SMART GRID
Abstract—
The challenges of climate change and the
continued growth of electricity demand are
putting increasing stress on the world’s
electricity network infrastructure.
prevailing design philosophy for the existing
electricity networks is a legacy from a period
when energy was relatively cheap and
plentiful and meeting rising demand was the
dominant driver. The world is now at the
point of transition to a new era where clean
energy will be at a premium, networks will
need to be flexible to the incorporation of
new low-carbon technologies and customers
will demand greater insight and control over
their own consumption. Smart grids are a
necessary element to enable this transition.
Smart grids are emerging as the next
strategic challenge for the energy sector and
as a key catalyst to achieve the vision of a
low-carbon economy. Ultimately, smart grids
empower consumers by providing
unprecedented visibility and control over
energy usage and will change the way we all
think about and buy energy. This new system
will also transform the relationship between
the utility and consumer from a one-way
transaction into a collaborative relationship
that benefits both, as well as
environment. The enabling technologies of
Smart Grids are presented in this paper.
Keywords— Smart Grids, Smart Meter,
Distribution
I. INTRODUCTION
Over the next two decades, assuming a limited
intervention scenario, the International Energy
Agency (IEA) expects to see aggregate global
energy demand to roughly double from current
The
levels as the population increases, new
consumers in the developing world acquire
electronic products and the growth in computing
consumption increases. This growth in demand
will coincide with a global drive towards lower
carbon generation sources in the battle with
climate change. It will also operate within the
context of an ageing power grid transmission
and distribution infrastructure that desperately
requires investment.
To successfully transition to a fully-fledged
low-carbon economy, the core infrastructure for
transmission and distribution of electricity needs
to be addressed. Smart technologies will be a
necessary part of this transformation, applying
telecommunications and computing
technologies developed over the last two
decades to the current and future electricity
infrastructure.
The global and local response to the
challenges of climate change will require an
integrated supply- and demand side response.
On the supply side, there is a drive towards
the sustainable, low-carbon electricity generation
(e.g. nuclear, wind power, solar, etc.) and
hydrocarbon substitution (e.g., bio fuels, biogas,
electric vehicles, etc.). On the demand side,
customers are increasingly seeking more
information and control over their consumption help respond to those challenges.Current Status
and, therefore, there are new technologies that of Power Grid
enable energy conservation and efficiency (e.g., Today’s power grid is composed of two
smart buildings, smart meters, demand response, networks. The first is an actively managed
etc.). Without investment in the smart grid transmission network, which supplies electricity
infrastructure to support these technologies, over longer distances at a higher voltage; the
natural limits will be reached as to what can be other, the distribution network, operates at a
achieved. The existing distribution grid lower voltage and takes electricity the last mile
infrastructure is primarily designed for one-way to individual homes and businesses. The
flow of electricity and limited consumption in traditional grid is represented in Fig.1.
the home. With the growing implementation of Combined, transmission and distribution
large-scale, intermittent renewable energy networks represent a significant technical
generation, distributed generation and electric legacy, mirrored in its investment requirements;
vehicles, the operational limits of the network as
it is currently designed will be reached. To
avoid stalling progress towards a sustainable and
low-carbon future, necessary investments must
be made in power grid and urban infrastructures
that will effectively (without significant
operational constraints) accommodate these
technologies at large-scale deployment.

II. SMART GRID : DEFINITION AND PURPOSE

In the following section we will describe the

power grid, how it operates today and how a Figure.1 Traditional grid and its Features

smarter grid will change the design and Unlike other industries, telecommunications

operations to lead to more efficient, effective for example, power utility infrastructure is

power delivery in the future. There are several composed of many analogue/electromechanical

challenges, which are leading decision-makers legacy systems that are prone to failure and

to consider this technology as an option and in blackouts. It is dominated by centralized

some cases a requirement. This section will generation disseminated via a relatively passive

explore the different capabilities which sit (limited control), and one-way or limited two-

