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What is the Smart Grid? Definitions, Perspectives, and Ultimate Goals

Conference Paper · November 2013

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 13-E-SMG-2046

What is the Smart Grid?

Definitions, Perspectives, and Ultimate Goals

Morteza Shabanzadeh Mohsen Parsa Moghaddam

Electrical Engineering Department
Tarbiat Modares University (TMU)
Tehran, Iran
[email protected] [email protected]

Abstract— It is no surprise that there is no unique definition collecting information from a workshop, interviews, and
of the Smart Grid (SG). Such a complex machine with so many research of existing smart grid literature and studies, this paper
technology options at hand to improve its functionality is bound attempts to present a balanced view of progress toward a smart
to facilitate a variety of broad definitions. As a result, there are a grid across many fronts.
variety of architectures, technologies and configurations already
proposed or under formation for what can be described as smart For a power system, this permits several functions which
grids. In this paper, we are going to give a perfect answer for the allow optimization—in combination—of the use of bulk
question “What is the Smart Grid?” envisioned by different generation and storage, transmission, distribution, distributed
organizations and authors. Meanwhile, we discuss on general resources and consumer end uses toward goals which ensure
aspects of smart grids and collect some crucial features which are reliability and optimize or minimize the use of energy,
mostly mentioned in academic papers and technical reports in mitigate environmental impact, manage assets, and contain
order to elaborate its definitions in different perspectives. Finally, cost [2].
we will reveal the key findings arise from this survey.
In the short term, a smarter grid will function more
Keywords—Smart Grid; Digital Economy; Perfect Power efficiently, enabling it to deliver the level of service we’ve
System; Self-healing; SQRAE; Demand Side Management come to expect more affordably in an era of rising costs, while
also offering considerable societal benefits – such as less
I. INTRODUCTION impact on our environment [4].
Defining the smart grid in a concise way is not an easy Longer term, expect the Smart Grid to spur the kind of
task as the concept is relatively new and as various alternative transformation that the Internet has already brought to the way
components build up a smart grid. Some authors even argue we live, work, play and learn [4].
that it is “too hard” to define the concept [1]. Looking at
different definitions reveals that the smart grid has been II. VARIOUS VISIONS REGARDING SMART GRID
defined in different ways by different organizations and Since there is no specific definition for Smart Grid, in this
authors.
paper, some information have been gathered from different
The electric power system delivery has often been cited as reports that show various perspectives of academia and
the greatest and most complex machine ever built. It consists research centers regarding Smart Grid.
of wires, cables, towers, transformers and circuit breakers—all
bolted together in some fashion [2] A. EPRI's vision
The smart grid is an innovation that has the potential to A Smart Grid is one that incorporates information and
revolutionize the transmission, distribution and conservation communications technology into every aspect of electricity
of energy. Actually, the current electric power delivery system generation, delivery and consumption in order to minimize
is almost entirely a mechanical system, with only limited use environmental impact, enhance markets, improve reliability
of sensors, minimal electronic communication and almost no and service, and reduce costs and improve efficiency [2].
electronic control [3]. On the contrary, smart grid employs In EPRI's viewpoint, a smart grid is the use of sensors,
digital technology to improve transparency and to increase communications, computational ability and control in some
reliability as well as efficiency. ICTs and especially sensors form to enhance the overall functionality of the electric power
and sensor networks play a major role in turning traditional delivery system. A dumb system becomes smart by sensing,
grids into smart grids. communicating, applying intelligence, exercising control and
The state of smart grid deployment covers a broad array of through feedback, continually adjusting [3].
electric system capabilities and services enabled through For a power system, this permits several functions which
pervasive communications and information technology, with allow optimization of the use of bulk generation and storage,
the objective to improve reliability, operating efficiency, transmission, distribution, distributed resources and consumer
resiliency to threats, and our impact to the environment. By
Department of Electrical Engineering, Tarbiat Modares
University, Tarbiat, P.O. Box 14115-111, Tehran, Iran.
E-mail addresses: [email protected] (M. Shabanzadeh),
[email protected] (M. Parsa Moghaddam).

