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Smart Power Grid



 
 
A smart grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce cost and increase reliability. Such a modernized electricity network
Grid (electricity)

An electrical grid is an interconnected network for delivering electricity from suppliers to consumers....
 is being promoted by many governments as a way of addressing energy independence
Energy security

Access to cheap energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries and the critical need for energy has led to significant vulnerabilities....
 or global warming
Global warming

Global warming is the increase in the Instrumental temperature record of the Earth's near-surface air and the oceans since the mid-twentieth century and its projected continuation....
 issues. For example, if smart grid technologies made the United States
United States

The United States of America is a Federal government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U...
 grid 5% more efficient, it would equate to eliminating the fuel and greenhouse gas
Greenhouse gas

Greenhouse gases are gases in an atmosphere that Absorption and Emission radiation within the Infrared#Different regions in the infrared range....
 emissions from 53 million cars.

The then President-elect, now President, Barack Obama asked the United States Congress
United States Congress

The United States Congress is the Bicameralism legislature of the Federal government of the United States of the United States of America, consisting of two houses, the United States Senate and the United States House of Representatives....
 "to act without delay" to pass legislation that included doubling alternative energy production in the next three years and building a new electricity "smart grid".






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A smart grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce cost and increase reliability. Such a modernized electricity network
Grid (electricity)

An electrical grid is an interconnected network for delivering electricity from suppliers to consumers....
 is being promoted by many governments as a way of addressing energy independence
Energy security

Access to cheap energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries and the critical need for energy has led to significant vulnerabilities....
 or global warming
Global warming

Global warming is the increase in the Instrumental temperature record of the Earth's near-surface air and the oceans since the mid-twentieth century and its projected continuation....
 issues. For example, if smart grid technologies made the United States
United States

The United States of America is a Federal government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U...
 grid 5% more efficient, it would equate to eliminating the fuel and greenhouse gas
Greenhouse gas

Greenhouse gases are gases in an atmosphere that Absorption and Emission radiation within the Infrared#Different regions in the infrared range....
 emissions from 53 million cars.

The then President-elect, now President, Barack Obama asked the United States Congress
United States Congress

The United States Congress is the Bicameralism legislature of the Federal government of the United States of the United States of America, consisting of two houses, the United States Senate and the United States House of Representatives....
 "to act without delay" to pass legislation that included doubling alternative energy production in the next three years and building a new electricity "smart grid". .

Overview

The term smart grid represents a vision for a digital upgrade of distribution
Electricity distribution

File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumers...
 and long distance transmission
Electric power transmission

Electric power transmission is the bulk transfer of electrical power , a process in the delivery of electricity to consumers. A power transmission grid typically connects power plants to multiple Electrical substation near a populated area....
 grids to both optimize current operations, as well as open up new markets for alternative energy
Alternative energy

Alternative energy is an umbrella term that refers to any source of usable energy intended to replace fuel sources without the undesired consequences of the replaced fuels....
 production. As with other industries, use of robust two-way communications, advanced sensors, and distributed computing technology will improve the efficiency, reliability and safety of power delivery and use. One United States Department of Energy
United States Department of Energy

The United States Department of Energy is a United States Cabinet-level department of the United States government of the United States responsible for Energy policy of the United States and nuclear safety....
 study calculated that internal modernization of US grids with smart grid capabilities would save between 46 and 117 billion dollars over the next 20 years. As well as these industrial modernization benefits, smart grid features could expand energy efficiency beyond the grid into the home by coordinating low priority home devices such as water heaters so that their use of power takes advantage of the most desirable energy sources. Smart grids can also coordinate the production of power from large numbers of small power producers such as owners of rooftop solar panels — an arrangement that would otherwise prove problematic for power systems operators at local utilities.

Although there are specific and proven smart grid technologies in use, smart grid is an aggregate term for a set of related technologies on which a specification is generally agreed, rather than a name for a specific technology. Some of the benefits of such a modernized electricity network include the ability to reduce power consumption at the consumer side during peak hours, called Demand side management; enabling grid connection
Grid connection

In grid , a power system network integrates Electric power transmission, Electricity distribution, distributed generators and loads that have connection points called busses....
 of distributed generation
Distributed generation

Distributed generation, also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or distributed energy, generates electricity from many small energy sources....
 power (with photovoltaic array
Photovoltaic array

A photovoltaic array is a linked collection of photovoltaic modules, which are in turn made of multiple interconnected solar cells. The cells convert Solar power into direct current electricity via the photovoltaic effect....
s, small wind turbine
Wind turbine

A wind turbine is a rotating machine which converts the kinetic energy in wind into mechanical energy. If the mechanical energy is used directly by machinery, such as a pump or grinding stones, the machine is usually called a windmill....
s, micro hydro
Micro hydro

