Smart Grid: Definition and Concept

Smart Grid is define as a modern grid that enables bidirectional flow of energy and uses two-way cyber-secure information
and communication technologies in an integrated fashion across electricity generation, transmission, substations,
distribution and consumption to achieve a system that is clean, safe, secure, reliable, resilient, efficient, and sustainable.
This description covers the entire spectrum of the energy system from the generation to the end points of consumption of the
electricity. It 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. In order to realize this new grid paradigm, National
Institute of Standards and Technology (NIST) provided a conceptual model based on the different roles involved in the SG
as shown in Figure.

This conceptual model divides the SG into seven domains. The brief descriptions of the domains are given as:

Customers: They are end users of electricity that may also generate, store, and manage the use of energy.

Markets: The markets are where grid assets are bought and sold. The operators and participants of electricity market
exchange price while operators trying to balance supply & demand within the power system.

Service Providers: The organizations providing services to electrical customers and utilities. This domain support the
business processes of power system to enhance customer services. These business processes are billing and customer
account management, monitoring and controlling of energy use and energy generation, etc.

Operations: The managers of this domain manages the movement of electricity. Supervise network topology, connectivity
and loading conditions, including circuit breaker and switch states, and control equipment status. Perform real time data
analysis, system efficiency and reliability analysis, faults analysis (Fault location, identification, isolation and restoration)
etc.

Bulk Generation: This domain consists generators of electricity that generates power in bulk quantities (more than 300
MW). May also store energy for later distribution.

Transmission: The carriers of bulk electricity over long distances. May also store and generate electricity. A transmission
network is typically operated by a Independent System Operator (such as PGCIL) whose primary responsibility is to
maintain stability on the electric grid by balancing energy generation with energy demand across the transmission network.

Distribution: The distributors of electricity to and from customers. May also store and generate electricity.

In contrast Smart Grid from a technical view point is divides into three major systems: smart infrastructure, smart
management and smart protection systems.

Smart infrastructure system: The smart infrastructure system is the energy, information, and communication
infrastructure underlying the SG. It supports two-way flow of electricity and information. We further divide this smart
 infrastructure into three subsystems: the smart energy subsystem, the smart information subsystem, and the smart
communication subsystem.
Smart management system: The smart management system is the subsystem in SG that provides advanced
management and control services and functionalities. The smart management system takes advantage of the smart
infrastructure to pursue various advanced management objectives.
i. i. The smart energy subsystem is responsible for advanced electricity generation, delivery, and consumption.
The smart information subsystem is responsible for advanced information metering, monitoring, and management
ii.
in the context of the SG.
The smart communication subsystem is responsible for communication connectivity and information transmission
iii.
among systems, devices, and applications in the context of the SG.

Smart protection system: The smart protection system is the subsystem in SG that provides advanced grid reliability
analysis, failure protection, and security and privacy protection services. By taking advantage of the smart
infrastructure, the SG must not only realize a smarter management system, but also provide a smarter protection
system which can more effectively and efficiently support failure protection mechanisms, address cyber security
issues, and preserve privacy.

Why we need Smart Grid

To stop Power Theft: Little oversight of the grid and higher poverty rates for nation like India, power theft is quite
common. Poor policing and antiquated transmission and distribution lines result in as much as 40 percent of electricity
going unpaid for in some Indian states. To cut down power theft just basic grid accounting — knowing where the power is
flowing when — will be a “strong driver”.

To improve reliability of Power: In context with nation like India, often times the electricity power supply is poor, they
can only access electricity during certain time of the day and thus, power reliability lowered. Grid load balancing and
distribution automation services, can help keep power flowing more continuously and alert utilities to blackouts. Thus, we
can react much more quickly to brownout (Reduction in the voltage of commercially supplied power. It is caused either by
the failure of generation, transmission, or distribution system, or deliberately by the power utility when demand exceeds
supply.) or blackouts by making grids smarter.

Lack of infrastructure: In many developing countries, power grids have not been fully built out — in Tanzania 80 percent
of the population lives within 5 kilometres of a transmission line but only 10 percent has access to electricity. But smart grid
technology can “represent an opportunity for developing countries to leapfrog in the growth of their power sector to more
manageable, reliable, and scalable designs.”

To fulfil power demand: Many countries face power shortage challenge due to the consistent population growth. For
example, nations like India and China will double their energy needs in a decade. Additionally, existing power system are
becoming obsolete and no longer address the sustainability, security and economic requirements of today's population. This
growing power demand can be justified by smart grid technologies because smart grid increases efficiency of the existing
grid. Hence, extension of power generation capacity and new transmission line installation are not required.

To integrate renewable power: Consumers will have to face power cuts due to shortage of fossil fuels in next five-six
decades. So, it become essential to use power plants based on renewable energy resources rather than fossil fuel based
power plants. If utilities are adding distributed clean power to existing grid, utilities will need a smart grid to manage
problems caused by intermittency (the sun and wind only happen during certain times of the day) and distributed power.

Environmental impact: Fossil fuel-fired power plants are the largest source of CO2 emissions. Growing concerns over
environmental damage (such as rising global temperatures, rising sea level, Changes in weather and ecosystems) from
fossil-fired power plants has led to a desire to use large amounts of renewable energy. Dominant forms such as wind power
and solar power are highly variable, and so more sophisticated control systems required.

Terrorist attack: Growing concern over terrorist attack in some countries has led to calls for a more robust energy grid that
is less dependent on centralised power stations.
 FUNCTIONS OF SMART GRID

Enhanced fault protection: Enhanced fault protection means fast and exact fault identification, location, isolation and
service restoration. This can be achieved by using high resolution sensors to distinguish various fault signatures.

Fault current limiting: Fault current limiting can be achieved through sensors, communications, information processing,
and actuators that allow the utility to use a higher degree of network coordination to reconfigure the system to prevent fault
currents from exceeding damaging levels. Fault current limiting can also be achieved through the implementation of special
stand alone devices known as Fault Current Limiters (FCLs) which act to automatically limit high through currents that
occur during faults.

