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Contents 1 Overview 2 History 2.1 First cities with smart grids 3 Problem definition 4 Smart grid functions 4.1 Self-healing 4.2 Consumer participation 4.3 Resist attack 4.4 High quality power 4.5 Accommodate generation options 4.6 Enable electricity market 4.7 Optimize assets 5 Features 5.1 Load adjustment 5.2 Demand response support 5.3 Greater resilience to loading 5.4 Decentralization of power generation 5.5 Price signaling to consumers 6 Technology 6.1 Integrated communications 6.2 Sensing and measurement 6.2.1 Smart meters 6.2.2 Phasor measurement units 6.3 Advanced Components 6.4 Advanced control 6.5 Improved interfaces and decision support 6.6 Standards and groups 7 Government policy 7.1 Countries 7.1.1 Canada 7.1.2 China 7.1.3 European Union 7.1.4 United States 7.2 Obstacles 7.3 General economics developments 8 See also 9 Footnotes 10 External links

A smart grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce cost and increase reliability. Such a modernized electricity network is being promoted by many governments as a way of addressing energy independence or global warming issues.

In 2009, SmartGrid companies may represent one of the biggest and fastest growing sectors in the GreenTech market.^[1]

President Barack Obama asked the United States Congress "to act without delay" to pass legislation that included doubling alternative energy production in the next three years and building a new electricity "smart grid". ^[2]

Europe is also following a similar "vision". At this point it might be worth noting that in fact there is no such thing as a "grid" but two networks. The first being an actively managed transmission network usually operating at around 400kV (or more in some countries) the other the distribution network, operating at below 132kV. Given that transmission networks are already controlled in real time, much of the focus (rightly or wrongly) is on the distribution network.

[edit] Overview

Simply and clearly stated, a smart grid is an effort to prod consumers of electricity to change their behavior around variable electric rates or to pay vastly increased rates for the privilege of reliable electrical service during high demand conditions, and reduced rates during low demand conditions. To accomplish this objective, a smart grid incorporates consumer equipment and behavior in grid design, operation, and communication technologies. So as to reduce demand during peak usage periods, means are adopted using communications and metering technologies to track not only how much electricity was used, but when that electricity was used, and to then increase prices of electricity used during high demand periods, and decrease it during low demand periods. So as to encourage consumers to consume less during high demand periods, means are adopted to indicate to consumers when the price of electricity is about to go up, or to go down, and to adjust their electricity demands accordingly, and to take advantage of the prevailing rates of the time period.

According to proponents of smart grid schemes, this will reduce the amount of spinning reserve that electric utilities have to keep on stand-by, as the load curve will level itself through the operation of the "invisible hand" of free-market capitalism, and thus reduce electrical costs to everyone. Supporters of renewable energy favor it, because most renewable energy sources - to date - are intermittent in nature, depending on natural phenomena (the sun and the wind) to generate power. Thus, any type of power infrastructure using a significant portion of intermittent renewable energy resources must have means of effectively reducing electrical demand by shedding loads in the event that the natural phenomena necessary to generate power do not occur. By increasing electricity prices when the desired natural phenomena are not present, consumers will, in theory, be encouraged to decrease consumption, and enable wider use of renewable energy resources.

The concept of a smart grid - where consumers are prodded to consume at specified times - and not consume during others - is a vision in stark contrast to the historical concept of an intelligent electrical grid - one that has been demonstrated by the utilities operating it in the spirit of public service and shared responsibility, ensuring constant availability of electricity at a constant price, day in and day out, in the face of any and all hazards and changing conditions. A smart grid represents the end of that commitment.

Some proponents argue that a smart grid enables consumers to better control (or be controlled by) “smart appliances” and “intelligent equipment” in homes and businesses, interconnecting energy management systems in “smart buildings” that will "enable" consumers to "better manage" energy use and reduce energy costs. Advanced communications capabilities equip customers with tools to exploit (or be exploited by) real-time electricity pricing, "incentive-based" load reduction signals, or emergency load reduction signals. The concept of a smart grid is that of a "digital upgrade" of distribution and long distance transmission grids to both optimize current operations, as well as open up new markets for alternative energy production.

