An Internet of Energy Things Based on Wireless LPWAN

This section is an overview of LPWAN as a current ongoing application of IoT in energy sector.

A number of literatrary works have been surveyed for the better understanding of the topic.

Under intense environmental pressure, the global energy sector is transitioning toward clean and

sustainable development. The concept of the smart grid has been widely accepted in the last

decade as a means of integrating higher percentages of renewables [1,2]. In 2016, China’s

government announced new policies on combining the Internet with smart energy in order to

demonstrate new clean energy technologies [3,4]. The government and the energy industry have

recognized that the construction of an energy-Internet backbone via smart grid is the core

strategy to promote a clean energy revolution for a new era. A clean energy system requests a

robust communication infrastructure that can accept greater variation from renewable energy

inputs [5]. From the perspective of control theory, maximizing system observabilities enhances

the system controllability. To balance a complex energy system, it is therefore necessary to

obtain abundant information from both the supply and demand side. The information Internet is a

reliable tool that can collect information at zero marginal cost. Nevertheless, energy systems are

still restricted by closed-information environments due to management and technical issues.

Particularly on the demand side, for example, communication infrastructure is incomplete at the

power distribution level [6], and even less communication infrastructure is available for

utilization systems at lower voltage levels. Despite developments in the smart grid over the last

decade, periphery energy networks are still out of the scope of system operators [7].

Management is not the only problem, as technology also plays a critical role in the issue of

demand-side management (DSM). The current power automation architecture was developed

based on standards to satisfy the particular requirements of centralized generation and

transmission systems [8]. With the rapid integration of distributed energy resources, the current

design cannot meet the requirements of the fast changes that are happening on the demand side.

Meanwhile, the end users do not have the expertise required to operate and maintain such

complicated systems. Under these circumstances, technical complexity has become a major

bottleneck restricting the acceptance of DSM applications such as demand response in the real

world [9,10]. To overcome this barrier, low-power wide-area network (LPWAN) is a new

solution in the context of a wireless breakthrough in the communication sector. Unlike WiFi and

ZigBee, LPWAN enables massive wireless connections covering long distances with minimum

power consumption and maintenance [11]. Two representative technologies of LPWAN are the

narrow-band Internet of Things (NB-IoT) [12] and Long Range (LoRa) technology [13]. The

NB-IoT is inherited from cellular communication, and seamlessly works on the existing global

system for mobile (GSM) and long term evolution (LTE) networks in licensed frequency bands

[14]. Many telecom operators have been ambitiously working on weaving together cityscale

Internet of Things (IoT) networks based on NB-IoT. In contrast, LoRa technology operates in the

unlicensed frequency band, so that end users are free to build up LoRa gateways that are similar

to house-owned WiFi routers. Therefore, LoRa technology is perfect for outlying regions without

cellular network coverage, or for establishing private networks with specific requirements for

quality and security [15]. LPWAN provides a practical and economical way of establishing IoT

networks.

LPWAN Technologies
LPWAN represents a new trend in the evolution of IoT technologies. Unlike 3G/4G or WiFi,

these systems do not focus on enabling high data rates per device or on minimizing latency.

Rather, the key performance metrics defined for LPWAN are energy efficiency, scalability, and

coverage. Many LPWAN players have come to the market, with the two most widely accepted

players being the LoRa and NB-IoT technologies. This section briefly reviews the main features

of both technologies and compares them with existing telecom and IoT technologies under the

survey of different literatures.

