By Marco C. Janssen, UTInnovation, the Netherlands
Despite the challenges around complexity, skills, and integration, the business case for IEC 61850 remains compelling for utilities and industrial operators.
In the 30 years since its inception IEC 61850 “Communication networks and systems for power utility automation” has evolved into a cornerstone framework for digital power system automation, particularly in substations. After years of hard work and fierce debates in WG 10, 11 and 12 the standard was first published in 2003 by the International Electrotechnical Commission’s Technical Committee 57. The standard became almost instantaneously a success through its adoption in product ranges of major vendors of substation automation systems. Development continued and the standard expanded into new domains such as DERs, Hydro Power Plants and enhanced core functionality. This resulted in Edition 2 being formalized in 2013 and updates and this expansion continues to date.
The main reason for IEC 61850’s success in my opinion is that it focuses on interoperability, defines abstract data models, includes communication services, and defines engineering processes for system integration.
IEC 61850’s original focus was substation automation, enabling IEDs to interoperate over a communication network. Over time its scope has expanded to include wide-area communication, distribution automation, control centers, and even cloud-based analytics and virtualized protection and automation systems. The standard includes advanced features like time synchronization and sample values for high-speed applications. Unlike older communication solutions, IEC 61850’s object-oriented data models and standardized services enable real-time digital communication between devices, greatly simplifying engineering, integration, and future system evolution.
IEC 61850 based systems are deployed around the world, with adoption rates differing by region based on regulatory drivers, grid modernization budgets, and legacy installed base characteristics. Europe and parts of Asia have some of the most mature and widespread deployments, with many utilities building new digital substations and retrospectively upgrading older ones. In North America, while utilities are increasingly experimenting with IEC 61850, legacy systems using DNP3 remain heavily entrenched. At the same time emerging markets in Africa, the Middle East, and Latin America are accelerating digital grid investments and choose IEC 61850 for new smart grid projects.
The most established application is substation automation, where IEC 61850 replaces complex copper wiring and proprietary interfaces with standardized Ethernet-based communications. It enables protection relays, circuit breakers, merging units, and engineering tools to share data in real-time. Beyond substations, IEC 61850 is used to automate feeder controls, fault detection/isolation/restoration (FLISR), Volt/VAr optimization, and DERs, communication from substations to control centers and across wide areas for system-wide protection, monitoring, and control.
So what is the business case for IEC 61850 and why does a company adopt it? First there are clear operational benefits. The main one being interoperability and reduced engineering effort as the standardized data models simplify multi-vendor integration and reduce lifecycle engineering costs. Then there is the scalability and future readiness as Ethernet/IP networking enables addition of new domains, analytics, and grid automation services with minimal rework. Finally, there is efficiency and reliability as real-time communication and integrated protection improves fault response, reduce outages, and boost grid resilience.
While initial capital costs may be higher, total cost of ownership often favors IEC 61850 through reduced engineering, lower wiring costs, and avoidance of custom interfaces. Strong value is shown where utilities are modernizing infrastructure or replacing end-of-life legacy systems. Also, for utilities pursuing digital transformation, including virtualization of substation functions, centralized automation platforms, and integration with cloud-native analytics, IEC 61850 provides a common backbone that supports multiple applications.
Sounds like a pretty perfect solution, right? However, while the technical and strategic benefits of IEC 61850 are substantial, several challenges need to be considered. Implementing IEC 61850 requires multidisciplinary expertise, combining protection engineering, networking, cybersecurity, and software configuration. Many utilities face internal skills shortages and steep learning curves. Also, utilities report challenges around process bus adoption, data modelling, and changes to engineering workflows. Proper specifications and upfront planning and testing are crucial to avoid costly rework. On the technical side high-speed applications using sampled values and GOOSE messaging require new way of thinking about mission critical applications such as protection and need robust network bandwidth and precise time synchronization across devices. A main area of concern when deploying IEC 61850 is cyber security. This requires layered security architectures and ongoing monitoring, which drives up operational complexity. As we are not starting from scratch, there is the matter of legacy system integration and replacement. In ares with heavy legacy system usage, full migration to IEC 61850 may take years slowing benefits realization.
However, despite the challenges, the business case for IEC 61850 remains compelling for utilities and industrial operators committed to modern, reliable, and scalable power systems.
Biography:
Marco C. Janssen is the CEO of UTInnovation and the former VP of Operational Excellence at TAQA, Digital Grid Leader for Latin America at EY and Director of the Smart Grid PMO at DEWA. He received his BSc degree in Electrical Engineering from the Polytechnic in Arnhem, Netherlands and has worked for over 33 years in the field of Power and Water O&M, Digital Transformation, Protection, AMI and Distribution and Substation Automation. He was a member of IEC TC57 WG 10, 17, 18, 19, the IEEE PES PSRC and CIGRE B5 and D2 WGs. He was the convenor of D2.35 and editor of the Quality Assurance Program for the Testing Subcommittee of the UCA International Users Group. He holds one patent, is the author of the book titled “Recreating the Power Grid”, has authored more than 53 papers, is co-author of 4 Cigre Technical Brochures and 2 books on SmartGrids and Electrical Power Substations Engineering and is the author of the “I Think” column in the PAC World magazine.
