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Interoperable smart grid systems: Bridging legacy and future systems

Energy and infrastructure must play a leading role in world’s efforts to digitalize and decarbonize. But how can the sector solve the challenge of legacy equipment while bringing online the necessary renewables capacity and smart grid capabilities? Here, Alexander Punzenberger assesses the merits of potential solutions to boost interoperability.

Interoperable smart grid systems: Bridging legacy and future systems
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Integrating legacy infrastructure with modern renewables and digital systems is critical for achieving digitalization and decarbonization goals. However, the current patchwork of old and new technologies makes this challenging. Increasingly, operators and investors are recognizing that interoperability – the ability of different systems to seamlessly exchange and use information – is key to enabling the twin transition.

Where we are now: Brownfield dominates today’s energy infrastructure

Brownfield dominates in today’s energy infrastructure. Expensive primary equipment – such as switchgear, lines, and transformers – is designed to operate for decades. For companies that want to harness the benefits of digitalization, it isn’t commercially viable to resort to the cost-prohibitive strategy of rip and replace.

At the same time, national infrastructure operators must integrate modern storage and renewables generation capacity within the existing grid. Digital initiatives to support decarbonization – including demand response, dynamic pricing, microgeneration and e-mobility – must also be accommodated.

Of course, the integration of modern, digital assets isn’t only about decarbonization. Smart grids improve the visibility of system conditions and reduce the likelihood of error and hazardous situations – making safety another important driver to integrate new digital capabilities.
The result is a patchwork of old and new systems spanning different vendors, varied protocols and unstandardized data formats. Right now, the goal of interoperability seems a long way off.

Eyes on the prize: Interoperability promises improvements and efficiencies

At least $10 billion in annual savings. That’s the interoperability-derived savings potential that the GridWise Architecture Council has identified in the US electric power industry. Critics say this is a conservative estimate.
In Europe, too, there is recognition that smart grid interoperability can deliver efficiencies. The European Commission’s impact report for the Interoperable Europe Act cites up to €6.3 million annual savings for citizens and between €5.7 and €19.2 billion for businesses.

Interoperability is desirable in the Middle East and North Africa region, too. Efforts here are focused on establishing a pan-Arab electricity market, regional electricity grids and regional grid interconnection. The World Bank Group estimates that this kind of strategic coordination could save the region between $107 and $196 billion until 2035 – and there is little doubt that interoperability and standardization would be a significant contributor to this.

To date, however, interoperability in all regions remains fragmented – it is, as yet, an undeveloped capability of power systems globally. But the situation is changing. There is a mounting drive, especially in Europe and the US, with the Middle East following Europe’s lead, to settle on interoperability frameworks that can help accelerate sectorial digitalization and decarbonization while boosting safety, security, and efficiency.

What is interoperability? A multi-faceted concept

 Global energy infrastructure is a long way off the “plug and play” approach, as seen in other forward-thinking industries. This raises an important question: how can the energy sector learn from these examples of standardized, interoperable systems? To unlock its full potential, interoperability must go beyond simple data exchange and encompass several dimensions: 

  • Technical interoperability
    Devices and systems can exchange data via standardized protocols (e.g. IEC-based standards, open interfaces).
  • Semantic interoperability
    Data is described in consistent models so that different systems interpret it in the same way (e.g. Common Information Model).
  • Organizational/process interoperability
    Processes, roles, and responsibilities are designed in such a way that new digital functions can be used effectively and safely.

In Europe, frameworks such as the Smart Grid Architecture Model (SGAM) and initiatives by ENTSO-E have laid important foundations for improving interoperability in energy systems. EU policy initiatives, including the Clean Energy Package and the Energy System Integration Strategy, also highlight interoperability as a key requirement for a decarbonized and increasingly integrated energy system.

However, significant work remains to establish international standards and common frameworks that allow interoperability efforts to converge and be implemented consistently. 

Practical options to achieve interoperability

Until interoperability standards and governance models emerge, are agreed upon, and embedded, operators have a number of different strategies they can adopt to enhance interoperability and connect existing infrastructure with digital solutions.