As with other industries, use of robust two-way communications, advanced sensors, and distributed computing technology will improve the efficiency, reliability and safety of power delivery and use. One United States Department of Energy study calculated that internal modernization of US grids with smart grid capabilities would save between 46 and 117 billion dollars over the next 20 years^[3]. As well as these industrial modernization benefits, smart grid features could expand energy efficiency beyond the grid into the home by coordinating low priority home devices such as water heaters so that their use of power takes advantage of the most desirable energy sources. Smart grids can also coordinate the production of power from large numbers of small power producers such as owners of rooftop solar panels — an arrangement that would otherwise prove problematic for power systems operators at local utilities.

The above vision makes two assumptions. First with respect to consumer behaviour: that they will act in response to market signals) and that household appliances and there needs to be some sort of telecommunications network. In the UK, where consumers have for nearly 10 years had a choice in the company from which they purchase electricity, more than 80% have stayed with their existing supplier, despite the fact that there are significant differences in the prices offered by a given electricity supplier. Point: that end users may be less responsive to price signals than proponents of Smart Grids think. Second, in the case of the telecomms aspect of Smart Grids, this ignores the possibility of bringing autonomy to a given appliance. Various companies (such as RLTec) have developed low cost systems which allow products to react to network fluctuations (usually network frequency). This type of control is called "dynamic demand management". A feature of DDM being that, it is low cost, needs no telecomms network and is available now. Of course these are not points which proponents of a "power telecomms network" may wish to hear about or indeed see propogated.

Although there are specific and proven smart grid technologies in use, smart grid is an aggregate term for a set of related technologies on which a specification is generally agreed, rather than a name for a specific technology. Some of the benefits of such a modernized electricity network include the ability to reduce power consumption at the consumer side during peak hours, called Demand side management; enabling grid connection of distributed generation power (with photovoltaic arrays, small wind turbines, micro hydro, or even combined heat power generators in buildings); incorporating grid energy storage for distributed generation load balancing; and eliminating or containing failures such as widespread power grid cascading failures. The increased efficiency and reliability of the smart grid is expected to save consumers money and help reduce CO₂ emissions.

Smart grid is referred to by other names including Smart Electric Grid, Smart Power Grid, Intelligent Grid/Intelligrid, and FutureGrid.

[edit] History

Today's alternating current power grid evolved after 1896, based in part on Nikola Tesla's design published in 1888 (see War of Currents). Many implementation decisions that are still in use today were made for the first time using the limited emerging technology available 120 years ago. Specific obsolete power grid assumptions and features (like centralized unidirectional[1] electric power transmission, electricity distribution, and demand-driven control) represent a vision of what was thought possible in the 19th century. Tesla and Thomas Edison might feel baffled by the workings of today's cell phones and laptops, but would feel in a very familiar world when observing the design, components and technologies used in today's grids.^{[original research?]}

Part of this is due to an institutional risk aversion that utilities naturally feel regarding use of untested technologies on a critical infrastructure they have been charged with defending against any failure, however momentary.^{[citation needed]}

Over the past 50 years, electricity networks have not kept pace with modern challenges, such as:

• security threats, from either energy suppliers or cyber attack
• national goals to employ alternative power generation sources whose intermittent supply makes maintaining stable power significantly more complex
• conservation goals that seek to lessen peak demand surges during the day so that less energy is wasted in order to ensure adequate reserves
• high demand for an electricity supply that is un-interruptible
• digitally controlled devices that can alter the nature of the electrical load and result in electricity demand that is incompatible with a power system that was built to serve an “analog economy.” For a simple example, timed Christmas lights can present significant surges in demand because they come on at near the same time (sundown or a set time).^{[citation needed]} Without the kind of coordination that a smart grid can provide, the increased use of such devices lead to electric service reliability problems, power quality disturbances, blackouts, and brownouts^[4].

