SYLLABUS

Distributed generation – Introduction - Integration of distributed generation to

Grid – Concepts of Micro Grid - Typical Microgrid configurations - AC and DC
micro grids - Interconnection of Microgrids - Technical and economical
advantages of Microgrid - Challenges and disadvantages of Microgrid
development.
Smart Grid: Evolution of Electric Grid - Definitions and Need for Smart Grid,
Opportunities, challenges and benefits of Smart Grids

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INTRODUCTION
Around the world, conventional power system is facing the problems of
gradual depletion of fossil fuel resources, poor energy efficiency and
environmental pollution.
These problems have led to a new trend of generating power locally at
distribution voltage level by using non-conventional/renewable energy sources
and their integration into the utility distribution network.
This type of power generation is termed as distributed generation (DG) and the
energy sources are termed as distributed energy resources (DERs).
The term ‘Distributed Generation’ has been devised to distinguish this concept
of generation from centralised conventional generation.

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The distribution network becomes active with the integration of DG and hence
is termed as active distribution network.
Conventional power stations, such as coal-fired, gas and nuclear
powered plants, as well as hydroelectric dams and large-scale solar power
stations, are centralized and often require electric energy to be transmitted over
long distances.
By contrast, DER systems are decentralized, modular and more flexible
technologies, that are located close to the load they serve, though having
capacities of only 10 megawatts (MW) or less.
DER systems typically use renewable energy sources, including small
hydro, biomass, biogas, solar power, wind power, and geothermal power, and
increasingly play an important role for the electric power distribution system.

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According to several research studies, some universally accepted common
attributes of DG are as follows:
1. It is not centrally planned by the power utility, nor centrally dispatched.
2. It is normally smaller than 50 MW.
3. The power sources or distributed generators are usually connected to the
distribution system, which are typically of voltages 230/415 V up to 145 kV.

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INTEGRATION OF DISTRIBUTED GENERATION
In spite of several advantages provided by conventional power systems, the
following technical, economic and environmental benefits have led to gradual
development and integration of DG systems:
1. Due to rapid load growth, the need for augmentation of conventional
generation brings about a continuous depletion of fossil fuel reserve.
Therefore, most of the countries are looking for non-conventional/renewable
energy resources as an alternative.
2. Reduction of environmental pollution and global warming acts as a key
factor in preferring renewable resources over fossil fuels.

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3. DG provides better scope for setting up co-generation, trigeneration or
combined heat and power(CHP) plants for utilising the waste heat for
industrial/domestic/commercial applications. This increases the overall
energy efficiency of the plant and also reduces thermal pollution of the
environment.
4. Due to lower energy density and dependence on geographical conditions of a
region, DERs are generally modular units of small capacity. These are
geographically widespread and usually located close to loads. This is
required for technical and economic viability of the plants.
5. Stand-alone and grid-connected operations of DERs help in generation
augmentation, thereby improving overall power quality and reliability.

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CONCEPT OF MICROGRID
Microgrids are small-scale, LV supply networks designed to supply electrical
and heat loads for a small community, such as a housing estate or a suburban
locality, or an academic or public community such as a university or school, a
commercial area, an industrial site, a trading estate or a municipal region.
Microgrid is essentially an active distribution network because it is the
combination of DG systems and different loads at distribution voltage level.
The generators or microsources employed in a Microgrid are usually
renewable/non-conventional DERs integrated together to generate power at
distribution voltage.

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 Microgrid

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From operational point of view, the microsources must be equipped with
power electronic interfaces (PEIs) and controls to provide the required
flexibility to ensure operation as a single aggregated system and to maintain
the specified power quality and energy output.
This control flexibility would allow the Microgrid to present itself to the main
utility power system as a single controlled unit that meets local energy needs
for reliability and security.

