How ServiceNow Can Help Utilities Address Findings in the NERC 2024 State of Reliability Report

The 2024 State of Reliability Overview Assessment Overview of 2023 Bulk Power System Performance highlights key findings from the assessment of the 2023 Bulk Power System (BPS) performance. Here is a high-level summary of the main findings:

Key Finding 1: Response to Severe Weather Events Confirms the Overall Resilience of the BPS

• The BPS demonstrated resilience during severe weather events in 2023, with no extreme events like those seen in previous years.
• Canada faced significant wildfires, but the impact on BPS reliability was minimal due to effective operator actions.
• Restoration times for transmission system outages improved by 10-20% compared to previous years, and no load loss was associated with Level 3 Energy Emergency Alerts.

Resultant Actions

• Enhanced focus on extreme weather conditions.
• Issuance of EOP-011-2 standard to ensure mitigation plans for operating emergencies are developed and implemented. EOP-011-2 is a NERC reliability standard focused on emergency preparedness and operations.

Key Finding 2: Generation Forced-Outage Rates Continue to Increase

• Forced-outage rates for conventional and wind generation were historically high, with significant outages in baseload coal and cycled natural gas units.
• Coal generation, while producing less energy, still had the highest correlation to forced-outage rates due to maintenance and service hour reductions.

Resultant Actions

• Increased reserve margins are needed to accommodate declining coal reliability and rising variable resource generation.
• New standards (BAL-007-1 and BAL-008-1) will address energy-related risks.
• Enhanced reliability assessments continue to analyze future scenarios and identify preventive measures.

Key Finding 3: Performance of Inverter-Based Resources (IBR) Continues to Impact the BPS

• Inverter-Based Resources (IBR) disturbances, including those involving solar, wind, and battery storage, pose reliability challenges due to their response to system disturbances. IBR are energy resources that generate electricity and connect to the power grid through inverters. Inverters are electronic devices that convert direct current (DC) produced by the resources into alternating current (AC), which is the standard form of electricity used in the power grid.
• Improvements through software updates were noted, reducing generation loss during disturbances. Recent advancements and updates in the software that controls inverters have led to significant improvements in how IBRs respond to grid disturbances. These updates can include enhanced algorithms for fault detection, better synchronization with grid parameters, and more robust ride-through capabilities, which allow IBRs to maintain output during short disturbances rather than disconnecting. By improving the software that governs the operation of inverters, utilities and operators can reduce the frequency and severity of generation losses during disturbances. This means that during events like voltage sags or frequency deviations, the inverters are less likely to shut down or reduce output significantly, thus maintaining a more stable supply of electricity from these renewable sources.

Resultant Actions

• Implementation of inverter software upgrades and updated technical requirements for plant controllers.
• Issuance of a Level 2 Alert to address IBR performance issues and collect performance data. A Level 2 Alert focuses on addressing performance issues related to Inverter-Based Resources (IBR) and collecting performance data from Generator Owners (GOs). This alert was issued following the analysis of multiple disturbances involving widespread loss of IBRs, particularly solar photovoltaic (PV) resources. These performance issues have the potential to cause significant reliability risks to the Bulk Power System (BPS) if not properly managed.
• Development of new or modified reliability standards by NERC to address IBR-related reliability gaps.

Key Finding 4: Texas Interconnection Reliability Performance Improves While Facing New Challenges

• The Texas Interconnection showed improved reliability, supported by battery energy storage systems (BESS) which helped manage frequency and energy emergencies.
• Statistically significant improvements in miss operation rates were observed.

Resultant Actions:

• Proposed changes to incorporate performance requirements for IBRs in ERCOT's operating guides.
• Continued focus on managing the integration of variable generation and new technologies. Enhancing grid flexibility to accommodate the intermittent nature of these resources and implementing advanced forecasting models to predict generation patterns and their impact on grid operations.
• Utilizing real-time data analytics to monitor performance and anticipate potential issues.
• Ensuring robust communication and coordination among grid operators, utility companies, and other stakeholders.

Leveraging ServiceNow to Enhance US Utilities' Response to NERC's 2024 State of Reliability Technical Assessment

The 2024 State of Reliability Technical Assessment of 2023 Bulk Power System Performance aims to inform regulators, policymakers, and industry leaders about the most significant reliability risks facing the North American Bulk Power System (BPS). It provides a comprehensive technical review of BPS reliability for the 2023 operating year, highlighting key occurrences, major reports, and in-depth analysis of risks, resilience, grid transformation, and performance metrics. The assessment seeks to measure performance trends, emerging risks, and the effectiveness of mitigation activities, ensuring that actions are taken to enhance the reliability and security of the power grid.

The NERC 2024 State of Reliability (SOR) Technical Assessment highlights several key challenges and areas for improvement in the reliability and resilience of the US bulk power system (BPS). ServiceNow, as a comprehensive digital workflow platform, can significantly aid US utilities in addressing these findings.

