Government Polytechnic Pune

(An Autonomous Institute Of Government)

A Seminar Report
On
Smart Grid
Submitted By
Srushti Mahadev Vibhute (2002066)
Under The Guidance Of
Prof. R.B.Chautthmal

_____________________________________________

Department Of Electrical Engineering

Government Polytechnic, Pune

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GOVERNMENT POLYTECHNIC PUNE
(An Autonomous Institute Of Government of Maharashtra)

CERTIFICATE
This is Certify that

Srushti Mahadev Vibhute (2002066)

Studying 3rd Year Of Diploma in Electrical Engineering

have successfully completed Seminar on topic of

Smart Grid

as per requirement in syllabus under guidance of Mr. R.B. Chautthmal

Mr. R.B. Chauthmal Mr. S.S. Bharatkar Mr. V. S. Bandal

(Project Guide) (HOD) (Principal)

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 Acknowledgement

I Wish to Express My Seminar Guide Mr. Ravi Chautthmal Sir for His
Planning, The Valuable Time that he spend with me discussing my seminar
ideas and helping me jump over any hard’s that would come over way.
We are also grateful to head of our Department, at Government Polytechnic
Pune Prof.Mr.S. Bharatkar for giving valuable attention and experience that has
helped us in achieving goal
We also wants to Thank Our Respected Principal Shri.Dr.V.S Bandal for
providing us other facilities.

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 Index

Sr.no Contents
1. Introduction of Smart Grid

2. Evolution of Electric Grid

Difference between conventional & Smart Grid

3.
4.
Concept of Self-Healing Grid

Historical background of smart grid

5.
6.
What does smart grid do ?
7.
Features of smart grid
8.
IT companies disrupting the energy market
9.
Components and Architecture of Smart Grid
Design
10.
Plug in Hybrid Electric Vehicles (PHEV)
11.
Smart Grid Technologies
12.
Oppositions and concerns

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 INTRODUCTION

Smart grid technology is an extended form of analog technology that has also been
introduced for controlling the use of appliances by employing two-way communication.
However, the prevalence of Internet access in most homes has made the smart grid more
practically reliable to implement. Smart grid devices transmit information in such a way that
enables ordinary users, operators and automated devices to quickly respond to changes in
smart grid condition systems.

A smart grid is an electrical grid which includes a variety of operation and energy measures
including:

 Advanced metering infrastructure (of which smart meters are a generic name for any
utility side device even if it is more capable e.g. a fiber optic router)
 Smart distribution boards and circuit breakers integrated with home control and
demand response (behind the meter from a utility perspective)
 Load control switches and smart appliances, often financed by efficiency gains on
municipal programs (e.g. PACE financing)
 Renewable energy resources, including the capacity to charge parked (electric
vehicle) batteries or larger arrays of batteries recycled from these, or other energy
storage.
 Energy efficient resources
 Sufficient utility grade fiber broadband to connect and monitor the above, with
wireless as a backup. Sufficient spare if "dark" capacity to ensure failover, often
leased for revenue.

A smart grid is an electricity network based on digital technology that is used to supply
electricity to consumers via two-way digital communication. This system allows for
monitoring, analysis, control and communication within the supply chain to help improve
efficiency, reduce energy consumption and cost, and maximize the transparency and
reliability of the energy supply chain. The smart grid was introduced with the aim of
overcoming the weaknesses of conventional electrical grids by using smart net meters.

Many government institutions around the world have been encouraging the use of smart
grids for their potential to control and deal with global warming, emergency resilience
and energy independence scenarios.

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 . Introduction to Smart Grid

Evolution of Electric Grid, Concept, Definitions and Need for Smart Grid, Smart
grid drivers, functions, opportunities, challenges and benefits, Difference between
conventional & Smart Grid, Concept of Resilient & Self-Healing Grid, Present development
& International policies in Smart Grid, Diverse Prospective from experts and global Smart
Grid initiatives

1.1 Evolution of Electric Grid

Figure 1.1 Existing Electric Grid

1.2 Disadvantages of Existing Electric Grid

1. Over strained and interregional bulk power transfer is limited

2. Cannot fully support the integration of renewable energy
3. Low reliability of power and outages
4. Fluctuating Power quality
5. Lack of Consumer Discipline
6. Increasing levels of Green house gases
7. Almost Zero Customer Participation
8. Low billing and collection
9. Less Efficiency

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1.3 Concept, Definitions and Need for Smart Grid

A Smart Grid is an electricity Network based on Digital Technology that is used to supply
electricity to consumers via Two-Way Digital Communication. This system allows for
monitoring, analysis, control and communication within the supply chain to help improve
efficiency, reduce the energy consumption and cost and maximise the transparency and
reliability of the energy supply chain.
The term ―Smart Grid‖ was coined by Andres E. Carvallo on April 24, 2007 at an IDC
energy conference in Chicago.

