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The Power
to Deliver
L
LOOKING AT THE COMMUNICATION INDUSTRY, ONE OBSERVES
how drastically the communication horizon has changed. From letters to
e-mails and SMS, from phone calls to video chat and live conferencing, from
phone booths to smart phones: since the digitization of communication, a new
era of consumer choice has been inaugurated. The potential exists for similar
transformation and opportunity in the provision of electricity, embodied in a
concept known as the “smart grid.”
The meaning of smart grid is usually multifaceted to variable audiences.
The gamut of workshops, online resources, and awareness campaigns that
involve the deployment of smart grids and its associated benefits makes it dif-
ficult for end users and other stake holders to identify exactly what it is or
understand the potential advantages and concerns.
For most, a smart grid represents:
✔ a technology vision to optimize electricity delivery operations in the
transmission and distribution systems
Trends in ✔ an opportunity to expand the use of information technology, including
two‐way communication between the utility and the customer
Smart Grid ✔ greater ability to increase efficiency and reliability, and assist in facili-
tating the integration and utilization of alternate/ renewable sources of
Solutions energy into the broader grid network.
In short, the smart grid is the electric delivery network from electrical gen-
eration to the end user that makes use of the latest advances in wireless com-
munication and intelligent information management systems to ameliorate the
electric system robustness, reliability, efficiency, and security.
Like the telecommunications and the genesis of the Internet, technology
holds the key to the smart grid and its realization. The expression “Using
megabytes of data to move megawatts of energy,” from a document pre-
pared for the U.S. Department of Energy, coins the essence of the smart grid
perfectly. Figure 1 identifies the principal components of a smart grid, and
Demand Response
Distributed and Consumer Energy Efficiency
Electric Generation
Storage Through Demand response is a means by which demand will be
Renewable
Electric Sources dynamically and continuously balanced with supply-side
Vehicles resources to produce a cost-effective electricity system. An
efficient market is meant to be two-sided. It should have
both supply sides and demand sides that respond to trans-
figure 1. Components of a smart grid. parent pricing schemes. The electric industry was designed
and was mostly operated under the notion that load was
immutable. However, with the proliferation of technology
Table 1 compares the envisioned smart grid with the grid as into almost every sphere of existence, customers’ demands
it typically exists today. Figure 2 illustrates some important for energy have morphed. In today’s world, the consumer
advantages of smart grids. demand is considered to be largely elastic. One of the aims
of the smart grid is to empower the customers with a bet-
Technological Trends ter perception of their load consumption in order to enable
in Smart Grid Approaches them to respond to tariffs based on individual preferences.
Markets that can convey real time price information to cus-
Research Trends tomers and give priority to rules that encourage and fully
In the United States, under the Energy Independence and value market participation by customers can be a major
Security Act of 2007 (EISA), the National Institute of Stan- factor in maximizing customer participation. A major part
dards and Technology (NIST) was given the responsibility of the research related to smart grids is being done in this
to coordinate and manage the development of a framework particular aspect.
that encompassed model standards and protocols for infor-
mation management in order to achieve interoperability Wide-Area Situational Awareness
of smart grid devices and systems. NIST primarily chose A core attribute of the smart grid is that it makes use of
to focus on the standards required to address the priorities communications (wired and wireless) and information
Customer participation Participation is very limited; customers Consumers are informed and active. They are a part
have limited information and no of the system and can contribute to it.
opportunity to contribute to the system.
Generation Generation is largely centralized. The system can make use of power from distributed
generation as well as alternate sources such as wind
and solar energy.
Market flexibility There are limited opportunities for The market is very flexible: customers can subscribe
customers to benefit. to different tariff packages as they see fit.
Supply and maintenance Outages occur regularly and usually Supply can accommodate variable loads and has
require manual supervision for repair work. self-healing capabilities.
Asset optimization and Integration of operational data with asset There is greatly expanded acquisition of grid
efficiency management is limited. parameters; impacts of control actions on consumers
are minimized.
technology in the delivery, consumption, and generation ability, self-healing capabilities, and traffic handling can be
of electrical energy. A communication channel between achieved adhering to very high standards. The issue with wire-
suppliers and customers idealizes the true market spirit, less communication is the broadband requirement, since a
empowering customers to not only be smarter customers smart grid will require massive bandwidth. Also, the imple-
but also enabling them to contribute in load management. mentation of such a large network, with thousands of data
With a constant two-way communication channel between points, would cost millions. This is where PLC is considered
the suppliers and the consumers, monitoring of power a better solution. Since power lines are already established
being supplied can be done in real time, making the whole and broadband services are available via power lines, PLC
system much more efficient. is an option a lot of researchers vie for.
