The document provides an overview of smart grids and discusses some of the key challenges in implementing smart grid technologies. It begins with definitions of traditional grids and smart grids. Some key differences noted are that smart grids incorporate two-way communication, distributed generation, sensors throughout the system, and self-monitoring and self-healing capabilities. The document then discusses challenges such as lack of awareness of smart grid standards, integrating various communication technologies, and ensuring security in an increasingly networked system. Overall the document provides background on smart grids and highlights both technological aspects and challenges in transitioning energy infrastructure.

1. 1
CHAPTER-1
1.1 INTRODUCTION “We don’t have much time”
The grid amounts to the networks that carry electricity from the plants where it is
generated to consumers. The grid includes wires, substations, transformers, switches and
much more.
A smart grid brings technologies, tools and techniques available now to bring knowledge to
power knowledge capable of making the grid work far more efficiently.
Our nation’s electric power infrastructure that has served us so well for so long also known as
“the grid” is rapidly running up against its limitations such as :-
1. The current electricity delivery system is getting old and worn out.
2. Population growth in some areas has caused the entire transmission system to be over used
and fragile.
3. The new appliances are more sensitive to variations in electric voltage than old appliances,
motors, and incandescent light bulbs.
4. Severe Problems of Blackouts and Brownouts are growing.
It is an electrical grid which includes a variety of operational and energy measures including
smart meters, smart appliances, renewable energy resources, and energy efficiency resources.
Smart grid generally refers to a class of technology people are using to bring utility
electricity delivery systems into the 21st century, using computer-based remote control and
automation. These systems are made possible by two-way communication technology and
computer processing that has been used for decades in other industries.
Fig.1.1 Traditional grid Vs Smart grid

2. 2
Fig1.2 Smart grid Model Block
The basic concept of Smart Grid is to add monitoring, analysis, control, and communication
capabilities to the national electrical delivery system to maximize the throughput of the
system while reducing the energy consumption. The Smart Grid will allow utilities to move
electricity around the system as efficiency and economically as possible. It will also allow the
homeowner and business to use electricity as economically as possible.
A smart grid Integrates Information and communication technology (ICT) to the power
system for :
1. Increased reliability
2. More security
3. Better efficiency
4. Reduced environmental Impacts
Fig1.3 Smart grid Block

3. 3
CHAPTER-2
2.1 DEFINITION OF SMART GRID
The first official definition of Smart Grid was provided by the Energy Independence and
Security Act of 2007 (EISA-2007), which was approved by the US Congress in January
2007, and signed to law by President George W. Bush in December 2007.
To support the modernization of the Nation's electricity transmission and distribution system
to maintain a reliable and secure electricity infrastructure that can meet future demand growth
and to achieve each of the following, which together characterize a Smart Grid :
Fig2.1 Operation Diagram
1. Increased use of digital information and controls technology to improve reliability,
security, and efficiency of the electric grid.
2. Dynamic optimization of grid operations and resources, with full cyber-security.
3. Deployment and integration of distributed resources and generation, including renewable
resources.
4. Deployment of `smart' technologies for metering, communications concerning grid
operations and status, and distribution automation.
5. Deployment and integration of advanced electricity storage and peak-shaving technologies,
including plug-in electric and hybrid electric vehicles, and thermal storage air conditioning.
6. Provision to consumers of timely information and control options.
7. Development of standards for communication and interoperability of appliance

4. 4
CHAPTER-3
3.1 TRADITIONAL GRID VS SMART GRID
TRADITIONAL GRID SMART GRID
 ELECTROMECHANICAL  DIGITAL
 ONE-WAY COMMUNICATION  TWO-WAY COMMUNICATION
 CENTRALIZED GENERATION  DISTRIBUTED GENERATION
 FEW SENSORS  SENSORS THROUGHOUT
 MANUAL MONITORING  SELF MONITORING
 MANUAL RESTORATION  SELF HEALING
 FAILURES AND BLACKOUTS  ADAPTIVE AND ISLANDING
 LIMITED CONTROL  PERSASIVE CONTROL

5. 5
CHAPTER-4
4.1 THE GRID AS IT STANDS : WHAT’S AT RISK
1. National Economy
A rolling blackouts over silicon valley totalled 75 million dollars in losses.
Sun microsystem estimates that a blackout costs the company 1 million dollar every minute.
Two severe power blackouts affected most of northern and eastern India on 30 and 31 July
2012. The 30 July 2012 blackout affected over 300 million people and was briefly the largest
power outage in history, counting number of people affected, beating the January 2001
blackout in Northern India. (230 million affected) The blackout on 31 July is the largest
power outage in history. The outage affected over 620 million people, about 9% of the world
population, or half of India's population, spread across 22 states in Northern, Eastern,
and Northeast India. An estimated 32 gigawatts of generating capacity was taken offline.
Fig4.1 Blackout in India