Definition:

Smart grid is integration of an electric power system, communication network,

advanced Sensing, metering, measurement infrastructure, complete decision support and
human interfaces software and hardware to monitor, control and manage the creation,
distribution, storage and consumption of energy.
The areas of application of smart grids include: smart meters integration, demand
management, smart integration of generated energy, administration of storage and renewable
resources, using systems that continuously provide and use data from an energy network.
A Smart Grid is an electricity network that can intelligently integrate the actions of all users
connected to it – generators, consumers and those that do both – in order to efficiently deliver
sustainable, economic and secure electricity supplies.

 System (Generation, Transmission, Distribution) with an advanced two- way

 communications system
 Enables real-time monitoring and control
 Provide greater visibility and transparency
 Consequently, enables cost reduction and efficiency improvement

Smart Grid is based on Digital Technology that is used to supply electricity to consumers via
Two-Way Digital Communication. This system allows for monitoring, analysis, control and
communication within the supply chain to help improve efficiency, reduce the energy
consumption and cost and maximise the transparency and reliability of the energy supply
chain.

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The flow of electricity from utility to consumer becomes a two-way conversation, saving
consumers money, energy, delivering more transparency in terms of end-user use, and
reducing carbon emissions.
A smart grid distribution system, whose objective is to develop a power grid more efficient
and reliable, improving safety and quality of supply in accordance with the requirements of
the digital age.

 Higher Penetration of renewable resources or distributed generation

 Extensive and effective communication overlay from generation to consumers
 Use of advanced sensors and high speed control
 Higher operating efficiency.
 Greater resiliency against attacks and natural disasters
 Automated metering and rapid power restoration
 Provided greater customer participation

Presently the Indian Electricity System faces a number of challenges such as:

 Shortage of power
 Power Theft
 Poor access to electricity in Rural areas
 Huge losses in the Grid
 Inefficient Power Consumption
 Poor reliability

To overcome these problems; smart grid is needed.

1.3 Smart grid drivers & functions

 Increasing demand: Information and communications technology, Measurement and

control Demand response, Advanced metering infrastructure (AMI)
 High Aggregate Technical &Non-Technical, Losses:18%-62%
 Ageing Assets: Transformers, Feeders etc.,
 Grid to carry more power: Need for, Reliability and greater Security
 Billing and collections: Profitability of distribution companies
 Energy mix: Need for Renewable Energy [Hydro Power, Solar Thermal Energy,
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 Wind, Biomass, Biogas to reduce carbon footprint
 Deliver sustainable energy: Voltage & VAR control, Resource planning, analysis,
and forecasting tools, Fault Detection, Identification, and Restoration (FDIR)
 Increased efficiency: Direct load control, Distributed energy resources, Distributed
energy resources integration, Energy storage, Advanced metering infrastructure
(AMI)
 Empower consumers: Consumer education and awareness, Residential consumer
energy management, Information and communications technology
 Improve reliability: System wide monitoring, Measurement and control, Distributed
energy resources, Distributed energy resources integration, Energy storage, Advanced
metering infrastructure (AMI)

1.4 Challenges of Smart Grid

 Policy and regulation

 Ageing and outdated Infrastructure

 Lack of integrated communication platform

 High Capital and operating costs

 Big Data Handling

 Compatibility of older equipment

 Lack of standards for interoperability

 Smart Grid Cybersecurity

 Lack of Smart consumers

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1.6 Benefits of Smart Grid

 Self-Healing :A smart grid automatically detects and responds to routineproblems and

quickly recovers if they occur, minimizing downtime and financial loss.

 Resists Attack: A smart grid has security built in from the ground up.

 Motivates and Includes the Consumer: A smart grid gives all consumers industrial,

commercial, and residential-visibility in to real-time pricing, and affords them the

opportunity to choose the volume of consumption and price that best suits their needs.

 Reduction in AT & C losses

 Reduction in CO2 Emission

 Enabling Energy Audit

 Reduction in Cost Billing

 Remote Load Control

 Shifting of Peak requirement to non-peak time [Peak Shaving]

 Integration of Renewable Energy

 Clean Energy Development.

