WK,QWHUQDWLRQDO&RQIHUHQFHRQ5HQHZDEOH(QHUJ\5HVHDUFKDQG$SSOLFDWLRQV
         
         
       
Mehmet Yesilbudak1, Ayse Colak2
1
Nevsehir Haci Bektas Veli University, Faculty of Engineering and Architecture, Department of Electrical and Electronics
Engineering, 50300, Nevsehir, Turkey.
2
Cankaya University, Faculty of Engineering, Department of Electronics and Communication Engineering, 06790, Ankara, Turkey.
myesilbudak@nevsehir.edu.tr, colakayse94@gmail.com
Abstract—As a result of the rapid increase on electricity
demand and power system expansion worldwide, smart grids
have emerged as an opportunity for the modernization of
traditional grids. Nevertheless, there are many technical
limitations in the advancement of smart grid technologies.
Toward this end, initially, we present the constituents, benefits,
risks, projects and standards of smart grids in a brief manner.
Afterwards, we conduct a comprehensive literature survey on the
challenges and the solutions encountered in the integration of
renewable energy sources, electric vehicles and demand-side
initiatives. In consequence, more than 100 research and review
publications, widely extending from 2006 to 2017 have been
examined in-depth, the key findings are listed one by one and
several new research areas are uncovered for the mentioned
smart grid technologies.
Keywords—Smart grids; renewable energy sources; electric
vehicles; demand-side initiatives; integration; challenges; solutions
I. INTRODUCTION
Smart power grids have a variety of benefits with respect
to the traditional power grids. Some of them covers human-
centered, coordinated and digital structure, network topology,
distributed generation and load-shaping strategy, remote
checks/tests, self-monitoring and self-healing, two-way
communication, pervasive control and numerous sensors,
many customer choices, price elasticity and fault tolerance,
high power quality and reduced power loss, lower emission of
greenhouse gases, resiliency against cyber-attacks and natural
disasters [1-3]. However, there are some inherent risks in
restructuring the utility grid. Huge amount of investment and
lack of financial resources, absence of policies, regulations
and standards, lack of necessary technical skills and
knowledge, deficiency of infrastructure and innovativeness in
the industry, market uncertainty, low public awareness and
engagement, need of advanced bi-directional communication
systems, integration of the grid with large scale renewable
generation and data privacy are required to be addressed for
the modernization of utility grid [4, 5]. The constituents of a
smart power grid are summarized in Figure 1. As shown in
this figure, the constitutive units are divided into three main
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parts: information and communication technologies, sensing,
measurement, control and automation technologies, power
electronics and energy storage technologies.
Despite smart power grids are still evolving on the basis of
innovation, customer, reliability, environmental and economic
impact pillars, particularly, some smart grid projects in the
world stand out in terms of their overall achievements [6, 7].
These are OG&E Positive Energy Smart Grid with US$ 334.9
million budget in USA [8], Townsville Queensland Solar City
with AU$ 30 million budget [9] and Smart Grid, Smart City
with AU$ 100 million budget [10] in Australia, Yokohama
Smart City Project with 74 billion YEN budget in Japan [11]
and Búzios Smart City Project with 40 million BRL budget in
Brazil [12]. In case of focusing the smart grid projects in
Europe as of 2014 [13, 14], 211 Research & Development
(R&D) projects and 248 Demonstration & Deployment (D&D)
projects are emerged with the total budgets of around € 830
million and € 2320 million, respectively. More than 50 % of
all projects are conducted by Denmark, Germany, Italy,
Austria, United Kingdom, France and Spain. The most
encountered application type is the smart network
management in R&D and D&D projects. Afterwards,
integration of distributed energy resources in R&D projects
and smart home/smart customer in D&D projects come into
prominence with respect to other application types. In
addition, many academic surveys about the current status of
smart grids are available for different countries in the literature
[14-21].
Moreover to these disclosures, standardization activities
are still underway in order to facilitate deployment and
interoperability of smart grids. The International
Electrotechnical Commission (IEC) [22] has identified over
100 standards. A highly summarized overview of
standardization family is given in Table I. As seen in this
table, standardization family covers the areas of
HVDC/FACT, energy management systems, distribution
management systems, distribution automation, substation
automation, distributed energy resources, advanced metering
infrastructure, demand response, smart homes, electric storage
and electromobility.