2.1. LoRa Technology

LoRa technology, developed by Semtech, is the most widely used technology for LPWAN in the

sub-GHz unlicensed band [16]. Due to the utilization of unlicensed bands, the LoRa network is

open to customers who lack authorization from radio frequency regulators. As a result, the LoRa

network is easy to deploy over a range of more than several kilometers, and serves customers

with minimum investment and maintenance costs. LoRa technology has made tremendous

improvements to existing technology in order to achieve its target [17,18]. The first of these is

LoRa modulation based on the chirp spread spectrum (CSS) scheme, which uses broadband

linear frequency-modulated pulses whose frequency increases or decreases based on the encoded

information. The Shannon-Hartley theorem indicates that an increase in transmission channel

bandwidth is a way to overcome a poor signal-to-noise ratio (SNR). CSS, which has been used

for radar applications since the 1940s, was chosen for its inherent robustness to channel

degradation mechanisms such as multipath fading, the Doppler effect, and in-band jamming

interference. As a result, the maximum coupling loss (MCL) for the LoRa modulation reaches as

high as 148 dB— 20 dB greater than that of existing sub-GHz communications—in order to

extend the coverage distance to kilometers and increase the capacity of the network. LoRa
modulation features six spreading factors that result in adaptive data rates. This feature enables

multiple differently spread signals to be transmitted at the same time on the same frequency

channel. The other improvement is the optimization of the LoRa network protocol for energy-

limited sensors because the uplink traffic usually exceeds the amount of downlink for IoT

networks. Under this environment, the LoRa technology specification has defined three modes of

different data-receiving windows for different application scenarios. In addition, data encryption

is supported by LoRa technology to ensure channel security by means of AES-128 encrypted key

pairs. Thus far, LoRa technology has been tested in 56 countries in demonstrations on smart

meters, traffic tracking, smart appliances, and smart healthcare [19]. In the Netherlands, the

telecom operator KPN has deployed a LoRa network that covers the entire country, as has SK

Telecom in Korea [20]. In addition, a LoRa Alliance with more than 300 members is

collaborating to define an open global standard for secure and carrier-grade LPWAN

connectivity representing the different layers of an ecosystem, from chipsets, modules, devices,

and gateways to network and application servers.

NB-IoT technology

NB-IoT is a new narrow-band IoT system built from existing LTE functionalities. The

technology standard was announced by the 3rd generation partnership project (3GPP) in 2016,

which promises to provide improved coverage for a massive number of low-throughput low-cost

devices with low device power consumption in delaytolerant applications. NB-IoT technology

makes use of narrow-band channels to provide higher sensitivity and long range at the expense

of limited data rates—typically below a few hundred bits per second (bps) [21,22]. The

demodulated spectrum is much wider than individual transmissions so that multiple uplinks can

occur simultaneously. The base station carries the complexity to decode multiple narrow-band
channels simultaneously without knowing the exact frequency of these channels. The advantages

of NB-IoT technology include its enhanced indoor coverage, which is targeted at an MCL of 164

dB, and its ability to connect a massive number of low-throughput devices with an adapted data

rate. As indicated by the 3GPP guideline, the design objectives of NB-IoT technology include

low-cost devices, high coverage (a 20 dB improvement over the general packet radio service

(GPRS)), long device battery life (more than 10 years), and massive capacity (more than 52 000

devices per channel per cell). Latency is relaxed, although a delay budget of 10 s is the target for

exception reports. In addition, NB-IoT network supports three deployment operation modes to

provide flexibility based on existing cellular infrastructure [23]: (1) Acting as a standalone and

dedicated carrier. In standalone operation, NB-IoT network can be used as a replacement for one

or more GSM carriers. This allows the efficient re-farming of GSM infrastructure for IoT. (2)

Acting in-band within the reserved physical resource block (PRB) of a wideband LTE carrier.

Here, all communication channels are shared between LTE and NB-IoT network, with the

possibility of using power spectral density boosting on the NB-IoT PRB. (3) Acting as the guard-

band of an existing LTE carrier. In the guard-band mode of operation, NB-IoT network utilizes

new resource blocks within the guard-band of an LTE carrier. Compared with LoRa network,

NB-IoT network is designed to work seamlessly on existing GSM and LTE networks within the

licensed frequency bands, without enormous updates on the existing base stations. Due to its

efficient utilization of existing cellular networks, many telecom manufacturers, including

Huawei, Ericsson, and Nokia, support the standardization of NB-IoT network. Thus far, the

commercialization of NB-IoT networks has been initiated, with a particular focus on applications

for smart transportation, logistic management, smart grids, and smart manufacturers [24–26].
Telecom giants such as AT&T and China Telecom have announced ambitious plans for using

NB-IoT networks to implement coverage in major cities in 2017 [27].