6. 6
2. Security
When the blackout of 2003 occurred – the largest in US history – those citizens not startled
by being stuck in darkened, suffocating elevator stunned their thoughts toward terrorism. And
not without cause. The grid’s centralized structure leaves us open to attack. In fact, the
interdependencies of various grid components can bring about a domino effect – a cascading
series of failures that could bring our nation’s banking, communications, traffic, and security
systems among others to a complete standstill.
3. Environment changes
From food safety to personal health, a compromised environment threatens us all. The United
States accounts for only 4% of the world’s population and produces 25% of its greenhouse
gases. Half of our country’s electricity is still produced by burning coal, a rich domestic
resource but a major contributor to global warming. If we are to reduce our carbon footprint
and stake a claim to global environmental leadership, clean, renewable sources of energy like
solar, wind and geothermal must be integrated into the nation’s grid. However, without
appropriate enabling technologies linking them to the grid, their potential will not be fully
realized.
4. Global Competitiveness
Germany is leading the world in the development and implementation of photo-voltaic solar
power. Japan has similarly moved to the forefront of distribution automation through its use
of advanced battery storage technology. The European Union has an even more aggressive
“Smart Grids” agenda, a major component of which has buildings functioning as power
plants. Generally, however, these countries don’t have a “legacy system” on the order of the
grid to consider or grapple with.
Fig4.2 Global Warming Fig4.3 Renewable Sources

7. 7
CHAPTER-5
5.1 FEATURES OF SMART GRID :-
1. Efficiency
If the grid were just 5% more efficient, the energy savings would equate to permanently
eliminating the fuel and greenhouse gas emissions from 53 million cars.
a. Demand-side management: - For example turning off air conditioners during short-term
spikes in electricity price, reducing the voltage when possible on distribution lines
b. Load adjustment/Load balancing
A smart grid may warn all individual television sets, or another larger customer, to reduce
the load temporarily (to allow time to start up a larger generator) or continuously (in the case
of limited resources).
c. Peak curtailment/levelling and time of use pricing
To reduce demand during the high cost peak usage periods, communications and metering
technologies inform smart devices in the home and business when energy demand is high and
track how much electricity is used and when it is used. It also gives utility companies the
ability to reduce consumption by communicating to devices directly in order to prevent
system overloads.
2. Sustainability
The improved flexibility of the smart grid permits greater penetration of highly variable
renewable energy sources such as solar power and wind power, even without the addition
of energy storage.
Rapid fluctuations in distributed generation, such as due to cloudy or gusty weather, present
significant challenges to power engineers who need to ensure stable power levels through
varying the output of the more controllable generators such as gas turbines and hydroelectric
generators.
Fig5.1 Two way communication

8. 8
3. Market-enabling
The smart grid allows for systematic communication between suppliers (their energy price)
and consumers (their willingness-to-pay), and permits both the suppliers and the consumers
to be more flexible and sophisticated in the overall effect is a signal that awards energy
efficiency, and energy consumption that is sensitive to the time-varying limitations of the
supply.ir operational strategies.
4. Demand response support
It support allows generators and loads to interact in an automated fashion in real time,
coordinating demand to flatten spikes. Eliminating the fraction of demand that occurs in these
spikes eliminates the cost of adding reserve generators, cuts wear and tear and extends the life
of equipment, and allows users to cut their energy bills by telling low priority devices to use
energy only when it is cheapest.
5. Platform for advanced services
As with other industries, use of robust two-way communications, advanced sensors, and
distributed computing technology will improve the efficiency, reliability and safety of power
delivery and use. It also opens up the potential for entirely new services or improvements on
existing ones, such as fire monitoring and alarms that can shut off power, make phone calls to
emergency services, etc.
6. Reliability
There have been five massive blackouts over the past 40 years, three of which have occurred
in the past nine years. More blackouts and brownouts are occurring due to the slow response
times of mechanical switches, a lack of automated analytics, and “poor visibility” – a “lack of
situational awareness” on the part of grid operators. This issue of blackouts has far broader
implications than simply waiting for the lights to come on. Imagine plant production stopped,
perishable food spoiling, traffic lights dark, and credit card transactions rendered inoperable.
Such are the effects of even a short regional blackout.