Digitalizing critical nodes first

Instead of trying to update everything at once, efforts should focus on areas where transparency and automation deliver the greatest value. That means digitalizing critical nodes, such as substations, major feed-in points or heavily loaded grid sections.

This approach has been adopted by the SE Saudi Energy, which uses COPA-DATA’s zenon platform to upgrade critical elements of its infrastructure. Elektrodistribucija Srbije in Belgrade has applied a similar strategy with mobile substations, enabling faster responses in emergencies and supporting the reconstruction of existing substations within the grid.

The wrap and extend approach

Instead of “rip and replace”, the “wrap and extend” approach adds a digital layer to existing assets and systems. This layer connects different protocols, acquires data, enables modern visualization and analytics, and supports functions such as remote access or condition monitoring.

SE Saudi Energy applied this approach when upgrading its medium-high voltage grid in the southern provinces of ʽAsir, Al-Bahah, Jazan and Najran. By layering COPA-DATA’s zenon platform over remote legacy switchgear along overhead lines, the company reduced maintenance effort, improved worker safety, and increased grid reliability across this wide geographic area.

Introducing standardized communication and data models

This pragmatic approach focuses on gradually introducing standardized protocols and information models, as recommended by organizations such as NIST, ENTSO-E, CEN-CENELEC-ETSI and the EU Rolling Plans.

Salzburg AG followed this strategy by standardizing the control technology of its hydropower plants using COPA-DATA’s zenon platform. This enabled a unified system architecture and user interface based on IEC 60870-1-104, supporting secure and efficient data exchange over IP networks and faster responses in critical situations.

Designing OT/IT integration deliberately

Modern smart grids require a bridge to IT and cloud environments for analytics, AI, and new services. This allows new applications such as forecasting or optimization without compromising the operational layer.

A clearly defined OT/IT gateway or platform acts as a translator, enabling energy-specific protocols to interface securely with IT and cloud systems. This approach was implemented in the city of Weiz in Austria to create a future-ready platform integrating municipal organizations.

Worker safety: the role of digitalization and interoperability

As we’ve seen in the associated case studies, these four different approaches offer opportunities for operators to successfully integrate existing brownfield assets with new, digital technologies. As well as enabling the integration of modern renewables and low-carbon solutions, operators gain additional benefits – especially in terms of worker safety.

Better decision making through transparency

Digital smart grids provide real-time information on switching states, power flows, voltages, temperatures, alarms, and events – aiding risk assessment and decision making. Clear visualization and consistent alarms reduce workload and help prevent misinterpretation.

Digital interlocking and safe switching procedures

Modern control systems and smart grid platforms implement logical interlocks, four-eyes principles, and guided switching sequences. The combination of technical interlocks and clearly defined processes enhances the safety of work.

Event recording and analysis

Detailed event logging is a well-established tool to investigate incidents and near misses to improve safety measures in a targeted way. Data-driven analysis enables new insights into risk patterns and hazardous behaviors, supporting the transition to a learning safety management system that continuously adapts based on real operational data.

Cybersecurity as a basis for physical safety

Manipulation of switching commands or measurement values can cause direct physical hazards and must be protected against. A structured approach to system security and the protection of critical assets reduces the likelihood that attacks or misconfigurations can lead to dangerous situations in the field. For operators, this means that interoperability, cybersecurity, and worker safety must be planned and implemented together.

Increasing interoperability in the smart grid platforms of the future

While a fully interoperable energy ecosystem is still some way off, there are already practical approaches to improving interoperability. Interoperable smart grid platforms create a neutral, standards-based layer that connects legacy systems with new technologies and enables step-by-step digitalization without complex one-off integrations.

Interoperability will be a critical requirement for future energy systems. By choosing digital platforms that align with evolving energy standards and interoperability frameworks, operators can build a solid foundation for the next generation of smart grids – and prepare for emerging trends such as AI-driven control, edge computing, and increasingly decentralized energy systems.