authors, technical writers, quality assurance, configuration management. The microgrid project would leverage the existing skills above, in addition to requiring new power and energy management skills. The Concept Map Figure provides an overview

26 11 Figure 4. Smart1Grid Enterprise 7S ANALYSIS Northrop Grumman s primary business practices show adaptation opportunities to pursue business in the energy management market. The selected secondary management practices demonstrate the ability of Smart1Grid to further align with the Northrop Grumman corporate strategy. Primary Management Practices:

27 12 Strategy: Utilize our strong integration and C2 abilities to provide smart and secure energy management systems. We feel this strategy effectively ties in with the ideals of the 4+2 approach. It is focused on the core business ideals of Northrop Grumman, which is why our initial target market is military installations. There is also a clear need for this technology due to the uncertainty of power grids across the world. Our customers have expressed clear desires for this application and we ensured our strategy aligns with their requests. We also considered the changing marketplace that is currently evolving in the United States. Defense cuts are looming and we want to be properly prepared. This new technology will give our corporation an advantage against our competitors. The global need for energy surety makes the future marketplace expansive and incredibly lucrative. Execution: The execution of our project is critical. We plan on initially developing enterprise architecture and expanding upon it. We will develop a scalable and well managed microglia and implement it at Camp Pendleton Marine Base. This demo will provide a real life example of what our technology can amount to. Effectively executing our project plan will lead to the future success of our program. This will establish an opportunity to build upon an initial series of executions to assume the role of industry leader in this new marketplace.

28 13 Culture: Northrop Grumman s culture provides a very unique experience for their employees. It is a culture that is geared towards serving the war fighter abroad. It is constantly brought up in meetings who our true customer is. These reminders let every employee feel like they are serving a purpose. This motivation helps our corporation deliver excellent products in timely manners. The current culture will also help us on delivering our project. Implementing our solution will increase national security and ultimately save lives. This is in line with our current corporate philosophy. Structure: Northrop Grumman is structured for integration projects and innovative ideas to be implemented rapidly. This helps employees know that their voices will be heard and that their ideas are being considered by upper management. This structure promotes free thinking through Internal Research and Development (IRAD) programs. These programs take conceptual ideas and turn them into real products that Northrop Grumman can market. Our goal for our project is to have our corporation invest money via an IRAD. The company s structure is already mapped out for us to complete this ambition. We also feel like our project aligns with the goals of our sector and will widely be accepted by management. Secondary Management practices of innovation and talent best describe the ability for Smart1Grid to align with the Northrop Grumman corporate strategy. Secondary Management Practices:

29 14 Innovation: Our project aligns with the ideas of the principles of innovation. There is no technology currently in the market that allows multiple grids to be managed by one source. We will dominate this market before our competitors have a chance to develop a product that is similar. This innovation will gear our company to be the industry leader in the power management arena and set the bar for any disruptive competitors down the road. Talent: Northrop Grumman puts a high priority on talent management. High performers get noticed and are given challenging jobs. If our project does in fact become a corporate priority, it will attract industry talent from all avenues. This intriguing job opportunity will help retain talent already at the company and help expand the engineering expertise currently at our facility. 2.4 DIAMOND FRAMEWORK ANALYSIS The diamond analysis below indicates how Northrop Grumman fits into the existing market. The lack of a market leader postures Northrop Grumman to succeed over potential competitors due to past performance on integration programs, existing customer relations with growing needs in the facility and energy management areas and the company s ability to quickly respond and provide cost effective solutions to customers. Overall Strategy: Utilize our strong integration and C2 (Command and Control) capabilities to provide smart and secure energy management systems. The following provides a more detailed description of the core strategies for the Smart-Grid Project.

30 15 The Concept Map figure provides an overview. Figure 5. Smart1Grid Concept Map: Diamond Framework Arenas: Initially, the focus would be on specific pilot projects with military customers (from our existing customer base). There are existing RFPs (Request for Proposal) to

31 16 provide microgrid solutions for military bases like Camp Pendleton and Miramar. Additional military needs include FOBs (Forward Operating Bases). The focus would be on integration of Smart Grids at a scale larger than existing industrial and commercial providers typically address, and with customers having special security needs and concerns. That arena would be expanded to include governmental agencies and municipalities with critical infrastructure concerns and operational responsibilities to support the public safety. Later, as systems are verified to operate satisfactorily and gain some reputation for reliability, institutional and industrial customers would be addressed. As capability expands, and systems are integrated in foreign environments, opportunities exist to provide large scale integration for foreign national customers in second world countries with unreliable power, and third world countries with undeveloped power grids. Vehicles: We will build on our existing integration and test skills. These capabilities are familiar to our existing customer base, based on a history of large scale integration activities. As an integrator, our strategy is to develop a flexible architecture that accommodates legacy equipment, but also support expansion by combining best-of-class source components, with flexible expansion options.

32 17 We have no desire to become power grid equipment manufacturers, so it would make sense to partner with existing vendors such as SunPower or SolFocus (for Photovoltaic arrays), Solar Turbines (gas turbine generators) and with Power Storage manufactures such as Hydrogenics or Bloom (natural gas Fuel Cells). The reason to partner is to establish supply chain relationships to generate high-volume discounts for ongoing additional capacity expansion of existing microgrids. Initially, the integrations issues with disparate and older legacy equipment will be difficult, but expansion by adding additional capacity can be managed to exploit economies of scale. For the power grid monitoring function, we would seek partnerships with a big data analytics provider, such as Power Analytics. In addition, we would incorporate advanced power grid status monitoring, such as the use of synchrophasors to detect and react to disturbances in the grid. For communications back-up capabilities (and to network Smart-Grids in the event of a general blackout), partnerships would be sought with satellite and wireless communications vendors such as ViaSat and OnRamp Wireless. Differentiators: NGC s (Northrop Grumman Corporation s) image as a provider of security and defense systems is a brand advantage in this market since the perceived quality of the solution is closely tied to the security of the system. There are other defense contractors likely to enter into competition in this market, however, Northrop Grumman, which includes legacy companies like TRW (former provider of credit card database systems) may be perceived as having more experience with data protection and networked system

33 18 security. In addition, NGG is a provider to the CDC (Centers for Disease Control) for data processing systems and outbreak monitor and control systems. NGC s image as a monitor and control system integrator is known to existing customers, and can be promoted to other large organizational and governmental customers. An initially important differentiator is existing integrator relationships with military organizations. Given the operational mandate of these organizations to provide a defensive posture in the face of blackouts, terrorist threats, and national disasters, these organizations are among the first to fund Smart-Grid technology deployment. NGC s ability to act as an integrator for desperate components and to manage the relationships with multiple vendors will save the customer organizations from having to support the complex contract administration and save them quality assurance and integration costs (costs which would be higher without an experienced systems integrator). NGC has Integration and Test economies of scale which cannot be duplicated by others. A long history of large integration projects provides the organization with skilled field personnel and extensive lab facilities stocked with electronic test equipment and computing equipment support. Managing the personnel and having the flexibility to move people around to different projects is something that requires a large company with integration experience. The ability to manage multiple vendors and integration timelines, and test and verification of systems are all skills that take organizational knowledge and experience.

34 19 NGC can invest in reliability testing, has facilities for cyber testing, and can support modeling and simulation of command and control systems that smaller integrators could not provide. Finally, NGC has extensive experience with technology transfer outside the US, which will provide risk mitigation for international expansion. Economic Logic: At high level, the economic logic that drives the selection of NGC will be that we can provide low cost through scope and repetition advantages. Large scale integration projects with municipal customers and international governments will provide economies of scale and a large base of installed systems for which capacity will continue to grow with energy demands. NGC can achieve a preferred status due to its global presence and global reach. Cost drivers will include the achievement of high volume through large scale integration jobs. The economic logic for the customer is that a local microgrid allows them to take private ownership for their own energy surety. The public power grid is vulnerable and has had a number of high profile catastrophic failures in recent years. The existing, legacy public power infrastructure provides tremendous value for power; it is not presently possible to compete on cost per KWHr with the public power grid. Local power generation cannot avail of the economies of scale and publicly funded

35 20 generation resources and infrastructure (although it becomes a NPV win for the customer when amortized over a number of years). Instead, the smart modular microgrid allows a customer to provide their own power to a pre-configured set of resources when the external power grid fails, and it allows them to sell power back to the grid when their own capacity to store power is exceeded. This provides both security and continued operation during adverse events. This capability is a way of providing insurance that the organization can continue to operate. Staging: Larger projects with uniform (legacy) power grid infrastructure have fewer types of components to integrate. Projects like Military bases will have existing infrastructure (not tied together), but will be relatively uniform due to the logistics of maintaining the equipment up to the present time. Newer projects with smaller customers (such as industrial and private projects) will introduce more diverse equipment and newer equipment (less legacy infrastructure). Expansion of infrastructure will focus on newer equipment and technologies, but newer equipment used for expansion may be selected for their ability to integrate and complement the existing infrastructure. Stage 1 will focus on capturing strategic contracts from existing customers to develop capabilities and reputation for Smart-Grid integration. Initial projects will likely focus on integrating existing power generation equipment with storage capability. Monitor and control of the existing grid will be implemented, and flexible options for expansion will be developed.

36 21 Stage 2 will expand the arena to include municipal and governmental projects. After the initial deployment of military Smart-Grids, and some demonstration of their reliability and flexibility, other customers may emerge with large scale projects for which security is major concern, and for whom a large system integrator (a focal point for negotiations and responsibilities) is the most attractive option. Stage 3 will initiate global expansion by courting international government projects. By this stage, economies of scale will be large enough to pursue international projects (such as the modernization of critical infrastructure). Foreign governments (or their delegated ministries) will be the target customers. Stage 4 will further expand the arena to include organizational and industrial contracts. This expands the customer base into the private sector and to smaller sized customers. By this stage, experience and replication will support smaller scale, and shorter timeframe projects efficiently.

37 22 Large Customer Size Small * Military * International Government al * Industrial Uniform Diverse Overall Smart-Grid Targets Stage 1 Capture strategic military contracts Stage 2 Capture municipal and government contracts Stage 3 Capture international projects Stage 4 Capture (smaller) organizations and industry Larger projects with uniform (legacy) power grid infrastructure have fewer types of components to integrate. Newer projects with smaller customers will introduce diverse equipment and newer equipment (less legacy infrastructure) Figure 6. Smart1Grid Staging

38 23 In addition to the pursuit of different targets at various stages, there is an opportunity to broaden the corporate image from that of Defense Only to Assurance and Security provider. Assurance Perception Defense Stage 1 Stage 2 Stage 4 Stage 3 Near Term Future Over Time Corporate Image During later Stages of Smart-Grid deployment, a wider customer base is sought, necessitating a broadening of corporate image from Mostly Defense to Assurance and Preparedness. Stage 1 Present Defense image is effective Stage 2 Present Defense image is effective Stage 3 Present Defense image is effective Stage 4 Private sector focus on assurance, self reliance - Alternatively, there can be a spin-off for Stage 4 provider Figure 7. Expanding the Corporate Image

39 FORCES MODEL At a high level, the economic logic that drives a customer to select Northrop Grumman will be that we can provide low cost through scope and repetition advantages. Large scale integration projects with municipal customers and international governments will provide economies of scale and a large base of installed systems for which capacity will continue to grow with energy demands. Northrop Grumman, as the initial integrators, is more likely to continue managing the projects, and has preference participating in the expansion of capacity through the selection and integration of additional power generation capabilities and storage equipment. NGC can achieve a preferred status from providers due to its global presence, global reach and due to the large size of integration projects it is able to support. Cost drivers will be high volume through large scale integration jobs.

40 25 The Concept Map Figure below provides an overview. Figure 8. Smart1Grid Concept Map: 5-Forces Model Overall Strategy for Microgrid Array Technology Leverage experience in government contracting. initial projects. Utilize RFP (Request for Proposal from the Federal Government) process to fund Exploit broad talent base for big engineering tasks.