Communication in the smart grid is not only limited to
suppliers and customers, however. What makes the smart Electric Storage
grid so efficient is the very extensive monitoring system Storage technologies such as advanced batteries, pumped
whereby each and every aspect of the grid is constantly hydro, and others require electricity to be stored and dis-
monitored. Sensors serve the purpose of being the “eyes” of patched during times of peak demand or to provide steady
the system. These sensors are specially designed to deliver power from intermittent renewable technologies such as
high speeds and are used to monitor power quality; in some solar and wind. Energy that is generated during off-peak
cases, phasor measurement units (PMUs) also respond hours can be stored in these storage units and can be utilized
automatically to changes in volt-
age. Wide-area measurement
systems (WAMs) are a network
of PMUs that process informa-
tion in real time, thus facilitating
transmission system operations
on a regional and national scale.
Research work is being done
to find a communication mode
Energy Drawn Uninterr
Uninterrupted,
uptted, from Renewable Resources
that serves not only supplier/cus-
tomer needs but at the same time
facilitates WAMs. The following
aspects are kept under consider-
ation when opting for a commu-
nications mode:
✔ reliability
✔ latency Micro generation reduces Smart meters allow energy
✔ throughput performance demand on the grid. Not monitoring in real time and
✔ self-healing/self-evolving only can this be used to active communication with
capabilities power up large buildings the provider. Smart
✔ real-time data traffic handling. but in turn feedback appliances allow for greater
power into the grid. efficiency.
Various modes of communica-
tion are under consideration, mainly
utilizing wireless and power line
Energy produced during peak
communication (PLC). Wireless
hours can be stored and used
communication offers the advan-
at a later time.
tages of being very flexible and
interoperable. With methods like
multichannel and multichannel-
aided wireless mesh routing, reli- figure 2. Key advantages of smart grids.
as per requirement. The interconnected structure of the reduce usage in such hours and hence pay compara-
smart grid will ensure that no energy is wasted and surplus tively lower rates.
energy can be used properly maybe in the future should the
need arise. A lot of work is being done in order to tackle the Distribution Grid Management
technical challenges with regard to battery performance due With continued increase in the use of renewable sources
to charge and discharge cycles. and the decrease in use of fossil fuel for electricity genera-
tion, distributed generation is now considered the way of
Electric Vehicles the future. Distributed generation (DG) systems are atypical
The smart grid’s biggest potential in delivering carbon sav- compared to the large, centralized generators that provide
ings lies in providing cost-effective and increasingly clean most of the grid’s power. Rather, these systems are known
energy for electric vehicles, including plug-in electric vehi- for their smaller-scale local power generation and distribu-
cles (PEVs) and plug-in hybrid electric vehicles (PHEVs). tion systems and generally have low installation and main-
Although the vehicles will be producing the savings rather tenance costs. Using renewable sources like solar and wind,
than the smart grid, only smart grid technologies will distributed generators produce power for on-site or adja-
allow us to tap their fundamental potential. Research cent consumption and sometimes can sell surplus capacity
work is being carried out in aspects like advanced meter- back into the grid under an established tariff. Managing DG
ing infrastructure (AMI) that can enable the end users to remotely and as efficiently as possible is a major area of
purchase energy at off-peak hours and sell unused, stored research. Ways of making the process more efficient and
energy back to the utility providers during peak hours at reliable are being worked on every level.
better tariffs.
Industrial Solutions
Advanced Metering Infrastructure The smart grid represents the creation of a near-term mar-
Electric bills are undecipherable to a lot of customers and ketplace in the tens of billions of dollars in the United
usually are delivered monthly, long after the electricity has States. According to the Electric Power Research Institute
actually been consumed. Such a billing system is still in (EPRI) and the Pacific Northwest National Laboratory
use, even though we live in a time when existing and emerg- (PNNL), the total market size is approximately US$200
ing technologies make it possible for consumers to see the billion, spread over ten to 15 years. A lot of well estab-
day-to-day cost of electricity. AMI is a means to facilitate lished companies have opened up research divisions and
two-way communication, interval metering, and time-based started investment in order to take part in one of the largest
billing that enables dynamic pricing to be an option for all markets of the future. In addition, a myriad of companies
customers. In a dynamic pricing model, the price per unit have also been opened. The key areas of focus in the indus-
of energy varies throughout the day, sometimes even on an try are described below.
hourly basis thus giving the end customer more flexibility in
managing their utility bill. The main categories of dynamic Smart Meters
pricing are: Smart meters are a key product in the smart grid system.
✔ Real-time pricing: The rates are proportional to These meters record consumption of electric energy using
hourly fluctuations in wholesale markets that en- intervals of an hour or less and communicate information
ables the customers to proactively plan their elec- at least daily back to the utility for monitoring and billing
tricity use to take advantage of periods with lower purposes. They are capable of two-way communication with
prices. the central system.