The above points tend to fall into the class "conventional wisdom" with respect to smart grids. However, several are of questionable validity. For example, despite the weaknesses of power network being publicly broadcast through newspapers etc there has NEVER been a single attack on a power network in the USA or Europe. However, in April 2009 it was learned that spies had infiltrated the power grids, perhaps as a means to attack the grid at a later time. In the case of renewable power and its variability, recent work undertaken in Europe (Dr Bart Ummels et al) suggests that a given power network can take up to 30% renewables (wind etc) without any changes whatsoever. This view is also borne out by Danish experience. The Christmas tree light example is interesting but could be cured by the simple expedient of fitting dynamic demand mangement systems to all such lights.

Smart grid technologies have 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.^[5] 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 such smart meters connected via low bandwidth power line communication^[6]. Recent projects use broader bandwidth power line (BPL) communications, or wireless technologies such as mesh networking that is advocated as providing more reliable connections to disparate devices in the home as well as supporting metering of other utilities such as gas and water^{[citation needed]}.

Monitoring and synchronization of wide area networks were revolutionized 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^[7]. Other countries are rapidly integrating this technology — China will have a comprehensive national WAMS system when its current 5-year economic plan is complete in 2012^[8].

[edit] First cities with smart grids

The earliest, and still largest, example of a smart grid is the Italian system installed by Enel S.p.A. of Italy. Completed in 2005, the Telegestore project was highly unusual in the utility world because the company designed and manufactured their own meters, acted as their own system integrator, and developed their own system software. The Telegestore project is widely regarded as the first commercial scale use of smart grid technology to the home, and delivers annual savings of 500 million € at a project cost of 2.1 billion €.^[6].

In the US, the city of Austin, Texas has been working on building its smart grid since 2003, when its utility first replaced 1/3 of its manual meters with smart meters that communicate via a wireless mesh network. It currently manages 200,000 devices real-time (smart meters, smart thermostats, and sensors across its service area), and expects to be supporting 500,000 devices real-time in 2009^[9]. Boulder, Colorado completed the first phase of its smart grid project in August 2008. Both systems use the smart meter as a gateway to the home automation network (HAN) that controls smart sockets and devices. Some HAN designers favor decoupling control functions from the meter, out of concern of future mismatches with new standards and technologies available from the fast moving business segment of home electronic devices^[10].

Hydro One, in Ontario, Canada is in the midst of a large-scale Smart Grid initiative, deploying a standards-compliant communications infrastructure from Trilliant. By the end of 2010, the system will serve 1.3 million customers in the province of Ontario. The initiative won the "Best AMR Initiative in North America" award from the Utility Planning Network. ^[11]

[edit] Problem definition

The major driving forces to modernize current power grids can be divided in four, general categories.

• Increasing reliability, efficiency and safety of the power grid.
• Enabling decentralized power generation so homes can be both an energy client and supplier (provide consumers with interactive tool to manage energy usage).
• Flexibility of power consumption at the clients side to allow supplier selection (enables distributed generation, solar, wind, biomass).
• Increase GDP by creating more new, green-collar energy jobs related to renewable energy industry manufacturing, plug-in electric vehicles, solar panel and wind turbine generation, energy conservation construction^[12][13].

[edit] Smart grid functions

Before examining particular technologies, a proposal can be understood in terms of what it is being required to do. The governments and utilities funding development of grid modernization have defined the functions required for smart grids. According to the United States United States Department of Energy's Modern Grid Initiative report^[13], a modern smart grid must:

1. Be able to heal itself
2. Motivate consumers to actively participate in operations of the grid
3. Resist attack
4. Provide higher quality power that will save money wasted from outages
5. Accommodate all generation and storage options
6. Enable electricity markets to flourish
7. Run more efficiently

[edit] Self-healing

Using real-time information from embedded sensors and automated controls to anticipate, detect, and respond to system problems, a smart grid can automatically avoid or mitigate power outages, power quality problems, and service disruptions.