Micro Hydro is a term used for hydroelectric power installations that typically produce up to 100 kW of power. They are often used in water rich areas as a Remote Area Power Supply ....
, or even combined heat power generators in buildings); incorporating grid energy storage
Grid energy storage

Grid energy storage is used to manage the flow of electricity in a grid . For large-scale load levelling on an interconnected electrical system, electric power generation send low value off-peak excess electricity over the electric power transmission to energy storage that become energy producers when electricity demand is greater....
 for distributed generation load balancing; and eliminating or containing failures such as widespread power grid cascading failure
Cascading failure

A cascading failure is a failure in a system of interconnected parts in which the failure of a part can trigger the failure of successive parts....
s. The increased efficiency and reliability of the smart grid is expected to save consumers money and help reduce emissions.

Smart grid is referred to by other names including Smart Electric Grid, Smart Power Grid, Intelligent Grid/Intelligrid, and FutureGrid.

History

Today's alternating current
Alternating current

In alternating current the movement of electric charge periodically reverses direction. An electric charge would for instance move forward, then backward, then forward, then backward, over and over again....
 power grid evolved after 1896, based in part on Nikola Tesla
Nikola Tesla

Nikola Tesla was an inventor and a mechanical engineer and electrical engineer. Tesla was born in the village of Smiljan near the town of Gospic, in Croatia ....
's design published in 1888 (see War of Currents
War of Currents

In the "War of Currents" era in the late 1880s, George Westinghouse and Thomas Edison became adversaries due to Edison's promotion of direct current for electric power distribution over alternating current advocated by Westinghouse and Nikola Tesla....
). Many implementation decisions that are still in use today were made for the first time using the limited emerging technology available 120 years ago. Specific obsolete power grid assumptions and features (like centralized unidirectional electric power transmission
Electric power transmission

Electric power transmission is the bulk transfer of electrical power , a process in the delivery of electricity to consumers. A power transmission grid typically connects power plants to multiple Electrical substation near a populated area....
, electricity distribution
Electricity distribution

File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumers...
, and demand-driven control) represent a vision of what was thought possible in the 19th century. Tesla and Thomas Edison
Thomas Edison

Thomas Alva Edison was an American inventor and businessman who developed many devices that greatly influenced life around the world, including the phonograph and the long-lasting, practical electric light bulb....
 might feel baffled by the workings of today's cell phones and laptops, but would feel in a very familiar world when observing the design, components and technologies used in today's grids.

Part of this is due to an institutional risk aversion
Risk aversion

Risk aversion is a concept in economics, finance, and psychology related to the behaviour of consumers and investors under uncertainty. Risk aversion is the reluctance of a person to accept a bargain with an uncertain payoff rather than another bargain with a more certain, but possibly lower, expected value....
 that utilities naturally feel regarding use of untested technologies on a critical infrastructure
Critical infrastructure

Critical infrastructure is a term used by governments to describe assets that are essential for the functioning of a society and economy. Most commonly associated with the term are facilities for:...
 they have been charged with defending against any failure, however momentary.

Over the past 50 years, electricity networks have not kept pace with modern challenges, such as:
  • security threats, from either energy suppliers or cyber attack
  • national goals to employ alternative power generation sources whose intermittent supply makes maintaining stable power significantly more complex
  • conservation goals that seek to lessen peak demand surges during the day so that less energy is wasted in order to ensure adequate reserves
  • high demand for an electricity supply that is un-interruptible
  • digitally controlled devices that can alter the nature of the electrical load and result in electricity demand that is incompatible with a power system that was built to serve an “analog economy.” For a simple example, timed Christmas lights can present significant surges in demand because they come on at near the same time (sundown or a set time). Without the kind of coordination that a smart grid can provide, the increased use of such devices lead to electric service reliability problems, power quality
    Power quality

    In its broadest sense, power quality is a set of boundaries that allows grid s to function in their intended manner without significant loss of performance or life....
     disturbances, blackouts, and brownouts.


Smart grid technologies have emerged from earlier attempts at using electronic control, metering, and monitoring. In the 1980s, Automatic meter reading
Automatic meter reading

Automatic meter reading, or AMR, is the technology of automatically collecting data from water meter or energy metering devices and transferring that data to a central database for billing and/or analyzing....
 was used for monitoring loads from large customers, and evolved into the Advanced Metering Infrastructure
Advanced Metering Infrastructure

Advanced Metering Infrastructure refers to systems that measure, collect and analyse energy usage, from advanced devices such as electricity meters, gas meters, and/or water meters, through various communication media on request or on a pre-defined schedule....
 of the 1990s, whose meters could store how electricity was used at different times of the day. Smart meter
Smart meter