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The key differences between a Microgrid and a conventional power plant are as
follows:
1. Microsources are of much smaller capacity with respect to the large
generators in conventional power plants.
2. Power generated at distribution voltage can be directly fed to the utility
distribution network.
3. Microsources are normally installed close to the customers’ premises so that
the electrical/heat loads can be efficiently supplied with satisfactory voltage
and frequency profile and negligible line losses.

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From grid point of view, the main advantage of a Microgrid is that it is treated
as a controlled entity with in the power system. It can be operated as a single
aggregated load.
From customers’ point of view, Microgrids are beneficial for locally meeting
their electrical/heat requirements. They can supply uninterruptible power,
improve local reliability, reduce feeder losses and provide local voltage
support.
From environmental point of view, Microgrids reduce environmental pollution
and global warming through utilisation of low-carbon technology.

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However, to achieve a stable and secure operation, a number of technical,
regulatory and economic issues have to be resolved before Microgrids can
become commonplace.
Some problem areas that would require due attention are
 The intermittent and climate-dependent nature of generation of the DERs,
 Low energy content of the fuels and
 Lack of standards and regulations for operating the Microgrids in synchronism
with the power utility.

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A TYPICAL MICROGRID CONFIGURATION
A typical Microgrid configuration is shown in Figure below.
It consists of electrical/ heat loads and microsources connected through an LV
distribution network.
The loads (especially the heat loads) and the sources are placed close together
to minimise heat loss during heat transmission.
The microsources have plug-and-play features. They are provided with PEIs to
implement the control, metering and protection functions during stand-alone
and grid-connected modes of operation. These features also help seamless
transition of Microgrid from one mode to another.

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 Typical Microgrid Configuration

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The Microgrid consists of three radial feeders (A, B and C) to supply the
electrical and heat loads.
It also has two CHP and two non-CHP microsources and storage devices.
Microsources and storage devices are connected to feeders A and C through
microsource controllers (MCs).
Some loads on feeders A and C are assumed to be priority loads (i.e. requiring
uninterrupted power supply), while others are non-priority loads.
Feeder B, however, contains only non-priority electrical loads.
The Microgrid is coupled with the main medium voltage (MV) utility grid
(denoted as ‘main grid’) through the PCC (point of common coupling) circuit
breaker CB4 as per standard interface regulations

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CB4 is operated to connect and disconnect the entire Microgrid from the main
grid as per the selected mode of operation.
Feeders A, B and C can however be connected and disconnected by operating
breakers CB1, CB2 and CB3, respectively.
The microsources on feeders A and C are placed quite apart from the Microgrid
bus to ensure reduction in line losses, good voltage profile and optimal use of
waste heat.
Although the control of power flow and voltage profile along radial feeders is
quite complicated when several microsources are connected to a common
radial feeder and not to a common generator bus, this configuration is
necessary to avail the plug-and-play feature of the microsources.

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The Microgrid is operated in two modes:
(1) grid-connected and (2) standalone.
In grid-connected mode, the Microgrid remains connected to the main grid either totally
or partially, and imports or exports power from or to the main grid.
In case of any disturbance in the main grid, the Microgrid switches over to stand-alone
mode while still feeding power to the priority loads.
This can be achieved by either
i. disconnecting the entire Microgrid by opening CB4 or
ii. disconnecting feeders A and C by opening CB1 and CB3.
For option (i), the Microgrid will operate as an autonomous system with all the
microsources feeding all the loads in feeders A, B and C, whereas for option (ii),
feeders A and C will supply only the priority loads while feeder B will be left to ride
through the disturbance.

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The operation and management of Microgrid in different modes is controlled and
co-ordinated through local MCs and the central controller (CC) whose functions are
enlisted as follows:
Microsource controller – The main function of MC is to independently control the
power flow and load-end voltage profile of the microsource in response to any
disturbance and load changes.
Here ‘independently’ implies without any communications from the CC.
MC also participates in economic generation scheduling, load tracking/management
and demand side management by controlling the storage devices.
It must also ensure that each microsource rapidly picks up its generation, to supply
its share of load in stand-alone mode and automatically comes back to the grid-
connected mode with the help of CC.

