COURSE FILE

SMART GRID TECHNOLOGIES

M.Tech. – II SEMESTER

ELECTRICAL AND ELECTRONICS ENGINEERING

VIGNAN’S INSTITUTE OF INFORMATION TECHNOLOGY (AUTONOMOUS)

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 Unit – I - < Introduction to Smart Grid>

Introduction to Smart Grid: Evolution of Electric Grid, Concept of Smart Grid,

Definitions,Need of Smart Grid, Functions of Smart Grid, Opportunities & Barriers of Smart
Grid,Difference between conventional & smart grid, Concept of Resilient &Self Healing Grid,
Presentdevelopment & International policies on Smart Grid. Case study of Smart Grid.

1.1 Evolution of Electric Grid :

A Short History of the U.S. Electric Power Grid :

In 1882, Thomas Edison oversaw the design and deployment of the world’s first electric power
distribution system in New York City, which provided direct current (DC) for 59 customers in
the Wall Street area at a price of about $5 per kilowatt hour (kWh). Between the turn of the
century and the 1930s, electric utility capacity and generation grew at average rates of about
12% annually, doubling roughly every six years, despite a 14% drop in generation between
1929 and 1932. The efficiency of generators and transformers improved and transmission
voltages increased. Residential prices fell dramatically, from an average of about $4.30 per
kWh at the turn of the century to $0.88 per kWh in 1932. Electricity was not yet universally
available in 1932, but two-thirds of all homes already used it. Today, the US electric power grid
serves about 125 million residential customers, 17.6 million commercial customers, and
775,000 industrial customers. These various categories of customers account, respectively, for
about 37%, 36%, and 27% of electricity consumption annually.

Electricity is produced at large power plants typically located in remote areas and delivered into
high-voltage transmissionlines that transport it across long distances to regional and
neighborhood substations, where the voltage is stepped down toa current that can be used in
homes and offices and fed into a local distribution grid.

Between 1949 and 1973, electricity use in the United States grew at an average annual rate of
8.3%, and the system wasable to meet that demand with only sporadic difficulty. Even with
rising prices after 1973, electricity use grew at anaverage annual rate of 2.5% in the years from
1973 to 2006. The growth rate projected for the next 20 years iscomparatively flat.

The electric grid encompasses both transmission and distribution (T&D) power grids. The
transmission system spans more than 160,000 miles (257,000) of high-voltage transmission
lines and connects over 750 GW of electricity-generatingcapacity with local and regional
demand centers across the nation. In addition, the electricity distribution system, which
consists of smaller, lower-voltage distribution lines that deliver power from substations and
transformers to customers,encompasses 6 million miles (9.6 million) of wire and cable spread
across roughly 500,000 circuits and linked to thenational transmission system by about 60,000
substations.
Electricity System – Transmission and Distribution System :

The transmission system transports large blocks of power over relatively long distances from a
central generating station to main substations close to major load centers or from one central
station to another for load sharing. The power plants on an alternating current (AC) system are
synchronized and produce three-phase AC voltage. At the generating station, the voltage of the
three-phase AC output from the generator is increased to the required transmission voltage by a
step-up transformer.

The high-voltage AC is then transmitted through the transmission grid to the load center where
it is again transformed (stepped down) to lower voltages required by distribution lines. The
system consists of high-voltage overhead and underground conducting lines made of either
copper or aluminum, which require less surface area for a given carrying power capacity and
result in lower line losses. Because of resistance in the conductors, some power is lost as
dissipated heat during transmission.

Distribution networks carry power through wires either on poles or, in many urban areas,
underground from the transmission substation to consumers. The connection between
distribution networks and transmission or sub-transmission occurs at distribution substations.
Distribution substations have transformers to step voltage down to the primary distribution
level. Distribution networks are distinguished from transmission networks by their voltage level
and topology.

Source: http://brooksidestrategies.com/resources/origins-and-
evolution-of-the-electric-grid/

The first alternating current power grid system was installed in 1886 in GreatBarrington,
Massachusetts. 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 which were then branched and divided to provide
power to smaller industrial and domestic users over the entire supply area. The topology of the
1960s grid was a result of the strong economies of scale: large coal-, gas- and oil-fired power
stations in the 1 GW (1000 MW) to 3 GW scale are still found to be cost-effective, due to
efficiency-boosting features that can be cost effective only when the stations become very large.

Power stations were located strategically to be close to fossil fuel reserves (either the mines or
wells themselves, or else close to rail, road or port supply lines). Siting of hydroelectric dams in
mountain areas also strongly influenced the structure of the emerging grid. Nuclear power
plants were sited for availability of cooling water. Finally, fossil fuel-fired power stations were
initially very polluting and were sited as far as economically possible from population centres
once electricity distribution networks permitted it. By the late 1960s, the electricity grid reached
the overwhelming majority of the population of developed countries, with only outlying
regional areas remaining 'off-grid'.

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. 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. The
motivation for dual-tariff arrangements was the lower night-time demand. Dual tariffs made
possible the use of low-cost night-time electrical power in applications such as the maintaining
of 'heat banks' which served to 'smooth out' the daily demand, and reduce the number of
turbines that needed to be turned off overnight, thereby improving the utilisation and
profitability of the generation and transmission facilities. The metering capabilities of the 1960s
grid meant technological limitations on the degree to which price signals could be propagated
through the system.

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.

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, resulted in high costs to the electricity companies, which
were passed on in the form of increased tariffs. In the 21st century, some developing countries
like China, India and Brazil were seen as pioneers of smart grid deployment. Modernization
opportunities 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. 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. Power from photovoltaic
cells (and to a lesser extent wind turbines) has also, significantly, called into question the
imperative for large, centralised power stations. The rapidly falling costs point to a major
change from the centralised grid topology to one that is highly distributed, with power being
both generated and consumed right at the limits of the grid. Finally, growing concern over
terrorist attack in some countries has led to calls for a more robust energy grid that is less
dependent on centralised power stations that were perceived to be potential attack targets.

