FORUMUL REGIONAL AL ENERGIEI FOREN 2008

Neptun, 15-19 iunie 2008

Cod lucrare: s3-45-en

SMART POWER NETWORKS

Mircea EREMIA, Lucian TOMA, Constantin BULAC and Ion TRITIU
University Politehnica of Bucharest
Abstract: This paper presents a systemic analysis on the European Union vision, and USA particularly, regarding the
electrical networks evolution towards a new level of performance due, on one hand, to the increasing penetration of
renewable energy sources and environment protection requirements and, on the other hand, to the necessity of taking
appropriate actions for increasing the power system security and improve the power quality at consumers. This vision,
settled-up within the Technological Platform for Electricity Networks of the Future SmartGrids*) of the European
Commission, focus on transforming the actual networks in intelligent electrical networks capable of meeting the
requirements settled-up by Lisbon Strategy for sustainable development. At the same time, the paper presents the key
elements that should be reached for developing intelligent electrical networks. This paper is intended also to challenge
the decision-making factors of the Romanian energy sector.
Keywords: intelligent electrical networks, active loads, distributed generation, security, power quality.

I. Introduction
The power systems are nowadays undergone new challenges following the technological
advance in the field of renewable energy sources, telecommunication systems, power electronics,
etc. Developing new but clean energy sources have the roots in the energy crisis, in the climatic
changes and in the price incentives from the power market. According to the International Energy
Agency (IEA), European electricity consumption is projected to increase at an average annual rate
of 1.4% up to 2030 and the share of renewables in Europes electricity generation will double, from
13% now to 26% in 2030. [1]. However, it is not negligible the increasing rhythm of electrical
energy consumption, which requires an increased availability of the power sources.
To answer the new challenges that power systems are facing, a new concept has been
launched, referred to as Intelligent Electrical Networks SmartGrids. This concept was launched in
2005 within the European Technological Platform for Electricity Networks of the Future, of the 7th
Frame Project of the European Union. The purpose of this platform is setting-up and promoting a
vision on developing the European electrical networks in the near future. Furthermore, this vision
constitutes the fundaments for research, development and demonstrative programs with European
and local financing. The aim is that the evolution towards the networks of the future be made by an
integrated and innovatory approach from technical, commercial and regulatory point of view.

II. Lisbon Strategy

The Lisbon Strategy for sustainable development focus on 3 aspects (fig. 1) [1]:
(i) The European Internal Market for electrical energy was created to increase the
competitiveness and economical efficiency. Associated with an efficient regulatory
framework, it is expected that the internal electricity market will provide benefits to the
European citizens, by offering them the opportunity to choose from a wide range of services
and a small electricity price. To reach these targets, it is required to increase the network
flexibility by creating alternative feeding paths to the consumers. At the same time, the
electricity market should offer to the consumer opportunities by creating flexible products
and services, predictable prices and low price volatility.
*)

The authors are members of the Mirror Group or Working Groups of the Technological Platform for Electricity
Networks of the Future SmartGrids of the European Commission.
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(ii) Security and Quality of Supply. The modern society, by its high level technology, depends
critically on a high level of power quality. The continuity in electrical energy supply and
keeping the frequency at normal values are today two challenging objective for the systems
operators due to the availability, often limited, of the generation sources for the powers
balancing action. Furthermore, the aged network infrastructure affects also the continuity in
electrical energy supply. These impediments draw the attention on the electrical networks,
which require redesigning so as to face the new challenges, by getting flexible
configurations and equipped with advanced technologies.
(iii) The environment. In line with the Kyoto Protocol, the European Commission settled-up
very restrictive objectives regarding the greenhouse gases (CO2, SO2, NOx, etc.) emissions.
To the problems related to the availability of the primary energy resources, European
Commission decisions regarding the target quota for electrical energy generation from
renewable energy sources are also added. Sustained researched are therefore necessary to
develop clean and cost effective technologies. On the other hand, evaluation of environment
impact on the powers flows in the European interconnected network should be made; also,
the visual impact of the electrical equipments and the terrain usage should not be neglected.
Primary energy
availability

Liberalization
Innovation and
competitiveness

Reliability and
quality

Low prices and

efficiency

Nature and
wildlife
preservation

Capacity

Climate
change

Pollution

Fig. 1. Objectives of Lisbon Strategy for sustainable developments [3].

