Virtualisation: The next step in substation evolution
Author : Jurgen Resch, COPA-DATA
04 July 2025
The energy industry is rapidly evolving to meet the demands of a digital, decentralised, and decarbonised future. Among these advancements, virtualisation in substations can transform traditional systems into dynamic, flexible, and software-defined environments.
Here, Jurgen Resch, Industry Manager for Energy at automation supplier COPA-DATA, explores the concept of virtual substations, the benefits and challenges of virtualisation in PAC, and how software supports transformation.
A virtual substation represents the next evolution of digital substations, where all Protection, Automation, and Control (PAC) functions are executed in a software environment. Traditional Intelligent Electronic Devices (IEDs) are replaced by virtualised counterparts running on central servers. Key functions, including cybersecurity, switches, and firewalls, are centralised and managed dynamically through software platforms. Virtual substations enable utilities to consolidate hardware, enhance operational flexibility, and reduce costs.
Virtualisation decouples software applications from the underlying hardware, using virtual machines (VMs) managed by a hypervisor. A single server can host multiple VMs, each dedicated to specific functions. This approach not only reduces the physical hardware footprint but also simplifies maintenance and upgrades, making substations more agile and resilient.
Drivers for virtualisation
The push toward virtualisation is driven by several factors. Complexity is increasing with the integration of Distributed Energy Resources (DERs) like solar and wind into traditional grids. These resources are intermittent and place additional pressure onto grids, and as such demand advanced control and protection solutions, and virtual substations offer the flexibility and scalability to adapt to these evolving needs.
What’s more, virtualisation brings cost efficiency by reducing expenditure through hardware consolidation and lowering operational costs by streamlining maintenance processes. Meeting sustainability goals is another driver, as smarter energy management and reduced reliance on resource-intensive physical infrastructure contribute to these objectives. Standards like IEC 61850 also provide the interoperability and integration required for virtualised PAC systems, further encouraging the shift to virtualisation.
Virtualised PAC systems offer significant benefits. By replacing multiple IEDs with software-defined solutions, utilities can reduce their dependence on vendor-specific hardware. As already stated, these systems are also highly scalable and flexible, enabling easy adaptation to changing grid requirements.
Enhanced resilience is another advantage, as virtualised environments support failover mechanisms and improve overall system reliability. Centralised data collection within virtual substations facilitates better decision-making across areas like power quality management, fault detection, and energy optimisation.
Challenges in virtualisation
While virtualisation offers numerous advantages, it also introduces distinct challenges, particularly concerning availability and reliability. In a physical substation with IEDs, the failure of a single device typically affects only a small portion of the system, as each IED operates independently. By contrast, a virtual substation relies on a smaller number of redundant hardware components – often just two servers – making it appear less robust from a purely hardware-centric perspective.
However, the functional components of a virtual substation can be distributed into virtual machines (VMs) and containers, with each representing the functionality of a physical IED. This approach allows it to achieve a level of availability and reliability comparable to a physical substation when designed with appropriate redundancy and fault-tolerance mechanisms. Transitioning to this model requires a shift in mindset – from thinking in terms of hardware components, to focusing on virtualised resources like VMs and containers.
The IEC 61850 standard is key in the virtualisation of PAC systems. By defining protocols for communication and data exchange, IEC 61850 ensures interoperability between devices and systems from different vendors. Its support for sampled values (SV) and Generic Object-Oriented Substation Event (GOOSE) messaging is particularly significant in enabling real-time data communication in virtual substations.
The future of substation automation
Advanced software platforms can support the development of virtualised operations, and COPA-DATA’s zenon Energy Edition, for example, is an effective automation tool for substation virtualisation. With comprehensive support for IEC 61850 and advanced features including seamless redundancy, automated engineering, and role-based access control, zenon simplifies the transition to software-defined substations. zenon’s vendor-agnostic architecture supports diverse protocols and hardware, allowing flexible integration across a wide range of systems.
Preconfigured templates and object-oriented design streamline project complexity and reduce errors, while real-time visualisation and control enhance situational awareness. Additionally, zenon facilitates the deployment of PAC functions in virtual environments, ensuring reliable and secure operation.
As utilities prepare for the large-scale deployment of virtual substations over the next decade, the focus will be on validating technology, ensuring compliance, and adapting operational practices. Virtualisation represents a transformative opportunity to modernise substations, meet sustainability goals, and build a resilient, future-ready grid. COPA-DATA’s zenon can support the energy industry in this process, bridging the gap between traditional systems and the next generation of software-defined substations.
Explore automation solutions for substations here.
Contact Details and Archive...