 Provides Power Quality

 Optimizes Assets and Operates Efficiently

 Safety, Reliable and Efficient

 Improved National Security

 Improved Environmental Conditions

 Improved Economic Growth

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1.7 Difference between conventional & Smart Grid

Sr no. Smart Grid Conventional Grid

1. Self-Healing Manual Restoration

2. Digital Electromechanical

3. Pervasive Control Limited Control

4. Two-Way Communication One-Way Communication

Centralized Generation
5. Distributed Generation
Hierarchical
6. Network
Failures and Blackouts
7. Adaptive and Islanding
Few Sensors
8. Sensors Throughout
Manual Check/Test
9. Remote Check/Test
Blind
10. Self-Monitoring
Few Customer Choices
11. Many Customer Choices
Lack of real time monitoring
12. Extensive real time monitoring

Slow Reaction time

13. Extremely quick reaction time

Energy Storage
14.
No energy Storage
Total control by Utility
15. Increased customer
participation

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1.8 Concept of Resilient

The capability of a strained body to recover its size and shape after deformation caused

especially by compressive stress

An ability to recover from or adjust easily to misfortune or change

Resilience is the property of a material to absorb energy when it is deformed elastically and

then, upon unloading to have this energy recovered. In other words, it is the maximum energy

per volume that can be elastically stored. It is represented by the area under the curve in the

elastic region in the Stress‐Strain diagram.

A resilient electric grid begins with

 a system that is designed and built to withstand high winds, powerful storms,

 cybersecurity threats and

 other disruptions that could result in outages

1.91.9 Concept of Self-Healing Grid

 A self-healing grid is expected to respond to threats, material failures, and other

destabilizing influences by preventing or containing the spread of disturbances. This

requires the following capabilities:

 Timely recognition of impending problems

 Redeployment of resources to minimize adverse impacts

 A fast and coordinated response to evolving disturbances

 Minimization of loss of service under any circumstances

 Minimization of time to reconfigure and restore service

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A smart grid automatically detects and responds to routine problems and quickly recover if
they occur, minimizing downtime and financial loss.

Self-healing concept important to the Energy Infrastructure

A secure ―architected sensing, communications, automation (control), and energy overlaid

infrastructure as an integrated, reconfigurable, and electronically controlled system that will
offer unprecedented flexibility and functionality, and improve system availability, security,
quality, resilience and robustness

The Self-Healing Grid is a system comprised of sensors, automated controls, and advanced
software that utilizes real-time distribution data to detect and isolate faults and to reconfigure
the distribution network to minimize the customers impacted.

One of the main goals of a Self-Healing Grid is to improve system reliability.

This can be accomplished by reconfiguring the switches and reclosers installed on the
distribution feeder to quickly isolate the faulted section of the feeder and re-establish service
to as many customers as possible from alternate sources/feeders.

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 HISTORIACAL BACKGROUND OF SMART GRID

The first alternating current power grid system was installed in 1886 in Great
Barrington, Massachusetts.[8] At that time, the grid was a centralized unidirectional
system of electric power transmission, electricity distribution, and demand-driven control.

In the 20th century, local grids grew over time and were eventually interconnected for
economic and reliability reasons. By the 1960s, the electric grids of developed countries
had become very large, mature, and highly interconnected, with thousands of 'central'
generation power stations delivering power to major load centres via high capacity power
lines which were then branched and divided to provide power to smaller industrial and
domestic users over the entire supply area. The topology of the 1960s grid was a result of
the strong economies of scale: large coal-, gas- and oil-fired power stations in the 1 GW
(1000 MW) to 3 GW scale are still found to be cost-effective, due to efficiency-boosting
features that can be cost-effective only when the stations become very large.

Power stations were located strategically to be close to fossil fuel reserves (either the
mines or wells themselves or else close to rail, road, or port supply lines). Siting of
hydroelectric dams in mountain areas also strongly influenced the structure of the
emerging grid. Nuclear power plants were sited for the availability of cooling water.
Finally, fossil fuel-fired power stations were initially very polluting and were sited as far
as economically possible from population centres once electricity distribution networks
permitted it. By the late 1960s, the electricity grid reached the overwhelming majority of
the population of developed countries, with only outlying regional areas remaining 'off-
grid'.

Metering of electricity consumption was necessary on a per-user basis in order to

allow appropriate billing according to the (highly variable) level of consumption of
different users. Because of limited data collection and processing capability during the
period of growth of the grid, fixed-tariff arrangements were commonly put in place, as
well as dual-tariff arrangements where night-time power was charged at a lower rate than
daytime power. The motivation for dual-tariff arrangements was the lower night-time
demand. Dual tariffs made possible the use of low-cost night-time electrical power in
applications such as the maintaining of 'heat banks' which served to 'smooth out' the daily
demand, and reduce the number of turbines that needed to be turned off overnight,
thereby improving the utilisation and profitability of the generation and transmission
facilities. The metering capabilities of the 1960s grid meant technological limitations on
the degree to which price signals could be propagated through the system.

From the 1970s to the 1990s, growing demand led to increasing numbers of power
stations. In some areas, the supply of electricity, especially at peak times, could not keep
up with this demand, resulting in poor power quality including blackouts, power cuts, and
brownouts. Increasingly, electricity was depended on for industry, heating,

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communication, lighting, and entertainment, and consumers demanded ever-higher levels
of reliability.