9. 9
CHAPTER-6
6.1 REDUCTION OF LOSSES IN A GRID
TECHNICAL LOSSES IN T&D SYSTEM
Transmission system comprises of transmission towers, conductors, insulators and switchgear
protection system transmits power from generating station to any particular distribution substation.
Distribution system comprises of feeder towers, poles and insulators etc. which distribute power from
distribution substation to any particular area. Parameters influencing T&D system:
1) Transformer 2) Transmission line 3) Distribution line
TRANSFORMER LOSSES
a) IRON LOSSES
The loss of power consumed to sustain the magnetic field in transformer steel core. It is also
known as iron losses. Magnetic losses = hysteresis loss + eddy current loss
b) COPPER LOSSES
The total power loss taking place in the winding of transformer is called as copper (Cu) loss
or electrical losses. Cu losses =I1^2R1+ I2^2R2 Now, that we have learned the number of
losses in T&D sector so also lets have a view to reduce or conserve this losses. The major
percentage of losses occurring in T&D sector is only transformer losses. It contributes to 40%
of losses in T&D system.

10. 10
CHAPTER-7
7.1 ENERGY CONSERVATION TECHNIOUES
1. ENERGY CONSERVATION IN TRANSMISSION SYSTEM
Transformer is a static device. It does not have any moving parts. So, a transformer is free
from mechanical and frictional losses. Thus, it faces only electrical losses and magnetic
losses. Hence the efficiency of conventional transformer is high around 95-98%. Thus,
energy conservation opportunities for transformer are available only in design and material
used. Also optimizing loading of transformer
a.ENERGY CONSERVAT ION TECHNIQUES IN TRANSFORMER
a.1 OPTIMIZATION OF LOADING OF TRANSFORMER
The environmental protection agency (EPA) brought study report that nearly 61 billion K
WH of electricity is wasted in each year only as transformer losses. Study of typical grid
system showed that, power transformer contributes nearly 40% to 50% of total transmission
and distribution losses. Maintaining maximum efficiency to occur at 38% loading (as
recommended by REC), the overall efficiency of transformer can be increased and its losses
can be reduced. The load loss may be even reduced by using thicker conductors. can increase
efficiency of system.
a.2 IMPROVISION IN DESIGN AND MATERIAL OF TRANSFORMER
This is nothing but the reducing No-Load losses or Core Losses. They can be reduced by
following methods:-
1) BY USING ENERGY EFFICIENT TRANSFORMER
By using superior quality or improved grades of CRGO (Cold Rolled Grain Oriented)
laminations, the no-load losses can be reduced to 32%.
2) BY USING AMORPHOUS TRANSFORMER
Transformer with superior quality of core material i.e. amorphous alloy is called Amorphous
Transformers. Amorphous alloy is made up of Iron boron-silicon alloy. The magnetic core of
this transformer is made with amorphous metal, which is easily magnetized / demagnetized.
Typically, core loss can be 70±80% less than its Molten metal mixture when cooled to solid
state at a very high speed rate, retain a random atomic structure that is not crystalline. This is
called Amorphous.

11. 11
Fig7.1 Energy Efficient Transformer Fig7.2 Amorphous Transformer
2. ENERGY CONSERVATION IN TRANSMISSION LINE
Transmission losses can be reduced as follows:-
b.1 BY REDUCING RESISTANCE
Losses are directly proportional to I2r in conductor. So, if we reduce R from this surely the
losses will be reduced. For this we can use stranded or bundled conductors or ACSR
conductors. And even this method is been adopted and also successful.
b.2 BY CONTROLLING VOLTAGE LEVELS
This can be done by following methods
1. By using voltage controllers
2. By using voltage stabilizer.
3. By using power factor controller
Fig8.3 Voltage Stabilizer Fig8.4 Power Factor Controller

12. 12
3. ENERGY CONSERVATION IN DISTRIBUTION SYSTEM
This is done by considering following points
1) BALANCING OF PHASE LOADAs
As a result of unequal loads on individual phase sequence, components causes over heating
of transformers, cables, conductors motors. Thus, increasing losses and resulting in the motor
malfunctioning under unbalanced voltage conditions. Thus, keeping the system negative
phase sequence voltage within limits, amount of savings in capital (saving the duration of
equipment) as well as energy losses. Thus, to avoid this losses, the loads are distributed
evenly µas is practical between the phases.
2) POWER FACTOR IMPROVEMENT
Low power factor will lead to increased current and hence increase losses and will affect the
voltage. The power factor at peak is almost unity. However, during off peak hours, mainly
(11 am to 3 pm) the power factor decreases to around 0.8, this may be due to following
reasons,
1. Wide use of fans.
2. Wide industrial loads.
3. Wide use of agricultural and domestic pumping motors.
4. Less use of high power factor loads. Now, to improve power factor at off peak hours the
consumers must be aware of the effects of low power factor and must connect compensation
equipments DSTACOM, capacitor bank.