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 What is the Smart Grid? Definitions, Perspectives, and Ultimate Goals
28th Power System Conference - 2013 Tehran, Iran

end uses toward goals which ensure reliability and optimize or 5. Optimized to maximize reliability, availability, efficiency
minimize the use of energy, mitigate environmental impact, and economic performance.
manage assets, and contain cost. 6. Secure from attack and naturally occurring disruptions.
B. U.S. Department of Energy (DOE)'s vision ABB's view on Smart Grid is more than IT and smart
The U.S. Department of Energy has defined the smart grid meters and believes that smart grid is a political issue that
in terms of seven characteristics that are outcomes. In June of many players need to be informed consistently [8]:
2008, DOE held a meeting of industry leaders who identified • Smart Grid is the future evolution of the entire power
seven defining traits of what a smart grid will do [2] and [4-6]: network.
1. Optimize asset utilization and operating efficiency. • Smart Grid includes both transmission and distribution,
2. Accommodate all generation and storage options. focuses on the integration of renewable generation,
reliability and efficiency of the grid.
3. Provide power quality for the range of needs in a digital
• Smart Grid includes the demand response and the
economy.
potential of new technologies such as large scale
4. Anticipate and respond to system disturbances in a self- integration of electric vehicles.
healing manner.
Smart Grid includes both automation/IT and controllable
5. Operate resiliently against physical and cyber attacks and power devices in the whole value chain from production to
natural disasters. consumption.
6. Enable active participation by consumers.
D. European Union (E.U.)'s vision
7. Enable new products, services, and markets. According to Vision and Strategy of Europe’s Electricity
Therefore, the definition of Smart Grin in DOE's viewpoint is: Networks of the Future, EU’s electricity networks must be [9]:
“The smart grid is the electricity delivery system, from • Flexible: fulfilling customers’ needs whilst responding
point of generation to point of consumption, integrated with to the changes and challenges ahead.
communications and information technology for enhanced • Accessible: granting connection access to all network
grid operations, customer services, and environmental users, particularly for renewable power sources and
benefits.” high efficiency local generation with zero or low
“A smart grid is self-healing, enables active participation carbon emissions.
of consumers, operate resiliently against attack and natural • Reliable: assuring and improving security and quality
disasters, accommodate all generation and storage options,
of supply, consistent with the demands of the digital
enable introduction of new products, services and markets,
age with resilience to hazards and uncertainties.
optimize asset utilization and operate efficiently, provide
power quality for the digital economy.” • Economic: providing best value through innovation,
What is not explicitly stated here, but is equally important, efficient energy management and ‘level playing field’
is that a fully developed smart grid concept goes far beyond competition and regulation.
smart meters. It includes technologies at both the transmission Therefore, the definition of Smart Grin in E.U.'s viewpoint is:
and distribution level and extends to both IT hardware and “A smart grid is an electricity network that can
software, such as monitoring and control systems, as well as intelligently integrate the actions of all users connected to it –
primary equipment like transformers and relays.
generators, consumers and those that do both – in order to
efficiently deliver sustainable, economic and secure electricity
C. ABB's vision
supplies.”
ABB’s list of smart grid criteria covers much of the same
ground as DOE’s, but focuses on broad characteristics rather Meanwhile, E.U. sees the smart grid as an active network:
than specific functions. Under this model, the smart grid is [7]: 1. To overcome the limits on the development of distributed
1. Adaptive, with less reliance on operators, particularly in generation and storage.
responding rapidly to changing conditions. 2. To ensure interoperability and security of supply.
2. Predictive, in terms of applying operational data to 3. To provide accessibility for all the users to a liberalized
equipment maintenance practices and even identifying market.
potential outages before they occur.
4. To reduce the impact of environmental consequences of
3. Integrated, in terms of real-time communications and electricity production and delivery.
control functions.
5. To enable demand-side participation.
4. Interactive between customers and markets.
6. To engage consumers interest.