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Smart Grid Technologies

Information and Communication Sensing, Measurement, Control Power Electronics and Energy Storage
Technologies and Automation Technologies Technologies
Power Line Communication Advanced Metering Infrastructure High Voltage DC (HVDC)
Ultra-Narrowband PLC Demand-Side Integration Current Source Converters
Narrowband PLC Voltage Source Converters
Demand-Side Management
Broadband PLC Multi-Level Converters
Demand Response
Wireless Communication Multi-Modular Converters
Demand-Side Participation
WPAN (IEEE 802.15) Flexible AC Transmission (FACT)
Electric Vehicle Integration
WLAN (IEEE 802.11) Static VAR Compensator
WIMAX (IEEE 802.16)
Renewable Energy Integration Static Synchronous Compensator

Cellular Communication Substation Automation System Thyristor-Controlled Series Compensator

Current and Voltage Transformers Thyristor-Switched Series Compensator
GPRS EDGE HSPA
Intelligent Electronic Devices Static Synchronous Series Compensator
EVDO CDMA LTE
Bay Controllers Unified Power Flow Controller
2G, 3G, 4G Mobile Systems
Remote Terminal Units Interline Power Flow Controller
Internet-Based VPNs
Static Phase Shifter
IPSec MPLS
Distribution Management System
Customer Information System Energy Storage
Satellite Communication
Load Forecasting Supercapacitors
Optical Fiber Communication Power Flow Analysis Flywheels

Digital Subscriber Lines Comm. State Estimation Batteries (Li-ion, NaS, NaNiCl, NiMH, NiCd)
System Monitoring Flow Batteries (ZnCl, ZnBr, ZnAir, VRB)
Terrestrial Trunked Radio Comm.
Hydrogen Energy Storage
Transmission System Operation
Information Security Pumped Hydroelectric Storage
Phasor Measurement Units
Device Attacks Compressed Air Energy Storage
Network Attacks
Energy Management System Electrochemical Double Layer Capacitor
Data Attacks Outage Management System Superconducting Magnetic Energy Storage

Fig. 1. The constituents of a smart power grid [23]1

TABLE I. A H IGHLY SUMMARIZED O VERVIEW OF IEC STANDARDIZATION FAMILY IN THE AREA OF SMART GRIDS [24]
IEC/TR 61158 / 61784

IEC 62051-54 / 58-59

CIM-IEC 61970-301

Standards IEC 61850-7-410

IEC 61850-7-420

IEC CDV 62576

SOA-IEC 62357

ISO/IEC 14543
ISO/IEC 27001

IEC/TR 61000

IEC/TR 61334

IEC/TR 62357
IEC 60870-5
IEC 60870-6
IEC 60255
IEC 60364
IEC 60495
IEC 60633
IEC 60834

IEC 60904

IEC 61140

IEC 61400
IEC 61850

IEC 61851
IEC 61869
IEC 61954
IEC 61968
IEC 61970
IEC 61982

IEC 62056
IEC 62282
IEC 62351

IEC 62600
Smart Grid Areas

HVDC/FACT x x
Energy management systems x x x x x x x x x x x
Distribution management systems x x x x x x x x x x x x x x x x
Distribution automation x x x x x x x x x
Substation automation x x x x x x x x x x x x
Distributed energy resources x x x x x x x x x x x x x x x
Advanced metering infrastructure x x x x x x x x x x
Demand response x x x x x x x
Smart homes x x x x x x x x x x
Electric storage x x x x x x x
Electromobility x x x x x x x x x x

