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2019 5th Conference on Knowledge-Based Engineering and Innovation, Iran University of Science and Technology, Tehran, Iran

Internet of Energy (IoE) in Smart Power Systems


Hossein Shahinzadeh Jalal Moradi
IEEE Member, Department of Electrical Engineering Young Researchers and Elite Club
Amirkabir University of Technology (Tehran Polytechnic) Khomeinishahr Branch, Islamic Azad University
Tehran, Iran Esfahan, Iran
h.s.shahinzadeh@ieee.org sj.moradi@iaukhsh.ac.ir

Gevork B. Gharehpetian Hamed Nafisi Mehrdad Abedi


Prof., Department of Electrical Engineering Department of Electrical Engineering Prof., Department of Electrical Engineering
Amirkabir University of Technology Amirkabir University of Technology Amirkabir University of Technology
Tehran, Iran Tehran, Iran Tehran, Iran
grptian@aut.ac.ir nafisi@aut.ac.ir abedi@aut.ac.ir

Abstract— The accelerated trend of development in the areas


of information and communications technology (ICT), as well as I. INTRODUCTION
energy systems, has been led to emersion of a new concept called Internet of energy (IoE) is a cutting-edge concept in the
the internet of energy (IoE). This concept is classified as a field of energy research which is a combination of energy
subsector of the internet of things (IoT), which means the
utilization of advanced digital controllers, sensors, actuators, and
systems and information and communications technology
meters with the ability of information exchange through IT (ICT). IoE is classified as a subcategory of the internet of
infrastructures. The phrase “internet”, in this context, does not things (IoT). In the IoT concept, all objects are connected to
exclusively refer to the World Wide Web rather than any type of each other through modern communicational platforms and
server-based or peer-to-peer network. These communicational the internet. Hence, IoT is known as the third revolution in
tools are able to receive information for local analyze and information technology [1]. IoT drastically improves the
control, receive analyzed commands, send raw data, or send smartness and automation levels of systems. It also improves
instructions. The incorporation of IoT in power systems conveys the visibility of complicated systems and procures real-time
a brilliant future for overcoming power system operation hurdles
monitoring. The power systems are regarded as the central
and environmental challenges, although it incurs a large capital
investment portfolio initially. However, it is hoped that the
core of the energy ecosystem. IoE is an indispensable part of
evolution of current technologies and the advent of new the implementation of smart grids and its corresponding
technologies with economically affordable prices can help to components.
increase the pervasiveness of these state-of-the-art technologies. There are some studies conducted on the IoT applications
IoE covers the entire energy scope such as thermal or electrical in the energy sector, particularly in various parts of power
energies. However, in this study, the applications of IoE in power systems. A comprehensive review is carried out in [2], where
systems, as the central core of the energy ecosystem, will be the various applications of IoT are described including the
addressed. At first, the basic terminology of this topic such as implications of IoT in power systems. The fundamental terms
IoE, IoT, plug & play capability, smart energy, future networks,
pertinent to IoT (such as Identification, sensing,
smart grid 2.0, energy 4.0, prosumers, AMI, API, digitalization,
and grid edge are described to make the rest of paper more
communication, computation, semantics, and services) are
intelligible. Then the role of IoE in supply-side and demand-side explained in this work. The authors, in [3], have evaluated the
of power systems encompassing renewable generation section, roles of IoT in smart grids. In this work, different layers of IoE
large-scale energy storage section, thermal power plant section, in power systems are concisely described. For example, the
system operation and protection as well as execution of demand applications of IoT in smart electrical grids (such as demand-
response programs (DRPs), microgrids, integration of plug-in side management (DSM), renewable energy sources, power
electric vehicles with V2G capability, and end-user residential lines and monitoring of faults, smart homes, electric vehicles,
consumption management in smart buildings are explained. In smart meters, demand response modeling) as well as
this study, it is tried to outline a different classification of IoE in
management services provided by IoT (such as security
power systems which has not been drawn by previous similar
works.
control, planning, power flow data, system monitoring data,
distribution process data, load management data, customer
Keywords— Internet of energy (IoE), Internet of things (IoT), profiling data, and pricing and market data). Besides, different
Digitalization of power systems, Energy 4.0 and smart grids 2.0, types of gateways and networks (such as WiFi, WiMax,
Information and communications technology (ICT) infrastructure;

