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A smart grid is a modernized electrical grid that uses analogue[1] or digital information and

communications technology to gather and act on information, such as information about the
behaviours of suppliers and consumers, in an automated fashion to improve the efficiency,
reliability, economics, and sustainability of the production and distribution of electricity.[2]
Electronic power conditioning and control of the production and distribution of electricity are
important aspects of the smart grid.
Smart grid policy is organized in Europe as Smart Grid European Technology Platform.[3] Policy
in the United States is described in 42 U.S.C. ch. 152, subch. IX § 17381.
Roll-out of smart grid technology also implies a fundamental re-engineering of the electricity
services industry, although typical usage of the term is focused on the technical infrastructure.[4]


1 Background
o 1.1 Historical development of the electricity grid
o 1.2 Modernization opportunities
o 1.3 Definition of "smart grid"
o 1.4 Early technological innovations

2 Features of the smart grid
o 2.1 Reliability
o 2.2 Flexibility in network topology
o 2.3 Efficiency

2.3.1 Load adjustment/Load balancing

2.3.2 Peak curtailment/leveling and time of use pricing

o 2.4 Sustainability
o 2.5 Market-enabling

2.5.1 Demand response support

2.5.2 Platform for advanced services

2.5.3 Provision megabits, control power with kilobits, sell the rest

3 Technology
o 3.1 Integrated communications
o 3.2 Sensing and measurement

3.2.1 Smart meters

3.2.2 Phasor measurement units

o 3.3 Other Advanced components

3.3.1 Distributed power flow control

3.3.2 Smart power generation using advanced components

o 3.4 Advanced control
o 3.5 Improved interfaces and decision support

4 Research
o 4.1 Major programs
o 4.2 Smart grid modelling

5 Economics
o 5.1 Market outlook
o 5.2 General economics developments

5.2.1 US and UK savings estimates and concerns

6 Oppositions and concerns
o 6.1 Security

7 Other challenges to adoption

with thousands of 'central' generation power stations delivering power to major load centres via high capacity power lines which were then branched and divided to provide power to smaller industrial and domestic users over the entire supply area.1 OpenADR Implementations  8.1. By the 1960s. Siting of hydro-electric dams in mountain areas also strongly influenced the structure of the emerging grid. Nuclear power plants were sited for availability of cooling water.3 United States  9 Guidelines. the electricity grid reached the . Finally. standards and user groups  10 See also  11 References  12 External links Background[edit] Historical development of the electricity grid[edit] The first alternating current power grid system was installed in 1886.2 United Kingdom  8. and demand-driven control. The topology of the 1960s grid was a result of the strong economies of scale: large coal-. due to efficiency-boosting features that can be cost effective only when the stations become very large. road or port supply lines).1 China  8. and were eventually interconnected for economic and reliability reasons. gasand oil-fired power stations in the 1 GW (1000 MW) to 3 GW scale are still found to be costeffective. electricity distribution. or else close to rail. fossil fuel-fired power stations were initially very polluting and were sited as far as economically possible from population centres once electricity distribution networks permitted it.1. Power stations were located strategically to be close to fossil fuel reserves (either the mines or wells themselves. the electric grids of developed countries had become very large.[5] At that time. the grid was a centralized unidirectional system of electric power transmission.o 7.1 Power Theft / Power Loss  8 Deployments and attempted deployments o 8. In the 20th century local grids grew over time.1. mature and highly interconnected. By the late 1960s.

The rapidly falling costs point to a major change from the centralised grid topology to one that is highly distributed.[6] Modernization opportunities[edit] Since the early 21st century. The relatively low utilisation of these peaking generators (commonly. and reduce the number of turbines that needed to be turned off overnight. called into question the imperative for large. The metering capabilities of the 1960s grid meant technological limitations on the degree to which price signals could be propagated through the system. heating.[7] Power from photovoltaic cells (and to a lesser extent wind turbines) has also. to facilitate the connection of sources to the otherwise highly controllable grid. Through the 1970s to the 1990s. electricity demand patterns were established: domestic heating and air-conditioning led to daily peaks in demand that were met by an array of 'peaking power generators' that would only be turned on for short periods each day. and consumers demanded ever higher levels of reliability. especially at peak times. Towards the end of the 20th century. and entertainment. electricity was depended on for industry. together with the necessary redundancy in the electricity grid. In parallel. and so the need for more sophisticated control systems became apparent. In some areas. with only outlying regional areas remaining 'off-grid'. centralised power stations. as well as dual-tariff arrangements where night-time power was charged at a lower rate than daytime power. fixed-tariff arrangements were commonly put in place. Technological limitations on metering no longer force peak power prices to be averaged out and passed on to all consumers equally. Finally. The motivation for dual-tariff arrangements was the lower night-time demand. growing concern over terrorist attack in some countries has led to calls for a more robust energy grid that is less dependent on centralised power stations that were perceived to be potential attack targets. lighting. growing concerns over environmental damage from fossil-fired power stations has led to a desire to use large amounts of renewable energy. Increasingly. Dual tariffs made possible the use of low-cost night-time electrical power in applications such as the maintaining of 'heat banks' which served to 'smooth out' the daily demand. Dominant forms such as wind power and solar power are highly variable. resulting in poor power quality including blackouts. Because of limited data collection and processing capability during the period of growth of the grid. significantly. could not keep up with this demand. gas turbines were used due to their relatively lower capital cost and faster start-up times). growing demand led to increasing numbers of power stations. Metering of electricity consumption was necessary on a per-user basis in order to allow appropriate billing according to the (highly variable) level of consumption of different users.overwhelming majority of the population of developed countries. India and Brazil were seen as pioneers of smart grid deployment. power cuts. supply of electricity.[8] . with power being both generated and consumed right at the limits of the grid. some developing countries like China. resulted in high costs to the electricity companies. In the 21st century. communication. opportunities to take advantage of improvements in electronic communication technology to resolve the limitations and costs of the electrical grid have become apparent. and brownouts. thereby improving the utilisation and profitability of the generation and transmission facilities. which were passed on in the form of increased tariffs.