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 What is the Smart Grid? Definitions, Perspectives, and Ultimate Goals
28th Power System Conference - 2013 Tehran, Iran

E. Electricite de France (EDF)'s vision 4. Provide consumers with greater information and choice of
EDF defines it as integrating distributed energy resources supply,
with dispersed intelligence and advanced automation [1]. The 5. Significantly reduce the environmental impact of the total
following EDF's principles informed the SG more [10-12]: electricity supply system,
1. Empowers consumers to make choices about their energy 6. Deliver required levels of reliability, flexibility, quality
use, both to save money and to support clean energy. and security of supply.
2. Supports the sale of demand-side resources into wholesale
energy markets. J. OECD's vision
Organization for Economic Cooperation and Development
F. Hydro Quebec 's vision beholds Smart Grid in two perspectives [17]:
Hydro Quebec has emphasized that a smarter grid is a (1) From a solution perspective, the smart grid is
necessity, not a choice. Its vision is [1], [13]: characterized by:
1. To reach an Active Distribution Network. • More efficient energy routing and thus an optimized
2. Increase grid reliability and availability. energy usage, a reduction of the need for excess
capacity and increased power quality and security.
3. Improve energy efficiency of facilities.
• Better monitoring and control of energy and grid
4. Increase capacity to integrate new sources of renewable components.
energy resources (RER) and distributed generation (DG).
• Improved data capture and thus an improved outage
5. Optimize investments (financial and other) in long-term management.
operability, maintenance and security of supply.
• Two-way flow of electricity and real-time information
6. Provide customers with the means to optimize allowing for the incorporation of green energy sources,
consumption and reduce electricity bills. demand-side management and real-time market
transactions.
G. General Electric's vision
• Highly automated, responsive and self-healing energy
General Electric (GE) sees the smart grid “as a family of network with seamless interfaces between all parts of
network control systems and asset-management tools, the grid.
empowered by sensors, communication pathways and
information tools.” [1], [14]. (2) From a technical components' perspective, the smart
grid is a highly complex combination and integration of
H. IESO's vision multiple digital and non-digital technologies and systems. The
main components of a smart grid are:
Ontario Independent Electricity System Operator (IESO) is
a leader in smart grids – with smart meters installed in almost a) New and advanced grid components;
every home and small business. Smart grids comprise many b) Smart devices and smart metering;
things, but they all use information and communication
technologies to expand the capabilities of the electricity c) Integrated communication technologies;
system to provide even greater benefits for consumers such as d) Programmes for decision support and human interfaces;
reliability, efficiency, sustainability, and customer control (by
using smart meters) [15]. e) Advanced control systems.
These individual grids do not need to be centralized, but
I. Ofgem's vision can have more control stations and be more highly integrated.
Ofgem and its Electricity Networks Strategy Group believe The integration of many grids including country-spanning
that a smart network employs communications, innovative ones provides economic advantages, but there are challenges
products and services together with intelligent monitoring and regarding security if they become too centralized and
control technologies to [16]: interconnected.
1. Facilitate connection and operation of generators of all Table I gives an overview of more selected definitions. It
sizes and technologies, shows two different approaches to define the smart grid: it is
2. Enable the demand side to play a part in optimizing the either defined from a solution perspective “What are the main
advantages of the grid?” or from a components' perspective
operation of the system,
“Which components constitute the grid?”.
3. Extend system balancing into distribution and the home,
.

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 13-E-SMG-2046

TABLE I. A SUMMARY OF SMART GRID DEFINITIONS IN DIFFERENT PERSPECTIVES

Organization/ Author Grid/ Concept Definition

The "smart grid" has come to describe a next-generation electrical power system that is typified by the
IEEE [18] Smart Grid increased use of Communications and Information Technology in the generation, delivery and
consumption of electrical energy.
The Smart Grid is fully functional around 2030 that will cost efficiently integrate the actions of all users
IET [19] Smart Grid connected to it – generators, consumers and those that do both – in order to ensure an economically efficient,
sustainable power system with low losses and high levels of quality and security of supply and safety.
PG&E [20] Smart Grid The Smart Grid is a modernized electric system that combines advanced communications and controls to
(Pacific Gas and Electric Co.) create a responsive and resilient energy delivery network.
ElectriNetSM The ElectriNetSM recognizes the evolution of the power system into a highly interconnected, complex, and
EPRI [2-3], [21] Interactive network of power systems, telecommunications, the Internet, and electronic commerce
applications.
AEMO [22] Smart Grid Smart Grid creates opportunities for consumers to change their energy consumption at short notice in
(Australian Energy
Market Operator) response to a variety of signals that include price.