Evolution of "Smart Grid"

The first official definition of Smart Grid was provided by the Energy Independence and
Security Act of 2007 (EISA-2007), which was approved by the US Congress in January 2007,
and signed to law by President George W. Bush in December 2007. Title XIII of this bill
provides a description, with ten characteristics, that can be considered a definition for Smart
Grid, as follows:

"It is the policy of the United States to support the modernization of the Nation's electricity
transmission and distribution system to maintain a reliable and secure electricity infrastructure
that can meet future demand growth”

To achieve each of the following, which together characterize a Smart Grid:

(1) Increased use of digital information and controls technology to improve reliability, security,
and efficiency of the electric grid.
(2) Dynamic optimization of grid operations and resources, with full cyber-security.
(3) Deployment and integration of distributed resources and generation, including renewable
resources.
(4) Development and incorporation of demand response, demand-side resources, and energy-
efficiency resources .
(5) Deployment of `smart' technologies (real-time, automated, interactive technologies that
optimize the physical operation of appliances and consumer devices) for metering,
communications concerning grid operations and status, and distribution automation.
(6) Integration of `smart' appliances and consumer devices.
(7) Deployment and integration of advanced electricity storage and peak-shaving technologies,
including plug-in electric and hybrid electric vehicles, and thermal storage air conditioning.
(8) Provision to consumers of timely information and control options.
(9) Development of standards for communication and interoperability of appliances and
equipment connected to the electric grid, including the infrastructure serving the grid.
(10) Identification and lowering of unreasonable or unnecessary barriers to adoption of smart
grid technologies, practices, and services."
A common element to most definitions is the application of digital processing and
communications to the power grid, making data flow and information management central to
the smart grid. Various capabilities result from the deeply integrated use of digital technology
with power grids. Integration of the new grid information is one of the key issues in the design
of smart grids. Electric utilities now find themselves making three classes of transformations:
improvement of infrastructure, called the strong grid in China; addition of the digital layer,
which is the essence of the smart grid; and business process transformation, necessary to
capitalize on the investments in smart technology. Much of the work that has been going on in
electric grid modernization, especially substation and distribution automation, is now included
in the general concept of the smart grid.

Pic : 1. Jean Claude Sabonnadière, NouredineHadjsaïd, "Smart Grids", Wiley Blackwell

Early technological innovations

Smart grid technologies emerged from earlier attempts at using electronic control, metering, and
monitoring. In the 1980s, automatic meter reading was used for monitoring loads from large
customers, and evolved into the Advanced Metering Infrastructure of the 1990s, whose meters
could store how electricity was used at different times of the day. Smart meters add continuous
communications so that monitoring can be done in real time, and can be used as a gateway to
demand response-aware devices and "smart sockets" in the home. Early forms of such demand
side management technologies were dynamic demand aware devices that passively sensed the
load on the grid by monitoring changes in the power supply frequency. Devices such as
industrial and domestic air conditioners, refrigerators and heaters adjusted their
duty cycle to avoid activation during times the grid was suffering a peak condition. Beginning
in 2000, Italy's Telegestore Project was the first to network large numbers (27 million) of homes
using smart meters connected via low bandwidth power line communication. Some experiments
used the term broadband over power lines (BPL), while others used wireless technologies such
as mesh networking promoted for more reliable connections to disparate devices in the home as
well as supporting metering of other utilities such as gas and water.

Monitoring and synchronization of wide area networks were revolutionized in the

early 1990s when the Bonneville Power Administration expanded its smart grid research with
prototype sensors that are capable of very rapid analysis of anomalies in electricity quality over
very large geographic areas. The culmination of this work was the first operational Wide Area
Measurement System (WAMS) in 2000. Other countries are rapidly integrating this technology.
China started having a comprehensive national WAMS system when the past 5-year economic
plan completed in 2012.

Evolution of Smart Grid :

The existing electricity grid is a product of rapid urbanization and infrastructure developments
in various parts of the world in the past century. Though they exist in many differing
geographies, the utility companies have generally adopted similar technologies. The growth of
the electrical power system, however, has
been influenced by economic, political, and geographic factors that are unique to each utility
company [12]. Despite such differences, the basic topology of the existing electrical power
system has remained unchanged. Since its inception, the power industry has operated with clear
demarcations between its generation, transmission, and distribution subsystems and thus has
shaped different levels of automation, evolution, and transformation in each step. According to
Fig. 2.2, the existing electricity grid is a strictly hierarchical system in which power plants at the
top of the chain ensure power delivery to customers’ loads at the bottom of the chain. The
system is essentially a one-way pipeline where the source has no real-time information about
the service parameters of the termination points. The grid is therefore over-engineered to
withstand maximum anticipated peak demand across its aggregated load. And since this peak
demand is an infrequent occurrence, the system is inherently inefficient. Moreover, an
unprecedented rise in demand for electrical power, coupled with lagging
investments in the electrical power infrastructure, has decreased system stability [2]. With the
safe margins exhausted, any unforeseen surge in demand or anomalies across the distribution
network causing component failures can trigger catastrophic blackouts. To facilitate
troubleshooting and upkeep of the expensive upstream assets, the utility companies have
introduced various levels of commandand- control functions. A typical example is the widely
deployed system known as supervisory control and data acquisition (SCADA).
Given the fact that nearly 90 % of all power outages and disturbances have their roots in the
distribution network, the move toward the Smart Grid has to start at the bottom of the chain, in
the distribution system. Moreover, the rapid increase in the cost of fossil fuels, coupled with the
inability of utility companies to expand their generation capacity in line with the rising demand
for electricity, has accelerated
 Fig 1 The existing grid

the need to modernize the distribution network by introducing technologies that can help with
demand-side management and revenue protection. As Fig. 3 shows, the metering side of the
distribution system has been the
focus of the most recent infrastructure investments. The earlier projects in this sector saw the
introduction of automated meter reading (AMR) systems in the distribution network. AMR lets
utilities read the consumption records, alarms, and status from customers’ premises remotely.
Figure 4 suggests, although AMR technology proved to be initially attractive, utility companies
have realized that AMR does not address the major issue they

Fig.3 The evolution of the Smart Grid

need to solve: demand-side management. Due to its one-way communication system, AMR’s
capability is restricted to reading meter data [2]. It does not let utilities take corrective action
based on the information received from the meters. In other words, AMR systems do not allow
the transition to the Smart Grid, where pervasive control at all levels is a basic premise.
Consequently, AMR technology was short-lived. Rather than investing in AMR, utilities across
the world moved toward advanced metering infrastructure (AMI). AMI provides utilities with a
twoway communication system to the meter, as well as the ability to modify customers’
service-level parameters. Through AMI, utilities can meet their basic targets for load
management and revenue protection. They not only can get instantaneous information about
individual and aggregated demand, but they can also impose certain caps on consumption, as
well as enact various revenue models to control their costs. The emergence of AMI heralded a
concerted move by stakeholders to further refine the ever-changing concepts around the Smart
Grid [2]. In fact, one of the major measurements that the utility companies apply in choosing
among AMI technologies is whether or not they will be forward compatible with their yet-to-
be-realized Smart Grid’s topologies and technologies.