A smart meter generally refers to a type of advanced meter that identifies consumption in more detail than a conventional meter; and optionally, but generally, communicates that information via some computer networking back to the local Public utility for monitoring and billing purposes ....
s add continuous communications so that monitoring can be done in real time, and can be used as a gateway to demand response
Demand response

In electricity grids, demand response is similar to Dynamic demand mechanisms to manage customer consumption of electricity in response to supply conditions, for example, having electricity customers reduce their consumption at critical times or in response to market prices....
-aware devices and "smart sockets" in the home. Early forms of such Demand side management technologies were dynamic demand
Dynamic demand (electric power)

Dynamic Demand is the name of a semi-passive technology for adjusting Demand responses on an electrical Grid . The concept is that by monitoring the frequency of the power grid, as well as their own control parameters, individual, intermittent loads would switch on or off at optimal moments to smoothen the overall system load, offsetting an...
 aware devices that passively sensed the load on the grid by monitoring changes in the power supply frequency. Devices such as industrial and domestic air conditioners, refrigerators and heaters adjusted their duty cycle to avoid activation during times the grid was suffering a peak condition. Beginning in 2000, Italy's Telegestore Project was the first to network large numbers (27 million) of homes using such smart meters connected via low bandwidth power line communication
Power line communication

Power line communication or power line carrier , also known as Power line Digital Subscriber Line , mains communication, power line telecom , or power line networking , is a system for carrying data on a conductor also used for electric power transmission....
. Recent projects use broader bandwidth power line (BPL) communications, or wireless technologies such as mesh networking that is advocated as providing more reliable connections to disparate devices in the home as well as supporting metering of other utilities such as gas and water.

Monitoring and synchronization of wide area networks were revolutionized the early 1990s when the Bonneville Power Administration
Bonneville Power Administration

The Bonneville Power Administration is an United States Federal agency based in the Pacific Northwest. BPA was created by an act of United States Congress in 1937 to market electric power from the Bonneville Dam located on the Columbia River and to construct facilities necessary to transmit that power....
 expanded its smart grid research with prototype sensors that are capable of very rapid analysis of anomalies in electricity quality over very large geographic areas. The culmination of this work was the first operational Wide Area Measurement System (WAMS) in 2000. Other countries are rapidly integrating this technology — China will have a comprehensive national WAMS system when its current 5-year economic plan is complete in 2012.

First cities with smart grids

The earliest, and still largest, example of a smart grid is the Italian system installed by Enel S.p.A. of Italy. Completed in 2005, the Telegestore project was highly unusual in the utility world because the company designed and manufactured their own meters, acted as their own system integrator, and developed their own system software. The Telegestore project is widely regarded as the first commercial scale use of smart grid technology to the home, and delivers annual savings of 500 million € at a project cost of 2.1 billion €..

In the US, the city of Austin, Texas
Austin, Texas

Austin is the capital of the U.S. state of Texas and the county seat of Travis County, Texas. Situated in Central Texas and part of the Southwestern United States, it is the fourth-largest city in Texas and the 16th-largest in the United States....
 has been working on building its smart grid since 2003, when its utility first replaced 1/3 of its manual meters with smart meters that communicate via a wireless mesh network
Mesh networking

Mesh networking is a way to route data, voice and instructions between node . It allows for continuous connections and reconfiguration around broken or blocked paths by ?hopping? from node to node until the destination is reached....
. It currently manages 200,000 devices real-time (smart meters, smart thermostats, and sensors across its service area), and expects to be supporting 500,000 devices real-time in 2009. Boulder, Colorado
Boulder, Colorado

Boulder is a Colorado municipalities#Home_Rule_Municipality that is the county seat and most populous city of Boulder County, Colorado, Colorado, in the United States....
 completed the first phase of its smart grid project in August 2008. Both systems use the smart meter as a gateway to the home automation
Home automation

Home automation is a field within building automation, specializing in the specific automation requirements of private homes and in the application of automation techniques for the comfort and security of its residents....
 network (HAN) that controls smart sockets and devices. Some HAN designers favor decoupling control functions from the meter, out of concern of future mismatches with new standards and technologies available from the fast moving business segment of home electronic devices.

Hydro One
Hydro One

Hydro One Incorporated delivers electricity across the Canada province of Ontario. It is a crown corporation wholly owned by the Government of Ontario....
, in Ontario
Ontario

Ontario is a Provinces and territories of Canada located in the Central Canada part of Canada, the largest by population and second largest, after Quebec, in total area....
, Canada is in the midst of a large-scale Smart Grid initiative, deploying a standards-compliant communications infrastructure from Trilliant. By the end of 2010, the system will serve 1.3 million customers in the province of Ontario. The initiative won the "Best AMR Initiative in North America" award from the Utility Planning Network.