IESO [23] Smart Grid Using information and communication technologies (especially smart meters) to expand the capabilities
(Ontario ISO) of the electricity system to provide even greater benefits for consumers.
SIEMENS [24] Smart Grid It’s about the big picture of improved energy delivery, informed consumption and reduced environmental
impact (Siemens recognizes that Smart Grid doesn't just mean smart meters.)
A Smart Grid as part of an electricity power system can intelligently integrate the actions of all users
Ofgem [16] Smarter Grid connected to it - generators, consumers and those that do both - in order to efficiently deliver sustainable,
economic and secure electricity supplies.
Grid 2030 is a Fully Automated power delivery network that monitors and controls every customer and
DOE [4-6] node, ensuring a two-way flow of electricity and information between the power plant and the appliance, and
Grid 2030 all points in between. Its distributed intelligence, coupled with broadband communications and automated
(U.S. Department of Energy)
control systems, enables Real-time Market transactions and seamless interfaces among people, buildings,
industrial plants, generation facilities, and the electric networks.
ABB [7-8] Smart Grid A smart grid is an evolved grid system that manages electricity demand in a Sustainable, Reliable and
Economic manner, built on advanced infrastructure and tuned to facilitate the integration of all involved.
AUC [25] Smart Grid Smart grid is a broad concept that describes the integration of hardware, software, computer monitoring
(Alberta Utilities Commission) and control technologies, and modern communications networks into an electricity grid.
A “smart grid” is a set of software and hardware tools that enable generators to route power more
Climate Group [26] Smart Grid efficiently, reducing the need for excess capacity and allowing two-way, real time information exchange with
their customers for real time Demand Side Management (DSM). It improves efficiency, energy monitoring
and data capture across the power generation and T&D network.
Adam & Wintersteller [27] Smart Grid A smart grid would employ digital technology to optimize energy usage, better incorporate intermittent
“Green” sources of energy, and involve customers through smart metering.
The Smart Grid will:
Enable active participation by consumers
Accommodate all generation and storage options
Miller [17] Smart Grid Enable new products, services and markets
Provide power quality for the Digital Economy
Optimize asset utilization and operate efficiently
Anticipate and respond to system disturbances (Self-heal)
Operate resiliently against attack and natural disaster

Franz, and et al. [28] eEnergy “Convergence of the electricity system with ICT technologies”
The Smart Grid is a developing network of new technologies, equipment, and controls working together to
SmartGrid.gov [29] Smart Grid respond immediately to our 21st century demand for electricity. The Smart Grid represents an unprecedented
opportunity to move the energy industry into a new era of Reliability, Availability, and Efficiency that will
contribute to our Economic and Environmental health.

4
 What is the Smart Grid? Definitions, Perspectives, and Ultimate Goals
28th Power System Conference - 2013 Tehran, Iran