41 26 Capitalize on secure network infrastructure, network monitoring, and area surveillance experience. Develop energy service infrastructure and communications infrastructure. Develop Energy Management Systems network analysis and monitoring services. Differentiate from incumbents by extent and robustness of security resources and integration with government armed services. Utilize remote monitoring equipment and network integration capabilities. military. Integrate, alert, inform, and facilitate first responders, government regulators, and Rivalry among Incumbents Incumbents: Honeywell, GE, BAE, Lockheed Martin, Industrial Control providers, Solar Turbines, etc. We will develop and expand the market by raising the bar on security, configuration and monitoring capabilities. Our highly integrated and secure systems will differentiate us from competitors. There is an emergent market now developing for large scale military, municipal, and governmental critical infrastructure monitoring and protection. Incumbents may include power grid suppliers, but they typically only partially serve the market. For example, remote monitoring and control equipment may be limited, security may be low. limited focus. Incumbents may service smaller, corporate or private interests due to their own

42 27 For the larger, defense contractor incumbents, they have not been sufficiently established or entrenched. The key to gaining a competitive edge is to capture more projects earlier, and perform well. Bargaining Power of Suppliers The integration effort (an internal, NGC company strength) will strive to integrate off the shelf commodity components. Supporting a variety of disparate components from many vendors will allow the incorporation of hardware components not tied to particular suppliers. For the Energy Management Systems (computing and network systems) the strategy will remain the same as it is for the corporation overall: we utilize a competitive selection from available vendors by our procurement organization. This organization is extensive with electronically supported ordering and tracking systems with robust financial analysis support. There are procedures for vendor vetting and historical vendor performance analysis. There are many suppliers (so they have low leverage) of electrical equipment, industrial control equipment, networking equipment, etc. There is a long, extensive history of electrical power grid component suppliers (since early 20th century). There is a widespread application of technology that provides robust (worldwide) competition. Bargaining Power of Buyers We will provide the type of large, highly integrated systems customers require to support their security needs, and dependability and robustness requirements. There is potential for vertical integration of the monitoring and control services (for the Energy Management Systems), e.g. NGC Corporation is already a provider of critical

43 28 infrastructure. NGC provides computing, monitoring, and tracking of outbreaks to the CDC (Centers for Disease Control). NGC provides monitoring and control of wide area targets, etc. Military buyers have extensive leverage, but the bid process is competitive (FAR regulations); an understood process for NGC. Municipal buyers have great latitude to choose suppliers, but may be directed to provide certain safeguards and services by legislation which forces them into Energy Management Systems. Threat of Entrants We will develop and maintain key customer contacts. Develop thought leadership in applicable technical fields. Maintain leadership in expertise and process technology. Maintain test and integration capabilities (leveraging the already expended cost of existing facilities). There is a high threat of entrants due to the anticipated expansion of the market. The market is expanding due to the critical nature of the underlying issue: reliance on an undependable public power grid. Additional market drivers are the expansive market opportunities available, and the general potential for privatized resources. Individual Company business parks already own their own transformer equipment, steam generators, etc. For customers such as military installations (with discriminating requirements), municipal installations, and critical infrastructure maintenance, the capital requirement

44 29 for integration, testing, and infrastructure support is very high; large economies of scale are required to integrate these systems efficiently The learning curve is high for integration of command, control, and monitoring systems; our own (NGC) corporate know-how is high for these types of systems. The learning curve for government regulations and government customers is high. objectives. Our own (NGC) corporate culture supports national defense customers and Threat of Substitutes We will retain high vertical integration in Energy Management systems. We will develop integrated command and control systems that require such extensive know-how and capabilities that they are too difficult to copy. That is to say, we will focus on product differentiation. There is a high threat of substitutes for partial solutions (individual power systems components and smaller grids with lesser security constraints) for small scale and corporate solutions. There is a lower threat of substitution at military installations, municipal installations, critical infrastructure maintenance, for which we will be perceived as preferred suppliers. Threat/Aid of Complement We will establish industry capabilities, industry norms, and set expectations needed to drive the acceptance of secure, scalable, self healing Smart-Grid networks. We

45 30 will incorporate complementary Smart-Grid technology for power generation, switching equipment, and power storage, but maintain leadership in the Energy Management Systems by assimilating products into the NGC developed architecture as they are introduced into the marketplace. Failure to incorporate desperate components from many vendors will eventually result in rejection of the Energy Management System Architecture. The existing public utility companies will be challenging to deal with, both fitting into their existing structure and accommodating their needs and requirements. On the other hand, existing utilities are over-stressed by population growth and expanding energy consumption which must be supplied by an aging grid; they have their own compelling reasons to support the expansion and adoption of Smart-Grid technology in order to balance out power loads, reduce peak consumption, and mitigate the public safety issues inherent in the existing vulnerable power grid. Potential disruptive technologies (technologies which must be integrated into our systems as soon as there are significant developments) include: Solar Cell Technology (Photovoltaic), Battery Technology, Storage Technology (Fuel Cell, Momentum storage) 2.6 TOP PERSPECTIVE The TOP Perspective below is used to explain how the Smart1Grid project aligns with Northrop Grumman Capabilities. The Concept Map figure below provides an overview.

46 31 Figure 9. Smart1Grid Concept Map: TOP Perspective T (Technology) As a company we have a lot of experience with information systems integration. We can use our expertise to make this project come together more easily. We have existing Command and Control software that could be used as a basis, or used as a model for, the software required for this project. The project will be introducing a new power management system to the market which will set it apart from its competitors. The system will be leveraging state of the art power generation modules and also be showcasing innovative ways of securing it. From a technology stand point, I feel that this project is very intriguing and worth doing. O (Organization) Our organization is structured for creation of large-scale systems. Our culture is such that we focus on quality, and are responsive to customer wants and needs. We foster innovation to create new technologies.

47 32 P (People) We have several high-level stakeholders within the organization who are very interested in this project already. We have talked with potential customers that are looking for this type of solution. We already have relationships with strategic partners that could provide more energy expertise. The Smart1Grid project is a viable venture because it exploits technology, organizational and people strengths to achieve success in a new field that initially has many customers from our existing customer base. The technology development expands opportunities in a field that has high potential for market expansion in the near term, to include educational, municipal, and private business organizations. Developing this business area will greatly expanded our customer base, including international customers and opportunities. The opportunity to provide a scalable solution enhances the market opportunity. Developing a new business are and attracting a wider base of customers is always an attractive option, but this business area is also attractive due to its potential for market growth in the near term, with the support and direction of policy makers who have targeted energy surety as an objective, and it market is being driven by highly visible failures of the public grid. This developing market has recognized providers, but no clear market leader yet, so there is an opportunity to establish ourselves as a leader in the market.

48 3.0 FINANCIAL ANALYSIS Financial analysis is a critical indicator on whether a project gets funded. The ability to show a profitable path forward through metrics gives a better depiction of the viability of a project to key stakeholders and decision makers. Smart1grid used financial tools Net Present Value and Real Option Analysis to perform its evaluation. 3.1 NET PRESENT VALUE The Concept Map Figure below provides an overview. Figure 10. Smart1Grid Concept Map: Economic Benefit The NPV (Net Present Value) for the project (to the Northrop Grumman Corporation) may be calculated by considering the costs to enter the marketplace and comparing that to the revenue that will be generated by ongoing integration, monitor, 33

49 34 support, and expansion services. Additional value may be accrued by strengthening our competitive position, strengthening our capabilities, and diversification of our customer base. See below for an outline of expected inflows and outflows. Figure 11. Smart1Grid System Development Cash Flows We will ensure a positive NPV by creating an architecture that accounts for major growth opportunities while not being weighed down by significant cash outflows. After our initial design for the modular microgrid architecture, labor costs will go down since the NRE (Non-Recurring Engineering) can support further microgrid installations by replicating the initial design and customizing it. In addition, the cost of generating new business will go down since many customers will come to the table with basically the same set of requirements, thereby allowing us to respond to and generate new proposals

50 35 by building on our existing ones. Also, with higher sales volumes in the future, our subcontractors (component providers) will competitively bid to supply materials to us. This in turn will drive down their direct costs to Northrop Grumman. While all of these cash outflows are going down, contract awards will be going up. This increased sales revenue will keep the value of the project high. Overall market opportunity: The estimated market size for Smart Grid installation and related services is described below. With an overall value on the order of $250 Billion dollars over the next 5 years, the market opportunity in Stage 1 alone represents Net Present Value sufficient to pursue the initial pilot projects necessary to enter the market. The associated engineering and maintenance awards are broken out for military Installation Smart- Grids and FOBs (Forward Operating Bases), but similar derivative opportunities also exist in the other sectors. Target Markets ($Billion) Stage 1 -Military Military Base Smart-Grid Install Eng NRE Contract Awd Maintenance Contract Awd FOB Smart-Grid Install Eng NRE Contract Awd Maintenance Contract Awd Stage 2 -Government & Org First-Responders Smart- Grid University Smart-Grid Municipal Smart-Grid Stage 3 -International Org Maquiladora (Bus. Park

51 36 Area) Stage 4 -Industrial Individual Corporate Grids Total Market Opportunity Table 2. Smart1Grid Market Opportunities Costs to enter the marketplace: The integration efforts would start in phase 1 by capturing medium to large Smart-Grid integration projects from familiar customers. In this phase, a traditional Northrop Grumman process may be followed that includes observing the normal appearance of RFPs (Request for Proposals), PONs (Program Opportunity Notices) and other solicitations, and competitively bidding against rivals. That is combined with key customer contact identification and thought leadership in order to become a key player in the market, and potentially expanding the market by illuminating opportunities that may not yet have been initiated by the customers themselves, as well as accelerating the pace of development and adoption of microgrid technologies. Later stages would include the courtship of larger customers and projects, and expand the scope to the international arena. Costs would rise due to the need for marketing and establishing contacts and relationships in second and third world areas. Revenues to be generated: The revenues generated by the Smart-Grid enterprise include analysis and integration fees paid by customers, ongoing monitor and control service costs, and additional fees for the integration of expanded capacity.

52 37 Additional corporate value generated by the project: This project will add value to the Northrop Grumman Enterprise by strengthening our competitive position, strengthening our capabilities, and diversification of our customer base. By identifying a smart, modular, scalable architecture for distributed power generation, we are creating a replicable microgrid architecture that may be customized to many additional customers (a potential worldwide customer base). By pursuing the initial pilot projects, we are creating a template to compete and win proposals for this integration intensive activity with future customers. The customer base extends beyond our existing base of military and government customers into the private sector, and to global opportunities where the potential benefits to the customer are much greater than in the industrialized world. Global areas with unreliable or non-existent power grids are under developed, and require a dependable power system in order to grow. In addition, the contribution of distributed green power sources to the global grid mitigates the problems inherent in the over-reliance on fossil fuels. This can also transition our corporate image from that of Defense Systems providers to Defensive Preparedness providers. The spreadsheet below illustrates estimated cash flows for the first 10 years. This represents a focus on Stage 1: the initial pursuit of Military projects, and includes initial capture costs. Later stages will have lower direct costs due to corporate learning (experience), and already-developed proposal materials. Assumptions: 1. There is an initial cash investment to cover startup costs

53 38 2. There are subsequent contract awards for installations, FOBs (Forward Operating Bases), with associated revenues for the contracts, as well as Maintenance and Expansion costs, captures in the spreadsheet as Contract Awards. ($Million) Year 1 Year 2 Year 3 Year 4 Year 5 R&D Labor Costs 150 Capital Costs 50 Deployment Labor Costs Capacity Costs 0 Operations Revenues Operating Costs Free Cash Flows Total Outflows Operations Free Cash Flow Net Free Cash Flow NPV ($Mil) $200,396 ($1) $3 $13 Table 3. Smart1Grid Estimated Cash Flows The Initial Startup Costs for a pilot project would include the following: Initial Investment Costs (First Grid) Capture costs Details Customer Shaping $200,000 Training $150,000 Proposal Costs $500,000 IRAD (Internal) $100,000 Labor Costs Engineering $200,000 Installation $120,000 Maintenance (Reserved) $100,000 $1,370,000 Table 4. Smart1Grid Estimated Startup Costs

54 CUSTOMER VALUE PROPOSITION In addition to the calculation of NPV from the perspective of Northrop Grumman Corporation, we have considered the costs and value to potential customers. There is a compelling value argument for the customer to install a Smart Grid solution. This is important to note, since the customer is actually financing some portion of the Smart-Grid installation costs by purchasing local energy generation equipment and local energy storage equipment based on the initial engineering analysis to determine required capacity, and distribution of equipment type to provide the recommended capacity. Cost considerations for the customer would include items in the figure below. The variable costs associated with a Smart-Grid installation depend on the size of the installation (in MW, or Megawatt Hours).

55 40 Considering three (3) sizes of Smart-Grids as follows (assuming a target ratio of 30% locally generated power to externally purchased power): 1. Small Smart-Grid Installation a) Example: FOBs (Forward Operating Bases) b) Example: Commercial Business Park c) Representative size: 10 MW Demand (3 MW Grid Capacity) 2. Medium Smart-Grid Installation a) Example: Fixed Installations (e.g. military bases) b) Example: Maquiladora (Bus. Park Area) c) Example: University Installation d) Representative size: 50 MW Demand (15 MW Grid Capacity) 3. Large Smart-Grid Installation a) Example: Municipal Installation b) Example: Regional, or State-sponsored Installation c) Representative size: 100 MW Demand (30 MW Grid Capacity)

56 41 Cost ($USD) Cost ($USD) Cost ($USD) ScaleFctr Installation Power Demand (MW) Smart-Grid Capacity Installation and Operating Costs Engineering ,200,000 6,000,000 12,000,000 Installation ,000 3,000,000 6,000,000 Operation ,000 3,000,000 6,000,000 Maintenance ,200,000 6,000,000 12,000,000 Material Costs 0 Energy Producers - Gas Turbine ,200,000 6,000,000 12,000,000 Energy Producers - Wind Turbine ,000 3,000,000 6,000,000 Energy Producers - Solar ,200,000 6,000,000 12,000,000 Energy Producers - Steam Generator ,200,000 6,000,000 12,000,000 Energy Producers - Electric Vehicles Energy Storage - Electric Vehicles ,000,000 15,000,000 30,000,000 Energy Storage - Fuel Cells ,400,000 12,000,000 24,000,000 Grid Switch Equipment ,000 3,000,000 6,000,000 Local Energy Grid ,000 3,000,000 6,000,000 Local Energy Service Bus ,000 1,500,000 3,000,000 Total Install Costs 0 14,700,000 73,500, ,000,000 Customer Value Security ,000,000 15,000,000 30,000,000 Reliability ,000,000 15,000,000 30,000,000 Mission Assurance ,000,000 30,000,000 60,000,000 Carbon Footprint Reduction ,000,000 15,000,000 30,000,000 Societal Health Benefit ,000 3,000,000 6,000,000 Peak Shaving (cost avoidance) ,800,000 9,000,000 18,000,000 Cost Stability (vs variable cost fossil) Fuel Savings over time (tbe=break-even-time) Total Value Costs 17,400,000 87,000, ,000,000 Table 5. Smart1Grid Customer Value Proposition

57 42 Notes: Electric Vehicles provide for both energy generation and energy storage (provided they contain Chevy Volt type gas generators to create battery charge). The capital cost to the customer for Energy Generation equipment may be considered a loan (to themselves) that will be paid back over a number of years through cost savings (vs. externally purchased energy).