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Zigbee, Bluetooth, cellular, power line carrier (PLC), green renewable energy sources, distributed generation resources,
radio, 6LoWPAN, Zwave, Gateways, 2G, 3G, 4G, 5G, optics hydrogen-based generation resources, plug-in electric vehicles
fiber, and cognitive radio) and sensors connectivity (PEVs), and a variety of energy storage technologies for
technologies (such as radio-frequency identification (RFID), different applications, which can be monitored or controlled
wireless sensors, cameras, barcodes, intelligent electronic through the internet platform [13]. The phrase “internet” in
devices (IEDs) etc.) are mentioned. In [4], some applications IoT and IoE concepts has a wider meaning than thecommon
of IoT in electrical grids are discussed. In the mentioned work, World Wide Web. As a more general content, any form of
the dynamic stochastic energy management system is network is regarded as the internet or internetworking (IW).
presented. Besides, the role of IoT in smart homes, electric The IoE has a wider content than the smart grid in term of the
transportation, and the open challenges in digitizing electric diversity of resources. For example, gas network and electrical
power T&D networks are elaborately discussed. In [5], the grids and their interconnections can be observed in the energy
challenges and solutions for the integration of IoT in smart ecosystem and can be monitored, metered, and controlled
homes are presented. A comprehensive study on the using advanced Internet-based infrastructure. The information
deployment of IoT in smart cities is represented in [6]. The must be securely and quickly shared with corresponding
authors in [7] have investigated a solar energy harvesting centers and the required actions must be automatically taken
system which takes advantages of IoT devices. In [8], the while big data and cloud-computing architectures may be
applications of IoT in microgrids are investigated. A review is incorporated. Using internet infrastructure improves the
performed to show the role of IoT in the integration of electric observability (visibility) and controllability of the entire
vehicles [9]. The energy management schemes of energy energy ecosystem. Due to the existence of a large diversity of
storage facilities and electric vehicles are introduced in [10]. devices, equipment, energy forms and their correlated inherent
In addition, real-time generation scheduling for the renewable- behavior, intermittency of many parameters in energy field,
based power systems incorporating IoT is presented in [11]. and phenomena with unpredictable or chaotic nature, it is
As it is obvious, so far, all studies conducted on the roles of necessary for IoE to transfer and analyze a large amount of
IoE in electrical grids have focused on a specific aspect among information in approximately real-time operation and making
different scopes of power systems. Thus, the lack of a broad decision and taking commands with a slight delay.
classification is observed to meet the need for a rigorous Meanwhile, the validation and correctness of information must
overview of this topic. This paper attempts to outline a be guaranteed which may be threatened by unintentional or
comprehensive classification for IoE applications in all facets deliberate interruptions or cyber-attacks. The verified
of power systems in various layers. This categorization information must be only accessible for competent people in
provides a precise overview of IoE in power systems. In the authority as well. If the current concerns associated with
following sections, the implications of IoE in various sectors of information and communications technology (ICT) is
power systems from the supplier-side to end-user side are
resolved, the IoE concept can be effectively implemented in
introduced. Hence, the role of IoE in operation of power
systems, microgrids, integration of renewable resources, various parts of energy systems [14].
demand response, integration of electric vehicle with V2G Nowadays, some novel concepts are introduced in the area
capability, and smart buildings will be explained in this study. of energy research such as the second generation of smart
Then a concise summary is given to explain each sector. grids (smart grid 2.0) [15], smart energy, future energy
Afterward, the deficiencies and open challenges in each sector networks [16], industry 4.0 [17], which are connected with
along with the way IoE helps to improve the condition of that internet and telecommunications technologies.
sector are described. Smart grid 2.0 refers to the next generation of smart grids
which will be implemented from 2020 which has specific
II. INTERNET OF ENERGY (IOE) distinctions such as increase in interactions between supply-
The recent developments in renewable energy section, sides and demand-side using advanced smart metering
telecommunication equipment, controlling schemes, power infrastructures, share of energy and its correlated information
supply, and storage technologies, information technology, between deserved players using informatics infrastructure, and
cybersecurity, computer, and particularly IoT have been led to the plug & play capability, which means the ability to provide
the advent of a new concept known as the internet of energy energy even by tiny-scale generation resources (e.g. V2Gs) so
(IoE) [12]. The internet of energy expression officially and that they can be able to deliver power to the grid as easy as
systematically was first coined by Jeremy Rifkin, an American plugging in a plug into an outlet. Such a consumer which can
economic theorist, in his best-selling book titled “The third sometimes play the role of a provider is called “prosumers”. It
industrial revolution”, and he has investigated the impact of is noticeable that the ability of connection or disconnection of
technological and scientific changes on the economy, energy distributed generation at each desired moment is not possible
sector included. In general, IoE refers to a new paradigm for at the current time. However, in smart grid 2.0, a wider range
the operation of some elements in power systems such as of consumer devices and equipment will be in control which

