Technical or Physical Model of the Future Power System

16.07.2026

In his personal blog, Serhiy Yermilov—Minister of Fuel and Energy of Ukraine in 2000–2001 and 2002–2004, former Chairman of the National Agency of Ukraine for Ensuring Efficient Use of Energy Resources, and Honored Power Engineer of Ukraine—continues a series of publications on the future architecture of Ukraine’s power system.

The author consistently builds a concept of a transformational transition from a centralized model to a modern digital power system based on Smart Grid principles.

In the fifth part of the blog, Serhiy Yermilov shifts from a strategic vision to the technical model of the future Integrated Power System (IPS) of Ukraine.

He describes its physical and digital architecture in detail, covering four interconnected layers: the physical grid, generation and distributed energy resources (DER), digital topology, and cyber security.

According to the author, such an integrated cyber-physical system, where flows of electricity, data, and control commands operate simultaneously and bi-directionally, must become the foundation of Ukraine’s power system by 2031.

What Should the 21st-Century Power System for Ukraine Actually Look Like? (Transformational Transition Strategy)

Part 5. Technical or Physical Model of the Future Power System

If we agree with the proposed concept, we can move on to the technical or physical model of the future power system, which in countries that started this work long ago is usually broken down into four layers:

Layer 1. Physical Grid Layer

This is the physical infrastructure for electricity transmission and distribution.

Transmission System Operator (TSO) Level

• Functions:Functions: synchronous operation of the IPS; trunk transmission; cross-border flows; systemic balancing; emergency control; integration with ENTSO-E.
• Assets: 220-750 kV overhead lines; trunk substations; relay protection and automation (RPA) systems; WAMS/PMU.

Distribution System Operator (DSO) Level

• Functions: active management of the distribution network; local balancing; DER integration; congestion management; power quality support.
• Assets: 0.4-150 kV networks; digital substations; advanced metering infrastructure (AMI); Active Distribution Management System (ADMS) platform.

Microgrid Level

• Functions:Functions: local optimization; local generation; local balancing; island mode; black start capabilities for critical loads.
• Typical Facilities:Typical Facilities: industrial parks; hospitals; water utilities; military facilities; municipal energy hubs.

Prosumer Level

• Functions:Functions: consumption; generation; storage; demand-side management; participation in flexibility markets.
• Typical Assets: rooftop solar PV; home BESS; heat pumps; EV/V2G.

Layer 2. Energy Resources Layer (Generation and DER)

In the 2031 system, production is no longer concentrated solely in large power plants.

Central Generation

• Remains the foundation: NPPs; HPPs; PSPPs; large CHPs; large WPPs and SPPs.
• Their role:Their role: systemic capacity; reserves; frequency regulation; base load demand coverage.

DER (Distributed Energy Resources)

• Become the second large loop of the system.Become the second large loop of the system.
• Composition:Composition: cogeneration; biogas; rooftop solar PV; local WPPs; battery energy storage systems (BESS) and storage batteries; electric vehicles (EV); demand response.
• Functions:Functions: local balancing; flexibility; redundancy; grid support.

VPP (Virtual Power Plant)

• A new aggregated level.A new aggregated level.
• Combines:Combines: thousands of DERs; consumer storage units; electric vehicles (EVs); active consumers.
• For the TSO or DSO,For the TSO or DSO, a VPP looks like a single dispatchable resource.

Layer 3. Digital Grid Layer (Information Topology)

This is where the main difference between the 2021 and 2031 models lies. The power system becomes data-driven.

Field Layer

• Devices: Remote Terminal Units (RTU); Intelligent Electronic Devices or microprocessor controllers (IED); smart meters; high-precision phasor measurement units (PMU); inverters; battery energy storage controllers (BESS controllers).
• Purpose:Purpose: telemetry; local automation; measurement.

Communication Layer

• Foundation:Foundation: fiber-optic network; reliable exchange protocols (IP/MPLS backbone); industrial (utility) Ethernet; backup LTE/5G channels.
• Principle:Principle: all nodes become observable.

Management Level

• Systems: SCADA; EMS; ADMS; DERMS; OMS; GIS.
• This is exactly where the digital twin of the grid is formeddigital twin.

Aggregation Level

• Platforms:Platforms: VPP; flexibility platforms; market platforms; balancing interfaces.

Management Principle:Management Principle: It is not the center that manages everything, but a local decision combined with global coordination.

Layer 4. Cyber Layer

In 2031, this is no longer a separate module. It is an end-to-end layer across the entire architecture.

TSO Level

• Protection of: dispatch centers; EMS; cross-border interfaces; critical substations.

DSO Level

• Protection of: ADMS; digital substations; AMI; field devices.

DER Level

• Protection of:Protection of: inverters; BESS; EV chargers; DERMS. This is where the highest number of new attack points emerges.

Core Principles:

• Zero Trust Architecture;
• IT/OT segmentation;
• PKI and digital certificates;
• SOC for the energy sector;
• OT traffic monitoring;
• Secure remote control;
• Cyber resilience of critical infrastructure.

All these levels operate simultaneously with:

• a physical power grid;
• a digital data transmission network;
• cyber security systems.

Thus, IPS-2031 can be defined as a single integrated cyber-physical power system in which flows of energy, information, and control commands circulate simultaneously from the TSO level to the prosumer level and back.

It is this bi-directionality of energy and information flows that represents the main difference from the 2021 architecture.

Serhiy Yermilov — Minister of Fuel and Energy of Ukraine in 2000–2001 and 2002–2004, former Chairman of the National Agency of Ukraine for Ensuring Efficient Use of Energy Resources, and Honored Power Engineer of Ukraine.