SMART GRID

ACKNOWLEDGEMENT

I am thankful to Almighty God for the successful completion of my seminar “

SMART GRID “ done at College of Applied Science ,Adoor.

I express my sincere thanks to Smt . LATHA ,our beloved principal for providing us
the necessary facilities for doing this seminar .

I extent my sincere thanks to Mr . VINOD V RAJENDRAN (head of the Department)

for making the seminar work and submission coordinated .

I extend my sincere thanks to Mrs. SOUMYA ZENATH , Seminar Coordinator for

her proper guidance, timely suggestions and support throughout my seminar work . I
extent my sincere thanks to all other teachers for their help and support .

I extent my sincere thanks to my parents for their words of kindness, encouragement

and support . Last but not the least I am thankful to all my friends and colleges for
their valuable suggestions and support.

AMRITHA SUBHASH

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ABSTRACT

Smart Grid is a concept for transforming the electric power grid by using advanced automatic
control and communications techniques and other forms of information technology. It
integrates innovative tools and technologies from generation, transmission and distribution all
the way to consumer appliances and equipment. This concept integrates energy infrastructure,
processes, devices, information and markets into a coordinated and collaborative process that
allows energy to be generated, distributed and consumed more effectively and efficiently.
This paper reviews some researches and studies on Smart Grids (SGs) technology.

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INTRODUCTION

A smart grid is an electrical grid which includes a variety of operation and energy measures
including smart meters, smart appliances, renewable energy resources, and energy efficient
resources . Electronic power conditioning and control of the production and distribution of
electricity are important aspects of the smart grid. The smart grid is an upgrade of the
common electricity grids that operate mostly to provide one-way power from several major
power plants to a large number of consumers. This upgrade is expressed in the ability to
operate in conditions of uncertainty in order to route the power supply in an optimal way that
responds to a wide variety of situations, to encourage users in off-peak hours and charge
premium rates from consumers who use energy during peak hours. The key to this capability
is fast, accurate and two-way transmission of information between all parts of the grid.
Situations that require fast response can occur at all parts of the grid – at the chain of
production, transmission and 2 consumption. The source of the event could be in the
environment (sudden cloudiness that decreases solar power, or a very hot day that increases
the demand for air conditioning), in parts of the grid itself (sudden failures, the need for
proactive maintenance) or in the demand (work hours compared to hours of rest). Several
countries have devoted significant efforts to the issue of smart grid and it is possible to learn
from their experience.

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CONVENTIONAL GRID SYSTEM

An electrical grid, or electric grid, is an interconnected network for delivering electricity from

producers to consumers. It consists of
 Generating stations that produce electrical power
 High voltage transmission lines that carry power from distant sources to demand
centres
 Distribution lines that connect individual customers.
Power stations may be located near a fuel source, at a dam site (to take advantage
of renewable energy sources), and are often located away from heavily populated areas. The
electric power which is generated is stepped up to a higher voltage at which it connects to the
electric power transmission net.
The bulk power transmission network will move the power long distances, sometimes across
international boundaries, until it reaches its wholesale customer (usually the company that
owns the local electric power distribution network).
On arrival at a substation, the power will be stepped down from a transmission level voltage
to a distribution level voltage. As it exits the substation, it enters the distribution wiring.
Finally, upon arrival at the service location, the power is stepped down again from the
distribution voltage to the required service voltage(s).
Electrical grids vary in size from covering a single building through national grids which
cover whole countries, to translational grids which can cross continents.
Although electrical grids are wide spread, 1.4 billion people are not connected to an
electricity grid.
Electrical grids can be prone to malicious intrusion or attack; thus, there is a need for electric
grid security. Also as electric grids modernize and introduce computers, cyber threats also
start to become a security risk.

LIMITATIONS OF CONVENTIONAL GRID SYSTEM

 Low efficiency
 Large amount of energy is wasted in the form of heat
 Equipment needs manual checking
 Low reliability

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NEED FOR SMART GRID

A Smart Grid is a digital electrical grid that facilitates the gathering and distribution of
information with regard to the usage of power by suppliers and consumers. This will lead to
electricity services becoming more reliable, efficient, cost-effective, and environmentally
conscious. Understanding the need for smart grid requires acknowledging a few facts about
our infrastructure. The power grid is the backbone of the modern civilization, a complex
society with often conflicting energy needs-more electricity but fewer fossil fuels, increased
reliability yet lower energy costs, more secure distribution with less maintenance, effective
new construction and efficient disaster reconstruction. But while demand for electricity has
risen drastically, its transmission is outdated and stressed. The bottom line is that we are
exacting more from a grid that is simply not up to the task.