✔ Peak-time rebates: Customers can get sizable rebates Smart meters let the power utility company introduce dif-
by cautiously managing their load in peak periods ferent tariffs for consumption based on time of day and sea-
even though the traditional blended rate applies. son and enable the customer to choose from different service
✔ Critical-peak pricing: In the peak periods, prices and pricing packages as per their convenience. It is expected
can increase by a substantial amount, limited to a cer- that billing customers shall encourage them to address their
tain (usually small) number of hours per year. Cus- consumption habits in order to become more efficient and
tomers can benefit from this scheme if they agree to responsive to the market.
Communications
Integration
Meter Readings, Energy Utilization, and Coverage
Comparison Data + Possible In an integrated communica-
Regional Data
Detection of Meter Bypassing
Center tion framework, the physical
layer (equipment, carrier)
as well as the higher lay-
figure 3. A sample communication scenario for smart grids. ers (higher layer protocols)
Module
GPRS, EDGE,
to be self healing so that the grid can detect sensitive informa- Various communication standards and protocols are being
tion being compromised, support forensic analysis, determine taken into consideration. The ANSI C12.18 is an American
and sort the offensive threats, and use relevant information National Standards Institute (ANSI) standard protocol for
that is uncompromised to control its decisions. The integration two-way communications with an electricity meter mostly
of such cybersecurity measures becomes imperative when used in North American markets. The IEC 61107, on the
designing the communication systems for the smart grid. other hand, is a communication protocol for smart meters
published by the IEC that is widely used for utility meters
Distributed Grid Automation in the European Union. The IEC 62056 is a more modern
The development of a more automated and flexible distribu- European meter protocol. A growing perception that envis-
tion system that is capable of anticipating and responding to ages the adoption of TCP/IP protocol as a common commu-
malicious attacks and at the same time continually optimiz- nication platform for advanced/smart metering applications
ing its performance is one of the overall goals of the smart is emerging. The IP layer can therefore be used as a common
grid. The overall advantages encompass not only innovative management platform so that the utilities can deploy multiple
customer service and participation but also enhanced reli- heterogeneous communication systems.
ability and better throughput on existing lines because of a
more effective power flow control. For Further Reading
Even though the distribution automation is in its infancy, C. W. Gellings, The Smart Grid: Enabling Energy Effi-
the evolution of the distribution grid from one with little ciency and Demand Response. Lilburn, GA: The Fairmont
automation and radial power flow to a more automated, Press, 2009.
flexible, and self-healing grid along with many distributed T. Flick and J. Morehouse, Securing the Smart Grid: Next
resources shall have to address new challenges, including Generation Power Grid Security. Burlington, MA: Elsevier,
control complexity and protection. 2011.
J. G. Slootweg, E. Veldman, and J. Morren, “Sensing and
Smart Grid Standards control challenges for smart grids,” in Proc. IEEE Int. Conf.
Since smart grids are turning into a worldwide phenomenon, Networking, Sensing and Control (ICNSC), Delft, April
major scientific organizations have started defining standards 2011, pp. 1–7.
and parameters in order to provide guidelines and aid in wide- R. Abe, H. Taoka, and D. McQuilkin, “Digital grid:
scale implementation and research. The Smart Grid Interop- Communicative electrical grids of the future,” IEEE Trans.
erability Panel (SGIP) made six entries in their Catalog of Smart Grid, vol. 2, pp. 399–410, June 2011.
Standards, now available as a guide for anyone involved with SMART GRID system report. US Department of Energy.
smart grid technology. These entries present in the catalog [Online]. Available: http://www.smartgrid.gov/sites/default/
address a variety of topics, including Internet Protocol, energy files/resources/systems_report.pdf
consumption information, communications between plug-in SMART GRID utilities and its meaning to people. [On-
vehicles and the grid, smart meter requirements, and guide- line]. Available: http://www.smartgrid.gov/sites/default/files/
lines for assessing standards for wireless communications. pdfs/sg_utilities.pdf
The IEEE has introduced a project by the name of IEEE SMART GRID research and development: Multi year
P2030 that is basically developing a “Draft Guide for Smart program plan (2010–2014). [Online]. Available: http://www2.
Grid Interoperability of Energy Technology and Information econ.iastate.edu/tesfatsi/DOESmartGridRAndD2010-2014.
Technology Operation with the Electric Power System (EPS), SG_MYPP.pdf
and End-Use Applications and Loads.” The IEEE has more
than 100 documents (some still under development) relevant Biographies
to the smart grid, including 20 standards mentioned in the A.R. Khattak is with the University of Engineering and
NIST Framework and Roadmap for Smart Grid Interopera- Technology, Peshawar, Pakistan.
bility Standards, Release 1.0. This report describes a detailed S.A. Mahmud is with the University of Engineering and
reference model for the smart grid. It also identifies nearly 80 Technology, Peshawar, Pakistan.
existing standards that can be used now to support smart grid G.M. Khan is with the University of Engineering and Tech-
development. nology, Peshawar, Pakistan. p&e