Towards the end of the 20th century, electricity demand patterns were established:
domestic heating and air-conditioning led to daily peaks in demand that were met by an
array of 'peaking power generators' that would only be turned on for short periods each
day. The relatively low utilisation of these peaking generators (commonly, gas turbines
were used due to their relatively lower capital cost and faster start-up times), together
with the necessary redundancy in the electricity grid, resulting in high costs to the
electricity companies, which were passed on in the form of increased tariffs.

In the 21st century, some developing countries like China, India, and Brazil were seen
as pioneers of smart grid deployment.

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 WHAT DOES A SMART GRID DO?

The Smart Grid represents an unprecedented opportunity to move the energy industry
into a new era of reliability, availability, and efficiency that will contribute to our
economic and environmental health. During the transition period, it will be critical to
carry out testing, technology improvements, consumer education, development of
standards and regulations, and information sharing between projects to ensure that the
benefits we envision from the Smart Grid become a reality. The benefits associated with
the Smart Grid include:

 More efficient transmission of electricity

 Quicker restoration of electricity after power disturbances
 Reduced operations and management costs for utilities, and ultimately lower
power costs for consumers
 Reduced peak demand, which will also help lower electricity rates
 Increased integration of large-scale renewable energy systems
 Better integration of customer-owner power generation systems, including
renewable energy systems
 Improved security

Today, an electricity disruption such as a blackout can have a domino effect—a series
of failures that can affect banking, communications, traffic, and security. This is a
particular threat in the winter, when homeowners can be left without heat. A smarter grid
will add resiliency to our electric power System and make it better prepared to address
emergencies such as severe storms, earthquakes, large solar flares, and terrorist attacks.
Because of its two-way interactive capacity, the Smart Grid will allow for automatic
rerouting when equipment fails or outages occur. This will minimize outages and
minimize the effects when they do happen. When a power outage occurs, Smart Grid
technologies will detect and isolate the outages, containing them before they become
large-scale blackouts. The new technologies will also help ensure that electricity recovery
resumes quickly and strategically after an emergency—routing electricity to emergency
services first, for example. In addition, the Smart Grid will take greater advantage of
customer-owned power generators to produce power when it is not available from
utilities. By combining these "distributed generation" resources, a community could keep
its health center, police department, traffic lights, phone System, and grocery store
operating during emergencies. In addition, the Smart Grid is a way to address an aging
energy infrastructure that needs to be upgraded or replaced. It’s a way to address energy
efficiency, to bring increased awareness to consumers about the connection between
electricity use and the environment. And it’s a way to bring increased national security to
our energy System—drawing on greater amounts of home-grown electricity that is more
resistant to natural disasters and attack.

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Giving Consumers Control
The Smart Grid is not just about utilities and technologies; it is about giving you the
information and tools you need to make choices about your energy use. If you already
manage activities such as personal banking from your home computer, imagine
managing your electricity in a similar way. A smarter grid will enable an
unprecedented level of consumer participation. For example, you will no longer have
to wait for your monthly statement to know how much electricity you use. With a
smarter grid, you can have a clear and timely picture of it. "Smart meters," and other
mechanisms, will allow you to see how much electricity you use, when you use it, and
its cost. Combined with real-time pricing, this will allow you to save money by using
less power when electricity is most expensive. While the potential benefits of the
Smart Grid are usually discussed in terms of economics, national security, and
renewable energy goals, the Smart Grid has the potential to help you save money by
helping you to manage your electricity use and choose the best times to purchase
electricity. And you can save even more by generating your own power.

Building and Testing the Smart Grid

The Smart Grid will consist of millions of pieces and parts—controls, computers,
power lines, and new technologies and equipment. It will take some time for all the
technologies to be perfected, equipment installed, and systems tested before it comes
fully on line. And it won’t happen all at once—the Smart Grid is evolving, piece by
piece, over the next decade or so. Once mature, the Smart Grid will likely bring the
same kind of transformation that the Internet has already brought to the way we live,
work, play, and learn.

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 FEATURES OF SMART GRID

The smart grid represents the full suite of current and proposed responses to the
challenges of electricity supply. Because of the diverse range of factors, there are
numerous competing taxonomies and no agreement on a universal definition.
Nevertheless, one possible categorization is given here.

 Reliability

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

Although multiple routes are touted as a feature of the smart grid, the old grid also
featured multiple routes. Initial power lines in the grid were built using a radial
model, later connectivity was guaranteed via multiple routes, referred to as a
network structure. However, this created a new problem: if the current flow or
related effects across the network exceed the limits of any particular network
element, it could fail, and the current would be shunted to other network elements,
which eventually may fail also, causing a domino effect. See power outage. A
technique to prevent this is load shedding by rolling blackout or voltage reduction
(brownout).