Diagnosis and notification of equipment condition: Diagnosis and notification of equipment condition is defined as on-
line monitoring and analysis of equipment, its performance, and operating environment in order to detect abnormal
conditions (e.g., high number of equipment operations, temperature, or vibration). Asset managers and operations personnel
can then be automatically notified to respond to conditions that increase the probability of equipment failure.
Wide Area Monitoring, Visualization, & Control: Wide area monitoring and visualization requires time synchronized
sensors (PMUs), communications, information processing and actuators that make it possible for the condition of the bulk
power system to be observed and understood in real-time so that protective, preventative, or corrective action can be taken.
Dynamic capability rating: Dynamic capability rating can be achieved through real-time determination of an element’s
(e.g., line, transformer etc.) ability to carry load based on electrical and environmental conditions (e.g., line tension,
temperature, wind speed).
Power Flow control: Flow control requires techniques that are applied at transmission and distribution levels to influence
the path that power (real & reactive) travels. This functionality is enabled by tools such as flexible AC transmission systems
(FACTS), phase angle regulating transformers (PARs), series capacitors, and very low impedance superconductors.
Adaptive protection: Adaptive protection uses adjustable protective relay settings (e.g., current, voltage, feeders, and
equipment) that can change in real time based on signals from local sensors or a central control system. This is particularly
useful for feeder transfers and two-way power flow issues associated with high DER penetration.
Automated feeder and line switching: Automated feeder and line switching is realized through automatic isolation and
reconfiguration of faulted segments of distribution feeders or transmission lines via sensors, controls, switches, and
communications systems. These devices can operate autonomously in response to local events or in response to signals from
a central control system.
Automated islanding and reconnection: Automated islanding and reconnection is achieved by automated separation and
subsequent reconnection (autonomous synchronization) of an independently operated portion of the T&D system (i.e.,
microgrid) from the interconnected electric grid. A microgrid is an integrated energy system consisting of interconnected
loads and distributed energy resources which, as an integrated system, can operate in parallel with the grid or as an island.
Automated voltage and VAR control: Automated voltage and VAR control requires coordinated operation of reactive
power resources such as capacitor banks, voltage regulators, transformer load-tap changers, and distributed generation (DG)
with sensors, controls, and communications systems. These devices could operate autonomously in response to local events
or in response to signals from a central control system.
Real-time load measurement and management: This function provides real-time measurement of customer consumption
and management of load through Advanced Metering Infrastructure (AMI) systems (smart meters, two-way
communications) and embedded appliance controllers that help customers make informed energy use decisions via real-time
price signals, time-of-use (TOU) rates, and service options.
Real-time load transfer: Real-time load transfer is achieved through real-time feeder reconfiguration and optimization to
relieve load on equipment, improve asset utilization, improve distribution system efficiency, and enhance system
performance.
Customer electricity use optimization: Customer electricity use optimization is possible if customers are provided with
information to make educated decisions about their electricity use. Customers could be able to optimize toward multiple
goals such as cost, reliability, convenience, and environmental impact.
 OPPORTUNITIES
1. Regulations: The regulatory environment is India is very favorable for international companies to enter and setup pilot
projects on Smart Grid technology. If these projects are successful the government will grant them contracts to implement
them across the nation.
2. Economics: Smart Grid technology at the earliest can help reduce commercial losses due to theft by installing tamper
proof smart meters and good monitoring. In the short-term, the savings from this could be upto $13 billion annually. In the
long-term there is the added benefit of minimizing transmission or technical losses by proper grid optimization and
improving the grid infrastructure. Overall, savings could be at the least $22 billion annually over the next 5 years.
3. Environmental: Currently India is under a lot of pressure to reduce its carbon emissions as imposed by international
regulatory organizations. By implementing smart grid technologies and using higher renewable energy sources, India has
the potential to offset this CO2 emission is a short time frame without compromising on growth and productivity.
4. Technology: The Smart Grid technology is already proving to be very reliable and having multiple benefits. It is reaching
main stream deployment in cities across developed countries. It is being considered the future for power grids across the
globe.

Challenges for Smart Grids

A combination of effective legislation and regulation will be needed to secure developments in a timely way. The Smart
Grids Technology Platform has identified following key challenges that impact on the delivery of the mandated targets for
utilization of renewable energy, increasing efficiency, minimizing costs, carbon emission and environmental impacts while
maximizing system reliability, resilience and stability by 2020 and 2050.

Government Support: The industry may not have the financial capacity to fund new technologies without the aid of
government programs to provide incentives for investment.
Lack of policy and regulation: No defined standards and guidelines exist for the regulation of smart grid initiatives in
India.
Speed of technology development: The solar cell, the basement fuel cell, and the chimney wind generator were predicted
50 years ago as an integral part of the home of the future. This modest historical progress will need to accelerate.
Compatible equipment: Some older equipment must be replaced as it cannot be compatible with smart grid technologies.
This may present a problem for utilities and regulators since keeping equipment beyond its depreciated life minimizes the
capital cost to consumers. The early retirement of equipment may become an issue.
Capacity to absorb advanced technology: Most DISCOMS have limited experience with even basic information and
communications technology (ICT) and, as a result, they have weak internal skills to manage this critical component of smart
grids.
Consumer education: If a company installs advanced metering and two-way communication along with time-of-use rates,
the question is “Will customers use it?” If there aren’t enough customers who use the features, the benefits of a smart grid
will not be achieved. Thus, for a smart grid implementation sufficient marketing analysis and product design to optimize the
likelihood that customers will use the new technology, and an education, communication and public relations program
aimed at creating an understanding of smart grids.
Strengthening the grid: ensuring that there is sufficient transmission capacity to interconnect energy resources, especially
renewable resources.
Developing decentralized architectures: enabling smaller scale electricity supply systems to operate harmoniously with
the total system.
Developing communications infrastructure: to allow potentially millions of parties to operate and trade in the single
market.
Active demand side: enabling all consumers, with or without their own generation, to play an active role in the operation of
the system.
Integrating intermittent generation: finding the best ways of integrating intermittent generation including residential
micro-generation.
Enhanced intelligence: of generation, demand and most notably in the grid.
Capturing the benefits of DG and storage.
Preparing for electric vehicles: whereas Smart Grids must accommodate the needs of all consumers, electric vehicles are
particularly emphasized due to their mobile and highly dispersed character and possible massive deployment in the next
years, what would yield a major challenge for the future electricity networks.
 Smart Grid Implementation Challenges in India

The Power Industry calls for a complete switch into the next generation through automation. Despite monetary issues,
power utilities need to begin with basic automation systems eventually upgrading to the advanced systems. By analyzing the
growing power demand and market competence, this is the only way-forward for the domestic power industry. The
implementation of Smart Grid is not going to be an easy task as the Indian power sector poses a number of issues such as
minimizing T&D losses, power theft, inadequate grid infrastructure, low metering efficiency and lack of awareness.

Power theft: Power theft has been one of the major issues in India. A few ways to help prevent the power theft are the use
of overhead lines that are insulated and the LT overhead wires used for distribution of power could be replaced with
insulated cables in order to minimize the theft of energy through hooking. The conventional energy meters could be
replaced with digital tamper proof meters and the use of prepaid card is yet another solution to eradicate theft of energy.
Inadequate Grid Infrastructure: For India to continue along its path of aggressive economic growth, it needs to build a
modern, intelligent grid. It is only with a reliable, financially secure Smart Grid that India can provide a stable environment
for investments in electric infrastructure - a prerequisite to fixing the fundamental problems with the grid.
Low metering efficiency: The commercial losses are mainly due to low metering efficiency, theft & pilferage. This may
be eliminated by improving metering efficiency, proper energy accounting & auditing and improved billing & collection
efficiency. Fixing of accountability of the personnel / feeder managers may help considerably in reduction of AT&C loss.
Lack of awareness: The understanding of consumers on how power is delivered to their homes is very minimal. Before
implementing Smart Grid concepts, they should be educated about the Smart Grids, the benefits of Smart Grid and Smart
Grid’s contribution to low carbon economy. Consumers should be made aware about their energy consumption pattern at
home, office etc. Utilities need to focus on the overall capabilities of Smart Grids rather than mere implementation of
smart meters. Policy makers and regulators must be very clear about the future prospects of Smart Grids.

