Possible Contributions of Smart Grids to Regional
Development of Countries
Asım Kaygusuz, Özge Tuttokmağı, Cemal Keleş
Electrical&Electronics Engineering Department
İnönü University
Malatya, Turkey
asim.kaygusuz@inonu.edu.tr
Abstract—Although smart grid concept has recently become a
subject of academic studies; impacts of this concept appear in
many areas of engineering. Today, the smart grid concept
involves many subjects from the efficient use of electrical energy
resources to the planned and programmed consumption of
energy, from the integration of distributed renewable energy
sources into the system to the domestic productive consumers
(prosumers), which are much related to local or regional
development. Smart grid concept, which emerges a product of
interdisciplinary studies ranging to many fields of engineering
such as power systems, control, artificial intelligence and
communication, can be briefly viewed as a development process
towards the internet of energy. Especially in recent years, the
decrease in reserves of fossil-fueled energy sources has led
researchers to find out new energy sources, more efficient and
ecological production and distribution methods. In these studies,
the energy sources, which are renewable, sustainable, and
economical have become major priorities due to reducing
carbon emissions. However, the scope of smart grid studies has
been continuously enriched and it has begun to include the
fundamental components of production-centered sustainable
development models, which are the providing of low-cost
production supplies, continuity of these supplies, efficiency in
production and consumption, generation based on renewable or
recyclable resources, and applications of ecological generation
and consumption methods. In this context, the positive effects of
smart grids on the regional development are expected to occur
in the following topics: Smart city applications, intelligent
transportation, renewable and local energy generation, smart
homes and building concepts, energy efficient cities, control of
carbon footprint, automated electricity, gas, water and waste
networks, loss and leakage control, application of demand side
energy management system to reduce power consumption, self-
healing electricity distribution, smart energy pricing, smart
energy storage are some emergent topics that can contribute to
sustainable regional development models. Because, modern grid
components developed within the scope of smart grid are
expected to support sustainable production models via smart
energy management and increasing efficiency, reducing the
energy costs, improving energy continuity. In this study, a
projection for possible contributions of smart grid concept with
its continuously expanding scope to the sustainable regional
development is discussed under several major headings.
978-1-5386-6878-8/18/$31.00 ©2018 IEEE
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Barış Baykant Alagöz
Computer Engineering Department
İnönü University
Malatya, Turkey
baykant.alagoz@inonu.edu.tr
Index Terms--Intelligent transportation, regional development,
renewable energy, smart cities, smart grid, urban planning.
I. INTRODUCTION
Since the early 21st century, smart grid concepts have
begun to be widely discussed regarding the diminishing of
fossil fuel resources and the environmental concerns
associated with massive consumption of these fuels around the
globe. Therefore, smart grid researches primarily aim the
efficiency in energy generation, distribution and consumption
processes that can be accomplished by application of
automation technologies, which are based on semiconductor
power electronics and communication technologies [1], [2].
Throughout its development stages, smart grid topic has been
expanded many field of engineering and applies science. Thus,
smart grids have reached a richer framework that also
discussed by its economic, sociological and environmental
impact.
The possibilities offered by the digitalized technology to
existing electricity distribution grids have not been yet
adequately realized, and many grid components are still based
on techniques that have been found in the past century. As a
consequence, these systems have begun to fail to respond
demands of the growing human population and increasing
electricity requirements of individuals. At this point, the
effective and efficient use of energy has become more
important topics in energy researches. Because, with the
growth of the electricity grids, increasing energy losses in
system leads to inefficiency and wasting of resources. This
issue has resulted in increased energy costs and unfavorable
ecological effects. On the other hand, the excessive growth of
the network has increased complexity of grid management.
Under these conditions, undesirable side effects such as over
or insufficient generation are inevitable and power quality and
grid reliability can be adversely affected. Development models
were discussed in many perspectives e.g. people-centered,
production-centered, market-centered [3]-[6] for different
systems. For regional growing, it is known that production-
centered development is an established model that is more
prioritizing production than other assets. In this model,
development is achieved through the production continuity
and strongly depends on the finding markets and alive
demand. However, growing problems along with increasing
population increases demand to energy, and yet, has been
supplied by conventional power grid, shows adverse effects on
production-centered sustainable development. Because
sustainable development based on production strongly
depends on low-cost and continuous production supplies. In
Fig. 1, some key factors that may influence production-
centered sustainable regional development are shown on the
diagram in a general framework. Some of the basic assets of
sustainable regional development, to which smart grids can
contribute directly, can be summarized as follows:
• Low-cost and continuous production supplies
• Increasing efficiency in production and consumption
• Generation based on renewable and/or recyclable
resources
• Ecological generation and consumption
The problems that are occurred in these areas can interrupt the
production and the sustainable regional development.
In addition to raw materials, another major input of
production systems is energy. Every production system needs
energy to process raw materials and convert them into a
product. At this point, the energy cost is vital for the
competing product in market and the energy continuity is
essential for the continuity of production to avoid interruption
of production. These two factors are very important for the
global competitiveness of generation-based sustainable
regional development.
Recent smart grid studies focus on three basic approaches
for energy generation, distribution and consumption. These
are distributed generation [7]-[9], demand side load
management [10]-[12], and distributed storage [13]. These
studies have the potential to provide the following
contributions to the production-centered sustainable regional
development:

Energy and Market Contribution of Human Resources

Low- Costs Supplies Educational and Expertise Workforce

Production Supply Continuity

Sustainable Regional Continuous Research-Development
Development

Efficiency in Production Improvement of Working Conditions

Efficiency in Consumption Analysis and Decision Support Systems

Geographical and Natural Conditions
Renewable Resources Quality Management and Institutionalization
Climate Conditions

Recycling Accessibility to Resources

Ecological Production and Consumption Geographical Location and Transportation Facilities

Transportation and Logistics Conditions

Direct Contribution Areas
in Smart Grids
Figure 1. Some basic factors affecting sustainable regional development
• Distributed energy generation technologies based on
In this study, the possible contribution of smart grid renewable energy sources, which have become
concepts to production-centered sustainable regional widespread in use with the smart grid, compared to
development is discussed hypothetically. today's fossil fuel based centralized generation. Main
II. POSSIBLE ROLES OF ENERGY EFFICIENCY AND advantages of distributed renewable generation can
CONTINUITY IN REGIONAL DEVELOPMENT be summarized as: (i) reduce transmission losses that
Today, the sustainable regional development can be are caused by central energy distribution and improve
achievable based on production-centered models. In general, the energy efficiency, (ii) energy costs are expected
sustainable production-centered development is a natural to decrease because of widespread utilization of free
result of competitive and continuous production capability. renewable energy resources e.g. solar and wind
Cost and continuity of production supplies have critical energy. Local generation, as dynamos of regional
importance for local production capability that is main development, can reduce the energy costs for the
locomotive of regional development. In liberated market region by supplying energy demand from local and
conditions, a strong and competitive production system renewable energy sources. Thus, it increases the
requires primarily low-cost and continuous supply provision. competitive production capability and directly