metering. automatic meter reading was used for monitoring loads from large customers. is now included in the general concept of the smart grid. Electric utilities now find themselves making three classes of transformations: improvement of infrastructure. Devices such as industrial and domestic air conditioners. Colorado (2008).Definition of "smart grid"[edit] A common element to most definitions is the application of digital processing and communications to the power grid. and the smart grid in Boulder. In the 1980s. while others used wireless technologies such as mesh networking promoted for more reliable connections to disparate devices in the home as well as supporting metering of other utilities such as gas and water. making data flow and information management central to the smart grid.[7] Monitoring and synchronization of wide area networks were revolutionized in the early 1990s when the Bonneville Power Administration 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.[12] The earliest deployments of smart grids include the Italian system Telegestore (2005). and evolved into the Advanced Metering Infrastructure of the 1990s. refrigerators and heaters adjusted their duty cycle to avoid activation during times the grid was suffering a peak condition. Early forms of such demand side management technologies were dynamic demand aware devices that passively sensed the load on the grid by monitoring changes in the power supply frequency. Features of the smart grid[edit] . the mesh network of Austin.[9] Smart meters add continuous communications so that monitoring can be done in real time. and can be used as a gateway to demand response-aware devices and "smart sockets" in the home. whose meters could store how electricity was used at different times of the day. See Deployments and attempted deployments below. Italy's Telegestore Project was the first to network large numbers (27 million) of homes using smart meters connected via low bandwidth power line communication. and integration of the new grid information flows into utility processes and systems is one of the key issues in the design of smart grids. Various capabilities result from the deeply integrated use of digital technology with power grids. addition of the digital layer. especially substation and distribution automation. and business process transformation. Much of the modernization work that has been going on in electric grid modernization. Early technological innovations[edit] Smart grid technologies emerged from earlier attempts at using electronic control.[10] Some experiments used the term broadband over power lines (BPL). which is the essence of the smart grid. necessary to capitalize on the investments in smart technology. and monitoring. Texas (since 2003). The culmination of this work was the first operational Wide Area Measurement System (WAMS) in 2000. but additional capabilities are evolving as well. Beginning in 2000.[11] 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. called the strong grid in China.

wind turbines. for example turning off air conditioners during short-term spikes in electricity price. reducing the voltage when possible on distribution lines through Voltage/VAR Optimization (VVO). A technique to prevent this is load shedding by rolling blackout or voltage reduction (brownout). and reduced vulnerability to natural disasters or attack. the reverse flow can raise safety and reliability issues. . and greater utilization of generators. Flexibility in network topology[edit] Next-generation transmission and distribution infrastructure will be better able to handle possible bidirection energy flows. such as state estimation. referred to as a network structure. pumped hydroelectric power. charging to/from the batteries of electric cars. Initial power lines in the grid were built using a radial model.The smart grid represents the full suite of current and proposed responses to the challenges of electricity supply. See power outage.[13] that improve fault detection and allow self-healing of the network without the intervention of technicians. and reducing truck-rolls by improved outage management using data from Advanced Metering Infrastructure systems. the old grid also featured multiple routes. it could fail. one possible categorisation is given here. Nevertheless. this created a new problem: if the current flow or related effects across the network exceed the limits of any particular network element. in particular including demand-side management. but if a local sub-network generates more power than it is consuming. [citation needed] The economic impact of improved grid reliability and resilience is the subject of a number of studies and can be calculated using a US DOE funded methodology for US locations using at least one calculation tool. but also the use of fuel cells. Classic grids were designed for one-way flow of electricity. and other sources. which eventually may fail also. Although multiple routes are touted as a feature of the smart grid. However. leading to lower power prices. later connectivity was guaranteed via multiple routes. eliminating truck-rolls for meter reading. and the current would be shunted to other network elements. causing a domino effect. Because of the diverse range of factors there are numerous competing taxonomies and no agreement on a universal definition. allowing for distributed generation such as from photovoltaic panels on building roofs. The overall effect is less redundancy in transmission and distribution lines.[7] Efficiency[edit] Numerous contributions to overall improvement of the efficiency of energy infrastructure are anticipated from the deployment of smart grid technology. This will ensure more reliable supply of electricity.[14] A smart grid aims to manage these situations. Reliability[edit] The smart grid will make use of technologies.

