What is a Smart Grid_ What are the Major Smart Grid Technologies_.pdf

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Home Blog What is a Smart Grid? What are the Major Smart Grid Technologies?
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What is a Smart Grid? What are the
Major Smart Grid Technologies?
06 June 2022
th
A smart grid (SG) is a modern electric grid with a two-way flow of electricity and data between
power utilities and consumers. Unlike a conventional electric grid, a smart grid is a digital
technology-based electricity network driven by automation, communication, and connectivity.
Imagine a resilient electric grid better equipped to manage varying energy demands and
better prepared to handle energy emergencies because of the intelligent two-way interactive
capacity.
The rise of the smart grid is due to its potential to improve grid resilience, energy
independence, and reliability, among other factors. Across the world, digital technology-
enabled grids are driving smarter resource use and helping consumers, as well as power
industry stakeholders reduce costs, save energy, and make better energy usage decisions.
A smart grid is a vital component of the global energy transition because a smart grid helps
in providing clean energy and sustaining long-term economic growth while enabling us to
achieve our carbon emission reduction goals.
Let us learn more about a smart grid and understand the future of the smart grid in detail.

Table of Contents
What is a Smart Grid?
How Does a Smart Grid Work?
Components of a Smart Grid
Smart Grid Technologies
Traditional Electricity Grid vs. Smart Grid
Benefits of a Smart Grid
Challenges in Deploying a Smart Grid
What Does the Future Look Like for a Smart Grid?
Wrapping Up
What is a Smart Grid?
Generally, a grid is an electricity network that delivers electricity from producers to
consumers. Also known as a “power grid” or an “electrical grid,” a grid consists of a combined
transmission and distribution network with a multitude of high-voltage transmission lines and
local distribution lines.
However, a smart grid is an advanced electric grid that uses communication, automation, and
IT systems to oversee power flows from points of generation to points of consumption.
An average family uses electricity for a variety of household purposes, including cooking,
heating, refrigeration, lighting, and EV (electric vehicle) charging. But a conventional power
grid is not equipped with advanced metering infrastructure (AMI) to track electricity usage or
measure electricity consumption.
Moreover, time-consuming and unreliable energy management processes are not ideal for
dealing with an electrical power outage and electricity network-related problems.
Governments, utility companies, power plant owners, electricity distribution companies
(DISCOMs), and other smart grid industry stakeholders benefit from smart grid development
and deployment for streamlining grid operations and maximizing grid-friendly and consumer-
friendly energy use.
How Does a Smart Grid Work?
The transition to a low-carbon economy is made easier by an energy-efficient and eco-friendly
grid such as a smart grid.
A smart grid connects every component of the electricity grid across various stages—from
power generation, transmission, storage, and distribution to electricity consumption.
Integrating each device on a “plug & play” basis creates an integrated data and energy grid.

In the event of an outage or equipment failure, a smart grid can automatically reroute
electricity due to its two-way interactivity. For example, identifying and isolating an outage
prevents a large-scale and prolonged blackout.
Compared to a conventional grid, a smart grid enables consumer participation at a deeper
level and a quicker demand response (DR).
Let’s see how a smart grid works:
What Is the Smart Grid?
What Is the Smart Grid?
A smart grid uses smart metering to identify, measure, and transmit the energy consumption
details of homes, businesses, etc. Enabling direct communication with a utility company
eliminates the practice of estimated bills. So, no more surprises on electric bills!
Components of a Smart Grid
A smart grid can connect millions of transmission lines to deliver electricity to an entire
country. Individual components work together within the smart grid architecture to increase
grid efficiency, reliability, resiliency, and stability. Furthermore, the modernized smart grid
promotes consumer control and cost savings through holistic grid management.
The use of embedded systems in a smart grid allows the processing of information and
communication between a wide variety of applications.
The main components of a smart grid are:
Cables
Circuit breakers
Collector nodes
Controllers
Distribution and transmission lines and control centers
Electric power generators