BENEFITS
1. Reliability of the system increases: Through improved monitoring and management technologies, the Smart Grid will
self-heal by redirecting energy during power outages to provide more reliable service.

 Higher customer satisfaction

 Operates resiliently against attack and natural disaster.
 Increased employee safety
 Meet increasing demand
 Decreases brownouts, blackouts, and surges

2. Improve Efficiency: Greater information and control over the grid will allow operators to draw energy supply from more
efficient, renewable resources and optimize the grid assets.

 Reduces lines losses on both T & D

 Reduces transmission congestion
 Reduces peak load and energy consumption
 Reduces use of inefficient generation
 Extend life of system’s assets
 Increase asset utilization

3. Improves Economic: Improved reliability will give monetary benefit to customers, society, utilities and government.

 Increases revenues as theft of service is reduced

 A flatter load profile will reduce operating and maintenance (O&M) costs
 Increases opportunity to reduce transportation costs by using EVs
 Reduces capital cost
 Increases opportunity to sell electricity back to the grid
 Increases opportunity to leverage RERs
 Increases opportunity to reduce customers' energy consumption

4. Improves Environmental: The Smart Grid is necessary for the efficient integration of renewable energy, leading to
fewer greenhouse gas emissions and reduced use of peak energy generators.
  Reduces use of inefficient generation
 Improved public health
 Reduces green house gas emission
 Support renewable energy resources

5. Self-Healing: A smart grid automatically detects and responds to routine problems and quickly recovers if they occur,
minimizing downtime and financial loss.
6. Motivates and Includes the Consumer: A smart grid gives all consumers - industrial, commercial, and residential -
visibility into real-time pricing, and affords them the opportunity to choose the volume of consumption and price that best
suits their needs.
7. Resists Attack: smart grid has security built-in from the ground up.
8. Accommodates All Generation and Storage Options: A smart grid enables "plug-and-play" interconnection to multiple
and distributed sources of power and storage (e.g., wind, solar, battery storage, etc.)
9. Optimizes Assets and Operates Efficiently: A smart grid enables us to build less new infrastructure, transmit more
power through existing systems, and thereby spend less to operate and maintain the grid.
 Resilient and Self-healing Grid

Extreme weather and other natural disasters can threaten lives, disable communities, and devastate electric utilities’
generation, transmission, and distribution systems. The majority of outages result from damage to the millions of miles of
distribution lines. Utilities and their crews have continued to improve disaster response, focusing on upgraded equipment,
advanced communications, rapid deployment of staged resources from their own and other utilities, and the systematic
application of lessons learned. However, customers’ expectations of service reliability have changed dramatically with the
evolution of the 24/7, digitally connected society. Even with enhanced response and heroic efforts by crews, restoration that
stretches to days, and in some cases weeks, is no longer acceptable.

The resilience of the grid is based on three elements: prevention, recovery, and survivability.

Damage prevention refers to the application of engineering designs and advanced technologies that harden the
distribution system to limit damage.
System recovery refers to the use of tools and techniques to quickly restore service to as many affected customers as
practical.
Survivability refers to the ability to maintain some basic level of electrical functionality to individual consumers or
communities in the event of grid disturbance without complete access to the grid.

Improving the distribution system’s resiliency requires advances in all three aspects.

Resilient Electric Grid (REG) is an effort to “keep the lights on” in the event of a power outage by enabling distribution
level power substations to share power with one another. The primary goal of REG is to develop and demonstrate an
inherently fault current limiting, high-temperature, superconducting cable for increased electric grid resiliency. This
technology offers several benefits, most significantly allowing substations to interconnect to share power and assets without
the risk of fault currents cascading through the grid and causing damage.

A self-healing grid is a power system that could identify and fix its own problems, without direct human intervention. A
self-healing grid uses digital components and real-time secure communications technologies installed throughout to monitor
its electrical characteristics at all times and constantly tune itself so it operates at an optimum state. It has the intelligence to
constantly look for potential problems caused by storms, catastrophes, human error or even sabotage. It will react to real or
potential abnormalities within a fraction of a second, just as a military fighter jet reconfigures itself to stay aloft after it is
damaged. The self-healing grid isolates problems immediately as they occur, before they cascade into major blackouts, and
reorganizes the grid and reroutes energy transmissions so services continue for all customers while the problem is physically
repaired by line crews.
A smart self-healing grid can provide a number of benefits that lead to a more stable and efficient system. Three of its
primary functions include:

Real-time monitoring and reaction, which allows the system to constantly tune itself to an optimal state;
Anticipation, which enables the system to automatically look for problems that could trigger larger disturbances; and
Rapid isolation, which allows the system to isolate parts of the network that experience failure from the rest of the system,
to avoid the spread of disruption and enable a more rapid restoration.

As a result of these functions, a self-healing smart grid system is able to reduce power outages and minimize their length
when they do occur. The smart grid is able to detect abnormal signals, make adaptive reconfigurations and isolate
disturbances, eliminating or minimizing electrical disturbances during storms or other catastrophes. And, because the system
is self-healing, it has an end-to-end resilience that detects and overrides human errors that result in some of the power
outages, such as when a worker error left millions of California residents without electricity in September 2011.

Present development & International policies in Smart Grid

Smart Grid Development and Policies of India

India’s Smart Grid policy is an emerging part of its nationwide energy policy. The policy is being jointly developed by a
collaborative grouping of central and state governmental bodies and subject matter experts from industry, academia and
non-governmental research and development organizations. India’s Smart Grid efforts primarily concern three main issues
which are

o Accommodation of load growth in a fast-growing economy

o Extending electricity to rural areas
o Load management and loss mitigation

As a matter of operational services the central government is most actively involved in generation and transmission domains
whereas the states control distribution services. This in itself is an important issue in India today as the state of distribution
finances are not significant enough to provide for the increased demands which are being requested of them. State
governments are looking to the central government to provide funding and resources which will allow for upgrades,
expansion and re-engineering at an unprecedented rate. One of the main projects associated with this effort is the rural
electrification and modernization project known as RGGVY.

Overall standards for the type of network are being drafted. In 2010 and 2011, India boosted the level of announced
expenditures, placing it among the top 10 countries in the world in terms of smart grid spending.

Primary responsibility for the grid in India lies with the Ministry of Power (MOP). Under MOP jurisdiction are the Central
Power Research Institute (CPRI), the Central Electric Authority (CEA), and the Power Finance Corporation (PFC). In
addition, the government has also created the Smart Grid Task Force (SGTF), an inter-departmental group that not only
includes the MOP and its organizations, but reaches out to the Ministry of New and Renewable Energy (MNRE), the
Ministry of Communications and Information Technology (MCIT), and the Department of Science and Technology (DST).
Like several other countries, India has set up a public-private partnership, the India Smart Grid Forum, which brings
together utilities, industry, academia, and others interested groups.

