Energy Management and Renewable Energy Integration in

Smart Grid System

Mohamed A. Mohamed1, Ali M. Eltamaly2, **, SMIEEE, Hassan M. Farh3, and Abdulrahman I. Alolah4, SMIEEE

Abstract- Smart grid is a concept by which the existing II. SMART GRID CHALLENGES
electrical grid infrastructure is being upgraded with
integration of multiple technologies such as, two-way power There are many challenges that can be addressed based on
flow, two-way communication, automated sensors, advanced smart grid technology which can be summarized in Fig.2.
automated controls and forecasting system. Smart grid enables Renewable energy integration and energy management are
interaction between the consumer and utility which allow the the major challenges for developers and practitioners of
optimal usage of energy based on environmental, price smart grid system [9]. Therefore, these challenges were our
preferences and system technical issues. This enables the grid interest in this paper. The following sections present and
to be more reliable, efficient and secure, while reducing discuss the research work on these topics.
greenhouse gases. This paper presents a survey of the recent
literature on integrating renewable energy sources into smart
grid system. Various management objectives, such as III. RENEWABLE ENERGY INTEGRATION
improving energy efficiency, maximizing utilization, reducing Renewable energy is a promising option for electricity
cost, and controlling emission have been explored.
generation especially the solar PV and wind energy systems
as they are clean energy sources and became overripe
I. INTRODUCTION technology. Today, the integration of renewable energy

N owadays, increasing energy demand and dependence on

fossil fuel become an important issue facing the world.
sources into smart grid system is increasingly gaining
importance and widely studied by many researchers [10-
Therefore, there is a big trend for the use of renewable 13]. The following sections survey the work done on
energy sources to address electricity generation. But, as the renewable energy system integration, distributed generation,
penetration of renewable energy sources increases, serious smart grid technologies and smart metering infrastructure.
improvements and modifications for the existing electric A. Renewable Energy and Smart Grid Interfacing Options
grid would be needed to accommodate and integrate these Integrating renewable energy sources into the smart grid
intermitted nature sources. system enabling reduction the cost of sources required for
Smart grid is a system to add monitoring, management, building extra generators, improved power quality,
control and communication capabilities to the national reliability and achieve the customer satisfaction [14-16].
electrical delivery infrastructure to move electricity around Geviano et al. [17] surveyed and summarized the smart grid
the system as efficiently and economically as possible [1-3]. applications for renewable energy generation and its
Many examples of smart grid system are available in many potential study in the future. The authors ensured that the
countries, such as, U.S., Germany, Canada, Japan, China communication between the electronic devices is a key
and India [4], [5]. With the use of smart grid, smart home technology in order to adapt renewable energies to the
technologies and time-varying energy pricing models, there future grid infrastructure.
is need for smart energy management system [6], [7]. This Kohsri et al. [18] presented an energy management and
system respond to varying cost of energy, by reducing or control system for smart renewable energy generation. They
shaving the peak demand automatically, reducing the used LAB-View technology as a basic design for the overall
number of required standby power plants, and saving system. Their proposed prototype is constructed of 1.8 kW
millions of dollars for the utility and user which are very PV, 18 kWh Battery and 5 kW Generator. The system itself
much possible in a smart grid scenarios [8]. A comparison can forecast and make a decision for future power
between the traditional grid and smart grid is shown in management.
Fig.1. Ayompe et al. [19] presented a validated real-time energy
Reviews of recent work in smart grid system have been models for small-scale grid-connected PV systems suitable
done to indicate the promising potential of this system in the for domestic application. The models were used to predict
future. The paper presents a survey on the recent literature real-time AC power output from a PV system in Dublin,
to study the opportunities and challenges of integrating Ireland using 30-min intervals of measured performance
renewable energy into smart grid system. A survey on smart data between April 2009 and March 2010. Their proposed
grid control, distributed generation, demand response, models are suitable for predicting PV system AC output
energy efficiency and emission control has been introduced. power at time intervals suitable for smart metering.
1, 4 B. Smart Grid Technology Development and Demonstration
Electrical Engineering Dept., King Saud University, Riyadh,
Saudi Arabia, [email protected], [email protected] Smart grid control gives the capability of maintaining
2 system operation, predicting system behavior, anticipatory
Sustainable Energy Technology Center, King Saud University,
Riyadh, Saudi Arabia, [email protected]
operation, reduce the cost of operation, handling distributed
3
College of Engineering Research Center, King Saud University, resource, security, stochastic demand and optimal response
Riyadh, Saudi Arabia, [email protected] to smart appliances [20],[21]. The self-managing and
**
Electrical Engineering Dept., Mansoura University, Mansoura, reliable smart grid is seen as the future of protection and
Egypt. control systems [22], [23].
 installations to create an endd-to-end smart grid control
•Sensors all over center. In this lab, a variety of experiments, tests, and
•Digital system validation efforts can be programmed and carried out.