58 REAL OPTIONS ANALYSIS Real Options Analysis is a tool used to limit risk through the life cycle of a product. The analysis allows there to be stages throughout a project to abandon, defer, or expand an investment. Here we present a Real Option analysis of Smart1Grid. Two scenarios were developed; a High R&D Proposal and a Low R&D Proposal HIGH R&D PROPOSAL Table 6. Smart1Grid High R&D Proposal

59 44 The High R&D Proposal real options analysis shows a scenario in which we have high research and development costs. These costs would go towards the design of a prototype smart grid and the development of a lab at a Northrop Grumman facility. This analysis resulted in an NPV of $203,418,000 and a NOV of $333,962,520. The main points that would be emphasized to senior management for the approval of this argument: Development of a hardware lab would make for quicker diagnose of problems resulting in greater customer satisfaction and reliability of grids. Prototype Development would improve the expertise of the engineering staff making for quicker delivery of future business and decreasing future deployments costs. On site prototype makes for easy accessibility for presentations to current and potential clients.

60 LOW R&D PROPOSAL Table 7. Smart1Grid Low R&D Proposal The Low R&D Proposal real options analysis shows a scenario in which we have low research and development costs. This proposal takes into account the California Energy Commission grant award for $1.7 million that was awarded to Harper Construction and Northrop Grumman for the development of a smart grid at Camp Pendleton. This grant would reduce the research and development costs by paying for a

61 46 prototype. This analysis resulted in an NPV of $200,847,000 and a NOV of $330,394,010. The main points that would be emphasized to senior management for the approval of this argument: Low research and development costs. Prototype Development at Camp Pendleton builds customer relationships which could result in numerous future contract awards. California Energy Commission contract award shows clear customer need and Northrop Grumman s ability to capitalize on it FINANCIAL JUSTIFICATION Our Smart1Grid project represents an investment which positions Northrop Grumman for entry into the energy sector. Our existing capabilities as systems integrators and our relationships with military customers provide an opportunity to step forward into the microgrid integration arena using existing capabilities and contacts. The Net Option Value represents the potential value of our project to Northrop Grumman if the microgrid market expands rapidly as predicted, and if we take the necessary steps required to capture a portion of the market. Investment into the microgrid sector may be broken down into three main development phases for Northrop Grumman: 1. Stage 1: Military Market

62 47 Acquisition of military contracts for fixed installations & forward operating bases. 2. Stage 2: Government and Organizations Expansion into governmental and private organization campus grids. 3. Stage 3: International Organizations Expansion into International (governmental sponsored) grids. 4. Stage 4: Public and Industrial market Expansion into (commercial) public and industrial commercial grids. Positive steps should be taken now to position us to capture a share of the rapidly expanding microgrid market. A successful entry into this business sector will be greatly affected by timing and phasing of our developments. Recent environmentally driven regional power outages such as fires in San Diego and Hurricane Sandy in the Northeast have introduced a sense of urgency to achieve energy surety for the military and critical responders. The threat of environmental disruptions, terrorism, hacking, or even simple errors which lead to system breakdowns have all underscored the need for a decentralized capacity for energy generation and management. This combined with military, federal, and municipal mandates for a reduction of dependence on fossil fuels and an expansion of renewable energy resource utilization as a percentage of total usage.

63 4.0 SYSTEM DESCRIPTION AND SYSTEM DESIGN The Smart1Grid system architecture must address many system level design issues. The Smart1Grid system is a complex system, meting the definition of a complex system as follows: A complex system is open to its environment, has a large variety of components, communication structure is in the pattern of a network, not a simple tree, and top-to-bottom analysis is impossible. 4.1 SYSTEM COMPLEXITIES The Concept Map Figure below provides an overview. Table 8. Smart1Grid Concept Map: Complexity Smart1Grid system architecture must address many aspects. Some of the main issues driving system complexity were identified in order to ensure that their impact was recognized and addressed by the system architecture. In general, integration efforts are complex operations due to the requirement of putting equipment from multiple vendors together into a unified system. You automatically have to deal with multiple vendors, 48

64 49 multiple legal environments (for global operations), and multiple stakeholders at user organizations, multiple external public grids. These headaches of integration is part of what makes it attractive to seek out a single unified integrator, though, so the more difficult the issues are, the more compelling is the case to utilize an experienced integrator to solve the complex problems. Some other key aspects that make our system complex are enumerated below. capabilities 1. Physical integration of disparate legacy equipment types and interface Our Integration efforts will be complex because there are many different types of hardware to integrate into the overall microgrid system. Since we expect every customer to have a wide variety of legacy power generation equipment and energy storage equipment (and existing procedures and emergency plans), we will be required to assimilate their equipment into our microgrid architecture. Each type of equipment comes with legacy remote capabilities and communications protocols, so there will be a good deal of study required to assimilate them and treat them in a consistent way. Some equipment (more modern) will likely support remote control and configuration, while much equipment may be completely non-controllable and configurable only manually. A mitigation will be to provide a micro-grid backplane which can allow external control and management by controlling external power to the equipment, and configuration with redirection of their power outputs (or control of power inputs for power users).

65 50 2. Management policies including default configuration, failover policies, and Islanded Policies There will be a large number of stakeholders (all the power users in the organization, which will be everybody). It will be necessary to identify policy makers to serve as arbiter of policy, but it will also be necessary to identify critical stakeholders and prioritize usage requirements to specify failover policy in the event of a blackout. Once Failover occurs, and the microgrid is in an Island configuration, it must be necessary to dynamically re-allocate energy resources and usage based on some chain of command, which requires communication with the microgrid users. 3. Installation of microgrids are governed by electrical regulations, federal, state, and local laws. Different kinds of organizations have different regulations that they are subject to. For example FOBs (Forward Operating Bases) may not have to comply with US Law while in deployment, but they will be expected to comply with the laws where they are deployed, and will have to comply with US Law during development and testing in the US. Public grid. 4. Operation of microgrids will be heavily dependent on the external The external Public grid will be different in every country, and in every region and locality. There are physical differences in the grids (third world grids will supply very dirty power as well as widely varied reliability. Local utility companies will also have certain expectations of users and may span a spectrum of tolerance for independent

66 51 operators setting up islanded microgrids. The evolution of microgrid solutions is forcing local utilities to accommodate new players in what was once their very isolated domain (the public grid). They have very real technical issues and capabilities based on their equipment, their mandate to monitor the network and charge appropriately, and their mandate to protect customers, personal information, and protections on access and interaction with the public infrastructure. 4.2 SYSTEM DEVELOPMENT OVERALL STRATEGY The overall strategy for system development is to utilize existing power and grid technologies. Our team will use the agile development approach. This will allow us to adapt to changing requirements and allow us to solicit feedback from the user and customer often and early. By using the agile development method, we will be able to react earlier to any risks that materialize. Our agile development plan would be structured like the following diagram:

67 52 Figure 12. Overall Strategy for System Development The success criteria of our project will be measured programmatically by the ability to secure contracts and field smart microgrid systems. The technical success of the project will be measured by the ability to meet and exceed customer requirements by ensuring the smart microgrid system will be able to deliver the expected output.

68 SYSTEM PURPOSE AND TOP LEVEL REQUIREMENTS The purpose of our team project is to design a modular and scalable Smart grid that provides energy surety to critical infrastructure across the world. The Concept Map Figure provides an overview: Figure 13. Smart1Grid Concept Map: Problem Formuation

69 54 The principal requirements are listed below. 1. In the event of an outage, the Smart grid shall transition to local power. 2. The Smart grid shall be capable of providing (y) kilowatts over (z) hours. 3. The Smart grid shall be able to be managed from a BLOS location. 4. The Smart grid shall provide secure access to its system. 5. The Smart grid shall be capable of power priority distribution. 6. The Smart grid shall provide a Built in Test (BIT) functionality. 7. The Smart grid shall be cable of real time data logging. 8. The Smart grid shall be able to be managed from a local location. 9. The Smart grid shall adhere to (x) government power regulation. 10. The Smart grid shall support a configurable policy. 4.4 TOP LEVEL DESCRIPTION below. The functions, structures and processes that describe Smart1Grid are described Functions The Smart1Grid will support the following features: - Baseline energy generation through passive means, such as solar - Emergency power generation through gas generators - Energy storage, via batteries or other means - Instant fail-over in power outage (immediate disconnect from main grid)

70 55 - Policy based power flow control to insure most critical infrastructure remains on - User GUI for monitoring current status and controlling the grid control units - Power line communications so components can talk to each other, and to the - Detailed power statistics logging Structure Our system will consist of many control units that can either be peered together and communicate to share the load of the system, or they can be setup in a child/parent relationship where they are delegated some amount of control from the parent control node. The control unit types can be mixed and matched to suit the needs of the specific implementation. There need to be components that can isolate sections of the grid that are lower priority, so that the higher priority areas will receive sufficient power. There will be a component that can isolate the entire microgrid from the main grid if it predicts a power anomaly. We will have many types of power generation and storage components. There will be power generation capabilities that need to be controlled, so they can be turned on when there is a need for extra power. There will need to be a control room where the operator can view the status of the system on a GUI and setup the system policies. Power line communication components will be necessary so that control units can talk to one another, as well as to the logging mechanism and the GUI. Process Users will be able to easily view the status of the system in the control room. Users will be able to build policies and set priorities for individual sections or subsections of the grid from the GUI. Users will also be able to control the grid remotely from an external GUI. In the event that there is an external power anomaly, the system

71 56 will disconnect itself from the external main grid. In the event of power being insufficient for the current load, the control units will follow the assigned policies to shut down lower priority components on the grid. In the event that components have been shut down by the system, and an excess capacity state has been reached, the power to those components will be restored. Also, in the event of insufficient power, emergency power generation components will be brought on line automatically. 4.5 PRELIMINARY RISK REGISTER A preliminary Risk Register was developed to track project risks. The table below lists risks that we identified in our project along with their likelihood and their potential level of impact. The transition indicators are signs to look for that may indicate that the risk item is imminent. The mitigation strategy describes how we intend to avoid the risk.

72 57 Risk Register # Risk Likelihood Impact If our initial microgrid installations fail to work in response to an outage, Then our reputation will be damaged. If we fail to identify and convert an existing monitor and control solution to the microgrid architecture, Then we will have a costly development project to provide a solution. If there is a lack of funding for Research and Development Then our enterprise will falter and we will lose forward momentum, causing a slowdown vs. competitors If software developers are not prepared for changing requirements and SW inflation is not contained Then the software development team will miss deadlines, and 3 3 Transition Indicators Unclear failover process Poor performance in testing Local power gens fail to sync Failure to identify SW solution Failure to demonstrate integrated system Failure to develop a marketing strategy, Lack of buyer initiated contacts Failure to identify SW solution, missing deadlines, Failure to demonstrate integrated system Mitigation Strategy Carefully detail and document failover process Identify and rule out known past failure modes Do testing; work with vendors to fix firmware Research company capabilities, engage potential internal contacts and develop management and control functionality requirements Prepare a budget that accounts for smaller funding and develop strategies to cut costs. Use Agile Development process for the quickly changing or less defined modules in

73 become a schedule bottleneck. If we fail to identify and comply with power and construction regulations at the development sites, Then we risk being shut down or fined. If our solution cannot scale sufficiently Then we will limit our market growth by providing a imperfect solution that is difficult to leverage If our provided battery and local power generation technology is not sufficient for customer power needs, Then they will run out of power too quickly, resulting in breach of contract and penalties. If we fail to develop the installation subcontractor relationships required for microgrid installation, Then we will have difficulty performing cost-effective installations, and may face delays in installation Lack of relevant reference docs and standards Lack of inspection schedule Requirement changes and the system needs more capacity, but we cannot do it Failure to meet local energy storage and generation requirements. Failure to initiate business relationships, Indefinite installation planning, equipment delays the SW solution. Periodically re-prioritize SW task list to incorporate new requirements. Identify internal expertise in construction and electrical laws and regulations Build the system with modularity in mind, so that additional capacity can be added easily Design our system to accommodate what battery technology is currently on the market and present to customer. Monitor business contacts and their capabilities Assure there are multiple sources and capability vs. install size, Choose vendors with

74 59 a history of reliability 9 10 If we fail to interact with the legacy public power grid community and identify compatible systems and standards, Then our solution may be incompatible with the public grid. If we fail to identify and win proposals for military microgrids, Then we will never get sufficient momentum to get started in the business Table 9. Risk Register Failure to specify interface requirements with the grid Failure to identify interface hardware required Failure to initiate proposals Failure to win proposals Develop library of commonly used industry hardware, Identify standards and regulations in the local community (San Diego, CA) first Fund the proposal process Identify and target key proposals to build capability

75 OVERALL DEVELOPMENT PROCESS Based on the nature of the system to developed, and the likely types of problems that need to be addressed, we selected an overall development process. The development process selected would be a plan-driven process for the overall project, but it would use an agile development process methodology for the quickly changing or less defined subsystems. The rational for the overall development process being plan-driven is that our initial microgrid installations will be for military customers that have existing power generation resources, and some established policies for what to do in the event that local generation is called for (often manual reconnection to local resources). The overall system functionality will be relatively well defined and constrained in scope to operate fixed critical installations for pre-defined timeframes. Also, a great deal of up-front planning and engineering is mandated due to the nature of an electrical grid project. The initial plan-driven process is also necessary because the project is a large project with many different disciplines acting together. As the functionality and capabilities of our core microgrid system expand to introduce additional functionality, the types of additional functionality will be more discretionary. Examples of additional functionality would be the ability to re-direct power while in an islanded (stand-alone, or isolated) mode, and the ability to schedule and offset usage based on rates. Since there is a relatively well defined core functionality that may be implemented for specific microgrid projects with military customers, and since we have

76 61 an existing plan-driven process that has been used and is familiar to us, that seems appropriate to use for specific, contract driven installations. As capabilities become more diversified, and the number and variety of external equipment assimilated into our architecture expands, new monitor and control functionality will be desired, and expanded development can be performed with a more agile process. The agile modules will allow us to more easily respond to changing requirements and to minimize the risk of employee turnover. An agile process will facilitate the process of continuous integration, adding components to the test setup as they are received and can be fully integrated. 4.7 CONCEPT MAPS FOR SYSTEM DESIGN During System design, a number of Concept Maps were developed to list concepts and their relationships in the system context. The top level Concept Map Diagram is presented below. Additional CMAPs, distributed throughout the document, serve to simplify and enumerate some of the key design considerations and factors considered during the design process.