The chronology and lineage of legislative efforts, programs and associated schemes which have led up to the development
of a Indian Smart Grid which originate with a fundamental shift towards private involvement in energy production and
transmission and the unbundling of the power sector from total government control in the 1990s. The government’s desire to
formulate a scheme to encourage greater use of ICT to enable India’s electric grid by make three fundamental improvements
to the existing grid:

o Advanced metering to reduce unacceptably high level of losses

o Improving system reliability on a near real-time basis
o Developing a smart grid to manage loads, congestion and shortfall

The Electricity Act of 2003 and National Energy Policy of 2005 established the following national objectives:
 o To provide access to electricity for all households
o To eliminate shortages and establish adequate spinning reserves
o To develop standards to address reliability and quality of power
o To increase per capita availability of energy
o To establish minimum 1 unit per household per day consumption level
o To make the power sector commercially viable
o To protect consumers’ interests

The next most important Smart Grid related national energy policy decision occurred in 2008 with the implementation of
the Re-Structured Accelerated Power Development and Reforms Program (R-APDRP). This program is designed to take 3-
5 years to implement and has several parts. The first part is concerned with the information and communications technology
(ICT) enablement of power systems and investments of power infrastructure in an effort to first measure and then mitigate
losses associated with operating inefficiencies and energy theft. The primary goal of the program is a reduction in losses,
with subsequent portions focusing on physical re-engineering of the grid as indicated by the ICT driven data. Other goals of
R-APDRP include:

o Renovation and modernization (R&M) of power plants

o Strengthening and improvement of sub-transmission and distribution networks
o Development of adequate spinning reserves
o Development of power systems automated controls

Besides governmental participants, there are numerous other hybrid-governmental and non-governmental organizations who
are vital contributors to the development of India’s Smart Grid vision, and who are also associated with the SGTF and the
Forum. The combined work effort of the Smart Grid Task Force and the Smart Grid Forum is divided into 7 functioning
workgroups: WG1-Advanced Transmission, WG2- Advanced Distribution, WG3- Communications, WG4- Metering, WG5-
Consumption and Load Control, WG6- Policy and Regulation, and finally WG7- Architecture and Design.

India’s Smart Grid vision as expressed by the India Smart Grid Forum includes five fundamental objectives:

o End of Load Sharing- peak load shifting through a combination of direct control and differential pricing
(demand response/dynamic (DSM))
o Reliable Power- Robust systems with Self-healing capabilities through monitoring
o Cheaper Power- Dramatic improvement in AT&C losses, real time monitoring load sources
o Shifting the Peak away from Costly Power- Better utilization of Assets
o More Sustainable Power- Integration of green and renewable resources at a massive scale, enough to
increase energy independence

Smart Grid Development and Policies of China

Smart Grid Development

In 2010, China announced that construction of a smart grid was a national priority, with completion planned for 2020.
Subsequently, the State Grid Corporation of China (SGCC), which controls electricity distribution, announced that
construction will begin on major nationwide grid upgrades in 2011. Cost of the projects is estimated to be $100 billion
through 2020. As a result of the increased spending, China surpassed the United States in 2010 in total smart grid
expenditures, and is anticipated to spend more than any other country on smart grid developments for several years at least.
As China establishes standards, seeks equipment, and develops its own technologies, it play a central role in setting the tone
of smart grid development worldwide, through the sheer size of its smart grid activities.

Despite China’s centralized structure, a number of government agencies share responsibilities for smart grid development.
The State Electricity Regulatory Commission (SERC) oversees regulatory policies and rate structures. The National
Development and Reform Commission (NDRC), is the central planning authority for all significant national initiatives of
any description. The National Energy Administration has responsibility for administering energy related programs. China’s
Energy Conditions and Policies, announced in 2007, established energy policies and targets to be achieved in the 11th Five
Year Plan and beyond, as well as a number of measures and targets focused on smart grid measures to achieve policy goals.
In addition, like many other countries, China created a hybrid governmental/industrial organization, the China Electricity
Council (CEC) to promote research and development of smart grid applications. Operating under the CEC, the SGCC,
which controls the T&D network, coordinates and guides smart grid developments in China.
The SGCC, the largest single electric power entity in China, in 2009 announced a multi-stage ten-year plan for the
deployment of smart grid. The initial phase of the plan calls for pilot programs and planning initiatives through 2010. The
second phase, undertaken concurrently, consists of development of standards through 2014 and construction projects
beginning in 2011 and running through 2015. The final phase of the plan focuses on system upgrades that will begin in 2016
and culminate in 2020.

In 2010, China’s smart grid investment surpassed that of the United States to make it the world leader in smart grid
spending ($7.3 billion compared to $7.1 billion in the United States). The vast potential of the smart grid market in China
has resulted in a number of joint ventures with companies from outside China such as Siemens, General Electric, IBM,
Nissan, and General Motors. One indication of the scale of China’s announced plans is the effort to link remote energy
resources to energy markets through construction of major transmission lines that will make China the world’s largest
consumer of copper.

Smart Grid Policies

Since the 1980s, China’s energy consumption has been growing at an unprecedented rate due to rapid economic
development and thus huge CO2 emissions. Between 1990 and 2010, China’s electricity generation increased from 621 to
4,206 Terawatt-hours (TWh), with annual growth rates of electricity demand ranging from 10% to 15%. In 2010, 19% of
China’s electricity generation came from renewable resources, second only to Italy among the six countries examined here.
China has experienced several major power outages since 2005, and the shortfall in electricity has started to hurt China’s
economy. In order to meet the increasing demand and secure economic growth, the Chinese government will invest 286
billion yuan ($45 billion US dollars) in smart-grid deployment between 2011 and 2015. The Amendment of the Renewable
Energy Law (2009) urges utilities to develop and apply smart grid and energy storage technologies to improve grid
operation and management, and facilitate interconnection of distributed renewable energy. The 12th Five-year Plan, a series
of major social and economic initiatives, sets separate targets for energy intensity (16% reduction by 2015), non-fossil fuel
energy (11% of the total primary energy consumption by 2015) and carbon intensity (17% reduction below 2011 by 2015).
Smart grids and clean energy technologies are seen as effective approaches to achieve these targets. By 2015, several long-
distance Ultra High Voltage (UHV) transmission lines and 200 thousand kilometers of transmission lines (333 kV and
above) will be constructed. The Plan also proposes the “Rural Electricity Supply Project” to upgrade rural electric grids and
meet the increasing demand of rural areas. Some of the targets include: developing 1000 PV demonstration villages, 200
green energy counties, 300 hydropower and rural electrification counties, and 10,000 MW of small hydropower. The
Ministry of Science and Technology released the “Special Planning of 12th Five-Year Plan on Smart Grid Major Science
and Technology Industrialization Projects” in May, 2012. It identified nine key tasks, including large-scale grid-connected
intermittent renewable energy technology, grid technology for supporting electric vehicles, large-scale energy storage
systems, intelligent distribution technology, intelligent grid operation and control, intelligent transmission technology and
equipment, grid information and communication technologies, flexible power transmission technology and equipment, and
smart grid integrated comprehensive demonstrations. 73 Resource allocation optimization, clean energy development,
power system reliability, diverse customer needs, energy efficiency improvement, and technology innovation are the major
drivers for smart grid deployment in China. State Grid Corporation of China (SGCC), the largest power company and the
major smart grid policy implementer in China, provides services to over one billion customers and covers 88% of the
national territory. In May 2009, SGCC announced a plan for developing a “strong and smart grid” in China by 2020. UHV
transmission and highly efficient distribution transformer that enables the expansion of transmission and distribution
capacity and reduces line losses are key technologies to be developed and deployed. SGCC’s smart grid development plan is
distinct in its focus on the transmission, rather than the distribution side, due to the fact that major power generation sources
in China, such as coal and hydropower are located in remote areas, and there are huge disparities among power generation
in different regions. Other reasons for the focus on transmission might be the relatively primitive structure at the distribution
ends, and the unique asset ownership and management structure of utilities and electric markets. With an emphasis on
power generation and transmission, the Chinese electricity market still has a long way to develop an effective interaction
mechanism between customer and utility companies, such as dynamic electricity prices and demand response programs.