•Distributed generation For a long time the term smaart grid, especially from the
•Self monitoring - Self restoration markets’ side, has been synonyymous to smart metering, the
•Two-way communication Smart Grid smart metering infrastructure being the main focus of
•Adaptive and islanding discussion involving smart gridds [26].
•Prevalence control - Remote test Smart metering can offers manny potential benefits for the
•Many customer choices customer and utility as well. For
F customer, smart metering
provides a real-time pricing, whhich enables them to manage
their energy consumptions to reeduce bills. For the utility, it
can use the customer’s demandd profile and manage the peak
•Few sensors demand shaving, outage detectiion and islanding [27].
•Electromechanical system Large amount of data and infformation will be generated
•Centralized generation from meters, monitors and othher remote digital electronic
•Manual monitoring-Manual devices, which can be reaached through a two-way
restoration Traditional communication network. Theerefore, smart grid support
•One-way communication Grid advanced information managem ment to organize these data
•Failures and blackouts and information and make them m accessible to various users
•Limited control - Manual test within the utility organization [228].
•Limited customer choices
IV. SMART ENERGY MA
ANAGEMENT SYSTEM
The Smart Energy Managem ment System (SEMS) uses
Fig.1. Comparison between traditional gridd and smart grid. advanced technologies to streaamline processes, cut down
costs, reduce energy consum mption, improving demand
•Improved profile, control carbon emissionns and enhance efficiency to
•Optimize asset
utilization & reliability & the energy industry, both to t utilities and consumers
Self healing Efficiency [29],[30]. SEMS has been firrstly classified according to
management objectives and theen according to management
Renewable
methods and tools.
Two-wayy
integration &
Energy storag
power flow A. Management Objectives
With the framework of smaart grid and SEMS, many
Smart Grid management challenges becom
me possible and easy. So far,
the works for SEMS mainlly focus on the following
Advanced
objectives:
meter Energy
infractructure ent
manageme
1) Energy Efficiency
•Increased •Reduced Minimize the system energy loss l is one of the important
energy green house objectives of the SEMS. Thherefore, Atwa et al. [31]
security & gas emissions proposed a methodology appplied to a typical rural
Power quality distribution system for optimallly allocating different types
of renewable distributed genneration (DG) units in the
Fig.2. Smart grid challenges and benefits.
b distribution system to minimiize the annual energy loss.
Their methodology is formulateed as mixed integer nonlinear
This philosophy requires finding a way to implement it in
programming (MINLP); with coonstraints include the voltage
the laboratory scale and then in the reeal power system.
limits, the feeders' capacity, thee maximum penetration limit,
Therefore, considerable number of researcches is going on in
and the discrete size of the available DG units.
this field to study and identify the issues involved in smart
Ochoa and Harrison [32] used a multi-period alternative
grid operation. Such as FREEDM system m which proposed
current optimal power flow (OP PF) to determine the optimal
by the NSF FREEDM Systems Center, Raleigh, R NC, [24].
accommodation of renewable DG D to minimizes the system
This system is a power distribution systtem that interfaces
energy losses considering timee-varying characteristics. The
with residential and industry customers.. Also, a research
authors also investigated thee trade-off between energy
development and demonstration micro-griid was installed on
losses and more generation capaacity.
the Burnaby campus of the British Columbia Institute of
Aquino-Lugo and Overbye [33] [ used the agent based
Technology (BCIT) in Vancouver, British B Columbia,
technologies to implement deceentralized control algorithms
Canada. The BCIT’s smart micro-grid iss a test bed where
to minimize power losses in thee distribution grids.
multitudes components, technologies, annd applications of
smart grid are integrated to qualify the merits
m of different 2) Demand Profile Improvement
solutions, showcase their capabilities, and
a accelerate the Demand profile shaping can beb accomplished by shifting,
commercialization of technologies and sollutions for it [25]. scheduling, or reducing dem mand in order to obtain a
The BCIT’s smart grid development Lab includes powerful smoothed demand profile, or reduce peak demand of the
servers, routers, analyzers, and networkiing equipment and total energy demand. This, in turn, will reduce the overall
integrated with multiple base stations annd smart-metering
plant and capital cost requirements, and also will increase Conejo et al. [45] described an optimization model to adjust
the system reliability [34], [35]. The following are the the hourly load level in response to hourly electricity prices.
research works related to this trend. The objective of the model is to maximize the utility of the
Caron and Kesidis [36] proposed a dynamic pricing scheme consumer subject to a minimum daily energy consumption
incentivizing consumers to achieve an aggregate load level, maximum and minimum hourly load levels, and
profile suitable for utilities, and studied how close they can ramping limits on such load levels. The authors also
get to an ideal flat profile depending on how much modeled the price uncertainty using robust optimization
information they share. In addition, they provided techniques.
