Smart Grid

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Smart Grids; The Science and Technology of Energy (Term Report)
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The Science and Technology of Energy
Term Report
Smart Grid
By:
Zahra Abdallah (201703001)
Ibrahim Olleik (202125305)
To:
Professor Carine Habchi
November 30 2020
1
Table of Contents
Abstract: ....................................................................................................................................................... 4
1-Introduction ............................................................................................................................................ 6
1-1 Smart Grid .................................................................................................................................... 7
1.2 Literature Review ........................................................................................................................ 9
2-Smart Grid Technology ..................................................................................................................... 12
2-1 Definition and Science of the Smart Grid ............................................................................ 12
2-2 Smart Meters .............................................................................................................................. 13
2-2-1 Advanced Metering Infrastructure (AMI) ................................................................................................................ 13
2-3 Smart Systems and Appliances .............................................................................................. 14
2-3-1 Smart Homes ........................................................................................................................................................................ 14
2-3-2 Distribution and Communication Systems ............................................................................................................... 14
2-4 Renewable Energy Resources ................................................................................................. 16
2-4-1 Solar Energy - Photovoltaics (PV) ............................................................................................................................. 17
2-4-2 Wind Energy .......................................................................................................................................................................... 17
2-5 Other Technologies ................................................................................................................... 18
2-5-1 Plug in Electric/Hybrid Vehicles .................................................................................................................................. 18
2-5-2 Energy Storage Devices ................................................................................................................................................. 19
2-6 Benefits of Smart Grids............................................................................................................ 21
2-6-1 Reduced Cost of Energy Production ........................................................................................................................ 21
2-6-2 Reduced Emissions........................................................................................................................................................... 21
2-6-3 Energy Conservation ........................................................................................................................................................ 22
2-7 Challenges in employing Smart Grids .................................................................................. 22
2-7-1 Security [18]........................................................................................................................................................................... 22
2-7-2 Cost ............................................................................................................................................................................................ 24
2-8 Assessment of smart grid initiatives in developed and developing countries ............... 25
2-8-1 United States .......................................................................................................................................................................... 25
2-8-2 Developing Countries - India and Brazil .................................................................................................................... 26
3 - Recommendations & Conclusion .......................................................................................... 28
3-1 Recommendations: .................................................................................................................... 28
3-1-1 Enhancing and Guarantying Security ...................................................................................................................... 28
3-1-2 Overcoming High Cost..................................................................................................................................................... 29
3-1-3 Employing Microgrids and Adopting New Technology ................................................................................... 30
3-2 Conclusion ................................................................................................................................... 31
References ................................................................................................................................................. 32
2
List of Figures and Tables:
Figure 1- Two-way communication of a smart grid ..................................................................... 13

Figure 2- Smart communications.................................................................................................. 15
Figure 3- PV Cells ........................................................................................................................ 17
Figure 4-Wind Turbine ................................................................................................................. 17
Figure 5- Trends in Renewable energy with the use of wind, solar, hydro, and geothermal
energy............................................................................................................................................ 18
Figure 6-Plug in Electric Vehicle ................................................................................................. 18
Figure 7- Distribution of Smart Grid projects in the U.S. ............................................................ 25
TABLE 1: COST BENEFIT ANALYSIS OF SMART GRIDS .............................................................. 24

TABLE 2 – SMART GRIDS UNITED STATES .................................................................................. 25
TABLE 3: INDIA SMART GRID ..................................................................................................... 26
TABLE 4: BRAZIL SMART GRID .................................................................................................. 26
3
Abstract:
Smart Grid technology is an emerging breakthrough that will ensure the sustainability of the
power sector. It focuses on the two way communication system between the generator and end
user, thus increasing the efficiency of the system. The aim of the present study is to give an
explanation of this emerging technology. At first, the SG was introduced with the literature review,
then the mechanism behind it was discussed in details. Finally, it was concluded that this emerging
technology will be the solution for attaining sustainable energy sector.
Keywords:
Smart Grid Technology, Power Sector, Communication System
4
Chapter One: Introduction
Chapter One
Introduction
1-Introduction
A smart grid, also called smart electrical/power grid, intelligent grid, intelligrid, future grid,
intergrid, or intragrid, is an enrichment of the 20th century power grid. The conventional power
grids are generally used to carry power from a few central generators to a large number of users or
customers. In compare, the Smart grid uses two-way flows of electricity and information to create
an automated and distributed advanced energy delivery network.
In this study the aim is to shed the light on the principles of smart grid technologies. The first
chapter is dedicated for introduction into smart grid technology and the literature review.
Moreover, chapter two included the investigation about the mechanism of smart grids. Finally
chapter three includes the conclusion about this emerging technology.
6
1-1 Smart Grid