Comparisons with GPRS technology

Before LPWAN, many IoT business applications were run on GPRS networks [28–32]. GPRS

technology is commonly referred to as “2.5G” mobile communication; the subsequent 3G and

4G technologies are targeted to high data rates per device or to minimum latency in order to

support the high-quality transmittal of voice, image, and video [33–35]. Table 1 compares the

main features of GPRS and LPWAN technologies regarding the aspects of power consumption,

latency, coverage, and data rate. End devices in LPWAN are expected to have one tenth of the

energy consumption and a 20 dB improvement over GPRS networks. In addition, the capacity of

GPRS networks is limited by communication channels, whereas both NB-IoT and LoRa

networks have optimized utilization of channel composition in order to extend connection

capabilities under lower data rates.

Comparisons with area IoT technology

For connections among personal devices, ZigBee [36] and WiFi [37] have dominated the current

IoT market. These technologies possess different features and performances. WiFi benefits from

a high data rate and low latency, but its power consumption is much higher than that of ZigBee.

ZigBee is designed for small-scale projects that need wireless connections, and is used to create

personal area networks with small, low-power consumption, such as for home automation,

medical device data collection, and other low-power low-data-rate scenarios. Although ZigBee

has been optimized for IoT networks, its prominent problem is its low coverage distance and
device scalability. Therefore, WiFi and ZigBee are referred to as “area IoT” in that they can be

used to support connections between devices within a limited area [38–40].

3. IoET architecture based on LPWAN

Wireless-to-cloud architecture

Section 2 presented the key features of LPWAN and compared LPWAN with the technologies of

cellular telecom (GPRS) and area IoT (ZigBee/WiFi). The primary advantages of LPWAN lie in

its wide communication coverage and low-power consumption; its disadvantages are its

relatively low data rate and the limited computation capability of its end devices. A wireless-to-

cloud architecture is therefore proposed for the IoET, in order to integrate cloud computing into

end devices via LPWAN, as shown in Fig. 1(a). As shown in Fig. 1, an IoET enables

communication between end devices and the cloud platform via wireless connections. Compared

with area IoT architecture, shown in Fig. 1(b), the primary distinction is the savings on the area

IoT gateway associated with the gateway network layer. As a result, the LPWAN-based IoET

architecture becomes manageable for both network operators and end users. This simplified

network topology conveniently extends the integration of sensing and control devices in actual

energy systems. In addition, the functions of end devices become extendable by the computing

capacity provided by the cloud center. The three functional layers of the wireless-to-cloud

architecture, as shown in Fig. 1(a), are discussed in the following subsections. 3.2. Remote-

sensing and control layer Actual energy-related devices are connected through the remotesensing

and control layer, which is associated with a huge amount of energy sensors, controllers, and

embedded computer and wireless communication modules. Energy sensors monitor device

statuses and send them to the cloud center, while controllers deliver the instructions provided by
the cloud center. Embedded systems compactly incorporate embedded central processing units

(CPUs), memory, periphery devices, and wireless communication modules as the carrier of

energy sensors and controllers for machine-to-machine (M2M) communication conversion. They

also control actions with quality of service (QoS) requirements. Therefore, in addition to sensing

and control functions, real-time services are provided via embedded systems in order to enhance

the sensitivity of communication QoS to wireless transmitting and cloud computing. This

concept, which is named “fog computing,” fills in the technical gaps of cloud computing [41].

