Smart grid Challenges, Issues and Solutions
C. P. Vineetha* and C.A. Babu
Electrical Engineering
Cochin University of Science and Technology
Kochi, Kerala, India
*vineethacp@gmail.com
Abstract—Great efforts are being made all over the world
towards the promotion of clean energy for environmental
protection and scheduling energy consumption pattern to meet its
increasing demand. The grid is to be modified or upgraded to
promote clean energy, control the energy consumption pattern
and bring security to grid. The smart grid will fulfil these
requirements. The developments in information and
communication technology support the smart grid vision. Sensor
and control technologies also support the up-gradation of existing
grid to smart grid. There are many challenges and issues in the
implementation of smart grid. This paper presents challenges
and issues in smart grid concept with solutions.
Index Terms— Smart grid, clean energy, standardization of
smart grid, smart meters, smart premises, distributed renewable
energy generation.
I. INTRODUCTION
Both developed and developing countries will play a major
role in the deployment and implementation of smart grid. Key
benefits of smart grid are uninterrupted power supply for all
households, reduced transmission and distribution loss, high
penetration of renewable energy sources, cyber secured
electrical grid, large scale energy storage, flexibility to
consumers to interact with electricity market, market based
electricity pricing and demand side management [1]-[2].
The main achievements in smart grid are country wise policy
and planning for smart grid implementation, implementation
of pilot projects, smart grid interoperability standards,
promotion of distributed renewable energy generation and
studies conducted on the cost effectiveness of smart grid
technologies [2]-[8]. Global Smart Grid Federation Report in
2012 reveals the progress of countries namely Australia,
Canada, Europe, Great Britain, Ireland, Japan, Korea and
United States.
II. LITERATURE SURVEY
The smart grid is an intelligent grid designed to handle the un-
forecasted load and distributed resources using information
and communication technology employing smart meters and
control system. It is a two port grid having real time market
participation and is a future power supply concept [9].
Reliable and economical power delivery, distributed
renewable energy generation, reduction of loss, energy
conservation, emission reduction and optimal utilization of
assets are also the benefits of smart grid [10]. Impacts of smart
grid will be felt in business value chain generation,
transmission and distribution, customer service, market and
original equipment manufacturing [11]. Smart grid promises
more efficient, secure and climate friendly power system [12].
Smart premises are nothing but modern buildings in which
two port power grid and two port communication networks
connected to obtain power according to consumer’s choice
and to interact with utilities to control load and obtain data. It
consists of a grid connected hybrid power system (HPS) to
produce electricity for its own use and excess energy to be
stored in a storage device to be used at peak hours to reduce
peak load demand [11]. In smart premises, there is a smart
controller to interconnect renewable energy sources (RES),
energy storage device, load and grid. Smart meters are also
installed in the smart premises which are two port meters that
can record energy consumption from grid, to grid and RES
separately. The smart grid can feed power into and from the
smart premises [13]. The smart grid is to be capable to
accommodate inter operability standards. Information and
communication network of smart grid is made secure from
cyber attack. The policy and frame work for the
implementation of smart grid is required for each country
considering their available electrical infrastructure and growth
rate of energy consumption. The worldly accepted standards
for communication and security of network are also to be
developed to make the smart grid as a global grid [14].
III. CHALLENGES AND ISSUES
The developed countries have reliable electrical infrastructure
and minimal growth rates. This allows them to concentrate on
standardization of grid, smart meter implementation
technology development and interoperability of grid tied
distributed renewable energy generation. But for developing
countries like India which have weak grid but growing energy
needs will have to strengthen and extend the electric network
along with implementation of information and communication
technology, and automation system in order to make the grid
smarter. Also they have to give concentration on uninterrupted
quality power supply to all households and reduction of
transmission and distribution (T&D) losses [7]. Some of the
challenges and issues which have to be addressed by both
developed and developing countries in the implementation of
smart grid are discussed here.