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provides more flexibility for power systems. The control of and the use of steam power, the invention of electricity, and
such a massive number of elements cannot be viable without industrial automation [20]. The 4th generation of industry
improving the smartness of grids. It is alleged that more than points out some items such as IoT, cyber-physical systems,
50% of demand will be controlled by real-time controllers in cognitive computing, and cloud computing. Energy 4.0 is also
smart grids 2.0. In such an environment, all players can another terminology which offers a fascinating insight into
participate in power markets and monitor its transactions and sustainable strategies and innovative technologies for future
power exchanges using an internet-based interface in peer-to- energy on the way to post-fossil societies. The era of fossil
peer (P2P) mode, in which the buyer and seller are specified. fuel burning, the era of fossil-based electricity, and the era of
In the first generation of smart grids, the main attention has renewable energy are three previous generations and the era of
been focused on the development of fundamental prerequisites digitalization of energy sector is referred as energy 4.0 which
such as advanced metering infrastructures (AMI), and the features deployment of IoT sensors, cloud computing, big data
installation of them in the local distribution networks. analysis, cybersecurity, high-performance and economical
However, the smart grid concept will be more globalized at a solar systems, the control of grid in various voltage levels
wider level using IoT-based interfaces and will be inclined regard to data gathering and data analyzing using
toward a macro-level and worldwide pervasiveness. The smart communicational platform, and providing more interactions
grid 2.0 must be able to keep working after any contingency between the utilities and end-users through digital interfaces.
automatically and effectively so that the infected region The energy sector has entered the era of energy 4.0 by the
immediately begin to be supplied using self-healing schemes, implementation of the smart grid and will continue toward a
which highly depends on real-time data gathering and brilliant future [21].
analysis. In addition, the proper application programming In the following parts, the concept of IoE will be explained
interface (API) will be employed as a platform to display for various parts of power systems. IoE is basically segregated
information for P2P and third-party access [18]. into three categories. The first is generation resources such as
Smart energy refers to a platform for integration of all electrical generation resources (hydropower, wind, solar,
kinds of energy into a single management model using rich thermal etc.) and non-electrical (crude oil, gas, coal, biofuel
databases and online information connections to provide etc.). The second is energy consumption including electrical
further monitoring of energy usage than exclusively electric usages (such as an electric heater or electric vehicles) and non-
power. As an instance, the energy consumptions for fuel in electric usages (such as heating or transportation). The third is
transportation or heating can be monitored. electrical energy storage (pumped-hydro storage, compressed
air energy storage etc.) or non-electric energy storage (fuel tank
The concept of future networks (or future grids) refers to
for storage of crude oil, gas, and petrol).
some state-of-the-art concepts in the energy sector and leads
with the future expansion of energy systems. The more III. IOE IN POWER SYSTEMS
utilization of microgrids, electrification, and decentralization
Various parts of the electricity network will be heavily
of generation resources, digitalization, and energy sharing are
influenced by information and communications technology as
some of them. All technical requirements for modernization of
well as cutting-edge advances in instrumentation and
power systems are classified into four layers encompassing
automation. These impacts can be investigated for the supply-
data analysis layer (including visualization, AMI data
side sector, and demand-side sector where the following
analysis, distributed energy resources analysis, equipment’s
concepts can be mentioned and explained:
data analysis), application layer (supervision of equipment,
data management, DERMS, AMI), communication and A. IoE in supply-side
control layer (including AMI connection network, internet-
protocol-based networks, supervisory control and data 1) IoE and renewable energy section
acquisition (SCADA), bidirectional wired or wireless Renewable energy sources (RES), also known as green
communication protocols such as Zigbee, WiFi, HomePlug, energy, is the sustainable solution to tackle with various
power line carrier (PLC), GPRS, WiMAX, LTE, Lease Line, problems caused by excessive consumption of fossil fuels and
and high-bandwidth 5G wireless communication), and production of large amount of air contamination and emission
physical equipment in grid edge layer (including smart of greenhouse gases, which are compromising the natural cycle
metering devices, supervisory and monitoring equipment, of the life on earth and have caused different environmental
storage equipment, voltage control equipment, protection issues. Current power systems heavily rely on fossil fuel for
equipment, modern sensors, and switches of the power grid) energy. The large penetration of RES, particularly wind farms
[19]. and solar parks, requires a massive investment. In addition, a
Industry 4.0 is the name given to the 4th industrial large capacity of quick-start fast-response generation must be
revolution while observing the trend of automation. The provided as reserve capacity to compensate in emergent
previous generations were the invention of the steam engine conditions.