Problem definition


The major driving forces to modernize current power grids can be divided in four, general categories.
  • Increasing reliability, efficiency and safety of the power grid.
  • Enabling decentralized power generation so homes can be both an energy client and supplier (provide consumers with interactive tool to manage energy usage).
  • Flexibility of power consumption at the clients side to allow supplier selection (enables distributed generation, solar, wind, biomass).
  • Increase GDP by creating more new, green-collar
    Green-collar worker

    A green-collar worker is a worker who is employed in the environmental sectors of the economy, or in the agricultural sector. Environmental green-collar workers satisfy the demand for green development....
     energy jobs related to renewable energy industry manufacturing, plug-in electric vehicles, solar panel and wind turbine generation, energy conservation construction.


Smart grid functions

Before examining particular technologies, a proposal can be understood in terms of what it is being required to do. The governments and utilities funding development of grid modernization have defined the functions required for smart grids. According to the United States United States Department of Energy
United States Department of Energy

The United States Department of Energy is a United States Cabinet-level department of the United States government of the United States responsible for Energy policy of the United States and nuclear safety....
's Modern Grid Initiative report, a modern smart grid must:

  1. Be able to heal itself
  2. Motivate consumers to actively participate in operations of the grid
  3. Resist attack
  4. Provide higher quality power that will save money wasted from outages
  5. Accommodate all generation and storage options
  6. Enable electricity markets to flourish
  7. Run more efficiently


Self-healing

Using real-time information from embedded sensors and automated controls to anticipate, detect, and respond to system problems, a smart grid can automatically avoid or mitigate power outages, power quality problems, and service disruptions.

Consumer participation

A smart grid, is, in essence, an attempt to require consumers to change their behavior around variable electric rates or to pay vastly increased rates for the privilege of reliable electrical service during high-demand conditions. Historically, the intelligence of the grid in North America has been demonstrated by the utilities operating it in the spirit of public service and shared responsibility, ensuring constant availability of electricity at a constant price, day in and day out, in the face of any and all hazards and changing conditions. A smart grid incorporates consumer equipment and behavior in grid design, operation, and communication. This enables consumers to better control (or be controlled by) “smart appliances” and “intelligent equipment” in homes and businesses, interconnecting energy management systems in “smart buildings” and enabling consumers to better manage energy use and reduce energy costs. Advanced communications capabilities equip customers with tools to exploit real-time electricity pricing, incentive-based load reduction signals, or emergency load reduction signals.

There is marketing evidence of consumer demand for greater choice. A survey conducted in the summer of 2007 interviewed almost 100 utility executives and sought the opinions of 1,900 households and small businesses from the U.S., Germany, Netherlands, England, Japan and Australia. Among the findings:

  1. 83% of those who cannot yet choose their utility provider would welcome that option
  2. Roughly two-thirds of the customers that do not yet have renewable power options would like the choice
  3. Almost two-thirds are interested in operating their own generation, provided they can sell power back to the utility


The real-time, two-way communications available in a smart grid will enable consumers to be compensated for their efforts to save energy and to sell energy back to the grid through net-metering
Net metering

Net metering is an electricity policy for consumers who own renewable energy facilities, such as Wind power, solar power or home fuel cells. "Net", in this context, is used in the sense of meaning "what remains after deductions" -- in this case, the deduction of any energy outflows from metered energy inflows....
. By enabling distributed generation resources like residential solar panels, small wind and plug-in electric vehicles
Plug-in

For the term plug-in, see* Plug-in , an auxiliary computer program* Plug-in hybrid electric vehicle* Plugging in , a mathematical procedure in which substitutions are made in a formula...
, smart grid will spark a revolution in the energy industry by allowing small players like individual homes and small businesses to sell power to their neighbors or back to the grid. The same will hold true for larger commercial businesses that have renewable or back-up power systems that can provide power for a price during peak demand events, typically in the summer when air condition units place a strain on the grid. This participation by smaller entities has been called the "democratization of energy"};— it is similar to former Vice President Al Gore
Al Gore

Albert Arnold "Al" Gore, Jr. is an United States environmentalism activist who served as the List of Vice Presidents of the United States Vice President of the United States from 1993 to 2001 under President of the United States Bill Clinton....
's vision for a Unified Smart Grid
Unified Smart Grid

Unified National Smart Grid is an ambitious proposal for a United States super grid that is a national Wide area synchronous grid relying on a high capacity backbone of electric power transmission lines linking all the nation's local electrical networks that have been upgraded to smart grids....
.

Resist attack

Smart grid technologies better identify and respond to man-made or natural disruptions. Real-time information enables grid operators to isolate affected areas and redirect power flows around damaged facilities.

High quality power

Outages and power quality issues cost US businesses more than $100 billion on average each year. It is asserted that assuring cleaner, more stable power, provided by smart grid technologies will reduce downtime and prevent such high losses.