Smart Grid Development and Policies of the United States

Smart Grid Development
The electricity industry spent an estimated total $18 billion for smart grid technology deployed in the United States during
the 4-year period of 2010 through 2013 (BNEF 2014). Smart grid investments under the ARRA accounted for nearly
half—approximately $8 billion—during the same time frame (DOE 2014a). Annual smart grid spending nationwide hit a
high of $5.2 billion in 2011, coincident with peak deployment spending from the cost-shared ARRA projects, and is now
declining toward an annual level of $2.5 billion expected in 2014 (BNEF 2014). The decline in investment is largely due to
reduced spending for advanced metering infrastructure (AMI), which was heavily influenced by ARRA funding. However,
industry analysts expect annual spending on distribution system smart grid technologies to gradually increase from $1.2
billion yearly in 2011 to $1.9 billion in 2017, with decreased spending ($3.6 billion in 2011 down to $1.2 billion in 2017)
for AMI (BNEF 2014). In comparison, total capital investments by investor-owned utilities (in 2012 dollars) in electricity
delivery systems averaged $8.5 billion annually for transmission system upgrades and $17 billion annually for distribution
system upgrades from 2003–2012 (EIA 2014). As of March 2013, joint federal and private expenditures under ARRA
totaled $6.3 billion from the Smart Grid Investment Grants (SGIG), which represent the largest portion of ARRA
investments. Between 2009 and 2015, DOE and the electricity industry will jointly invest more than $7.9 billion in the
SGIG projects, which involve more than 200 electric utilities and other organizations to modernize the electric grid,
strengthen cyber-security, improve interoperability, and collect an unprecedented level of data on smart grid operations,
benefits, and utility impacts (DOE 2013a). In the same time frame, an additional $1.6 billion in cost-shared funding will
support energy storage demonstrations and regional demonstrations to assess emerging smart grid concepts (DOE 2014a).
Another $100 million in federal funding has supported 52 smart grid workforce training projects in the same time frame
(DOE 2014a). Estimates of overall spending required to fully implement the smart grid vary. The Electric Power Research
Institute (EPRI) estimates that spending of $338-$476 billion over a 20-year period is required to fully implement the smart
grid, including preliminary estimates of $82-$90 billion for transmission systems and substations, $232-$339 billion for
distribution systems, and $24-$46 billion for consumer systems (EPRI 2011). The Brattle Group estimates that total
transmission and distribution investment may need to reach nearly $900 billion (nominal) by 2030 to meet forecast
electricity demand (Brattle Group 2008).

Smart Grid Policies

The United States aspires to a low-carbon economy, but its current energy system is carbon intensive. The U.S. is second
only to China in total energy-related CO2 emissions – at 5,610 million metric tons (Mt) of CO2 in 2010. On a per capita
basis, the U.S. is also highly carbon intensive – averaging 18.1 metric tons per person in 2010. Its CO2 emissions are down
from a peak of 6,016 metric tons in 2007 and from 19.9 metric tons per capita in the same year, just preceding the 2008
economic downturn. In his 2011 State of the Union address, President Obama proposed a goal of generating 80% of the
nation’s electricity from clean energy sources by 2035; however, only 11% of its electricity currently comes from renewable
sources, compared with 27% in Italy and 19% in China. Given the President’s clean energy imperative, the government
recognizes that a smarter, modernized and expanded electric system is essential to America’s world leadership in a clean-
energy future. Development of policies has occurred at both federal and state levels to facilitate the evolution towards a 21st
century grid. The four types of policies are widely implemented in four states of U.S. [California (CA), Georgia (GA), New
York (NY), and Texas (TX)] : net metering policies, interconnection standards and rules, smart metering targets, and
dynamic pricing policies.

Net Metering Policies. Net metering allows customers to use a single meter to measure both the inflow and outflow of
electricity, thus enabling them to install and interconnect their own generators with utility grids. With net metering,
customers can use the electricity generated from their on-site facilities to offset their electricity consumption and sell excess
generation to the utility typically at a retail price, thereby encouraging the deployment of customer-owned distributed
energy systems.

Interconnection Standards and Rules. Interconnection standards establish uniform processes and technical requirements
for utilities when connecting DG systems to the electric grid. It allows DG developers to predict costs and time, and ensure
the safety and reliability of interconnection processes.

Smart Metering Targets. A smart meter reader is a device that can measure real-time electricity consumption and
communicate the information back to utilities. Smart metering targets typically establish smart meter reader deployment
plans for utilities, covering the timeline, and the type and number of smart meters to be installed.

Dynamic Pricing Policies. Dynamic pricing is a market-driven approach to boost demand response in electricity markets.
The fundamental idea is to provide accurate price signals to customers, and let them decide whether to continue
consumption at higher prices or to cut electricity usage during peak times.
 Smart Energy Resources

Increased demands on the nation's electrical power systems and incidences of electricity shortages, power quality problems,
rolling blackouts, and electricity price spikes have caused many utility customers to seek other sources of high-quality,
reliable electricity. Smart Energy resources provide an alternative to or an enhancement of the traditional electric power
grid. Smart energy resources include solar power, wind power, fuel cells, bio-fuel systems, battery storage systems, electric
vehicles, etc.

Solar PV : Solar panels consist of solar cells that contain PV material, which exhibits PV effect. Solar cell that is exposed
to light transfers electrons between different bands inside the material. This in turn results in potential difference between
two electrodes, which caused direct current (DC) to flow. There are several main PV applications, such as solar farms,
building, auxiliary power supply in transportation devices, stand-alone devices, and satellites. In order to incorporate solar
farm into utility power system, alternating current (AC)/DC converter is needed as well as the corresponding relay
protection. The main issue with PVs is intermittency. Since PV is unreliable power source that cannot always be counted on,
several efforts have been undertaken to increase the reliability of PVs. One of the most successful ones was adding the
battery storage. where electric energy is stored during the off-peak hours or curtailment period, and then reused when PVs
are not available.