 Help businesses reduce their carbon footprint

 New opportunities for tech companies
 Reduce cost of power cuts
 Meet increasing demand for power supply
 Provide a user-centric approach and allow new services to enter into the market;
 Establish innovation as an economical driver for the electricity networks renewal;
 Maintain security of supply, ensure integration and interoperability;
 Provide accessibility to a liberalized market and foster competition;
 Enable distributed generation and utilization of renewable energy sources;
 Ensure best use of central generation;
 Consider appropriately the impact of environmental limitations;
 Enable demand side participation (DSR, DSM);
 Inform the political and regulatory aspects;
 Consider the societal aspects.


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HISTORY OF SMART GRID

Smart grid technologies have emerged from earlier attempts at using electronic control,
metering, and monitoring. In the 1981s, Automatic meter reading was used for monitoring
loads from large customers, and evolved into the Advanced Metering Infrastructure of the
1991s, whose meters could store how electricity was used at different times of the day. Smart
meters add continuous communications so that monitoring can be done in real time, and can
be used as a gateway to demand response-aware devices and “smart sockets” in the home.
Early forms of such Demand side management technologies were dynamic demand aware
devices that passively sensed the load on the grid by monitoring changes in the power supply
frequency. Devices such as industrial and domestic air conditioners, refrigerators and heaters
adjusted their duty cycle to avoid activation during times the grid was suffering a peak
condition.
Commercialization of electric power began early in the 21th century. With the light bulb
revolution and the promise of the electric motor, demand for electric power exploded,
sparking the rapid development of an effective distribution system. At first, small utility
companies provided power to local industrial plants and private communities. Some larger
businesses even generated their own power. Seeking greater efficiency and distribution,
utility companies pooled their resources, sharing transmission lines and quickly forming
electrical networks called grids. George Westinghouse boosted the industry with his
hydroelectric power plant in Niagara Falls. His was the first to provide power over long
distances, extending the range of power plant positioning. He also proved electricity to be the
most effective form of power transmission. As the utility business expanded, local grids grew
increasingly interconnected, eventually forming the three national grids that provide power to
nearly every denizen of the continental US. The Eastern Interconnect, the Western
Interconnect, and the Texas Interconnect are linked themselves and form what we refer to as
the national power grid. Technological improvements of the power system largely raised in
the 51s and 61s, post World War II. Nuclear power, computer controls, and other
developments helped fine tune the grid’s effectiveness and operability. Although today’s
technology has flown light-years into the future, the national power grid has not kept up pace
with modernization. The grid has evolved little over the past fifty years.
The government is keen on overhauling the current electrical system to 21st century
standards. With today’s technology, the power grid can become a smart grid, capable of
recording, analysing and reacting to transmission data, allowing for more efficient
management of resources, and more cost-effective appliances for consumers. This project
requires major equipment upgrades, rewiring, and implementation of new technology. The
process will take time, but improvements have already begun to surface. Miami will be the
first major city with a smart grid system. We are witnessing a new stage of technological
evolution, taking us into a brighter, cleaner future.