As applied to distribution networks, there is no such thing as a "self healing" network. If there is a failure of an overhead power line, given that these tend to operate on a radial basis (for the most part) there is an inevitable loss of power. In the case of urban/city networks that for the most part are fed using underground cables, networks can be designed (through the use of interconnected topologies) such that failure of one part of the network will result in no loss of supply to end users. A fine example of an interconnected network using zoned protection is that of the Merseyside and North Wales Electricity Board (MANWEB).

[edit] Consumer participation

A smart grid, is, in essence, an attempt to require consumers to change their behavior around variable electric rates or to pay vastly increased rates for the privilege of reliable electrical service during high-demand conditions. Historically, the intelligence of the grid in North America has been demonstrated by the utilities operating it in the spirit of public service and shared responsibility, ensuring constant availability of electricity at a constant price, day in and day out, in the face of any and all hazards and changing conditions. A smart grid incorporates consumer equipment and behavior in grid design, operation, and communication. This enables consumers to better control (or be controlled by) “smart appliances” and “intelligent equipment” in homes and businesses, interconnecting energy management systems in “smart buildings” and enabling consumers to better manage energy use and reduce energy costs. Advanced communications capabilities equip customers with tools to exploit real-time electricity pricing, incentive-based load reduction signals, or emergency load reduction signals.

There is marketing evidence of consumer demand for greater choice. A survey conducted in the summer of 2007 interviewed almost 100 utility executives and sought the opinions of 1,900 households and small businesses from the U.S., Germany, Netherlands, England, Japan and Australia^[14]. Among the findings:

1. 83% of those who cannot yet choose their utility provider would welcome that option
2. Roughly two-thirds of the customers that do not yet have renewable power options would like the choice
3. Almost two-thirds are interested in operating their own generation, provided they can sell power back to the utility

And as already noted, in the UK where the experiment has been running longest, 80% have no interest in change (source: National Grid).

The real-time, two-way communications available in a smart grid will enable consumers to be compensated for their efforts to save energy and to sell energy back to the grid through net-metering. By enabling distributed generation resources like residential solar panels, small wind and plug-in electric vehicles, smart grid will spark a revolution in the energy industry by allowing small players like individual homes and small businesses to sell power to their neighbors or back to the grid. The same will hold true for larger commercial businesses that have renewable or back-up power systems that can provide power for a price during peak demand events, typically in the summer when air condition units place a strain on the grid. This participation by smaller entities has been called the "democratization of energy"^{[citation needed]}};— it is similar to former Vice President Al Gore's vision for a Unified Smart Grid.

[edit] Resist attack

Smart grid technologies better identify and respond to man-made or natural disruptions. Real-time information enables grid operators to isolate affected areas and redirect power flows around damaged facilities.

[edit] High quality power

Outages and power quality issues cost US businesses more than $100 billion on average each year^[15]. It is asserted that assuring cleaner, more stable power, provided by smart grid technologies will reduce downtime and prevent such high losses.

[edit] Accommodate generation options

As smart grids continue to support traditional power loads they also seamlessly interconnect fuel cells, renewables, microturbines, and other distributed generation technologies at local and regional levels. Integration of small-scale, localized, or on-site power generation allows residential, commercial, and industrial customers to self-generate and sell excess power to the grid with minimal technical or regulatory barriers. This also improves reliability and power quality, reduces electricity costs, and offers more customer choice.

[edit] Enable electricity market

Significant increases in bulk transmission capacity will require improvements in transmission grid management. Such improvements are aimed at creating an open marketplace where alternative energy sources from geographically distant locations can easily be sold to customers wherever they are located.

Intelligence in distribution grids will enable small producers to generate and sell electricity at the local level using alternative sources such as rooftop-mounted photo voltaic panels, small-scale wind turbines, and micro hydro generators. Without the additional intelligence provided by sensors and software designed to react instantaneously to imbalances caused by intermittent sources, such distributed generation can degrade system quality.

[edit] Optimize assets

A smart grid can optimize capital assets while minimizing operations and maintenance costs. Optimized power flows reduce waste and maximize use of lowest-cost generation resources. Harmonizing local distribution with interregional energy flows and transmission traffic improves use of existing grid assets and reduces grid congestion and bottlenecks, which can ultimately produce consumer savings.