 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 charging to/from the batteries
of electric cars, wind turbines, pumped hydroelectric power, the use of fuel cells,
and other sources.

Classic grids were designed for a 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 the 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

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 conditioners during short-term spikes in electricity price, reducing the voltage when
possible on distribution lines Archived 2013-06-27 at the Wayback Machine 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[citation needed].

 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.
Traditionally, to respond to a rapid increase in power consumption, faster than the
start-up time of a large generator, some spare generators are put on a dissipative
standby mode.[citation needed] A smart grid may warn all individual television sets,
or another larger customer, to reduce the load temporarily (to allow time to start up a
larger generator) or continuously (in the case of limited resources). Using
mathematical prediction algorithms it is possible to predict how many standby
generators need to be used, to reach a certain failure rate. In the traditional grid, the
failure rate can only be reduced at the cost of more standby generators. In a smart
grid, the load reduction by even a small portion of the clients may eliminate the
problem.

 Peak curtailment/leveling and time of use pricing

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 overloads. Examples would be a utility
reducing the usage of a group of electric vehicle charging stations or shifting
temperature set points of air conditioners in a city. To motivate them to cut back use
and perform what is called peak curtailment or peak leveling, prices of electricity are
increased during high demand periods and decreased during low demand periods. 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. This could mean
making trade-offs such as cycling on/off air conditioners or running dishwashers at 9
pm instead of 5 pm. When businesses and consumers see a direct economic benefit
of using energy at off-peak times, the theory is that they will include the energy cost

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 of operation into their consumer device and building construction decisions and
hence become more energy efficient.

 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 of 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. There is also support for vehicle-to-grid.

 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. At
the domestic level, appliances with a degree of energy storage or thermal mass (such

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 as refrigerators, heat banks, and heat pumps) will be well placed to 'play' the market
and seek to minimise energy cost by adapting demand to the lower-cost energy
support periods. This is an extension of the dual-tariff energy pricing mentioned
above.

 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.

Currently, power grid systems have varying degrees of communication within

control systems for their high-value assets, such as in generating plants, transmission
lines, substations, and major energy users. In general, information flows one way,
from the users and the loads they control back to the utilities. The utilities attempt to
meet the demand and succeed or fail to varying degrees (brownouts, rolling
blackout, uncontrolled blackout). The total amount of power demanded by the users
can have a very wide probability distribution which requires spare generating plants
in standby mode to respond to the rapidly changing power usage. This one-way flow
of information is expensive; the last 10% of generating capacity may be required as
little as 1% of the time, and brownouts and outages can be costly to consumers.

Demand response can be provided by commercial, residential loads, and

industrial loads. For example, Alcoa's Warrick Operation is participating in MISO as
a qualified Demand Response Resource, and the Trimet Aluminium uses its smelter
as a short-term mega-battery.

Latency of the data flow is a major concern, with some early smart meter
architectures allowing actually as long as 24 hours delay in receiving the data,
preventing any possible reaction by either supplying or demanding devices.

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 IT COMPANIES DISRUPTING THE ENERGY
MARKET

Smart grid provides IT-based solutions which the traditional power grid is lacking. These
new solutions pave the way of new entrants that were traditionally not related to the energy
grid.[40][41] Technology companies are disrupting the traditional energy market players in
several ways. They develop complex distribution systems to meet the more decentralized
power generation due to microgrids. Additionally is the increase in data collection bringing
many new possibilities for technology companies as deploying transmission grid sensors at a
user level and balancing system reserves.[42] The technology in microgrids makes energy
consumption cheaper for households than buying from utilities. Additionally, residents can
manage their energy consumption easier and more effectively with the connection to smart
meters.[43] However, the performances and reliability of microgrids strongly depend on the
continuous interaction between power generation, storage and load requirements.[44] A
hybrid offering combining renewable energy sources with storing energy sources as coal and
gas is showing the hybrid offering of a microgrid serving alone.

Consequences
As a consequence of the entrance of the technology companies in the energy market, utilities
and DSO's need to create new business models to keep current customers and to create new
customers.

Focus on a customer engagement strategy

DSO's can focus on creating good customer engagement strategies to create loyalty and trust
towards the customer. To retain and attract customers who decide to produce their own
energy through microgrids, DSO's can offer purchase agreements for the sale of surplus
energy that the consumer produces. Indifference from the IT companies, both DSO's and
utilities can use their market experience to give consumers energy-use advice and efficiency
upgrades to create excellent customer service.

Create alliances with new entered technology companies

Instead of trying to compete against IT companies in their expertise, both utilities and DSO's
can try to create alliances with IT companies to create good solutions together. The French
utility company Engie did this by buying the service provider Ecova and OpTerra Energy
Services.

