UNIT-1 INTRODUCTION

1.1 Introduction of smart grid

A smart grid delivers electricity from suppliers to consumers using two-way digital technology to
control appliances at consumers' homes to save energy, reduce cost and increase reliability and
transparency. It is capable of assessing its health in real-time, predicting its behavior, anticipatory
behavior, adaptation to new environments, handling distributed resources, stochastic demand,
and optimal response to the smart appliances. It is a tool that allows electric utilities to focus on
evolving true business drivers by enabling cost containment, end-to-end power delivery control,
and a more secure infrastructure.
The grid is considered to have observability with nodes data integration and analysis to support
advances in system operation and control. This includes power delivery integration and high
level utility strategic planning functions.
The existing transmission and distribution systems use techniques and strategies that are old and
there is limited use of digital communication and control technology. To achieve improved,
reliable and economical power delivery information flow and secure integrated communication
is proposed. The Smart Grid with intelligent functions is expected to provide self correction,
reconfiguration and restoration, and able to handle randomness of loads and market participants
in real time, while creating more complex interaction behavior with intelligent devices,
communication protocols, standard and smart algorithms to achieve complex interaction with
smart communication and transportation systems.
The Smart Grid is planned to have the following key characteristics:
Self-healing: A grid, which is able to rapidly detect, analyze, respond and restore from
perturbations.
Empower and incorporate the consumer: The ability to incorporate consumer equipment
and behavior in the design and operation of the grid.
Tolerant of attack: A grid that mitigates and stands resilient to physical and cyber security
attacks.
Provides power quality needed by 21st century users: A grid that provides a quality of
power consistent with consumer and industry needs.

 Accommodates a wide variety of generation options: A grid that accommodates a wide

variety of local and regional generation technologies (including green power).
Fully enables maturing electricity markets: Allows competitive markets for those who
want them.
Optimizes assets: A grid that uses IT and monitoring to continually optimize its capital assets
while minimizing operations and maintenance costs. Overall, the Smart Grid design goals are to
provide grid observability; create controllability of assets, enhance power system performance
and security; and reduce costs of operations, maintenance, and system planning. Benefits of the
Smart Grid with bring forth the following:
Improved system performance meters.
Better customer satisfaction.
Improved ability to supply information for rate cases, visibility of utility operation / asset
management
Availability of data for strategic planning, as well as better support for digital summary
More reliable and economic delivery of power enhanced by information flow and secure
communication
Life cycle management, cost containment, and end-to-end power delivery is improved in the
smart grid design
Improved ability to supply accurate information for rate cases- with compounding impact in
regulatory utilities
Input visibility of utility operation to asset management.

UNIT-2 SMART GRID

A SMART GRID delivers electricity from supplier to consumers using two- way digital
technology to control appliances at consumers homes to save energy, reduce cost and increase
reliability and transparency. It overlays the electricity distribution grid with an information and
net metering system. Power travels from the power plant to your house through an amazing
system called the power distribution grid. Such a modernized electricity networks is being
promoted by many governments as a way of addressing energy independences, global warming
and emergency resilience issues. Smart meters may be part of smart grid, but alone do not
constitute a smart grid.

Fig:2.1 Smart grid overview

A smart grid includes an intelligent monitoring system that keeps track of all electricity flowing
in the system. It also incorporates the use of superconductive transmission lines for less power
loss, as well as the capability of the integrating renewable electricity such as solar and wind.
When power is least expensive the user can allow the smart grid to turn on selected home
appliances such as washing machines or factory processes that can run at arbitrary hours. At
peak times it could turn off selected appliances to reduce demand.