LPWAN transmission layer

Distributed energy devices are usually geographically dispersed, making IoT technologies such

as ZigBee and WiFi difficult to use. Under such scenarios, LPWAN becomes the alternative. The

LPWAN transmission layer establishes wireless channels between end devices and the cloud

platform. As representative technologies, NB-IoT and LoRa technologies are suitable for

different application scenarios. In outlying districts without cellular coverage, LoRa network is

the practical choice, as it forms a star-shaped topology around end devices that are served by a

single base station (BS). In a city with cellular networks, end devices simply connect with the

cloud center via NB-IoT cellular network by paying a data fee to telecom companies.

For systems with particular security requirements, one solution is to establish a virtual private

network with secured channels in an NBIoT cellular network; another choice is to construct a

private LoRa network to physically secure the connections.

Cloud platform layer

The cloud platform layer serves as the cloud platform that hosts energy applications via data

exchange and communication between devices. More specifically, the platform corporates the

functions of information conversion, integration, and interoperation, as shown in Fig. 4. The

corresponding functions are described below. (1) Protocol parsing. An IoET must deal with

communications between various end devices that have different protocols. It is not realistic to

assume that every device understands all the protocols in the network. Instead, the protocols are

parsed by the cloud platform, other than the field devices. Therefore, it is convenient to decouple

actual devices and communication protocols under centralized management and maintenance. To

achieve higher flexibility, the cloud platform also provides a programming interface to enable

user-defined protocols for connections with unknown devices. (2) M2M communications. M2M

communication among energy devices is the main feature of an IoET, in order to extend the

interoperability of networks between devices. Limited by wireless bandwidth, a

“subscribe/publish” pattern is suitable for M2M communications. Many event-driven

middleware technologies have implemented this pattern, which enables almost unlimited device

addressing and efficient bandwidth utilization. Data encryption is also supported by middleware

to enhance communication security.

Big data storage and analysis

Access to a huge number of sensors inevitably results in massive data storage and analysis

requirements. The cloud platform supports both real-time and historical data access for specific

energy system applications. Real-time data is accessed by memory database in order to meet the
requirements of low latency and high concurrency. The historical data is accessed by distributed

file systems in order to meet the needs of massive data storage and big data analysis.

End user interoperations

At present, energy systems are restricted to closed-information environments in order to secure

management operations. However, inflexible information exchanges will make it difficult to

address diverse interoperations among various end user roles in the clean energy era. The cloud

platform extends user interoperations by visualizing the energy devices in the cloud-based pool

to permit platform-independent accessing. A cloud-based tool is also set up to program the

working flow for user-defined operations by editing the graphics, model, and data of visualized

energy devices in the platform.

IoET-based DSM applications

Based on LPWAN, an IoET enables extensive connections between energy devices at very low

cost and without expert knowledge. An IoET extends the reach of the energy information system

to match the requirements of DSM. Many DSM concepts being reported in the literature now

become practical once they are supported by IoET infrastructure.

Smart appliances and smart home systems

One of the primary objectives of smart appliances is to reduce energy consumption and energy

bills. The smart appliance market has attracted considerable attention, from manufacturing to

industry; however, an obstacle remains in the form of a lack of appropriate communication

channels. The current solution is to use ZigBee or WiFi to establish connections between
appliances and the cloud platform [42]. The drawback to this solution is that diverse

communication environments usually result in unexpected failures that may challenge end users

who lack patience and specific knowledge. Another alternative is to set up an independent

gateway for appliances. However, this solution often results in fragmented applications for

different brands and in poor user feedback. The NB-IoT-based IoET provides city-scale

networks of devices to satisfy the requirements of smart appliances and smart home systems.

Wireless channels established by NB-IoT networks give smart appliances access to the cloud

platform without any particular configurations on the gateway. As long as appliances are

connected, the cloud platform automatically recognizes them and provides feedback to smart

home applications [12]. Adding an appliance to the cloud platform thus becomes a simple task,

and the entire process is completed without the need for expert knowledge. Moreover, smart

home systems are prompted to carry out management based on the statuses of appliances and on

historical data stored in the cloud platform.