The present isolated electric energy system revolutionized the pace of human growth in terms of
manufacturing, transportation, etc… However, consumers are expanding their energy needs where
electric vehicles and remote control of in-home appliances to enhance energy usage by the
consumer are becoming the new trend. As a result, the entire energy system is subjected to be
driven into more efficiency, conservation, and using renewable energy resources to generate
electricity.
Traditionally, the term “grid” is related to the electricity sector in its four main components:
generation, transmission, distribution, and control. Anderson et al.1 defined the smart grid “SG” as
an electric system that uses information, two-way, cyber-secure communication technologies, and
computational intelligence in an integrated fashion across electricity generation, transmission,
substations, distribution and consumption to achieve a system that is clean, safe, secure, reliable,
resilient, efficient and sustainable. The ultimate smart grid is a vision, keeping in mind that for
every step of implementation cost justification is needed, and before deployment extensive test
and verification is required. Assuming fully realized 1, achieving a smart grid will be a gradual and
evolutionary process that will take many decades to be fully realized.
7
A brief comparison between the existing grid and the SG is presented in the following table 1,
Table 1- Comparison between the existing grid and the smart grid
Existing Grid(Centralized) Smart Grid(Decentralized)
Electromechanical Digital
One-way communication two-way communication
Centralized generation Distributed generation
Few sensors Sensors throughout
Manual monitoring Self-monitoring
Manual restoration Self-healing
Failures and blackouts Adaptive and islanding
Few customer choices Many customer choices
8
1.2 Literature Review

According to Bharothu et al. [2], the rapidly growing demand for energy combined with the
reduction of conventional energy sources in recent years have led to the transformation of the
energy sector. Households and other energy users can now both produce and consume energy.
They can also either store the surplus for future use or send it to the grid for sharing with other
energy users. As a result of this transformation, the smart grid gave rise to “prosumers” who
contribute to the energy supply. Group of prosumers or PCG (prosumer community groups), refers
to “a network of prosumers, having relatively similar energy sharing behaviors, who endeavor to
pursue a mutual goal and jointly compete in the energy market [3]”.
Compared to the traditional consumers who use energy from the grid, prosumers generate,
consume and actively transfer or store excess energy [4, 5]. Prosumers can also store excess energy
using Energy Storage System for future use, or sell the surplus energy to the grid or nearby
consumers [6]. Prosumers use smart meters during energy production and integrate these devices
with household energy management systems, energy storage systems, electric vehicles, and
vehicle-to-grid systems to efficiently integrate into the smart grid. The use of smart devices and
communication devices in the prosumers houses, enhances the efficiency of SG by offering storage
capacities to manage supply fluctuation and support for overall electricity across local and other
grids.
Sustainable energy supply is achieved by a group of prosumers that commute via gateway, which
connects the PCG community through smart devices to enhance sustainability in the electricity
sector. The study conducted by Rathnayaka et al.[7] stated that Optimal prosumer communities
offer a range of socio-economic benefits namely enhancing prosumers bargaining power,
achieving higher sustainability, facilitating efficient energy transfer, reducing energy transfer cost,
reducing energy loss, and promoting active involvement of the energy user into the supply chain.
The prosumer market represents the services that circulate between the different SG entities.
Prosumers could potentially integrate into the energy markets through three engagement models.
One is the P2P model which involves a decentralized, autonomous, and flexible P2P network
where prosumers interconnect directly with each other. Another is the prosumer-to-grid model that
involves prosumers providing services to either an independent micro grid or a micro grid
connected to the main grid. The third is the organized prosumer group model which is composed
9
of multiple groups of prosumers. The groups work together and pool resources for community
benefit or can become large enough to form a prosumer VPP [8].
The management of provider-consumer relationship is substantial for the SG technology, so care