Traditionally. to reach a certain failure rate. the failure rate can only be reduced at the cost of more standby generators. increment of the load if a popular television program starts and millions of televisions will draw current instantly. the load reduction by even a small portion of the clients may eliminate the problem. to reduce the load temporarily[15] (to allow time to start up a larger generator) or continuously (in the case of limited resources). or another larger customer. communications and metering technologies inform smart devices in the home and business when energy demand is high and track how much electricity is used and when it is used. Rapid fluctuations in distributed . and typically even if some feed-in is allowed at the local (distribution) level.[15] To motivate them to cut back use and perform what is called peak curtailment or peak leveling. prices of electricity are increased during high demand periods. When businesses and consumers see a direct economic benefit of using energy at off-peak times.[who?] this will reduce the amount of spinning reserve that electric utilities have to keep on stand-by. to respond to a rapid increase in power consumption. See Time of day metering and demand response.[7] It is thought that consumers and businesses will tend to consume less during high demand periods if it is possible for consumers and consumer devices to be aware of the high price premium for using electricity at peak periods. Sustainability[edit] The improved flexibility of the smart grid permits greater penetration of highly variable renewable energy sources such as solar power and wind power. Using mathematical prediction algorithms it is possible to predict how many standby generators need to be used. the transmission-level infrastructure cannot accommodate it. This could mean making trade-offs such as cycling on/off air conditioners or running dishes at 9 pm instead of 5 pm. It also gives utility companies the ability to reduce consumption by communicating to devices directly in order to prevent system overloads. and decreased during low demand periods. Peak curtailment/leveling and time of use pricing[edit] To reduce demand during the high cost peak usage periods. Although the total load is the sum of many individual choices of the clients. as the load curve will level itself through a combination of "invisible hand" free-market capitalism and central control of a large number of devices by power management services that pay consumers a portion of the peak power saved by turning their device off. A smart grid may warn all individual television sets. the theory is that they will include energy cost of operation into their consumer device and building construction decisions and hence become more energy efficient. the overall load is not a stable. Current network infrastructure is not built to allow for many distributed feed-in points. slow varying.Load adjustment/Load balancing[edit] The total load connected to the power grid can vary significantly over time. In a smart grid. some spare generators are put on a dissipative standby mode[citation needed]. In the traditional grid. Examples would be a utility reducing the usage of a group of electric vehicle charging stations or shifting temperature set points of air conditioners in a city.. According to proponents of smart grid plans. faster than the start-up time of a large generator. even without the addition of energy storage.

substations and major energy users. and brownouts and outages can be costly to consumers. from the users and the loads they control back to the utilities. rolling blackout. heat banks. This is an extension of the dual-tariff energy pricing mentioned above. Market-enabling[edit] The smart grid allows for systematic communication between suppliers (their energy price) and consumers (their willingness-to-pay). The total amount of power demand by the users can have a very wide probability distribution which requires spare generating plants in standby mode to respond to the rapidly changing power usage.generation. and energy consumption that is sensitive to the time-varying limitations of the supply. with some early smart meter architectures allowing actually as long as 24 hours delay in receiving the data. The overall effect is a signal that awards energy efficiency. and heat pumps) will be well placed to 'play' the market and seek to minimise energy cost by adapting demand to the lower-cost energy support periods. Only the critical loads will need to pay the peak energy prices. appliances with a degree of energy storage or thermal mass (such as refrigerators. power grid systems have varying degrees of communication within control systems for their high value assets. transmission lines. present significant challenges to power engineers who need to ensure stable power levels through varying the output of the more controllable generators such as gas turbines and hydroelectric generators. Eliminating the fraction of demand that occurs in these spikes eliminates the cost of adding reserve generators. preventing any possible reaction by either supplying or demanding devices. Latency of the data flow is a major concern. cuts wear and tear and extends the life of equipment. Demand response support[edit] Demand response support allows generators and loads to interact in an automated fashion in real time. whereas inflexible generators such as base-load steam turbines and wind turbines will receive a varying tariff based on the level of demand and the status of the other generators currently operating. and permits both the suppliers and the consumers to be more flexible and sophisticated in their operational strategies. and consumers will be able to be more strategic in when they use energy. uncontrolled blackout). Generators with greater flexibility will be able to sell energy strategically for maximum profit. such as due to cloudy or gusty weather.[16] Currently. the last 10% of generating capacity may be required as little as 1% of the time. coordinating demand to flatten spikes.[17] Platform for advanced services[edit] . The utilities attempt to meet the demand and succeed or fail to varying degrees (brownout. At the domestic level. In general information flows one way. Smart grid technology is a necessary condition for very large amounts of renewable electricity on the grid for this reason. such as in generating plants. and allows users to cut their energy bills by telling low priority devices to use energy only when it is cheapest. This one-way flow of information is expensive.