Components of Smart Grid :

For the generation level of the power system, smart enhancements will extend from the
technologies used to improve the stability and reliability of the generation to intelligent controls
and the generation mix consisting of renewable resources

Fig.4 Smart Grid returns on invesments

References :
 1. Goverment Series : Smart Grid BY Authors: Stan Mark Kaplan, Fred Sissine, Amy Abel,
Jon Wellinghoff, Suedeen G. Kelly, and James J. Hoecker .
2. Smart Grid by Md Rahat Hossain, Amanullah M. T. Oo and A. B. M. Shawkat Ali

EVOLUTION OF SMART GRID:-

Electric power systems throughout the world are facing radical change stimulated by the
pressing need to decarbonise electricity supply, to replace ageing assets and to make effective
use of rapidly developing information and communication technologies (ICTs). These aims all
converge in the Smart Grid. The Smart Grid uses advanced information and communication to
control this new energy system reliably and efficiently. Some ICT infrastructure already exists
for transmission voltages but at present there is very little real-time communication either to
or from the customer or in distribution circuits.

The Smart Grid vision is to give much greater visibility to lower voltage networks and to enable
the participation of customers in the operation of the power system, particularly through
Smart Meters and Smart Homes. The Smart Grid will support improved energy efficiency and
allow a much greater utilisation of renewables. Smart Grid research and development is
currently well funded in the USA, the UK, China, Japan and the EU. It is an important research
topic in all parts of the world and the source of considerable commercial interest.

CONCEPT OF SMART GRID:-

1. It enables demand response and demand side management through the integration of
smart meters, smart appliances and consumer loads, micro-generation, and electricity storage
(electric vehicles) and by providing customers with information related to energy use and
prices. It is anticipated that customers will be provided with information and incentives to
modify their consumption pattern to overcome some of the constraints in the power system.

2. It accommodates and facilitates all renewable energy sources, distributed generation,

residential micro-generation, and storage options, thus reducing the environmental impact of
the whole electricity sector and also provides means of aggregation. It will provide simplified
interconnection similar to ‘plug-and-play’.

3. It optimises and efficiently operates assets by intelligent operation of the delivery system
(rerouting power, working autonomously) and pursuing efficient asset management. This
includes utilising asserts depending on what is needed and when it is needed.

4. It assures and improves reliability and the security of supply by being resilient to
disturbances, attacks and natural disasters, anticipating and responding to system
disturbances (predictive maintenance and self-healing), and strengthening the security of
supply through enhanced transfer capabilities.

5. It maintains the power quality of the electricity supply to cater for sensitive equipment that
increases with the digital economy.
6. It opens access to the markets through increased transmission paths, aggregated supply and
demand response initiatives and ancillary service provisions.

DEFINITIONS:-

The European Technology Platform defines the Smart Grid as:

“A SmartGrid is an electricity network that can intelligently integrate the actions of all users
connected to it – generators, consumers and those that do both – in order to efficiently deliver
sustainable, economic and secure electricity supplies.”

According to the US Department of Energy :

“A smart grid uses digital technology to improve reliability, security, and efficiency (both
economic and energy) of the electric system from large generation, through the delivery
systems to electricity consumers and a growing number of distributed-generation and storage
resources.”

According to department of energy & climate change UK:

“A smart grid uses sensing, embedded processing and digital communications to enable the
electricity grid to be observable (able to be measured and visualised), controllable (able to
manipulated and optimised), automated (able to adapt and self-heal), fully integrated (fully
interoperable with existing systems and with the capacity to incorporate a diverse set of
energy sources).”

WORKING DEFINITION OF THE SMART GRID BASED ON PERFORMANCE MEASURES

A working defi nition should include the following attributes:

• Assess grid health in real time

• Predict behavior, anticipate

• Adapt to new environments like distributed resources and renewable energy resources

• Handle stochastic demand and respond to smart appliances

• Provide self - correction, reconfi guration, and restoration

• Handle randomness of loads and market participants in real time

• Create more complex interactive behavior with intelligent devices, communication
protocols, and standard and smart algorithms to improve smart communication and
transportation systems.

Thus, the working defi nition becomes:

The smart grid is an advanced digital two - way power fl ow power system capable of self -
healing, and adaptive, resilient, and sustainable, with foresight for prediction under different
uncertainties. It is equipped for interoperability with present and future standards of
components, devices, and systems that are cyber - secured against malicious attack.

References :
1. SMART GRID Fundamentals of Design and Analysis by James Momoh , A JOHN WILEY
& SONS, INC., PUBLICATION
2. JanakaEkanayake, Nick Jenkins, KithsiriLiyanage, Jianzhong Wu, Akihiko
Yokoyama,“Smart Grid: Technology and Applications”, Wiley

NEED FOR SMART GRID

With a population of over a billion people and a current GDP growth rate of about 8
percent, India is certainly one of the fastest growing countries in the world. Despite its robust
economic growth, the country is still plagued by basic problems such as shortage of electricity,
with nearly 40 percent of its rural households having no access to electricity.

Although India has almost doubled its energy generation in the past decade by adding
over 85 GW of capacity, its grid systems lose more than 30 GW of this generated power. This is
highly disturbing to people working in the power sector in India, who are concerned with the
efficiency of the distribution of electricity.

The World Resources Institute estimates electricity transmission and distribution losses in
India to be 27 percent - the highest in the world. This is a huge wastage of one of the most
environmentally unfriendly commodities to produce.

These insights lead Technavio to believe that India needs the help of new technology to
ensure better monitoring and control of electricity transmission and distribution.

A Smart Grid is a digital electrical grid that facilitates the gathering and distribution of
information with regard to the usage of power by suppliers and consumers. This will lead to
electricity services becoming more reliable, efficient, cost-effective, and environmentally
conscious.

Advantages of Smart Grid Technology

 Help businesses reduce their carbon footprint

New opportunities for tech companies
 Reduce cost of power cuts
 Meet increasing demand for power supply in India

FUNCTIONS OF SMART GRID COMPONENTS :

For the generation level of the power system, smart enhancements will extend from thetechnologies used to
improve the stability and reliability of the generation to intelligentcontrols and the generation mix consisting of
renewable resources.

Figure 1.6. The intelligent grid (architecture 2)

1. Smart Devices Interface Component

Smart devices for monitoring and control form part of the generation components ’ realtime information
processes. These resources need to be seamlessly integrated in theoperation of both centrally distributed and
district energy systems.

