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Smart Grid Concept and Characteristics


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Fig ure 1 - Smart g rid - e vo lutio nary c harac te r o f s mart g rid s .

smart grid is an electricity network that uses digital and other advanced technologies to monitor and manage the transport of electricity f rom all generation sources to meet the varying electricity demands of end-users. Smart grids co-ordinate the needs and capabilities of all generators, grid operators, end-users and electricity market stakeholders to operate all parts of the system as ef f iciently as possible, minimising costs and environmental impacts while maximising system reliability, resilience and stability. For the purposes of this roadmap, smart grids include electricity networks (transmission and distribution systems) and interf aces with generation, storage and end-users. While many regions have already begun to smarten their electricity system, all regions will require signif icant additional investment and planning to achieve a smarter grid. Smart grids are an evolving set of technologies that will be deployed at dif f erent rates in a variety of settings around the world, depending on local commercial attractiveness, compatibility with existing technologies, regulatory developments and investment f rameworks. Smart grid concepts can be applied to a range of commodity inf rastructures, including water, gas, electricity and hydrogen.

Rationale f or smart grid technology


T he worlds electricity systems f ace a number of challenges, including ageing inf rastructure, continued growth in demand, the integration of increasing numbers of variable renewable energy sources and electric vehicles, the need to improve the security of supply and the need to lower carbon emissions. Smart grid technologies of f er ways not just to meet these challenges but also to develop a cleaner energy supply that is more energy ef f icient, more af f ordable and more sustainable.

T hese challenges must also be addressed with regard to each regions unique technical, f inancial and commercial regulatory environment. Given the highly regulated nature of the electricity system, proponents of smart grids must ensure that they engage with all stakeholders, including equipment manuf acturers, system operators, consumer advocates and consumers, to develop tailored technical, f inancial and regulatory solutions that enable the potential of smart grids (Figure 2).

Smart Grid Characteristics


The main characteristics of smart grids are explained below:
Ena ble s inf o rm e d pa rt icipa t io n by cus t o m e rs

Consumers help balance supply and demand, and ensure reliability by modif ying the way they use and purchase electricity. T hese modif ications come as a result of consumers having choices that motivate dif f erent purchasing patterns and behaviour. T hese choices involve new technologies, new inf ormation about their electricity use, and new f orms of electricity pricing and incentives.
Acco m m o da t e s a ll ge ne ra t io n a nd s t o ra ge o pt io ns

A smart grid accommodates not only large, centralised power plants, but also the growing array of customer-sited distributed energy resources. Integration of these resources including renewables, smallscale combined heat and power, and energy storage will increase rapidly all along the value chain, f rom suppliers to marketers to customers.
Ena ble s ne w pro duct s , s e rvice s a nd m a rke t

Fig ure 2 - Smart g rid s c an link e le c tric ity s ys te m s take ho ld e r o b je c tive s

Correctly designed and operated markets ef f iciently create an opportunity f or consumers to choose among competing services. Some of the independent grid variables that must be explicitly managed are energy, capacity, location, time, rate of change and quality. Markets can play a major role in the management of these variables. Regulators, owners/operators and consumers need the f lexibility to modif y the rules of business to suit operating and market conditions
P ro vide s t he po we r qua lit y f o r t he ra nge o f ne e ds

Not all commercial enterprises, and certainly not all residential customers, need the same quality of power. A smart grid supplies varying grades (and prices) of power. T he cost of premium power-quality f eatures can be included in the electrical service contract. Advanced control methods monitor essential components, enabling rapid diagnosis and solutions to events that impact power quality, such as lightning, switching surges, line f aults and harmonic sources.
O pt im is e s a s s e t ut ilis a t io n a nd o pe ra t ing e f f icie ncy

A smart grid applies the latest technologies to optimise the use of its assets. For example, optimised capacity can be attainable with dynamic ratings, which allow assets to be used at greater loads by continuously sensing and rating their capacities. Maintenance ef f iciency can be optimised with conditionbased maintenance, which signals the need f or equipment maintenance at precisely the right time. System-control devices can be adjusted to reduce losses and eliminate congestion. Operating ef f iciency increases when selecting the least-cost energy-delivery system available through these types of systemcontrol devices.
P ro vide s re s ilie ncy t o dis t urba nce s , a t t a cks a nd na t ura l dis a s t e rs

Resiliency ref ers to the ability of a system to react to unexpected events by isolating problematic elements while the rest of the system is restored to normal operation. T hese self -healing actions result in reduced interruption of service to consumers and help service providers better manage the delivery inf rastructure. Reference: Technology roadmap Smart grids by International Energy Agency

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