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The most significant aspect of MC is its quickness in responding to the locally
monitored voltages and currents irrespective of the data from the neighbouring
MCs.
This control feature enables microsources to act as plug-and-play devices and
facilitates the addition of new microsources at any point of Microgrid without
affecting the control and protection of the existing units.
Two other key features are that an MC will not interact independently with
other MCs in the Microgrid and that it will override the CC directives that may
seem dangerous for its microsource.

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Central controller – The CC executes the overall control of Microgrid operation
and protection through the MCs. Its objectives are (i) to maintain specified voltage
and frequency at the load end through power-frequency (P-f ) and voltage control
and (ii) to ensure energy optimisation for the Microgrid.
The CC also performs protection co-ordination and provides the power dispatch and
voltage set points for all the MCs. CC is designed to operate in automatic mode with
provision for manual intervention as and when necessary.
Two main functional modules of CC are Energy Management Module (EMM) and
Protection Co-ordination Module (PCM).
i. Energy Management Module – EMM provides the set points for active and
reactive power output, voltage and frequency to each MC. This function is co-
ordinated through state-of-the-art communication and artificial intelligence
techniques.

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ii. Protection Co-ordination Module – PCM responds to Microgrid and main grid
faults and loss of grid (LOG) scenarios in a way so as to ensure correct
protection co-ordination of the Microgrid.
It also adapts to the change in fault current levels during changeover from grid-
connected to stand-alone mode. For achieving this, there is proper communication
between the PCM and the MCs and upstream main grid controllers.
For main grid fault, PCM immediately switches over the Microgrid to stand-alone
mode for supplying power to the priority loads at a significantly lower incremental
cost.
However, for some minor faults, the PCM allows the Microgrid to ride through in
the grid-connected mode for some time and it continues if any temporary fault is
removed.

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The functions of the CC in the grid-connected mode are as follows:
1. Monitoring system diagnostics by collecting information from the
microsources and loads.
2. Performing state estimation and security assessment evaluation, economic
generation scheduling and active and reactive power control of the
microsources and demand side management functions by using collected
information.
3. Ensuring synchronised operation with the main grid maintaining the power
exchange at prior contract points.

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The functions of the CC in the stand-alone mode are as follows:
1. Performing active and reactive power control of the microsources in order to
maintain stable voltage and frequency at load ends.
2. Adopting load interruption/load shedding strategies using demand side
management with storage device support for maintaining power balance and
bus voltage.
3. Initiating a local black start to ensure improved reliability and continuity of
service.
4. Switching over the Microgrid to grid-connected mode after main grid supply
is restored without hampering the stability of either grid.

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AC MICROGRID SYSTEMS
The main system in an AC microgrid is an AC or DC bulk system.
At some points within the distribution networks the DG units and storage devices are
connected.
A small AC Microgrid is formed within power system by interconnecting loads and
DG units.
DG units producing DC voltage are connected to the AC Microgrid through DC/AC
converter and DG units producing AC voltages are connected through a transformer.
During grid connected mode of operation, the two networks are interconnected at the
PCC, while the loads are supplied from the microsources, and if necessary from the
utility.

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 AC Microgrid Systems 

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If the power produced by DG system is more than power demand by load,
surplus power will be exported to the utility grid.
A fast switch can be placed in between utility grid and PCC at the cut off point
between the utility grid and Microgrid.
In most cases, voltage and frequency standards applied in most conventional
distribution systems are adopted by the AC Microgrid system for its
operations.
Comparing with conventional power grid, the major difference is emergence of
storage devices and DGs.

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DC MICROGRID SYSTEMS
Conventional power system is designed to transport AC power generated in central station to
the consumers via high-voltage AC (HVAC) transmission lines and lower voltage distribution
lines.
Mean while, the DC power systems have been employed for over long distances or via sea
cables, industrial power distribution systems, point-to-point transmissions,
telecommunication infrastructures and for interconnecting AC grids with different
frequencies.
Devices like fluorescent lights, mobile chargers, computers, adjustable speed drives (ASDs),
radios and many businesses and industrial appliances need DC power for their operation.
If these devices are connected to conventional utility grid, available AC power must be
converted into DC for use.

