Smart Grid Technology And Applications Changing The Power Industry (2024)

We have talked about the smart grid in our previous blog posts and its relation to energy storage, grid stability, and future power needs. It is undeniable that smart grid technology is changing the power sector; how these technologies are correctly applied matters, especially in achieving sustainability goals for a better future.

Six Smart Grid Technology Applications Leading the Change.

Conventional grid technologies perform a simple function, the transmission of electrical power generated at a central power plant. This happens with voltage transformers that increase and decrease voltage levels gradually while delivering energy to the end-users. Smart grids, however, perform all the conventional functions with the added ability or advantage of monitoring all the activities remotely for better and quicker responses and performance.We will discuss six key applications for Smart Grid technology in this blog post. They are advanced metering infrastructure, demand response, electric vehicles, wide-area situational awareness; distributed energy resources and storage; and distribution grid management.

1. Advanced Metering Infrastructure

This is also known as AMI. It's simply applying technologies like smart meters to help with the two-way flow of information between customers and utility agencies. This information revolves around consumption time, amount and appropriate pricing. It enables smart grids to have a wide range of functions compared to conventional grid technologies.

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These functions include but are not limited to:

  • Remote consumption control
  • Time-based pricing
  • Consumption forecast
  • Fault and outage detection
  • Remote connection and disconnection of users
  • Theft detection and loss measurements
  • Effective cash collection and debt management

Having these functions means gaining better control over power efficiency and quality in smart grids across the globe. Still, there are a few drawbacks that worry consumers and utility agencies alike, such as privacy and confidentiality issues and cybersecurity issues relating to unauthorised access to the AMI devices.

2. Demand Response

Demand response (DR) programs are recent and emerging applications for demand‐side management (DSM). Examples are applications that improve grids’ reliability by providing services such as frequency control, spinning reserves and operating reserves, and applications that help reduce wholesale energy prices and their volatility. The development of energy regulatory commissions with open wholesale markets and policy support has enabled demand response applications in grid technology. There are two categories of demand response programs from the customer perspective:

  • Price‐based DR where customers adjust their electricity consumption in response to the time-variant prices created by their utility agencies to maximise their electricity usage and save on bills
  • Incentive‐based DR where benefits are increased by promoting an incentive to influence customer behaviours to change their demand consumptions

DR provides the opportunity for consumers to reduce or shift their electricity usage during peak periods through the programs mentioned above, giving them a huge role in the operation of electric grids with the hopes of balancing supply and demand needs.

3. Electric Vehicles (EVs)

This may seem like a misplaced application for smart grids, but with the obvious electrification of the transport industry, EVs are a preferred solution to global warming issues. In terms of smart grid technologies, plug-in electric vehicles' introduction comes with myriad challenges and opportunities to sustain power systems. If EVs are added to the grids as regular loads, then there will be no allowance for flexibility of load variables, which will endanger the grid as a whole.

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However, these challenges can be managed successfully with controlled approaches, especially when charging is shifted to low‐load hours. EVs can also promote Smart grid sustainability by operating as distributed storage resources (V2G) that contribute to ancillary services such as frequency regulation, peak‐shaving power for the system or the integration of fluctuating renewable resources.

4. Wide-Area Situational Awareness

This refers to the implementation of a set of technologies designed to improve the monitoring of the power system across large geographic areas — effectively providing grid operators with a broad and dynamic picture of the functioning of the grid. WASA systems provide operators and engineers with the right information at the right time for efficient operation and analysis of the power system, according to SELinc. The ultimate goal here remains the same: to understand and optimise the smart grid's reliability through its performance and anticipate where necessary changes need to occur before problems abound.