Key Findings from the NERC 2024 SOR Technical Assessment

Wildfires

Québec Wildfires - The 2023 wildfire season in Québec was unprecedented, causing extensive transmission power line outages and necessitating significant load-shedding actions. The dense smoke from the wildfires triggered multiple transmission outages due to the operation of protection systems, highlighting the grid's vulnerability to natural disasters.

Severe Storms

Winter Storm Elliott - This extreme weather event caused over 90,000 MW of coincident unplanned generation outages, affecting a substantial portion of the anticipated resources in the Eastern Interconnection. The event necessitated 5,400 MW of firm load shedding to maintain system balance, underscoring the grid’s susceptibility to severe weather conditions.

Equipment Failures

• CAISO Battery Energy Storage System (BESS) Disturbance - Transmission faults in Southern California led to significant losses in solar PV and BESS generation. These incidents revealed system performance problems with inverter-based resources (IBRs) and underscored the need for improved commissioning practices and performance assessments during the interconnection process

How ServiceNow Can Address These Findings

Enhanced Incident Management

Wildfires

• Automated Incident Response - ServiceNow’s Incident Management module can automate the identification, tracking, and resolution of incidents. During wildfire events, automated workflows ensure that incidents are quickly escalated and assigned to the appropriate personnel, reducing response times and minimizing grid disruption.
• Real-Time Collaboration - ServiceNow provides tools for real-time communication and collaboration, enabling utilities to coordinate with regional entities and emergency response teams. This ensures that all stakeholders have access to up-to-date information, facilitating a more effective and coordinated response.

Severe Storms

• Predictive Maintenance and Analytics - By leveraging ServiceNow’s predictive analytics capabilities, utilities can anticipate and prepare for severe weather events. Predictive maintenance schedules can be adjusted based on weather forecasts, reducing the likelihood of unexpected equipment failures during storms.
• Integrated Response Plans - ServiceNow enables the creation and management of integrated response plans. These plans ensure that all teams know their roles and responsibilities during severe storms, leading to a more coordinated and effective response.

Equipment Failures

• Incident Tracking and Resolution - ServiceNow’s Incident Management module can streamline the process of identifying, tracking, and resolving equipment failures. Automated workflows ensure quick assignment and escalation of incidents, reducing downtime and improving grid reliability.
• Enhanced Performance Monitoring - ServiceNow provides tools for monitoring the performance of IBRs and other critical infrastructure. This enables utilities to detect and address performance issues before they lead to significant disruptions

Improved Coordination and Communication

Real-Time Collaboration

• Communication Tools - ServiceNow’s platform includes robust communication tools that facilitate real-time collaboration and information sharing across different teams and regions. This is particularly important during incidents like wildfires and severe storms, where timely information sharing is critical to maintaining grid stability.

Emergency Management

• Emergency Response Coordination - ServiceNow’s emergency management solutions help utilities prepare for, respond to, and recover from major incidents. Detailed emergency plans can be created and managed within the platform, ensuring that all teams are prepared for real-world scenarios.
• Resource Allocation - During emergencies, ServiceNow can help utilities allocate resources effectively. The platform’s resource management capabilities ensure that personnel and equipment are deployed where they are needed most, improving the efficiency of emergency response efforts.

• Comprehensive Business Continuity Plans: ServiceNow’s Business Continuity Management (BCM) module enables utilities to create detailed continuity plans that ensure operations can continue during and after an incident. These plans cover critical functions and processes, ensuring that utilities can maintain essential services.
• Regular Testing and Drills: ServiceNow BCM facilitates regular testing and drills of continuity plans, ensuring that all teams are prepared to execute these plans effectively. This practice helps identify potential gaps and areas for improvement.

Crisis Management

• Centralized Command Center: ServiceNow provides a centralized command center for crisis management, where all relevant information and communication are consolidated. This centralization ensures a coordinated response and improves decision-making during crises.
• Crisis Communication: ServiceNow’s platform includes robust tools for crisis communication, enabling utilities to keep all stakeholders informed with timely and accurate information. This transparency helps maintain trust and ensures that all parties are aware of the current situation and response efforts.

Comprehensive Data Analytics and Reporting

Data Integration and Analysis

• Integrated Data Analytics - ServiceNow’s Performance Analytics module allows for the integration and analysis of data from multiple sources. This enables utilities to gain actionable insights and track performance against key reliability metrics.
• Custom Reporting - ServiceNow’s customizable dashboards and reporting tools ensure that utilities can monitor grid performance in real-time and generate detailed reports to meet regulatory requirements. This supports better decision-making and helps demonstrate compliance with NERC standards.

Support for Grid Modernization and Transformation

Project and Portfolio Management

• Managing Complex Projects - ServiceNow’s Strategic Portfolio Management (SPM) tools can support utilities in managing complex grid modernization projects. From planning and execution to monitoring and control, ServiceNow ensures projects are delivered on time and within budget.
• Change Management - ServiceNow facilitates smooth transitions by managing changes in technology and processes. The platform’s Change Management module helps plan, approve, and implement changes with minimal disruption to grid operations.