Smart grids are still under development in the world and in
parallel to this evolution, various technologies, methodologies
and mechanisms are offered to cope with the problems faced
in the smart grid technologies. Nevertheless, an exhaustive
challenges-solutions analysis is still needed in the fields of
renewable energy integration, electric vehicle integration and
demand-side integration. For this purpose, in this study, many
review and research papers have been investigated in detail
1
PLC: Power Line Communication, WPAN: Wireless Personal Area Network,
WLAN: Wireless Local Area Network, WIMAX: Wireless Interoperability
for Microwave Access, GPRS: General Packet Radio Service, EDGE:
Enhanced Data Rates for GSM Evolution, HSPA: High-Speed Packet Access,
EVDO: Evolution-Data Optimized, CDMA: Code-Division Multiple-Access,
LTE: Long-Term Evolution, 2G: Second-Generation, 3G: Third-Generation,
4G: Fourth-Generation, VPN: Virtual Private Networks, IPSec: Internet
Protocol Security, MPLS: Multi-Protocol Label Switching
and it is expected that the findings will help in understanding
and analyzing the impacts of the mentioned technologies in
future smart grid constructions.
II. INTEGRATION OF RENEWABLE ENERGY SOURCES, ELECTRIC
VEHICLES AND DEMAND-SIDE INITIATIVES IN SMART GRIDS
As a result of the rapid depletion of conventional energy
sources based on oil, coal and natural gas, renewable energy
constitutes the survival backbone of economic and sustainable
development in the world [25]. Wind, solar, hydro, marine,
geothermal and biomass energy sources mitigate greenhouse
gas emissions, reduce the countries dependence on imports of
energy and increase security, efficiency and savings in the
energy supply [26, 27]. In addition, climate change is driving a
shift in the transport sector from fossil fuels to alternative

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fuels and electric vehicles are promising technologies for
reduced road transport emissions and increased fuel economy
[28]. There are three main types of electric vehicles called
hybrid electric vehicles (1.8 MT CO2-843 €/year), plug-in
electric vehicles (1.61 MT CO2-646.6 €/year) and full electric
vehicles (1.02 MT CO2-430.6 €/year) [29, 30]. Demand-side
integration is also essential for increasing security and quality
of supply, improving energy efficiency and reducing energy
costs [31] Flexible load shape, strategic load growth, strategic
conservation, load shifting, valley filling and peak clipping
techniques are mostly used in demand-side integration (DSI)
[32]. DSI programs include direct load control, interruptible
load control, demand bidding, capacity marketing, ancillary
service marketing, time-of-use pricing, critical peak pricing,
extreme day pricing and real-time pricing [33]. Aside these
benefits, there are some barriers to be solved as priority tasks
in renewable energy, electrical vehicle and demand-side
integration.
A. Integration of Renewable Energy Sources
As a result of large-scale renewable energy integration, the
demand for peak load capacity increases on long term [34],
electricity prices become more volatile due to scarcity of
primary fuels and intermittent nature of renewables [35] and
the existing SCADA (Supervisory Control and Data
Acquisition) systems need to be expanded due to spatial
distribution of renewable power plants and to be upgraded due
to specific energy management functions [36]. In addition,
large-scale energy storage systems are required for efficient
supply-side flexibility. However, PHES (Pumped Hydro
Energy Storage) and CAES (Compressed Air Energy Storage)
are site-dependent, and discharge time of SMES
(Superconducting Magnetic Energy Storage), super capacitors
and flywheels are limited and batteries have short operational
lifetimes [34, 37]. The saturation of the magnetic circuit in
transformers, power electronic devices and non-linear
equipment also injects harmonics into the grid and creates
voltage distortion problems [38]. Particularly, wind turbine
design and types, turbulence at the wind farm site and the
position of the wind farm connection to the grid are
responsible for the power system transients, the reactive power
consumption, the electromagnetic interference, the low power