[20][21] are data integrators rather than vendors of equipment. see opportunity in providing devices to consumers very similar to those they have long been providing to industry. distribution automation. dynamic line . Many smart grid bandwidth upgrades are paid for by over-provisioning to also support consumer services. sell the rest[edit] The amount of data required to perform monitoring and switching one's appliances off automatically is very small compared with that already reaching even remote homes to support voice. In most cases.[23] Sensing and measurement[edit] Core duties are evaluating congestion and grid stability. Technology[edit] 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. such as fire monitoring and alarms that can shut off power. monitoring equipment health. While the AC power control standards suggest powerline networking would be the primary means of communication among smart grid and home devices. such as higher rates during peak hours. wireless mesh networks and other technologies. but are non uniform because they have been developed in an incremental fashion and not fully integrated. In general. etc. Technologies include: advanced microprocessor meters (smart meter) and meter reading equipment. data is being collected via modem rather than direct network connection. security.[7] Integrated communications will allow for realtime control. energy theft prevention. and distributed computing technology will improve the efficiency. advanced sensors. and security. wide-area monitoring systems.As with other industries. the bits may not reach the home via Broadband over Power Lines (BPL) initially but by fixed wireless. reliability and safety of power delivery and use. supervisory control and data acquisition (SCADA).[citation needed] Areas for improvement include: substation automation. and control strategies support. with communications. demand response. control power with kilobits. asset utilization. make phone calls to emergency services. like Cisco. It also opens up the potential for entirely new services or improvements on existing ones. such as Silver Spring Networks[19] or Google. Because power and communications companies are generally separate commercial enterprises in North America and Europe. information and data exchange to optimize system reliability.[18] Others. Some. Internet and TV services. it has required considerable government and large-vendor effort to encourage various enterprises to cooperate. and subsidizing the communications with energy-related services or subsidizing the energy-related services. powerline carrier communications. use of robust two-way communications. energy management systems. and fiber-optics. This is particularly true where governments run both sets of services as a public monopoly. smart grid technology can be grouped into five key areas:[22] Integrated communications[edit] Some communications are up to date. Provision megabits.

storage. fiber. Phasors are representations of the magnitude and phase of alternating voltage at a point in the network. dynamic fashion. it was realized that the clock pulses from global positioning system (GPS) satellites could provide very precise time signals to devices in the field. Smart meters[edit] Main article: Smart meter A smart grid often replaces analog mechanical meters with digital meters that record usage in real time. and Digital protective relays. Research suggests that with large numbers of PMUs and the ability to compare voltage phase angles at key points on the grid. automated systems may be able to revolutionize the management of power systems by responding to system conditions in a rapid. PMUs can take measurements at rates of up to 30 times per second.[7] Many in the power systems engineering community believe that the Northeast blackout of 2003 could have been contained to a much smaller area if a wide area phasor measurement network had been in place. and diagnostics components are changing fundamental abilities and characteristics of grids. customers may be contacted or devices may be shut down or have their setting modified automatically during times of peak demand. power electronics. advanced switches and cables. (smart socket) and other smart grid-enabled appliances such as water heaters and devices such as thermostats. or power-line carrier). first and second generation superconducting wire. Technologies within these broad R&D categories include: flexible alternating current transmission system devices. allowing measurement of voltage phase angle differences across wide distances. Advanced Metering Infrastructure may provide a communication path extending from power generation plants on one end all the way to end-use electrical consumption in homes and businesses. fault tolerance. Often this technology is referred to as Advanced Metering Infrastructure (AMI) since meters alone are not useful in and of themselves and need to be installed in conjunction with some type of communications infrastructure to get the data back to the utility (wires. backscatter radio technology. which is much faster than the speed of existing SCADA technologies. Depending on the utility program..rating (typically based on online readings by Distributed temperature sensing combined with Real time thermal rating (RTTR) systems).[citation needed] Phasor measurement units[edit] Main article: Phasor measurement unit High speed sensors called PMUs distributed throughout a transmission network can be used to monitor the state of the electric system. high voltage direct current.[25] Other Advanced components[edit] Innovations in superconductivity. time-of-use and real-time pricing tools. These end use consumption devices may include outlets. In the 1980s. electromagnetic signature measurement/analysis.[24] A wide-area measurement system (WAMS) is a network of PMUS that can provide real-time monitoring on a regional and national scale. cellular. WiFi. high temperature .

Their purpose is to "provide dynamic generation capacity to meet sudden and unexpected drops in the electricity supply.[29] The Voltage Stability Monitoring & Control (VSMC) software uses a sensitivity-based successive linear programming method to reliably determine the optimal control solution. substation automation. Short-term deviations in the balance lead to frequency variations and a prolonged mismatch results in blackouts.[28] Advanced control[edit] Power system automation enables rapid diagnosis of and precise solutions to specific grid disruptions or outages. Using artificial intelligence programming techniques.[27] Matching supply and demand. making them suitable for base load and peaking power generation. Three technology categories for advanced control methods are: distributed intelligent agents (control systems).[30] Improved interfaces and decision support[edit] 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. real-time control over how that energy is routed within the grid. stop and operate efficiently at chosen load.superconducting cable. demand response. matching the power output of all the generators to the load of their electrical grid." They are scheduled to be ready during 2013 and 2014. Estonia (Kiisa Power Plant). Technologies . and operational applications (SCADA. This technology enables the grid to more effectively store intermittent energy from renewables for later use. composite conductors.[26] Smart power generation using advanced components[edit] Smart power generation is a concept of matching electricity production with demand using multiple identical generators which can start.). and “intelligent” appliances. analytical tools (software algorithms and high-speed computers). forcing other producers to adapt their output much more frequently than has been required in the past. The load balancing task has become much more challenging as increasingly intermittent and variable generators such as wind turbines and solar cells are added to the grid. independently of the others. Transmission lines enabled with such devices support greater use of renewable energy by providing more consistent. These technologies rely on and contribute to each of the other four key areas. and their total output will be 250 MW. Operators of power transmission systems are charged with the balancing task.[citation needed] Distributed power flow control[edit] Power flow control devices clamp onto existing transmission lines to control the flow of power within. Fujian power grid in China created a wide area protection system that is rapidly able to accurately calculate a control strategy and execute it. distributed energy generation and storage devices.[15] is essential for a stable and reliable supply of electricity. called load balancing. First two dynamic grid stability power plants utilizing the concept has been ordered by Elering and will be built by Wärtsilä in Kiisa. etc.