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Past Present
Information Flow System Transmission Control Distribution Control
Power Flow Operator
PV
Residential
Residential
Transmission Customer Control Centre Substation
Customer
Substation
Distribution Wind Distribution
Transmission
Substation

Substation Industrial
Industrial
Thermal Power Station Customer Thermal Power Station Customer Commercial Customer
Commercial Customer

Future
Transmission Control Centre Control Centre
Charging
Office
Station
Charging
PV Station

V2G
V2G

Residential
Wind Distribution Customer
Transmission
Distribution
Substation
Retailer

Hydro & pump- Network management and Industrial


storage power Thermal Power Station Storage data center Storage Customer Commercial Customer

Fig. 1. IoE and future networks

Furthermore, a large penetration ofRES threatens the use of the advanced internet-based remote controlling
security and stability of the grid due to the reduction of power equipment can boost the profitability of such units [22].
system inertia. Thus, the energy experts are struggling to In addition, modern market structures are proposed based
achieve sensibly economical renewable generation resources on the large penetration of RES. The deployment of real-time
with better performance and a higher level of observability and generation tracking tools and corresponding demand-side
controllability. Assuming such improvements in technology, interfaces can connect suppliers to the insensitive customers
the main hurdle that such units are encountered with is the (e.g. private storage units) who accept the risk of
intermittency of RES. Wind energy is so volatile and solar intermittencies instead of a more economical price of
energy is intermittent.
electricity. Such ideas will be matured further in the future.
The large-scale harness of RES is intended to be discussed The real-time monitoring (and control) of renewable
in this section, and the small-scale distributed renewable generation will be managed in large-scale rather than local
generation will be discussed in section B.1. The stochastic scales, which procures an integrated free clean energy
nature of RES mitigates the reliability of the power system harvesting of RES that yields system-wide benefits and
and may cause load shedding to the loads. It also makes the facilitates the generation scheduling and energy management
generation scheduling more sophisticated while the in power systems.
consumption of demand is fluctuating too. In this regard, a IoE is making revolutionary changes in the expansion of
considerable share of harvestable RES is being curtailed. solar and wind sectors in large-scale. Without internet
Paying attention to the modern structure of power systems, the platform and communicational equipment in the future, the
countries and governments tend to implement highly management of a huge number of elements in the grid,
competitive energy markets, electricity market included. This particularly in renewable section, cannot be perform using
measure requires large privatization and massive contribution traditional methods with the intervention of humans. In
of private equities. The owners of such units are not willing to addition, the data corresponded with each element must be
pay penalties for deficiency or loss profit due to curtailment. transferred as quickly as possible to the local, regional or
They are also banned to participate in ancillary services national centers. The data must also be analyzed and proper
markets. Hence, the implementation of IoE infrastructure in controlling commands must be issued and executed. The wind
the renewable sector for accurate online state monitoring and turbines in a wind farm and photovoltaic panels in a solar park
are usually clustered in a wide area of land. When a system