2. Storage Component

Due to the variability of renewable energy and the disjoint between peak availabilityand peak consumption, it is
important to fi nd ways to store the generated energy forlater use. Options for energy storage technologies
include pumped hydro, advance batteries, flow batteries, compressed air, super - conducting magnetic energy
storage, super -capacitors, and fl ywheels. Associated market mechanisms for handling renewable
energy resources, distributed generation, environmental impact and pollution are othercomponents necessary at
the generation level.Associated market mechanism for handling renewable energy resources,
distributedgeneration, environmental impact and pollution has to be introduced in the designof smart grid
component at the generation level.

3. Transmission Subsystem Component

The transmission system that interconnects all major substation and load centers is thebackbone of an integrated
power system. Effi ciency and reliability at an affordable costcontinue to be the ultimate aims of transmission
planners and operators. Transmissionlines must tolerate dynamic changes in load and contingency without
service disruptions.To ensure performance, reliability and quality of supply standards are preferredfollowing
contingency. Strategies to achieve smart grid performance at the transmissionlevel include the design of
analytical tools and advanced technology with intelligencefor performance analysis such as dynamic optimal
power fl ow, robust state estimation,real - time stability assessment, and reliability and market simulation tools.
Real – timemonitoring based on PMU, state estimators sensors, and communication technologiesare the
transmission subsystem ’ s intelligent enabling tools for developing smart transmissionfunctionality.

4. Monitoring and Control Technology Component

Intelligent transmission systems/assets include a smart intelligent network, self -monitoring and self - healing,
and the adaptability and predictability of generation anddemand robust enough to handle congestion, instability,
and reliability issues. This newresilient grid has to withstand shock (durability and reliability), and be reliable
toprovide real - time changes in its use.

5. Intelligent Grid Distribution Subsystem Component

The distribution system is the fi nal stage in the transmission of power to end users.Primary feeders at this
voltage level supply small industrial customers and secondarydistribution feeders supply residential and
commercial customers. At the distributionlevel, intelligent support schemes will have monitoring capabilities
for automationusing smart meters, communication links between consumers and utility control, energy
management components, and AMI. The automation function will be equipped withself - learning capability,
including modules for fault detection, voltage optimization andload transfer, automatic billing, restoration and
feeder reconfi guration, and real – timepricing.

6. Demand Side Management Component

Demand side management options and energy efficiency options developed for effective means of modifying
the consumer demand to cut operating expenses from expensive generators and defer capacity addition. DSM
options provide reduced emissions in fuel production, lower costs, and contribute to reliability of generation.
These options have an overall impact on the utility load curve. A standard protocol for customer delivery with
two - way information highway technologies as the enabler is needed. Plug - and - play, smart energy buildings
and smart homes, demand - side meters, clean air requirements, and customer interfaces for better energy
efficiency will be in place.

References :
3. SMART GRID Fundamentals of Design and Analysis by James Momoh , A JOHN WILEY & SONS, INC.,
PUBLICATION

Opportunities & Barriers of Smart Grid

The U.S. electric utility industry is likely to face a variety of new challenges over the next several decades
including substantial changes to the generation mix and the need for new transmission to enable enhanced
utilization of existing capacity and to enable the integration of new renewablegeneration resources. The industry
will also encounter a wide variety of technical opportunities over the next several decades as smart grid visions
start to become reality. Some of these technical opportunities will require innovation on the part of both utilities
and their regulators.
Some of the challenges that will be faced by the utility industry have already started to emerge, including the
following:

• Annual electricity use in the typical home and average retail price per kilowatt hour continue to trend up
year over year.
• The transformer fleet is aging, and the load on each transformer is continuing to rise; when frequency and
severity of loss are taken into consideration, electric utilities face the highest risk [51].
• T&D losses amount to almost 6% of net generation [52].
• There has been a 3% increase per year in outage duration and a 4% increase per year in outage frequency
over the past 5 years [53].
• Power outages and power quality disruptions cost U.S. businesses $150–$200 billion per year [54].
• There has been a well-documented decline in U.S. energy R&D spending and the underinvestment by
both the public and private sector has become a focus of policy debate [55].
• By 2030, given the aforementioned points and the fact that electricity consumption is expected to increase
at least 30% by 2020 [52]. almost $1.5 trillion of investment is projected to be needed—$298 billion in
transmission, $582 billion in distribution, and $85 billion in AMI and demand response [56].

This section introduces many of the new challenges that are likely to have a strong impact on the evolution of
the utility industry over the next several decades.

Generation and Energy Resource Mix Changes

The nation’s portfolio of generation and energy resources is undergoing significant change as the impact of
various market and legislative forces is felt. Each option presents a different value proposition.

1. Coal

Coal provides nearly 50% of the United States’s electricity generation at a relatively low average cost of $27
per MWh [57]. However, its share of electricity generation has been in decline for most of the past decade,
while international demand has helped drive its cost steadily upward. While the Energy Information
Administration forecasts coal to still produce 45% of the nation’s electricity output in 2025, “cap and trade”
legislation that constrains carbon emissions will effectively serve as a tax on coal that will necessarily drive
producers to revisit and reallocate their fuel portfolio.

2 Natural Gas

Natural gas fuels nearly 22% of the nation’s electricity, up from 15% in 1999, making it the second largest
generation source. While these plants are far cleaner to operate than coal plants and far easier to build than
either coal or nuclear plants, natural gas has proven to be a particularly volatile commodity, increasing fourfold
in price between 1999 and 2008. In 2008, the average cost to produce electricity from natural gas was $84 per
MWh, up by $20 per MWh in only 1 year. In subsequent years (2009–mid-2011), the cost to produce electricity
with natural gas fell sharply.

3. Nuclear

Despite the fact that no new nuclear plants have been built in the United States in decades, nuclear plants still
provide 20% of the nation’s electricity at a price point (average of $17 per MWh) below
coal and well below natural gas. In fact, of the $17 per MWh price, more than 70% goes to nonfuel operating
and maintenance (O&M) expenses which helps to illustrate the plant operation challenges inherent with this
power source. Nuclear power benefits from (1) a fuel source (uranium) that is relatively stable in price and (2)
an increasing recognition by environmentalists that its minimal carbon footprint offsets the low probability risk
of catastrophic failure. Nevertheless, plant construction is exceedingly slow due to regulatory, licensing, and
siting issues.

4. Oil

In 2008, oil accounted for less of the nation’s electricity than wind (only 1%). This represents a 70% reduction
in only 3 years. This was driven in large part by dramatic spikes in the cost of oil, which increased the price
point from $60 per MWh in 2004 to $180 per MWh in 2008.