must be taken for the implementation of proper policy to reach a sustainable and safe environment.
The study of this relationship is conducted through different models, one of the models conducted
by Alriyami et al. [9] include the following four phases- registration phase, request phase, delivery
phase and confirmation phase. A central authority handles operational control within the system
and also plays the role of a broker agent that enables communication among providers and
consumers. Network control agents and smart meters provide control of the end users’ connections
to the grid. A Finnish private solar power owners and Energy Company conducted a study between
the prosumers and energy companies [10]. Findings reveal that prosumers strongly expect to be
acknowledged by the energy companies as being co-producers. Failure to do so may result in
prosumers’ refusal to sell surplus energy to the grid. As a result, the perception of other
stakeholders or the society towards energy companies is affected particularly from a corporate
social responsibility perspective. On the other hand, since co-production entails working together,
prosumers receive support from their energy company as part of the company’s community
involvement.
This paper provides information about future grids technology and the mechanism of operation.
10
Chapter two: Smart Grid
Chapter Two
Smart Grid
2-Smart Grid Technology

2-1 Definition and Science of the Smart Grid
The following tree chart defines the SG technology, [11]
It is an electricity network enabling a two-way flow of electricity and data with digital
communications technology enabling to detect, react and pro-act to changes in usage and
multiple issues. Smart grids have self-healing capabilities and enable electricity customers
to become active participants.
Using control systems, it can detect and repair systems without interventions.
The latter requires the development of many smart grid technologies and the building of grid
structure with a variety of:
Smart meters smart systems and appliances renewable energy resources. other technologies.
12
2-2 Smart Meters
2-2-1 Advanced Metering Infrastructure (AMI)

One of the principal challenges in operating an electricity system is ensuring that the demand for
electricity is always exactly equal to the supply. Smart meters like this make it happen: [12]
A smart meter that can record information such as consumption of electric energy, voltage levels,
current, power.
Enables two way communication between consumer and supplier reporting regularly through
short intervals, as indicated in figure 1.
Information provided to the customer, typically through an internet portal, usually includes 15
minute or hourly electricity use along with information on current month usage and expenditures,
estimates of the total monthly bill, and in some cases, information on electricity use of similar
customers in the neighborhood.
Figure 1- Two-way communication of a smart grid
The ability of smart grids to engage customers to reduce electricity use at peak periods is a
primary benefit of smart grid investments. Utilities that pay $10/kW or even $20/kW for peak
power but charge their customer’s rates that are averaged over a month or over several time periods
in the day, can reduce power purchase or production costs by significantly more than revenue
losses when they encourage customers to reduce peak electricity use.
13
2-3 Smart Systems and Appliances
2-3-1 Smart Homes

Smart homes can employ the following to allow for a network of smart systems that works
hand in hand with the smart meters which can then allow for commands and information to flow
throughout the transmission and distribution systems in the smart grid.
Home Area Network (HAN) which is Located in the Customer domain for Smart Grid
applications, connecting various devices, such as home appliances, sensors, electric vehicle
chargers, and local generators. [25]
Energy Management Systems (EMS), energy information coming to and from your home
through your smart meter can be run through a home energy management System (EMS). You can
use any device to access your energy use in detail from the EMS and this tracking system of energy
will then allow you to save energy in the future by looking at how your appliances are using energy.
The EMS can also allow one to choose to use power when the prices are the lowest. It can
automatically turn appliances off and on depending on how one is to avoid peak demand rate hours
and this in turn may avoid blackouts and help balance loads in your area. [26]
2-3-2 Distribution and Communication Systems

Distribution and Communication Systems Power distribution systems include a variety of
equipment such as switches, recloses, capacitor banks, voltage regulators, and transformers that
are used to control power flows, voltage, power quality and other electric distribution
characteristics.
14
Figure 2- Smart communications
Applications:
Distributed energy generation (i.e., wind, solar, thermal), distributed storage, substation, and
local distribution network monitoring and control. This system allows for energy distribution
control of the entire grid by: [24]
Taking information from smart meters and networks to respond to demands by consumers and
supply them with energy.
Energy supplied may be independent of the home from power plants of different sorts. The
energy may also be supplied from at-home renewable energy systems or other energy supplying
devices at home such as the PV discussed in section 4. Which energy will be supplied will depend
on the availability and efficiency. Devices such as control inverters and switches are employed to
use and switch to different energy sources.
What type of energy will be supplied?
This depends on the availability and efficiency. Substation management and control contains
switching, protection and control equipment and storage with distribution. These substations allow
for switching between different energy sources. [24]
15
Other applications include local network monitoring and control used to measure, record, and
control with the intent of protecting and optimizing the operation of electricity transmission and
distribution [24]
Case Study 1: Netherlands
“PowerMatching City” demonstration project in Hoogkerk, the Netherlands. This

