What is the Smart Grid?

The Smart Grid concept combines a number of technologies, end-user solutions and addresses a number of policy and regulatory drivers. It does not have a single clear definition.

The European Technology Platform [3] 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 [7]:

“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.”

In Smarter Grids: The Opportunity [4], the Smart Grid is defined as:

“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).”

The literature [7–10] suggests the following attributes of the 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.