electrical system developed by the electric utility industry. distribution. and simulators for operational training and “what-if” analysis. Department of Energy (DOE). such as advanced metering.[34] GridWise – A DOE OE program focused on developing information technology to modernize the U. The IntelliGrid Consortium is a public/private partnership that integrates and optimizes global research efforts. The Roadmap outlines the key issues and challenges for modernizing the grid and suggests paths that government and industry can take to build America's future electric delivery system. and other grid stakeholders to modernize and integrate the U. storage.S. and new regulatory. Several utilities have applied IntelliGrid architecture including Southern California Edison.S. transmission. The GridWise Alliance is a consortium of public and private electricity sector stakeholders. and end-use.include visualization techniques that reduce large quantities of data into easily understood visual formats. universities. The GWAC members are a balanced and respected team representing the many constituencies of the electricity supply chain and users. and technology. equipment manufacturers. identify the . test beds and demonstration projects. and demand response. and national laboratories.[31] Grid 2030 – Grid 2030 is a joint vision statement for the U. Department of Energy to promote and enable interoperability among the many entities that interact with the nation’s electric power system. The GWAC provides industry guidance and tools to articulate the goal of interoperability across the electric system. and procuring IT-based systems.S. electrical grid. The architecture also provides a living laboratory for assessing devices. interest groups. works to integrate technologies. software systems that provide multiple options when systems operator actions are required. utilities. distribution automation. the program invests in communications architecture and standards. information technology providers. smart technologies. funds technology R&D.S. researchers. systems.[35] GridWise Architecture Council (GWAC) was formed by the U. consumers. simulation and analysis tools. cooperative efforts. IntelliGrid architecture provides methodology. tools. Research[edit] Major programs[edit] IntelliGrid – Created by the Electric Power Research Institute (EPRI). and market frameworks. and disseminates technical information. Working with the GridWise Alliance. specifying. providing a forum for idea exchanges. and meetings with policy makers at federal and state levels. and recommendations for standards and technologies for utility use in planning. the National Energy Technology Laboratory (NETL). It covers generation. which builds upon Grid 2030 and the National Electricity Delivery Technologies Roadmap and is aligned with other programs such as GridWise and GridWorks. and TXU Electric Delivery. Long Island Power Authority.S. institutional. electrical grid. federal and state government agencies.[32] The National Electric Delivery Technologies Roadmap is the implementation document for the Grid 2030 vision. Salt River Project.[33] Modern Grid Initiative (MGI) is a collaborative effort between the U. DOE's Office of Electricity Delivery and Energy Reliability (OE) sponsors the initiative.

Oregon. and power electronics. The power grid has been described in this context as well.[39] Smart grid modelling[edit] Many different concepts have been used to model intelligent power grids. Here is a selection of the types of analyses that have appeared in recent years.[43] Bio-systems Power grids have been related to complex biological systems in many other contexts. microphysics of clouds.[41][42] Kuramoto oscillators The Kuramoto model is a well-studied system. and institutions that encompass the nation's electric system. transmission reliability technologies. remote switching and related efforts.concepts and architectures needed to make interoperability possible. . energy storage devices.[36] GridWorks – A DOE OE program focused on improving the reliability of the electric system through modernizing key grid components such as cables and conductors.[45] These creatures streamline or intensify communication in case of an unusual situation. and GridWise systems. Evans in their study introduced the concept of a substation based smart protection and hybrid Inspection Unit.[40] the power grid was considered within the context of optimal control. electric distribution technologies.1 defines necessary guidelines and principles. or to maintain phase synchronization (also known as phase locking).000 metered customers. and develop actionable steps to facilitate the inter operation of the systems.[38] Solar Cities . different types of power generators. Protection systems that verify and supervise themselves Pelqim Spahiu and Ian R. Non-uniform oscillators also help to model different technologies. The GridWise Architecture Council Interoperability Context Setting Framework. the Solar Cities programme included close collaboration with energy companies to trial smart meters. glassy dynamics.[37] Pacific Northwest Smart Grid Demonstration Project. The program's focus includes coordinating efforts on high temperature superconducting systems. In a recent brainstorming session. In one study. They are generally studied within the framework of complex systems. It also provided some limited funding for grid upgrades. human cognition. ecology. and contains many key functions of the future smart grid. V 1. patterns of consumption. Montana. peak and off-peak pricing.This project is a demonstration across five Pacific Northwest states-Idaho. information theory. and so on. devices. substations and protective systems. and Wyoming. It involves about 60. Washington. power grids were compared to the dolphin social network. .[43][44] The goal is to keep the system in balance. The intercommunications that enable them to survive are highly complex.In Australia. and many others. The model has also been used to describe the synchronization patterns in the blinking of fireflies.