very high-technology project involves 25 residences and a range of advanced
technologies, some of which have household-sized combined heat and power units
that use natural gas to generate electricity and heat. These units have a peak
electrical output of 1 kilowatt (kW). Each household has a 1.6 kilowatt-peak
(kWp) PV system. Air-to-water heat pumps are used for space heating. Smart
washing machines and dishwashers, which operate when electricity costs are low,
help shift electricity demand to off-peak periods. There are also pure electric and
hybrid-EVs. All components are integrated via a common communications
system. [25]
2-4 Renewable Energy Resources

Renewable Energy Resources are sustainable and growing source for electrical power but
variable by nature.
16
2-4-1 Solar Energy - Photovoltaics (PV)

Photovoltaic solar energy is a clean, renewable source of energy that uses solar radiation to
produce electricity. It is based on the so-called photoelectric effect, by which certain materials are
able to absorb photons (light particles) and release electrons, generating an electric current.
Limited by geographical means: it is most efficient in countries having long hours of sunshine
and clear skies. Countries like California are well known to employ this kind of technology to
obtain energy. [13]
Figure 3- PV Cells
2-4-2 Wind Energy

Wind energy (or wind power) refers to the process of creating electricity using the wind, or air
flows that occur naturally in the earth's atmosphere. Modern wind turbines are used to capture
kinetic energy from the wind and generate electricity. [14]
Figure 4-Wind Turbine
17
Case Study 2: United States [28]
Figure 5- Trends in Renewable energy with the use of wind, solar, hydro, and geothermal energy.
2-5 Other Technologies
2-5-1 Plug in Electric/Hybrid Vehicles

A plug-in electric vehicle (PEV) is any vehicle that can be recharged from an external source of
electricity, such as wall sockets, and the electricity stored in the rechargeable battery packs drives
or contributes to drive the wheels.
Smart Grid technologies will interact with the PEV to charge it at the most optimal time. But
sophisticated software will assure that your PEV is still fully charged and ready to go when you
need it. And you'll still be able to demand an immediate recharge when you need it. [15]
Benefits: Reduce Fuel

costs and reduce our
dependence on oil
Figure 6-Plug in Electric Vehicle
18
2-5-2 Energy Storage Devices

Classified into three categories:
Electrochemical Systems - batteries and flow batteries

Batteries are one of the most used energy storage devices. Examples include Ni-Cd, NiMh,
Lithium ion, and lead acid batteries each having their own advantages and disadvantages.
Super capacitors fall into this category. The main difference between capacitor and super
capacitor is the use of a porous membrane which provides ion transfer between two electrodes,
thus electrical energy can be stored directly. Disadvantages include its lower energy density when
compared to lead acid batteries and also its cost which is five times more than the lead acid
batteries. Studies have shown however that super capacitors are a good choice to make natural
fluctuations of intermittent renewable sources less severe. [22]
Mechanical Energy Storage Systems

A good example is flywheel energy storage devices. These devices have a long life cycle and
can be used to make fluctuations in solar and wind systems less severe. However, these devices do
end up having high friction losses. [22]
Thermal Energy Storage

Sensible heat energy is stored by changing the temperature of the storage materials. Sensible
storage can be stored in solid, liquid, as well as liquid with solid filler (water with pebbles) .Water
is one of the commonly used materials for heat storage in residential application. Molten salts for
example are the very commonly used storage material in concentrated solar power (CSP)
applications due to the thermal properties
Latent thermal energy is stored by changing the phase of the storage materials. The latent storage
applications usually exploit the phase change between solid and liquid phases to store/release
thermal energy. Phase change materials (PCMs) in this category can be used for space heating and
cooling in buildings, solar applications, off-peak energy storage, and heat exchanger
improvements. The drawback is its high cost however.
Thermochemical energy storage works in a way where heat is stored in chemical bonds of special
materials and the charging/discharging process is an endothermic or an exo-thermic reaction. [23]
19
Case Study 3: Japan showing importance of Energy Storage Devices in SG’S
System Studied: Power system consisting of a Hydro, Thermal, and Nuclear generator
scaled down to 100MW. And a renewable energy park consists of wind and/or
photovoltaic system connected to power system. [22]
20
Analysis of the current state of smart grid
2-6 Benefits of Smart Grids
2-6-1 Reduced Cost of Energy Production