III. The concept of intelligent electrical networks

Implications of distributed generation
Developing distributed generation in the classical distribution networks provides multiple
benefits for the network users that is: partial reservation in generation sources and therefore
increasing the continuity degree in electrical energy supply of consumers, optimization possibility
of the electrical energy costs, encouraging the development of renewable or low greenhouses
emission energy sources, improving the voltage level, etc. At the same time, however, the problems
caused by the introduction of new generation sources in the distribution networks should not be
neglected. The electrical networks were designed for power transfer in one direction that is from the
transmission network towards the final consumers connected to the distribution network. By
increasing the number of dispersed generators in the distribution network, the power flow could
become bi-directional, requiring more complex protection systems. On the other hand, integrating a
large number of distributed generators in the distribution and transmission networks arise frequency
control problems, and sometimes voltage problems.
It is, therefore, required the adaptation of the electrical networks for operation with power
injections from the distribution network to the transmission one without leading to operation
restrictions. Furthermore, new technical guides and communication protocols to allow adaptation of
the electrical network to face the new challenges are necessary. At the same time, for efficient
operation of the electrical networks developing information, computing and telecommunications
systems are required to contribute to technical and economical management efficiency of the
network for improving the supply service of electrical energy to consumers.
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Developing the wind sources proves to be the most facile, but also less hazardous, way of
sustaining of substituting the classical power plants running on fossil fuels. However, due to the
wind intermittency, the wind sources cause additional problems within the electrical networks,
especially with respect to powers balancing. To overcome these problems, recent studies have
demonstrated that the wind farms must be mixed with pumped-storage power plants that allow an
easy balancing between generation and load. The balancing action can be also performed by means
of demand side management. Such a system is based on developing strategies for modularization of
the local load and incorporating automatic systems for load control based on electronic
measurements. These automatic systems become vital for distribution companies since the power
installed in the distributed generators connected to the network is continuously increasing.
In concordance with the balancing action, in the last years, the concept of energy storage has
been visibly developed. While the compressed air energy systems in underground caverns did not
yet shown their efficiency, the development of the hydro sources is the best storage solution. Also,
it is worth mentioning the technological evolution of flywheels (with recently announced maximum
limit of 20 MW) and batteries energy storage systems, which can provide powers of tens of MW.
Developing these technologies was possible also due to the advance of power electronics.
SmartGrids in the UE vision
The idea of intelligent or active networks is a consequence of the technological
evolution that will provide increased flexibility to the electrical network and will increase the power
supply service of the consumers.
To fulfill the objectives of the Lisbon Strategy, the electrical networks of the future should
meet the following requirements [3]:
a) Flexibility. The electrical networks should present an architecture that allows maintaining
the continuity in power supply of consumers in any operating conditions. One way of
increasing the network flexibility is by increasing their interoperability provided by ensuring
compatible environment for implementation of power markets, by efficient network
congestions management, internal and on interconnections lines, by increasing the long
distance transmission capacity and penetration of renewable energy sources.
b) Accessibility. The electrical networks should allow free access of all users, both consumers
and producers. In particular, the electrical networks must allow the connection of any
renewable energy source without restrictions, even that these ones present specific operation
inadvertencies (intermittency of the generated power, etc.).
c) Security. Operation security, for both producers and consumers, is a perquisite of the
modern power systems. Furthermore, the requirements of a digital society are fulfilled by
ensuring appropriate power quality. The quality of supply is referred also to the operating
conditions of the electrical network. The large number of incidents occurred in the last
years, in several power systems, that led to extended blackouts, is a real proof of necessity
for improving the transfer capacity of the network by increasing the reliability and the rated
power of the lines and transformers, as well as by ensuring appropriate reserves in power
sources, which includes also storage systems. Besides that, renewing and innovating the
electrical networks is required by means of efficient asset management, by increasing the
automation degree with the aim to improve the quality of services, by using remote control
systems, etc.
d) Economic. The development of the electrical network infrastructure must be encouraged by
innovation, efficient energy management, increased competitiveness and technical
legislation, since any unjustified investment will reflect in the energy price at the final
consumers.
In order to reach these objectives, the electrical networks should become more active,
facilitating the integration of the new technologies. In the future, the power systems is expected to
be shared between central generation and distributed generation. The distributed generators are
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being aggregated and controlled so as to form microgrids or virtual power plants, which will
facilitate their integration in the physical system and on the power market.

