Time to get smart with substation virtualisation and digitalisation

Key factors include grid stability, edge analytics, AI and cyber resilience – all while aligning with ambitious national targets for carbon neutrality.

In substations, hundreds of microprocessor-based intelligent electronic devices (IEDs) have already replaced thousands of conventional electrical devices as part of the digitalisation push, but this is just the start. In the future, with a software-defined architecture and virtualisation, these IEDs will see further consolidation into just dozens of high performance servers, with significant benefits for all stakeholders.

The global smart substation market is witnessing rapid transformation as power utilities modernise ageing grid infrastructure with intelligent digital solutions. The transformation includes IEDs, fibre optic communications and advanced monitoring software for smarter power management and distribution, with enhanced reliability and efficiency. 

Driven by rapidly increasing smart grid investment, the digital substation market is projected to experience considerable growth. In fact, Zion Market Research suggests growth from around US$8.15 billion in 2024 to around US$16.34 billion by 2034, exhibiting an impressive compound annual growth rate (CAGR) of approximately 7.2% in this period.

Time for change

Historical protection, automation and control (PAC) systems in substations require dedicated hardware, which limits choice by tying utilities to specific vendors. Scalability is a further issue, where introducing new functionalities frequently necessitates the use of extra devices, elevating cost and complexity.

Another challenge relates to lifecycle management. A diverse device landscape means managing a multitude of different skillsets, software iterations and potential weaknesses in data security. Slow adaptation can also prove problematic, where fixed firmware restricts responsiveness to evolving grid needs and emerging technologies.

Virtualized PAC (vPAC) overcomes these challenges through the introduction of a software-defined architecture, making it possible to migrate PAC functionalities from dedicated hardware to virtual machines running on centralised servers.

Primary substations, which serve as the key interface between the HV transmission network and lower voltage distribution network, are the initial target for these transformative projects. This is where vPAC technology can act as a key driver for the future evolution of substations, supporting their intelligent transformation ahead of growing demand for even smarter power grids.

As the word suggests, virtualisation means replacing physical devices with virtual ones, delivering an abundance of advantages in the process. These include better reliability, safety, security, resilience, manageability and edge analytics for real-time protection and control in power grid applications. Notably, the virtualisation of substation functions that run on a shared, open ecosystem architecture adds operational flexibility and helps overcome the limitations of previous data silos.

Proven reliability

While virtualisation is not a new technology, it can boast a proven track record as a reliable IT solution across an extensive list of industries. Today, the adoption of virtualisation in substation PAC applications is emerging fast, particularly where real-time performance is critical.

The potential for vPAC in substations first began gathering momentum around seven or eight years ago, when the industry commenced discussions on the potential for a software-defined protection and control system for utilities. With this approach it would become possible to replace physical siloed devices with virtual counterparts to simplify substation architecture considerably.

The application of vPAC is the critical starting point for any substation adopting a software-based strategy. In fact, Advantech, ABB and VMware have already collaborated on a vertically integrated vPAC solution for substation modernisation. The solution features multi-layer architecture: a hardware platform (Advantech servers), a virtualisation layer (VMware), and a software application layer (ABB). It allows for the consolidation of multiple PAC functions onto fewer physical servers.

The reasons driving the development of vPAC solutions centre on the significant number of benefits available to system stakeholders. Fully invested partners set to gain include TSOs, DSOs, system integrators for substation automation and PAC solution providers.

Advantages that emerge from the adoption of vPAC include improved standardisation and interoperability, as well as simplified asset management, largely through the collection and analysis of more data. Utilities are extremely keen to take ownership of data-driven grid systems. By building an intelligent substation edge, all information is consolidated at that location. With the data in place, AI and deep learning technologies can extract even higher levels of insight from the information for greater visibility and faster decision making. 

Flexible and scalable

Primary among the benefits brought by virtualisation technology is more flexible and scalable grid operations, helping to counter growing complexity.