[4] Department of Energy, United States (DOE), “The Smart Grid: An

LESSONS TAKE HOME
III. Introduction”, Washington, DC., 2003
To sum up, a fruitful deduction that is the result of our [5] Department of Energy, United States (DOE), “Grid 2030 – A Vision for
Electricity’s Second 100 Years”, Washington, DC., 2003
survey is presented here. In this paper, we can conclude that
[6] Dan Ton, “DOE’s Perspectives on Smart Grid Technology, Challenges,
“Smart grid” that we call it Thinking Network, is the term & Research Opportunities”, November 19, 2009
commonly used to refer to an electrical grid whose operation [7] “The Role of New Technologies: A Power Engineering Equipment
has been transformed from a twentieth century analog Supply Base Perspective”, Paris, Grid Policy Workshop 28 April 2010
technology base to the pervasive use of Digital Technology for [8] http://www.abb.com/cawp/db0003db002698/e41499e00a67ceebc12579
communications, monitoring (e.g., sensing), computation, and ba002e1a92.aspx
control. In a smart grid, much of the intelligence and [9] “European Technology Platform SmartGrids: Vision and Strategy for
situational awareness necessary to understand the state of the Europe’s Electricity Networks of the Future”, Directorate-General for
grid and to maintain safe, secure, efficient, and reliable Research Sustainable Energy Systems, 2006
operation of the grid reside within the grid’s digital [10] Karen Herter, “Evaluation Framework for Smart Grid Deployment
Plans: A Systematic Approach for Assessing Plans to Benefit Customers
information infrastructure itself. and the Environment”, June 2011
Meanwhile, smart grid should be a more stable grid [11] http://www.edf.org/sites/default/files/smart-grid-
because automated responses to threats to grid stability can be evaluation-framework.pdf
easily implemented. The ability to anticipate or detect [12] http://www.edf.org/energy/smart-grid
emerging problems at a very early stage, where minor [13] Chad Abbeyy, “Active Distribution Networks: Canadian Example
automated adjustments can easily rectify the condition, is Projects Canadian Example Projects”, CanmetENERGY, Available at:
http://www.smartgrid.gov/sites/default/files/doc/files/Active_Distributio
realized with a smart grid.
n_Networks_Canadian_Example_Projects_200812.pdf
The key findings and in actual fact the ultimate goals arise [14] http://www.ge-ip.com/library/detail/12784
from this survey are revealed in the following: [15] http://www.ieso.ca/imoweb/smartgrid/ontarios_smart_grid.asp
[16] Electricity Networks Strategy Group (ENSG), “A Smart Grid Vision”,
• Enhancement of power system infrastructure (sensors,
November 2009.
communications, computational facilities, etc.); [17] Organisation for Economic Co-Operation and Development (OECD),
• Different entities share the benefits of Smart Grid; “Smart Sensor Networks: Technologies and Applications for Green
Growth, December 2009
• Creation of new business opportunities. [18] http://smartgrid.ieee.org/ieee-smart-grid
[19] The Institution of Engineering & Technology (IET), “What is a Smart
• Enhancement of SQRAE (Security, Quality, Reliability,
Grid?”, 2013. Available at: http://www.theiet.org/factfiles/energy/smart-
Availability, Efficiency) features of power system. grids-page.cfm
• Mitigation of emission; [20] Pacific Gas and Electric Company, “What is a Smart Grid?”, 2013.
Available at:
• Establishment of optimized and perfect power system; http://www.pge.com/myhome/edusafety/systemworks/electric/smartgrid/
• Vast deployment of emergent technologies; [21] Electric Power Research Institute (EPRI), “IntelliGridSM – Smart Power
for the 21st century”, 2005. Available at: www.epri-
• Asset Management and Cost Control; intelligrid.com/intelligrid/docs/Intelligrid_6_16_05.pdf
[22] “Electricity Statement of Opportunities for the National Electricity
• More competitive electricity market with Open Access; Market”, Published by AEMO (Australian Energy Market Operator),
• Integrating of variety of stakeholders of Smart Grid. 2010
[23] http://www.energy.alberta.ca/Electricity/pdfs/SmartGrid.pdf
This modernization enables the extensive use of computer- [24] http://w3.usa.siemens.com/smartgrid/us/en/pages/smart-grid.aspx
based automation to maintain grid stability and to enable [25] Alberta Smart Grid Inquiry, January 31, 2011. Available at:
modern grid features such as Demand-Side Management, http://www.auc.ab.ca/items-of-interest/special-
Distributed Generation, Real-Time Pricing, and automated inquiries/Documents/smart_grid/Alberta_Smart_Grid_Inquiry_final_rep
meter activation and reading. ort.pdf
[26] Climate Group, The and GeSI (2008), “SMART 2020: Enabling the Low
Carbon Economy in the Information Age. Available at:
http://www.theclimategroup.org
REFERENCES
[27] Adam, R. and W. Wintersteller, “From Distribution to Contribution”
[1] Miller, J., “The Smart Grid – How Do We Get There?”, Smart Grid Commercialising the Smart Grid, Booz & Company, Munich, 2008.
News, June 26, 2008 [28] Franz, O., and et al., “Potential of information and communication
[2] Clark W. Gellings, “The Smart Grid: Enabling Energy Efficiency and technologies to optimize energy supply and energy consumption”, 2006
Demand Response”, published by the Fairmont Press, 2009 http://www.smartgrid.gov/the_smart_grid#smart_grid
[3] http://smartgrid.epri.com/

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