within the smart grid construct and how they way communication network between utilities
and the end users. Residential energy
consumption is often projected rather than
measured. Grid maintenance is time-based and
often reinforced when system components fail
or reach their expected lifetime. Outage
management practice relies on consumers
notifying the utility that a power outage has
occurred. A significant volume of the electricity
that enters the network is lost through either
technical inefficiencies or theft from 4-10% in
Europe to more than 50% in some developing
city environments.
designed to accurately measure and
communicate consumption data in the home or
office environment. Confusion can arise if the
term “smart meter” is used synonymously with
“smart grid”. One of the objectives of this paper
is to provide some clarity regarding this
misunderstanding. The reality is that, with the
holistic smart grid, the smart meter becomes just
one more node on the network, measuring and
relaying flow and quality data.
Figure.2 Smart grid and its Features

A. Definition of Smart Grid The various fields a smart grid encompasses

is represented below in Fig.3
Smart grids incorporate embedded computer
processing capability and two-way
communications to the current electricity
infrastructure. A smart grid uses sensing,
embedded processing and digital
communications to enable the electricity grid to
be:
--Observable (able to be measured and
visualized)
--Controllable (able to manipulated and
Figure.3 An artist’s perception of the Smart
optimized)
Grid
-- Automated (able to adapt and self-heal)
--Fully integrated (fully interoperable with
existing systems and with the capacity to
incorporate a diverse set of energy sources).
The smart grid encapsulates embedded
intelligence and communications integrated at
any stage from power generation to end
consumption. To date, the majority of the
industry debate has centered on smart meters
and advanced metering infrastructure – devices
II. SMART GRID’S CHARACTERISTICS: energy storage (e.g. micro-generation). Case

A confluence of factors is driving the need for studies from Belgium demonstrate that as low as

investment. Smart grids have the ability to a 7% penetration of distributed wind turbines on

fundamentally change the way people interact the low voltage network can begin to cause

with their electricity supply. A smart grid will major problems on the distribution network. To

exhibit seven key characteristics: mitigate the intermittent nature of renewable

generation, the smarter grid can leverage
B. Self-healing and Adaptive:
embedded storage to smooth output levels.
A smart grid will perform real time self-
Without a smart grid, diurnal variations in
assessments to detect, analyze and respond to
generation output will typically require
subnormal grid conditions. Through integrated
renewables to be backed with fast ramp-up
automation, it will self-heal, restoring grid
fossil fuel based plants. Smart grids will also
components or entire sections of the network if
provide the necessary infrastructure for mass
they become damaged. It will remain resilient,
adoption of plug-in hybrid and electric vehicles,
minimizing the consequences and speeding up
ultimately enabling both scheduled dispatch of
the time to service restoration. The modernized
recharge cycles and “vehicle- to grid” capability.
grid will increase the reliability, efficiency and
Such networks will allow society to optimize the
security of the power grid and avoid the
use of low-carbon energy sources, support the
inconvenience and expense of interruptions – a
efforts to reduce the carbon intensity of the
growing problem in the context of ageing
transport sector and minimize the collective
infrastructure. In the US alone, interruptions in
environmental footprint.
the electricity supply cost consumers an
D. Enable Demand Response:
estimated US$ 150 billion a year [4]. It will
reduce vulnerability to the growing threats of By extending, the smart grid within the home

natural disasters (hurricanes, ice storms) as well (via a home area network), consumer appliances