Accommodate generation options

As smart grids continue to support traditional power loads they also seamlessly interconnect fuel cells, renewables, microturbines, and other distributed generation technologies at local and regional levels. Integration of small-scale, localized, or on-site power generation allows residential, commercial, and industrial customers to self-generate and sell excess power to the grid with minimal technical or regulatory barriers. This also improves reliability and power quality, reduces electricity costs, and offers more customer choice.

Enable electricity market

Significant increases in bulk transmission capacity will require improvements in transmission grid management. Such improvements are aimed at creating an open marketplace where alternative energy sources from geographically distant locations can easily be sold to customers wherever they are located.

Intelligence in distribution grids will enable small producers to generate and sell electricity at the local level using alternative sources such as rooftop-mounted photo voltaic panels, small-scale wind turbines, and micro hydro generators. Without the additional intelligence provided by sensors and software designed to react instantaneously to imbalances caused by intermittent sources, such distributed generation can degrade system quality.

Optimize assets

A smart grid can optimize capital assets while minimizing operations and maintenance costs. Optimized power flows reduce waste and maximize use of lowest-cost generation resources. Harmonizing local distribution with interregional energy flows and transmission traffic improves use of existing grid assets and reduces grid congestion and bottlenecks, which can ultimately produce consumer savings.

Features

Existing and planned implementations of smart grids provide a wide range of features to perform the required functions.

Load adjustment

The total load connected to the power grid can vary significantly over time. Although the total load is the sum of many individual choices of the clients, the overall load is not a stable, slow varying, average power consumption. Imagine the increment of the load if a popular television program starts and millions of televisions will draw current instantly. Traditionally, to respond to a rapid increase in power consumption, faster than the start-up time of a large generator, some spare generators are put on a dissipative standby mode. A smart grid may warn all individual television sets, or another larger customer, to reduce the load temporarily (to allow time to start up a larger generator) or continuously (in the case of limited resources). Using mathematical prediction algorithms it is possible to predict how many standby generators need to be used, to reach a certain failure rate. In the traditional grid, the failure rate can only be reduced at the cost of more standby generators. In a smart grid, the load reduction by even a small portion of the clients may eliminate the problem.

Demand response support

Demand response
Demand response

In electricity grids, demand response is similar to Dynamic demand mechanisms to manage customer consumption of electricity in response to supply conditions, for example, having electricity customers reduce their consumption at critical times or in response to market prices....
 support allows generators and loads to interact in an automated fashion in real time, coordinating demand to flatten spikes. Eliminating the fraction of demand that occurs in these spikes eliminates the cost of adding reserve generators, cuts wear and tear
Wear and tear

Wear and tear is a term for damage that naturally and inevitably occurs as a result of normal use or aging. It is used in a legal context for such areas as warranty contracts from manufacturers, which usually stipulate that damage due to wear and tear will not be covered....
 and extends the life of equipment, and allows users to cut their energy bills by telling low priority devices to use energy only when it is cheapest.

Currently, power grid systems have varying degrees of communication within control systems for their high value assets, such as in generating plants, transmission lines, substations and major energy users. In general information flows one way, from the users and the loads they control back to the utilities. The utilities attempt to meet the demand and succeed or fail to varying degrees (brownout, rolling blackout, uncontrolled blackout). The total amount of power demand by the users can have a very wide probability distribution
Probability distribution

In probability theory and statistics, a probability distribution identifies either the probability of each value of an unidentified random variable , or the probability of the value falling within a particular interval ....
 which requires spare generating plants in standby mode to respond to the rapidly changing power usage. This one-way flow of information is expensive; the last 10% of generating capacity may be required as little as 1% of the time, and brownouts and outages can be costly to consumers.

Greater resilience to loading

Although multiple routes are touted as a feature of the smart grid, the old grid also featured multiple routes. Initial power lines in the grid were built using a radial model, later connectivity was guaranteed via multiple routes, referred to as a network structure. However, this created a new problem: if the current flow or related effects across the network exceed the limits of any particular network element, it could fail, and the current would be shunted to other network elements, which eventually may fail also, causing a domino effect
Domino effect

The domino effect is a chain reaction that occurs when a small change causes a similar change nearby, which then will cause another similar change, and so on in linear sequence....
. See power outage
Power outage

A power outage refers to the short- or long-term loss of the electric power to an area.There are many causes of power failures in an electricity network....
. A technique to prevent this is load shedding by rolling blackout
Rolling blackout

A rolling blackout, also referred to as load shedding, is an intentionally-engineered electrical power outage. Rolling blackouts are a last resort measure used by an electricity utility company in order to avoid a total blackout of the power system....
 or voltage reduction (brownout).