factor and the synchronization problems [39, 40]. Wind
turbines also cause to adverse aesthetic impacts on the
landscape, mechanical and aerodynamic noises and habitat
disruption and displacement [41]. The replacement of
synchronous generators by PV with higher ramp rates
adversely affects dynamic voltage, static voltage and
frequency stabilities of the system and transient over voltage
problems increases with the size of PV and the distance of POI
(Point of Interconnection) from the main grid [42, 43].
Moreover, power system transient instabilities also occur with
the extensive loss of PV units [44]. Photovoltaic and wind
power plants do not stay connected to the grid during voltage
dips and small signal disturbance occurs due to a group of
generators in one area swinging against a group of generators
in another area [45]. In addition, some potential challenges
encountered in hydro, marine, geothermal and biomass energy
sources can be found in [46-53].
Some solutions have been proposed for the barriers
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emerging in renewable energy integration as follows:
x Arrangement in uniform rows with light colours for
improving aesthetic perceptions, acoustic insulation and
optimized airfoils for reducing noises and radar systems for
detecting migration paths of birds in wind turbines [39, 54],
x Accurate and periodic forecasting techniques for load
tracking, pre-load sharing, energy trading, maintenance and
repair in photovoltaic and wind power plants [55, 56],
x STATCOM (Static Synchronous Compensator), SVC (Static
VAR Compensator), UPFC (Unified Power Flow
Controller), TCSC (Thyristor-Controlled Series
Compensator) and capacitor-reactor banks for mitigating
active and reactive power problems, voltage instability,
frequency deviations and harmonic distortions in
photovoltaic and wind power plants [57-59],
x PS (Positive Sequence) and NS (Negative Sequence)
component decomposition and RSC (Rotor-Side Converter)
and GSC (Grid-Side Converter) control modification for
improving the low-voltage ride-through capability of
photovoltaic and wind power plants, respectively [60-62],
x Power oscillation damping and wide-area damping
controllers in order to compensate inter-area oscillations in
photovoltaic and wind power plants, respectively [63, 64],
x Electricity-to-thermal (E2T), power-to-gas (P2G), power-to-
hydrogen (P2H) and vehicle-to-grid (V2G) conversion
strategies in order to avoid from wasting the electricity in
renewable energy curtailment [65-67],
x Subsidies, grants and loans for financial support, FIT (Feed-
In-Tariffs), RPS (Renewable Portfolio Standard) and
competitive bidding mechanisms for legislative support, tax
exemptions in investments and environmental tax initiatives
for fiscal support [68],
B. Integration of Electric Vehicles
Electric vehicle batteries are worn out depending on
energy throughput, depth of discharge and overheating by
high-current discharging or charging for long periods [69].
The total cost of ownership in electric vehicles is also higher
than conventional ICE (Internal Combustion Engine) vehicles
[70]. The major problems in grid-to-vehicle (G2V) charging
are transformer overloading and thermal loading of grid
conductors during peak demand periods with higher charging
currents, network imbalance, power losses and voltage
deviations during unregulated and random charging and
different charging loads due to the variety of battery types and
charging strategies [28, 71]. In addition, most of network
integrated battery chargers available on the market generate
significant amount of current harmonics into the power grid
[72]. On the other hand, V2G services require more charge
and discharge cycles and this results in quicker battery
degradation and energy conversion losses [73, 74], more
investment costs and updates are needed for advanced smart
metering, additional communication features and parking lot
buildings [75, 76]. The mobility behavior of owners causes to
unexpected shortages in the grid due the unavailability of
electric vehicles during peak load shaving [77]. In addition,
bidirectional electric vehicle chargers in the market are not
fully matured and the design and development of them needs