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becomes too complex and dispersed by having a myriad of work in large-scale applications. Fly-wheel, fuel cell, and
factors to be checked, it can cause logistical problems for the different batteries are usually used in small-scale applications
executive operators. To ensure the proper real-time state of all such as power quality and frequency regulation. The large-
elements of each individual item, a lot of expenses must be scale applications will be discussed in this section and the
spent (salary of the workforce, transportation of technicians, small-scale demand-side applications will be presented in
waste of time etc.) in long-term. These hurdles mount the section B.1.
vulnerability of the grid considerably. Real-Time state If the IoE infrastructure is implemented to large extent, the
monitoring easily tackles such problems in the exploitation of various parts of the power grid can have better coordination
RES. As an example, some kinds of wireless ready-to-connect with each other. Energy storage units play a key role in
with built-in security bundle solutions are cellular modules increasing the flexibility of power systems and ensuring
and routers, containing an embedded SIM, pre-connected to reliable operation. RES are obliged to curtail their excess
the global mobile networks that can be used to facilitate an generation in a restructured environment. The deficiency in
end-to-end system for IoE [23]. This technology is designed to generation must also be compensated from the real-time
be used in solar parks and wind farms. While some challenges market. This fact decreases the profitability of RES. To tackle
exist toward developing pervasiveness of IoE in the RES this problem, RES should have a collaborative operation with
sector, they are not debilitating for RES companies. By using a storage unit to be supported against volatilities. On the other
IoT in the RES sector, especially solar and wind parts, many hand, the excess generation of RES will be sold to ES with an
of these issues can be resolved with a sensible investment and alleviated price than the real-time market clearing price. This
little effort. The installation of a simple fully-integrated matter can materialize better profitability for both of them.
system, which enables the operators to manage the entire grid, However, the positive or negative imbalances of RES will
is the key to success. This also gives them the ability to be determined in near real-time. Thus, a proper reciprocal
distinguish and fix problems in near real-time. The main communicational platform is needed to connect RES and ES.
advantage of employing IoT in solar and wind energy is that If the RES and ES are located on different buses, the trade
all things that are happening with all your assets can be must be transmitted through the lines. In this case, the system
monitored from one central control panel. The origin of any operator must observe all transactions and trades to retain the
problem can be found before the disruption of the entire secure operation of the grid. Thus, the deployment of IoT for
system [24]. real-time data exchange between the system operator, RES,
and ES is indispensable. Hence, IoE in the ES section
2) IoE and energy storage technologies
improves the RES extraction and helps to attain better real-
The current trend of fossil fuel consumption, deforestation, time observability and controllability to redress the
old transportation systems are alarming the future of life on imbalances using ES technologies. The integrated model of all
this planet. The energy experts have declared that more storage capacities dispersed in a power system is illustrated in
exploitation of RES is necessary to revive the earth. The Fig. 2.
commitment of RES in satisfaction of demand causes a set of
problems for power system operation due to intermittent
nature. In addition, large penetration of RES can cause Factory storage
Renewable storage
problems such as the duck curve problem in California
because the thermal power plants cannot sustain steep ramp IoE Office storage
rates. The solution to tackle problems is to utilize energy
storage (ES) facilities [25]. Energy storage technologies are Grid storage
specified for three main purposes of bulk energy time-shifting,
Commercial storage
frequency regulation in small-scale, frequency stability in
large-scale, and power reliability (reserve) [26]- [28]. So far, Household storage
various ES technologies are developed for different Fig. 2. The energy storage management by IoE
applications. Pumped-hydro energy storage (PHES) [29], and 3) IoE and Thermal power plants
compressed air energy storage (CAES) [30] are the two most
successful schemes for bulk energy time-shifting purpose. In The presence of thermal units is a necessity for
addition, some emerging types of ES are introduced such as guaranteeing the expected reliability and resiliency of power
the advanced rail energy storage (ARES) [31], the underwater systems. They also are used to maintain the base load.
compressed air energy storage (UWCAES) [32], the liquid air However, due to emission and environmental facets, the role
energy storage (LAES) [33], ocean renewable energy storage of them will be mitigated in future grids and they will be
(ORES) [34, 35], and the blue battery in green power islands replaced by RES to large extent. But the load satisfaction with
[36], which are tested as prototype or in pilot scale and can exclusively relying on RES significantly threatens the security