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Renewable energy sources
The generation of renewable energy can often be connected at the distribution level, instead
of the transmission grids, which means that DSO's can manage the flows and distribute power
locally. This brings new opportunity for DSO's to expand their market by selling energy
directly to the consumer. Simultaneously, this is challenging the utilities producing fossil
fuels who already are trapped by high costs of aging assets. Stricter regulations for producing
traditional energy resources from the government increases the difficulty of stay in business
and increases the pressure on traditional energy companies to make the shift to renewable
energy sources. An example of a utility changing business model to produce more renewable
energy is the Norwegian-based company, Equinor, which was a state-owned oil company
which now are heavily investing in renewable energy.

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 Components and Architecture of Smart Grid Design

2.1.1 Smart Home

Smart home uses emerging smart grid technologies to save energy, seek out the lowest
rates, and contribute to the smooth and efficient functioning of our electric grid

The interactive relations hip between the grid operators, utilities, and consumers helps in
proper functioning of smart grid technologies

Computerized controls in smart homes helps to minimize energy use at times when the
power grid is under stress from high demand ,or even to shift some of their power use to
times when power is available at a lower cost, Le.,from on- peak hours to off-peak hours

Smart home depends on -

Smart meters a1nd home energy management systems

 Smart a ppl ian Ce$

 Home power generation

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Smart Meters

 Provide the Smart Grid interface between consumer and the

energyservice provider
 Operatedigitally
 Allow for automated and complex transfers of information between
consumer -end and the energy service provider
 Help to reduce the energy costs of the consumers
 Provides information about usage of electricity in different service areas
to the energy service providers
 Home energy management systems
 Allows consumers to track energy usage In detail to better save energy
 Allows consumers to monitor real-time Information and price signals
from the energy service provider
 Allows to create settings to automatically use power when prices are
lowest
 Avoids peak demand rates
 Helps to balance the energy load In different area
 Prevents blackouts
 In return, the service provider also may choose to provide financial
incentives

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 2.1.2 Renewable Energy
According to the International Energy Agency -

"Renewable energy Is derived from natural processes that are replenished constantly.

In Its various forms, It derives directly from the sun, or from heat generated deep within
the earth. Included in the definition is electricity and heat generated from solar, wind,
ocean, hydropower, biomass, geothermal resources, and biofuels and hydrogen derived
from renewable resources."

Reduced environmental pollution

Consumers capable of generating energy from renewable energy resources are less
dependent on the micro-grid or main grid

In addition to that,they can supply surplus amount of energy from the renewable resources
and can make profit out of it

2.1.3 Consumer Engagement

Consumers can -

Save energy w it h proper scheduling of sma rt home appliances

Pay less for consuming energy in off-peak hours

Energy service provider gives incentives based on t he energy consumption of the

consumer and they can save money

Consumers' involveme nt in following ways:

Time-of-Use pricing

Net metering

In Time-of-Use pricing

The consumers are encouraged to consume energy in off-peak hours when the energy load
is less

Throughout the day,the energy load on the grids are dynamic

In on-peak hours, if the requested amount of energy is higher,it leads to –

Less-efficient energy distribution

Home energy management system tries to schedule the smart appliances in off- peak hours

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 2.1.4 Operation Centres
Drawbacks of traditional operation centers

 Tries to make sure the amount of generated energy Is getting used

 The grid is unstable,if the grid voltage drops due to excess energy generation
 Limited control capabilities
 No means to detect oscillation which leads to blackout
 Limited information about the energy flow through the grid

Smart grid

 Provides information and control on the transmission system

 Makes the energy grid more reliable
 Minimize the possibility of widespread blackouts
 For monitoring and controlling the transmission System in smart grid,
phasor
 measurement unit (PMU) is used
 PMU samples voltage and current with a fixed sample rate at the installed
location
 It provides a snapshot of the active power system at that location
 By increasing the sampling rate, PMU provides the dynamic scenario of
the energy distribution system
 PMU helps to identify the possibility of blackout in advance
 Multiple PMUs form a phasor network
 Collected information by the phasor network is analyzed at centralized
system, i.e.,Supervisory Control And Data Acquisition (SCADA) system

Self-healing of grid

 Dampen unwanted power oscillations

 Avoid unwanted flows of current through the grid
 Reroute power flows in order to avoid overloading in a transmission line
 This is part of distribution intelligence

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2.1.5 Plug in Hybrid Electric Vehicles (PHEV)

Plug-In Hybrid Electric vehicles (PHEVs) are being introduced in the market as an option for
transportation. The introduction of HEVsinto the transportation sector can be viewed as a
good start, but the range (the distance that can be travelled with one charging cycle) is not
adequate. So PHEVs have started penetrating the market, in which the batteries can be
charged at any point where a charging outlet is available. For HEVs, the impact on the grid is
not a matter of concern, since HEVs are charged from their internal combustion engine by
regenerative braking, whenever the driver applies a brake.

