New IEEE standard targets smart-grid communications; more on the way/Vodafone to acquire Cable & Wireless

The IEEE has announced publication of a new standard intended to improve the communications and distribution-automation capabilities of smart grids. It also has embarked on the development of three additional standards for smart grids.

The news standard is IEEE 1591.1-2012 – “Standard for Testing and Performance of Hardware for Optical Ground Wire (OPGW).” OPGW combines optical fiber with electrical ground wire in the same cable, thus providing both grounding capabilities for transmission lines and the transmission of communications signals such as Supervisory Control and Data Acquisition (SCADA). IEEE 1591.1 offers manufacturing, testing, and procurement specifications for use with OPGW hardware.

Meanwhile, new smart-grid standards projects now underway include:

IEEE P1909.1, “Recommended Practice for Smart Grid Communication Equipment -Test methods and installation requirements” will document test and installation procedures specifically for communications equipment to be installed in various domains of the smart grid, including generation, transmission, and distribution. Tests will target safety, electromagnetic capability (EMC), environmental, and mechanical factors.
IEEE P1703, “Standard for Local Area Network/Wide Area Network (LAN/WAN) Node Communication Protocol to complement the Utility Industry End Device Data Tables” will aims to improve the cost-efficiency and flexibility of advanced metering infrastructure (AMI) deployments. The standard will define uniform, managed, adaptive, and secure network data and message delivery for plug-and-play, multi-source utility meters, home appliances, communication technology, and other ancillary devices.
IEEE P1854, “Guide for Smart Distribution Applications Guide,” will categorize and describe important smart distribution applications and fill gaps for standardized definitions of such systems. The guide is intended to cover advanced automation and SCADA systems for reliability improvement, outage management, fault location and management, voltage and var management, distributed-resource and renewable-generation integration, demand response, advanced protection, equipment diagnostics and asset management, real-time simulation for system optimization, microgrids, and many other applications.

“Many of the benefits that the world hopes to achieve through smart-grid development—such as empowering greater consumer choice in energy use, improving the reliability of power generation and distribution, and more efficiently meeting skyrocketing power demand—are dependent on integrating significantly more robust systems for communications and distribution automation,” said Dr. W. Charlton Adams Jr., past president of the IEEE Standards Association (IEEE-SA). “The new standards activities approved by the IEEE-SA Standards Board are designed to enhance those very capabilities—and, in doing so, accelerate realization of the smart grid’s revolutionary promise.”

Vodafone Europe B.V. has agreed to acquire Cable & Wireless Worldwide plc (CWW) for approximately £1.044 billion ($1.7 billion) in cash.

The offer of 38 pence each CWW share held represents a premium of approximately 92 percent to the closing price of 19.8 pence per CWW share on February 10, 2012 (the last business day prior to the commencement of the offer period) and 107 percent to the average closing price of 18.4 pence per CWW share for the three months ended the same day.

Vodafone reserves the right to increase the offer if a third party announces a possible offer or offer for CWW. The company says the acquisition will strengthen its enterprise business and other cost saving opportunities.

The CWW directors have agreed to recommend unanimously that CWW shareholders approve the offer. Vodafone says it already has received “irrevocable undertakings” from RBC Global Asset Management Inc., Sky Investment Counsel Inc., and Cyrte Investments GP I B.V. to vote in favor of the deal. Combined, these investors hold approximately 10.35 percent of CWW’s ordinary shares as of last Friday, April 20.

Meanwhile, Vodafone says it also has obtained letters of intent from J.P. Morgan Asset Management Ltd. and Investec Asset Management Ltd. to vote in favor of the acquisition. These two firms hold approximately 8.13 percent of CWW’s ordinary shares.

Said John Barton, CWW chairman of CWW, “Under the leadership of Gavin Darby, Cable & Wireless Worldwide has outlined a strategy to refocus the business on achieving sustainable cash generation and returns from capital invested. However, the offer from Vodafone announced today will enable shareholders to crystallize a value, in cash, that represents a significant premium to recent trading levels and avoid exposure to the risks inevitably presented by executing a medium-term improvement strategy.

“Furthermore, the combination with Vodafone represents an exciting opportunity for Cable & Wireless Worldwide’s customers, employees, partners, and other stakeholders to benefit from the many advantages that will come from being part of the Vodafone Group,” Barton concluded.

Added Vittorio Colao, CEO of Vodafone Group, “We are pleased to reach agreement with the Board of Cable & Wireless Worldwide, who unanimously recommend our offer. The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations. We look forward to working with the management and employees of Cable & Wireless Worldwide to combine our expertise for the benefit of our customers and shareholders.”

UBS is acting as sole financial adviser to Vodafone and Vodafone Group. Barclays and Rothschild are acting as joint financial advisers to CWW.