A. Technology Development
There are tremendous developments in information and
communication technology in the past decades. But for
making the grid smarter as per our imagination, it is necessary
to create a new communication infrastructure integrated or
wholly separate from the existing World Wide Web which is
resilient from attack and highly reliable. Advanced sensor
systems are to be developed to implement in the smart
premises and grid for phase measurement, to get consumer
consumption information and to control automatic circuit
breakers for minimum interruption and electrical appliances
for peak shaving. Advanced components like smart
appliances, smart meters, efficient energy storage devices,
high voltage DC transmission devices, flexible AC
transmission system (FACTS) devices etc are to be developed
and implemented. Advanced software development to control
and protect the grid and appliances of consumers is also the
key factor to be included in technological development [1].
The smart grid will have the capacity of taking action on its
own by advanced control methods and decision supports.
B. Quality Power to All Households
In developing countries like India the per-capita consumption
of electricity is only about one-fourth of world average. So a
vast growth of power system network is needed for the next
several years for supply energy to all households in a reliable
manner. The quality of supply is also to be ensured to fulfil
smart grid vision. The existing grid is to be renovated and
expanded to ensure quality supply to all households. Also
distributed renewable energy generation and option to save
money by shifting loads from peak load to off peak period are
to be promoted to reduce supply gap at peak hours and peak
energy cost [7].
C. Reduction of Transmission and Distribution Loss
The T&D loss are to be reduced to world standards. The main
factors which affect the T&D loss are technical losses due to
weak grid and financial losses like theft and collection
efficiency reduction. The utilities should have to address these
issues seriously.
D. Reneable Energy Integration
The fluctuating and unpredictable nature of renewable energy
sources like solar photovoltaic and wind mill require complex
technologies to integrate with existing grid. The harmonics
developed from the complex power electronics circuits used
for integration also make many troubles in the power system.
Other draw-back of renewable energy generation is
requirement of large land area. The reliability of protection
circuits to isolate it from the existing grid whenever required
is a great challenge in the integration of renewable energy
sources. Lack of technically skilled man power and wrong
selection of optimal place for implementation will also affect
the renewable energy integration [15]-[16].
E. Interoperability and Cyber Security
The interoperability and cyber security can be achieved only
through rigorous implementation of various standards. The
interoperability standards developed by National Institute of
Standards and Technology (NIST) in United States includes
advanced metering infrastructure (AMI) and smart grid end-
to-end security, revenue metering information model,
building automation, inter-control centre communications,
substation automation and protection, application level energy
management system interfaces, information security for power
system control operations, phasor measurement unit (PMU)
communications, physical and electrical interconnections
between utility and distributed generation (DG), security for
intelligent electronic devices (IEDs), NERC CIP 002-009
cyber security standards for the bulk power system, cyber
security standards and guidelines for federal information
systems and bulk power systems, price responsive and
reliability DR event information, home area network (HAN)
device communication, measurement, and control, HAN
device communications and information model and smart grid
Interoperability Panel (SGIP) catalogue of standards [17]. In
earlier stages each country has to develop their own standards
for the implementation of smart grid considering their existing
standards and for easy implementation. Internationally
accepted standards and security measures will have to be
implemented by all countries involved in the smart grid
implementation to make the power grid as a global grid [5].
F. Consumer Support
One of the main challenges in the smart grid implementation
is lack of consumer awareness about the issues in the power
sector. Consumer support is a must for implementation of
smart grid to reduce peak load consumption and promote
distributed renewable energy generation. The smart grid
implementation will improve quality and reliability of power
supply. It assures user friendly and transparent interface for
consumers with utilities, increased choice for consumers
including green power and option to save money by shifting
loads from peak periods to off-peak periods. But the
consumers should be aware of new technologies and support
the utilities to get the benefits of smart grid both for individual
and nation [7].
IV. SOLUTIONS
The implementation of smart grid is a long process since it
requires mass technological and financial investment. Then it
should be implemented in a phased manner. Each country
should have to propose a policy for implementing smart grid
considering existing infrastructure and growth rate. There are
many utilities with diverse needs, regulatory environments,
energy resources and legacy systems in a country. It is thus
unlikely that a single solution will emerge as appropriate, cost
effective and useful for all electric utilities and consumers [5].