as cyber-attacks and terrorism. and devices can be controlled remotely,

allowing for demand response. In the event of a
C. Integration of advanced and low-carbon
peak in demand, a central system operator
technologies:
would potentially be able to control both the
A smart grid will exhibit “plug and play”
amount of power generation feeding into the
scalable and interoperable capabilities. A smart
system and the amount of demand drawing from
grid will permit a higher transmission and
the system. Rather than building an expensive
distribution system penetration of renewable
and inefficient “peaking plant” to feed the spikes
generation (e.g. wind and photovoltaic solar
in demand, the system operator would be able to
energy resources), distributed generation and
issue and demand response orders that would
trigger a temporary interruption or cycling of
noncritical consumption (air conditioners, pool
pumps, refrigerators, etc.).
E. Asset Optimization And Operational
Efficiency:
A smart grid will enable better asset
utilization from generation all the way to the
consumer ends. It will enable condition- and
performance-based maintenance. A smart grid
will operate closer to its operational limits,
freeing up additional capacity from the existing
infrastructure; this remains an attractive
proposition when a US study demonstrated that
transmission congestion costs Eastern US
consumers US$ 16.5 billion per year in higher
electricity prices alone. Smart grids will also
drive efficiencies through reductions in
technical and non-technical line losses –
estimates are that 30% of distribution losses
could be mitigated.
F. Customer Inclusion:
A smart grid will involve consumers,
engaging them as active participants in the
electricity market. It will help empower utilities
to match evolving consumer expectation and
deliver greater visibility and choice in energy
purchasing. It will generate demand for cost-
saving and energy-saving products. In a world
where consumer expectations and requirements
are growing, smart grids will help educate the
average consumer, foster innovation in new
energy management services and reduce the
costs and environmental impact of the delivery
of electricity.
G. Power Quality:
A smart grid will have heightened power
quality and reductions in the occurrence of
distortions of power supply. As the load
demands increase on an exponential path, power
quality degradation will manifest as more of an
issue, in turn requiring distributed monitoring
and proactive mediation. This will confluence
with a decrease in tolerance for power quality
variances from modern industry, particularly the
hi-tech sector and the higher costs of such
quality issues as economies grow.
H. Market Empowerment:
A smart grid will provide greater transparency
and availability of energy market information. It
will enable more efficient, automated
management of market parameters, such as
changes of capacity, and enable a plethora of
new products and services. New sources of
supply and enhanced control of demand will
expand markets and bring together buyers and
sellers and remove inefficiencies. It will shift the
utility from a commodity provider to a service
provider.
II. IMPACT OF THE ENABLING TECHNOLOGIES
With all of the Smart Grid research
activity; it is desirable to investigate whether
Smart Grid technologies will have any design
implications for distribution systems. Will the
basic topology and layout of a Smart Grid be
similar to what is seen today? Alternatively,
will the basic topology and layout of a Smart
Grid look different? To answer these questions,
the design implications associated with the
major technological drivers will be examined.
After this, the next section will examine the
design implications of all of these technologies
considered together.
I. Advanced Metering Infrastructure
(AMI)
A Smart Grid will utilize advanced digital
meters at all customer service locations. These
meters will have two-way communication, be
able to remotely connect and disconnect