distributed stochastic strategies that successfully exploit this Samadi et al. [46] proposed a novel real-time pricing
information to improve the overall load profile when users algorithm for the future smart grid and focused on the
have only access to the instantaneous total load on the grid. interactions between the smart meters and the energy
Bakker et al. [37] designed a three step control and provider through the exchange of control messages which
optimization strategy and focused on the control algorithms contain subscribers' energy consumption and the real-time
used to reshape the energy demand profile of a large group price information. Each subscriber is equipped with an
of buildings and their requirements on the smart grid. They energy consumption controller (ECC) unit as part of its
considered the amount of available communication smart meter.
bandwidth and exploited the available computation power Hatami and Pedram [47] formulated mathematically the
distributed in the grid. electrical energy bill minimization problem for cooperative
Earle et al. [38] proposed an approach to measure the networked consumers who have a single energy bill, such as
capacity impacts of demand response by California those working in a commercial/industrial building. They
Statewide Pricing Pilot (SPP). They found that the presented two different methods to minimize the energy
uncertainty of the level of response is likely to have little cost of such users under non-interruptible or interruptible
effect on the capacity and reliability value of the demand jobs. The methods relay on a quasi-dynamic pricing
response program. function for unit of energy consumed, which comprises of a
Kishore and Snyder [39] first presented a simple base price and a penalty term. The methods minimize the
optimization model for determining the timing of appliance energy cost of the users while meeting all the scheduling
operation to take advantage of lower electricity rates during constraints and heeding the pricing function.
off-peak periods. They proposed a distributed scheduling Guan et al. [48] considered the scheduling problem of
mechanism to reduce peak demand within a neighborhood building energy supplies with the practical background of a
of homes. Their mechanism provides homes a guaranteed low energy building. The objective function is to minimize
base level of power and allows them to compete for the overall cost of electricity and natural gas for a building
additional power to meet their needs. Finally, they operation over a time horizon while satisfying the energy
introduced a more powerful energy management controllers balance and complicated operating constraints of individual
(EMCs) optimization model, based on dynamic energy supply equipment and devices.
programming, which accounts for the potential for In [49], [50] the authors focused on two of demand load
electricity capacity constraints. control methods that aim at minimizing the grid operational
Mohsenian-Rad and Leon-Garcia [40] proposed an optimal cost. They considered online scheduling of power demand
and automatic residential energy consumption scheduling tasks that have time flexibility in being activated, in terms
framework, which attempts to achieve a desired trade-off of a deadline. In addition, they discussed the use of stored
between customers who are more willing to reduce their energy for serving part of the demand at peak load times.
aggregate demand over the entire horizon, rather than Price stabilization is also an important topic in smart grid
shifting their load to off-peak periods, which tend to receive technology, as a cause of the volatility and instability of the
higher incentives, and vice versa. wholesale market prices. Roozbehani et al. [51] proposed a
Ibars et al. [41] used the network congestion game to mechanism for real-time pricing of electricity in smart
smooth the electric load curve and avoid grid overloading. power grids, with price stability as the primary concern.
In this game each user allocates demand as a response to They developed a mathematical model for characterization
other users actions. of the dynamic evolution of supply, demand, and market
Ghosh et al. [42] developed an optimization mechanism clearing prices under real-time pricing. It is assumed that
incentivizing the energy customers. This mechanism the real-time prices for retail consumers are derived from
depends on the trade-off between minimizing the electricity the Locational Marginal Prices (LMPs) of the wholesale
bills and minimizing the waiting time for the operation of balancing markets.
each device. Joe-Wong, et al. [52] presented a stabilizing pricing
Mohsenian-Rad et al. [43] discovered that by adopting algorithm and proposed a mathematical scheme for
pricing tariffs which differentiate the energy usage in time characterizing the dynamic evolution of utility loads and
and level, the global optimal performance is achieved at market clearing prices under real-time pricing.
Nash equilibrium of the formulated energy consumption
4) Emission Control
scheduling game.
Emission control is an important management objective in
3) Cost Optimization, and Price Stabilization the electric power industry and has a significant influence
Increasing profit, reducing cost and improving utility, are on environment protection. Therefore, many researchers
also an important management challenges. Researchers have investigated how to optimize emission reduction.
realize these challenges in various levels and from various Bakker et al. [53] presented a three step control strategy to
perspectives [44], such as literatures on individual user bill, optimize the overall energy efficiency and increase
profit and cost of electricity industry. For an example, generation from renewable resources with the ultimate goal
to reduce the CO2 emission caused by electricity the system consisting of both thermal generators and WTs
generation. using stochastic programming. The stochastic wind power is
In [54] Saber and Venayagamoorthy presented cost and included in the model as a constraint.