SG’s reduce electricity usage in peak hours when the pricing is almost 10 to 1 during this
period.[16] SG’s also reduce the fuel costs for power generation by employing Smart Grid
Technologies. [17]
Case Study 4: Jamaica
Jamaica currently obtains over 90% of its electricity from diesel generators, leading to high
electricity prices and a drain on the country’s scarce capital. In addition, almost one-fourth
of electricity produced in Jamaica is “lost”—10% in the transmission and distribution system
and much of the remainder to theft.
Jamaica’s smart investment to curb losses: smart grid technologies is helping to achieve
those goals. Jamaica has invested USD 50 million annually in T&D upgrades, is spending
USD 10 million on AMI and has installed a new Supervisory Control and Data Acquisition
system that will enhance renewables integration, support DSM and help pinpoint losses.
Source: Stennet, 2010.
2-6-2 Reduced Emissions
With the development of new energy saving devices that SG’s employ, and also the employment
of Renewable energy sources, the SG is able to reduce particulates that prove rather disastrous to
human health. [16]
21
2-6-3 Energy Conservation

Smart Grids could drastically reduce carbon emissions and carbon footprint.
With energy using equipment smart technology employs, one can conserve energy by turning
lights and televisions off more frequently, increasing thermostat setting in the summer and
decreasing setting in the winter and other similar actions.
We have also seen before how smart grid employs technology to reduce electricity use in peak
periods when electricity prices are very high.
Barriers in the employment of Smart Grids and Recommendations to overcome issues
2-7 Challenges in employing Smart Grids
2-7-1 Security [18]

Smart grids allow for bi-directional information flow between the consumer of electricity and
the utility provider. This two-way interaction allows electricity to be generated in real-time based
on consumers’ demands and power requests. As a result, consumer privacy becomes an important
concern.
Smart meters and distributed energy systems can expose information about the consumers and
their in-house activities.
Other Smart grid technologies such as the electrical vehicle recharging can reveal personal
information.
Electric utilities and providers may access information on the activities of their consumers in
their own houses by looking at the devices they use and the period of time they are using them for.
The most serious threats related to the privacy of smart grid consumers include: cyber-attack and
intrusion, identity theft, tracking and observing the behavioral patterns of the consumers and the
appliances being used, and real time spying and surveillance.
22
Key questions regarding setting the policies on user data privacy are
→ Who owns the data of the customer?
→ how is the access to and use of customer data regulated?
→ who guarantees privacy and security of customer data?
Privacy of the user can be affected by two main ways:
User recharges electricity balance via personal interaction (private mode):
Privacy protection measures have to be in place in order to not reveal any customer’s data. This
data is stored in the utility company and gets updated whenever a customer recharges his/her
“smart grid card” similar to a debit or credit card. Once a rechargement happens, this data will
need to pass through an authentication process and hence the customer’s identity may be revealed.
User recharges electricity balance via the Internet (public mode):
Cybersecurity privacy measures also have to be considered when payments are made online.
Web attacks could disclose “not to be exposed” data from a back end database in a web interface.
This would end up risking the privacy of the user.
On the other hand, the user can also choose who they want their information to be exposed to.
For example, a user can be a subscriber to a company hence receiving news, updates, and packages
to the user’s email address.
23
2-7-2 Cost
Cost is substantial: Costs of only an AMI/smart meter system ranged from $81 to $532 per meter
with an average of $221. A 2012 Electric Power Research Institute (EPRI) report estimates per
meter costs of $1,800 to $2,400 for full smart grid investments.
This means undertaking only an AMI/smart meter system at the average reported cost means that
a utility with 100,000 meters can expect to spend $22.1 million (US). [19]
However, as seen below, the COST BENEFIT ANALYSIS was done [16]:
TABLE 1: COST BENEFIT ANALYSIS OF SMART GRIDS
Meta-analysis of 30 business cases for smart

meter projects in 12 countries representing four
Study 1 continents found: net present value of project
benefits exceeded net present value of costs by
almost two to one
Smart grid investments could save the region