2.1 FUNCTIONS SUPPORTED BY THE SMART GRID

ARCHITECTURE
For the functional scope of the Smart Grid architecture eight functional scenarios have been
defined. A short description of each case is provided in the following subsections.
2.1.1 Variable-Tariff-Based Load
The key idea of this is a variable price profile given to the customer day ahead before the
delivery by a retailer. This profile is considered fixed after transmission to the customer and, as
such, the customer can rely on it. The price profile will look different for each day, reflecting
market conditions that vary from day to day. These variations will likely further increase with
expanding generation from fluctuating sources like wind power and photovoltaic. Generally, this
concept allows for integration of loads as well as of generation units at the customer site as it is
up to the customer which devices are allowed to be managed according to the variable tariff. To
enable in-home energy management, a suitable domestic system is required together with an
automatic home management device coupled to an intelligent meter.
2.1.2 Energy Usage Monitoring and Feedback
In the Action Plan for Energy Efficiency, the European Commission estimates the EU-wide
energy saving potential of households at approx. 27%.
As one important measure for realizing this potential, the action plan states that awareness must
be increased in order to stimulate end-customer behavioral changes. A timely display of energy
consumption is expected to have positive effects on energy savings. Personalized and welltargeted advice on how to save energy can further help exploit the savings potential. A portal or
display that combines information about present and past consumption, comparisons to average
consumption patterns, and precise suggestions how to further lower consumption, which are
tailored personally to the customer, is expected to be the most effective way of realizing the
targeted increase in households energy efficiency.
2.1.3 Real-time Portfolio Imbalance Reduction
This function is rooted in the balancing mechanism as used by Transmission System Operators
(TSOs) throughout the world. In this context, a wholesale market participant, that is responsible
for a balanced energy volume position, is called a Balance Responsible Party (BRP). These
parties have an obligation to plan or forecast the production and consumption in their portfolio,
as well as notify this plan to the TSO. Deviations of these plans may cause (upward or down-

ward) regulation actions by the TSO. The TSO settles the costs for the used reserve and
emergency capacity with those BRPs that had deviations from their energy programs. On
average this results in costs for the BRP referred to as imbalance costs. This business case
scenario focuses on the balancing actions by a BRP in the near-real time (i.e. at the actual
moment of delivery). Traditionally, these real-time balancing actions are performed by power
plants within the BRPs portfolio. The key idea of this function is the utilization of real-time
flexibility of end-user customers to balance the BRP portfolio.
2.1.4 Offering (secondary) Reserve Capacity to the TSO
Taking the previous function one step further, the BRP uses these VPPs to, additionally, bid
actively into the reserve capacity markets.
2.1.5 Distribution System Congestion Management
This function is aimed at the deferral of grid reinforcements and enhancement of network
utilization to improve the quality of supply in areas with restricted capacity in lines and
transformers. The Distribution System Operator (DSO) avoids infrastructural investments and
optimizes the use of existing assets by active management using services delivered by smart
houses. By coordinated use of these services, end-customer loads can be shifted away from
periods at which congestion occurs and simultaneousness of local supply and demand can
be improved.
2.1.6 Distribution Grid Cell Islanding in Case of Higher- System Instability
The main principle of this is to allow the operation of a grid cell in island mode in case of higher
system instability in a market environment. The scenario has two main steps, the first occurring
before a possible instability and involves keeping a load shedding schedule up-to-date. The
second step is the steady islanded operation. The transition to the island mode is automatic and
neither end users nor the aggregator interferes with it. The system manages the energy within the
island grid and it is considered that all nodes within the islanded grid will participate in the
system.
2.1.7 Black-Start Support from Smart Houses
The most important concept of this function is to support the black start operation of the main
grid. It is assumed that after the blackout the local grid is also out of operation. The main goal is
to start up quickly in island mode and then to reconnect with the upstream network in order to
provide energy to the system.

2.1.8 Integration of Forecasting Techniques

The volatility of the production level of distributed generators, like renewables and CHP, makes
forecasting a necessary tool for market participation. The market actor with the lowest
forecasting error will have the most efficient market participation. Moreover, the usage of
intelligent management tools for handling the information about the uncertainties of large-scale
wind generation will improve the system-wide operational costs, fuel and CO2 savings. The
Smart Grid architecture under development must interact with these forecastingtools and
additionally ensure accurate data collection for these tools