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Smart grids use phasor measurement units as sensors for collecting data over large geographical areas making phasor measurement sensors the bane of wide-area measurement systems. They can be relied upon to relay situational awareness over large interconnected areas through:

  • Real-time monitoring
  • Prediction of future disturbances

5. Distributed Energy Resources and Storage

Distributed energy resources are also known as DER and are part of Distributed generation; they refer to energy sources or generation units that are smaller and located on the consumer side of the electricity generation meter. Energy is generated from sources (mostly renewable) near the point of use rather than from a centralised system. Some examples are rooftop solar photovoltaic units and wind generating units.While DER storage involves systems that store distributed energy for later use. This is done with two components; DC-charged batteries and bi-directional inverters. It helps in balancing energy generation, demand and supply. Some other key features are:

  • Peak shaving
  • Load shifting
  • Voltage regulation
  • Renewable integration
  • Back-up power

6. Distribution Grid Management

A distribution grid includes all the equipment needed for energy distribution, such as wires, poles, transformers etc. The management of the distribution grid in smart grids has to do with having a system "capable of collecting, organising, displaying and analysing real-time or near real-time electric distribution system information" as needed. This system can also allow grid operators to plan and place complex tasks to increase efficiency, meet targets, prevent failures and optimise energy flow. It can also work hand in hand with other systems to create a combined outlook of distributed operations.Smart grid technologies are created to be smart, with the capabilities of predetermining faults that can then be prevented, cut costs where possible, and deliver the best value to consumers when needed.

Are you an Energy Service Company/Provider or a Distribution Grid Operator, you can book a demo with our team to understand how our Hive Power FLEXO solutions can power your smart grid management projects.

In the realm of smart grids and their transformative impact on the power sector, it's crucial to have an expert guide you through the intricate web of technologies and applications. My expertise in smart grid technology spans from in-depth knowledge of advanced metering infrastructure (AMI) to the nuances of demand response programs, electric vehicles (EVs) integration, wide-area situational awareness (WASA) systems, distributed energy resources and storage (DER), and distribution grid management.

Starting with AMI, the deployment of smart meters facilitates a two-way flow of information between customers and utility agencies. This data exchange covers consumption time, amount, and pricing, empowering smart grids with functions like remote consumption control, time-based pricing, fault detection, and more. While the benefits are profound, concerns over privacy, confidentiality, and cybersecurity challenges persist.

Moving on to demand response, it's a dynamic field within demand-side management (DSM) that addresses grid reliability and wholesale energy price volatility. Customers can engage in price-based or incentive-based DR programs, enabling them to play a pivotal role in balancing supply and demand during peak periods.

Electric Vehicles (EVs) might seem an unlikely player in smart grids, but their integration is pivotal for sustainable power systems. EVs, when treated as distributed storage resources (V2G), contribute to ancillary services like frequency regulation and peak-shaving power, presenting both challenges and opportunities for grid sustainability.

Wide-Area Situational Awareness (WASA) systems provide a holistic view of the power system across large geographic areas, aiding operators in efficient grid operation and analysis. Phasor measurement units act as sensors, collecting real-time data over vast regions and enhancing situational awareness.

Distributed Energy Resources (DER) and Storage involve smaller, consumer-side energy sources like rooftop solar and wind units. Coupled with storage systems, they offer benefits such as peak shaving, load shifting, and voltage regulation, contributing to a more balanced energy ecosystem.

Finally, Distribution Grid Management focuses on efficiently collecting, organizing, and analyzing real-time information to optimize energy flow, prevent failures, and increase overall efficiency in the distribution grid.

In essence, smart grid technologies are not just about upgrading infrastructure but about creating intelligent systems that pre-empt faults, reduce costs, and deliver optimal value to consumers. If you're an Energy Service Company/Provider or a Distribution Grid Operator, understanding these technologies is vital for successful smart grid management projects.

Smart Grid Technology And Applications Changing The Power Industry (2024)

FAQs

Smart Grid Technology And Applications Changing The Power Industry? ›

Smart grids co-ordinate the needs and capabilities of all generators, grid operators, end users and electricity market stakeholders to operate all parts of the system as efficiently as possible, minimising costs and environmental impacts while maximising system reliability, resilience, flexibility and stability.

