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Internet Of Things And Its Applications To Smart Grid

The Mid-Term Report On



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Department of Electrical Engineering

With specialization in Power & Energy Systems

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Internet Of Things And Its Applications To Smart Grid


Next-generation technologies such as the Internet of Things (IoT) have the potential to
bring about revolutionary changes in our lives. With the IoT finding immense application across
industries such as manufacturing, healthcare, retail, and banking, it is poised to become a game-
changer in times to come. The utilities industry can also significantly benefit since the IoT can
considerably improve the development and operation of smart grids, which is the latest trend in
developed economies.

For an IoT setup to yield the desired results, it has to be supported by a host of IT
services a standalone web of connected things will not be of much use. This translates into
numerous opportunities for IT service providers. In this white paper, we talk about how the IoT
can improve smart grid operations, thus improving the utilities space, and eventually, the lives of
end users. We also outline some opportunities it opens up for IT service providers

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1. Introduction To IOT1

2. Types Of IOT Connectivity3

3. IOT Applications.8

4. Need And Benenfis Of SMART GRID.9

5. SMART GRID With IOT Application..12

6. Conclusion.13

7. References.14

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1.Introduction To Wind Energy :

The term "Internet of Things" (IoT) denotes a trend where a large number of embedded
devices employ communication services offered by the Internet protocols. Many of these
devices, often called "smart objects, are not directly operated by humans, but exist as
components in buildings or vehicles, or are spread out in the environment.

What Is The Internet of Things (IoT) The Internet of Things may be a hot topic in the
industry but its not a new concept. In the early 2000s, Kevin Ashton was laying the
groundwork for what would become the Internet of Things (IoT) at MITs AutoID lab. Ashton
was one of the pioneers who conceived this notion as he searched for ways that Proctor &
Gamble could improve its business by linking RFID information to the Internet. The concept was
simple but powerful. If all objects in daily life were equipped with identifiers and wireless
connectivity, these objects could be communicate with each other and be managed by computers.

In a 1999 article for the RFID Journal Ashton wrote: If we had computers that knew
everything there was to know about thingsusing data they gathered without any help from us --
we would be able to track and count everything, and greatly reduce waste, loss and cost. We
would know when things needed replacing, repairing or recalling, and whether they were fresh or
past their best. We need to empower computers with their own means of gathering information,
so they can see, hear and smell the world for themselves, in all its random glory. RFID and
sensor technology enable computers to observe, identify and understand the worldwithout the
limitations of human-entered data.

At the time, this vision required major technology improvements. After all, how would
we connect everything on the planet? What type of wireless communications could be built into
devices? What changes would need to be made to the existing Internet infrastructure to support
billions of new devices communicating? What would power these devices? What must be
developed to make the solutions cost effective? There were more questions than answers to the
IoT concepts in 1999.

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Today, many of these obstacles have been solved. The size and cost of wireless radios
has dropped tremendously. IPv6 allows us to assign a communications address to billions of
devices. Electronics companies are building Wi-Fi and cellular wireless connectivity into a wide
range of devices. ABI Research estimates over five billion wireless chips will ship in 2013.
Mobile data coverage has improved significantly with many networks offering broadband
speeds. While not perfect, battery technology has improved and solar recharging has been built
into numerous devices. There will be billions of objects connecting to the network with the next
several years. For example,Ciscos Internet of Things Group (IOTG) predicts there will be over
50 billion connected devices by 2020.
IoT describes a system where items in the physical world, and sensors within or attached
to these items, are connected to the Internet via wireless and wired Internet connections. These
sensors can use various types of local area connections such as RFID, NFC, Wi-Fi, Bluetooth,
and Zigbee. Sensors can also have wide area connectivity such as GSM, GPRS, 3G, and LTE.
The Internet of Things will:
1.1. Connect both inanimate and living things: Early trials and deployments of
Internet of Things networks began with connecting industrial equipment. Today, the vision of
IoT has expanded to connect everything from industrial equipment to everyday objects. The
types of items range from gas turbines to automobiles to utility meters. It can also include living
organisms such as plants, farm animals and people. For example, the Cow Tracking Project in
Essex uses data collected from radio positioning tags to monitor cows for illness and track
behavior in the herd. Wearable computing and digital health devices, such as Nike+ Fuel band
and Fitbit, are examples of how people are connecting in the Internet of Things landscape. Cisco
has expanded the definition of IoT to the Internet of Everything (IoE), which includes people,
places, objects and things. Basically anything you can attach a sensor and connectivity to can
participate in the new connected ecosystems.
1.2. Use sensors for data collection: The physical objects that are being
connected will possess one or more sensors. Each sensor will monitor a specific condition such
as location, vibration, motion and temperature. In IoT, these sensors will connect to each
other and to systems that can understand or present information from the sensors data feeds.
These sensors
will provide new information to a companys systems and to people.