Electric power substations
Smart meters (SMs)
Smart Grid Technologies
A smart grid uses a broad range of technologies and communication networks to better
manage power generation, transmission, and distribution, and empower customers with real-
time control.
Major Smart Grid Technologies
Here are the major smart grid technologies that enable better energy management, optimize
capability utilization, and improve the overall performance of smart grids.
Advanced Demand Forecasting
Advanced demand forecasting leverages data analytics and machine learning (ML)
techniques and generates forecasting reports using autoregressive integrated moving
average (ARIMA) and other statistical techniques.
As an essential component of smart grid management, ARIMA forecasting predicts annual
electricity consumption and hourly electricity prices.
ARIMA forecasting also provides an additional layer of verification to detect cyber intrusion
attacks on smart meters deployed to measure the electricity consumption of residential and
non-residential consumers.
Advanced Metering Infrastructure (AMI)
Advanced metering infrastructure (AMI) is an integrated system of communication networks,
data management systems, and smart meters that helps improve customer service and
energy efficiency and manage costs effectively.
By enabling two-way communication with the customers and the utilities, AMI provides a
smart grid with a broad range of benefits, such as consumption forecast, effective cash
collection and theft detection, fault and outage detection, loss measurements, and time-
based pricing.
Big Data
Smart grid data has three core aspects, i.e., high velocity, large volume, and a wide variety.
Handling a large volume of data on time with limited resources is a major challenge for a
smart grid. This is where big data analytics can play a crucial role in increasing asset
utilization, efficiency, system reliability and stability, and enhancing customer satisfaction.
Without smart grid big data analytics, it is impractical to assess petabytes of data produced
by smart grid devices. Big data captures and analyzes unstructured data from different
endpoints in a smart grid.

In addition, big data facilitates efficient cost reduction, resource distribution, and better
customer service.
Distributed Energy Resources (DERs)
Distributed energy resources (DERs) provide energy and enhance local reliability while
improving grid stability and on-site fuel utilization.
DERs include electric vehicles, solar panels, small natural gas-fueled generators, and
controllable loads, such as electric water heaters and HVAC systems.
Successful DER integration improves the service quality and reliability of a grid. For example,
photovoltaic systems (PVs) use the photovoltaic effect to convert sunlight into electricity that
is then converted by an inverter into alternating current. The main benefit of using PVs is
lower utility bills from reduced grid-provided electricity.
Non-intrusive Load Monitoring (NILM)
Non-intrusive load monitoring (NILM) or non-intrusive appliance load monitoring (NIALM)
identifies the individual energy consumption of households and industrial facilities.
Breaking down the aggregate energy consumption (of active appliances) into components
and providing diagnostic information is useful for identifying energy-consuming or
malfunctioning appliances.
Furthermore, consumers can schedule the most cost-effective time to use energy-intensive
appliances and monitor and manage energy expenses according to their power consumption.
Vehicle-to-Grid (V2G)
Also known as vehicle-grid integration (VGI), vehicle-to-grid (V2G) technology transfers
unused power from a vehicle into the smart grid. An electric vehicle (EV) battery is a cost-
efficient form of energy storage.
V2G helps balance electricity consumption spikes and reduce overload on the power grid
during peak hours.
For example, V2G can feed energy (unused battery capacity) back to the power grid from an
electric car’s battery to improve grid stability and maximize the benefits of renewable energy.
Established and Emerging Smart Grid Communication
Networks
HAN
A smart meter provides power to household appliances through the home area network
(HAN) that uses various technologies like Bluetooth, Wireless Ethernet or Wired Ethernet, and
Zigbee. HAN connects home appliances with the smart meter that identifies power
consumption and sends the consumption details to the server for billing.

NAN
A neighborhood area network (NAN) is an outdoor access network that connects distribution
automation devices and smart meters to WAN gateways like RF (radio frequency) collectors
and field devices (such as intelligent electronic devices (IEDs)). NAN enables data collection
from customers and supports WAN-premise area communication.
WAN
A wide area network (WAN) uses fiber optics, 3G/LTE (Long Term Evolution)/GSM (Global
System for Mobile Communication), or WiMAX (Worldwide Interoperability for Microwave
Access) for communication between a smart meter, suppliers, and the utility server. A smart
meter sends notifications it receives (via HAN) from the devices to the suppliers using WAN.
LoRaWAN
As a widely used IoT (Internet of Things) technology, LoRa (long range) is a long-range, low-
power wireless platform ideal for diverse applications, such as energy management,
infrastructure efficiency, and disaster prevention.
Smart electricity metering solutions and smart grid networks based on the LoRaWAN® (Long
Range Wide Area Network) network protocol can better understand power demand, easily
detect power outages, enhance connectivity, and identify underperforming assets.
Moreover, LoRaWAN is compatible with worldwide networks and ensures interference-free
transmission to read heat meter consumption data remotely.
Traditional Electricity Grid vs. Smart Grid
Over the years, centralized electricity generation from power plants has gradually transitioned
toward a distributed energy resource for adapting to a dynamic energy industry and elevating
the energy experience for consumers.
The need to update the traditional electricity grid to a smart grid stemmed from several
reasons, such as:
Availability of more renewable energy and connected technologies
Deregulation of the energy market
Electricity production changes
Growth of electric vehicles
Metering evolution
Need for remote grid management
Renewable energy directives
Rise of microgeneration and isolated microgrids
The advent of the prosumer (one who produces, consumes, shares, and sells energy)
Let us look at the key differences between a traditional electricity grid and a smart grid:

Traditional Electricity Grid Smart Grid
• Electromechanical system • Digital smart grid system
• Unidirectional information/power flow ( one-way communication) • Bidirectional information/power flow (two-way communication)
• Centralized power generation • Distributed power generation
• Radial grid topology • Network grid topology
• Manual monitoring (no real-time monitoring) • Comprehensive real
-time monitoring
• Manual restoration during outage recovery • Self-reconfiguration (self-healing) during outage recovery
• A utility company has total control. • Customer participation is better and more.
• There is a higher risk of blackouts and failures.
• Lower risk of power outages due to the adaptive and islanding
properties.
• Absence of energy storage • Good scope for energy storage
• Slow response time • Quick response time
• Low sensor deployment • High sensor deployment (full grid sensor layout)
• Low energy efficiency • High energy efficiency
• Minimal RER (renewable energy resource) integration • Large-scale RER integration
• Less environmentally friendly • More environmentally friendly
• Few user options • More user options
Source: Blackridge Research & Consulting
Key Differences Between a Traditional Electricity Grid and a Smart Grid
Benefits of a Smart Grid
Monitoring and optimizing the interlinked components of an energy system are essential to
ensure a reliable and efficient power supply while reducing energy consumption and costs.
How does a smart grid improve the efficiency and reliability of an energy system? A smart
grid uses “smart meters” to minimize energy waste and maximize energy use.
Smart meters or smart measurement systems are replacing conventional electricity meters.
Smart meters help in calculating the power generation, recording voltage failures, and
providing grid operators with actionable data.
Smart Meter Benefits
A smart meter can:
Decrease grid load by reducing the demand for electricity during peak periods.
Offer better flexibility to consumers in leveraging account plans and “customized” tariffs.
Provide greater network reliability by using grid capacity effectively.
Provide visual feedback on consumption or power usage patterns to help consumers save
on electricity costs.
Additional Benefits of a Smart Grid
Integrating established power technology with advanced analytics, automation technologies,
and smart devices empowers a smart grid to respond faster to consumer demand and
potential electrical network incidents.

A smart grid provides additional benefits, such as:
Detect fraud and electrical network faults early for incident prevention
Enable utilities to regulate electricity usage and lower operating costs
Increase the safety of grid staff and suppliers
Initiate a timely demand response (DR) to reduce the strain on power companies
Prevent electricity theft through meter tampering
Recognize the maintenance requirements of networked assets
Reduce pollutant emissions like CO2, NO2, and SO2
Challenges in Deploying a Smart Grid
Smart grid deployment is not without its challenges. Some of the significant challenges in
installing and maintaining a smart grid include:
Timing Synchronization
Precision timing synchronization is crucial for real-time measurement and control (within and
across substations), fault detection and location, system stability maintenance, etc. If not
addressed properly, timing discontinuities have a major impact on grid efficiency and
flexibility.
Multicast Tree Delay
Smart grid wide area control systems (WACS) require real-time data communications support
with low latency. It is necessary to identify the multicast tree with a minimum end-to-end
transmission delay of command and control (C & C) messages to remote devices.
Interoperability
Communication stack and protocol heterogeneity can lead to interoperability issues between
applications, devices, and systems. Successful interoperability is a must to make end-to-end
secure communication possible and leverage existing grid network infrastructure.
Malicious Code Infection
A communication-enabled smart grid can be compromised physically or remotely by a
malicious code infection. In addition, non-tamper-resistant SG devices are subject to the risk
of getting easily compromised (physically).
Remote Deployment Safety
Smart grid devices deployed at a large scale in remote places are easily accessible with no
physical perimeter protection. Robust SG security solutions are mandatory to prevent
tampering with the SG devices.
Resource Constraints
Limited resources prove to be a major drawback during the massive deployment of smart grid
solutions, especially security solutions based on public-key cryptography (PKI).