services, record waveforms, monitor voltage
and current, and support time-of-use and real-
time rate structures. The meters will be in the
same location as present meters, and therefore
will not have any direct design implications.
However, these meters will make a large
amount of data available to operations and
planning, which can potentially be used to
achieve better reliability and better asset
management.
Perhaps the biggest change that advanced
meters will enable is in the area of real-time
rates. True real time rates will tend to equalize
distribution system loading patterns. In
additions, these meters will enable automatic
demand response by interfacing with smart
appliances. From a design perspective, peak
demand is a key driver. If peak demand per
customer is reduced, feeders can be longer,
voltages can be lower, and wire sizes can be
smaller. Most likely, advanced metering
infrastructure will result in longer feeders. A
prototype of Smart Meter is shown in Fig.4.
Figure.4 Example of a smart meter in use in
Europe that has the ability to reduce load,
disconnect-reconnect remotely, and interface to
gas & water meters
J. Distribution Automation:
Distribution automation (DA) refers to
monitoring, control, and communication
functions located out on the feeder. From a
design perspective, the most important aspects
of distribution automation are in the areas of
protection and switching (often integrated into
the same device). There are DA devices today
that can cost-effectively serve as an “intelligent
node” in the distribution system. These devices
can interrupt fault current, monitor currents and
voltages, communicate with one-another, and
automatically reconfigure the system to restore
customers and achieve other objectives. The
ability to quickly and flexibly reconfigure an
interconnected network of feeders is a key perspective, system topology and system
component of Smart Grid. This ability, enabled protection will have to be planned together to
by DA, also (1) requires distribution ensure proper protection coordination for a
components to have enough capacity to accept variety of configurations.
the transfer, and (2) requires the protection K. Distributed Energy Resources:
system to be able to properly isolate a fault in
Distributed energy resources (DER) are
the reconfigured topology. Both of these issues
small sources of generation and/or storage that
have an impact on system design. Presently,
are connected to the distribution system. For
most distribution systems are designed based on
low levels of penetration (about 15% of peak
a main trunk three-phase feeder with single-
demand or less), DER do not have a large effect
phase laterals. The main trunk carries most
on system design as long as they have proper
power away from the substation through the
protection at the point of interconnection. A
center of the feeder service territory. Single-
Smart Grid has the potential to have large and
phase laterals are used to connect the main
flexible sources of DER. In this case, the
trunk to customer locations. Actual distribution
distribution system begins to resemble a small
systems have branching, normally open loops,
transmission system and needs to consider
and other complexities, but the overarching
similar design issues such as non-radial power
philosophy remains the same.
flow and increased fault current duty. Other
A Smart Grid does not just try to connect
design issues related to the ability of a
substations to customers for the lowest cost.
distribution system to operate as an electrical
Instead, a Smart Grid is an enabling system that
island, the ability of a distribution system do
can be quickly and flexibly be reconfigured.
relieve optimal power flow constraints, and the
Therefore, future distribution systems will be
ability of DER to work in conjunction as a
designed more as an integrated Grid of
virtual power plant [8].
distribution lines, with the Grid being connected
to multiple substations. Design, therefore, shifts L. Microgrids:

from a focus on feeders to a focus on a system Microgrids are generally defined as low
of interconnected feeders. Traditional voltage networks with DG sources, together
distribution systems use time-current with local storage devices and controllable
coordination for protection devices. These loads (e.g. water heaters and air conditioning).
devices assume that faster devices are They have a total installed capacity in the range
topologically further from the substation. In a of between a few hundred kilowatts and a
Smart Grid, topology is flexible and this couple of megawatts. The unique feature of
assumption is problematic. From a design microgrids is that, although they operate mostly
connected to the distribution network, they can
be automatically transferred to islanded mode,
in case of faults in the upstream network and
can be resynchronized after restoration of the
upstream network voltage. Within the main
grid, a microgrid can be regarded as a
controlled entity that can be operated as a single
aggregated load or generator and, given
attractive remuneration, as a small source of
power or as ancillary services supporting the
network.
Figure.5 Evolution of Smart Grid incorporating
distributed generation resources and virtual
utilities
M. Virtual Utilities:
Virtual utilities (or virtual electricity
market) adopt the structure of the internet-like
model and its information and trading
capability, rather than any hardware. Power is
purchased and delivered to agreed points or
nodes. Its source, whether a conventional
generator, Renewable Energy Source (RES) or
from energy storage is determined by the
supplier. The system is enabled by modern
information technology, advanced power
electronic components and efficient storage.
Fig.5 shows future grid system with all above-
mentioned smart features.
N. Other technologies:
Advanced power electronics will allow
variable-speed operation of electric generators
and motors to increase the overall efficiency of
the electricity supply chain as well as to
increase the quality of the power supply. They
may also extend the application of HVDC lines-
for example with superconducting cables- that
could enhance transmission and distribution.
I. SHAPING UP FOR THE FUTURE :
COMMUNICATION IS THE KEY
Throughout the development of the new
grids, communication at every level is essential.
Effective dialogue between stakeholders will
ensure that relevant information influences the
system design. The latest technologies will be
incorporated into the network and the approach
will remain flexible to accommodate further
developments. Once the networks are up and
running, two-way flows will exist between
provider and user.
It is important to emphasize the role of
Information and Communication Technology
(ICT) – in particular telecommunications – in
adapting electricity networks to the real time
actions and managing control distributed in the
network, which may not be fully supported by
the present internet generation. Even if the
internet protocol is universal, a serious effort is
needed to effectively use communications
equipment for a distributed real-time control of
electricity networks.
The real time performance of the internet as
communication means is known to be very
difficult to assess and it is critical given the
power balance needed at any instant in time. It
is possible to conceive such a network but the
real hardware, protocols, standards and markets
at all levels are more difficult to realize. The
question of international regulation must be
addressed, not only at the technical but also at
the political level.
A. A Period of Transition
In managing the transition to the internet-
like model, it may be useful to consider
concepts under development in a number of
projects under the European Commission’s
Framework Programs: for example, active
distribution networks.
The function of the active distribution
network is to efficiently link power sources
with consumer demands, allowing both to
decide how best to operate in real time. The
level of control required to achieve this is much
greater than in current distribution systems. It
includes power flow assessment; voltage
control and protection require cost-competitive
technologies as well as new communication
systems with more sensors and actuators than
presently in the distribution system. The
increase in required control leads to a dramatic
rise in information traffic derived from status
and ancillary data. This, along with the ability
to re-route power, means that the active
network represents a step towards the internet-
like model.
B. Active Management
The evolution of active management,
summarized in the next figure Fig.6, can be
described as follows:
--Initial stage: Extension of Distributed
Generation (DG) and RES monitoring and
remote control to facilitate greater connection
activity. Some connections will rely on bilateral
contracts with distributed generators for
ancillary services. Rules will have to be defined
to outline physical and geographical boundaries
of contracting.
--Intermediate stage: A management regime
capable of accommodating significant amounts
of DG and RES has to be defined: local and
global services and trading issues, adaptability
without information overload, control issues.
--Final stage: Full active power
management. A distribution network
management regime using real-time
communication and remote control to meet the
majority of the network services requirement.
The transmission and distribution networks are
both active, with harmonized and real-time
interacting control functions and efficient power Consider a distribution system with
flow. pervasive AMI, extensive DA, and high
The three stages are represented in the Fig.3 levels of DER. As mentioned in the
below: previous section, each of these
technologies has certain implications
for system design. However, a true
Smart Grid will not treat these
technologies as separate issues.
Rather, a Smart Grid will integrate the
functions of AMI, DA, and DER so that
the total benefits are greater than the