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SMART GRID

According to the definition of NIST (National Institute of Standards and

Technology) ,SMART GRID is a modernised grid that enables bidirectional flow of energy
and use two way communication and control capabilities that will lead to an array of new
functionalities and applications .Smart Grid uses information technology to deliver electricity
efficiently, reliably and securely and hence it is also known as
ELECTRONET/ELECRTICITY WITH BRAIN/ENERGY INTERNET .
A SMART GRID is an electrical grid which includes a variety of operation and energy
measures including smart meters, smart appliances, renewable energy resources, and energy
efficient resources . Electronic power conditioning and control of the production and
distribution of electricity are important aspects of the smart grid. A SMART GRID delivers
electricity from supplier to consumers using two- way digital technology to control
appliances at consumers’ homes to save energy, reduce cost and increase reliability and
transparency. It overlays the electricity distribution grid with an information and net metering
system. Power travels from the power plant to our house through an amazing system called
the power distribution grid. Such a modernized electricity networks is being promoted by
many governments as a way of addressing energy independences, global warming and
emergency resilience issues. Smart meters may be part of smart grid, but alone do not
constitute a smart grid.
A smart grid includes an intelligent monitoring system that keeps track of all electricity
flowing in the system. It also incorporates the use of superconductive transmission lines for
less power loss, as well as the capability of the integrating renewable electricity such as solar
and wind. When power is least expensive the user can allow the smart grid to turn on selected
home appliances such as washing machines or factory processes that can run at arbitrary
hours. At peak times it could turn off selected appliances to reduce demand. The smart grid is
able to respond appropriately to different types of incidents, such as weather issues or failing
equipment. The smart grid can identify a piece of failing equipment (or even find a tree
branch that’s fallen on an electrical line) and alert the Provider. Conversely, the smart grid
can extend the life of some equipment .
In some cases the smart grid can solve power outages and other service interruptions. When
the smart grid overlays the electrical grid, computerized devices monitor and adjust the
quality and flow of power between its sources and its destinations. These devices recognize
situations such as peak usage hours, when most people are in their homes. The devices can
also detect energy-wasting appliances.
In short, the smart grid is the development of a reliable network of transmission and
distribution lines that allow new technologies, equipment, and control systems to be easily
integrated into an energy grid.
Nowadays, the electric power system is facing a radical transformation in worldwide with the
decarbonise electricity supply to replace aging assets and control the natural resources with
new information and communication technologies (ICT). A smart grid technology is an
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essential to provide easy integration and reliable service to the consumers. A smart grid
system is a self-sufficient electricity network system based on digital automation
technology for monitoring, control, and analysis within the supply chain. This system can
find the solution to the problems very quickly in an existed system that can reduce the
workforce and it will targets sustainable, reliable, safe and quality electricity to all consumer

Overview of Smart Grid Technology

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COMPARISON BETWEEN EXISTING GRID AND SMARTGRID

 TRADITIONAL GRID

 SMART GRID

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FEATURES OF SMART GRID

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 Reliability

The smart grid makes use of technologies such as state estimation,[15] that improve fault
detection and allow self-healing of the network without the intervention of technicians. This
will ensure more reliable supply of electricity, and reduced vulnerability to natural disasters
or attack.

 Flexibility in network topology

Next-generation transmission and distribution infrastructure will be better able to handle

possible bidirectional energy flows, allowing for distributed generation such as from
photovoltaic panels on building roofs, but also the use of fuel cells, charging to/from the
batteries of electric cars, wind turbines, pumped hydroelectric power, and other sources
.Classic grids were designed for one-way flow of electricity, but if a local sub-network
generates more power than it is consuming, the reverse flow can raise safety and reliability
issues. A smart grid aims to manage these situations.

 Efficiency

Numerous contributions to overall improvement of the efficiency of energy infrastructure are

anticipated from the deployment of smart grid technology, in particular including demand-
side management, for example turning off air conditioners during short-term spikes in
electricity price, reducing the voltage when possible on distribution line through
Voltage/VAR Optimization (VVO), eliminating truck-rolls for meter reading, and reducing
truck-rolls by improved outage management using data from Advanced Metering
Infrastructure systems. The overall effect is less redundancy in transmission and distribution
lines, and greater utilization of generators, leading to lower power prices.

 Load adjustment/Load balancing

The total load connected to the power grid can vary significantly over time. Although the
total load is the sum of many individual choices of the clients, the overall load is not
necessarily stable or slow varying. For example, if a popular television program starts,
millions of televisions will start to draw current instantly . Load balancing strategies have
been designed to change consumers' consumption patterns to make demand more uniform,
developments in energy storage and individual renewable energy generation have provided
opportunities to devise balanced power grids without affecting consumers' behaviour.
Typically, storing energy during off-peak times eases high demand supply during peak hours.