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of the grid. In addition, fast-response units, such as gas-fired be managed automatically using IoE infrastructure. It must be
units and combined-cycle generation units are good mentioned that the system operator is faced with a massive
alternatives in emergencies. The coal-fired and nuclear power amount of uncertainty in the model, and the power system has
plants are not desired for future expansions due to also its inherent features that make the scheduling more
environmental issues. The conventional steam plants have also complex. The scheduling must comprise various items such as
low efficiencies and have operational restrictions. They are the features of all kinds of generation resources, the state of
also so rigid and have slow flexibility for controlling transmission and distribution components, and the modeling
commands. Gas-fired units will also be called for commitment of various types of loads. In addition, the security constraints,
as late as possible due to high operation cost. Thus, in future the demand response capacities (as virtual power plants
power grids, the IoT probably will have a slow evolution in (VPP)), and the impact of storage units must be integrated.
this sector compared with other parts of the power grid. It is IoT helps the operator to procure better incorporation of
because the goal is to mitigate the commitment of thermal existing components and assets and their associated modeling
units. However, the data of all thermal units must permanently [37]. Besides, modern protection schemes and techniques can
be sent to the control center to be observed along with all data be employed and digital protection equipment can be installed
acquired from other sectors of the power system. Thus, the which sends instantaneous reports to the protection centers
secure high-speed communicational platform must be using ICT infrastructure. This matter can prevent the
accessible for all thermal plants. The IoT infrastructure can catastrophic consequences of contingencies such as blackouts.
also help the power plants’ owners to track the state of health
B. IoE in Demand-side
of all equipment in the power station using advanced sensors.
Thus, proper preventive maintenance schedules can be 1) IoE and microgrids
arranged and executed to prevent financial detriments due to
failures and increase the availability of thermal plants. In A microgrid refers to a localized group of electrical loads
time control over equipment increases -addition, the real and small-scale generation resources (microsources), which
enjoying IoT infrastructures for various elements of a can satisfy all or part of its demand to large extent.
conventional thermal plant, which can be led to efficiency
.improvement Geographical
information system

4) IoE and power system operation and protection Switch


Preventive
control
maintenance system
IoE will play a substantial role in future power systems. Capacitor
bank
The integration of RES is mounting in the grids. This matter Frequency
Collaborative
helps to alleviate the costs of operation and to reduce operation
control
Power line
emission. However, the uncertainty in power system operation monitoring
Transformer
will be increased which can threaten the security of the grid. Distribution
monitoring
management system
To ensure security, part of uncertain renewable generation Distributed
Generation
may be curtailed and load shedding measures may be Outage management Substation
metering
imposed. However, by the implementation of IoT system Electrical
Vehicle
infrastructure, revolutionary changes will occur in the Access
charging
Meter Data
operation of the grid. The system operator has access to rich Management control
Transformer
instantaneous databases that gives better visibility and smart meter
monitoring of the system. In addition, the operator has more Federated Access
Workforce
management
control over small-scale loads. This matter can be managed Energy
storage
automatically by incorporation of IoT-based devices. For Data Management Preventive
maintenance
example, if the operator decides to reduce the consumption in System
system
Smart meters
a certain feeder in the distribution level, a corresponding Customer
residential
signal will be sent to the targeted regional distribution center. information system Fault detection
That center can also send a similar signal to all consumers on VOLT-VAR
that feeder. Each individual consumer may also have various Enterprise resource
planning Harmonics
pre-defined and adjustable controlling schemes and they may filtering

be equipped with certain IoE-based interfaces and automatic Demand response


Grid side
Distribution
controllers that inform the consumer to reduce its & DSM feeders
consumption. In addition, pre-defined strategies for energy
Network operations Centre
consumption reduction may be defined by the user to turn
Fig. 3. Infographic of IoE in power systems
some loads off automatically. All these controlling tasks will

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The emersion of microgrids is accelerating in power microgrids to have the more efficient operation of the
systems, especially office sites, universities, residential distributed capacities. In addition, IoT digital intelligence
communities, military sites, and industrial regions etc. helps to solve security issues concerned with the connection of
Microgrids can be designed to operate independently (isolated, two microgrids to each other due to rapid fluctuations in
islanding mode, off-grid mode) or collaboratively (connected generation or consumption, which particularly impact
to an upstream grid). If a microgrid is connected to the main industrial consumers economically in case of outages or
grid, the excess generation of intrinsic resources can be sold to brownouts. IoT can also provide better maneuverability for the
the upstream grid to increase the profit of microgrid. A microgrid’s operator to model and control the microgrid, and
microgrid may be comprised of a set of distributed generation to perceive a better insight into components’ behaviors.
(DG) sources such as gas-fired combustion turbine, diesel Modern analytical techniques can be employed by the operator
generator, micro-turbines, reciprocating engines, biomass, and to analyze the components patterns.
waste-to-power units along with small-scale RESs such as Controllable generation

small-scale wind turbines and solar panels. Some of CHP Natural Controllable
Fuel cell Utility grid
abovementioned generating units can be used in a combined gas load