Other challenges in smart grid installations comprise the criticality of data delivery,
impersonation (identify spoofing), data tampering, and low accessibility to electricity in
underdeveloped nations.
However, advancements in smart grid technology are facilitating the inclusion of vital security
features, such as authentication, authorization and control access, confidentiality, data
integrity, and end user’s privacy.
In addition, smart grid data protection and standardization are also gaining momentum in
keeping with the legal framework applicable for individual projects.
What Does the Future Look Like for a Smart
Grid?
The future outlook looks bright for a smart grid. According to Blackridge Research &
Consulting, the global smart grid market
(https://www.blackridgeresearch.com/reports/global-smart-grid-market) is expected to grow
at a CAGR of 15.5% during the forecast period 2022–2028.
The requirement for a smart grid is going to get bigger with key drivers, such as:
Accelerating demand for power system reliability and resiliency
Booming renewable energy sources (such as solar power) market
Growing R&D in smart grid technologies and usage of smart appliances
Increasing concerns about environmental protection
Increasing customer choice and participation
Rising global power consumption and electrification of various sectors
Soaring investments in smart grid infrastructure (in different countries, including China,
Europe, and the United States)
Surging demand for asset optimization and energy storage
As the backbone of the modern smart city, a smart grid leverages technology-driven
innovation to provide cost-effective, consistent, and clean energy while improving asset
management and reducing T&D (transmission and distribution) losses.
A smart grid is a hallmark of a smart city that thrives on making smart energy available for
consumers.
Grid modernization is essential to replace the aging electric grid infrastructure with a strong
and responsive smart grid. Several smart grid improvements and smart grid initiatives
(planned, undertaken, and in progress) are optimizing the potential of smart grid
technologies.
Let us look at a few examples below:

https://www.blackridgeresearch.com/blog/what-is-a-smart-grid-what-are-the-major-smart-grid-technologies#:~:text=The requirement for a smart… 10/12
The Electric Power Research Institute (https://www.epri.com/) (EPRI) conducted the global
smart grid implementation assessment to assess the development and deployment of smart
grid projects worldwide.
Duke Energy (https://www.duke-energy.com/home)—one of the largest energy holding
companies in the U.S.—is investing heavily in smart grid technologies for a more customer-
centric, efficient, and reliable grid.
Duke Energy has partnered with government agencies, research labs, utilities, and vendors to
develop and commercialize the Open Field Message Bus (https://www.duke-energy.com/our-
company/about-us/smart-grid/coalition) (OpenFMB™). This field device interoperability
framework aims to reduce implementation complexity and integration costs.
The Government of India established National Smart Grid Mission
(https://www.nsgm.gov.in/en/nsgm) (NSGM) to plan and monitor smart grid policy and
program implementation in the country. NSGM also offers capacity-building and training
support to State Level Project Management Units (SLPMUs) for smart grid activities.
Schneider Electric (https://www.se.com/ww/en/)’s smart grid solutions are valuable in
building a decarbonized, decentralized, and digitized world. For example, the EcoStruxure™
Grid provides an end-to-end software cycle to help electricity utilities mitigate cyber risk and
sustain operational confidence.
Wrapping Up
Using IT in the energy sector is transforming how energy consumption is measured and
managed across local, state, and national-level energy systems. Smart grids make it easier to
establish efficient links between power grids, power-generating facilities, and power
consumers.
Active consumer participation in tracking electricity usage through smart meters is also
helping utility companies provide better control over energy usage to consumers.
Furthermore, government policies, grants, subsidies, and other utility incentive programs are
enhancing smart grid adoption and promoting energy-efficiency projects, globally.
In the coming years, smart grid devices and systems will play a significant role in fulfilling the
energy supply needs of businesses, utilities, industrial and residential customers.
Augmenting or replacing traditional grid applications with smart grid applications is a proven
way to provide a more dependable, efficient, secure, and versatile power system with a
positive environmental impact.
A smart grid is an agile and adaptable electricity grid capable of meeting all types of energy
needs. In the future, there are only greater possibilities ahead for the new-age smart grid.

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