[edit] Features

Existing and planned implementations of smart grids provide a wide range of features to perform the required functions.

[edit] Load adjustment

The total load connected to the power grid can vary significantly over time. Although the total load is the sum of many individual choices of the clients, the overall load is not a stable, slow varying, average power consumption. Imagine the increment of the load if a popular television program starts and millions of televisions will draw current instantly. Traditionally, to respond to a rapid increase in power consumption, faster than the start-up time of a large generator, some spare generators are put on a dissipative standby mode^{[citation needed]}. A smart grid may warn all individual television sets, or another larger customer, to reduce the load temporarily (to allow time to start up a larger generator) or continuously (in the case of limited resources). Using mathematical prediction algorithms it is possible to predict how many standby generators need to be used, to reach a certain failure rate. In the traditional grid, the failure rate can only be reduced at the cost of more standby generators. In a smart grid, the load reduction by even a small portion of the clients may eliminate the problem.

[edit] Demand response support

Demand response support allows generators and loads to interact in an automated fashion in real time, coordinating demand to flatten spikes. Eliminating the fraction of demand that occurs in these spikes eliminates the cost of adding reserve generators, cuts wear and tear and extends the life of equipment, and allows users to cut their energy bills by telling low priority devices to use energy only when it is cheapest^[16].

Currently, power grid systems have varying degrees of communication within control systems for their high value assets, such as in generating plants, transmission lines, substations and major energy users. In general information flows one way, from the users and the loads they control back to the utilities. The utilities attempt to meet the demand and succeed or fail to varying degrees (brownout, rolling blackout, uncontrolled blackout). The total amount of power demand by the users can have a very wide probability distribution which requires spare generating plants in standby mode to respond to the rapidly changing power usage. This one-way flow of information is expensive; the last 10% of generating capacity may be required as little as 1% of the time, and brownouts and outages can be costly to consumers.

[edit] Greater resilience to loading

Although multiple routes are touted as a feature of the smart grid, the old grid also featured multiple routes. Initial power lines in the grid were built using a radial model, later connectivity was guaranteed via multiple routes, referred to as a network structure. However, this created a new problem: if the current flow or related effects across the network exceed the limits of any particular network element, it could fail, and the current would be shunted to other network elements, which eventually may fail also, causing a domino effect. See power outage. A technique to prevent this is load shedding by rolling blackout or voltage reduction (brownout).^{[citations needed]}

[edit] Decentralization of power generation

Another element of fault tolerance of smart grids is decentralized power generation. Distributed generation allows individual consumers to generate power onsite, using whatever generation method they find appropriate. This allows individual loads to tailor their generation directly to their load, making them independent from grid power failures. Classic grids were designed for one-way flow of electricity, but if a local sub-network generates more power than it is consuming, the reverse flow can raise safety and reliability issues. A smart grid can manage these situations.^{[citations needed]}

[edit] Price signaling to consumers

In many countries, including Belgium, the Netherlands and the UK, the electric utilities have installed double tariff electricity meters in many homes to encourage people to use their electric power during night time or weekends, when the overall demand from industry is very low. During off-peak time the price is reduced significantly, primarily for heating storage radiators or heat pumps with a high thermal mass, but also for domestic appliances. This idea will be further explored in a smart grid, where the price could be changing in seconds and electric equipment is given methods to react on that. Also, personal preferences of customers, for example to use only green energy, can be incorporated in such a power grid.^{[citations needed]}

[edit] Technology

The bulk of smart grid technologies are already used in other applications such as manufacturing and telecommunications and are being adapted for use in grid operations. In general, smart grid technology can be grouped into five key areas^[17]:

[edit] Integrated communications

Some communications are up to date, but are not uniform because they have been developed in an incremental fashion and not fully integrated. In most cases, data is being collected via modem rather than direct network connection. Areas for improvement include: substation automation, demand response, distribution automation, supervisory control and data acquisition (SCADA), energy management systems, wireless mesh networks and other technologies, power-line carrier communications, and fiber-optics. Integrated communications will allow for real-time control, information and data exchange to optimize system reliability, asset utilization, and security.