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 DC Microgrid Systems 

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In conventional power system, in order to integrate the power generated from
DC based DG units with the existing AC electric network, it must be converted
into AC first, later it must be converted to DC for many consumers.
Significant amount of energy loss occurs during this DC-AC-DC power
conversion stages.
In order to avoid these problems, loads and DG units are interconnected
together to form a DC Microgrid.
Advancement in power electronics technology and advantages of HVDC
operation are also incorporated to make DC Microgrid more attractive.
A new concept to tackle the present power distribution problems and realize the
future power system is implementation of a low-voltage  DC (LVDC)
distribution network.

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Figure shows the typical DC Microgrid systems interconnected with the main
systems at PCC, which can be an HVDC transmission line or utility grid from
the conventional power plants.
DC Microgrid network improves the overall efficiency of power transmission.
It facilitates more DG unit’s connection and guarantees a higher power quality
to the consumers than in the present distribution network.
Measuring instruments such as demand energy managements (DBMS),
advanced metering infrastructures (AMIs) and protection systems can be also
incorporated into the power converters.
Integration of these instruments improves power quality, reduces system losses
and down time and protection malfunctions.

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INTERCONNECTION OF MICROGRIDS
Since Microgrids are designed to generate power at distribution voltage level
along with utilisation of waste heat, they have restricted energy handling
capability.
Therefore, their maximum capacity is normally restricted to approximately 10
MVA as per IEEE recommendations.
Hence, it is possible to supply a large load pocket from several Microgrids
through a common distribution network, by splitting the load pocket into
several controllable load units, with each unit being supplied by one Microgrid.
In this way, Microgrids can be interconnected to form much larger power pools
for meeting bulk power demands.

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For interconnected Microgrids, each CC must execute its control in close co-
ordination with the neighbouring CCs.
Thus, an interconnected Microgrid would achieve greater stability and
controllability with a distributed control structure.
It would also have more redundancy to ensure better supply reliability.

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TECHNICAL AND ECONOMICAL ADVANTAGES
OF MICROGRID
The development of Microgrid is very promising for the electric energy
industry because of the following advantages:
1. Environmental issues – It is needless to say that Microgrids would have
much lesser environmental impact than the large conventional thermal power
stations. Some of the benefits of Microgrid in this regard are as follows:
i. Reduction in gaseous and particulate emissions due to close control of the
combustion process may ultimately help combat global warming.
ii. Physical proximity of customers with microsources may help to increase the
awareness of customers towards judicious energy usage.

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2. Operation and investment issues – Reduction of physical and electrical
distance between microsource and loads can contribute to:
i. Improvement of reactive support of the whole system, thus enhancing the
voltage profile.
ii. Reduction of T&D feeder congestion.
iii. Reduction of T&D losses to about 3%.
iv. Reduction/postponement of investments in the expansion of transmission and
generation systems by proper asset management.

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3. Power quality – Improvement in power quality and reliability is achieved due
to:
i. Decentralisation of supply.
ii. Better match of supply and demand.
iii. Reduction of the impact of large-scale transmission and generation outages.
iv. Minimisation of downtimes and enhancement of the restoration process through
black start operations of microsources.

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4. Cost saving – The following cost savings are achieved in Microgrid:
i. A significant saving comes from utilisation of waste heat in CHP mode of
operation.
ii. Cost saving is also effected through integration of several microsources. As they
are locally placed in plug-and-play mode, the T&D costs are drastically reduced
or eliminated.

