Private 5G for utilities: Benefits, use cases and deployment

Why are utility companies adopting private 5G?

Both the public and private versions of this fifth-generation mobile network offer ultra-fast speeds, low latency and massive device connectivity, said David Witkowski, senior member of IEEE, an association of electrical and computer engineers and other technologists.

Public and private 5G both use similar technologies, such as spectrum bands and network slicing. And they both support advanced applications like IoT connectivity and automation.

However, public 5G is operated by telecom providers and serves the general population -- consumers and enterprise users alike, Witkowski explained. In contrast, private organizations typically deploy and manage their own 5G infrastructure with tailored security and performance standards, making it the better choice for many organizations, including utilities, for mission-critical operations.

"If Wi-Fi, wired or public 4G/5G met those outcomes just as well, they'd use those instead, but right now private 5G is the best-fit option," M said.

Benefits of private 5G for utilities

Deploying private 5G offers advantages and benefits over public 5G, private LTE networks and Wi-Fi for all industries, according to several experts.

They include the following:

• Connectivity where it's wanted and needed. There are still regions where 5G standalone (SA) networks -- which employ 5G technology exclusively -- aren't yet available and are instead covered by 5G with a 4G core, known as non-standalone (NSA). Some regions still have only 4G, and some have no cellular service at all. "If you're in the petroleum industry and working the patch in Texas, cell phone coverage is not that great," Witkowski said. Organizations that need connectivity in such areas could use Wi-Fi, but private 5G is a more reliable and powerful option that supports more use cases.
• Management capabilities. Private 5G enables the owner to manage the network. For example, a utility could assign sensors that monitor critical infrastructure a higher priority than other devices for accessing the network, said Michele Polese, assistant research professor in electrical and computer engineering at Northeastern University.
• Complete control. "You have complete control over your infrastructure, of the underlying bytes and the applications," Polese said. The control extends to end devices, such as handsets deployed in remote locations, which don't have to be upgraded just because the public network was upgraded to new standards. "You don't want those to become obsolete," he said. "You can maintain devices longer than if you were on a public infrastructure."
• Customizability. Private 5G allows the owner to tailor the network to their use cases, coverage needs and the quality of service for different components, Polese said. Moreover, owners can change and adjust that customization as their needs change. "It doesn't have to be static."
• Flexibility. Utilities typically have a lot of legacy technology, some of which is decades old, said Swarun Kumar, a professor in Carnegie Mellon University's electrical and computer engineering department. The control and customization offered by private 5G is better suited for such environments.
• Enhanced privacy and security. Witkowski said private 5G offers what he termed "privacy through obscurity." It's harder to hack private 5G because the equipment is harder to access, and hackers generally don't see the payoff for taking so much time and effort to get into it.
• Strong authentication mechanisms. This is another security and management benefit that private 5G offers, Witkowski said.
• Higher power limits than Wi-Fi. "Wi-Fi operates under a license by right from the federal government, and that means Wi-Fi has a power limitation it has to adhere to," Witkowski said. But private 5G offers higher power limits, which makes it more powerful and enables owners of private 5G networks to put up bigger antennae and point signals farther out. "You can minimize the access points needed but still get to all the nodes you want to talk to, which reduces cost and complexity compared to Wi-Fi," he said.
• Lower costs. Although organizations should expect significant capital expenditure to implement and deploy a private network, the long-term costs could be less than using public 5G, Polese said.

Use cases for private 5G in utilities

Utilities, like companies in other sectors, are using 5G to drive modernization, support automation and enable process transformation. With private 5G enabling them to create connections wherever they need them on ultra-reliable, low-latency networks, organizations that produce, transmit and deliver electricity, water and gas are employing the technology for a variety of uses, including the following:

1. Advanced and automated metering. According to M, 5G enables the two-way communication required for smart meters and automated readings -- a big efficiency gain for the sector.
2. Automation. Private 5G supports real-time control and monitoring of facilities such as electric substations.
3. Remote monitoring and inspection. This is one of the most prolific 5G-enabled use cases in the utility industry, Polese said. Examples are plentiful. IoT sensors along water or gas pipelines detect anomalies, such as pressure drops or vibrations, with private 5G assuring that alerts are instantly and reliably conveyed to central operations. Water utilities can monitor tank levels, water quality and pump performance in real time, even in remote areas. Gas companies watch for leaks along hundreds of miles of pipelines. Electric companies can have substation video surveillance and mobile inspection robots. Offshore generation facilities can transmit data on weather and sea conditions and send real-time video feeds to shore. Additionally, M said all kinds of utilities can use 5G to support mobile inspection robots and drone inspections, both of which need the high speed, low latency and bandwidth provided by 5G.
4. Remote switching, grid control and grid load management. Utilities can remotely manage grid segments, reroute power and restore service during outages, improving operational agility, Kumar said. For example, private 5G enables dynamic load balancing during peak usage by transmitting real-time data from substations and consumers. The real-time data combined with AI also enables dynamic pricing.
5. Predictive maintenance. Kumar said 5G supports the vast amount of data that must be transmitted from the decentralized locations that characterize utility operations to edge or centralized locations for analysis, thereby allowing utilities to predict maintenance needs and prevent failures across larger parts of their infrastructure.
6. Field communications and tracking. Private 5G delivers connectivity wherever utilities want to deploy it, enabling communications among field crews and tracking capabilities so that utilities can more effectively manage crews, vehicles and equipment, Kumar said.

Deployment challenges and considerations

Utilities encounter various challenges when deploying private 5G networks and using the technology to improve operations, service and safety -- just as organizations of all kinds typically do when implementing any tech-driven initiative.

To start, utilities must acquire a license for their private 5G network, Witkowski said. The Federal Communications Commission is the license-granting authority in the United States. Licenses aren't automatic and can come with restrictions and limitations. Witkowski pointed specifically to licenses granted in coastal zones, where the U.S. Navy has priority to use certain spectrums.

Utilities also must allocate sufficient funds to buy and implement the infrastructure, which can be a significant cost. "Private 5G is a costly affair," M said.

Choosing and designing the right architecture is another challenge. M said utilities can choose between fully private standalone 5G, or hybrid architectures with public roaming, or parts that are complemented with Wi-Fi. Utilities must also match the infrastructure to the available spectrum. He said he advises utilities to pilot on two look-alike sites before scaling and to treat the infrastructure as operational technology -- not just an IT refresh.

Integration with existing systems and coexistence with legacy technologies can present additional challenges. "Private 5G is good for critical operations needing control, coverage and security," M said, adding that utilities should have realistic goals. "Do not think of it as a replacement for good old wired connections. It's a solution to be considered when wired is not an option."

What's next

Given the number of use cases and applications enabled by private 5G and the benefits they bring, private 5G adoption by utilities is expected to grow significantly.

SNS Telecom & IT, a global market intelligence and consulting firm, estimated in a December 2024 report that utilities will increase their spending on private 5G and 4G cellular networks by 17% over the next three years and account for $1.8 billion in cumulative infrastructure spending between 2024 and 2027.

M said he not only sees growth but also an expansion of applications enabled by 5G, with more edge-native use cases, computer vision, autonomous inspections and augmented reality support being deployed by utilities in the future.

Mary K. Pratt is an award-winning freelance journalist with a focus on covering enterprise IT and cybersecurity management.