Solar Thermal: Solar thermal energy (STE) is a technology that converts solar energy into thermal energy (heat). There are
three types of collector levels that are based on the temperature levels: low, medium, and high. In practice, low-temperature
collectors are placed flat to heat swimming pools or space heating, medium-temperature collectors are flat plates used for
heating of water or air, and high temperature collectors are used for electric power production. In essence, heat gain is
accumulated from the sun rays hitting the surface of the object. Then, heat is transferred by either conduction or convection.
Insulated thermal storage enables STE to produce electricity during the days that have no sunlight. The main downside to
STE plants is the efficiency, which is a little over 30% at best for solar dish/stirling engine technology, while other
technologies are far behind.

Wind power: Wind power is obtained by converting the energy of the wind by wind turbines into electricity. It is highly
desirable renewable energy source because it is clean technology that produces no greenhouse gas emissions. The main
downside of wind power is it intermittency and visual impact that it creates on the environment. During the normal
operation, all of the power of the wind. farm must be utilized when it is available. If it is not used, the wind farm is either
curtailed or power generated can be used to charge the battery energy storage(BES) if one is associated with wind farm.
Wind power is higher at higher speed of wind, but since the speed of the wind constantly changes, power comes and goes in
short intervals. Inconsistency in power output is the main reason why wind farms cannot be used in utility’s base load
generation portfolio. Capacity factor of a wind power turbine ranges anywhere from 20% to 40%.

Hydro power: Hydroelectricity is the most widely used form of renewable energy and its potential has already been
explored to a large extend or is compromised due to issues such as environmental impacts on fisheries, and increased
demand for recreational access. Modular and scalable Next generation kinetic energy turbines can be deployed in arrays to
serve the needs on a residential, commercial, industrial, municipal or even regional scale. Microhydro kinetic generators
neither require dams nor impoundments, as they utilize the kinetic energy of water motion, either waves or flow. No
construction is needed on the shoreline or sea bed, which minimizes environmental impacts to habitats and simplifies the
permitting process. Such power generation also has minimal environmental impact and non-traditional microhydro
applications can be tethered to existing construction such as docks, piers, bridge abutments, or similar structures.

Waste-to-energy: Municipal solid waste (MSW) and natural waste, such as sewage sludge, food waste and animal manure
will decompose and discharge methane-containing gas that can be collected and used as fuel in gas turbines or micro
turbines to produce electricity as a distributed energy resource. Additionally, these waste materials, such as sewage sludge,
can be transform into bio-fuel that can be combusted to power a steam turbine that produces power. This power can be used
in lieu of grid-power at the waste source (such as a treatment plant, farm or dairy).

Geothermal: Geothermal power is extracted from the earth through natural processes. There are several technologies in use
today, such as binary cycle power plants, flash steam power plants, and dry steam power plants. The main issue with
geothermal power is low thermal efficiency of geothermal plants, even though capacity factor can be quite high (up to 96%).
Geothermal plants can be different in size. Geothermal power is reliable and cost effective (no. fuel), but initial capital costs
associated with deep drilling as well as earth exploration are main deterring factors from higher penetration of geothermal
resources.
Vehicle-to-grid: Future generations of electric vehicles may have the ability to deliver power from the battery in a vehicle-
to-grid into the grid when needed. An electric vehicle network has the potential to serve as a distributed energy storage
system (DESS).

Combined heat and power: Combined heat and power (CHP) systems, also known as cogeneration, generate electricity
and useful thermal energy in a single, integrated system. CHP is not a technology, but an approach to applying technologies.
Heat that is normally wasted in conventional power generation is recovered as useful energy, which avoids the losses that
would otherwise be incurred from separate generation of heat and power. While the conventional method of producing
usable heat and power separately has a typical combined efficiency of 45 percent, CHP systems can operate at levels as high
as 80 percent.

Energy storage elements:

1. Flywheel Energy Storage – FES:

A flywheel device stores electric energy as kinetic (or inertial) energy of the rotor mass spinning at very high speeds. Fig.
shows the structure of a conventional flywheel unit. The charging/discharging of the device is carried out through an
integrated electrical machine operating either as a motor to accelerate the rotor up to the required high speeds by absorbing
power from the electric grid (charge mode) or as a generator to produce electrical power on demand using the energy stored
in the flywheel mass by decelerating the rotor (discharge mode). The system has very low rotational losses due to the use of
magnetic bearings which prevent the contact between the stationary and rotating parts, thus decreasing the friction. In
addition, because the system operates in vacuum, the aerodynamic resistance of the rotor is outstandingly reduced. These
features permit the system to reach efficiencies higher than 80%. They take up relatively little space, have lower
maintenance requirements than batteries, and have a long life span. Flywheel devices are relatively tolerant of abuse, i.e. the
lifetime of a flywheel system will not be shortened by a deep discharge unlike a battery. The stored energy is directly
proportional to the flywheel rotor momentum and the square of the angular momentum, a reason why increments in the
rotation speed yield large benefits on the storage energy density. Keeping this in mind, the classification in two types of
flywheels arises: high speed flywheels (HS: approximately 40000rpm) and low speed flywheels (LS: approximately
7000rpm). High-speed flywheels allow obtaining very compact units with high energy densities.

2. Pumped hydro storage (PHS):

Pumped-storage hydroelectricity (PSH), or Pumped Hydroelectric Energy Storage (PHES), is a type of hydroelectric energy
storage used by electric power systems for load balancing. The method stores energy in the form of gravitational potential
energy of water, pumped from a lower elevation reservoir to a higher elevation. Low-cost off-peak electric power is used to
run the pumps. During periods of high electrical demand, the stored water is released through turbines to produce electric
power. Although the losses of the pumping process makes the plant a net consumer of energy overall, the system increases
revenue by selling more electricity during periods of peak demand, when electricity prices are highest.
3. Superconducting magnetic energy storage (SMES): SMES systems work according to an electrodynamics principle.
The energy is stored in the magnetic field created by the flow of direct current in a superconducting coil, which is kept
below its superconducting critical temperature (4-100 K). The main component of this storage system is a coil made of
superconducting material. Additional components include power conditioning equipment and a cryogenically cooled
refrigeration system. The main advantage of SMES is the very quick response time: the requested power is available almost
instantaneously. Moreover the system is characterized by its high overall round-trip efficiency (85 % - 90 %) and the very
high power output which can be provided for a short period of time. There are no moving parts in the main portion of
SMES, but the overall reliability depends crucially on the refrigeration system. In principle the energy can be stored
indefinitely as long as the cooling system is operational, but longer storage times are limited by the energy demand of the
refrigeration system.

4. Ultracapacitors: It deliver quick bursts of energy during peak power demands, then quickly store energy and capture
excess power that is otherwise lost. They efficiently complement a primary energy source in today's applications because
they discharge and recharge quickly. Due to their many benefits, ultracapacitors are currently being utilized in thousands of
different applications (Harvest power from regenerative braking systems and release power to assist train or hybrid buses
acceleration, open aircraft doors in the event of power failures, provide energy storage for firming the output of renewable
installations and increasing grid stability), and considered in an equally diverse range of future applications.