Figure.6 Stages in Active Management

II. AN INTEGRATED SMART GRID

Smart Grid solutions, including Figure.7.An Integrated Smart Grid

Distribution Automation, Asset Management,

Demand Side Management, Demand Response, sum of the parts. Much of the integration

Distributed Energy Management and Advanced of functions relates to communication systems,

Metering Infrastructure, allow utilities to IT systems, and business processes. System

identify and correct a number of specific system design of a distribution system, when it can take

issues through a single integrated, robust, and full advantage of AMI, DA, and DER working

scalable Smart Grid platform. together, a Smart Grid will increasingly look
like a mesh of interconnected distribution See figure 8 for a graphical representation of
backbones. potential Smart Grid benefits
This Grid will likely be operated radially
with respect to the transmission system, but
non-radially with respect to DER. Protection on
this backbone will therefore have to be “smart,”
meaning protection setting can adapt to
topology changes to ensure proper coordination.
Radial taps will still be connected to the 8: Smart Grid Benefits
backbone, but lateral protection will gradually
move away from fuses cutouts. DA on laterals
will become more common and laterals will Improved System Reliability:
increasingly be laid out in loops and more The Smart Grid will provide dynamic,
complex network structure. real-time monitoring, control and optimization
Currently, distribution systems are designed of grid operations and resources in a number of
to deliver power to customers within certain ways:
voltage tolerances without overloading Advanced network visualization,
equipment. In a Smart Grid, these criteria are distribution applications and outage defense
taken for granted. The driving design issues for systems will give utilities the capacity to detect,
Smart Grid will be cost, reliability, generation analyze and restore system faults before they
flexibility, and customer choice. Networks are jeopardize system integrity.
evolving and Smart Grids incorporate the latest Greater coordination among all
technologies to ensure that the networks will be participants in the system will trigger better
flexible, accessible, reliable and economical. price signals and a more efficient balance
An integrated Smart Grid is shown in Fig.7 between demand and supply.
Increased physical and cyber security, as
Smart Grid Benefits: well as special protection systems, will warn of
The goal of the Smart Grid is to use advanced security threats before they escalate.
information-based technologies to increase grid
efficiency, reliability and economy. Consumers, Significant reductions in residential peak
utilities, the environment and society as a whole demand energy consumption will be achieved
will benefit from better use of new and existing by providing real-time pricing and
energy delivery infrastructure. environmental signals in conjunction with
advanced in-home and distributed generation
technologies.
Advanced outage management systems and
distribution automation schemes will result in
fewer blackouts and local power disruptions
along with faster recovery times.
Increased Consumer Participation:
As an integral part of the Smart Grid,
homeowners will have the tools and
information to actively manage their power
consumption. Using smart meters and in-home
automation, utilities will be able to provide their
consumers with the next generation of energy
services. DSM programs in particular will
satisfy two basic consumer needs: the need to
understand the cost of one’s consumption
habits, and the need for greater choice in energy
services. At the utility end, DSM programs
allow utilities to reduce or shift peak demand,
minimizing capital expenditures and operating
expenses. Peak shifting also translates to
substantial environmental benefits in terms of
reduced line losses and improved dispatching of
generation units. Over time, DSM will also
encourage consumers to replace inefficient end-
use devices such as incandescent lighting and
embrace emerging products such as plug-in
hybrid electric vehicles.
Increased Efficiency:
Improving the operational efficiency
of the electric power system is one of the
greatest potential benefits of the Smart Grid.
Advanced power electronics will improve the
quality of the power supply by allowing for
variable-speed operation of electric generators
and motors, controlling reactive power. Utilities
may also extend the application of High
Voltage Direct Current (HVDC) lines to reduce
line losses in long-distance, interregional power
transmission. Broadband communications will
be used connect power producers and loads at
every voltage level at a very low cost,
permitting utilities to implement new strategies,
such as virtual power plants or power markets
for small producers or consumers.
Environmental Benefits:
The threat of global warming, air
pollution and resource degradation are forcing
government policy makers, the general public
and the utility industry to question the
sustainability of our present energy
infrastructure. The Smart Grid will allow
modern society to address these challenges as
they become ever more pressing. In particular,
greater efficiencies in the grid will help
alleviate the need for new generation,
transmission and distribution facilities, and
result in massive amounts of avoided emissions.
The mass deployment of Advanced Metering
Infrastructure (AMI) adopted by leading
utilities has already shed light on the ability for
Smart Grid technologies to reduce
consumption. Likewise, improved integration of
smaller generators in the distribution system
will increase the role of renewable energy
supplies in meeting regional demand.
Economic Benefits:
Improved load estimates and reduced
line losses will improve asset utilization and
translate to long-term avoidance of capital
expenditure for generation, transmission and
distribution projects. Operationally,
advantages of automated operations, predictive
maintenance, self-healing mechanisms
reduced outages will bring about major
reductions in labor costs, particularly those
associated with maintenance and outage
recovery. From a macroeconomic perspective,
the wide-scale implementation of the Smart
Grid will create new jobs, spur competitive
technology development and revitalize a sector
of the economy that is traditionally slow to
change.
Conclusions:
In conclusion, the smart grid brings both
benefits and design challenges to the utility, its
customers, and the associated technologists.
The electric power system is arguably the
world’s largest machine, if one defines a
machine as a series of interconnected parts that
form a common system. Transient stability, I2R
losses, communications, security, system
architecture and modeling are all parts of the
complex picture. There are several points to
progress toward the smart grid. Operational
the Technology and Information Technology
departments should become closer. Security has
and to be considered from the beginning of the
project. Data communications is often the
largest missing piece. The project needs to be
done in well-defined phases. Phase 0 is learning
of all existing and in-flight projects within the
utility. Systems integration is essential to
realizing benefits. The primary mission is still
to keep the lights on. The data deluge must be
managed. Knowledge capture is part of smart
grid planning and results. The work is not all
technical; there are strategy and change
components for the employees. To
accommodate a more flexible, dynamic, secure,
and diverse system, the smart grid is an
essential component on the path to the energy
future of 2030.