77 Figure 14. Smart1Grid Top Level Concept Map 62

78 5.0 ARCHITECTURE DESIGN 5.1 AV-1: OVERVIEW AND SUMMARY INFORMATION The purpose of the AV-1 document amongst the Department of Defense Architectural Framework (DoDAF) method is to give the reader of the architecture a better understanding of the context in which the document was produced ARCHITECTURE PROJECT IDENTIFICATION Name This smart micro-grid architecture is the Northrop Grumman Smart1Grid Architect This architecture was developed by Northrop Grumman Spectrum Center Team, consisting of Thomas Mulligan, David Martin, Andrina Luczon, and Clark Anthony Organization Developing the Architecture This architecture was developed as a part of the Architecture-based Enterprise Systems Engineering (AESE) program at University of California, San Diego (UCSD) Approval Authority The approver of this document will be the AESE graduation committee headed by Professor Hal Sorenson Date Completed The Completion date for this document is August 23,

79 Level of Effort and Projected and Actual Costs to Develop the Architecture This project has currently taken one year for a team of four people to produce. The estimated direct cost is $123,992 which is the cost of tuition for the AESE program SCOPE: ARCHITECTURE VIEW(S) AND PRODUCTS IDENTIFICATION Views and Products Developed The DoDAF was used in the creation of the enclosed architecture. The following viewpoints have been developed and are enclosed in this document: AV-1: Overview and Summary Information (this section) AV-2: Integrated Dictionary (Appendix A AV-2: Integrated Data Dictionary) OV-1: High-Level Operational Concept Graphic OV-2: Operational Resource Flow Description OV-3: Operational Resource Flow Matrix OV-4: Organizations and Relationships OV-5b: Operational Activity Model OV-6c: Event Trace Description CV-1: Vision CV-2: Taxonomy CV-3: Phasing

80 65 CV-4: Capability Dependencies SV-1: Systems Interface Diagram SV-6: Systems Resource Flow Matrix SvcV-3b: Services-Services Matrix SvcV-4: Services Functionality Description SvcV-8: Services Evolution Description SvcV-10c: Services Event-Trace Description StdV-1: Standards Profile framework: Additional products have been created, which are not a part of the DoDAF Executive Summary Executive Presentation Time Frames Addressed This document serves as a proof of concept for an architecture. Upon acceptance of this document as a potential business pursuit, the architecture would need to be enhanced and further refined before commencing upon the implementation of the project. It is estimated one year would be required to create a prototype system, and the architecture would iteratively be refined during that process.

81 Organizations Involved This architecture is being developed for potential use by Northrop Grumman Corporation. Many strategic partners would be involved in the execution of a program based upon this architecture, but they are not being named here due to their proprietary nature PURPOSE AND VIEWPOINT Purpose, Analysis, Questions to be Answered by Analysis of the Architecture The purpose of the architecture is to provide a new viewpoint on how energy can be managed in a critical environment, and to provide a solution to the issue of energy stability. The architecture has been designed to give proposal writers and program directors a set of recommendations on how to implement a secure electrical system that meets the needs of Northrop Grumman s customers. In addition, an analysis of the architecture should provide business development managers with a starting point to go forward and capture large new business contracts From Whose Viewpoint the Architecture is Developed The architecture was developed predominantly from the viewpoint of the users of the management features of the energy grid. Energy grid managers, and energy grid operators were considered first since they will be the users with the most hands-on experience with the architecture. Everyday users of the energy provided by the grid have also been considered in the architecture.

82 CONTEXT Mission The mission of the Smart1Grid project is to use Northrop Grumman s strong integration capabilities together with our C2 and Situational Awareness (SA) expertise to provide energy surety to grid users Doctrine, Goals, and Vision The goal for Smart1Grid is to provide an architecture that is scalable and secure, and that will integrate with existing technologies for energy management while providing a more stable energy environment for its users Rules, Criteria, and Conventions Followed The architecture presented in this document was developed using the tools and techniques taught to us by the AESE program, including a significant portion being developed under the DoDAF guidelines. Governmental regulation regarding software security and electrical engineering practices will need to be adhered to during the iterative refining process of this architecture Tasking for Architecture Project and Linkages to Other Architectures Northrop Grumman was awarded a grant from the California Energy Commission (CEC) as a subcontractor to help create a microgrid architecture for an existing military base. While the architecture was not created cooperatively with the Smart1Grid, and the architecture does not depend on this one, there is a spiritual linkage to the CEC

83 68 architecture. Several major stakeholders are shared across the projects, and our mentor Arturo Villanueva was instrumental in winning the grant TOOLS AND FILE FORMATS USED models. Enterprise Architect was used to create the class diagrams and other UML Microsoft Word was used to create this document and the executive summary. Microsoft PowerPoint was used to create the executive presentation. CPNTools was used to create the executable model of the architecture. Microsoft Excel was used to do calculations such as NPV and NOV. 5.2 PRELIMINARY CONSIDERATIONS While developing architecture for Smart1Grid, we began by considering six issues that should be solved before developing an architecture 2. Below we identify those six issues and how we addressed them in order to start the development process for our architecture. 1. Primary Intent of Architecture The Smart1Grid architecture describes a smart microgrid architecture that will provide energy surety for forward operating bases and institutions by providing policy-based auto-failover and secure remote access. 2. Problem Statement (Problem to be Solved) 2 Professor Alex Levis, UCSD AESE Modeling and Simulation lectures, AY2012

84 69 Power grids as implemented today are not reliable and can cause problems for those who depend upon them for survival. The problem statement can be viewed in its entirely in Section Architecture Management Process We use the DODAF 6-Step Design Process, somewhat modified to allow a layered design process. The six steps are: 1. Determine intended use of the architecture 2. Determine scope of architecture 3. Determine data required to support architecture development 4. Collect, organize, correlate and store architecture data 5. Conduct analyses in support of architecture objectives 6. Present results in accordance with decision-maker needs. 4. Architecture Design Methodology We use an Object Oriented approach with a Service Oriented Architecture design methodology to define the set of data and control messages exchanged in the system. The SOA process includes a description of governance rules to implement an RBAC (Role Based Access Control) System. Security is defined in the context of the SOA architecture to ensure that power resources are not misused or compromised. 5. Architecture Description Language

85 70 We use UML as the architecture description language. The UML architecture description appears in subsequent sections. 6. Architecture Design Tool Enterprise Architect is the design tool that was used to generate the architectural description. 5.3 ARCHITECTURE DEVELOPMENT PROCESS The design of Smart1Grid was driven by the Architecture-based Enterprise System Engineering (AESE) curriculum. The system architecture was designed by identifying the goals of the system, then identifying the required architectural components necessary to achieve the desired functionality. An initial UML (Unified Modeling Language) model was created, and then Architectural views were created to be compliant with the DoDAF standard. As the system model was refined, the UML Model was updated to reflect a more detailed view of system requirements, and also updated to reflect the addition of functionality or updated methodologies, such as the inclusion of common design patterns that appropriately incorporated desired functionality. In the following sections, a description of the system architecture is presented, and that architecture is further detailed by presenting the resulting UML model constructed to reflect the design features and their relationship to each other in the context of the overall system.

86 PART 1: DEFINE THE PROBLEM SOLVED BY THE ARCHITECTURE Our approach was to define the purpose and scope of the smart microgrid architecture by investigating legacy systems and finding holes in the existing architectures. This allowed us to define the existing problems and propose an architecture that addresses the primary goals, while avoiding mistakes or shortcomings in existing legacy implementations. For example, we looked at the microgrid implementation at UCSD, and investigated what happened to the UCSD microgrid during the recent blackouts. We identified shortcomings with the UCSD implementation, and possible mitigating technologies that could have allowed the microgrid to anticipate the imminent blackout and successfully respond to it by islanding the system and subsequently re-connecting to the Public Grid PART 2: ESTABLISH AND DESCRIBE REQUIREMENTS Our approach to establishing and describing requirements was first to understand the operational need and develop a corresponding OV-1. We worked with our stakeholders to create an operational concept graph. Based on this, we were able to further elaborate our operational view by creating use cases. We reviewed our Use Cases with our stake holders and refined our user stories as a result PART 3: DEVELOP THE LOGICAL ARCHITECTURE DESCRIPTION Our approach to developing a logical architecture description was to create a Class Diagram. We created our class diagram and refined it to show collaboration activities and state machines. The first iteration of refinement included a review to

87 72 incorporate security throughout the architecture. Further iterations defined the operations and attributes of each class PART 4: DEVELOP THE PHYSICAL ARCHITECTURE DESCRIPTION Our approach to developing a physical architecture description includes mapping the physical entities to our logical model components. In order to do this, we document an electrical model of energy producers and consumers in a reference microgrid including the local and remote consoles, map these components to the logical model and refine as appropriate EXECUTABLE ARCHITECTURE An executable model is a way that the correctness of an architecture can be verified. The executable model derived from the Smart1Grid UML architecture provides a way to explore the model functionality and for validating some properties of the design through State Space analysis. The executable system model also allowed us to optimize system performance and eliminate non-functional areas of the architecture. The resulting model represents both a Structural Analysis for logical and behavioral aspects of execution. The resulting model also represents a Systems and Services model (see top level Services in the CPN model). The execution of the model is described here at the top level, showing the initial conditions in the model, and then the final state after running the model. A more detailed exploration of the executable model is contained in Appendix B Colored Petri Net (CPN) Executable Model. When the model is executed, messages are transferred through the system to represent the login of the user and subsequent operations to turn on the

88 73 generator and then provide updates to the User Console when the requested operation has been performed. Along the way, the user specified command is validated by user confirmation, and tested against an Electrical Model (to assure that the requested operation will not cause a critical fault in the system) before being implemented on the live microgrid. Finally, the user database is updated to attribute operations to the user, and the data is logged for archival purposes. See the figure below for initial model conditions: Here, the first Device Command is an input token initialized with a UserID=1, and a Device Command = (Power) Generator 1->On. Later on, when the Device command is extracted from the Controlled Power database, the operation will be associated with the kilowatt hours change represented by turning on Generator 1 (the database indicates 100 kwhr delta for that operation). The User Database is initialized with three (3) users (User=1, 2, 3), and three (3) unique User Keys (=101, 102, 103).

89 74 Figure 24. CPN Tools Model: Initial Conditions See the figure below for final model conditions: Figure 25. CPN Tools Model: Final Conditions See Appendix B Colored Petri Net (CPN) Executable Model for additional details about the CPN Tools Executable Model MEASURES OF PERFORMANCE AND EFFECTIVENESS In order to identify Measures of Performance (MOPs), we analyze expected system behavior and develop quantities to measure these attributes. An example of a measure of performance is the time it takes to transition from public power to local grid when a failure is detected. Another sample measure of performance is how much power the local grid can provide over a specific number of hours. In order to determine appropriate Measures of Effectiveness (MOEs), we analyze critical system performance and align this with customer mission requirements. Given the measure of performance to be able to supply power at 100% load for 24 hours, the measure of effectiveness is calculated by dividing the MOP by the customer requirement.