5. Renewable Generation

Ever-heightening concern about the impact of power plant emissions on the environment and the climate has led
to increased interest in renewable generation sources. Renewable energy accounted for 10% of the nation’s
electricity generation mix in 2010, with hydro making up the vast majority of this generation followed by wind,
biomass, geothermal, and solar. However, every state in the United States has a statewide renewable electricity
[58] goal and 29 states and the District of Columbia have renewable electricity standard mandates, known as
RPS. RPS-type mechanisms have also been adopted in several other countries, including Western Europe
(Britain, Italy, Poland, Sweden, and Belgium), [59] and in Latin America (Chile and Brazil). These mandates
vary, but most are stated as a percentage of renewable energy in the generation portfolio by a specified date
In the United States, for example,

• Wisconsin 10% by 2015

• Virginia 15% by 2025
• Colorado 20% by 2020
• New York 25% by 2013
• California 33% by 2020
• Maine 40% by 2017

These policies, combined with the potential for federal carbon-constraining legislation and rising fuel
commodity prices, have spurred significant investment in renewable generation. This can be seen in the trend in
generation capacity brought online by fuel type, where wind’s share of new capacity has grown from less than
10% in 2004 and 2005 to more than 40% by 2008.
A wide variety of “renewable” resources, each with their own challenges, can be used to generate electric
power, including

Hydro: Hydro produces electricity at the lowest price point (approximately $10 per MWh) among the major
generation sources. In addition, unlike solar or wind power, hydro is “dispatchable,” while wind and solar
output vary dramatically based on weather conditions. Hydro generation can be “ramped up” or “ramped down”
depending on system requirements, though overall capacity is greatly influenced by precipitation amounts and
resulting water levels. The largest hydro plant in the world is the Three Gorges Dam in China, which cost $30
billion to build with capacity in excess of 20 GW.

Wind: Wind energy is growing more rapidly in importance than any other generation source, and by mid-2011
wind power installations in the United States stood at 35,000 MW of wind energy in service. Globally, more
than 50% of all wind generation is found in Europe, where wind accounts for much higher proportions of
national “energy portfolios” than in the United States; Denmark generates nearly 20% of its power from wind,
the largest proportion in the world. The largest wind energy complex (“wind farm”) in the world is in Roscoe,
Texas, with capacity of nearly 800 MW. It cost more than $1billion to build with a footprint of nearly 100,000
acres in western Texas.

Solar: Solar energy is growing in importance, but remains more distributed (i.e., “micro”) in usage than other
renewable sources. Solar Energy Generating Systems (SEGS) in the Mojave Desert is the largest solar energy
complex in the world, with capacity of more than 350 MW. Built in the 1980s, it utilizes nearly 1,000,000
mirrors over 1,600 acres in California. While SEGS is an example of a technology called concentrating solar
power (CSP), there is a trend toward PV arrays for larger-scale generation. The Olmedilla Photovoltaic Park in
Spain is the largest PV array in the world with a capacity of 60 MW, though much larger PV arrays are under
consideration.

Geothermal: Geothermal energy is produced from the heat stored in the earth, with large-scale plants located
near boundaries between tectonic plates. The largest geothermal generation complex in the world is located 70
miles north of San Francisco, with a 1.5 GW capacity. As with hydro, wind, and solar, the upfront costs of
geothermal energy—primarily, the cost of drilling a geothermal well typically around 2 miles in depth—far
outweigh the ongoing operating costs. Unlike hydro, wind, and solar, geothermal energy sources will be
depleted by the power plant over time.

Biomass: Biomass energy is produced through methods more similar to fossil fuel plants, namely the burning
of fuel. With biomass, however, the fuel is renewable—typically wood and waste. The most common wood
source is waste product from the paper manufacturing industry. The most common “trash” sources are
municipal or manufacturing waste and gas from landfills. Biomass plants are typically smaller in size than any
of the other renewable sources noted. The largest biomass plant in the world is currently in Wales installed in
2010, with a capacity of 350 MW at a cost of around $650 million.

6 . Energy Storage

There are a number of potential electricity storage technologies being researched and developed in 2011.
Among these are pumped storage, compressed air, multiple battery chemistry formulations, flywheels,
superconducting magnetic energy storage, and others. More information can be found at the Electricity Storage
Association website (www.electricitystorage.org).
Battery storage technology can have a significant impact on the proportion of wind and solar energy in a
generation portfolio. As this storage becomes increasingly cost-effective and scalable, wind and solar energy
essentially will be to some extent “dispatchable” and load management will be greatly facilitated.

Consumer Demand Management

Environmental advocates have long maintained that comparing the relative merits of coal, nuclear, and natural
gas (90% of the nation’s generation portfolio) alone is fundamentally flawed because it does not include the
demand reduction option. Conservation, if viewed as an energy source, can be a suitable and equivalent
alternative to a new power plant. The ability to fully leverage this option, however, depends in large part on two
factors: (1) technology that better enables customers to manage and control their usage and (2) rates that send
price signals to customers while removing the financial disincentives for utilities to drive demand reduction.

Transmission Expansion

The changes in the generation mix described above will likely require substantial new transmission growth over
the coming decades. Transmission network expansion, especially projects that connect renewable generation to
densely populated regions of the country, will help the nation utilize its existing generation fleet more fully
while providing stimulus for further investment in additional renewable capacity.

NewDemands

EVs or expanded demand response resources could not only impact the generation mix but could also require
other changes to how the power system is planned and operated.

NewTechnical Opportunitiesof Smart Grid :

Technical challenges the industry will face include the following:

• Managing an increasing number of operating contingencies that differ from “system as design”
expectations (e.g., in response to wind and solar variability)
• Facilitating the introduction of intermittent renewable and distributed energy resources with limited
controllability and dispatchability
• Mitigating power quality issues (voltage and frequency variations) that cannot be readily addressed by
conventional solutions
• Integrating highly distributed, advanced control and operations logic into system operations
• Developing sufficiently fast response capabilities for quickly developing disturbances
• Operating systems reliably despite increasing volatility of generation and demand patterns, given
increasing wholesale market demand elasticity
• Increasing the adaptability of advanced protection schemes to rapidly changing operational behavior (due
to the intermittent nature of renewable and DG resources)

Regulatory Challengesof Smart Grid :

To meet operations challenges, the industry is looking toward new technology while still relying on much that is
a century old. However, the expectations of the end user have changed dramatically. Increasingly, utilities are
attempting to build regulatory support—with mixed results—for smart grid investments. Utilities may find that
these operations challenges cannot be met through new technology unless accompanied by increased investment
in core technology. Investment, particularly in transmission infrastructure, has been far outpaced by load growth
—significantly so in certain parts of the country—due, in large part, to difficulties in getting projects of this
magnitude planned, approved, permitted, and funded.