 Peak curtailment/levelling and time of use pricing

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To reduce demand during the high cost peak usage periods, communications and metering
technologies inform smart devices in the home and business when energy demand is high and
track how much electricity is used and when it is used. It also gives utility companies the
ability to reduce consumption by communicating to devices directly in order to prevent
system overload .To motivate them to cut back use and perform what is called peak
curtailment or peak levelling , prices of electricity are increased during high demand periods,
and decreased during low demand periods.[8] It is thought that consumers and businesses will
tend to consume less during high demand periods if it is possible for consumers and
consumer devices to be aware of the high price premium for using electricity at peak periods.

 Sustainability

The improved flexibility of the smart grid permits greater penetration of highly variable
renewable energy sources such as solar power and wind power, even without the addition
energy storage. Current network infrastructure is not built to allow for many distributed feed-
in points, and typically even if some feed-in is allowed at the local (distribution) level, the
transmission-level infrastructure cannot accommodate it. Rapid fluctuations in distributed
generation, such as due to cloudy or gusty weather, present significant challenges to power
engineers who need to ensure stable power levels through varying the output of the more
controllable generators such as gas turbines and hydroelectric generators. Smart grid
technology is a necessary condition for very large amounts of renewable electricity on the
grid for this reason.

 Market-enabling

The smart grid allows for systematic communication between suppliers (their energy price)
and consumers (their willingness-to-pay), and permits both the suppliers and the consumers
to be more flexible and sophisticated in their operational strategies. Only the critical loads
will need to pay the peak energy prices, and consumers will be able to be more strategic in
when they use energy. Generators with greater flexibility will be able to sell energy
strategically for maximum profit, whereas inflexible generators such as base-load steam
turbines and wind turbines will receive a varying tariff based on the level of demand and the
status of the other generators currently operating. The overall effect is a signal that awards
energy efficiency, and energy consumption that is sensitive to the time-varying limitations of
the supply.

 Demand response support

Demand response  support allows generators and loads to interact in an automated fashion in
real time, coordinating demand to flatten spikes. Eliminating the fraction of demand that
occurs in these spikes eliminates the cost of adding reserve generators, cuts wear and tear and
extends the life of equipment, and allows users to cut their energy bills by telling low priority
devices to use energy only when it is cheapest
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 Platform for advanced services

As with other industries, use of robust two-way communications, advanced sensors, and
distributed computing technology will improve the efficiency, reliability and safety of power
delivery and use. It also opens up the potential for entirely new services or improvements on
existing ones, such as fire monitoring and alarms that can shut off power, make phone calls to
emergency services, etc.

SMART GIRD ARCHITECTURE

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The Smart Grid, as described by the Institute of Electrical and Electronics Engineers (IEEE),
“encompasses the integration of power, communications, and information technologies for an
improved electric power infrastructure that serves end-use applications and loads.”5 The
Smart Grid can improve resilience to outages and security threats, lower operating costs, and
allow the integration of cleaner energy sources. Smart Grid technologies offer the promise of
increased responsiveness by grid operators, reduced blackouts and line losses, and greater
insight for consumers about their own energy use and its costs. The Smart Grid can be
viewed as the infrastructure component of smart energy, which includes two other
components: smart power, the efficient and clean production of electricity using a variety of
resources including renewables and energy efficiency; and smart choices, programs that help
customers make use of current and emerging electro-technologies.
POWER GENERATION : Power plants convert fuel, such as coal, natural gas, water, wind,
solar, and uranium, into electricity. The conversion can be direct, such as through wind
rotating generators on towers, or it can use several stages, like heating water with coal to
create steam that spins turbines to produce electricity .
TRANSMISSION : Electric transmission systems carry large amounts of power at high
voltages from generators to substations. Transmission systems must be kept highly reliable to
prevent blackouts and ensure robust energy markets. Synchrophasor technology has emerged
as key enabler for improving transmission reliability and operations. Phasor measurement
units (PMUs), phasor data concentrators (PDCs), wide area communications networks, and
advanced transmission applications are building blocks of a smarter and more reliable
transmission system.
DISTRIBUTION : "Distribution intelligence" refers to the part of the Smart Grid that
applies to the utility distribution System, that is, the wires, switches, and transformers that
connect the utility substation to you, the customers. The power lines that run through people's
back yards are one part of the power distribution System. A key component of distribution
intelligence is outage detection and response. Today, many utilities rely on customer phone
calls to know which areas of their distribution System are being affected by a power outage.
Along with smart meters, distribution intelligence will help to quickly pinpoint the source of
a power outage so that repair crews can be immediately dispatched to the problem area. 