USD 300 million to USD 1 billion annually
Study 2 - Middle East and North Africa
while helping realise the region’s large
potential for solar power
Potential investments in sustainable

technologies, including smart grid and
Study 3 - US
renewables, have a net present value of USD
20 billion to USD 25 billion based solely on
benefits to utilities
Hence we conclude the benefits outweigh the costs by a lot. This all comes down to proper
execution of smart grids employing and testing all systems.
24
2-8 Assessment of smart grid initiatives in developed and developing countries
2-8-1 United States

We find that the US has a high dependance on fossil fuels to keep up with its energy
consumption. This dependance on fossil fuels along with certain blackout events pushed the US
to be one of the main countries to invest in smart grids. Below is a table showing the initiatives
and the present status of smart grids in the US. [26]
TABLE 2 – SMART GRIDS UNITED STATES
2005
Provisions for tax incentive and subsidies for renewable energy integration
and energy efficiency technologies.
2007
National Institute of Standards and Technology (NIST) was assigned the
“primary responsibility to coordinate development of a framework that
includes protocols and model standards for information management to
achieve interoperability of smart grid devices and systems”
2009 - 2013
President Obama released an act in order to invest in long-term growth of the
U.S economy. This law accelerated the development of Smart Grid
technologies in order to modernize the U.S. electric system. $4.5 billion for
this cause.
Figure 7- Distribution of
Smart Grid projects in the
U.S.
2018 - 2020
Actions related to grid modernization, integrated resource planning, the
application of distributed energy resources (DERs) as non-wires alternatives,
utility business models, rate reforms, and the application of advances
metering infrastructure, energy storage systems, and microgrids. The EERE in
USA have invested a net worth of over $250 billion dollars to reach these
goals. [27]
25
2-8-2 Developing Countries - India and Brazil
Developing countries like India and Brazil face many obstacles in their progression of Smart
Grids. These challenges include extreme poverty, capital investment, power theft and losses, and
political motivations.
These countries are relying on innovations and research from the developed countries to catch
up to them once enough investments are made toward smart grid innovations. Nevertheless, the
tables below show examples of the two countries’ trajectories concerning smart grids: [26]
TABLE 3: INDIA SMART GRID
2008 This initiative ensures that some of the key elements of the Smart Grid
infrastructure will soon be in place in most electricity distribution
companies
2010 Road map for the implementation of Smart Grids. Five working groups
were formed within this initiative in order to take over the main Indian pilot
projects on new technologies, loss reduction and theft control, power
access, reliability and quality of power in rural areas, DER and physical
cyber security, standards and spectrum
TABLE 4: BRAZIL SMART GRID
2008 Looking for ways to enable deployment of smart grids

2010 Conducted the first strategic project called “Brazilian program for Smart
Grid”
2013 - 2016 $920 million invested Smart Grid pilot projects that included smart grid
technology such as use of smart meters and plug in electric vehicles.
26
Chapter three: Conclusion
Chapter Three
Conclusion
3 - Recommendations & Conclusion

3-1 Recommendations:
3-1-1 Enhancing and Guarantying Security
Many ways are being developed in order to protect the privacy of smart grid users. Below are
two systems that employ mechanisms to protect and ensure privacy.
SEG architecture [18 pp. 11]: User in control of their privacy.
Customer privacy preferences specification and enforcement: user decides what information
should be revealed and how the user’s information is dealt with.
Privacy policies enforcement: privacy policies against agents trying to access energy data.
Secure storage and data masking: ways to keep data safely stored with only trusted and
legitimate members allowed for access.
Pseudonymity: enables the customer to use smart grid resources or related services without
revealing their respective identities
Privacy feedback: communication to and from users on how user;s energy information is
handled.
28
ElecPrivacy System [18]

Detects privacy threats by using the four subsystem mechanisms shown below and then
covers/hides the usage information in the house or so.
Metering Mechanism: gets Event detection: analyzes

electricity measurements metering data in order to
from smart meters and detect privacy threats.
smart appliances
Privacy protection algorithm:

Power routing: mixes a configures power routing to
private energy resource mask a detected consumption
with utility energy to meet event.
appliance demands.
3-1-2 Overcoming High Cost

We can reduce some costs in the long term by going green and employing renewable energy
resources which will lower the electricity usage bill and decrease dependence on electricity
providers. However, to employ renewable resources, one has to have the proper geographical
constraints as mentioned above.
29
3-1-3 Employing Microgrids and Adopting New Technology