Decentralization of power generation

Another element of fault tolerance of smart grids is decentralized power generation. Distributed generation
Distributed generation

Distributed generation, also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or distributed energy, generates electricity from many small energy sources....
 allows individual consumers to generate power onsite, using whatever generation method they find appropriate. This allows individual loads to tailor their generation directly to their load, making them independent from grid power failures. Classic grids were designed for one-way flow of electricity, but if a local sub-network generates more power than it is consuming, the reverse flow can raise safety and reliability issues. A smart grid can manage these situations.

Price signaling to consumers

In many countries, including Belgium, the Netherlands and the UK, the electric utilities have installed double tariff electricity meter
Electricity meter

An electric meter or energy meter is a device that measures the amount of electricity energy supplied to or produced by a House, business or machine....
s in many homes to encourage people to use their electric power during night time or weekends, when the overall demand from industry is very low. During off-peak time the price is reduced significantly, enabling users to save money for washing, etc. This idea will be further explored in a smart grid, where the price could be changing in seconds and electric equipment is given methods to react on that. Also, personal preferences of customers, for example to use only green energy
Green energy

Green energy is the term used to describe sources of energy that are considered to be environmentally friendly and non-pollution, such as geothermal power, wind power, and solar power and also hydroelectric...
, can be incorporated in such a power grid.

Technology

The bulk of smart grid technologies are already used in other applications such as manufacturing and telecommunications and are being adapted for use in grid operations. In general, smart grid technology can be grouped into five key areas:

Integrated communications

Some communications are up to date, but are not uniform because they have been developed in an incremental fashion and not fully integrated. In most cases, data is being collected via modem rather than direct network connection. Areas for improvement include: substation automation, demand response, distribution automation, supervisory control and data acquisition (SCADA
SCADA

SCADA stands for Supervisory Control And Data Acquisition. It generally refers to an industrial control system: a computer system monitoring and controlling a process....
), energy management systems, wireless mesh networks and other technologies, power-line carrier communications, and fiber-optics. Integrated communications will allow for real-time control, information and data exchange to optimize system reliability, asset utilization, and security.

Sensing and measurement

Core duties are evaluating congestion and grid stability, monitoring equipment health, energy theft prevention, and control strategies support. Technologies include: advanced microprocessor meters (smart meter
Smart meter

A smart meter generally refers to a type of advanced meter that identifies consumption in more detail than a conventional meter; and optionally, but generally, communicates that information via some computer networking back to the local Public utility for monitoring and billing purposes ....
) and meter reading equipment, wide-area monitoring systems, dynamic line rating, electromagnetic signature measurement/analysis, time-of-use and real-time pricing tools, advanced switches and cables, backscatter radio technology, and digital relays.

Smart meters

A smart grid replaces analog mechanical meters with digital meters that record usage in real time. Smart meters are similar to Advanced Metering Infrastructure
Advanced Metering Infrastructure

Advanced Metering Infrastructure refers to systems that measure, collect and analyse energy usage, from advanced devices such as electricity meters, gas meters, and/or water meters, through various communication media on request or on a pre-defined schedule....
 meters and provide a communication path extending from generation plants to electrical outlets (smart socket) and other smart grid-enabled devices. By customer option, such devices can shut down during times of peak demand.

Phasor measurement units

High speed sensors called PMUs distributed throughout their network can be used to monitor power quality and in some cases respond automatically to them. Phasors are representations of the waveforms of alternating current, which ideally in real-time, are identical everywhere on the network and conform to the most desirable shape. In the 1980s, it was realized that the clock pulses from global positioning system (GPS)
Global Positioning System

The Global Positioning System is a global navigation satellite system developed by the United States Department of Defense and managed by the United States Air Force 50th Space Wing....
 satellites could be used for very precise time measurements in the grid. With large numbers of PMUs and the ability to compare shapes from alternating current readings everywhere on the grid, research suggests that automated systems will be able to revolutionize the management of power systems by responding to system conditions in a rapid, dynamic fashion.

A Wide-Area Measurement Systems (WAMS) is a network of PMUS that can provide real-time monitoring on a regional and national scale. Many in the power systems engineering community believe that the Northeast blackout of 2003
Northeast Blackout of 2003

The Northeast Blackout of 2003 was a massive widespread power outage that occurred throughout parts of the northeastern United States and Midwestern United States, and Ontario, Canada on Thursday, August 14, 2003, at approximately 4:15 pm EDT , with virtually full restoration by the following day....
 would have been contained to a much smaller area if a wide area phasor measurement network was in place.