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1.3. Change what types of item communicate over an IP Network: In the

past, people communicated with people and with machines. Imagine if all of your equipment had
the ability to communicate. What would it tell you? IoT-enabled objects will share information
about their condition and the surrounding environment with people, software systems and other
machines. This information can be shared in realtime or collected and shared at defined intervals.
Going forward, everything will have a digital identity and connectivity, which means you can
identify, track and communicate with objects.
IoT data differs from traditional computing. The data can be small in size and frequent in
transmission. The number of devices, or nodes, that are connecting to the network are also
greater in IoT than in traditional PC computing. Machine-to-Machine communications and
intelligence drawn from the devices and the network will allow businesses to automate certain
basic tasks without depending on central or cloud based applications and services.These
attributes present opportunities to collect a wide range of data but also provide challenges in
terms of designing the appropriate data networking and security.

2. Types Of IOT Connectivty :

2.1. Device-to-Device
Device-to-device communication represents two or more devices that directly connect
and communicate between one another. They can communicate over many types of networks,
including IP networks or the Internet, but most often use protocols like Bluetooth, Z-Wave, and

This model is commonly used in home automation systems to transfer small data packets
of information between devices at a relatively low data rate. This could be light bulbs,
thermostats, and door locks sending small amounts of information to each other.

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Fig 1. Example Of Device-to-Device Communication Model

Each connectivity model has different characteristics, Tschofenig said. With Device-to-
Device, he said security is specifically simplified because you have these short-range radio
technology [and a] one-to-one relationship between these two devices.

Device-to-device is popular among wearable IoT devices like a heart monitor paired to a
smartwatch where data doesnt necessarily have be to shared with multiple people.

There are several standards being developed around Device-to-Device including

Bluetooth Low Energy (also known as Bluetooth Smart or Bluetooth Version 4.0+) which is
popular among portable and wearable devices because its low power requirements could mean
devices could operate for months or years on one battery. Its lower complexity can also reduce
its size and cost.

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2.2. Device-to-Cloud

Fig 2. Example Of Device-to-Cloud Communication Model

Device-to-cloud communication involves an IoT device connecting directly to

an Internet cloud service like an application service provider to exchange data and control
message traffic. It often uses traditional wired Ethernet or Wi-Fi connections, but can also use
cellular technology.

Cloud connectivity lets the user (and an application) to obtain remote access to a device.
It also potentially supports pushing software updates to the device.

A use case for cellular-based Device-to-Cloud would be a smart tag that tracks your dog
while youre not around, which would need wide-area cellular communication because you
wouldnt know where the dog might be.

Another scenario, Tschofenig said, would be remote monitoring with a product like the
Dropcam, where you need the bandwidth provided by Wifi or Ethernet. But it also makes sense
to push data into the cloud in this scenario because makes sense because it provides access to the
user if theyre away. Specifically, if youre away and you want to see whats on your webcam

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at home. You contact the cloud infrastructure and then the cloud infrastructure relays to your IoT

From a security perspective, this gets more complicated than Device-to-Device because it
involves two different types of credentials the network access credentials (such as the mobile
devices SIM card) and then the credentials for cloud access.

The IABs report also mentioned that interoperability is also a factor with Device-to-
Cloud when attempting to integrate devices made by different manufacturers given that the
device and cloud service are typically from the same vendor. An example would be the Nest
Labs Learning Thermostat, where the Learning Thermostat can only work with Nests cloud
Tschofenig said theres work going into making Wifi devices that make cloud connections while
consuming less power with standards such as LoRa, Sigfox, and Narrowband.

2.3. Device-to-Gateway

Fig 3. Example Of Device-to-Gateway Communication Model

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In the Device-to-Gateway model, IoT devices basically connect to an intermediary device

to access a cloud service. This model often involves application software operating on a local
gateway device (like a smartphone or a hub) that acts as an intermediary between an IoT
device and a cloud service.

This gateway could provide security and other functionality such as data or protocol
translation. If the application-layer gateway is a smartphone, this application software might take
the form of an app that pairs with the IoT device and communicates with a cloud service.

This might be a fitness device that connects to the cloud through a smartphone app
like Nike+, or home automation applications that involve devices that connect to a hub
like Samsungs SmartThings ecosystem.
Today, you more or less have to more or less buy a gateway from a dedicated vendor or use one
of these mulit-purpose gateways, Tschofenig said. You connect all your devices up to that
gateway and it does something like data aggregation or transcoding, and it either hands [off the
data] locally to the home or shuffles it off to the cloud, depending on the use case.