Fig. 2. Incorporating the distributed generators in the classical power systems [3].

Developing new energy sources and direct current networks enabled new opportunities for
supplying with electrical energy isolated areas, such as islands or mountain areas, inaccessible for
classical networks.
In order to take benefit of the distributed generation advantages (including renewable energy
sources) a system oriented approach is required. The distributed generators will not be the only
generation sources that will feed the consumers and will be integrated in the system. Thereby,
medium voltage and low voltage electrical networks will become active, having the capacity of
supplying ancillary services.
Referring to the distribution network level, which is traditionally oriented on the consumers
supply service, new practices emerge, such as network dispatch, real time network calculations,
etc., initially found in the operational activities at the transmission network level. At the
transmission network level, developing new strategies and some operational practices to allow
decentralized operation but with centralized control are required.
EPRI vision on SmartGrids
EPRI SUA performs researches for more then 10 years for developing an intelligent
network project, which is based on several general concepts so that to satisfy the interest of all
involved actors: utilities, consumers, producers, environment involved entities, etc. To become
intelligent, the electrical network should include also energy management systems. The control
platform of an intelligent electrical network must allow the system operator to take actions for
powers balancing, efficiently from economical point of view, using also storage systems for pick
hours of the load curve. The economical efficiency of these actions is based on calculations for
optimization of generation sources and voluntarily load control, while performing appropriate
congestions management actions [5].
In the EPRI visions, the intelligent electrical networks consist of two integrated structures:
power transfer infrastructure (electrical network) and information transfer infrastructure (fig. 3) [5].

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Fig. 3. Developing the intelligent networks.

The enterprise management architecture uses intelligent agents for management relational
actions; intelligent agents are used for interaction with the systems manager, the agents providing
information to the managers such as alerts and electronic measurements. Following the
management relational actions, the manager performs decisional actions on each element of the
network or on the overall network. Typically, enterprise management functions are performed on
the following managed elements:
network devices such as routers, switches, hubs and communication links;
computing resources such as substation automation systems and data concentrators,
servers such as Market Transaction Servers;
software services such as SCADA, EMS or GIS components, as well as database
management systems;
service and business functions such as RTP customer pricing service, security and
operational policy servers;
storage area networks.
The International Organization for Standardization (ISO) has defined network management
functions for fault, configuration, accounting, performance and security management.

IV. Deployment strategy of European electricity networks of the future

A strategic plan was formulated within the Technological Platform SmartGrids as a vision
on the deployment strategy of the actual electrical networks towards intelligent electrical networks,
that will allow reaching the objectives settled-up by the European Commission for the period 20082050 regarding energy policy security and sustainability related targets. This strategy plan is
oriented on two deployment paths, one centered on the electrical network and one centered on the
network users [4].

IV.1. Electrical network centered approach

IV.1.1. Optimizing grid operation and usage
In order to adapt for the new requirements regarding electrical energy price increase and
developing the power market, which are being real challenges for their operating conditions, the
electrical networks should become more active and more intelligent by:
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Wide Area Monitoring (WAM) and Wide Area Control (WAC) systems with regulation
of static VAR compensators in closed loop, to maximize available capacity while
reducing the likelihood of major system disturbances;
real time control of power flows and nodal voltages by means of advanced devices of
FACTS type, based on power electronics;
real-time power system security assessment;
implementation of distributed state estimators for large scale power systems;
advanced software tools for power system operation analysis, for both steady state and
stability, also in the presence of distributed generation and active consumers;
constructing simulators for power system operation analysis, for both steady state and
dynamic (transients) operation, with modeling of renewable energy sources and nonlinear devices;
efficient strategies for system recovery and predictive plans against major blackouts,
respectively;
efficient mechanisms, both from technical and economical point of view, for real time
active power balancing;
for maintaining a high training level of the human resources, continuous training of the
system operators is required using also training simulators, accurately modeling the real
systems.