Advanced Components

Innovations in superconductivity
Superconductivity

Superconductivity is a phenomenon occurring in certain materials generally at very low temperatures, characterized by exactly zero electrical resistance and the exclusion of the interior magnetic field ....
, fault tolerance, storage, power electronics, and diagnostics components are changing fundamental abilities and characteristics of grids. Technologies within these broad R&D categories include: flexible alternating current transmission system devices, high voltage direct current, first and second generation superconducting wire, high temperature superconducting cable, distributed energy generation and storage devices, composite conductors, and “intelligent” appliances.

Advanced control

Power system automation
Power system automation

Power system automation is the application of Automation devices to the electricity Electric power transmission or electricity distribution systems....
 enables rapid diagnosis of and precise solutions to specific grid disruptions or outages. These technologies rely on and contribute to each of the other four key areas. Three technology categories for advanced control methods are: distributed intelligent agents (control systems), analytical tools (software algorithms and high-speed computers), and operational applications (SCADA, substation automation, demand response, etc). Using artificial intelligence
Artificial intelligence

Artificial intelligence is the intelligence of machines and the branch of computer science which aims to create it. Major AI textbooks define the field as "the study and design of intelligent agents,"...
 programming techniques, Fujian
Fujian

is one of the Province of China on the southeast coast of People's Republic of China. Fujian borders Zhejiang to the north, Jiangxi to the west, and Guangdong to the south....
 power grid in China created a wide area protection system that is rapidly able to accurately calculate a control strategy and execute it. The Voltage Stability Monitoring & Control (VSMC) software uses a sensitivity-based successive linear programming
Successive linear programming

SLP - Successive Linear ProgrammingLinear programming is a powerful technique for optimisation but the requirement that all constraints be linear can make it difficult to write models that represent the real world closely enough to produce useful answers....
 method to reliably determine the optimal control solution.

Improved interfaces and decision support

Information systems that reduce complexity so that operators and managers have tools to effectively and efficiently operate a grid with an increasing number of variables. Technologies include visualization techniques that reduce large quantities of data into easily understood visual formats, software systems that provide multiple options when systems operator actions are required, and simulators for operational training and “what-if” analysis.

Standards and groups

has created a family of international standards that can be used as part of the smart grid. These standards include IEC61850 which is an architecture for substation automation, and IEC 61970/61968 — the Common Information Model (CIM). The CIM provides for common semantics to be used for turning data into information.

The IEEE has created a standard to support synchrophasors — .

A User Group that discusses and supports real world experience of the standards used in smart grids is the .

There is a Utility Task Group within , which deals with smart grid related issues.

Government policy


Countries


Canada
The government of Ontario, Canada, through the in 2006, has mandated the installation of Smart Meters in all Ontario businesses and households by 2010.

China
As part of its current 5-year plan, China is building a Wide Area Monitoring system (WAMS) and by 2012 plans to have PMU sensors at all generators of 300 megawatts and above, and all substations of 500 kilovolts and above. All generation and transmission is tightly controlled by the state, so standards and compliance processes are rapid. Requirements to use the same PMUs from the same Chinese manufacturer and stabilizers conforming to the same state specified are strictly adhered to. All communications are via broadband using a private network, so data flows to control centers without significant time delays.

European Union
Development of smart grid technologies is part of the European Technology Platform
European Technology Platform

A European Technology Platform is a European network bringing together researchers, industry and other relevant stakeholders in a particular technological field in order to foster European research and development in the concerned area....
 (ETP) initiative and is called the SmartGrids Technology platform
European Technology Platform for the Electricity Networks of the Future

The European Technology Platform for the Electricity Networks of the Future is a European Commission initiative that aims at boosting the competitive situation of the European Union in the field of electricity networks, especially smart power grids....
 . The SmartGrids European Technology Platform for Electricity Networks of the Future began its work in 2005. Its aim is to formulate and promote a vision for the development of European electricity networks looking towards 2020 and beyond.

United States
Support for smart grids became federal policy with passage of the Energy Independence and Security Act of 2007
Energy Independence and Security Act of 2007

The Energy Independence and Security Act of 2007 is an Act of Congress concerning the energy policy of the United States which was introduced in the United States House of Representatives by United States Democratic Party as part of their 100-Hour Plan during the 110th United States Congress sponsored by Representative Nick Rahall of West V...
. The law, Title13, sets out $100 million in funding per fiscal year from 2008–2012, establishes a matching program to states, utilities and consumers to build smart grid capabilities, and creates a Grid Modernization Commission to assess the benefits of Demand response
Demand response

In electricity grids, demand response is similar to Dynamic demand mechanisms to manage customer consumption of electricity in response to supply conditions, for example, having electricity customers reduce their consumption at critical times or in response to market prices....
 and to recommend needed protocol standards.

Smart grids received further support with the passage of the American Recovery and Reinvestment Act of 2009
American Recovery and Reinvestment Act of 2009

File:Official seal of the American Recovery and Reinvestment Act of 2009.svgFile:Barack Obama signs American Recovery and Reinvestment Act of 2009 on February 17.jpg...
, which set aside $11 billion for the creation of a smart grid.