The industry is returning to its reliance on rate cases to secure the level of revenue necessary to maintain a vital
component of the national infrastructure, but is doing so without the same level of regulatory support it enjoyed
prior to deregulation. While rate case frequency has increased, the average awarded return on equity for
shareholder-owned electric utilities in the United States has declined steadily. This reflects, in part, the
industry’s mixed success in rebuilding the regulatory relationships damaged by deregulation initiatives that
either failed to generate the expected results or were outright disasters. Rebuilding trust will be essential,
whether seeking approval for new technology or simply reaching reasonable outcomes on rate cases. Going
forward, the trend is for utilities to submit rate cases far more frequently to regulators than in the recent past.
These regulatory discussions are also increasingly turning to matters of technology that could provide enhanced
service to customers, including the ability to manage their usage more proactively

References :

1. Smart Grids: Infrastructure, Technology, and Solutions, Stuart Borlase ,(Electric Power and Energy
Engineering ) Series Editor by John D. McDonald

Difference between conventional & smart grid

CONVENTIONAL GRID VERSUS SMART GRID:
 Several factors contribute to the inability of today ’ s grid to efficiently meet the demand for reliable power
supply. Table 1.1 compares the characteristics of
today ’ s grid with the preferred characteristics of the smart grid.

Preferred Characteristics Conventional 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 Many distributed energy
generation and storage generation-many obstacles resources with plug - and – play
options exist for distributed energy convenience focus on
resources interconnection renewable

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
Optimization of assets Little integration of Greatly expanded data
and operates efficiently operational data with asset acquisition of grid parameters;
management – business focus on prevention,
process silos minimizing impact to consumers

Anticipating responses Responds to prevent further Automatically detects and

to system disturbances damage; focus on protecting responds to problems; focus on
(self- healing) assets following a 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

TABLE 1.1. Comparison of Today ’ s Grid vs. Smart Grid

References :

1. SMART GRID Fundamentals of Design and Analysis by James Momoh , A JOHN WILEY & SONS, INC.,
PUBLICATION

Concept of Resilient & Self Healing Grid

Definitions:
The US Department of Energy{6}gives a more detailed definition of SmartGrids. It states that
“a smart grid is self healing, enables active participation of consumers,operates resiliently
against attack and natural disasters, accommodates all generation and storage options, enables
introduction of new products, services andmarkets, optimizes asset utilization and operates
efficiently, provides power qualityfor the digital economy” (source: US DoE).
Self-healing power grids: this concept concerns distribution grids. The powergrid must quickly
detect and even anticipate, isolate and restore safe operation in anoptimal and automated way
after the occurrence of a fault. An example of thisachievement can be found in [HAD 10c].
Electrical grids should ensure the interface between increasingly flexible electricity generation
and consumption. The introduction of new ITCs will enable the transition from centralized and
unidirectional management of the energy going from generation to consumption, to distributed
and bidirectional energy management going from generation to consumption and vice versa.
The operating conditions for grids will be improved by virtue of their resilient and self-healing
nature, with a reduction in operating costs linked to a decrease in technical losses and profits
arising from greater stability in the quality of supply and service.
Today, the grid is brittle and challenged, in need of a new architecture. The way forward will be
through a new design and overhaul to make it more resilient and even more robust. As the
number of connected devices increases dramatically, the level of complexity in the grid will rise
to the point where automated protocols are needed to maintain stability—and an Internet design
willbe required to enable the transfer of very large amounts of data and to ensure that the grid
remains functional and continues to supply us with the power on which we are so dependent
every minute of every day{8}

Resilient {1}{7}– increasingly resistant to attack and natural disasters as it becomes more
decentralized and reinforced with Smart Grid security protocols.

The concept of a “smart grid” lacks a standard definition but centers on the use of advanced
technology to increase the reliability and efficiency of the electric grid, from generation to
transmission to distribution.

However, the smart grid does not necessarily replace the existing infrastructure, most of which
was installed in the 1970s.The move to a smart grid is a move from a centralized, producer-
controlled network to one that is less centralized and more consumer-interactive.

• It enables informed participation by consumers

• Accommodates all generation and storage options
• Enables new products, markets, and services
• Provides the power quality for the range of needs
• Optimizes asset utilization and operating efficiency
• Operates resiliently to disturbances, attacks, and disasters
Characteristics of Smart Grid {2}:
In short, a Smart Grid employs innovative products and services together with intelligent
monitoring, control, communication, and self-healing technologies. The literature [7–10]
suggests the following attributes of the Smart Grid:

• Smart Grid allows consumers to play a part in optimizing the operation of thesystem and
provides consumers with greater information and choice of supply.It enables demand response
and demand-side management through the integrationof smart meters, smart appliances and
consumer loads, micro-generation,and electricity storage (electrical vehicles) and by providing
customerswith information related to energy use and prices. It is anticipated that customers
will be provided with information and incentives to modify their consumptionpattern to
overcome some of the constraints in the power system.

• It better facilitates the connection and operation of generators of all sizes andtechnologies and
accommodates intermittent generation and storage options[11]. It accommodates and facilitates
all renewable energy sources, distributedgeneration, residential micro-generation, and storage
options, thus significantlyreducing the environmental impact of the whole electricity supply
system. It willprovide simplified interconnection similar to ‘plug-and-play.’

• It optimizes and efficiently operates assets by intelligent operation of thedelivery system

(rerouting power, working autonomously) and pursuing efficientasset management. This
includes utilizing assets depending on what is neededand when it is needed.

• It operates resiliently in disasters, physical or cyber attacks and deliversenhanced levels of

reliability and security of supplying energy. It assures andimproves reliability and the security
of supply by anticipating and responding ina self-healing manner, and strengthening the
security of supply throughenhanced transfer capabilities.

• It provides power quality of the electricity supply to accommodate sensitiveequipment that

enhances with the digital economy.

• It opens access to the markets through increased transmission paths, aggregatedsupply and
demand response initiatives, and ancillary service provisions.