which is an active area of research. and decentralize the electricity infrastructure with technical innovation as key to the transformation. pricing.3 billion in 2009 to $171. With the segments set to benefit the most will be smart metering hardware sellers and makers of software used to transmit and organize the massive amount of data collected by meters. The current density might be too low in some areas.[55] innovative combinations of FDMA.. demand. the World Economic Forum reported a transformational investment of more than $7. Continuing along similar lines today.4 billion – by 2014. so fuse or diode networks are used instead. wind variability.4 billion by 2014. it will exceed at least $42. expand. The analysis can therefore be used to smooth out potential problems in the network. maximum entropy methods. Markov processes have been used to model and study this type of system. or analyze patterns that might lead to a power outage. Neural networks Neural networks have been considered for power grid management as well. and many other researchers who studied communication networks. and others. random fuse networks have been studied.[57] General economics developments[edit] . supply.S.[46] It is difficult for humans to predict the long term patterns in complex networks. Given the success of the smart grids in the U.8 billion.[52][53] This goes back to the ideas of Shannon. The references are too numerous to list. Off-line storage.6 trillion is needed over the next 25 years (or $300 billion per year) to modernize. surging from $69. in one way or another. high-speed computer analysis can predict blown fuses and correct for them.[56] Recently. Here the goal is to develop a winning strategy.[47][48][49][50] Markov processes As wind power continues to gain popularity.Random fuse networks In percolation theory. TDMA. modern wireless network research often considers the problem of network congestion. it becomes a necessary ingredient in realistic power grid studies. and too strong in others. the US smart grid industry was valued at about $21. Economics[edit] Market outlook[edit] In 2009.[51] Maximum entropy All of these methods are. For instance. the world market is expected to grow at a faster rate.[54] and many algorithms are being proposed to minimize it. including game theory. and other factors can be modelled as a mathematical game.

collect information on prices and grid conditions.As customers can choose their electricity suppliers. and response of consumers subscribed to time-based utility rate programs that involve advanced metering infrastructure and customer systems such as inhome displays and programmable communicating thermostats. Grid frequency could be used to communicate load information without the need of an additional telecommunication network. the focus of transportation costs will be increased. Another concern is that the cost of telecommunications to fully support smart grids may be prohibitive. Reduction of maintenance and replacements costs will stimulate more advanced control. The increased efficiency and reliability of the smart grid is expected to save consumers money and help reduce CO 2 emissions. Department of Energy (DOE) as part of the American Recovery and Reinvestment Act Smart Grid Investment Grant and Demonstrations Program funded special consumer behavior studies to examine the acceptance. depending on their different tariff methods. Some of the benefits of such a modernized electricity network include the ability to reduce power consumption at the consumer side during peak hours. or even combined heat power generators in buildings).[59] .S. Although there are specific and proven smart grid technologies in use.[58] As well as these industrial modernization benefits. micro hydro. but it would not support economic bargaining or quantification of contributions. A less expensive communication mechanism is proposed[citation needed] using a form of "dynamic demand management" where devices shave peaks by shifting their loads in reaction to grid frequency. 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. retention. communicate information on operating status and needs. The U. 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.[25] US and UK savings estimates and concerns[edit] One United States Department of Energy 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. enabling grid connection of distributed generation power (with photovoltaic arrays. and eliminating or containing failures such as widespread power grid cascading failures. called demand side management. network small-scale distributed energy generation and storage devices. small wind turbines. and move the grid beyond central control to a collaborative network. incorporating grid energy storage for distributed generation load balancing. 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. One important question is whether consumers will act in response to market signals. A smart grid precisely limits electrical power down to the residential level.

could be used to attack a smart grid network.[citation needed] Similarly.[61] Aside from computer infiltration. allowing the supplier to take advantage of the customer  concern over remotely controllable "kill switch" incorporated into most smart meters  social concerns over Enron style abuses of information leverage  concerns over giving the government mechanisms to control the use of all power using activities  concerns over RF emissions from smart meters Security[edit] With the advent of cybercrime there is also concern on the security of the infrastructure. which targeted SCADA systems which are widely used in industry. the same technology can be employed to make it appear that the energy the consumer is using is being used by another customer. use of usage data by law enforcement  social concerns over "fair" availability of electricity  concern that complex rate systems (e. but also raises some significant security issues. there are also concerns that computer malware like Stuxnet.S. e. electric grid before on numerous occasions. primarily that involving communications technology. there is a risk that these capabilities could be exploited for criminal or even terrorist actions. variable rates) remove clarity and accountability. enabling utilities to quickly and easily cease or modify supplies to customers who default on payment.S. Concerns chiefly center around the communications technology at the heart of the smart grid.[citation needed] . Designed to allow real-time contact between utilities and meters in customers' homes and businesses.g. they are often marketed as "smart grid" which connects smart grid to smart meters in the eyes of opponents. increasing their bill.[7] One of the key capabilities of this connectivity is the ability to remotely switch off power supplies. Specific points of opposition or concern include:  consumer concerns over privacy. remote disconnect. and variable rate pricing) enabled by them. This is undoubtedly a massive boon for energy providers. where the smart meters being deployed use the RF technology of Fastrak transponders to communicate with the electricity transmission network.[60] Cybercriminals have infiltrated the U.g.Oppositions and concerns[edit] Most opposition and concerns have centered on smart meters and the items (such as remote control. Where opposition to smart meters is encountered. Electricity theft is a concern in the U. [citation needed] People with knowledge of electronics can devise interference devices to cause the smart meter to report lower than actual usage.