SMART GRID COMPONENTS

Smart Grid utilises intelligent electricity transmission and distribution networks that use a
two-way communication to increase the efficiency, reliability and safety of power delivery.
Various technologies are used to enable the smart grid operation. These key technologies can
be grouped into five key technology areas:
 Integrated communications
 Sensing and measurement
 Advanced components
 Advanced control methods
 Improved interfaces and decision support
Integrated Communication
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A reliable, high-speed integrated communication platform is considered to be a basic

component in the implementation of a smarter transmission system. It connects components
to an open architecture for real-time information, control and data exchange to optimise
reliability of system, utilisation of assets and security .Due to integrated communication,
information can be more rapidly transferred between transmission stations to system control
centre. It must be designed in such a way to be able to cope with today’s applications and
also to accommodate future ones .Integrated communication can be said to be the component
that "glues" all the other technologies together . Fiber optics ,wireless mesh networks and
supervisory control and data acquisition (SCADA) are all integrated communication
technologies.

Sensing and Measurements

Advanced sensing and measurement technologies will collect data and alter them to better
manage power systems. These technologies are used for the evaluation and monitoring of
equipment health, the prevention of energy theft and for control strategies support. They are
also used to eliminate billing estimations, assess grid stability and obstruction and support
frequent meter readings. They will also help consumers to enhance their electrical usage by
providing them with information concerning their daily demands.

Advanced Metering Infrastructure (AMI)

It is comprised of systems that measure, gather and evaluate the amount of energy used and
communicate with metering devices. These systems consist of hardware, software,
communications, Meter Data Management software, consumer energy displays and controls
and many others .Advanced metering infrastructure is a way to integrate consumers’ base on
open standards. It provides consumers make efficient use of their electricity and provides
utilities the ability to detect problems on their system to be able to operate properly and
efficiently .It enables consumer-friendly efficiency concepts.
Advanced Components
Advanced components play a key role in determining the electrical behavior of the grid.
These components can either be used for single application or connected to each other to
create complex systems. These components are based on fundamental research and
development gains in technologies like: high voltage direct current, alternating current
transmission system devices, high temperature superconducting cable, composite conductors,
"intelligent" appliances and power electronics. Innovations in technologies like
superconductivity, power electronics, storage, fault tolerance and method of diagnostics are
altering the primary abilities and characteristics of grids.
Advanced Control
In order to have a safe, reliable and environmentally friendly modern grid system,
development in advanced control method is a must. These technologies are devices and
algorithms that enable rapid diagnosis and analysis of the modern grid system. Whenever
necessary, it takes appropriate corrective measures to diminish power outages or even prevent
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outages from happening. There will be better control at the transmission, distribution and
consumer levels when using these methods.
Advanced control depends on the other four key technologies for it to perform efficiently.
Case in point, it will monitor essential components, provide timely responses and provide
diagnosis of any event occurred.
It requires integrated, high-speed communication infrastructure and appropriate standards to
be able to process large amount of date. Advanced control make use of technologies like:
distributed intelligent agents, analytical tools and operational applications.
Improved interfaces and decision support
Improved interfaces and decision support are important technologies that consist of devices
and trainings that will amplify human-decision making and transforming grid operators and
mangers into knowledgeable workers to operate the modern grid.
These technologies will reduce complexity by converting data from power systems into
information that can be easily understood by humans. After the convention, data can be in
terms of animation, virtual reality and other data-display techniques that will help operator to
quickly identify, analyse and act on emerging problems. Therefore, time to take decision
regarding certain issues is considerably reduced.
Four major components are needed for the implementation and operation of the smart grid.
They are:
 Smart meter
 Phasor measurement
 Information transfer
 Distributed generation