Be smart, self-sensing, secure, self-correcting, and self-healing

Enabling a Self-healing System {3} :

Once the functionalities discussed above are in place, then it ispossible to consider controlling
the system in real time. To enable this functionality will require wide-scale deployment of
power electronic devices such as power electronic circuit breakers and flexible AC transmission
technologies (FACTS). These technologies will then provide for integration with an advanced
control architecture to enable a self-healing system.

Automation:

The Heart of the IntelliGridSM

Automation will playa key role in providing high levels of powerSQRA throughout the
electricity value chain of the near future. To aconsumer, automation may mean receiving hourly
electricity pricesignals, which can automatically adjust home thermostat settings via a
smart consumer portal. To a distribution system operator, automation may mean automatic
“islanding” of a distribution feeder with localdistributed energy resources in an emergency. To
a power system operator,automation means a self-healing, self-optimizing smart power
delivery system that automatically anticipates and quickly responds to disturbances to minimize
their impact, minimizing or eliminatingpower disruptions altogether. This smart power delivery
system willalso enable a revolution in consumer services via sophisticated retailmarkets.
Through a two-way consumer portal that replaces today’selectric meter, consumers will tie into
this smart power delivery system.This will allow price signals, decisions, communications, and
networkintelligence to efficiently flow back and forth between consumerand service provider in
real time. The resulting fully functioning retailmarketplace will offer consumers a wide range of
services, includingpremium power options, real-time power quality monitoring,
homeautomation services, and much more.

Self-healing grids {6}:

The concept of a self-healing grid that automatically carries out control actions as prevention of
or in the event of failure is often associated with the modernization goals set under the smart
grid transformation. The high variability of flows and number of different situations clearly
make the definition and execution of these control actions more complex than in the past,
whereas expectations of service continuity are constantly rising.

For several years, all the automatic control systems installed in substations have had an
emergency role, albeit with a very local vision, and have therefore had limited intelligence in
many cases. Load shedding based on frequency is a good example.

Progress in communications, particularly the ability to synchronize the PMU

measurements at remote points by GPS have opened the way to more advancedanalysis and
control systems (wide area control systems or WACSs), taking moreelectrical quantities into
account and operating automatically. WACSs will also usethe new control capacities offered by
the new power electronics systems that areavailable in the grid: flexible alternative current
transmissions, Static VARCompensators, thyristor controlled series capacitor, energy storage
converters andgenerator unit regulators.

In the restoration of distribution grids, automation is also making significantprogress as

problems are more local in radial networks in terms of power flowpatterns than in meshed
transmission grids. There is still a long way to go beforerecovery plans can be automated in
transmission grids. The ability to conduct a greatnumber of failure analyses through “what if”-
type calculations is the first steptowards better knowledge of the risks involved. It can be used
by operators toprepare countermeasures. In the MISO grid (USA), more than 8,000
contingenciesare examined in less than five minutes on the 40,000 buses and ranked according
tothe severity of their consequences in order to examine solutions.

Some of the actions currently implemented by management operators can nowbe transferred to
automatic grid controls. This has given operators back some of thetime and peace of mind lost
when renewable energies began to establish themselveson a large scale. Operators are now able
to focus on looking ahead and broadeningtheir vision.
General self-healing principles :

The short-circuits produced in a MV feeder are first eliminated by the protectiverelays and then
the smallest faulty section must be localized and isolated bycollecting and treating the
information coming from the communicating elements(sensors and devices). Depending on the
position of the remote switches, possiblecongestions on the lines and the dispatchability of the
dispersed sources, therestoration process can be carried out by an intelligent agent so that the
faulty zonesare limited and isolated as fast as possible. The fault distance computation, based
onan impedance calculation, makes it possible to have information regarding the estimated
distance between the fault and the substation. This estimation does notguarantee a precise fault
position due to the arborescent nature of the feeders. Inorder to precisely localize the faulty
section, it is often necessary to usecommunicating FPIs.

A method using a combination of the states of FPI and a fault distancecalculation is used in this
demonstrator. It also relies on using a communicationarchitecture allowing the information to
reach the agent responsible for faultlocalization and then reconfiguration.

Once the fault is detected and localized, the operators must execute a set ofoperations to
resupply the healthy portions and reduce the number of customersaffected by the fault by as
much as possible. This operation is called restoration.In Figure 7.21, we remind the reader of
the principle of first-level cells(containing the feeders helping each other) that was discussed in
Chapter 6. Withinthis cell, the data exchange between the agents must be specified in order to
carryout all of the expected functionalities. This is why the solution retained was the use
of wide area networks (WANs).The fault passage indicators make up the bare bones of this
demonstrator’sarchitecture. They are measurement devices equipped with a microprocessor.
Theyare also equipped with different output interfaces in order to exchange informationwith the
SCADA and the local agent. The devices used here are manufactured bySchneider Electric
Telecontrol.

The fault recorders (FR) were developed entirely during the project to managethe different ways
in which the neutral (including the composite neutral) can beearthed. In order to yield a fault
distance, we must carry out some calculationsduring the fault’s transient state and use a
sampling frequency of 5 kHz. Thevoltages and currents at each substation before and after the
fault are recorded andsent to the agent tasked with the fault distance calculation and the
localization of thefaulty feeder portion.Figure 7.22 shows the general method used to isolate the
faulty section. Thereare many steps that can be distinguished once the fault appears:
– the faulty feeder is isolated by the operation of the protection at the head of the
feeder. The information relevant to triggering the feeder is sent to the SCADA;
– the agent recovers the faulty feeder voltages and currents to determine its type
(single phase, etc.) and then calculates the fault distance from the substation;
– the agent then gets the information from the different FPIs and analyzes this
response to determine the faulty section;
– when the fault distance from the substation and the section are known, the the switching
sequence to be performed to isolate the faulty section and resupplies
the offline feeder to the SCADA.
To determine the operations to be carried out in order to reconfigure the networkafter the fault,
we proceed as follows. Upon the fault localization process issue, theswitches surrounding the
faulty section are open and consigned. The reconfigurationprocess then consists of managing
two lists:

– a list of open and maneuverable switches; and

– a list of closed switches.

According to graph theory, we know that in order to reconfigure we must close anormally open
switch (and the circuit breaker at the head of the offline feeder).Thereconfiguration then
consists of exploring the list of open switches and finding theone that will give us a spanning
tree (i.e. obtain a radial network supplying allloads). This process can be coupled to power
losses and a voltage profilecomputation in order to optimize the choice of switch to close.