90 SYSTEM ARCHITECTURE Architectural views are provided for the Smart1Grid Architecture in the following sections. The views are expressed using the Department of Defense Architecture Framework (DoDAF) OPERATIONAL VIEWS Operational Views are enumerated in the table below, and are provided in the following sections. Type Model Description Graphic Class Diagram Class Diagram Matrix OV-1: High Level Operational Concept OV-4: Organizational Relationships Chart OV-2: Operational Resource Flow Description OV-3 Operational Resource Flow Matrix The High Level graphical/textual description of the operational concept The organizational context, role, or other relationships among organizations A description of the Resource Flows exchanged between operational activities A description of the resources exchanged and the relevant attributes of the exchange Activity Diagram OV-5b: The context of capabilities and activities (operational activities) and their relationship among activities, inputs and outputs Sequence Diagram OV-6c: Describes activity (operational activity). It traces actions in a sequence of events Table 10. Operational Viewpoint Diagrams

91 OV-1: Operational Concept The Operational View below provides an overview of the Smart1Grid concept. There is a local Command Console which directly monitors and controls a number of local grid areas. Local areas may be comprised of barracks, special function computer processing servers, command and control centers, hospitals, local power generation facilities, and local power distribution facilities which connect to the external power grid at a single point. Also shown is a Remote Command Console which has access to local grid data and control, and which may serve as a backup control facility, as well as providing external data on public grid conditions and alerts. External Grid External Grid Interface Remote Command Console GRID A1-2 Generator Facility Local Command Console GRID A1-6 GRID A1-1 GRID A1-3 Small Generators Electric Vehicles GRID A1-4 Solar PV Arrays GRID A1-5 Battery Storage Tracking Solar Figure 15. OV-1 Operational Viewpoint

92 OV-2: Operational Resource Flow Description The Operational Resource Flow below provides a view of the resource flows (messages) exchanged between operational activities. In this example, a specific scenario was selected to show resource flows: Management from BLOS (Beyond line of sight, or remote) Location. The following section lists the resource flows in a spreadsheet form, and a subsequent section will show additional Activity and Sequence Diagrams. Figure 16. Operational Viewpoint OV-2 Operational Resource Flow Decryption

93 OV-3: Operational Resource Flow Matrix The Operational Resource Flow Matrix below provides a description of the resources exchanged between operational activities and their relative attributes. Description Producer Consumer Perf Security ID Name Resource Activity Resource Activity Time Protection 11 RemoteRequest AdminGUI ExtCmd ESB ExtCmd 1 Secure Sec 12 AuthRequest ESB Authorization AuthSvc Authorization 1 Secure Sec 13 AuthConfirm AuthSvc Authorization ESB Authorization 2 Secure Sec 14 AuthRemRequest ESB Authorization RemCfg Authorization 1 Secure Sec 15 AuthRemConfirm RemCfg Authorization ESB Authorization 2 Secure Sec 16 SessionDesc ESB CreateSession EnergyMgr CreateSession 1 Secure Sec 17 SessionDesc EnergyMgr RouteSession AdminGUI CreateSession 1 Sec Secure Table 11. Operational Viewpoint OV-3 Operational Resource Flow Matrix

94 OV-4: Organizations and relationships The Organizational Relationships View below provides an overview of the major organizational entities (and services) and how they relate to each other. Figure 17. Operational Viewpoint OV-4 Organizations and relationships

95 OV-5b: Operational Activity Model The Activity Diagram below provides a view of the state transitions for a selected activity: Management from BLOS (Beyond line of sight, or remote) Location. Figure 18. Operational Viewpoint OV-5b Operational Activity Model

96 OV-6c: Event Trace Description The Sequence Diagrams View below provides an example of specific operational activities supported by the Smart1Grid Architecture Management from BLOS (Beyond line of sight, or remote) Location. Figure 19. Operational Viewpoint OV-6c Event Trace Description

97 CAPABILITY VIEWS Capability Views are enumerated in the table below, and are provided in the following sections. Type Model Description Text CV-1: Vision The overall vision for transformational endeavors which provides a strategic context for capabilities descried, and a high level scope Figure Matrix Figure CV-2: Capability Taxonomy CV-3: Capability Phasing CV-4: Capability Dependencies A hierarchy of capabilities which specifies all the capabilities that are referenced throughout one or more Architectural descriptions The planned achievement of capability at different points in time or during specific periods of time. The CV-3 shoes capability without regard to performer and location solutions The dependencies between planned capabilities and the definition of logical groupings of capabilities Table 12. Capability Viewpoint Diagrams

98 CV-1: Vision The overall vision for Smart1Grid is to provide an architecture that is scalable and comprehensive to support existing technologies for energy management based on information to return economic benefits as well as strategic and environmental advantages. The goal is to have the capability to implement locally controlled microgrid units which are capable of operating normally from an external public grid, but also capable of operating independently when there is a disruption to the public grid. The local grid should be capable of on-demand allocation of both generation resources and consumer applications. The local grid should be capable of connecting to other local grid elements to share resources to form a scalable local grid when additional resources are available. A remote control capability is provided for backup, and to enhance the functional of the local grid by providing public grid health updates, and also to provide external cyber-monitoring of the grid.

99 CV-2: Taxonomy The taxonomy for Smart1Grid capabilities is shown in the figure below. Figure 20. CV-2 Capability Viewpoint Taxonomy

100 CV-3: Phasing The overall phasing for Smart1Grid Deployments is shown in the table below. Staged Deployments Stage 1 -Military Market Military Base Smart-Grid X X FOB Smart-Grid Install X X Stage 2 -Government & Org First-Responders Smart-Grid X University Smart-Grid Municipal Smart-Grid Stage 3 -International Org Market Maquiladora (Bus. Park Area) Stage 4 -Industrial Market Individual Corporate Grids Table 13. CV-3 Capability Viewpoint Deployment Phasing X X X X

101 CV-4: Capability Dependencies Capability Dependencies for Smart1Grid is shown in this diagram. Figure 21. CV-4 Capability Viewpoint Dependencies

102 SYSTEMS VIEWS Systems Views are enumerated in the table below. Type Model Description Figure Table SV-1 Systems Interface Description SV-6 Systems Resource Flow Matrix The identification of systems, system items and their interconnections Provides details of system resource flow elements being exchanged between systems and the attributes of that exchange Table 14. Systems Viewpoints

103 SV-1: System Interface Diagram A system interface diagram for Smart1Grid is shown in the diagram below. deployment SV-1-initial Grid Management System Energy Manager Infrastructure Serv ice Energy Manager Policy Manager Energy Analytics ESB Datastore Logger Security Grid Operator Control and Display Authentication User System System Command and Config Display Figure 22. SV-1 Systems Interface Diagram - Initial

104 89 The System Interface Diagram was further flushed out to support the resource flow. deployment SV-1 - details Grid Management System Infrastructure Serv ice Policy Manager Authentication Security K5-5.2: Energy Prioritization Message K5 ; 5.1: Device Control Message ESB K6-6.3: Analytics Report K6-6.2: Device Status Report K6-6.1: System Status Report K4-4.1: Energy Consumption Message K4-4.2: Energy Generation Message K1-1.1: Command Message K1-1.2: Config Message Energy Manager Energy Manager K3-3.1: Log Command Message K7-7.1: Request Analytics K2-2.1: Analytics Report Message User System Grid Operator Control and Display System Command and Config Hardware Controller Logger Energy Analytics Analytics Engine Datastore Figure 23. SV-1 Systems Interface Diagram - Detailed SV-6: Systems Resource Flow Matrix Systems resource flow matrix is identified below. Description Producer Consumer Interface ID Data Exchange ID K1 1.1 Name User Command Message Sending System System Command and Config System Function Display system status, accept user commands Receiving System Grid Management System System Function Accept commands from system services and farm to bus for subscription by other services

105 90 K1 1.2 K2 2.1 K3 3.1 K4 4.1 K4 4.2 K5 5.1 K5 5.2 K6 6.1 User Config Message Analytics Data Message Log Command Message Energy Consumptio n Message Energy Generation Message Device Control Message Energy Prioritization Message System Status Report System Command and Config Analytics Engine Grid Managemen t System (ESB) Energy Manager Energy Manager Grid Managemen t System (ESB) Grid Managemen t System (ESB) Grid Managemen t System (ESB) Display system status, accept user commands Analyze energy data - both consumed and generated. Allows operator to make prioritization decisions, simulation scenarios Accept commands from system services and farm to bus for subscription by other services Manage energy consumption, generation. Responsible for control of hardware devices Manage energy consumption, generation. Responsible for control of hardware devices Command from ESB to control a device Command from ESB to change power prioritization - can be based on user input or automation Responsible for managing services, accepting commands and farming out to appropriate Grid Management System Grid Management System (ESB) Logger Grid Management System (ESB) Grid Management System (ESB) Energy Manager Energy Manager System Command and Config Accept commands from system services and farm to bus for subscription by other services Accept commands from system services and farm to bus for subscription by other services Allow services to log system events Accept commands from system services and farm to bus for subscription by other services Accept commands from system services and farm to bus for subscription by other services Manage energy consumption, generation. Responsible for control of hardware devices Manage energy consumption, generation. Responsible for control of hardware devices Display system status, accept user commands

106 91 systems/service s K7 7.1 Device Status Report Analytics Report Request Analytics Grid Managemen t System (ESB) Grid Managemen t System (ESB) Grid Managemen t System (ESB) Responsible for managing services, accepting commands and farming out to appropriate systems/service s Responsible for managing services, accepting commands and farming out to appropriate systems/service s Responsible for managing services, accepting commands and farming out to appropriate systems/service s System Command and Config System Command and Config Analytics Engine Table 15. SV-6: Systems Resource Flow Matrix Display system status, accept user commands Display system status, accept user commands Analyze energy data - both consumed and generated. Allows operator to make prioritization decisions, simulation scenarios SERVICES VIEWPOINTS Services Viewpoints are enumerated in the table below. Type Model Description List Activity Diagram Timeline SvcV-3b: Services- Services Matrix SvcV-4: Services Functionality Description SvcV-8: Services Evolution Description The Relationships among services in a given Architectural Description. It can be designed to show relationships of interest (e.g. service-type interfaces, planned vs. existing interfaces). The functions (activities) performed by services and the service data flows among service functions (activities). The planned incremental steps toward migrating a suite of services to a more efficient suite, or toward evolving current services to a future

107 92 implementation. Sequence Diagram SvcV-10c: Services Event-Trace Description Used to describe services functionality, it certifies refinements of critical sequences of events. Table 16. Services Viewpoints

108 SvcV-3b: Services-Services Matrix The Services-to-Services Matrix Key is shown in the table below. The key explains the symbols used in the Services to Services Matrix. Table 17. SvcV-3b Services-Services Matrix Key

109 94 The Services-to-Services Matrix is shown in the figure below. Table 18. SvcV-3b Services-Services Matrix

110 SvcV-4: Services Functionality Description The Services Functionality Description is shown in the figure below. Figure 24. SvcV-3b Services-Services Matrix

111 SvcV-8: Services Evolution Description The Service Evolution Description is shown in the figure below. Figure 25. SvcV-8 Services Evolution Description

112 SvcV-10c: Services Event-Trace Description An Event-Trace Description for Smart1Grid is shown in the diagram below. sd SvcV-10c :User Service :Authentication Service :Security :Remote Config :Policy Manager :Energy Manager :Infrastructure Service :Logger :Datastore UserLogin() SecureConnection() SecureConfirmed() UserAccess() AccessList() UserConfirmed() LoginLog() StoreData() AccessGranted() PowerStatusQuery() PowerQuery() PowerStatus() LogQuery() StoreData() Figure 26. SvcV-10C Services Event Trace

113 STANDARDS VIEWPOINT Standards Viewpoints are enumerated in the table below. Type Model Description List StdV-1 The listing of standards that apply to solution elements Table 19. Standards Viewpoints

114 StdV-1: Standards Profile The Standards Profile is shown in the figure below. Standards Viewpoint StdV-1 Standards Profile IEEE Guide for Smart Grid Interoperability of Energy Technology and Information Technology Operation with the Electric Power System (EPS), and End-Use Applications and Loads IEEE Guide for the Design, Construction, and Operation of Electric Power Substations for Community Acceptance and Environmental Compatibility. IEEE Recommended Practice for the Transfer of Power Quality Data. IEEE Guide for Electric Power Substation Physical and Electronic Security. IEEE Guide for Design, Operation, and Integration of Distributed Resource Island Systems with Electric Power Systems. IEEE P Recommended Practice for Smart Grid Communication Equipment -Test methods and installation requirements NFPA 70: National Electric Code - The NEC addresses the installation of electrical conductors, equipment, and raceways; signaling and communications conductors, equipment, and raceways; and optical fiber cables and raceways in commercial, residential, and industrial occupancies. IEEE Set of standards that enable wireless LAN computer communication. IEEE C Guide for Synchronization, Calibration, Testing, and Installation of Phasor Measurement Units (PMUs) for Power System Protection and Control openadr Open Automated Demand Response is an open source communication standard geared towards demand response applications within smartgrids. Table 20. StdV-1 Standards Profile

115 UML MODEL ARCHITECTURE The UML model for Smart1Grid was documented using Enterprise Architect. We took a Service Oriented Architecture (SOA) approach to solving this problem, based on the Rich Services Architecture (RSA) 3 described in class. This provides a way for us to create a rich environment for the data, and allow many ways to process and view the data. The RSA also enables our ability to create a policy service that will contain the rules for the behavior of the system, which will enable the system to automatically respond to changing conditions on the electrical grid USE CASES Use cases serve as a means for discussion about system functionality with users, and provide a mechanism to show how the system architecture components interact with each other to provide expected functionality. As a part of the architecture development process we created nine core use cases to help direct our implementation, and to ensure that we address specific requirements in the design. Cases. The use cases that were created are presented in detail in Appendix C Use 3 Professor Ingolf Krueger, UCSD AESE Patterns for Enterprise Architecting lectures, AY2012

116 OVERALL CLASS DIAGRAM The Final Overall Smart1Grid Class Diagram is presented below.

117 Figure 27. Smart1Grid Overall Class Diagram 102

118 ENTERPRISE SERVICE BUS The Enterprise Service Bus (ESB) is the heart of system, routing messages to the appropriate services and intercepting messages, all based upon the policies that are setup by the grid manager in the policy management engine. The ESB class diagram is depicted below. Figure 28. Enterprise Service Bus

119 5.5.4 CLASS DIAGRAM GLOSSARY Listed below is a glossary of key terms used in the class diagram. 1. Energy Manager This is the brains of the energy system. It will turn power generators on and off as necessary, redirect power to high priority areas, shut off power from the external grid when there is an anomaly, and island power sources that are misbehaving. 2. Policy Manager Keeps track of the policies of the system. Allows for adding/deleting policies and queries on whether certain policies exist. 3. Logger The logger will act as a constant listener to data that is present in the system, and will log all data that matches the policies of the system. 4. Datastore All of the log data will be stored in here. This could be a Time Series database to minimize the amount of data required. 5. ESB The Enterprise Service Bus to allow services to be accessed, and messages/data to be routed to the appropriate place. viewed. 6. Dashboard GUI A user interface where the current state of the system can be 7. Administration GUI A user interface where policies can be viewed/managed, and power can be managed manually. remotely. 8. Remote Config A service to allow an external entity to log in and manage 104

120 User Service Parent class for a service that will be accessed from the operator s side. 10. Infrastructure Service Parent class to services that are used to support the system in its operation. changes. 11. Authentication Service Service to allow only appropriate people to make capabilities. 12. Power Generator This is a parent class for any type of power generation 13. Controllable Power The parent class for power generation entities that can be turned on and off at will to provide extra power when needed. 14. Gasoline Engine A specific type of power generation capabilities that can be turned on and off as necessary. 15. Bio Gas - A second specific type of power generation capabilities that can be turned on and off as necessary. Many more could exist depending upon the requirements of the customer. 16. Uncontrolled Power The parent class for power generation entities that provide power continuously and cannot be turned on or off at will. 17. Solar Panel Array An array of many solar panels that provides connections to external sources. A panel by itself must be hooked up to an array to function. 18. Solar Panel An individual solar power generation panel that must be included in an array to function.

