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The key additions to a smart grid compared to the traditional grid include:
Peak Leveling
The two-way smart grid communication technologies allow control over
consumption by both the user and service provider. Smart grids have the
potential to gain central control over many remote devices such as the
consumers washing machines, heaters, factory machinery and others, and
automatically turn such appliances on and off during non-peak hours. Peak
leveling makes possible optimized power flow, reducing waste and
The primary benefit of distributed automation smart grids is considerable allround savings for all the stakeholders. The benefits result from the following
ways:
Peak leveling enables the load curve to level itself, and this helps
transmission companies by improving load efficiency and reducing the
spinning reserves electric utilities keep on stand-by.
Power generation companies save through higher asset utilization made
possible by peak leveling. This allows provision of additional services with the
same installed capacity, savings from not having to install additional capacity
to meet fresh demand, and re-deployment of existing assets to perform new
functions such as backup, on-site generation, or other ancillary services.
Consumers save on energy charges. Smart grid makes possible differential
tariffs based on timings, and utility companies could pass on a portion of
benefits of peak power savings.
Peak leveling and differential billing provides consumers with better
information about power consumption and provides them with various
alternatives and choices.
Democratization of Electricity
Smart grid has the potential to revolutionize the energy industry by creating
new energy markets that make it possible for everybody from individual
homes to big businesses to sell electricity. The two-way interface of smart
grid allows businesses and homes that generate wind and solar energy to
release the surplus electricity from such sources to the central gird.
Improved reliability, better power quality, reduced costs, and choice for the
customer
Improved use of existing grid assets to reduce grid congestion and
bottlenecks
Less reliance on auxiliary power plants. For instance, the electricity utility
could draw power from thousands of solar instillations rather than operate an
auxiliary power plant on a hot day with increased usage of air conditioners
Increased reliance on wind and solar energy sources leading to reduced
carbon emissions and less pollution
Greater resource flexibility, making the grid more robust to withstand
accidents or attacks. For instance, a 5 megawatt wind turbine abruptly going
down would not matter much, while a sudden shutdown of a 1,000 megawatt
coal power plant would translate to a major outrage
Considerably less wastage. The availability of electricity from multiple
locations allow operation of only as much resources as required
Self healing, or the ability of the smart grid to automatically detect and
rectify disruptions and withstand accidents is an important component of
smart grid curriculum. Smart grids improve the operational efficiency of
power utility companies and brings forth many other benefits.
Self-Healing
Smart Grid Curriculum
Responds to cloud blocking the sun and reducing the amount of solar power
or a very hot day by triggering peak leveling mechanisms or an auxiliary
power plant
Deal with temporary shutdown of a distribution line owing to failure of a
transformer by automatically looping energy through an alternate line
The self-healing capability of smart grids could save the estimated $100
billion lost each year due to outages and power quality issues.
LaMonica, Martin. Will anyone pay for the 'smart' power grid?
Motorola Case Study. Smoothing the Rocky Road to Distribution Automation