[edit] Sensing and measurement

Core duties are evaluating congestion and grid stability, monitoring equipment health, energy theft prevention, and control strategies support. Technologies include: advanced microprocessor meters (smart meter) and meter reading equipment, wide-area monitoring systems, dynamic line rating, electromagnetic signature measurement/analysis, time-of-use and real-time pricing tools, advanced switches and cables, backscatter radio technology, and Digital protective relays.

[edit] Smart meters

A smart grid replaces analog mechanical meters with digital meters that record usage in real time. Smart meters are similar to Advanced Metering Infrastructure meters and provide a communication path extending from generation plants to electrical outlets (smart socket) and other smart grid-enabled devices. By customer option, such devices can shut down during times of peak demand.^{[citation needed]}

[edit] Phasor measurement units

High speed sensors called PMUs distributed throughout their network can be used to monitor power quality and in some cases respond automatically to them. Phasors are representations of the waveforms of alternating current, which ideally in real-time, are identical everywhere on the network and conform to the most desirable shape. In the 1980s, it was realized that the clock pulses from global positioning system (GPS) satellites could be used for very precise time measurements in the grid. With large numbers of PMUs and the ability to compare shapes from alternating current readings everywhere on the grid, research suggests that automated systems will be able to revolutionize the management of power systems by responding to system conditions in a rapid, dynamic fashion^[18].

A Wide-Area Measurement Systems (WAMS) is a network of PMUS that can provide real-time monitoring on a regional and national scale. Many in the power systems engineering community believe that the Northeast blackout of 2003 would have been contained to a much smaller area if a wide area phasor measurement network was in place^[19].

[edit] Advanced Components

Innovations in superconductivity, fault tolerance, storage, power electronics, and diagnostics components are changing fundamental abilities and characteristics of grids. Technologies within these broad R&D categories include: flexible alternating current transmission system devices, high voltage direct current, first and second generation superconducting wire, high temperature superconducting cable, distributed energy generation and storage devices, composite conductors, and “intelligent” appliances.^{[citations needed]}

[edit] Advanced control

Power system automation enables rapid diagnosis of and precise solutions to specific grid disruptions or outages. These technologies rely on and contribute to each of the other four key areas. Three technology categories for advanced control methods are: distributed intelligent agents (control systems), analytical tools (software algorithms and high-speed computers), and operational applications (SCADA, substation automation, demand response, etc). Using artificial intelligence programming techniques, Fujian power grid in China created a wide area protection system that is rapidly able to accurately calculate a control strategy and execute it^[20]. The Voltage Stability Monitoring & Control (VSMC) software uses a sensitivity-based successive linear programming method to reliably determine the optimal control solution^[21].

[edit] Improved interfaces and decision support

Information systems that reduce complexity so that operators and managers have tools to effectively and efficiently operate a grid with an increasing number of variables. Technologies include visualization techniques that reduce large quantities of data into easily understood visual formats, software systems that provide multiple options when systems operator actions are required, and simulators for operational training and “what-if” analysis.

[edit] Standards and groups

IEC TC57 has created a family of international standards that can be used as part of the smart grid. These standards include IEC61850 which is an architecture for substation automation, and IEC 61970/61968 — the Common Information Model (CIM). The CIM provides for common semantics to be used for turning data into information.

MultiSpeak has created a specification that supports distribution functionality of the smart grid. MultiSpeak has a robust set of integration definitions that supports nearly all of the software interfaces necessary for a distribution utility or for the distribution portion of a vertically integrated utility. MultiSpeak integration is defined using extensible markup language (XML) and web services.

The IEEE has created a standard to support synchrophasors — C37.118.

A User Group that discusses and supports real world experience of the standards used in smart grids is the UCA International User Group.

There is a Utility Task Group within LonMark International, which deals with smart grid related issues.