heat and power (CHP) scheme to improve efficiency [38]. In


addition, small-scale storage units should also be used to store
Photovoltaic

Limited or non-controllable
the excess generation of small-scale RES when there is a
lower level of demand. Such small-scale distribution networks Wind farms
Microgrid
IoE
generation Manager
usually integrate battery storage units but utilization of fuel
cell, micro-CAES, and flywheel units can be found in some Backup
generation
cases. Many hybrid schemes are proposed to investigate the
cooperative operation of microsources and storage facilities UPS
Energy storage
which are present in the microgrid. In addition, some Thermal/ Electrical
researches have proposed the paradigm of interconnected Fig. 4. The deployment of IoE in microgrids
microgrids which mitigate the reliance on the main grid [39].
Two concerning issues of the current microgrids are power 2) IoE and demand response
quality and efficiency of the system. At the current time, the Before the last two decades, the demand model was
microgrid’s operators conduct their own forecasts and considered to be a random process which is governed only by
schedules. The internal control of microgrid’s components statistical laws. Thus, the power industry has developed very
will be managed by the microgrid’s operator. In this situation, sophisticated approaches to adapt generation to demand in
the operators of the main grid or the market operator or the real-time. This lack of control on demand incurred high costs
regional transmission organization have no monitoring and because the grid dimension was designed for peak
control on microsources of the microgrid. From a system transmission; large power plants should be constructed to
operator point of view, a microgrid is regarded as a single load serve the demand for just a few hours within a year; a
and must be dealt with like an aggregator or retailer for power considerable detriment was incurring due to the costs
exchange. Hence, due to the inevitable uncertainties and the associated with emission. However, more pervasiveness of
internal limitations of the microgrid, part of energy may be electricity markets and developments of the communications
curtailed. networks, which are capable of controlling and monitoring
By implementation of IoE infrastructure, the data demand at the consumer level in real-time, have emerged the
corresponded with all microsources can be shared with the idea of demand response programs (DRPs) [40]. Currently, the
main grid’s operator, which is not done at present. This is a world is experiencing a transition. The advent and ubiquitous
massive amount of in-detail data which requires a large presence of the internet have facilitated the demand response
burden to be analyzed. However, incorporation of the (DR) implementation to be more user-friendly and more
elaborate instantaneous signals of microsources and internal attractive for the consumers. The loads can be made aware of
load patterns along with the evaluation of historical records of electricity price at real-time using different IoT-based
microsources can provide a more comprehensive probabilistic technologies such as smart counters, AMIs, web servers, and
scheduling that it brings tangible benefits for the power mobile networks or internet-based applications. The user can
system. For example, more exploitation of RES, alleviation of manage its consumption by tracking the state of its internal
emission, prevention of incurring considerable costs loads and can have remote control over them using IoE
pertaining to the commitment of more expensive units can be technologies. The control over equipment in the residential or
mentioned. In another word, the incorporation of IoE in industrial sections can be managed automatically using IoT
microgrids helps to mitigate the risk and manage the operation controller technologies. Hence, a proper reaction can be done
of the whole system better enjoying the existing potentials of in the requested time by elastic loads.