As a resultbatteries in HEVs maintain a certain amount charge (70–80%). In the case of

PHEVs the car batteries are used steadily while driving in order to maximize fuel efficiency
and the battery charge decreases over time. The vehicle thus needs to be connected to the
power grid to charge its batteries when the vehicle is not in use. During its charging time, the
plug-in vehicle more than doubles the average household load [1]. Hence, for PHEVs, a
major concern is the impact on the grid, since they can be plugged in for charging at any
point in thedistribution network regardless of time. PHEVs will be posed as a new load on the
primary and secondary distribution network, where many of these circuits are already being
operated at their maximum capacity. With the increase in the number of PHEVs, the
additional load has the potential to disrupt the grid stability and significantly affect the power
system dynamics as a whole. The following sections will discuss the various approaches that
have been proposed in order to face the problem of overloading the grid. There has been
movement in the recent years to modernize the aging US power grid and the concept of smart
grid has been introduced as the power grid of the future which will be reliable, providing
dependable power at competitive prices and offer means for swift correction.

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 2.2 Smart Grid Technologies

Transmission Automation
1. Dynamic Line rating

2. High Temperature Low sag conductors

3. HVDC and FACTS

4. Wide Area Monitoring Systems (WAMS)

5. Renewable Energy Management System

Distribution Automation
1. Smart metering and Advanced Metering Infrastructure (AMI)

2. Demand Response Programs/ Demand side management

3. Peak load management

4. Power Quality Management

2.3 Advanced Automation Capabilities

Beside SCADA data, advanced Logical applications can be grouped and classified based on

voltage level example:

 Generation, Transmission and Feeder Bay automation.

 Distribution Automation Applications.
 Alternating Current Monitoring
 Communication Monitoring
 Data logging, I Storage or Historian applications
 Data Reduction and Summarizing
 Data Conversion

Other non-common logic can be achieved using programmable logic applications or PLC's in
the substation.

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 Oppositions and concerns

Most opposition and concerns have centered on smart meters and the items (such as remote
control, remote disconnect, and variable rate pricing) enabled by them. Where opposition to
smart meters is encountered, they are often marketed as "smart grid" which connects smart grid
to smart meters in the eyes of opponents. Specific points of opposition or concern include:

 consumer concerns over privacy, e.g. use of usage data by law enforcement
 social concerns over "fair" availability of electricity
 concern that complex rate systems (e.g. variable rates) remove clarity and accountability,
allowing the supplier to take advantage of the customer
 concern over remotely controllable "kill switch" incorporated into most smart meters
 social concerns over Enron style abuses of information leverage
 concerns over giving the government mechanisms to control the use of all power using
activities
 concerns over RF emissions from smart meters

Security
While modernization of electrical grids into smart grids allows for optimization of everyday
processes, a smart grid, being online, can be vulnerable to cyberattacks. Transformers which
increase the voltage of electricity created at power plants for long-distance travel, transmission
lines themselves, and distribution lines which deliver the electricity to its consumers are
particularly susceptible. These systems rely on sensors which gather information from the field
and then deliver it to control centers, where algorithms automate analysis and decision-making
processes. These decisions are sent back to the field, where existing equipment execute them.
Hackers have the potential to disrupt these automated control systems, severing the channels
which allow generated electricity to be utilized. This is called a denial of service or DoS attack.
They can also launch integrity attacks which corrupt information being transmitted along the
system as well as desynchronization attacks which affect when such information is delivered to
the appropriate location. Additionally, intruders can again access via renewable energy
generation systems and smart meters connected to the grid, taking advantage of more
specialized weaknesses or ones whose security has not been prioritized. Because a smart grid
has a large number of access points, like smart meters, defending all of its weak points can
prove difficult. There is also concern on the security of the infrastructure, primarily that
involving communications technology. Concerns chiefly center around the communications
technology at the heart of the smart grid. Designed to allow real-time contact between utilities
and meters in customers' homes and businesses, there is a risk that these capabilities could be
exploited for criminal or even terrorist actions. One of the key capabilities of this connectivity
is the ability to remotely switch off power supplies, enabling utilities to quickly and easily
cease or modify supplies to customers who default on payment. This is undoubtedly a massive
boon for energy providers, but also raises some significant security issues. Cybercriminals

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have infiltrated the U.S. electric grid before on numerous occasions. Aside from computer
infiltration, there are also concerns that computer malware like Stuxnet, which targeted
SCADA systems which are widely used in industry, could be used to attack a smart grid
network.