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to get more attention in the experimental phase [78].
Some solutions have been recommended for the challenges
arising in electric vehicle integration as follows:
x Financial incentive-based policies and tariffs in order to
mitigate social barriers [79, 80],
x DoD (Depth of Discharge) < 60%, T (Battery Temperature)
< 35 oC and mean SoC (State of Charge) < 60% in order to
maintain the battery life cycle within an acceptable range
[81],
x Convex optimization, linear and quadratic programming,
genetic, ant colony and particle swarm algorithms in order to
optimize unidirectional and bidirectional control strategies
[82, 83],
x Internet-enabled decentralized and mobility-aware
charging/discharging schedules in order to balance
supply/demand potential of G2V and V2G interactions [84,
85],
x Cost- and efficiency-aware electric vehicles interacting with
renewable energy sources in order to reduce electricity
generation and transmission costs, to minimize operational
and charging costs, to maximize renewable utilization and to
optimize energy dispatch [86, 87],
x Active rectifier with filter in front-end AC/DC converter and
full bridge converter with phase shifted ZVZCS (Zero
Voltage Zero Current Switching) in back-end DC/DC
converter for G2V operation. This configuration achieves
DC-link voltage regulation, unity power factor correction,
current harmonic elimination, reactive power compensation,
galvanic isolation and primary current reset during
freewheeling period [78, 88],
x Three-phase transformer in front-end AC/AC device and
three-phase three-level diode clamped converter in back-end
AC/DC converter for V2G operation. This configuration
changes input supply voltage to appropriate voltage level,
provides galvanic isolation, allows bidirectional power flow
and provides ancillary services to the grid [78, 89],
C. Demand-Side Integration
There has been a variety of overlapping concepts and
terminologies such as demand-side management, demand
response, demand-side participation, etc. in order to describe
different demand-side initiatives in the literature [23, 90]. For
this reason, demand-side integration is used to refer all aspects
of the relationships between electric power systems, energy
sources and end-user loads in this study. DSI requires the
significant deployment of various communication systems,
control devices and sensors with much more sophisticated
energy trading functions. The demand controllability varies
according to the stress level of different system segments, the
operational complexity increases in power systems and there
is a lack of methodologies for the quantification of costs and
benefits [91, 92]. The lack of cost-recovery mechanisms for
grid companies, the lack of policy-making for wholesale
electricity markets, the employment of extensive assumptions
due to the lack of experience and the low implementation
priority in environmental, economic and energy policies also
prevent the commercialization of DSI [93-95]. In addition,
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demand forecasting suffers from the large volume of
electricity consumption data recorded in small time periods,
the uncertainties in generation profile of distributed and
renewable energy sources, the demand profile variations due
to environmental, economic and social factors, the prediction
errors in weather forecasting models and customer
participation levels and the lack of historical data in mining
electricity consumption patterns [96, 97].
Some advices have been made for the problems
encountered in demand-side integration as follows:
x The establishment of demand-side integration industry and
the imposition of demand-side integration portfolios by
governments [98],
x Production cost simulations and capacity value calculations
for determining and evaluating integration costs and benefits
[99],
x Virtual power plants and load aggregators in the
intermediary between system/market operators and large
number of demand-side resources for reducing the system
operation complexity [100, 101],
x Long-term capacity markets, energy saving certificates and
energy performance contracts for system operator-,
generation stakeholder- and load-based energy efficiency
business models, respectively [102, 103],
x Hybrid incentive-based and price-based business models for
optimizing load control characteristics such as response
speed, response duration, advance notification, location
sensitivity and actual usage rate [102, 104],
x Particle swarm optimization-, genetic algorithm- and
wavelet transform-based artificial neural networks, adaptive
neuro-fuzzy inference systems, generalized regression neural
networks, support vector machines, autoregressive integrated
moving average and autoregressive moving average models
for higher demand forecast accuracies associated with
regulation, dispatching, scheduling and unit commitment of
power grids [105, 106],
x k-means algorithm, fuzzy c-means algorithm, self-
organizing maps, hierarchical clustering methods, bee
colony optimization and ant colony optimization for
extracting valuable knowledge from massive load data and
classifying load types in smart grid environment [107],
III. CONCLUSIONS
The literature survey conducted in this paper provides a
useful overview of the major problems and the up-to-date
developments encountered in the integration of renewable
energy sources, electric vehicles and demand-side initiatives.
In consequence of the entire challenges-solutions analysis
realized in this study, the following open research issues still
require to be solved for the mentioned smart grid technologies:
x The improvement of energy router functionalities for the
flexible power distribution and control,
x The design of new hybrid power prediction methods for the
high-level renewable energy efficiency,
x The design of new power electronic interfaces for the
mitigation of reactive power consumption and harmonic

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distortions,
x The impact analysis of large-scale wind and photovoltaic
penetration level on the voltage, frequency and rotor angle
stability of power systems,
x The design of new defense mechanisms against power
system failures and blackouts for the secure large-scale
renewable energy integration,
x The development of wide-area active power-frequency and
reactive power-voltage control strategies for the smart active
distribution networks,
x The design of new battery technologies for the optimization
of low energy density, limited life cycle and high initial
costs of electric vehicles,
x The development of new time-of-use electricity rates for the
encouragement electric vehicle owners to charge their
vehicles during the off-peak times,
x The construction of bi-directional electric vehicle charging
network for the sufficient deployment of vehicle-to-grid
implementations,
x The modelling of physical properties and energy-limited
nature of demand response resources in a holistic manner,
x The design of demand response education programs for the
wide participation of customers with different attitudes,
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