Utilities are being required to interconnect these resources with the grid to improve the efficiency and reliability of power
system operations. They offer consumers the potential for lower cost, higher service reliability, high power quality,
increased energy efficiency, and energy independence. The use of renewable distributed energy generation technologies and
"green power" can provide a significant environmental benefit. Smart energy resources are electric generation units located
within the electric distribution system at or near the end user.
 Smart substations

A substation is integral part of a power system and form important links between the generating station, transmission
systems, distribution systems and the load points. Substations transform voltage from high to low, or the reverse using
transformer. Electric power may flow through several substations between the generating plant and the consumer, and the
voltage may be changed in several steps.

A: Primary power lines' side B: Secondary power lines' side

1. Primary power lines 2. Ground wire 3. Overhead lines
4. Potential Transformer 5. Disconnect switch 6. Circuit breaker
7. Current transformer 8. Lightning arrester 9. Main transformer
10. Control building 11. Security fence 12. Secondary power lines

The number of distributed energy resources and new appliances with power electronics in the distribution grid rapidly
grows. This leads to power quality deterioration and power flow fluctuations. A smart MV-station (33/11 or 6.6 kV) / LV-
station (11 or 6.6 kV/ 400 V) has been designed known as smart substation to manage voltage fluctuation, maintaining
power quality and reliability. Intelligent components of smart substation increase the immunity against power quality
problems, such as harmonics, voltage dips, voltage swell, flicker. Additional features of the Smart MV/LV-station are:

o Remote monitoring of sensors and power equipments(Power x-mer, CTs, PTs, CBs, etc.).
o An electric storage system, consisting of a battery and a bi-directional inverter (ESI)
o Step less control of the voltage level on the LV bus bar, performed by a smart transformer
o Bidirectional communication between home appliances and the smart substation, using a home automation
system.
o Perform “expert system” analysis
o Inform engineers or dispatchers about possible incipient problems
o Supply “operational and non-operational” data to control center for analysis of power system condition.

Smart substation enables a significant reduction in harmonic voltages and resonances (70%), as well as a reduction of the
peak load by 30%. It also improves the reliability of the power supply. This is achieved through a combination of features,
including overload prevention, prioritised energy supply and the coordination of supply from local energy storage and
distributed generation.
A smart substation able to remotely monitor the status of the Transformers by transmitting data to a smart grid monitoring
center server through a DTU or RTU directly.
Functions of the Smart Substation

o Effective gearing of demand and supply despite the great diversity of local grids.
o Reliable & efficient handling of decentralised energy generators in order to facilitate an affordable and
sustainable energy supply in the future.
o Autonomous operation during calamities, through deployment of electric storage and decentralised
generation.

Management of current quality through full control of power peaks from intermittent and stochastic generators.

Substation Automation

Electric utilities, especially in developed countries, continuously encounter the challenge of providing reliable power to the
end-users at competitive prices. Due to several reasons such as equipment failures, lightning strikes, accidents and natural
catastrophes, power disturbances and outages in substations occur and often result in long service interruptions. Thus, the
substations should be properly controlled and monitored in order to take the necessary precautions accurately and timely. In
this respect, substation automation, which is the creation of a highly reliable, self healing power system that rapidly
responds to real time events with appropriate actions, ensures to maintain uninterrupted power services to the end users.

Substation Automation enable an electric utility to remotely control and monitoring of the switch yard, recording, protection
of the power equipment, revenue metering and automation functions for energy management and assert management.
Conventional substation is composed with interlocking logic, RTU (Remote Terminal Unit), Relays, conventional
switchgear and CT/PT (current/potential transformers). Substation automation system is structured in three basic levels. The
station level provides an overview across the whole station and is located in a shielded control room. Station level includes
HMI Workstation, Master Station Computer, Backup Station Computer and GPS (Global Positioning System) receiver, etc.
The bay level conducts maintenance work only within one bay and it is usually close to the switchgear. Bay level includes
protection and control IEDs (intelligent electrical devices) of different bays such as circuit breakers, transformers, and
capacitor banks. Equipment in bay level and station level are called secondary equipment. Process level provides the
interface between the substation automation system and the switchgear. Process level includes switchyard equipment (also
primary equipment) such as CTs/PTs, remote I/O, actuators, merging units etc.

Process level is designed primarily to interface with nonconventional CTs and VTs, a process level communication will also
include “transitional” hardware that will interface with existing copper CTs and VTs. The benefits of the process near
implementation of the IEC 61850-based technology include elimination of copper, the elimination of CT saturation, and
avoidance of CT open circuits, which are a serious safety hazard.

With this solution, new designs become possible, where electronic transformers are used
instead of conventional transformers in the switchyard. The voltage and current signals are captured at the primary side,
converted to the optic signals by an merging unit (MU), and transferred to the protection and control devices via optical
fibers. This can lower the requirement of transformer
insulation and reduce the conducted and radiated interference suffered in the analog signal transmitted through legacy
wiring.

Substation automation benefits :

o Increased performance and reliability of electrical protection.

o Advanced disturbance and event recording capabilities, aiding in detailed electrical fault analysis.
o Display of real time substation information in a control center.
o Remote switching and advanced supervisory control.
o Increased integrity and safety of the electrical power network including advanced interlocking functions.
o Advanced automation functions like intelligent load-shedding.

Functioning of Substation Automation System (SAS)

Bus voltages and frequencies, line loading, transformer loading, power factor, real and reactive power flow, temperature,
etc. are the basic variables related with substation control and instrumentation. The various supervision, control and
protection functions are performed in the substation control room.

The relays, protection and control panels are installed in the controlled room. These panels along with PC aids in automatic
operation of various circuit breakers, tap changers, autoreclosers, sectionalizing switches and other devices during faults and
abnormal conditions.

Thus, primary control in substation is of two categories:

o Normal routine operation by operator’s command with the aid of analog and digital control system.
o Automatic operation by action of protective relays , control systems and PC.

The automated substation functioning can be treated as integration of two subsystems, as discussed below

(a) Control System

The task of control system in a substation includes data collection, scanning, event reporting and recording; voltage
control, power control, frequency control, other automatic and semiautomatic controls etc.

The various switching actions like auto reclosing of line circuit breakers, operation of sectionalizing switches, on-load tap
changers are performed by remote command from control room. The other sequential operations like load transfer from one
bus to another, load shedding etc. are also taken care by control center.

(b) Protective System

The task of protective system includes sensing abnormal condition, annunciation of abnormal condition, alarm, automatic
tripping, back-up protection, protective signaling.

The above two systems work in close co-operation with each other. Most of the above functions i.e. automatic switching
sequences, sequential event recording, compiling of energy and other reports, etc. are integrated in software in the substation
computer. This software is of modular design, which facilitates addition of new functions.

The communication between circuit breakers, autoreclosers and sectionalizing switches in the primary and secondary
distribution circuits located in the field and the PC in distribution substation control room is through radio telecontrol or
fibre optic channel or power line carrier channel as is feasible.
 Distribution Feeder Automation

Feeder networks are direct lines to customers. Power outages are more than inconveniences. Businesses go down.
Customers complain. Crews work overtime. Every minute is critical and costly. Hence, automation of feeder networks are
required. Distribution Feeder Automation is the monitoring and control of devices located out on the feeders themselves
such as Line reclosers, Load break switches, Sectionalizers, Capacitor banks & Line regulators. Building a feeder
automation system often involves multiple IP-based networks that make use of both wired and wireless architectures to
construct many distributed systems based on Feeder Terminal Units (FTUs). Unlike traditional systems that rely mainly on
manual operations, a feeder automation system can enhance the reliability and quality for electric power feeder systems,
reduce downtime when the system is out of order, and monitor the real-time operation status, reducing both risk and
maintenance costs.