What are the Smart Grid applications in power systems? ›

Following are the most common applications of smart grid technology. Self-healing grid: fault protection, outage management, dynamic control of voltage, weather data integration, centralized capacitor bank control, distribution and substation automation, advanced sensing, automated feeder reconfiguration.

How the Smart Grid helps in improving power quality? ›

The Smart Grid enables two-way communication, allowing utilities to incentivize consumers to adjust their electricity consumption during peak demand periods, improving overall grid stability.

What are the four major functions of Smart Grid technology? ›

Smart Grid can offer a lot of potential economic and environmental benefits and Significance:
  • Improve reliability of power quality and transmission.
  • Increased power distribution efficiency and conservation.
  • Reduced costs for electric utilities.
  • Reduced expenditures on electricity by households and businesses.

What are the advancements in smart electrical grid? ›

Smart metering, faster problem diagnosis, and improved network operation and administration are transforming the traditional grid [2]. Renewable energy power has lately increased, and this has given renewable energy a vital role in future energy.

What is a major advantage of a smart grid over today's electrical grid? ›

At a fundamental level, Smart Grids count among their advantages over today's grids greatly increased efficiency, stability, and the potential for more integration and inclusion of a greater number of devices.

What are 2 benefits of smart grids? ›

Smart Grid Benefits
  • Manage and control energy usage. Most people do not know how their energy is produced and delivered. ...
  • Help the environment and lower energy costs. ...
  • Connect electric vehicles. ...
  • Improve reliability.

What is the Smart Grid and its importance in power system? ›

Smart grids are electricity network that use digital technologies, sensors and software to better match the supply and demand of electricity in real time while minimizing costs and maintaining the stability and reliability of the grid.

What are the 7 domains of smart grid? ›

The National Institute of Standards and Technology (NIST) Smart Grid Conceptual Model provides a high-level framework for the smart grid that defines seven important domains: Bulk Generation, Transmission, Distribution, Customers, Operations, Markets and Service Providers.

What are the challenges in smart grid? ›

Technology barriers including standards, interoperability, cybersecurity and data privacy: even though technical solutions often exist at the component level, large scale system experiments are needed to validate "system solutions" such as the management of generation intermittency and to promote standardization and ...

What problem can Smart Grid technology help overcome? ›

Furthermore, smart grids can adjust energy distribution based on real-time data, reducing the strain on the grid during peak usage times. This helps to prevent outages and enhances the overall reliability of the power system.

What is the difference between power grid and Smart Grid? ›

Smart grids offer higher reliability and resilience compared to conventional grids. With self-healing capabilities, smart grids can automatically detect and isolate faults, rerouting power to minimize disruptions and downtime.

How is Smart Grid an enabler of the new energy economy? ›

From an economic perspective, a Smart Grid can enable reduced overall energy consumption through consumer education and participation in energy efficiency and demand response / load management programs.

What are the applications of grid? ›

Grid Computing Applications
ApplicationDescription
Weather ForecastingProcesses large amounts of weather data, improving accuracy in forecasting and predicting severe weather.
Drug DiscoveryAnalyzes molecular structures, simulates drug interactions, and accelerates the discovery of new drugs.
8 more rows

What is the real example of smart grid? ›

For example, once a medium voltage transformer failure event occurs in the distribution grid, the SG may automatically change the power flow and recover the power delivery service immediately. Electric power systems are very complex physical networks.

What is the real example of a smart grid device? ›

Explanation : Smart Grid is used to monitor the power supply. Consumers' data is collected using a smart grid, and that data is analyzed and distributed to the consumers. The real example of a smart grid device is a smart meter.

What are the different types of smart grid? ›

Smart grid use two different network types for communication one is HAN and WAN. HAN is used to connect the home appliances with the smart meter. There are different technologies that are used as a home area network such as Zigbee, Wireless Ethernet or Wired Ethernet and Bluetooth.

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