An example is competition with cable and DSL Internet providers from broadband over powerline internet access. remote connection and disconnection of customers. but are only effective if other suppliers on the network have them. Regulatory or legislative actions can also drive utilities to implement pieces of a smart grid puzzle.g. The worldwide power loss including theft is estimated at approximately two-hundred billion dollars annually. Providers of SCADA control systems for grids have intentionally designed proprietary hardware.[12] Power Theft / Power Loss[edit] Various "smart grid" systems have dual functions. reading a meter. the Telegestore project was highly unusual in the utility world because the company designed and manufactured their own meters.[62] Deployments and attempted deployments[edit] Enel. or hope to provide similar services. The earliest. protocols and software so that they cannot interoperate with other systems in order to tie its customers to the vendor.[10] .1 billion euro. 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 components. regulatory. and developed their own system software. This includes Advanced Metering Infrastructure systems which. The Telegestore project is widely regarded as the first commercial scale use of smart grid technology to the home.[citation needed] Some features of smart grids draw opposition from industries that currently are. Ideally. meter reading). monitoring power quality. example of a smart grid is the Italian system installed by Enel S. like the power system stabilizers (PSS) [clarification needed] installed on generators are very expensive. but unanticipated applications that will arise in the future. require complex integration in the grid's control system. Each utility has a unique set of business. and legislative drivers that guide its investments. power suppliers don't. of Italy. acted as their own system integrator. when used with various software can be used to detect power theft and by process of elimination. Without any incentive to install them. etc. and delivers annual savings of 500 million euro at a project cost of 2. detect where equipment failures have taken place.Other challenges to adoption[edit] Before a utility installs an advanced metering system. Completed in 2005.p. the communications infrastructure will not only support near-term applications. it must make a business case for the investment. or any type of smart system. Because of this. and one of the largest.A. are needed only during emergencies.[12] Most utilities find it difficult to justify installing a communications infrastructure for a single application (e. enabling demand response. a utility must typically identify several applications that will use the same communications infrastructure – for example. These are in addition to their primary functions of eliminating the need for human meter reading and measuring the time-of-use of electricity.

Customer Interface Systems.000 businesses. out of concern of future mismatches with new standards and technologies available from the fast moving business segment of home electronic devices.000 Synchrophasors. smart thermostats. over 1.[68] [69] Évora. the city of Austin. Distribution & Substation Automation. when its utility first replaced 1/3 of its manual meters with smart meters that communicate via a wireless mesh network. and Renewable Energy Integration Projects. Both systems use the smart meter as a gateway to the home automation network (HAN) that controls smart sockets and devices. in Ontario.[67] Sydney also in Australia. and Workforce Education Programs. Dept. Demonstration Projects. Cyber Security Projects. Smart City program. A total of over $9 billion in Public/Private funds were invested as part of this program. of Energy . It currently manages 200. Advanced Distribution Management Systems. and expects to be supporting 500.[63] Boulder.3 million customers in the province of Ontario.000 devices real-time in 2009 servicing 1 million consumers and 43. reduce operating costs. Some HAN designers favor decoupling control functions from the meter. Dynamic Line Rating. The initiative won the "Best AMR Initiative in North America" award from the Utility Planning Network.[65] The City of Mannheim in Germany is using realtime Broadband Powerline (BPL) communications in its Model City Mannheim "MoMa" project. Texas. Volt/VAR Optimization Systems.US Dept. Texas has been working on building its smart grid since 2003. allowing suppliers and energy services companies to use this technological platform to offer consumers information and .[66] Adelaide in Australia also plans to implement a localised green Smart Grid electricity network in the Tonsley Park redevelopment. This program required matching funding from individual utilities. Technologies included Advanced Metering Infrastructure. Reports from all individual utility programs as well as overall impact reports will be completed by the second quarter of 2015. By the end of 2010. This program consisted of Investment Grants (matching). Austin. promote energy efficiency and environmental sustainability. Colorado completed the first phase of its smart grid project in August 2008. including over 65 million Advanced "Smart" Meters. Portugal that aims to equip the electricity grid with information and devices to automate grid management. Canada is in the midst of a large-scale Smart Grid initiative.000 devices real-time (smart meters. Energy Storage Systems. improve service quality. InovGrid is an innovative project in Évora. and sensors across its service area). Consumer Acceptance Studies. and increase the penetration of renewable energies and electric vehicles. It will be possible to control and manage the state of the entire electricity distribution grid at any given instant. In the US. of Energy's Smart Grid Program funded by the American Recovery and Reinvestment Act of 2009.ARRA Smart Grid Project: One of the largest deployment programs in the world to-date is the U. deploying a standards-compliant communications infrastructure from Trilliant.[64] Hydro One. in partnership with the Australian Government implemented the Smart Grid.S. the system will serve 1.