[edit] Government policy

[edit] Countries

[edit] Canada

The government of Ontario, Canada, through the Energy Conservation Responsibility Act in 2006, has mandated the installation of Smart Meters in all Ontario businesses and households by 2010.

[edit] China

As part of its current 5-year plan, China is building a Wide Area Monitoring system (WAMS) and by 2012 plans to have PMU sensors at all generators of 300 megawatts and above, and all substations of 500 kilovolts and above. All generation and transmission is tightly controlled by the state, so standards and compliance processes are rapid. Requirements to use the same PMUs from the same Chinese manufacturer and stabilizers conforming to the same state specified are strictly adhered to. All communications are via broadband using a private network, so data flows to control centers without significant time delays^[8].

[edit] European Union

Development of smart grid technologies is part of the European Technology Platform (ETP) initiative and is called the SmartGrids Technology platform [2]. The SmartGrids European Technology Platform for Electricity Networks of the Future began its work in 2005. Its aim is to formulate and promote a vision for the development of European electricity networks looking towards 2020 and beyond^{[22][citation needed]}.

[edit] United States

Support for smart grids became federal policy with passage of the Energy Independence and Security Act of 2007^[23]. The law, Title13, sets out $100 million in funding per fiscal year from 2008–2012, establishes a matching program to states, utilities and consumers to build smart grid capabilities, and creates a Grid Modernization Commission to assess the benefits of Demand response and to recommend needed protocol standards^[24]. The Energy Independence and Security Act of 2007 directs the National Institute of Standards and Technology to coordinate the development of smart grid standards, which FERC would then promulgate through official rulemakings. ^[25]

Smart grids received further support with the passage of the American Recovery and Reinvestment Act of 2009, which set aside $11 billion for the creation of a smart grid.^{[citation needed]}

The Federal Energy Regulatory Commission (FERC) issued a proposed policy statement and action plan on March 19 2009 for standards governing the development of a smart grid. However, FERC notes that the electric industry is already moving ahead with smart grid technologies, so it is proposing to establish some general principles that the smart grid standards should follow. FERC is also looking at the growth in clean energy, so the commission wants to be sure that smart grids will better accommodate renewable energy resources, demand response systems, energy storage systems, and electric vehicles. For electric vehicles, FERC at least wants the smart grid to allow charging during times of low power demand, but ideally the commission would like the smart grid to accommodate vehicle-to-grid technologies, which would use the nation's electric vehicles as a vast, distributed, energy storage system.^[26]

[edit] Obstacles

In Europe and the US, significant impediments exist to the widespread adoption of smart grid technologies, including:

• regulatory environments that don't reward utilities for operational efficiency,
• consumer concerns over privacy,
• social concerns over "fair" availability of electricity,
• limited ability of utilities to rapidly transform their business and operational environment to take advantage of smart grid technologies.

Before a utility installs an advanced metering system, or any type of smart system, it must make a business case for the investment. Some components, like the Power System Stabilizers (PSS) installed on generators are very expensive, require complex integration in the grid's control system, are needed only during emergencies, but are only of effective if other suppliers on the network have them. Without any incentive to install them, power suppliers don't^[8]. Most utilities find it difficult to justify installing a communications infrastructure for a single application (e.g. meter reading). Because of this, a utility must typically identify several applications that will use the same communications infrastructure – for example, reading a meter, monitoring power quality, remote connection and disconnection of customers, enabling demand response, etc. Ideally, the communications infrastructure will not only support near-term applications, but unanticipated applications that will arise in the future. Regulatory or legislative actions can also drive utilities to implement pieces of a smart grid puzzle. Each utility has a unique set of business, regulatory, and legislative drivers that guide its investments. This means that each utility will take a different path to creating their smart grid and that different utilities will create smart grids at different adoption rates.

Some features of smart grids draw opposition from industries that currently are, or hope to provide similar services. An example is competition with cable and DSL Internet providers from broadband over powerline internet access. Providers of SCADA control systems for grids have intentionally designed proprietary hardware, protocols and software so that they cannot inter-operate with other systems in order to tie its customers to the vendor^[8].