Modern demands on grid infrastructure – including electric vehicles, renewables, microgrids and distributed energy resources (DERs) – increase complexity and capacity requirements. The protection and control of power systems is therefore essential for the interconnection of utilities and DERs, and subsequently facilitating the dependable and secure delivery of electricity to consumers. This outcome is paramount in an era where some estimates suggest electricity demand could quadruple in the coming decade as the world electrifies its transportation sector.

For primary substations, vPAC technology ensures easy adaptability during the initial project phase, helping to build and maintain an agile and reliable infrastructure in a cost-effective way. Moving forward, TSOs can continue introducing more virtualised software-defined solutions. The high-end Advantech servers are fully scalable to allow the gradual replacement of physical systems. In effect, one server becomes many virtual machines, completely replacing the traditional one computer/one application model.

The use of a high-end server with integral firewall and gateway functions also delivers better network/cybersecurity and resiliency against grid infrastructure – far more than is available with a standard RTU (remote terminal unit). By transitioning from physical hardware-based systems to software-defined infrastructure, vPAC systems reduce hardware dependency and enhance maintainability, contributing to a stronger security posture. Layered security controls, improved remote operations and enhanced threat detection capabilities all form part of optimal vPAC solutions.

Sustainability is another core benefit of vPAC that arrives with improved energy efficiency, predominantly by consolidating multiple applications and systems onto fewer servers. Fewer physical devices also mean a smaller amount of heat generation, reducing the need for energy intensive cooling systems, while further advantages of replacing physical devices (potentially up to 50%) with virtual ones include less shipments and up to 75% lower operational and maintenance costs.

Those adopting vPAC technology can reduce capex costs through reduced hardware, simplified infrastructure and minimised control room space. The use of a vPAC solution allows multiple VMs to run on a single physical server, reducing the total number of physical servers needed. This consolidation minimises the initial investment in servers, storage systems and networking equipment. Furthermore, by virtualising control systems, vPAC can eliminate the need for separate, dedicated hardware for each control function. This previously system critical hardware simply becomes redundant, further lowering hardware costs. 

Currently, virtualisation software is undergoing real-time performance testing in PAC applications. The long-term test results are promising, demonstrating that maximum hypervisor latency can be maintained under 120 microseconds. This outcome is significant because substations have many critical functions that require low latency, real-time performance. Moreover, the VMs are isolated so that real-time workloads can run adjacent to non-real time on the same host. Long running duration tests of up to one year are ongoing to ensure total reliability.

Stronger together

As a point of note, Advantech is a founding member of the vPAC Alliance, which through its growing membership is driving the advancement of virtualisation technologies for substations. The vPAC Alliance accelerates adoption by standardising edge computing solutions purpose-built for grid operators based on open platforms and best-in-class technology.

The ultimate aim is to support the digitalisation of substation automation and control through virtualisation. Central to this ambition, the vPAC Alliance will define and maintain technical specifications, overseeing the publication of standards in collaboration with standards development organisations. It will foster market awareness and ecosystem growth through strategic initiatives and industry engagement.

Although vPAC technology is not yet at mass deployment stage, a software-defined approach presents a clear way forward, beginning with vPAC before continuing through further phases such as vRTU, vIED, vHMI, etc. In the future, the technology is expected to gradually evolve toward containerised and even containerised-on-virtualised architectures. Why? Because software-defined substations are independent, flexible, future proof, resource efficient and support IT best practice.

Advantech of course has a huge role to play both in its own solution development programmes and as part of the vPAC Alliance. Challenges include the need for hardware that exhibits environmental ruggedness and robustness over much longer lifecycles than those prevalent in enterprise use cases. Extremely high availability/uptime is also essential for these mission-critical power grid substations. Of course, adding virtualisation into the mix increases the need for more processing power, which in turn elevates the scalability requirement. The good news? Advantech has it under control, developing reliable industrial servers for substations in a purpose-built hardware platform.

To learn more about these solutions and discuss specific applications and use cases, visit Advantech and partners at Enlit Europe 2025, 18-20 November at Booth 3D12, Hall 3, Bilbao Exhibition Center in Bilbao, Spain.

Visit Advantech for more information: www.advantech.com/en-eu