DFA minimizes feeder down time by quickly and automatically restoring operation to serviceable feeder sections, while
isolating those requiring repair. This results in minimal outage time, fewer service calls, and reduced monitoring and
management demands. In its simplest configuration, DFA consists of two or more Automation Controllers and a high-speed,
IP-based network that allows for IEC 61850 peer-to-peer communications between controllers. Optional system components
include all types of switchgear, wireless communications system, and PC-based and substation-hardened Human Machine
Interfaces (HMI).

Feeder automation has a primary role because it provides the strongest business case for utilities compared to other Smart
Grid technologies. Feeder automation provides benefits that are six to eight times the cost of the technology, and the
payback period is well under three years.

There are three applications for feeder automation. The first is voltage control. By controlling the voltage on the feeders,
utilities can control the demand or load. This can be done during on-peak times for peak load reduction, and during off-peak
times to reduce electricity consumption.

Voltage control has always been used during peak periods because it reduces the need to deploy peaking generation plants,
which are very expensive. A typical utility is in peak load periods for less than 100 hours in a year, and the last thing it
wants to do is build a very expensive plant or purchase expensive power for this short period of time.

Off-peak voltage control, which hasn't been used by utilities, would save utilities a tremendous amount of money. The
higher the voltage at a home, the higher the home's electric bill will be. But because utilities make revenue based on how
much electricity they sell, most utilities have no incentive to conserve. They make more money if they deliver electricity at
higher voltages.

The second application for feeder automation is reactive power control. Reactive power takes up space on the electric
system but it is not used. We want our electric system to have a power factor of 1.0, which means all we have is real power
(watts), and no reactive power (VAR). We can eliminate reactive power by employing automation technologies to switch
capacitor banks on the feeders. The technology will improve the power factor, which reduces losses.

The third application, called Fault Detection Isolation Restoration (FDIR), is used to improve the reliability of the system.
When a disturbance occurs in the distribution network, the technology automatically detects the disturbance and locates it.
The system will open up switches on either side of the faulted segment to isolate it and restore service around that faulted
segment, which improves the reliability of the system. Improving reliability of the system is important for consumers, of
course, but utilities have strategic reasons to do this too. Utilities must report reliability performance to the power pools
they're part of and their performance is ranked according to various reliability indices.

There is a fourth part of this that involves adding a distribution management system (DMS) in the control center. The
DMS manages the increasing complexity of the distribution system, not only for these three applications, but also for
integrating renewable generation into the distribution system. The system was designed for power flowing in one direction,
from source to load. It was not designed, for example, for homeowners to put solar cells on their houses, generate power and
feed power back into the grid. Integrating DERs require a separate SCADA system for distribution, and we call that DMS.
 CLEAN DEVELOPMENT MECHANISM (CDM)
• It is a protocol to be followed by developing countries to reduce their carbon emission. • It was defined in Kyoto Protocol •
since India is an developing country, the protocol applies to India as well.

With rapid increase in industries, the demand for energy and electricity production increased drastically which lead to
socioeconomic and environmental problems. Among these, majorly concerned are greenhouse gas emissions (GHG) and the
cost involved for setting up a new energy generating projects.
The Kyoto Protocol was adopted in December 1997. The Protocol creates legally binding obligations for 38 industrialized
countries, including 11 countries in Central and Eastern Europe, to return their emissions of GHGs to an average of
approximately 5.2 percent below their 1990 levels as an average over the period 2008-2012. The targets cover the six main
greenhouse gases: carbon dioxide, methane, nitrous oxide; hydro fluorocarbons (HFCs); per fluorocarbons (PFCs); and
sulphur hexafluoride. The Protocol also allows these countries the option of deciding which of the six gases will form a part
of their national emissions reduction strategy. Some activities in the land-use change and forestry sector, such as
deforestation and reforestation that emit or absorb carbon dioxide from the atmosphere, are also covered.
Kyoto Protocol with a motto caring for climate, introduced three flexible mechanisms (CDM, joint implementation and
emission trading) to help both developed and developing nations for achieving their emission reduction targets as 5.2%
reduction in emissions on 1990 levels. India is a developing nation, so we use CDM for reducing GHG emission and
emission trading mechanism for trading the certified emission reduction (CERs) credits in the CO2 emission. This CERs
will help in getting back the capital cost invested for ERT. The main motto of CDM is to promote environmental friendly
generation technologies i.e., emission reduction projects in developing countries for socio-economic benefits.

Smart Meter
A smart meter is an electronic device that records consumption of electric energy and communicates the information to the
electricity supplier for monitoring and billing. Smart meters typically record energy hourly or more frequently, and report at
least daily. Smart meters enable two-way communication between the meter and the central system. Such an advanced
metering infrastructure (AMI) differs from automatic meter reading (AMR) in that it enables two-way communication
between the meter and the supplier. Communications from the meter to the network may be wireless, or via fixed wired
connections

Smart Metering technologies consist of several different technical components which may vary according to the specific
market conditions in different Member States, but the majority includes the following features:

- Accurate measurement and transmission of electricity, gas, water or heat consumption data
- Provision of a two-way information gateway and communication infrastructure between the meters and relevant parties
and their systems,
- raising awareness and empowering the consumer through delivery of actual consumption data
- improving Customer Relationship Management (CRM) and services, including automated billing/invoicing based on
detailed metering data
- managing energy networks/grids better by shifting or reducing energy consumption, e.g. through Demand Side
Management (DSM)
- enabling new energy services for improving energy-efficiency
- encouraging decentralised, micro-generation of energy, thus transforming the consumer into a energy producer
(“Prosumer”).

What makes it "smart"?

Smart Metering systems feature a number of innovations: digital technology, communications, control and better operation
of networks. Smart Metering technologies will change the way that metering works completely. They provide customers
with much more information on how they use energy and enable those customers to reduce their usage

What are the benefits of using smart meters?

For consumers
- consumers can be informed remotely (historical data) or locally (real-time data) on energy costs and carbon
emissions
- energy consumption of household gas, electrical and water equipment can be displayed on the appliance or
on displays
 - multi tariff functions can be added to allow demand response techniques
- allows electrical appliances to be automatically controlled
- allows the consumer to reduce costs by increasing energy consumption during off-peak cheaper tariff
periods.

For utilities
- gain first-class data
- influence the energy consumption of their users
- Improve profitability of the technology once Smart Metering is also used for gas, water and heat readings.
- a reduction in ‘costs to serve’
- open gateways for the delivery of energy services
- assistance in the development of liberalized energy market
- help for revenue protection
- monitoring of the generation from building renewable
- support in demand response techniques
- more effective grid management
- a new communication channel to customers.