SMART METER

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A smart meter is an electronic device that records consumption of electric

energy and communicates the information to the electricity supplier for monitoring and
billing. Smart meters typically record energy hourly or more frequently, and report at least
daily . Smart meters enable two-way communication between the meter and the central
system. Such an advanced metering infrastructure (AMI) differs from automatic meter
reading (AMR) in that it enables two-way communication between the meter and the
supplier. Communications from the meter to the network may be wireless, or via fixed wired
connections such as power line carrier (PLC). Wireless communication options in common
use include cellular communications (which can be expensive), Wi-Fi (readily
available), wireless ad hoc network over Wi-Fi, wireless mesh network, low power long
range wireless (LODA), Zigbee (low power, low data rate wireless), and Wi-SUN (Smart
Utility Networks).
Compared to traditional meters, smart meters have the added functionality of utilizing real-
time sensors, power outage notification and power quality monitoring. Time of day charges
are documented in the data and relayed to electrical company to allow them to know how
much electricity was consumed any time during the day and can charge consumers
accordingly .Home Energy Management System is usually used alongside smart meters as
they provide the interface between consumer and energy provider. As mentioned before,
smart meters operate digitally and allow for automatic and complex transfers of data between
utilities and consumers. EMS also allows consumers to monitor real-time information and
pricing signals from utilities and can create settings to minimize power usage when prices are
highest, that is, during maximum demand. Some settings allow specific devices such as
"smart" appliances to shut down without human intervention when a large demand threatens
to cause an outage.EMS also allows consumers to monitor real-time information and pricing
signals from utilities and can create settings to minimize power usage when prices are
highest, that is, during maximum demand. Some settings allow specific devices such as
"smart" appliances to shut down without human intervention when a large demand threatens
to cause an outage.

PHASOR MEASUREMENT UNIT

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A phasor measurement unit (PMU) is a device used to estimate the magnitude and phase
angle of an electrical Phasor quantity like voltage or current in the electric grid using a
common time source for synchronization. Time synchronization is usually provided by GPS
and allows synchronized real-time measurements of multiple remote measurement points on
the grid. PMUs are capable of capturing samples from a waveform in quick succession and
reconstruct the Phasor quantity. The resulting measurement is known as a synchrophasor.
These devices can also be used to measure the frequency in the power grid. A typical
commercial PMU can report measurements with very high temporal resolution in the order of
30-60 measurements per second. This helps engineers in analysing dynamic events in the grid
which is not possible with traditional SCADA measurements that generate one measurement
every 2 or 4 seconds. Therefore, PMUs equip utilities with enhanced monitoring and control
capabilities and are considered to be one of the most important measuring devices in the
future of power systems . A PMU can be a dedicated device, or the PMU function can be
incorporated into a protective relay or other device .
INFORMATION TRANSFER
Information transfer technology is needed to extend the two-way communication feature into
home application. It is just the process of moving messages containing information from a
source to a sink. Protocols such as WIFI, ZigBee, Bluetooth and infrared are most popular. In
smart grid system, it is encouraged for all these technologies to be compatible with one
another.

DISTRIBUTED GENERATION
Distributed generation refers to the use of small-scale power generation technologies located
closer to the consumer, capable of reducing costs, increasing reliability, diminishing
emissions and expanding energy options. Generation will be closer to the load, which reduces
transmission line construction cost and transmission power losses, thus improving efficiency.
Distributed generation will help utilities to decrease the amount of electricity produced.
These renewable electric generations can provide the same surplus of electricity that Peaker
plants do. It, therefore, will reduce the cost for utilities to meet peak demand. Reliability will
also be improved as there is a wide variety of different generation sources connected to the
grid. This may even eliminate the use of Peaker plants- saving money and protecting the
environment . Distributed energy generation may be comprised of renewable energy
generation like: solar power generation, wind power generation, biomass energy generation .