Electricity theft is a concern in the U.S. where the smart meters being deployed use RF
technology to communicate with the electricity transmission network.[citation needed] People
with knowledge of electronics can devise interference devices to cause the smart meter to
report lower than actual usage.[citation needed] Similarly, the same technology can be
employed to make it appear that the energy the consumer is using is being used by another
customer, increasing their bill.[citation needed]

The damage from a well-executed, sizable cyberattack could be extensive and long-lasting.
One incapacitated substation could take from nine days to over a year to repair, depending on
the nature of the attack. It can also cause an hours-long outage in a small radius. It could have
an immediate effect on transportation infrastructure, as traffic lights and other routing
mechanisms as well as ventilation equipment for underground roadways is reliant on
electricity. Additionally, infrastructure which relies on the electric grid, including wastewater
treatment facilities, the information technology sector, and communications systems could be
impacted.

The December 2015 Ukraine power grid cyberattack, the first recorded of its kind, disrupted
services to nearly a quarter of a million people by bringing substations offline. The Council on
Foreign Relations has noted that states are most likely to be the perpetrators of such an attack
as they have access to the resources to carry one out despite the high level of difficulty of
doing so. Cyber intrusions can be used as portions of a larger offensive, military or otherwise.
Some security experts warn that this type of event is easily scalable to grids elsewhere.
Insurance company Lloyd's of London has already modeled the outcome of a cyberattack on
the Eastern Interconnection, which has the potential to impact 15 states, put 93 million people
in the dark, and cost the country's economy anywhere from $243 billion to $1 trillion in
various damages.

According to the U.S. House of Representatives Subcommittee on Economic Development,

Public Buildings, and Emergency Management, the electric grid has already seen a sizable
number of cyber intrusions, with two in every five aiming to incapacitate it. As such, the U.S.
Department of Energy has prioritized research and development to decrease the electric grid's
vulnerability to cyberattacks, citing them as an "imminent danger" in its 2017 Quadrennial
Energy Review. The Department of Energy has also identified both attack resistance and self-
healing as major keys to ensuring that today's smart grid is future-proof. While there are
regulations already in place, namely the Critical Infrastructure Protection Standards introduced

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by the North America Electric Reliability Council, a significant number of them are
suggestions rather than mandates. Most electricity generation, transmission, and distribution
facilities and equipment are owned by private stakeholders, further complicating the task of
assessing adherence to such standards. Additionally, even if utilities want to fully comply, they
may find that it is too expensive to do so.

Some experts argue that the first step to increasing the cyber defenses of the smart electric grid
is completing a comprehensive risk analysis of existing infrastructure, including research of
software, hardware, and communication processes. Additionally, as intrusions themselves can
provide valuable information, it could be useful to analyze system logs and other records of
their nature and timing. Common weaknesses already identified using such methods by the
Department of Homeland Security include poor code quality, improper authentication, and
weak firewall rules. Once this step is completed, some suggest that it makes sense to then
complete an analysis of the potential consequences of the aforementioned failures or
shortcomings. This includes both immediate consequences as well as second- and third-order
cascading effects on parallel systems. Finally, risk mitigation solutions, which may include
simple remediation of infrastructure inadequacies or novel strategies, can be deployed to
address the situation. Some such measures include recoding of control system algorithms to
make them more able to resist and recover from cyberattacks or preventive techniques that
allow more efficient detection of unusual or unauthorized changes to data. Strategies to
account for human error which can compromise systems include educating those who work in
the field to be wary of strange USB drives, which can introduce malware if inserted, even if
just to check their contents.

Other solutions include utilizing transmission substations, constrained SCADA networks,

policy based data sharing, and attestation for constrained smart meters.

Transmission substations utilize one-time signature authentication technologies and one-way

hash chain constructs. These constraints have since been remedied with the creation of a fast-
signing and verification technology and buffering-free data processing.

A similar solution has been constructed for constrained SCADA networks. This involves
applying a Hash-Based Message Authentication Code to byte streams, converting the random-
error detection available on legacy systems to a mechanism that guarantees data authenticity.

Policy-based data sharing utilizes GPS-clock-synchronized-fine-grain power grid

measurements to provide increased grid stability and reliability. It does this through synchro-
phasor requirements that are gathered by PMUs.

Attestation for constrained smart meters faces a slightly different challenge, however. One of
the biggest issues with attestation for constrained smart meters is that in order to prevent
energy theft, and similar attacks, cyber security providers have to make sure that the devices'
software is authentic. To combat this problem, an architecture for constrained smart networks
has been created and implemented at a low level in the embedded system

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 References

 Sayed, K.; Gabbar, H. A. (1 January 2017). "Chapter 18 – SCADA and smart energy

grid control automation". Smart Energy Grid Engineering. Academic Press: 481–514.

 http://www.ieadsm.org/publication/functionalities-of-smart-grid-and-smart-meters-

eutf/

 https://epb.com/home-store/power/smart-grid

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