An Introduction to Smart Grid

Smart Grid – the Time is Now

“Smart Grid” fulfills a comprehensive vision to improve the reliability, efficiency, and security of the electric network. The current grid (or network) becomes “smart” when the conventional electric system is augmented with communications infrastructure, data management, automation, and control technologies that provide for improved management of power production, distribution, and consumption by power producers, distributors, and energy users.

This concept is not entirely new to the electric utility industry. The industry has long recognized and captured the benefits of closely monitoring and intensely managing electricity delivered to its largest customers. Control and monitoring equipment has been installed on major elements of the electric grid to improve both reliability and operational efficiency. However, the costs for these capabilities have been significant and this high cost has placed limitations on the practical use of these technologies to only the most critical elements of the grid and its largest consumers.

Much has changed in recent years, including:

• The rapid advance of digital technology and the deployment of ubiquitous data networks have dramatically lowered the cost of the infrastructure needed to make the grid smarter.
• Public sentiment is evolving and becoming increasingly focused on energy efficiency and zero emissions power production.
• Pending CO2 regulation increases the risk associated with investments in new CO2 emitting power production plants.

All of these factors work together to create a strong and increasing demand for deploying Smart Grid.

Benefits of Smart Grid

Smart Grid requires that all elements and users of the electric grid communicate with one another in real time. An electric grid with this capability:

• Allows power producers, distributors and users to maintain a near real-time awareness of one another’s operating needs and capabilities, permitting power to be produced, distributed and consumed in the most optimal and efficient manner.
• Enables a number of new and compelling capabilities that have heretofore not been either technically or economically feasible (e.g. ability of energy users to receive real time information on energy rates by time of day, allowing them to use power when it is available at a lower cost; improved efficiency in transporting electricity, and availability of real-time and accurate information regarding the scope and nature of outages)

Integration of Similar, yet Different Networks

In its basic form, Smart Grid is both an electric grid and communication network that facilitates the flow of electricity and information.  However, electric grids and communication networks are fundamentally different and despite years of research and development, current and foreseeable technology has been unsuccessful in developing a single common network that serves both functions:

• The traditional electric grid (network) is a power delivery system that transports high voltage AC power over a broad network of conductive transmission lines.
• The communications network is an information transport network that uses optical, radio, or low voltage technologies to deliver data and control messages.

There could potentially be a common network, most commonly referred to as broadband over power line (BPL). However, when analyzing potential solutions, they should be viewed as two separate and distinct networks as illustrated in Figure 1.

There are some striking similarities in the architecture of and requirements for the two networks:

• Centralized nature of power production and certain information functions
• Distribution networks typically consist of major arteries down to capillaries at endpoints
• Security and reliability are viewed as critical success factors to both types of networks
• Flow of energy and information must be managed within the limits of the network
• Network costs in both vary significantly based on end-point density

The differences are equally pertinent:

• The electric grid transports power and the communications network transports IP/data.
• Electricity represents a one-way flow where as communication networks provide for two-way flow of communication.
• Service provided at the end-points in communications networks can vary widely where as electricity customers expect consistent service regardless of their relative position in the electric grid.
• Communications networks use a wider variety of transport technologies.

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