Gateway devices can also potentially bridge the interoperability gap between devices that
communicate on different standards. For instance, SmartThings Z-Wave and Zigbee
transceivers can communicate with both families of devices.

2.4. Backend Data Sharing

Back-End Data-Sharing essentially extends the single device-to-cloud communication

model so that IoT devices and sensor data can be accessed by authorized third parties. Under this
model, users can export and analyze smart object data from a cloud service in combination with
data from other sources, and send it to other services for aggregation and analysis.

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Fig 4. Example Of Back End Data-Sharing Model

Tschofenig said the app Map My Fitness is a good example of this because it compiles
fitness data from various devices ranging from the Fitbit to the Adidas miCoach to the Wahoo
Bike Cadence Sensor. They provide hooks, REST APIs to allow security and privacy-friendly
data sharing to Map My Fitness. This means an exercise can be analyzed from the viewpoint of
various sensors.

3. IOT Applications :

3.1.Smart Home: The smart home is likely the most popular IoT application at the moment
because it is the one that is most affordable and readily available to consumers. From the
Amazon Echo to the Nest Thermostat, there are hundreds of products on the market that
users can control with their voices to make their lives more connected than ever.

3.2. Wearables: Watches are no longer just for telling time. The Apple Watch and other
smartwatches on the market have turned our wrists into smartphone holsters by enabling text
messaging, phone calls, and more. And devices such as Fitbit and Jawbone have helped
revolutionize the fitness world by giving people more data about their workouts.

3.3. Smart Cities: The IoT has the potential to transform entire cities by solving real
problems citizens face each day. With the proper connections and data, the Internet of Things
can solve traffic congestion issues and reduce noise, crime, and pollution.

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3.4. Connected Car: These vehicles are equipped with Internet access and can share that
access with others, just like connecting to a wireless network in a home or office. More
vehicles are starting to come equipped with this functionality, so prepare to see more apps
included in future cars.

4. Need And Benenfis Of SMART GRID:

The national smart grid mission proposes use of information technology and automation
in control of power from generation till consumption. The mission has a three tier
structure consisting of policy approving, policy preparing and technology advising bodies. The
national smart grid mission has a budget of Rs 9.8 billion for the 12th Plan period including a
budgetary support of Rs 3.4 billion. Thus the programme size is much smaller as compared to
other flagship programme of the government in the power sector. However, this should not be
the sole barometer of importance of this mission. The government has announced an investment
of USD 4 billion towards smart meters alone which will ultimately be part of a smart grid.

Thus the need for smart grid is underscored by the existing power generating capacity of
230 GW in India which is a very large generation capacity. More importantly generation
capacity is growing at a rate of 8-10% per annum to meet the power for all objective. The
growth in generation would also include a large contribution by the renewable energy as outlined
by the 175 GW target for renewable energy by 2020. Going forward there could be a large
population of electric vehicles which will also require the presence of a smart grid to enable
charging of the same. Thus, a large power sector infrastructure suffering from inefficiencies and
still needing large additions requires a smart grid mechanism to improve the efficiency
and manage the scale and technological innovations.

The major reason for installing a smart grid is the very high transmission and
distribution losses. As a result of these high losses the tariffs are artificially high for some
categories of consumers whereas the many distribution companies (discoms) are under huge
losses. These losses hinder investments in power sector value chain and pose a systemic risk to
the financial sector as loss making discoms are unable to pay back their loans in a timely fashion.
Smart grid solutions can help monitor and control the aggregate technical commercial (ATC)
losses of discoms and help in sustained reduction in ATC losses. Reduction in power theft is also

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an objective and desired outcome of the smart grid mission as reduction in power theft aids in
reduction in ATC losses.

Area Utility Consumer Society

Improved Reduced operational cost Improved level Reduction in cost
Reliability of service with ultimately help
Increased employeesafety fewer keeping the
inconveniences prices of goods
Increased revenue and services
Reduced out-
lower than they
Higher customer satisfaction of-pocket costs would be
resulting from otherwise Virtual
Reduced capital cost loss of power elimination of
boosts economic
Improved opportunities to leverage its Downward A more robust
Economics resources and enter new pressure on transmission grid
markets energy prices will
and total accommodate
Increased revenues as theft
customer bills larger increases
of service is reduced in wind and solar
generation i.e.
Improved cash flow
capability, green energy.
from moreefficient opportunity,
management of billing and and motivation
pressure on
revenue management to reduce
prices through
processes consumption
A flatter load profile will Opportunity to operating and
reduce operating and interact with
maintenance (O&M) costs the electricity
markets Creation of new
through home a
rea network
and smart
enabling society
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connectivity to offer its