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5. Market issues – The following advantages are attained in case of market
participation:
i. The development of market-driven operation procedures of the Microgrids will
lead to a significant reduction of market power exerted by the established
generation companies.
ii. Widespread application of modular plug-and-play microsources may contribute
to a reduction in energy price in the power market.
iii. The appropriate economic balance between network investment and DG
utilisation is likely to reduce the long-term electricity customer prices by about
10%.

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CHALLENGES AND DISADVANTAGES OF
MICROGRID DEVELOPMENT
In spite of potential benefits, development of Microgrids suffers from several
challenges and potential drawbacks as explained.
1. High costs of distributed energy resources
 The high installation cost for Microgrids is a great disadvantage.
 This can be reduced by arranging some form of subsidies from government bodies
to encourage investments.
 This should be done at least for a transitory period for meeting up environmental
and carbon capture goals.
 There is a global target set to enhance renewable green power generation to 20%
by 2020 and to reduce carbon emission by 50% by 2050.

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2. Technical difficulties
 These are related to the lack of technical experience in controlling a large number
of plug-and-play microsources.
 This aspect requires extensive real-time and off line research on management,
protection and control aspects of Microgrids and also on the choice, sizing and
placement of microsources.
 Specific telecommunication infrastructures and communication protocols must be
developed in this area.

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3. Absence of standards
 Since Microgrid is a comparatively new area, standards are not yet available for
addressing operation and protection issues.
 Power quality data for different types of sources, standards and protocols for
integration of microsources and their participation in conventional and deregulated
power markets, safety and protection guidelines, etc., should be laid down.
4. Administrative and legal barriers
 In most countries, no standard legislation and regulations are available to regulate
the operation of Microgrids.
 Governments of some countries are encouraging the establishment of green power
Microgrids, but standard regulations are yet to be framed for implementation in
future.

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5. Market monopoly
 If the Microgrids are allowed to supply energy autonomously to priority loads
during any main grid contingency, the main question that arises is who will then
control energy supply prices during the period over which which main grid is not
available.
 Since the main grid will be disconnected and the current electricity market will
lose its control on the energy price, Microgrids might retail energy at a very high
price exploiting market monopoly. Thus, suitable market infrastructure needs to be
designed and implemented for sustaining development of Microgrids.

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Management and Operational Issues of A Microgrid
For maintaining power quality, active and reactive power balance must be
maintained within the Microgrid on a short-term basis.
A Microgrid should operate stand-alone in regions where utility supply is not
available or in grid-connected mode within a larger utility distribution network.
Generation, supply and storage of energy must be suitably planned with
respect to load demand on the Microgrid and long-term energy balance.
Supervisory control and data acquisition (SCADA) based metering, control
and protection functions should be incorporated in the Microgrid CCs and
MCs.

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Economic operation should be ensured through generation scheduling,
economic load dispatch and optimal power flow operations.
System security must be maintained through contingency analysis and
emergency operations (like demand side management, load shedding, islanding
or shutdown of any unit).
Temporary mismatch between generation and load should be alleviated through
proper load forecasting and demand side management. The shifting of loads
might help to flatten the demand curve and hence to reduce storage capacity.
Suitable telecommunication infrastructures and communication protocols must
be employed for overall energy management, protection and control. Carrier
communication and IEC 61850 communication infrastructures are most likely
to be employed.

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EVOLUTION OF ELECTRIC GRID
Our modern industrialized world would not have been developed without the
rapid electrification that took place around the world in the early 1900s.
Although we recognize Thomas Edison as a tireless inventor and the designer
of the first direct current (DC) generating power plant in 1882, it is Nicola
Tesla, to whom we owe credit for the invention and design of the power grid.
Tesla developed a competing electrical system to Edison’s based on alternating
current (AC), which can be transformed to high voltages and transmitted
across great distances. This system is in use today.
The first alternating current power grid system was installed in 1886 in Great
Barrington, Massachusetts.

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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.
They were then branched and divided to provide power to smaller industrial
and domestic users over the entire supply area.
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.