Obstacles

In Europe and the US, significant impediments exist to the widespread adoption of smart grid technologies, including:
  • regulatory environments that don't reward utilities for operational efficiency,
  • consumer concerns over privacy,
  • social concerns over "fair" availability of electricity,
  • limited ability of utilities to rapidly transform their business and operational environment to take advantage of smart grid technologies.
Before a utility installs an advanced metering system, or any type of smart system, it must make a business case for the investment. Some components, like the Power System Stabilizers (PSS) installed on generators are very expensive, require complex integration in the grid's control system, are needed only during emergencies, but are only of effective if other suppliers on the network have them. Without any incentive to install them, power suppliers don't. Most utilities find it difficult to justify installing a communications infrastructure for a single application (e.g. meter reading). Because of this, a utility must typically identify several applications that will use the same communications infrastructure – for example, reading a meter, monitoring power quality, remote connection and disconnection of customers, enabling demand response, etc. Ideally, the communications infrastructure will not only support near-term applications, but unanticipated applications that will arise in the future. Regulatory or legislative actions can also drive utilities to implement pieces of a smart grid puzzle. Each utility has a unique set of business, regulatory, and legislative drivers that guide its investments. This means that each utility will take a different path to creating their smart grid and that different utilities will create smart grids at different adoption rates.

Some features of smart grids draw opposition from industries that currently are, or hope to provide similar services. An example is competition with cable and DSL Internet providers from broadband over powerline internet access
Power line communication

Power line communication or power line carrier , also known as Power line Digital Subscriber Line , mains communication, power line telecom , or power line networking , is a system for carrying data on a conductor also used for electric power transmission....
. Providers of SCADA control systems for grids have intentionally designed proprietary hardware, protocols and software so that they cannot inter-operate with other systems in order to tie its customers to the vendor.

General economics developments

As customers can choose their electricity suppliers, depending on their different tariff methods, the focus of transportation costs will be increased. Reduction of maintenance and replacements costs will stimulate more advanced control.

A smart grid precisely limits electrical power down to the residential level, network small-scale distributed energy generation and storage devices, communicate information on operating status and needs, collect information on prices and grid conditions, and move the grid beyond central control to a collaborative network.

See also

  • Power line communication
    Power line communication

    Power line communication or power line carrier , also known as Power line Digital Subscriber Line , mains communication, power line telecom , or power line networking , is a system for carrying data on a conductor also used for electric power transmission....
  • Unified Smart Grid
    Unified Smart Grid

    Unified National Smart Grid is an ambitious proposal for a United States super grid that is a national Wide area synchronous grid relying on a high capacity backbone of electric power transmission lines linking all the nation's local electrical networks that have been upgraded to smart grids....
     (USA)
  • SuperSmart Grid
    SuperSmart Grid

    The SuperSmart Grid is a hypothetical wide area synchronous grid connecting Europe with northern Africa, the Middle East, Turkey and the IPS/UPS system of CIS countries....
  • Super Grid
    Super grid

    A super grid is a wide area transmission grid that makes it possible to trade high volumes of electricity across great distances. It is sometimes also referred to as a "mega grid"....
  • Wide area synchronous grid
    Wide area synchronous grid

    A wide area synchronous grid, or "interconnection" is a grid at a regional scale or greater that operates at a synchronized frequency and is electrically tied together during normal system conditions....
  • Pickens plan
    Pickens Plan

    The Pickens Plan is an energy policy proposal announced July 8, 2008 by United States businessman T. Boone Pickens. Pickens intends to reduce American dependence on imported oil by investing approximately United States dollar1 trillion in new wind farm for power generation, which he believes would allow the Natural_gas#Power_generation curre...
  • Vehicle-to-grid
    Vehicle-to-grid

    Vehicle-to-grid describes a system in which power can be sold to the Grid by an electric-drive motor vehicle that is connected to the grid when it is not in use for transportation....

Footnotes


External links

  • Free bi-monthly news letter with information on Smart Metering and the Smart Grid
  • Maintained by Smart Metering Project Team at the Energy Retail Association
    Energy Retail Association

    The Energy Retail Association , formed in 2003, is a Industry trade group that represents all the main electricity and gas suppliers in the domestic market in Great Britain....
     in the UK.
  • Data provided by Enernex, map created by Energy Retail Association
    Energy Retail Association

    The Energy Retail Association , formed in 2003, is a Industry trade group that represents all the main electricity and gas suppliers in the domestic market in Great Britain....
     project team in the UK.
  • Smart Grid Takes Off, Sustainable Industries Magazine.
  • Power meters help homeowners track and cut their energy use, The Christian Science Monitor.