Leveraging ServiceNow Artificial Intelligence to Assist with NERC Findings

Artificial Intelligence (AI) plays a pivotal role in enhancing the capabilities of ServiceNow's platform, offering advanced solutions to address the critical findings highlighted in the NERC 2024 State of Reliability (SOR) Technical Assessment. Here’s how ServiceNow AI can help US utilities tackle the key challenges identified in the assessment:

AI-Powered Predictive Maintenance and Incident Prevention

Predictive Analytics for Wildfires and Severe Storms

• Proactive Maintenance Scheduling - Using predictive analytics, ServiceNow AI can identify equipment that is likely to fail during extreme conditions. This enables utilities to schedule proactive maintenance, reducing the risk of unexpected outages during critical periods.

Incident Detection and Response

• Real-Time Anomaly Detection - ServiceNow AI continuously monitors grid operations and detects anomalies in real-time. By identifying unusual patterns in data, such as sudden changes in voltage or frequency, AI can alert operators to potential issues before they escalate into major incidents.
• Automated Incident Response - AI-driven automation in ServiceNow can trigger predefined response actions when an anomaly is detected. This includes dispatching repair crews, adjusting load distribution, and communicating with affected stakeholders, ensuring swift and effective incident management.

Enhanced Decision-Making and Risk Management

AI-Driven Risk Assessment

• Comprehensive Risk Analysis - ServiceNow AI evaluates various risk factors, including weather conditions, equipment health, and historical incident data, to provide a comprehensive risk assessment. This helps utilities prioritize actions and allocate resources effectively.
• Dynamic Risk Mitigation - AI models can dynamically update risk assessments based on real-time data, ensuring that utilities are always aware of the current risk landscape and can adapt their strategies accordingly.
• Risk Management Automation - Embedding automated risk management into the DNA of how a utility operates is the key to staying ahead of risks. If a utilities compliance processes are woven into the fabric of their processes then utilities become proactive versus reactive.

Decision Support Systems

• Optimized Resource Allocation - AI algorithms in ServiceNow can optimize resource allocation during emergencies, ensuring that the right personnel and equipment are deployed to the most critical areas. This improves the efficiency and effectiveness of emergency response efforts.
• Scenario Planning and Simulation - ServiceNow AI enables utilities to run scenario simulations, evaluating the potential impact of different events and response strategies. This helps in developing robust contingency plans and making informed decisions during crises.

Improved Coordination and Communication

AI-Enhanced Collaboration Tools

• Intelligent Routing and Escalation - ServiceNow AI can intelligently route incidents and escalate issues based on their severity and impact. This ensures that critical incidents receive immediate attention from the appropriate teams.
• Natural Language Processing (NLP) - AI-powered NLP capabilities facilitate seamless communication across teams and regions. ServiceNow AI can process and understand natural language inputs, allowing for more intuitive interaction and collaboration.

Real-Time Situational Awareness

• Unified Data Dashboard - AI aggregates data from various sources and presents it in a unified dashboard, providing a real-time overview of grid operations. This enhances situational awareness and enables quicker, data-driven decision-making.
• Predictive Alerts and Notifications - ServiceNow AI sends predictive alerts and notifications to stakeholders about potential risks and incidents. This proactive communication helps prevent issues from escalating and ensures timely interventions.

AI-Driven Data Analytics and Reporting

Advanced Data Integration and Analysis

• AI-Powered Data Integration - ServiceNow AI can integrate and analyze data from multiple sources, including sensors, weather forecasts, and historical records. This provides a holistic view of grid performance and reliability.
• Insightful Reporting - AI-driven analytics generate insightful reports, highlighting key trends and metrics. These reports help utilities understand their performance, identify areas for improvement, and demonstrate compliance with NERC standards.

Customizable Dashboards and Metrics

• Real-Time Performance Monitoring - AI algorithms continuously monitor performance metrics, providing real-time updates on grid health and reliability. Customizable dashboards allow utilities to track specific KPIs relevant to their operations.
• Automated Compliance Reporting - ServiceNow AI automates the generation of compliance reports, ensuring that all regulatory requirements are met accurately and efficiently. This reduces the administrative burden and improves reporting accuracy.

ServiceNow can significantly enhance the resilience and reliability of US utilities in response to the findings of the NERC 2024 State of Reliability (SOR) Technical Assessment. By leveraging ServiceNow’s comprehensive suite of tools, utilities can automate and streamline incident management, enabling quick and effective responses to wildfires, severe storms, and equipment failures. The platform’s AI-powered predictive analytics allow for proactive maintenance and risk assessment, minimizing the likelihood of unexpected outages. Real-time collaboration and communication tools facilitate better coordination among teams and regions, while advanced data integration and reporting capabilities provide actionable insights and ensure compliance with regulatory standards. Overall, ServiceNow offers a robust solution to address the critical challenges identified in the NERC assessment, promoting a more reliable and resilient bulk power system.