IV.1.2. Optimizing grid infrastructure

Because of the public opposition, constructing new infrastructures will be limited, while
replacing the aged infrastructure should be performed by innovation in order to optimize the
available capacity. In this regard, the following aspects should be considered:
expanding the EU grids (notably transmission) with new infrastructure will especially
depend on shortening of permission procedures for construction;
refurbishment / enforcement of the existing high voltage lines;
new asset management and grid planning methods for transmission and distribution grids
relying on scenarios and risk analysis;
reliable and consistent data must be available (collected and updated on a regular basis)
for asset management and planning.
IV.1.3. Integrating large scale renewable energy sources
Under the global worming and the increasingly oil price (over 6 times in the last 20 years)
conditions, it is therefore the time to sustain alternative energy sources, for environment protection
on one hand, and for increasing the energy independency on the other hand. For this regard, the
European strategy for developing the electrical networks of the future SmartGrids, includes
related objectives, that is:
adapting the transmission and distribution networks to allow integration of renewable
energy sources and cogeneration;
developing new advanced forecast methods and software tools for wind speed and active
power generated from wind sources;
developing de energy management strategies to facilitate increased penetration of
distributed generation and storage systems;
adopting market mechanisms to encourage introducing the renewable energy sources.
IV.1.4. Information and telecommunication technology
Since the communication systems represents key elements of the technological advance of
the electrical networks, attention should paid to the following objectives:

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Neptun, 15-19 iunie 2008

technologies and standards for creating the interface with the network users, to facilitate
the consumers becoming active for participating to the power market, to facilitate the
integration of virtual power plants, etc.;
communication protocols for all relational levels;
information transfer systems and media, essential objective for synchronization of actions
taken within the electrical networks;
automation systems in the distribution networks, advanced metering systems and remote
meter reading.

IV.2. Electrical network users centered approach

IV.2.1. Active distribution networks
This approach assumes enabling some functionality and a range of new customer oriented
services in distribution networks in general and in particular, in the area of grid connection, access,
and management, where the grid users are directly visible to the grid and the grid is in turn felt
and visible by the users. Whereas the concept of SmartGrids addresses the transmission and
distribution networks, a special emphasis is on the distribution networks, since the focus is on the
small(er) users, both producers and consumers.
Besides the fact that the distribution networks already requires enhanced network and
management to cope with the distributed generation, power quality requirements, etc., in the future,
it is anticipated a massive deployment of dispersed (located far from consumers) and distributed
(located close to the consumers), with expected provision of ancillary services also from the
distribution networks. Under these conditions, technologies and solutions of an active network to
enable deployment and control of industrial and residential level dispersed generation and demand
side response, with active involvement of electrical users, will become indispensable.
From this perspective, the following key elements are emphasized:
Focus in general on grid condition monitoring and in particular on alarm & fault
management, preventive & remedial actions and intelligent applications as the system
operators decision support;
Implementing a new delegated control level, for grid control, to allow grid operators
to cope adequately with the increased complexity of network management with
distributed and dispersed generation; at the delegated control level, special attention
should be paid to the conditions monitoring in the context of the first objective regarding
optimization grid operation and usage; the delegated control level can be used for:
local dispatch and management of distributed generation in combination with
demand side response, i.e. support for the virtual power plants;
implementation of active control functions (e.g. remote assisted network reconfiguration, fault management, self-healing procedures, etc.) to guarantee the
defined security and power quality;
adaptation of the implemented functionalities by continuous on-line measurements,
on the actual technical & market constraints and foreseen / unforeseen events;
effective integration of storage and demand side response capacity.
The active distribution network functionalities shall encompass also new software tools /
solutions based on dynamic and multi-objective optimization and integrated modeling of
uncertainties, for planning / operational planning, including:
tools addressing optimal sizing, sitting and structure of microgrids in distribution
networks;
software tools for optimal reconfiguration and restoration of power supply in active
distribution networks;
Transport is likely to have a major impact on the requirements of SmartGrids, especially
at the residential and industrial level. In order to enable the electric and hybrid

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transportation vehicles of the future, network design will need to allow for mobile
generation and load possibilities, their management and operation.
IV.2.2. Power market and energy efficiency
As regards the network users, the benefits gained from using electrical energy should to be
maximized, requiring therefore costs optimization. The following objectives can be identified:
creating new power market participants, by applying the concepts of microgrid and
virtual power plant to allow increased energy efficiency, improved load management
during pick hours, more efficient use of the distribution networks; these objectives
enhance the activity at the local dispatching centers level of the distribution networks;
creating active consumers, by equipping the classical ones, willing to reduced the load
when required by the distribution network operator, with demand side management and
systems automatic meter reading (AMR);
implementing transparent and flexible market mechanisms, to allow efficient use of
generation sources and reducing the electrical energy price.