Microgrids and distributed energy systems

Microgrids and distributed energy systems aim at the highpercentage integration of clean energy

and at highly reliable power supply. These energy systems are suitable for outlying districts such

as islands, highlands, and river valleys, where large-scale power systems are too expensive to

construct [43]. The operation of a distributed energy system usually requires flexible and reliable

communication systems. However, cable-based communications are impractical in most cases

due to their complicated maintenance. Furthermore, the communication distances of ZigBee and

WiFi are too short to be practical for an energy site [44]. Therefore, LPWAN-based IoET

becomes another option for microgrids and distributed energy systems. Unlike LoRa network, an

NB-IoT network must be set up within an existing cellular network. Therefore, LoRa technology
is a more flexible tool to meet the requirements of outlying districts. Since LoRa network works

in the unlicensed band, the site owner is allowed to set up a wireless BS to connect energy

devices that are dispersed over distances of several kilometers, without authorized permission. A

star topology is simpler than a more complex network, and is more convenient to maintain

without expert skills.

Active distribution networks and aggregated demand response

An active distribution network manages a high percentage of distributed energy resources that

are integrated at the distribution and utilization systems. With the emergence of distributed

generators and storage at the low voltage level, various smart energy devices now request the

level of information-sharing that is associated with distribution system operations. Nevertheless,

it is difficult to extend current information systems to end consumers due to complex field

environments and security concerns. In particular, utilization networks at the lowest voltage level

lack the space and communication channels required to add additional remote devices to enable

interoperations with power distribution systems [45,46]. The current solution is to use GPRS

networks operated by telecom companies [47]. The substantial data bill makes it necessary to use

smart meters in order to save measurements at the gateway and send them back to the operation

center when inquired for. To address this issue, the LPWAN-based IoET provides an economical

way to reach consumers at the low voltage level. On the one hand, by investing in enterprise-own

LoRa networks, the cloud platform receives data generated by energy consumers with no charge

from telecom companies. On the other hand, bi-directional communication enables the

aggregation of energy consumers to participate in demand response. Considering the reachability

of LPWAN, demand response capacities are anticipated to be comparable to peak-valley

differences and renewable variations.

Electric vehicles and aggregated vehicle-to-grid operation

Regarding the mobile energy system, EVs have been accepted as the transportation solution of

the future in order to reduce fossil fuel use and carbon emissions [48]. The large-scale integration

of EVs will introduce inherent flexibility to the operations of energy systems. Current academic

studies have demonstrated the effectiveness of EVs in balancing the control of power systems via

means such as frequency regulation, peak shaving, and vehicle-to-grid (V2G) operations [49].

An efficient communication network is a precondition to aggregate dispersed EV charging.

However, installations of cable networks are impractical in most cases, and coverage of telecom

signals is weak in some underground parking lots. LPWAN is a general solution for EV

communications since the adapted modulation scheme is sensitive to end receivers, even with

over 150 dB decay. Thus far, both NB-IoT and LoRa technologies have been successfully tested

in actual parking lot demonstrations. Based on LPWAN, EVs connected to an IoET are

aggregated as a storage pool to respond to energy systems and allow greater integration of

variable renewables.

Energy distribution network and multi-energy system

Multiple forms of energy conversion, such as power-to-gas systems, power-to-heat systems, and

combined heat and power systems, are integrated into energy hubs for higher energy utilization

efficiency [50,51]. Performing the role of grid nodes, energy hubs are interconnected in the

energy distribution network (EDN). The EDN is a novel concept of integrating flexibilities in the

demand side by interoperating different energies such as electricity, gas, and heat within a local

area. With highly flexible energy interoperations, EDN can actively respond to variable
renewable energy, leading to a larger renewable share in power systems. Energy flowing through

the heat and gas networks of an EDN creates a harsher environment for sensing and

communication than an electricity network. To tackle the issue, the ultra-low-power mode of

LPWAN enables NB-IoT and LoRa modules to last for several years without battery changing.

The reachability of IoET collects more details of multi-energy systems, allowing highly efficient

interoperations.