121 Wind Turbine A specific type of uncontrollable power that uses wind. 20. Power Storage Element This is the parent class for any type of power storage capabilities. 21. Battery A specific kind of power storage capability. 22. Fly Wheel Another specific type of power storage. There could be more depending upon customer requirements. 23. Controller Parent class for a generic electrical controller that provides communication capabilities. 24. Consumer Controller A sub-type of controller specifically designed to work with power consumption devices only, and will only allow power flow into the device. 25. Storage Controller A sub-type of controller specifically designed to work with power storage devices only. It will allow power flow in or out. 26. Generator Controller A sub-type of controller specifically designed to work with power generation devices only. Power will only flow out. electricity. 27. Power Consumer A parent class for all devices that exclusively consume 28. Building A specific type of power consumer. 29. Street Lights A specific type of power consumer. There will be many more in the actual system, these two are just used as examples.

122 Policy This is the policy data that will determine how the system runs. Services will consult the policies to determine the correct course of action CLASS CATEGORIES AND SUBSYSTEMS Although there are a large number of classes in the Smart1Grid Class Diagram, they can be sorted into categories to aid comprehension. The figure below breaks the classes down into subsystems with like objects being put into the same subsystem. The main subsystems that we created for this breakdown are Power Generation, User Services, and Storage. The Power Generation subsystem represents all of the different types of ways for energy to be supplied onto the grid. The User Services subsystem is the list of classes that are used by the operators of the system, both directly and indirectly. The Storage subsystem represents the different types of ways for energy to be stored from the grid for later use during a failover or low-power situation. Category Services Generation Class Name Energy Manager Policy Manager Datastore Logger ESB Dashboard GUI Administration GUI User Service Infrastructure Service Authentication Service Remote Config Security Power Generator Controllable Power Bio Gas

123 108 Storage Control Consumption Policy Gasoline Engine Uncontrolled Power Solar Panel Array Wind Turbine Solar Panel Power Storage Element Battery Fly Wheel Controller Consumer Controller Storage Controller Generator Controller Power Consumer Building Street Lights Policy Table 21. Breakdown of Classes by Subsystem

124 PACKAGE DIAGRAM The package diagram shows the groupings of related classes together, as well as the logical relationships between different areas of the system. pkg Package Diagram Consumption + Building + Street Lights + Power Consumer «import» Control + Consumer Controller + Generator Controller + Storage Controller + Controller «import» Storage + Battery + Fly Wheel + Power Storage Element Generation + Bio Gas + Controllable Power + Gasoline Engine + Solar Panel + Solar Panel Array + Uncontrolled Power + Wind Turbine + Power Generator «import» «import» Serv ices + Authentication Service + Datastore + Energy Manager + ESB + Infrastructure Service + Logger + Policy Manager + Remote Config + Security + User Service «import» «import» ui + Administration GUI + Dashboard GUI «import» policy + Policy Figure 29. Smart1Grid Overall Package Diagram

125 ACTIVITY DIAGRAMS An activity diagram displays a specific function of the system and shows the general control flow that occurs during the associated activity of the system Seamless Power Transition The following activity diagram shows how the system will automatically set itself to island mode when it senses that the external grid loses power. This prevents the system from having its energy drained to the main grid.

126 Figure 30. Activity Diagram: Seamless Power Transition 111

127 Management from a BLOS Location The following activity diagram shows how the system will allow remote administrative users to login to the system and run certain control tasks, as well as view diagnostic and analytics information. Figure 31. Activity Diagram: Management from a BLOS Location

128 Secure Access The following activity diagram shows a user trying to login to the system, and shows how the system reacts to authorized or non-authorized users. Figure 32. Activity Diagram: Secure Access

129 Power Priority Distribution The following activity diagram shows how the system automatically responds to changing energy usage on the grid, and can shut down low priority consumers in order to stabilize the grid in the event that there is not enough power for the current usage level. Figure 33. Activity Diagram: Auto Grid Manager

130 Local Management The activity diagram below shows a special case of local grid management for when the remote connection fails. An alert is posted to the local console and then the local manager is allowed to continue to manage the system in order to view diagnostics and see what happened with the lost connection. Figure 34. Activity Diagram: Local Management

131 SEQUENCE DIAGRAMS A sequence diagram shows specific services and how they interact with one another, including the order of operations Seamless Power Transition The Sequence diagram below shows how the Energy Manager, Policy Manager, ESB interact during the Seamless Power Transition activity. Figure 35. Sequence Diagram: Seamless Power Transition

132 Management from BLOS Location The Sequence diagram below shows how the Energy Manager, ESB, Remote Config and Administration GUI interact during the Management from BLOS Location activity. sd Seq-3.1-ManagementFromBLOS User :Remote Grid Manager :Remote Config :User Service AuthService : EnergyMgrService GenCtrl :Controller PrwGen_1 : Authentication :Energy Manager Controllable Power Service :Administration GUI login(id) sendauthreq(id) authenticate(id, ukey) initiatedevcmd(id, dcmd) returnsessionid(id, ukey) assignsessionid(id, ukey) senddevcmdtoctrl(id, dcmd) selpwrplan(id, pplanlist) assignpwrplan(id, pplan) ConfirmPwrPlan(id, ConfirmPlan, pplan) execonfplan(id, uconf, pplan) reqdevcmd(id, dcmd) devcmdreq(id, dcmd) selctrlopt(id, pplanlist) pendonconf(id, pplan) requserconf(id, pplan) relpendingplan(id, uconf, pplan) planreleased(id, pplan) runemodel(id, pplan)) runanalyticsl(id, pplan)) updategui(id, pplan) Figure 36. Sequence Diagram: Management from BLOS Location

133 Secure Access The Sequence diagram below shows how the Administration GUI, ESB, Authentication Service and Energy Manager interact during the Secure Access activity. Figure 37. Sequence Diagram: Secure Access

134 Power Priority Distribution The Sequence diagram below shows how the Energy Manager and Controllers interact during the Power Priority Distribution activity. Figure 38. Sequence Diagram: Power Priority Distribution

135 120 Local Management The Sequence diagram below shows how the Policy Manager, ESB, Energy Manager and Administration GUI interact during the Local Management activity. Figure 39. Sequence Diagram: Local Management

136 STATE MACHINE DIAGRAMS A state machine is used to model the states that system components can have, and how they transition from one state to another. They are useful to model the behavior of the system and how it responds to stimuli Authentication authentication. The state machine below shows how the states of the system during a request for Figure 40. State Machine: Authentication

137 Logging The state machine below shows the states of the system during a logging operation, and how it responds to logging requests. Figure 41. State Machine: Logging

138 Remote Access The following diagram shows the system during a remote management operation. It shows how the systems responds to remote login and management requests. Figure 42. State Machine: Remote Access DESIGN PATTERNS The Smart1Grid architecture was updated to include common design patterns that appropriately incorporated desired functionality.

139 124 The following patterns were identified for use in the Smart1Grid model, and the description includes some rationale for their selection. Enterprise Inventory This pattern allows the development of common enterprise standards for services such that they can be re-used and re-composed. The use of this pattern will allow for a common pattern for service communication to be established throughout our architecture. It further allows a consistent list of services to be utilized across this project and future projects. There are, however, tradeoffs associated with this design pattern. Significant upfront analysis is required. A single enterprise service inventory may be unmanageable. Finally, there is an impact and overhead associated with adopting common governance policies across the enterprise. This design pattern was compared against the Domain Inventory SOA Design Pattern. The Enterprise Inventory pattern was chosen to account for anticipated expansion of the enterprise to various boundaries and systems. Canonical Schema This pattern allows the development of standard data formats across services using common design standards. This is important as the system will integrate various hardware resources with various vendors. Transformation of this data to a common format minimizes the re-formatting of data and standardizes data formats. The tradeoffs associated with this design pattern include the time spent establishing common governance policies. This tradeoff will be mitigated up front with the tradeoff of using the Enterprise Inventory SOA design pattern.

140 125 Service Perimeter Guard This pattern uses an intermediate service at the perimeter of system network as a secure contact point for any external consumers that need to interact with internal services. This design pattern prevents the attack on a service or unintended access to internal resources. This security is crucial to the vitality of the Smart1Grid. The impact of this design pattern is the complexity and performance overhead necessary to establish and intermediary processing layer for external to internal communication. This design pattern was evaluated against the Message Screening SOA Design Pattern. This one was chosen in order to support external access to the system. The Message Screening pattern is not enough of a capability to keep the microgrid secure while allowing the Remote Access service to be on the network. Message Bus This is one of the core patterns that make up an ESB. Having a messaging bus allows different services to communicate with one another directly or to everyone via broadcasting, without having to know details on location or interface of the other services. Dynamic Router This pattern allows a dynamic way to route messages, by allowing the services (or a policy engine) to determine at startup how and why they will receive messages. The policies can be dynamically changed at runtime as well.

141 126 This design pattern was evaluated against the basic message router, and this one was chosen due to its extensible and configurable nature. The control flow of messages can be changed at runtime based on policies that will be set by the operator. Service Façade This pattern allows a common and consistent way to access services. Using an ESB means that all of the services will have a Service/Data Connector which is a façade around the service that will remain constant. Policy Centralization This pattern allows common policy types to be extracted and used across multiple services. This helps to prevent redundancy and encourage re-use, and can minimize the time required to add new policies. Most of our microgrid system will need to be policy based, and having a central policy engine and base policy definition is essential to managing the complexity of the system. This design pattern was evaluated against the anti-pattern of having no centralization. Since most components require some sort of policy definition and policy enforcement, the architecture complexity will grow exponentially without a centralized policy system. 5.6 SECURITY ARCHITECTURE The architecture was designed to reflect the security concerns of our DoD customers. Northrop Grumman is a leader in providing cyber security solutions and our

142 127 proven, proprietary, security technologies created within the company will be integrated into the final product. A PKI system will be set up as a part of the delivered product. Public Key encryption is used with the DoD acting as the Key Distribution Center (KDC) for our DoD customers, while Northrop Grumman would act as the KDC for our commercial customers. Grid operators, maintainers and administrators must obtain badges from the KDC that will be encoded with the user s PKI certificates. Messages sent from user consoles to the Enterprise Service Bus are encrypted to ensure confidentiality and a digest is also sent with each message to ensure data integrity during transit. In addition to secure authentication provided by certificates, our architecture includes a policy manager that allows for an authorization capability for users to perform activities in the system. The grid manager can set policies that would allow or prevent specific users or classes of users from performing specific actions in the system. The ESB will check the policy manager to ensure that the sender of a message has authorization to send data to a service before routing or intercepting the message. A Remote Guard is used at the connection point between the internal grid network and the external Remote Control service. The Remote Control service receives external authentication and command requests that will allow for a remote operator to control the system. The remote guard protects the network and prevents malicious communications from entering the network. External communications could come in through the internet, through a modem or radio transmissions depending upon the requirements of each specific customer, but will always be encrypted via SSL.

143 6.0 GOVERNANCE In order to proceed with the development of the Smart1Grid architecture, considerations were evaluated to ensure that proper governance is introduced into our development process. This will enforce a common and repeatable method to move forward with the architecture design that must be adhered to throughout the development process. 6.1 DECISION MAKING PROCESS The goal of the decision making process would be to develop a method of making sound decisions. For our team project to succeed, we need to have a model to follow to increase our decision quality and implementation effectiveness. Also by following these guidelines our group can avoid some of the pitfalls of poor decision making such as a company culture and leadership that doesn t encourage free thought. The decision making process for our group can be broken down into three high level categories: Structure, Process, and Function. The structure consists of who we want involved in the decision making process, the problem we are trying to solve, and the constraints associated with the progression. The process provides a means of coming to a solution. The function layouts out what we want to achieve. 128

144 129 Figure 43. Decision Making Process 5 5 Professor Hal Sorenson, UCSD AESE Patterns for Enterprise Architecting lectures, AY2012

145 STRUCTURE - MANAGERIAL LEVERS Managerial levers are organizational tools that, when used properly, can contribute to the successful development of an effective decision making process. These levers are present in all organizations to a varying degree, but it is important to focus on making sure they are well developed, and can work well together Composition Composition is a managerial lever that consists of who we want involved in our decision making process. The ultimate goal is to put together a team that gives us the greatest likelihood of getting our project approved and increasing the bounds of rationality of the group. The composition of the team for Smart1Grid project would be as follows: Stakeholders Stakeholder buyoff is imperative to any decision made on our project. The approval of these individuals will steer the direction of our development. Current Stakeholders: Mike Twyman (Vice President and General Manager of Defense Systems Northrop Grumman), Art Villanueva (Systems Engineering Manager) Subject Matter Experts Subject matter expertise will also be critical to have involved in the decision making process. Our project will require Power, Construction, and Software Engineering subject matter experts. By having these individuals present, the bounds of rationality of the group greatly increase.