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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.
Through the 1970s to the 1990s, growing demand led to increasing numbers of
power stations.
In some areas, 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,
communication, lighting, and entertainment, and consumers demanded ever
higher levels of reliability.

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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.
They resulted in high costs to the electricity companies, which were passed on
in the form of increased tariffs.
Since the early 21st century, opportunities to take advantage of improvements
in electronic communication technology to resolve the limitations and costs of
the electrical grid have become apparent.

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Technological limitations on metering no longer force peak power prices to be
averaged out and passed on to all consumers equally.
In parallel, growing concerns over environmental damage from fossil-fired
power stations has led to a desire to use large amounts of renewable energy.
Dominant forms such as wind power and solar power are highly variable, and
so the need for more sophisticated control systems became apparent, to
facilitate the connection of sources to the otherwise highly controllable grid.
In the 21st century, some developing countries like China, India, and Brazil
were seen as pioneers of smart grid deployment.

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SMART GRID
Definition by National Institute of Standards and Technology (NIST), USA:
A modernized grid that enables bidirectional flows of energy and uses two-way
communication and control capabilities that will lead to an array of new
functionalities and applications.
Definition by IEEE:
Smart grid is a large ‘System of Systems’, where each functional domain
consists of three layers: (i) the power and energy layer, (ii) the communication
layer, and (iii) the IT/computer layer.
Layers (ii) and (iii) above are the enabling infrastructure that makes the
existing power and energy infrastructure ‘smarter’.

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Centralized bulk generation, Heavy reliance on coal and oil, Limited automation,
Limited situational awareness, Consumers lack data to manage energy usage.

Traditional Grid

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 Smart Grid

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 Preferred Characteristics Traditional Grid Smart Grid
Active Consumer Consumers are uninformed and Informed, involved consumers —
Participation do not participate demand response and
distributed energy resources
Accommodation of all Dominated by central generation — many Many distributed energy
generation and storage obstacles exist for distributed energy resources with plug - and - play
options resources interconnection convenience focus on
Renewables
New products, services, Limited, poorly integrated Mature, well - integrated
and markets wholesale markets; limited wholesale markets; growth of
opportunities for consumers new electricity markets for
consumers
Provision of power Focus on outages — slow Power quality a priority with a
quality for the digital response to power quality variety of quality/price
economy issues options — rapid resolution of
issues

Comparison of Traditional Grid vs Smart Grid

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Preferred Characteristics Traditional Grid Smart Grid
Optimization of assets Little integration of operational data with Greatly expanded data acquisition of
and operates efficiently asset management— business grid parameters; focus on prevention,
process silos minimizing impact to consumers
Anticipating responses Responds to prevent further damage; Automatically detects and
to system disturbances focus on protecting assets following a responds to problems; focus on
(self- healing) fault prevention, minimizing impact
to consumers
Resiliency against cyber Vulnerable to malicious acts of Resilient to cyber attack and
attack and natural terror and natural disasters; natural disasters; rapid
disasters slow response restoration capabilities

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Need for Smart Grid
1. Improves the reliability of utility grid by reducing power quality disturbances
and reducing consequences and probability of widespread blackouts.
2. Allows for the advancements and efficiencies yet to be envisioned.
3. Reduces electricity prices paid by consumers by exerting downward pressure.
4. Better affordability is maintained for energy consumers.
5. Greater choice of supply and information is provided to consumer.
6. Integrates renewable/nonconventional DERs.
7. Improves security by reducing the consequences and probability of natural
disasters and manmade attacks.

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8. Facilitates higher penetration of alternating power generation sources.
9. Reduces loss of life and injuries from utility grid related events, thereby
reduces safety issues.
10. Integrates electrical vehicles as generating and storing devices, thereby
revolutionize the transportation sector.
11. Improves the overall efficiency by reducing loses and wastage of energy.
12. Smart Grid reduces environmental pollution by reducing emission of green
house gases and carbon particulates and provides cleaner power by
promoting deployment of more renewable DERs.