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DRPs are segregated into time-based rate programs (TBR) deployed parking lots throughout a city or residential EV
and incentive-based programs (IBP). TBR refers to the model supply equipment (EVSE). Thus, an EV can be modeled either
of electricity pricing which provokes a reaction by the as a simple load or as a prosumer, which favorably will be
consumer due to instantaneous price. TBR has three kinds of charged at valley hours of the demand curve and may be
time of use program (TOU), real-time pricing (RTP), and interested in delivering the power back to the grid at peaks to
critical peak pricing (CPP). These programs incline the user to earn a profit. The controversial issue is the modeling of large-
have a sensitive reaction associated with the instantaneous scale integration of EVs regard to their mobility and stochastic
price of electricity [41]. IBP is classified into three categories behavior. They may charge their car at any time and may
of voluntary programs (including direct load control (DLC) deliver power to the grid whenever they want. Furthermore,
and emergency demand response programs (EDRP)), EVs have not a unique position and they may relocate from
mandatory programs (including capacity market program one bus to another. Hence, the incorporation of V2Gs is a
(CAP) and interruptible/curtailable (I/C) services), and market huge source of uncertainty in power system modeling which
clearing programs (including demand bidding/buyback (DB) can compromise the security of the main grid, and this issue is
and ancillary services market (A/S)) [42]. not addressed by researchers yet. In such a situation, IoT
Obviously, the execution of all these programs can be infrastructure can provide better monitoring of EVs to conduct
facilitated enjoying IoE. The system operator will have more better scheduling for the next hours. First, the approximated
elaborate control over a wider range of consumptions. Hence, amount of normal EVs and V2G-capable EVs must be
they can make smarter decisions. They can impose more distinguished. Then the consumption pattern of each feeder or
intelligent consumption reductionf or load shedding. In the each public parking lot must be recognized which helps the
past, the entire feeder must be disconnected to impose load operator to have a better prediction and estimation. Then
shedding. Enjoying IoT technologies, the operator has more probabilistic forecasting approaches must be employed to
options to reduce consumption. They can have control over conduct scheduling. However, such scheduling is not
the small-scale loads and can choose to turn them off by type, adequately accurate due to the massive uncertain parameters
classification or category. Thus, the user will not be in the model. IoT can definitely help to tackle this problem.
unsupplied entirely. In addition, each individual load can be Each V2G must be equipped with sensors and AMI that are
connected to AMIs for receiving various data such as price to capable to connect to a cloud network in the area of a city and
manage the consumption of electrical devices automatically its close vicinity [43]. The data of all EVs present in the city
using IoE infrastructure. The manufacturers of various kinds should be gathered instantaneously. The data will be
of electrical equipment are inclined to equip their products monitored and the proper forecasts for power consumption or
with IEDs and controlling boards capable of remote control or power delivery will be performed based on the individual
automatic control with the ability to connect to internet-based pattern of each EV using data mining techniques. In the case
or cloud databases or AMIs. In addition, appropriate APIs can of emergencies, the operator is capable to stop charging of
enable the user or operator to manage and control the V2Gs or promote V2Gs for power delivery at a certain time.
consumptions and monitor the patterns visually. Hence, the deployment of IoE in V2G modeling is
It is evident that the DR notification mechanism requires a indispensable [44].
reliable communicational system, and the way customers can
4) IoE and residential consumption management
manage their usage by shifting or reducing electricity
consumption can be facilitated using IoT infrastructure. In Residential end-users have certain consumptions in their
addition, the reduction or shift of consumption can be carried houses. They usually tend to use off-peak power instead of
out automatically using advanced controlling equipment with expensive peak electricity. But the off-peak period is late at
the capability to connect to telecommunications networks. night when most consumers are asleep or inactive. Hence, IoE
infrastructure can help to facilitate the management of energy
3) IoE and plug-in electric vehicle integration
in buildings [45]. Hence, the concepts of smart buildings and
The technologies associated with plug-in electric vehicles smart homes are framed as a subcategory of smart grids in
(PEV, or EV) are evolving rapidly. It is predicted that EVs demand-side [46]. At first, all end-users must be equipped
will have a profound implication on power systems operation with advanced counters (or AMIs) to get aware of the
in the future decades. If purchasing price of EVs and the instantaneous price of electricity. The type of pricing system
technologies corresponded with the efficiency of EVs can be uniform pricing, time-based rate (TBR) pricing, or real-
improve, EVs will have more pervasiveness in modern smart time pricing. In the recent decade, the manufacturers of
grids to large extent. Some kinds of EVs have the ability to residential appliances are equipping their products by IEDs
exchange power (injection or absorption of power) with the with IoT connectivity capability to have real-time informatics
grid. This feature is called vehicle to grid (V2G) capability. connection with AMIs. These devices can be programmed to
EVs exchange power with the distribution grid through widely do some duties automatically, which brings economic

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advantages for the owners. For example, a dishwasher is able operators. In addition, better observability and controllability
to start the machine when the price of electricity is cheaper or of all system components will be maintained for the operator.
will be cheaper. The concept of smart building monitors and The local control centers or the control center of the main grid
controls many items in a house automatically or through monitor the instantaneous state of components using IoT
remote control by the user using mobile applications or web- infrastructures and the appropriate controlling commands will
based servers by using cloud data transferring [47]. Some of be sent to corresponding sectors. Hence, it is hoped that the
the IoE usages in a smart building are the remote control of implementation of the IoE scheme will bring tremendous
energy electricity consumptions by electrical devices such as economic and environmental benefits for power systems
TV, washing machine, dishwasher, refrigerator etc., the which will outweigh its required capital costs of IoE. All in
control of HVAC system, the control of doors, the 24/7 all, the employment of internet-based technologies in power
monitoring of the house through security cameras, control of systems brings immense benefits for power systems in
lighting etc. as depicted in Fig. 5. different sectors and outlines a brilliant future for the
development of energy sector in terms of economic, social,
and environmental sustainability.
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