The challenges and issues described in this paper are common
for all utilities even though the priority may be different. Some
solutions to accommodate these are proposed here.
A. Technology Development
The government of each country should have to provide
technological support to utilities and industries for
implementing advanced information and communication
technology including sensor and control technologies by the
support of educational institutions and researchers. The
government may acquire the same from other countries by
bilateral agreement. The utilities, industrialists and
government in a county should be worked as a union to
achieve the technology development for the implementation of
smart grid. The government should ensure that the existing
technologies will be available to all easily. The countries also
act as a union to support the development. Then only the
concept of global grid will be enlightened.
B. Quality Power to All Households
The developed countries may ensure this. But for developing
countries require large investment for the development of grid.
The government should give prime priority for the solution of
this issue with the support of world organisations.
C. Reduce Transmission and Distribution Loss
The T&D losses are to be reduced for obtaining financial
support from world organisations for infrastructure
developments to ensure quality power to all households. Main
reasons for the loss in distribution sector are theft and the loss
due to weak grid. Theft can be reduced if the consumers are
made aware about the benefits through Medias and social
network sites. Infrastructure development of implementing
energy meters in every bus for monitoring the power system
will also help the authorities to detect theft. The employees in
the power sector will have to play a significant role in the
reduction of T&D loss.
D. Reneable Energy Integration
The evolution in the power electronics to handle high power
by fast semiconductor switching using IGBTs plays a major
role in integration of renewable energy sources. This power
electronics circuits may cause harmonics in the power system.
The FACTs devices like static synchronous compensator
(STATCOM), static series synchronous compensator (SSSC)
and unified power flow controller (UPFC) will help to
improve the stability and reliability of the grid which has large
amount of renewable energy penetration. The filter circuits
provided with these systems will mitigate the harmonics
injected into the grid due to power electronics circuits. Real-
time computer controllers which can implement advanced and
complex algorithms also help to extract maximum power from
renewable energy sources and reduce fluctuation in the
renewable energy generation. It also protects the storage
devices like battery from over charging. This will enhance the
life of battery. It is more economical and grid friendly if the
fluctuated power generated by the renewable energy sources is
utilised for irrigation purposes. The fluctuation in renewable
energy generation can also be reduced by distributed
renewable energy generation from a larger geographical area
in small power plant instead of large power plant
concentrating in one area. The output of solar photovoltaic
may change 70% within five to ten minutes due to local
phenomenon like cloud passing. The vast land area
requirement and the fluctuation of renewable energy can be
minimized by distributed renewable energy generation [16].
E. Interoperability and Cyber Security
Interoperability standards are to be fixed by each utility before
the extensive deployment of smart grid implementation. The
cyber security measures are to be built-in as part of the design.
The cyber attach alerts are to be properly addressed by the
utilities. The grid must be self- healing and highly resistant to
attack if the smart grid is to fulfil its promise. The utilities
should provide highly qualified persons to monitor the
complex network of communication, control and sensor
technologies of smart grid. The human participants are the
most susceptible to failure and the most adaptable in the
management of recovery of complex networks [14].
F. Customer Support
Convenient monitoring and control technologies should have
to be provided to the consumers to enable them to manage
their energy consumption [18]. The field testing of smart
houses for a smart grid conducted reveals that the consumer
will accept autonomous energy management systems only
when they can see the realized energy savings and associated
cost benefits. So the market price is also an important factor to
get support from consumer for energy efficiency and peak
load management [19].
V. CONCLUSION
Smart grid development is vital for meeting increasing
demand of electricity and it can be implemented through a
continuous process. Many issues and challenges will have to
be faced by implementing agencies in the journey of making
the grid a smarter one. In this paper some issues and
challenges of smart grid implementation are discussed with
some solutions.
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