[edit] General economics developments

As customers can choose their electricity suppliers, depending on their different tariff methods, the focus of transportation costs will be increased. Reduction of maintenance and replacements costs will stimulate more advanced control.

A smart grid precisely limits electrical power down to the residential level, network small-scale distributed energy generation and storage devices, communicate information on operating status and needs, collect information on prices and grid conditions, and move the grid beyond central control to a collaborative network^[19].

[edit] See also

• Charging station
• Power line communication
• Unified Smart Grid (USA)
• SuperSmart Grid
• Super Grid
• Wide area synchronous grid
• Pickens plan
• Vehicle-to-grid

[edit] Footnotes

[edit] External links

• Video Lecture: Computer System Security: Technical and Social Challenges in Creating a Trustworthy Power Grid, University of Illinois at Urbana-Champaign
• Video Lecture: Smart Grid: Key to a Sustainable Energy Infrastructure, University of Illinois at Urbana-Champaign
• Smart Grid News Free bi-monthly news letter with information on Smart Metering and the Smart Grid
• Google Map of AMI & Smart Metering Programmes across the World. Maintained by Smart Metering Project Team at the Energy Retail Association in the UK.
• Similar Google Map showing North American Initiatives categorized by AMR/AMI/Smart Grid Data provided by Enernex, map created by Energy Retail Association project team in the UK.
• How the Smart Grid will recharge Plug-In Electric Hybrids
• [3] Smart Grid Takes Off, Sustainable Industries Magazine.
• [4] Power meters help homeowners track and cut their energy use, The Christian Science Monitor.
• Latest News in Smart Grid and Smart Metering
• Smart Metering and Smart Grids: Intelligent Technology for Utilities
• Who's Who in Smart Grid and Smart Metering

v • d • e Modernizing the Electrical grid Proposals EU: SuperSmart Grid  · Smartgrids Technology Platform  · USA: Unified Smart Grid  · Pickens plan super grid  · Electranet Efficient energy use Smart grid · Smart meter · Nonintrusive load monitoring · Demand response · Demand management · Dynamic demand  · Negawatts Challenge: Intermittency sources: Ocean  · Solar  · Wind  · Micro hydro  · solutions: Super grid  · Grid storage · Vehicle to grid · Distributed generation Other technologies/ concepts: HVDC bulk transmission  · FACTS  · Power line communication  · Phasor measurement unit · Load following · Load control  · Peak demand Policies Renewable energy policy  · Feed-in Tariff · Net metering  · Renewable Energy Certificates · Renewable energy payments  · Soft energy path · Carbon capture and storage Related Issues Energy security · Climate change · United States energy independence · Peak oil · Energy crisis · Renewable energy commercialization · Rural electrification Categories: National electric power policy  · Planned or proposed energy projects · Electricity distribution · Electricity economics Portals: Energy  · Sustainable development

v • d • e Electricity generation Concepts Availability factor · Baseload · Black start · Capacity factor · Dark spread · Demand management · EROEI · Grid storage · Intermittency · Load following · Peak demand · Spark spread Sources Nonrenewable Coal · Natural gas · Petroleum · Nuclear · Oil shale Renewable Biomass · Geothermal · Hydro · Ocean · Solar · Wind Technology AC power · Cogeneration · Combined cycle · Cooling tower · Fossil fuel power plant · Induction generator · Micro CHP · Microgeneration · Pumped hydro · Rankine cycle · Virtual power plant Distribution Demand response · Distributed generation · Dynamic demand · Electricity distribution · Electrical grid · HVDC · Load control · Negawatts · Pylon · Smart grid · Super grid · TSO Policies Carbon offset · Ecotax · Energy subsidies · Feed-in Tariff · Net metering · Pigovian tax · Renewable Energy Certificates · Renewable energy payments · Renewable energy policy Categories: Electricity distribution · Electricity economics · Power station technology · Portals: Energy · Sustainable development