The most important question is how a country will move from the current grid to a smart one.
That is, what is it going to take to convert a whole country’s way of using electricity? To employ
renewable energy sources? To invest in smart grid technology?
It will take a lot of time and effort. But to sooth into the process a few tricks/advices should be
used:
Microgrids
A Micro grid is a smaller version of the larger grid, it involves all the components of a larger
grid but in a smaller size. It can operate independently on the scale of a small town,
neighborhood, military base, or university or commercial campus. Therefore areas can employ
Micro grids before a smart grid is employed on a national scale. And this will save a substantial
initial cost and make the process stepwise rather than a onetime change. [20]
Adopting new Technology

Keeping up with the new technology that is being developed and that will be developed is an
important aspect of the smart grid. With the new technology that a smart grid can employ, the
whole process can become faster and more efficient. What sort of technology that will be
developed in the next 20 years or so is not known but what we can do for now is use what we
have and always be up to date. [21]
30
3-2 Conclusion
Smart Grids are imperative to maintain energy efficiency and conservation and to protect the
environment. The increase in dependance of fossil fuels and energy consumption is proving
disastrous for upcoming generations by leaning towards inefficient methodologies of energy.
This has contributed to emissions of dangerous gases into the atmosphere and occasional
blackouts and the inability to meet energy demands of consumers due to the imbalance of energy
use.
Countries are continuing to open ways to combat these energy challenges by employing smart
grids. As we have seen, smart grids employ many technologies that will be able to power areas
using advanced and intelligent capabilities. But we have also seen how smart grids opens up
many new challenges and risks such as lack of security and substantial initial costs. Developed
countries like the United States are investing billions on Smart grids and making their way
towards a more efficient lifestyle. However, developing countries have yet to catch up. So, more
research is needed to implement big projects which will benefit the energy sector in a massive
way.
31
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Smart Grids; The Science and Technology of Energy (Term Report)

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Figure 1- Two-way communication of a smart grid ..................................................................... 13

TABLE 1: COST BENEFIT ANALYSIS OF SMART GRIDS .............................................................. 24

1-1 Smart Grid

Existing Grid(Centralized) Smart Grid(Decentralized)

One-way communication two-way communication

Centralized generation Distributed generation

Few sensors Sensors throughout

Manual monitoring Self-monitoring

Manual restoration Self-healing

Failures and blackouts Adaptive and islanding

Few customer choices Many customer choices

1.2 Literature Review

The management of provider-consumer relationship is substantial for the SG technology, so care

2-Smart Grid Technology

2-2 Smart Meters

2-2-1 Advanced Metering Infrastructure (AMI)

Figure 1- Two-way communication of a smart grid

2-3 Smart Systems and Appliances

2-3-1 Smart Homes

2-3-2 Distribution and Communication Systems

Figure 2- Smart communications

What type of energy will be supplied?

Case Study 1: Netherlands

“PowerMatching City” demonstration project in Hoogkerk, the Netherlands. This

2-4 Renewable Energy Resources

2-4-1 Solar Energy - Photovoltaics (PV)

2-4-2 Wind Energy

Figure 4-Wind Turbine

Case Study 2: United States [28]

2-5 Other Technologies

2-5-1 Plug in Electric/Hybrid Vehicles

Benefits: Reduce Fuel

Figure 6-Plug in Electric Vehicle

2-5-2 Energy Storage Devices

Electrochemical Systems - batteries and flow batteries

Mechanical Energy Storage Systems

Thermal Energy Storage

Case Study 3: Japan showing importance of Energy Storage Devices in SG’S

Analysis of the current state of smart grid

2-6 Benefits of Smart Grids

2-6-1 Reduced Cost of Energy Production

Case Study 4: Jamaica

2-6-2 Reduced Emissions

2-6-3 Energy Conservation

Barriers in the employment of Smart Grids and Recommendations to overcome issues

2-7 Challenges in employing Smart Grids

2-7-1 Security [18]

→ Who owns the data of the customer?

→ how is the access to and use of customer data regulated?

→ who guarantees privacy and security of customer data?

Privacy of the user can be affected by two main ways:

User recharges electricity balance via personal interaction (private mode):

User recharges electricity balance via the Internet (public mode):

TABLE 1: COST BENEFIT ANALYSIS OF SMART GRIDS

Meta-analysis of 30 business cases for smart

Smart grid investments could save the region

Potential investments in sustainable

2-8 Assessment of smart grid initiatives in developed and developing countries

2-8-1 United States