146 131 Finance Department Representative A finance representative is important to have in order to provide opinions in regards to the financial viability of decisions made. This can be done by presenting the Net Present Value of our project. Contracts/Subcontracts Representative A Contracts representative helps steer decisions in the direction of where future business is headed and also makes sure that the proposed solution is not being done at another corporate branch. Law Representative By having a lawyer present during the decision making process, it assures that the legality of our project is in order. AESE Group Members The AESE group members will be driving the decision making process. The members will ensure that there is an active debate and resolve conflicts as they arise Context The context block addresses the problem that needs to be solved. The context for our project is that the existing legacy power grid is undependable, over utilized, and extremely vulnerable to both man-made and natural catastrophes. Our project provides a solution that can be utilized anywhere that there is a need for reliable power Communication Communication is an essential component of a decision making process. Communication will be stressed throughout our decision making process. It s the means at which the bounds of rationality of a group is increased and is the cornerstone to

147 132 making sound judgments. If there isn t proper communication throughout our process, our project will fail PROCESS - KEY QUESTIONS As a part of our decision making process we incorporate a list of key questions that must be asked. Only once these questions have been answered satisfactorily can a definitive decision be made. The questions are: Do we have enough information to move forward with a decision? Does the context of the problem align with organizational goals? Has the problem been formulated in a well-structured manner? Has everyone voiced their opinion and understand the outcome to proceed with? Do we have the appropriate subject matter expertise present to make a decision? Have we questioned the assumptions made by the group? FUNCTION According to our system methodology, the decision outcomes can be viewed as functions. These outcomes deal with what our group wants to achieve. Our ultimate goal is to make quality decisions and implement them with great effectiveness. This is the last portion of our decision process which is obtained from a group consensus on a particular problem. For our project, a favorable decision outcome for on-going development would be an approval to move forward with an internal research and development project.

148 APPROACH TO BOUNDED RATIONALITY Bounded rationality is the concept that people do not make completely rational decisions, but instead make decisions that they think are rational based on the limited amount of information that they have. This is a problem when dealing with decision making in such a large problem domain since no one person has enough domain knowledge. The question of Bounded Rationality is approached from the context of the Smart grid enterprise architect, who must manage the formation of the product itself as well as developing new business opportunities and managing the product s expansion into different market segments. The enterprise is affected by limited information, cognitive limitations, and limited resources as it moves forward and increases in scope ISSUE: LIMITED INFORMATION The main issue related to limited information is that there is a lack of prior experience with the integration of microgrids in our company. This limited information on what to expect as a given project is engineered, deployed, and operated makes the deployment of each microgrid a learning experience. There are existing commercial microgrid integrators with prior experience that can fall back on a database of prior experience including past performance metrics and knowledge of where to expect pitfalls. On the other hand, there are relatively few examples of military microgrids, so this lack of specific experience is less significant as a barrier to entry.

149 Mitigation We started with an assumption that the first stage of microgrid integration (military fixed installations, FOBs Forward Operating Bases, and Tactical deployments) plays to our strengths as an integrator, and is therefore relatively low risk while facilitating entry into the business. Lack of specific experience with microgrid integration undermines this assumption and represents an early-stage issue that could derail further progress. As such, this limited experience and limited knowledge of the business should be mitigated by research into existing installations. Lack of industry experience (and the associated lack of business information) can be mitigated by selection of strategic partners with microgrid experience - if not as integrators, then as microgrid technology providers. We have already begun to collect information on microgrid technology providers by examining web articles on microgrid construction projects, and by going to trade shows (at the San Diego Convention Center) and military-industry conferences (such as the SAME Conference at UCSD). Examples of research into technology and capability providers include: Construction Companies - Identified and working with a Southern California construction company on the California Energy Commission project. A manager at the construction company is a stakeholder. Supervisory Control and Data Acquisition Technologies - Johnson Controls, Honeywell, GE, etc. Microgrid design and control Software providers - Power Analytics, (Vs ETAP)

150 135 Database Technologies and management software - OSI Soft, Veridity Microgrid electronics equipment providers - Phasor Measurement Units Microgrid Communications - Power line comms, Wireless Comms, Sat Comms. Microgrid power generation providers - Solar Turbines, ISSUE: COGNITIVE LIMITATIONS The problem with Cognitive Limitations is not lack of information, but too much information. In this dynamic field, the amount of information on planned capabilities, projected benefits, research efforts, standardization efforts, etc. is vast. There is so much information available on existing projects, mandates, and standards that it is difficult to narrow down the scope of research and focus on sources of information that may enhance our offering Mitigation We need to prioritize the information we collect and focus on information that represents important sources which are relevant to our own enterprise, or represent differentiators. One strategy would be to rely on the integration of public industry providers for electrical grid construction, and focus on the integration and necessary development of internal technologies that facilitate our entry into the business in the first place. Internal capabilities are networking capabilities, Communications, Cyber security, Command and Control centers, and Network Gateway software. For example, we locally develop tactical display software that includes geographic display of tactical elements, supporting real-time command and control. This software (C2PC, GCCS-J and Agile

151 136 Client) facilitates the display of tactical information to the war fighter and integrates with other systems to implement command and control. Existing systems should include (but currently lack) an integrated power asset situation display, and any associated command and control capability. The introduction of these features into the tactical display and command structure should be considered an inevitable extension of existing functionality, and therefore investment in and development of these capabilities are warranted on their own. We should take advantage of the synergy by promoting the development of these capabilities as supported within the context of our project. We also need to focus attention to critical core capabilities such as reliable failover, coordination of our microgrid with the public grid, and the scalable aspects of the grid, particularly those aspects of the architecture which support microgrid development from small grids up to large country-sized federations of grids. In summary, we should focus on internal value-added capabilities as well as critical core capabilities, and avoid diffusing our attention by trying to incorporate every technology we can think of. The inclusion of additional capabilities should be addressed by the application of our cognitive abilities on the issue of a versatile architectural description ISSUE: LIMITED PROCESSING RESOURCES There could be two ways to think about limited processing resources in the context of the Smart1Grid project; limited personnel for any given project (driven by affordability, and mitigated by division of labor), or limited processing resources to support microgrid functionality (mitigated through our architectural selection of an event-

152 137 driven service bus and supported functionality such as automated control responses which provides scripted responses, freeing up the system operator to consider power reallocation decisions). We will respond to limited personnel since that is already an enterprise-limiting issue. We have recently been awarded with a CEC (California Energy Commission) grant to develop a microgrid test bed, working with military partners. Now our stakeholders are looking for us to contribute an architectural description, but there is very limited resources (funding) to support the development of architecture. This test bed represents a project resource that can be used as a demo, concept validation, and experimentation with technologies. The personnel issue with the test bed is not really the same as the developmental issue of a microgrid business enterprise, but it highlights the necessity to have a plan in place for allocating responsibilities once business is captured for the subsequent need to execute on an implementation. In particular, the prototype microgrid integration does not have to be the scalable integration process we would like to define through the specification of a re-usable architecture and business plan Mitigation The primary mitigation here is the division of labor by factoring the decision making process into relatively independent subsystems, and designing the subsystems such that they have minimal concern with the other subsystems. We need to partition the microgrid business plan such that the integration of a microgrid may be managed by a core team that leverages our existing architecture, along with the incorporation of specific customer resources, capabilities, and constraints. It is unrealistic to think that a given

153 138 microgrid integration project will have a long planning stage, or involve the prolonged participation of a large number of engineers. The strategy is to factor the development into stages with appropriate responsible parties such that we can step through an integration project dependably without costly delays. For example, the integration process may be broken up as follows: 1. Conception Phase: Customer interfaces with NG Sales Manager to identify project requirements, including microgrid size (demand in Megawatts), geographic area, existing power resources (power generators, renewable resources, storage, etc.), existing electrical infrastructure (local power distribution center, control systems, automation). 2. Contract Management Phase (starts): Subcontracts let to engage required service implementers. Internal development engineers engaged and scheduled. 3. Planning Phase: Principal Electrical Engineer develops electrical concept, system schematics. Principal Network Engineer develops network plan and cyber security plan. Principal Construction Engineer (subcontractor) develops facility layout and new construction plan. 4. Construction Phase: Principal Construction Engineer engages in building phase. Network infrastructure is updated with functionality to support microgrid information and control needs. Electrical contractors install electrical equipment. 5. Testing Phase: Principal Test Engineer manages process whereby completed microgrid is put through a series of (standardized) tests and certifications.

154 Handoff Phase: Specialist in customer training and support leads customer handoff such that customer is trained and capable of sustaining operations. 7. Sustaining operations phase: Customer liaison appointed to manage account for maintenance and upgrades

155 7.0 CONCLUSION / PATH FORWARD Venturing into the smartgrid market presents a huge opportunity for Northrop Grumman. While the need for energy surety is only getting greater (smartgrid market is projected to be $767 million for stationary military bases and roughly $4 billion for the private sector by 2017), 6 there is still no clear leader in the arena. This current situation will not last long as competitors see this same opportunity. Fast and pervasive action must be taken now to ensure Northrop Grumman becomes a future energy leader. Smart1grid wants to be a major contributor in the entrance to this new market. The architecture that was defined above could be used as an essential design document for the new business capture. We see there being steps that still need to be taken but the framework has already been developed. The path forward is as follows: Smart1Grids path forward: Integrate energy dashboard to better fit the vision of our project. Develop Prototype that can be shown to present and future customers. Refine and expand requirements to further meet customer needs. Refine architecture to be more specific to relative business capture. Examine the possibility of integrating Agile Client into solution. 6 Asmus, Peter and Lance Legel. "Military Microgrids: Aggregation Platforms to Secure Mission-Critical Loads and Achieve Net Zero Energy, Renewable Energy, and Demand Response Goals Pike Research. 3Q Print. 140

156 APPENDIX A AV-2: INTEGRATED DATA DICTIONARY AESE AV BLOS C2PC C3I CEC CPN CV DIV DoD DoDAF ESB GCCS-J ICS KDC MOE MOP NGIS NOV NPV OV Architecture-based Enterprise Systems Engineering All Viewpoint Beyond Line Of Sight Command and Control Personal Computer Command Control Communications and Intelligence California Energy Commission Colored Petri Net Capability Viewpoint Data and Information Viewpoint Department of Defense Department of Defense Architectural Framework Enterprise Service Bus Global Command and Control System - Joint Integrated C3I Systems Key Distribution Center Measure of Effectiveness Measure of Performance Northrop Grumman Information Systems Net Option Value Net Present Value Operational Viewpoint 141

157 142 PKI RSA SA SAME SOA SSL StdV SV SvcV UML Public Key Infrastructure Rich Services Architecture Situational Awareness Society of American Military Engineers Service Oriented Architecture Secure Sockets Layer Standards Viewpoint Systems Viewpoint Services Viewpoint Unified Modeling Language

158 APPENDIX B COLORED PETRI NET (CPN) EXECUTABLE MODEL B.1 MODELING METHODOLOGY A methodology was followed which allowed conversion from the system architecture represented in UML to the Executable model using CPN Tools. That methodology provided a straightforward method for generating a CPN model as long as the UML model was first updated with some stylistic guidelines as described in this section. B.2 STYLISTIC UPDATES TO THE SOURCE UML MODEL The Figure below provides an overview of the methodology used to stylistically transform the initial UML model into an executable CPN model. The methodology is derived from the instructions provided by Professor Alexander H. Levis in the AY2012 AESE course. First, the Classes in the UML model were updated such that association classes were used for all associations. These association classes were subsequently updated to contain data attribute values representing messages being transferred between the classes. 143

159 144 Figure 44. Stylistic Update #1: Using Association Classes Second, the Classes in the UML model were converted such that class attributes were separated from class operations. This update results in parent classes that contain only operations; the attributes are relegated to child classes. Those child classes with attributes may then be representative of message data to be transferred between the parent classes. Figure 45. Stylistic update #2: Seperating Class Attributes from Operations

160 145 B.3 MODEL TRANSFORMATION - DATA DECLARATIONS The Data Declarations are constructed from the class diagrams. The association classes generated by the stylistic updates may then become colorsets in the CPN model (which is a product of the attributes in the association class). Variables are defined for each attribute in the classes, and then composite colorsets are defined which include a collection of attributes. Composite colorsets are products of attributes, and represent messages that are passed around the system. An example is shown below. Figure 46. Data Declaration Example: Colorset Definitions

161 146 B.4 MODEL TRANSFORMATION - OPERATION DEFINITIONS Operation Definitions are also mapped to the cpntools model. The Operation Mapping figure below shows the mapping to from Operations in the UML to operations in the CPN Tools model. Figure 81. Operation Mapping Example: UML Model to CPN Tools Model B.5 MODEL TRANSFORMATION - IMPLEMENTATION OF RULES Rules are represented as substitution transitions on the sub-pages of the CPN Tools model. The figure below shows an example of a rule instantiation. In this example, the User must Confirm" execution of the planned operation before execution can proceed. The logic to require User confirmation in the overall system operation allows the User to request an action, and then the system can perform the following actions before implementing the power-altering update: 1. Examine current hardware status

162 Run the proposed operation on an Electrical model to verify the planned operation will not result in a power surge or system failure prior to running the User requested command 3. Provide feedback from Data Analytics on alternative options (such as utilizing existing Green capacity or stored before turning on another generator, or possibly using cheaper Public Net power first for the current requirements). If these checks and verifications are acceptable to the User, the User can then confirm execution of the planned operation. Figure 82. Implementing Rules in the CPN Tools Model

163 148 B.6 INITIAL MARKINGS The CPN Tools model must be primed with input token which will subsequently drive the model to operate under different conditions based on the input data selected. The model can be executed and output tokens are investigated to observe that the model logic executed correctly for the initially supplied data tokens. An example of initialized input tokens is shown below. Figure 83. Initialized tokens in the CPN Tools Model B.7 EVALUATION OF THE ARCHITECTURE WITH AN EXECUTABLE MODEL The CPN Tools model was run using typical input operations to turn on various power generators. The sequence of steps through the model is illustrated in figures following this paragraph. The execution of the executable model allows the architecture to be debugged, and offers an opportunity to view the logical layout and interconnections. Manipulation of the CPN Tools model allowed the architecture to be vetted by user

164 149 sample runs, and resulted in adjustments to the architecture, reflected in analogous updates to the base UML model. Figure 84. CPN Tools Model Running Sub-Net Figure #1 (Representative) The CPN Tools model was run using a variety of in/out conditions to verify correct operation under various operating conditions. In the figures below, three (3) particular runs are shown, with the input command shown and the resulting output from the model.