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Opportunities of Smart Grid
(1)Upgrading and expanding infrastructure to improve interconnectivity and
communications.
(2) Build up smart tools and technologies to exploit DR, demand load control
and energy efficiency.
(3) Helps in educating the consumers.
(4) Creating models to promote Smart Grid investment and inform regulatory
frameworks.
(5) Build up infrastructure to guarantee cyber security and resilience.
(6) Regulations in communication, price and cyber security.

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The local opportunities of Smart Grid includes, 
(1) Integrated communications
(i) Data acquisition, protection and control and allow consumers to interact with
intelligent electronic devices in an integrated system. 
(ii) To connect components to open architecture for real-time information and
control, information and data exchange to optimize system reliability, asset
utilization and security.
(iii) Areas for improvement include: Substation automation (SA), DR, feeder
automation (FA), SCADA, EMSs, wireless mesh networks and other technologies,
power-line carrier communications and fiber optics.

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(2) Sensing and measurement
(i) Support acquiring data to evaluate the health and integrity of the grid and support
automatic meter reading, elimination of billing estimates and prevent energy theft.
(ii) To support faster and more accurate responses.
(3) Advanced components
(i) Used to determine the electrical behavior of the grid and can be applied in either
standalone applications or connected together to create complex systems such as
Microgrids.
(ii) To apply the latest research in superconductivity, storage, power electronics, and
diagnostics.
(iii) The success, availability and affordability of these components will be based on
fundamental research and development (R&D) gains in power electronics,
superconductivity, materials, chemistry, and microelectronics. 

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(4) Advanced control methods
(i) To monitor essential components that enable rapid diagnostics and precise
solutions appropriate for any event.
(ii) Using the devices and algorithms that will analyze, diagnose, and predict
grid conditions and autonomously take appropriate corrective actions to
eliminate, mitigate, and prevent outages and power quality disturbances.
(5) Improved interfaces and decision support.
Convert complex power-system data into information that can be easily
understood by grid operators. 

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Regional and national opportunities of Smart Grid includes,
(1) Provide higher quality power that will save money lost on outages.
(2) Accommodate all generation and energy storage options.
(3) Motivate consumers to actively participate in grid operations.
(4) Be self-healing.
(5) Resist attack.
Global opportunities of Smart Grid are,
(1) Run the grid more efficiently.
(2) Enable higher penetration of intermittent power generation’s sources.
(3) Enable electricity markets to flourish.

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Challenges of Smart Grid 
(1) Strengthening the utility grid: It must be ensured that the utility grid has
sufficient transmission capacity to accommodate more energy resources,
especially renewable resources.
(2) Moving offshore: Most effective and efficient connections for offshore wind
farms and for other marine technologies (tidal and wave energy) which is
stochastic in nature, must be developed.
(3) Developing decentralized architectures: Decentralized architectures must be
developed to enable harmonious operation of small-scale electricity supply
systems with the total system.

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(4) Communications: Developing a communication infrastructure which allows
the operation and trade of potentially millions parties in a single market.
(5) Active demand side: Enabling all consumers to play an active role in the
operation of the system, with or without their own generation. 
(6) Integrating intermittent generation: Finding the best ways for integrating
intermittent generation like residential micro-generation.
(7) Enhanced intelligence of generations: The problems associated with
enhanced intelligence generation schemes (like FREEDM) system must be
resolved to revolutionize the utility grid.

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(8) Advanced power system monitoring, protection and control: Advanced
measurement schemes like synchronized phasor measurements must be common
to achieve synchronization by same time. 
(9) Capturing the benefits of DG and storage: Advanced technologies must be
developed to capture DERs more effectively. Hybrid energy system, such as,
SPV-Wind, SPV-fuel cells etc., are necessary to maintain reliability and to power
remote areas.
(10) Preparing for electrical vehicles: Electrical vehicles are mostly emphasized
due to their mobile and highly dispersed character and possible massive
employment in the next years, which would yield a key challenge. 

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