Virtualising substations: The future of grid control
Utilities embrace PAC virtualisation to simplify operations, cut costs, and boost resilience, driven by IEC 61850 and evolving communication networks.

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Power utilities are under pressure to modernise as energy demands surge, extreme weather intensifies, and sustainability targets tighten. One key area of transformation is the move toward virtualised substations—a leap beyond traditional digitalisation.
For many utilities, the first step is applying IEC 61850 protocols to digitalise data from primary equipment. But pioneers are going further by virtualising Protection, Automation, and Control (PAC) systems. This shift simplifies engineering, speeds up deployment, and allows utilities to harness IT innovations more effectively.
Virtualisation eliminates the need for complex hardwiring between devices like IEDs, CTs, and VTs. It reduces physical equipment, lowers operational costs by up to 70 %, and improves multivendor interoperability. Utilities can now remotely manage functions and pre-test PAC applications combining tools from different vendors.
Success depends on rethinking grid communications. Utilities must build robust, end-to-end networks capable of supporting real-time digital operations. The process involves four key phases: digitalising, centralising, synchronising, and virtualising. Each step builds the foundation for software-based substations supported by private cloud infrastructure and intelligent networking.
A comprehensive blueprint includes segregated LANs, support for PTP timing protocols, and integration across substations, WANs, and data centres. This ensures high performance, reliability, and security across the virtualised environment.
Industry alliances like E4S and vPAC are accelerating adoption, with dozens of utility members pushing for open, standards-based solutions. The shift to virtualisation is not just a trend, it is a strategic transformation toward a more agile, efficient, and intelligent grid.
Source: Nokia
#energy digitalisation#IEC 61850#OT networking#PAC systems#power infrastructure#smart grid#substation virtualisation#utility modernisation