emission reductions in a smart grid by maximum utilization
2) Game Theory
of gridable vehicles (GVs) and renewable energy sources
(RESs). They presented possible models for GV Game theory is one of the strong analysis tools used for
applications, including the smart grid model; these models smart grid management. Because of the inability to predict
offer the best potential for maximum utilization of RESs to the extent of users cooperative. With the use of game
reduce cost and emission from the electricity industry. theory, effective schemes can be designed to cope with this
Liu and Xu [55] developed a load dispatch model to case. For example, Ibars et al. [65] proposed a distributed
minimize the emission due to oxides of nitrogen (NOx). solution based on a network congestion game, which can be
This model takes into account both thermal generators and demonstrated to converge in a finite number of steps to a
WTs. They derived a closed-form in terms of the pure Nash equilibrium solution. Their favorable result is
incomplete gamma function (IGF) to characterize the that the optimal local solution of each selfish consumer is
impact of wind power. The model is implemented in a also the solution of a global objective.
computer program and a set of numerical experiments for a 3) Machine Learning
standard test system is reported.
Machine learning used to design and development
B. Management Methods and Tools algorithms which allow control systems to release behaviors
As seen above, management objectives are more important based on empirical data, such as the data of phasor
as a result of their great effect both on utility and measurement unit (PMU). Researchers believed that
consumers. Therefore researchers have adopted various machine learning will play an important role in the analysis
methods and tools to solve these objectives. Currently, and processing of user data and grid states.
researchers mainly use optimization approaches, game In [66] Fang et al. used online machine learning to find the
theory and machine learning to solve these objectives. Next, one among the distributed renewable energy resources
some of the research works related to this topic. (DRERs) in a microgrid, which can supply the power most
efficiently, effectively and reliably, as its power supply
1) Optimization Approaches source. In order to solve this problem, they first proposed a
Convex programming and dynamic programming are the distributed DRER discovery approach to discover all the
commonly used mathematical tools for optimization. available DRERs within a microgrid. Furthermore, they
Kallitsis et al. [56] for an example, proposed a framework proposed two distributed algorithms according to the
using convex programming for coupling the communication information the user can obtain, in order to compute a good
network of a smart grid with the power distribution network DRER access strategy, with no assumption on what
in an effort to better utilize the scarce energy resources. distribution the power patterns of the DRERs follow.
Sortomme et al. [57] developed three optimal charging
algorithms to minimize the impacts of plug-in hybrid V. CONCLUSION
vehicle (PHEV) charging on the connected distribution
The power system operators and planners still face the
system using convex programming.
challenge of deep integrating renewable energy sources into
Anderson et al. [58] demonstrated the load and source
the electricity grid. This challenge offers a rich set of
control necessary to optimize management of distributed
research problems, many of which require systems,
generation and storage within the smart grid using
programs and control methods in their solution. Smart grid
approximate dynamic programming (ADP) driven.
incorporates multiple technologies to form an intelligent
Han et al. [59] proposed an aggregator that makes efficient
system aims at achieve this challenge. Due to the potential
use of the distributed power of electric vehicles to produce
importance of smart grid, this paper introduced a survey on
the desired grid-scale power for vehicle-to-grid (V2G)
the smart grid challenges, technologies, optimization and
frequency regulation services. They applied the dynamic
the smart management system. This survey explores the
programming algorithm to compute the optimal charging
challenges and technologies used in integrating smart grid
control for each vehicle. Newsham et al. [60] and Faruqui et
with renewable energy sources and achieve the demand side
al. [61] presented a methodology for quantifying the
management. For the smart grid integration, the works on
benefits of dynamic pricing programs to customers and
implementation of smart grid renewable energy system,
utilities and also they proposed an approach for quantifying
distributed generation, smart grid technologies and smart
customer response to dynamic pricing.
metering system have been reviewed. For demand side
Cui et al. [62] proposed a dynamic pricing framework
management, The works on improving energy efficiency,
incentivizing users to create full load profile appropriate for
demand profile improvement, reduce costs and emissions,
them and utilities, and almost approaching to an ideal flat
real time pricing, economic dispatch, load forecasting, load
profile.
shifting and increase utility, based on the advanced smart
Other optimization techniques are used in the case of a
grid smart infrastructure have been reviewed. In summary,
time-varying process (i.e. renewable energy sources), such
there is no doubt that within the advanced framework of
as, robust programming, stochastic programming and PSO.
smart grid, many challenges, services and applications
Clement-Nyns et al. [63] proposed coordinated charging
which are tricky to be achieved in existing power grids,
using stochastic programming to minimize the power losses
have become more easy and possible which will lead to a
and to maximize the main grid load factor. They computed
more environmentally sound future, better power supply
the optimal charging profile of PHEV by minimizing the
services, and full improvement in our daily lives.
power losses. Liu [64] developed a load dispatch model for
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