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 supports the regional development. On the other
hand, energy from local and renewable sources
contributes to reducing the unfavorable ecological
effects, which may caused from high volume energy
generation and consumption from resources lead to
carbon emissions. As a result, distributed energy
generation technologies can provide significant
contributions to production-based regional
development model by improving compatibility with
ecology and sustainability. Thus, costs and losses
caused by environmental problems can be reduced.
• By establishment the smart grid and utilization of
demand side load management technologies, the
consumption can be shifted to hours when energy
price is low and therefore energy costs can be
reduced. Variable energy pricing [14], [15], which
can be possible by smart grid technologies, can meet
energy demand based on low price tariffs and
renewable energy sources. For example, electricity
prices may decrease at periods when the renewable
energy generation is high and the energy demand is
low. Increasing the use of energy at these periods can
allow to reduce the costs of average energy input and
thus it may support the regional development by
providing more competitive production opportunities.
Consequently, the utilization rates of renewable
energy resources in production can be increased and
ecological production is supported.
Basic Approaches of Smart Grids
Distributed Generation
Demand Side Load Management
Distributed Storage
Figure 2. Possible contribution areas of current smart grid basic approach to sustainable regional development
• Production continuity depending on the energy
continuity can be supported by the distributed storage
technologies [16] emerging in the smart grid
applications. In case of fault, outage or energy
shortage, the distributed storage can provide
production continuity by meeting energy demands for
a period. Continuity of production is very crucial to
preserve market and hence essential for production-
centered regional development models.
Fig. 2 illustrates the potential contribution areas of the basic
approaches of smart grid studies to sustainable regional
development model.
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III. THE ROLE OF SMART CITIES AND SMART
TRANSPORTATION IN REGIONAL DEVELOPMENT
Smart city and smart transportation applications, which
are closely related to basic concepts of the smart grids, also
play an important role in sustainable regional development.
The efficient and low-cost product and passenger
transportation [17], [18] is important for regional
development. Both transportation durations and cost-
optimized transportation systems are factors that reduce
production costs and support competitive character of the
production-based development model. The expansion of the
traveling durations in a non-optimal transportation network
leads to an increase in the amount of energy that is consumed
for transportation activities. This forms negative
environmental and economical effects on regional
development. On the other hand, it causes negative effects on
the human activities in regional development because of
leading to decrease in the performance of the employee and
the work efficiency. Sustainable urbanization benefits from
the sociological, psychological and economic contexts by
offering a livable environment and easy access. Ease of life
activities and easy point to point access in cities are also
assets supporting the production-centered regional
development by increasing individual productivity.
Smart transportation facilitates transportation activates
via smart technologies and decreases energy costs in
transportation using optimal and adequate design of the roads
and connections with the intelligent signaling and routing
[19], [20].
Energy for Sustainable Development
Low Energy Costs
Energy Continuity
Energy Generation Efficiency
Energy Consumption Efficiency
Renewable Resources
In addition, it provides to reduce the negative
environmental impact of mass transportation activities and
supports sustainable regional development with the use of
cheaper and more ecological energy sources in transport [21].
Smart grids increase rates of distributed renewable energy
sources to meet local energy demand and contribute to the
future provision of renewable energy utilization for electric
cars and transportation systems [22]. Thus, smart grids
provide opportunities for low-cost and environmentally
friendly transportation and play a role in sustainable regional
development.
Smart city solutions and smart buildings that facilitate the
individual's life in terms of sociological, psychological and
economic have positive effects on regional development [23],
[24]. These solutions will have socio-economic contributions,
such as improving working efficiency with making city life
easier and healthier as well as measurable effects such as
efficient use of energy in urban activities. Topics such as
intelligent information systems, efficient air-conditioning,
increasing green spaces, urban waste recycling, waste energy
generation and clean environment solutions, present potentials
to provide positive contributions to sustainable development.
Smart city designs and intelligent systems should aim to
improve urban life by reducing the adverse effects of
increasing urban populations [25]-[27]. Automation, remote
monitoring and control of natural gas, clean water and
wastewater networks reduce infrastructural problems
originated from old infrastructural networks. In this context,
the opportunities provided by digital technology should be
used to increase the welfare level of people living in cities.
Therefore, smart grid, smart buildings, smart transportation,
smart services, intelligent infrastructures, smart surveillance,
intelligent planning and design techniques must be considered
as important elements to define the future smart cities and
must be seen to play an important role in regional
development.
IV. CONCLUSIONS
In this study, the effects of smart grids on production-
centered sustainable regional development are discussed and
opportunities are examined. Basically, smart grids have the
potential to provide significant contributions to regional
development in terms of efficiency, sustainability and
ecology. In this respect, it is highly recommended that the
implementation and development of smart grid technologies
should be taken account in today's regional development
projects. Thus, a direct contribution of information
technologies to the development process can reduce the costs
of this processes and it can increase manageability and
sustainability of development projects.
Basic infrastructures such as electricity, natural gas, water,
transportation, communication, renewable resources should be
part of an automated and integrated network in cities. In order
to improve the quality of city services, these network layers
should be accessible and controllable by management centers.
In addition, services should be made faster and more efficient
using distributed sensor and control technologies. Initiatives in
this framework can be classified as active approaches to
provide improvement and supply for needs of city or region.
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