165 150 Figure 85. Multiple Runs using various input conditions: Case 1: Gen1 On Figure 86. Multiple Runs using various input conditions: Case 2: Gen2 On

166 151 Figure 87. Multiple Runs using various input conditions: Case 3: Wind3 On It can be seen that when the user selects various Controlled and Uncontrolled Power Generators to turn on, the selected generator is powered on, and the Administration GUI is updated to show the increased value in kilowatt hour capacity, and the operation is logged to the archival database to track historical system operations. As an additional, more complex example of model execution, the case below shows an execution of the model with multiple input tokens representing multiple device power operations. The input tokens show User 1 turning on generators 1 and 2, User 2 turning on The Wind Turbine, and User 3 turning off Generator 2. In the logic of the

167 152 model, User 3 is hard-coded to cancel the command, so that operation gets canceled, as will be seen in the output tokens. Input Tokens and Output Tokens: Figure 87. Multiple Power operations queued up as input tokens Investigating the output of model execution shows that generators 1 and 2 have been turned on, and they have expected outputs of 100 kwhr and 200 kwhr respectively. Wind Turbine3 is turned on with a 300kWhr capacity. Also noted is that User 3 started to turn off Generator 2, but cancelled the operation - resulting in a NoOp operation on the output, with no corresponding change in the power output.

168 153 B.8 CPN TOOLS GENERATED MESSAGE SEQUENCE CHARTS Message Sequence Charts (MSC) were generated based on the CPN Tools model operation. These were compared to the Sequence charts in the UML model, and differences were noted and adjusted in the base design to reflect the updated / optimized architecture. In the figure below, the sequence can be seen where the remote user is logging into the system, and then sending a command to a power generator to turn on the device (options include power On, Off, Standby, or Self Test ). Once the user is authenticated and allocated a session ID, the user s request is routed to the Energy Manager Service, which proceeds to orchestrate the execution of a planned power operation. First checking with the controller that the requested generator is available (a list of available options may be returned), then getting confirmation from the user to allocate the identified resource by confirming the intended operation (and routing the request to the identified resource among available generators). Then the Energy Manager performs a validation of the requested electrical operation by running the operation on a simulated electrical grid (using the electrical model aka EModel). If the power operation is validated by Modeling and Simulation (to validate that the requested operation is safe), the Energy Manager initiates the operation and runs analytics to analyze if the operation in the context of historical data and with respect to the economic implications of operations (possibly an alternative energy resource will be suggested). Finally, the Energy Manager Service will route the resulting operation to the Administration GUI for display (including a display of the last operation and the kilowatt hour capacity change to the system to show current total power sources and availability). It will also route the operation to the Logging Service for archival storage.

169 154 Figure CPN Tools Model Message Sequence Chart (MSC): Part 1 Figure CPN Tools Model Message Sequence Chart (MSC): Part 2 (Full)

170 155 B.9 FORMAL VERIFICATION USING THE STATE SPACE ANALYSIS The CPN Tools model was evaluated using State Space Analysis. This analysis can reveal deadlocks, infinite cycles, and maximum queue lengths. An example State Space Analysis for the Smart1Grid architecture is shown below. This is a case initialized with 3 pending operations, so the number of nodes and time required for analysis was high. Some dead transition instances (in the output below) indicate that the input tokens did not test all paths through the model, but such dead transition notices are dependent on the set of input tokens that are present when the State Space analysis is initiated. An exhaustive set of input token was also run to touch every path through the model (and it ran OK), but including comprehensive path coverage made the runtime too high for the State Space Model (so the State Space analysis was typically limited to a few input tokens).

171 156 Figure 49 CPN Tools Model State Space Analysis The main UML Model page and Sub-Pages are shown below. The main page, Tab=Smart1Grid, shows the overall system, with services and sub-systems allocated to sub-pages to provide a system-level view while hiding the complexity of sub-system implementation. The services and systems are color coded to aid in identification.

172 157 e Figure 90. CPN Tools Smart1Grid Model: Main Page

173 Figure 91. CPN Tools Smart1Grid Model: User Page 158

174 159 Figure 92. CPN Tools Smart1Grid Model: Remote Config Service Page Figure 93. CPN Tools Smart1Grid Model: User Service Page

175 160 Figure 94. CPN Tools Smart1Grid Model: Authentication Service Page Figure 95. CPN Tools Smart1Grid Model: Energy Manager Page

176 Figure 96. CPN Tools Smart1Grid Model: Generator Control Page 161

177 Figure 97. CPN Tools Smart1Grid Model: Power Generator Page 162

178 163 Figure 98. CPN Tools Smart1Grid Model: Analytics Engine Page Figure 98. CPN Tools Smart1Grid Model: Electrical Model Page

179 164 Figure 98. CPN Tools Smart1Grid Model: Administration GUI Page Figure 99. CPN Tools Smart1Grid Model: Logger Service Page

180 APPENDIX C USE CASES Nine primary use cases are presented below to illustrate some of the capabilities of the system. They were developed using the Cockburn Use Case Template 7. C.1 TRANSITION TO LOCAL POWER Goal In Context: In the event of a power anomaly, the Smartgrid shall transition to local power within x milliseconds. Scope: Level: Pre-Condition: Smartgrid Sub-Functionality The local power user must be using power on the Smartgrid during outage. Success End Condition: The Smartgrid seamlessly switches from public power grid to local power. Minimal Guarantees: Primary Actor: Trigger Event: Loss of power to local power user. Local Power User, Public Power Grid The LPU begins to use devices that require power while located on the Smartgrid. Main Success Scenario Step Actor Action Description 1 Local Power User The LPU begins to use devices that require power while located on the Smartgrid. 7 Cockburn, Alistair. Writing Effective Use Cases. Addison-Wesley, c Print. 165

181 Public Power Grid Local Power The PPG has a power outage. LPU receives alert that the Smartgrid was activated. Security Concern: Governance and Policy User Local Operator must have authorization to receive alerts. Addressed by Security Policy Management 4 Local Power User The LPU continues to use devices that require power without even noticing the outage. C.2 POWER CAPACITY Goal In Context: The Smartgrid shall be capable of providing (y) kilowatts over (z) hours. Scope: Level: Pre-Condition: Smartgrid Sub-Functionality The local power user must be using power on the Smartgrid during outage. Success End Condition: The Smartgrid provides (y) kilowatts over (z) hours of time while receiving no power from the public grid. Minimal Guarantees: Primary Actor: Trigger Event: Loss of power to local power user. Local Power User, Public Power Grid The LPU begins to use devices that require power while

182 167 located on the Smartgrid. Main Success Scenario Step Actor Action Description 1 Local Power User The LPU begins to use devices that require power while located on the Smartgrid. 2 3 Public Power Grid Local Power User The PPG has a power outage. LPU receives alert that the Smartgrid was activated. Security Concern: Governance and Policy Local Operator must have authorization to receive alerts. Addressed by Security Policy Management 4 Local Power User The LPU continues to use devices that require (y) kilowatts over (z) hours. C.3 REVIEW SYSTEM DIAGNOSTICS Goal In Context: The Smartgrid shall be able to be managed from a beyond line of sight location. Scope: Level: Pre-Condition: Smartgrid Sub-Functionality The remote grid manager must be in a beyond line of sight

183 168 location. Success End Condition: The remote grid manager successfully collects diagnostics from a beyond line of sight location. Minimal Guarantees: Primary Actor: Trigger Event: System diagnostics are desired by remote grid manager. Remote Grid Manager The remote grid manager turns on computer to collect system diagnostic logs. Main Success Scenario Step Actor Action Description 1 Remote Grid The remote grid manager turns on computer. Manager 2 Remote Grid Manager The remote grid manager connects to Smartgrid from remote location using web GUI. Security Concern: IT Security Remote Grid Manager must have proper authentication to log into Web GUI. Addressed by authentication services under IT Security Services. 3 Remote Grid Manager The remote grid manager collects system diagnostic logs. Security Concern: Governance and Policy Remote Grid Manager must pulls log in accordance

184 169 with company policy. C.4 UNAUTHORIZED USER DENIED ACCESS Goal In Context: Unauthorized user attempts access to the system. Microgrid system detects potential intrusion and denies access. Scope: Level: Pre-Condition: Success End Condition: Smartgrid Sub-Functionality Smartgrid is operational Unauthorized user is detected and denied access to the system Primary Actor: Trigger Event: External user: External user attempting access to system User attempts to login. Main Success Scenario Step Actor Action Description 1 External user External user enters information to gain access to system IT Security: Identity Services/Authentication Services Smartgrid must authenticate 2 Smartgrid Security system detects unauthorized user information 3 Smartgrid Security system denies access to system C.5 DETECT OVER USAGE AND SHUT DOWN SYSTEMS Goal In Context: Smartgrid monitors usage and shuts down system when over

185 170 usage is detected Scope: Level: Pre-Condition: Success End Condition: Trigger Event: Smartgrid Sub-Functionality Local system operational System shut down when over usage detected Detection of over usage Main Success Scenario Step Action Description 1 Smartgrid detects energy usage detects threshold Security Concern: Business Security Services Identity and Access Devices have ability to provide usage information 2 Smartgrid sends shutdown command to all devices Security Concern: Business Security Services Secure Systems and Networks Command to shutdown is received by intended devices 3 Smartgrid systems goes into standby mode C.6 SEND BIT TO LOCAL CONSOLE Goal In Context: Smartgrid sends period Built In Test data to Local Console

186 171 Scope: Level: Pre-Condition: Success End Condition: Minimal Guarantees: Primary Actor: Trigger Event: Smartgrid Sub-Functionality System operational BIT data received at local console Local console has the ability to display BIT Local User: User requesting BIT Devices are operational Main Success Scenario Step Actor Action Description 1 User User initiates Built In Test (BIT) for device x Security Concern: IT Security Services Identity Services/Authentication Services User has the ability to login and request BIT 2 Device Device provide BIT results to smartgrid 3 Smartgrid Smartgrid provides BIT results to screen C.7 SEND MEASUREMENT DATA TO LOCAL CONSOLE Goal In Context: Scope: Grid Hardware sends measurement data to Local Console Grid-Independent-Local-Cell Level: Subsystem goal

187 172 Pre-Condition: Success End Condition: System operational; normal operation logging information is accurately displayed on local console; any error or alert is flagged for local operator Minimal Guarantees: sufficient logging information is gathered, quickly evaluated, and archived Primary Actor: Trigger Event: Grid Hardware Local hardware interface unit obtains measurement reading from HW (e.g. electric current) Main Success Scenario Step Actor Action Description 1 Local Hardware Local hardware interface unit obtains measurement reading from HW (e.g. electric current) 2 Local Hardware Measurement is formatted and sent via Ethernet to local console (in local monitor station) Interface Unit Security Concern: IT Security Measurement data must be reliably transferred from Hardware Interface Units to log Addressed by Business Security Services

188 173 3 Local Measurement is evaluated against Min/Max values. Monitor Agent 4 Local Measurement exceeds specified max value Monitor Agent 5 Local Alert is generated at the local console Control Room Console Security Concern: Governance and Policy Local Operator must have authorization to respond to alerts and correct issues Addressed by Security Policy Management C.8 NO BLOS, LOCAL MANAGER REVIEW DIAGNOSTICS Goal In Context: Scope: Level: Pre-Condition: Local Grid Manager reviews diagnostics Grid-Independent-Local-Cell Subsystem goal Local system operational (and in Island mode); remote communications down Success End Condition: Safety scenarios developed and run during normal system operation to guarantee functionality Minimal Guarantees: Local systems responsive to local requirements even when there is no remote oversight

189 174 Primary Actor: Trigger Event: Local Grid Manager Local monitor station identified loss of connection with remote monitor station Main Success Scenario Step Actor Action Description 1 Local Monitor Local monitor station identified loss of connections with remote monitor station Agent 2 Local Control Local monitor station generates an alert that BLOS communications are down Room Console 3 Local Grid Local Grid Manager reviews system connectivity Manager 4 Local Grid Manager Local Grid Manager reviews health status of local system diagnostics C.9 AUDITOR COMPLETES CHECKLIST Goal In Context: Scope: Level: Pre-Condition: Auditor completes checklist Grid-Independent-Local-Cell Subsystem goal Local system operational and running

190 175 Success End Condition: Audit data generated, added to audit database and compared to other audits in the database Minimal Guarantees: Local systems must continue normal operation while supporting audit Primary Actor: Grid operator: Must support audits by having required information available and presentable Auditor: Required to intercede in normal operations to perform a complete audit in a timely manner Trigger Event: Auditor requests a system audit from Local Grid Manager Main Success Scenario Step Actor Action Description 1 Auditor Auditor requests a system audit from Local Grid Manager Security Concern: Business Security Auditor must have process to initiate inspections on local security managers Addressed by Business Security Services 2 Local Grid Manager 3 Local Grid Local Grid Manager generates audit reports at local station by running inventory and diagnostic tests Local Grid Manager transmits reports to auditor Manager