Opportunity to
resources to the
reduce market and
transportation creating the
costs by using opportunity to
electric earn a revenue
vehicles in lieu stream on such
of conventional investments as
vehicles demand response,
Opportunity to
generation, and
sell storage
ced electricity
back to the
Improved Increase asset utilization Increased Deferral of
Efficiency capability, capital
Reduction in lines losses on
opportunity, investments as
both transmission and and motivation future peak loads
distribution to are reduced
be more efficie and more accurat
Reduction in transmission
nt on the ely forecasted
congestion costs consumption through the
end of the combined efforts
Reductions in peak load and
value chain of consumers and
energy consumption leading delivery
to deferral of future capital companies
investments influence on
the electricity
Reduced use of inefficient consumption of
generation to meet system KWhs through
peaks conservation,
demand response,
and reduced
transmission and
(T&D) losses

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5. SMART GRID With IOT Application:

IoT is widely deployed in various types of e-health applications and provides various

facilities for coping with health issues.

IoT can be used for unit monitoring, plant area monitoring, distributed power plant

monitoring, coal material monitoring, pollutants and gas emissions monitoring, power
prediction, energy consumption monitoring, pumped storage power plant monitoring,
wind power plant monitoring, biomass electricity generation, energy storage monitoring,

power connection etc. in the various area of p

transmission line monitoring and controlling, equipment management, tower protection,

distribution automation and intelligent substations .

IoT is basically used for smart meter and smart power consumption, multi-network

convergence, electric vehicle charging, energy efficiency monitoring and management,

power demand side management, etc.

High reliability AMR based on IoT: Auto meter reading system plays an important role in

smart grid. It is a system responsible for collecting, processing and real-time monitoring
power consumption information intelligently. IoT supports the automatic collecting,
abnormal measuring, electricity quality monitoring, and consumption behaviour analysis
and the system also enables functions such as information release, distributed energy
monitoring and information exchange between smart power devices.

Smart home based on IoT: It is the essential part of smart grid, smart home is

incorporating a communication network that connects the prime electrical appliances and
services, and allows them to be distantly observed, controlled or accessed. It increases the
ability of integrated services of the grid, meeting the demand of marketing and improving
the quality of service. Smart home service is widely used in daily power consumption.
Residents can monitor the status of their homes at any time they are not at home and call
the police when there is a hacking.
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Smart patrol based on IoT: The patrol of the power transmission, substation and

distribution equipment is mainly conducted manually at a regular time. It is based on IoT

enabled wireless sensor network, and can help positioning equipment by identifying
labels, thus improve the standardization and regulation of patrol work.

IoT applications in green smart computer room management: The consumption of power

in computer room and data storage center is highly substantial. Administrators could able
to have accurate knowledge about the running conditions of equipment and when to
switch hibernate in machines for reducing computing load of over-heated machines
according to the situation. This is done with the help of IoT enabled network equipment
and temperature monitoring servers. Computer room needs a sound security solution, as a
place where excess security requirements, are required. We can realize seamless link
between computer room and data center and the combination of equipment running status
and operation environment sensor, with the help of IoT positioning technology, video
monitor technology and powerful calculated tracking technology. IoT also provides
technical support to power consumption analysis, power environment sensor, information
system interaction and joint offices.

The development of Internet of things and smart grid are mutually reinforcing. On the
one hand, Internet of things used in smart grid will play an important role in promoting the
development of smart grid, and it is helpful to complete the online monitoring and real-time
information controlling in the important operating parameters of all aspects; On the other hand,
the intelligent network will become a powerful driving force which will develop the networking
industry of Internet of Things, and will also promote the development of information and
communication industry, moreover, it can influence and promote the applications of Internet of
Things in other industries. There are also some problems in the application of IoT technology in
smart grid. For example, the IoT industries lack core technologies with independent intellectual
property rights, and industrial dispersion constraints the application of IoT technology in smart
grid; With the expansion of the scale of China's power grid, the number of distribution substation
electrical equipments and transaction volume has increased rapidly, the operation is complex,

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and the reliability is low. In view of this, the main research direction of future IoT should be put
in the increase of support and development in IoT core technologies which are related to smart
grid, and the formation of a more complete IoT technologies should be accelerated. Moreover,
infrastructures should be invested, the transmission and communication based on network should
be supplied, so that it will make the power network more powerful and perfect, thereby enhance
the reliability of the transmission communication network.

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[7] O. Vermesan, Outlook on Future IoT Applications.

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[9] Liu JM, Li XZ, Chen X, Zhen Y, Zeng LK. Applications of Internet of Things on Smart Grid in
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