BENEFITS OF THE SMART GRID TECHNOLOGY

Due to these principal characteristics, the benefits derived from the implementation of the
smart grid are quite vast. These include:
 Prevention or even elimination of power outages.
 Reduces the number of attack on the grid and dependability on imported fossil fuels.
 Reducing energy losses and therefore improving efficiency of generation.
 Improve power quality.
 Environmental friendly.
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 Generation of new jobs

 Opportunistic
These benefits can be categorized into major categories as mentioned below:
Improved reliability
A reliable grid is one that delivers electricity to consumers when they need it and it is of a
quality that meets the consumers’ requirements. A reduction in the frequency and duration of
blackouts or its complete elimination and a reduction in the number of disturbances due to
power quality can be accounted for an improvement in terms of reliability.
Smart grid makes use of technologies that improve fault detection and allow self-healing of
the network automatically. It also provides constant detection of disturbances at any portion
of the grid and will be capable to react in real-time to counteract the effect of these
disturbances. There will be an increase situational awareness of the distribution system.
Distribution management system will enable early detection of unhealthy equipment and
allow for its replacement prior to failure. Intelligent and synchronised control of distributed
generation and storage can cater for immediate back up when problems occur. Information
and communication integration will enable utilities to better integrate, understand and act on
the enormous amount of data provided by the smart grid to better optimise system reliability.

Utility benefits
 Reduction in operating cost due to lesser demand and outage response resources.
 Employee safety will be improved as they will not have to deal with dangerous
equipment that frequently.
 Due to a reduction in the interruption in electric sales, revenue will be increased and
this will also improve the relation between utilities and consumers as the latter will be
very satisfied with the uninterrupted flow of electricity.
 Reduction in capital cost as there will be fewer device failure in service.
 As electricity will be provided only when it is needed, this will considerably reduce
the down time for some generators. This will also help to reduce the wear and tear on
some generators and therefore increases the latter’s life-time, resulting in the saving
of capital for their replacement.

Consumer benefits
 Level of service is improved with a regular flow and good power quality as outages
will be reduced, therefore increasing consumers’ satisfaction.
 Sometimes following a blackout, the voltage on the lines reaching the consumers is
quite high and can cause damage to certain electrical appliances. But due to the
elimination of outages by the smart grid, this problem has been solved.
 Industrial consumers gain a lot from improved reliability. Small duration of outages
can cause irreparable damage to certain electronic base system resulting in lesser
productivity.
Societal benefits
 Economic development depends on a reliable, high quality source of electric power.
Smart grid created an environment attractive to new investment. Therefore, this can
improve conditions for economic development.
 Mitigation of blackouts.
 Reduction in cost will help to keep prices of goods and services low.
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Improved efficiency
Smart grid will use sensors and other technologies that will help to reduce the amount of
electricity consumed when not needed. For instance, adjusting fans to cool only occupied
areas as revealed by sensors. The information provided from smart meters and sensors can
also be used to motivate consumer to participate more actively in peak load reduction and
energy conservation.
Benefits of environmental improvements
Environment improvement can be defined as a reduction in the emissions of toxic and
greenhouse effect gases in the atmosphere . Smart grid will allow sharing of information
between consumers and utilities giving the consumers control to more effective
Management of their consumption. As consumers tend to reduce their consumption during
peak period as rates are higher at this time, utilities do not have to involve Peaker plants for
the generation to meet the required demand. Peaker plants tend to use more fuels and reject a
lot of carbon dioxide gases into the atmosphere. Elimination of the use of Peaker plants can
help to contribute towards a green world.
CHALLENGES AND RISKS
The Smart Grid is very complex and can change a lot of aspects in the day-to-day running of
individuals and utilities. Given the current initiatives and expectations, the adoption of the
Smart Grid is very likely to be a slow process. There are several concerns about its
implementation.
Health concerned
Smart metering will turn all appliances into something similar to the mobile phones. There is
a rise in public concern about the safety of exposure to radiofrequency radiation of wireless
technologies. Each appliances will be equipped with transmitting antennas will increase the
exposure to radiofrequency radiation which can cause health problems. These radiofrequency
radiations might have the potential to cause certain type of cancer
Environmental concerned
Radiofrequency radiation may also affect the environment, more specifically living creatures
sensitive to low-level, non-ionizing radiation. These animals use the Earth’s natural
electromagnetic background to guide them during migration, circadian rhythms, food-finding
and reproductive activities. Radiofrequency radiation disturbs the earth’s electromagnetic
background and cause problem to these creatures.
Regulations
Regulations of the power system must be changed to give incentives for utilities that are
willing to produce renewable and efficient energy. As utility reserve is proportional to the
amount of power it produces, they are reluctant to take the necessary risk to address the
demand in environmental problem that we are facing today. Smart grid component such as
time of day pricing to reduce consumption during peak load period will require a large
investment within uncertain rate of return causing an unnecessary risk for the utility.
Technological issues
Power flows of the new power system will have to be recalculated as new distributed
generators are connected to the grid to ensure their lines are within voltage stability and
thermal limits. Voltage generator must also be regulated. System fault levels will have to be
re-evaluated as well from protection and control purposes.