V. The concept of perfect power systems

In line with the above philosophy of the intelligent electrical networks, Galvin Electricity
has launched the idea of perfect power systems [2]. According to Bob Galvin the perfect energy
systems will ensure the absolute and universal availability of energy in the quantity and quality
necessary to meet every consumers need. The idea of developing perfect power systems relies on
increasing the independency, flexibility and intelligence for optimizing the energy use by means of
a local management. In the Galvin Electricity vision, the way of developing perfect configurations
of the power systems starts from small size structures and goes towards the global integration. The
following integration levels are therefore defined (fig. 4):
Portable power level. This level is the first integration level and refers to portability of
devices or electrical appliances taking advantage of nano- and bio-technologies, sensors
and advanced materials. These devices incorporate local micro-storage and microgeneration, referring to the digital technology. The importance of portability is given by
the fact that these ones provide more moving flexibility for humans.
Building integrated (localized) power. The building level approaching system is the next
integration level after the portable one and refers to the distribution infrastructure of a
commercial building, a campus of buildings, a residential neighborhood or a factory. This
integration level presents the advantage that the energy availability can be optimized by
using a wide range of generation sources and also by creating a multi-generation
infrastructure (electrical energy, heat and cooling). The energy management system, by
optimizing the use of generation sources, provides major benefits as regards the use of
renewable energy sources. Also, integrating several energy sources requires
implementation of advanced and cheap sensors that will provide information related to
the network operation, the generation and consumptions, but also communication
systems.
Distributed power. The distributed power systems involve interconnection of different
localized systems to take advantage of increased availability in localized power
generation sources and storage. This concept has been developed in the last year by the
so-called microgrids. On the other hand, at this level is developed the concept of
distributed generation within which micro-turbines and fuel-cells are the ideal candidates
for cogeneration, and the storage systems provides increased flexibility for using the
renewable energy sources of larger power levels. The great disadvantage could be the
higher costs of the storage systems.
Fully integrated power. This is the last integration level and is similar to the classical
large interconnected system.
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ow

il d
Bu

ing

Portable
power
systems

er

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Integrated

e
tributed Pow
r
Fu
we
lly In
o
P
tegrated
Di s

Fig. 4. Level approached power systems [2].

VI. Conclusions
Whether, few years ago, the focus was on the electrical network, following the changes
taking place at the distribution network level, a tendency for user-oriented approach is observed.
This idea goes along with concept of intelligent electrical networks, which is meant to improve the
system security and power quality as well as to facilitate the connection to the network of the
renewable energy sources.
Beyond the economical effort necessary for refurbishment and modernization of the
electrical network in concordance with the vision launched at European level, it is the time to give a
chance to the renewable energy sources and storage systems, which can represent the solution for
the actual problems regarding the price of electrical energy originated from fossil resources (oil and
gas), taking into consideration that it will continue to aggravate.
Taking into account that the trend observed at international level for replacing the fuels from
oil origins, the innovation of the transport systems is also observed, with special attention to
vehicles, by supplying them with electrical energy. However, the development of the transport
systems is conditioned by appropriate adaptation of the electrical networks.
Should not be neglected that the way towards the technological progress is conditioned by
sustaining the education. On this line, adaptation of education to the new requirements by up-dating
the curricula with the vision on the intelligent networks becomes critical. In this context,
harmonization of the research themes launched within the national programs with the objectives
settled-up by the European strategy.

VII. References
[1] www.smartgrids.eu
[2] www.galvinelectricity.org
[3] European Commission Vision and Strategy for Europes Electricity Networks of the Future, European
Technological Platform SmartGrids, 2006.
[4] European Commission Strategic Deployment Document for Europes Electricity Networks of the
Future, European Technological Platform SmartGrids, 2008.
[5] EPRI The Integrated Energy and Communication Systems Architecture, Vol. IV, Technical Analysis,
Electric Power Research Institute, 2004.