References :
1. Goverment Series : Smart Grid BY Authors: Stan Mark Kaplan, Fred Sissine, Amy Abel,
Jon Wellinghoff, Suedeen G. Kelly, and James J. Hoecker .
2. Smart Grid by Md Rahat Hossain, Amanullah M. T. Oo and A. B. M. Shawkat Ali .
3. The Smart Grid: Enabling Energy Efficiency and Demand Response by Clark W. Gellings,
P.E.
4. Phase I Report: The Path to the Perfect Power System, 2005, www.galvinpower.org.
 5. Phase I Report: Technology Mapping, Scanning and Foresight, 2005,
(www.galvinpower.org).
6. Jean Claude Sabonnadière, NouredineHadjsaïd, “Smart Grids”, Wiley Blackwell.
7. Smart Grids: Infrastructure, Technology, and Solutions, Stuart Borlase.
8. Andres Carvallo, John Cooper, “The Advanced Smart Grid: Edge Power Driving
Sustainability: 1”, Artech House Publishers July 2011

Case study of Smart Grid

Objectives addressed by the SmartGrid concept:

The SmartGrid concept must thus face the above-mentioned challenges. It ispossible to assign
technical objectives related to innovations and solutions to theproblems raised and
socioeconomic objectives presented by the integration of theactive consumer in his or her
societal dimension. These objectives must also beassigned to the business models related to the
necessary transitions of this systemtowards a more intelligent one.

As already indicated, transmission grids have historically integrated much moreintelligence and
sophisticated equipment including ICTs than distribution grids inorder to manage the overall
system security requirements. Thus, we can distinguishthe objectives addressed by transmission
grids from those addressed by distributiongrids.
 a. Specific case of transmission grids:

The change in the energy paradigm has also affected transmission grids, namelythrough:

– Liberalization of energy markets and multiplicity of actors: this has resulted inresponsibility
partitioning, the necessity to manage actors that may have divergent interests including non
discriminatory treatment and motivation for any decisionwith an impact on these actors.
Moreover, the management of information in thiscontext has become of paramount importance
for the system operation.

– Large-scale development of renewable energies, such as large wind farmsexceeding some

dozens of MW that are directly interconnected at the transmissionlevel (higher than 63 kV, for
the French example). These energies are fastdeveloping, particularly for the offshore wind
farms. However, as far astransmission grids are concerned, these energies have impacts on the
wholeinterconnected system (e.g. the large-scale development of wind farms in Germany
inevitably impacting the whole interconnected European electricity grid.

– Observation of distributed generation affecting the transmission grid at thelocal level and
the traditional decoupling.

– Observation of distributed generation that may affect the transmission grid atthe local level
specifically. The traditional decoupling of transmission and distribution grids is being
challenged by the development of distributed generation.Indeed, a large-scale development of
distributed generation may cause reverseenergy flows for certain periods, from distribution to
transmission, thus affectingupper voltage levels (transmission). However, these decentralized
generation unitsare not currently observable in most cases and most are within the
jurisdiction ofdistribution grids.

– European (or continental) integration: the multiplicity of transactions and thedevelopment

of large-scale intermittent generation at a continental (European) levelrequire continental
(European) observation of the entire network and a perfectcoordination of system operators.
The first observation “bricks” have already beenlaunched between some countries in Europe,
such as the CORESO platform.However, such cooperation and information sharing must be
generalized to a largerscale (a whole “interconnected” grid) while addressing business (actors)
andtechnical information on all generation means, especially on intermittent energyincluding
real-time applications. The very large dimension of these interconnectedsystems combined
with responsibility partitioning, however, means that this iscurrently a highly challenging task.
Furthermore, we can add to these factors – which are linked to each other – theincreasing
difficulties of building new overhead lines or the need to operate powergrids ever closer to
their security limit.

The intelligence objectives at the level of transmission grids are thereforestrongly associated
with these factors in the view of maintaining the generation–consumption balance. It is
therefore of paramount importance to preserve the overallsystem security in optimum
economical conditions. The objectives are clearly of adifferent nature compared to those of
distribution grids.

b. Specific case of distribution grids:

Distribution grids are facing different challenges to those of transmission gridsbased at the
interface between the transmission and end user. As such, the objectivesare those related to
its evolution with respect to its link with the end user, distributedgeneration and new usages,
such as PHEVs.
In technical terms, the major objectives of the SmartGrid can be summarized as
follows:

– enabling large-scale integration of renewable energies including all storageoptions,

facilitating PHEVs and increasing the participation of consumers (theconcept of the active
consumer and optimization of consumption) under the bestpossible conditions of economy,
energy of quality and security of supply;

– strengthening the overall energy efficiency, namely by significantly enhancingthe efficiency

of the energy chain as a whole and reducing the environmental impactof the whole electricity
supply system;

– allowing an easy and efficient management of the system, while facing theincreasing
complexity of the system, including the management of a large amount ofdata; and

– developing interoperability between the various actors and stakeholders (e.g.

between transmission and distribution systems).

c. The desired development of distribution networks: towards smarter grids:

The expected operating modes of distribution grids in the up-coming years willdepend on the
stakes they face and on the objectives that will be assigned.The following four elements can
characterize the expected qualities of thesenetworks:

– Accessible: the networks will accommodate all generation, storage and

consumption options required for connection.

– Economic: the focus will be put on grid investment and operations that give the
greatest advantage in the use of infrastructure, allowing costs to be optimized for the
benefit of all users.

– Flexible: redundancy of paths will be increased with respect to building up newgrid

materials/equipment in order to optimize the efficiency of existing energy paths.This will allow
the grid response to be optimized with respect to users’ needs as wellas to various disturbances
affecting it while fulfilling system security, economicaland environmental requirements.

– Reliable: to ensure and increase the safety/security and quality of supply.Given the challenges
mentioned above, combined with various inherentconstraints of power grids (capital-intensive
infrastructure, difficulties of buildingnew power lines, increasing complexity, interaction with
the end user, etc.), theevolution of these grids must include the integration of some form of
intelligence instructure and management. Many countries all over the world are now
integratingthis dimension (SmartGrids in Europe, the US, China, Japan, etc.). The
introductionof this “enhanced” intelligence in distribution networks, for example, is a challenge

in itself. It can help (in the more or less short- to medium- term) if we modernizethis
infrastructure which, as we mentioned previously, had benefited less fromadvanced grid-
embedded technologies when compared to transmission systems.Obviously, this will require
investments to achieve these “quality” goals becausethere is a significant “gap” between the
current state of the grid and the targetrepresenting a more intelligent network.

References :
1. Jean Claude Sabonnadière, NouredineHadjsaïd, “Smart Grids”, Wiley Blackwell