Honeywell is developing a demand response pilot and feasibility study for China with the State Grid Corp.4 billion by 2015.[76][77] . stated "If used properly.added-value energy products and services.. China[edit] The smart grid market in China is estimated to be $22. In the Netherlands a large-scale project (>5000 connections. This project to install an intelligent energy grid places Portugal and EDP at the cutting edge of technological innovation and service provision in Europe.3 billion with a projected growth to $61. A technology competition identified this model regions to carry out research and development activities with the main objective to create an "Internet of Energy. in which all of the electric utilities in the state have rapidly adopted a variety of Smart Grid technologies. >20 partners) was initiated to demonstrate integrated smart grids technologies.[73] According to an article in the Boston Globe. the plan "unfairly targeted low-income customers and circumvented Massachusetts laws meant to help struggling consumers keep the lights on". and General Electric intend to work together to develop standards for China’s smart grid rollout. including about 90% Advanced Metering Infrastructure deployment..[73] According to the Boston Globe. subsidiary actually attempted to create a "smart grid" program using public subsidies that would switch low income customers from post-pay to prepay billing (using "smart cards") in addition to special hiked "premium" rates for electricity used above a predetermined amount. Northeast Utilities' Western Massachusetts Electric Co. One of the first attempted deployments of "smart grid" technologies in the United States was rejected in 2009 by electricity regulators in the Commonwealth of Massachusetts. It’s a tool..In the so-called E-Energy projects several German utilities are creating first nucleolus in six independent model regions.[73] A spokesman for an environmental group supportive of smart grid plans and Western Massachusetts' Electric's aforementioned "smart grid" plan. of China using the OpenADR demand response standard."[72] Massachusetts. a US state. services and business cases. The State Grid Corp."[73] The eEnergy Vermont consortium[74] is a US statewide initiative in Vermont. the Chinese Academy of Science. and are presently evaluating a variety of dynamic rate structures. smart grid technology has a lot of potential for reducing peak demand. dirtiest power plants.[73] This plan was rejected by regulators as it "eroded important protections for low-income customers against shutoffs". in particular.[75] OpenADR Implementations[edit] Certain deployments utilize the OpenADR standard for load shedding and demand reduction during higher demand periods. which would allow us to shut down some of the oldest. funded in part through the American Recovery and Reinvestment Act of 2009.[70][71] E-Energy .

[82] Guidelines.[81] Hawaiian Electric Co. HECO will give customers incentives for reducing power consumption within 10 minutes of a notice.[85] . standards and user groups[edit] Part of the IEEE Smart Grid Initiative. The CIM provides for common semantics to be used for turning data into information. The IEEE P2030 group expects to deliver early 2011 an overarching set of guidelines on smart grid interfaces.2 represents an extension of the work aimed at utility storage systems for transmission and distribution networks. As a result of the pilot. OpenADR is an open-source smart grid communications standard used for demand response applications. the Scottish and Southern Energy (SSE) said it would connect up to 30 commercial and industrial buildings in Thames Valley. Hawaii has a goal to obtain 70 percent of its power from renewable sources by 2030.4 million grant to Honeywell to implement the program using the OpenADR standard. the US Department of Energy awarded an $11 million grant to Southern California Edison and Honeywell for a demand response program that automatically turns down energy use during peak hours for participating industrial customers. MultiSpeak integration is defined using extensible markup language (XML) and web services. to a demand response program. (HECO) is implementing a two-year pilot project to test the ability of an ADR program to respond to the intermittence of wind power.118.[84] It is typically used to send information and signals to cause electrical powerusing devices to be turned off during periods of higher demand.United Kingdom[edit] The OpenADR standard was demonstrated in Bracknell. MultiSpeak has created a specification that supports distribution functionality of the smart grid. England. The group has also spun out a 2030. west of London. The IEEE has created a standard to support synchrophasors – C37.[78] United States[edit] In 2009. IEC TC57 has created a family of international standards that can be used as part of the smart grid.1 effort drafting guidelines for integrating electric vehicles into the smart grid.[83] IEEE 2030. The new guidelines will cover areas including batteries and supercapacitors as well as flywheels. and IEC 61970/61968 – the Common Information Model (CIM). where peak use in commercial buildings was reduced by 45 percent. MultiSpeak has a robust set of integration definitions that supports nearly all of the software interfaces necessary for a distribution utility or for the distribution portion of a vertically integrated utility. These standards include IEC61850 which is an architecture for substation automation.[79][80] The Department of Energy awarded an $11.

[88][89] NIST has included ITU-T G. This work has is standard for high-speed communications over power lines.S. Its starting point is the California OpenADR as one of the "Standards Identified for Implementation" for the Smart Grid "for which it believed there was strong stakeholder consensus". phone lines and coaxial cables.[90] G.The UCA International User Group discusses and supports real world experience of the standards used in smart grids.[92] If patents that cover standardized Smart Grid elements are not revealed until technology is broadly distributed throughout the network ("locked-in"). Under the Energy Independence and Security Act of 2007 (EISA). These standards will be referred by NIST to the Federal Energy Regulatory Commission (FERC). NIST is charged with overseeing the identification and selection of hundreds of standards that will be required to implement the Smart Grid in the U. . A utility task group within LonMark International deals with smart grid related issues. significant disruption could occur when patent holders seek to collect unanticipated rents from large segments of the market. and the first standards have already been selected for inclusion in NIST's Smart Grid catalog. There is a growing trend towards the use of TCP/IP technology as a common communication platform for smart meter applications. OASIS EnergyInterop' – An OASIS technical committee developing XML standards for energy interoperation. so that utilities can deploy multiple communication systems. some commentators have suggested that the benefits that could be realized from Smart Grid standardization could be threatened by a growing number of patents that cover Smart Grid architecture and technologies. and End-Use Applications and Loads". while using IP technology as a common management platform.[86][87] IEEE P2030 is an IEEE project developing a "Draft Guide for Smart Grid Interoperability of Energy Technology and Information Technology Operation with the Electric Power System (EPS).[91] However.