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Cybercrimes, Privacy and Security issues

IOACTIVE, a computer security service firm, reported that with $ 500 worth equipment and
a basic electrical knowledge, an attacker could seize control of the smart grid’s
communication system and manipulate then services. Risk rise along many fronts like:
Fraud – by corrupting data in order to avoid payment of electricity.
Privacy- by accessing customer accounts.
Disruption- by corrupting assets on the network in order to make part of the grid behaves
incorrectly.
The smart grid expands the amount of data available significantly. Data may consist of nature
and frequency of energy consumption and creation. This opens a great opportunity in term of
general invasion of privacy. Smart grid may also be viewed as carrying private information
electronically between utilities and end-users.
There is also the concern of the security of the infrastructure, primarily those that involves
communications technologies. Designed to allow real-time communication between utilities
and consumers, there is a risk that these capabilities be exploited for criminal intents.
Lack of standardization
Uncertainty about interoperability and technology standards present the greatest risk to
utilities, who do not want to purchase compared to that will not work with new innovations
down the road.
Large economic investment
Implementing the smart grid will require a considerable amount of investments.
Lack of information of consumers
Consumers are not well-informed about the objectives of implementing the Smart Grid
system. They are not aware of the advantages, costs and risks related to it. This lack of
awareness may make them think twice before they are willing to pay for secure and reliable
systems. Until, consumers do not get better insights of the benefits that this system represents
to them, utilities may not invest in comprehensive security causing an increased in the risks
of attack.

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SMART GRID VISION FOR INDIA

“Transform the Indian power sector into a secure, adaptive, sustainable and digitally enabled
ecosystem that provides reliable and quality energy for all with active participation of
stakeholders”

NATIONAL SMART GRID MISSION OBJECTIVES

 Bringing in development of Smart Grids:
 Enable access and availability of quality power to all
 Loss reduction
 AMI roll out, prosumer enablement, Demand Response (DR)/Demand Side
Management (DSM)
 Policies and tariffs – Dynamic tariff implementation, DR programs, tariff mechanisms
for solar PVs – Renewable integration – Green power and energy efficiency
 Electric vehicles (EV) and energy storage
 EV charging stations & energy storage systems
 Capacity building in utilities and regulators for Smart Grid
 Technical cooperation, research and collaboration with national and international
development partners like ISGAN,USAID, DFID, NEDO, KfW, World Bank, ADB
etc.
 Facilitate consumer awareness etc.

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NSGM ACHIEVEMENTS

SMART GRID PROJECTS

Smart Grid projects for Amravati & Congress Nagar (MSEDCL) and Chandigarh
(CED) for AMI / SCADA /DMS for ~ 3 lakh consumers sanctioned
➢ Estimated cost of Rs.258 Crores with 30% GBS (Rs 173 Crore)
➢ All SG Projects under tendering.
Chandigarh to be awarded by March 2018
• Successfully demonstrated AMI pilot in AVVNL (Ajmer) in collaboration with
USAID
• Facilitated Large Scale Roll out of Smart Meters on Business Case Model:
Deployment of 5 Million Smart Meters by EESL for UP & Haryana
• Accelerated implementation of Smart grid pilot projects across the country – SG
Pilots at CESC Mysore for ~ 22000 consumers (AMI, SCADA, OMS & DTMU), at
Panipat for AMI (NEDO Support) and Smart City Pilot at IIT Kanpur (AMI, SCADA,
Smart Home & Rooftop Solar Integration) completed – SG Pilots at Kala Amb (HP)
and Agartala (TSECL) in advanced stage of completion – A total of 12 SG Pilots
under implementation. ~60,000 smart meters already installed .

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NATIONAL SCENARIO OF SAMRT/PREPAID METER

DEPLOYMENT

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