13. 13
CHAPTER-8
8.1 TECHNOLOGY
The bulk of smart grid technologies are already used in other applications such as
manufacturing and telecommunications and are being adapted for use in grid operations.
1. Integrated communications
Areas for improvement include: Integrated communications will allow for real-time control,
information and data exchange to optimize system reliability, asset utilization, and security.
a. Substation automation,
b. Demand response,
c. Distribution automation,
d. Supervisory control and data acquisition (SCADA),
e. Energy management systems,
f. Wireless mesh networks
g. Power-line carrier communications, and fibre.
2. Smart meters
They are the devices for measuring the customers energy bills they are connected to GPS.
3. Phasor measurement units
Many in the power systems engineering community believe that the Northeast blackout of
2003 could have been contained to a much smaller area if a wide area phasor measurement
network had been in place.
4. Sensing and measurement
Core duties are evaluating congestion and grid stability, monitoring equipment health, energy
theft prevention, and control strategies support. Technologies include: advanced
Microprocessor

14. 14
.
5. Smart power generation using advanced components
smart power generation is a concept of matching electricity generation with demand using
multiple identical generators which can start, stop and operate efficiently at chosen load,
independently of the others, making them suitable for base load and peaking power
generation.Matching supply and demand, called load balancing, is essential for a stable and
reliable supply of electricity. Short-term deviations in the balance lead to frequency
variations and a prolonged mismatch results in blackouts. Operators of power transmission
systems are charged with the balancing task, matching the power output of all
the generators to the load of their electrical grid. The load balancing task has become much
more challenging as increasingly intermittent and variable generators such as wind
turbines and solar cells are added to the grid, forcing other producers to adapt their output
much more frequently than has been required in the past
Fig9.1 Scada System

15. 15
CHAPTER-9
9.1 CHALLENGES
1. Lack of Awareness
Mature standards and best practices are available and can be readily applied to facilitate
Smart Grid deployment. The main problem with adoption seems to be a lack of awareness of
those standards by people involved in designing Smart Grid systems at a high level and a lack
of clear best practices and regulatory guidelines for applying them
2. Security
There is also concern on the security of the infrastructure, primarily that involving
communications technology. Concerns chiefly center around the communications technology
at the heart of the smart grid. Designed to allow real-time contact between utilities and meters
in customers' homes and businesses, there is a risk that these capabilities could be exploited
for criminal or even terrorist actions. One of the key capabilities of this connectivity is the
ability to remotely switch off power supplies, enabling utilities to quickly and easily cease or
modify supplies to customers who default on payment. This is undoubtedly a massive boon
for energy providers, but also raises some significant security issues. Cyber criminals have
infiltrated the U.S. electric grid before on numerous occasions.[
Aside from computer
infiltration, there are also concerns that computer malware like Stuxnet, which targeted
SCADA systems which are widely used in industry, could be used to attack a smart grid
network.
Electricity theft is a concern in the U.S. where the smart meters being deployed use RF
technology to communicate with the electricity transmission network. People with knowledge
of electronics can devise interference devices to cause the smart meter to report lower than
actual usage. Similarly, the same technology can be employed to make it appear that the
energy the consumer is using is being used by another customer, increasing their bill.

16. 16
3. Opposition and concerns
 consumer concerns over privacy, e.g. use of usage data by law enforcement
 social concerns over "fair" availability of electricity
 concern that complex rate systems (e.g. variable rates) remove clarity and accountability,
allowing the supplier to take advantage of the customer
 concern over remotely controllable "kill switch" incorporated into most smart meters .
 social concerns over Enron style abuses of information leverage
 concerns over giving the government mechanisms to control the use of all power using
activities
 concerns over RF emissions from smart meters.
Another challenge facing a smart grid is the uncertainty of the path that its development will
take over time with changing technology, changing energy mixes, changing energy policy,
and developing climate change policy.

17. 17
CHAPTER-10
10.1 DEPLOYMENTS AND ATTEMPTED DEPLOYMENTS :-
Enel
The earliest, and one of the largest, example of a smart grid is the Italian system installed by
Enel S.p.A. of Italy. Completed in 2005, the Telegestore project was highly unusual in the
utility world because the company designed and manufactured their own meters, acted as
their own system integrator, and developed their own system software. The Telegestore
project is widely regarded as the first commercial scale use of smart grid technology to the
home, and delivers annual savings of 500 million euro at a project cost of 2.1 billion euro.
US Dept. of Energy - ARRA Smart Grid Project
One of the largest deployment programs in the world to-date is the U.S. Dept. of Energy's
Smart Grid Program funded by the American Recovery and Reinvestment Act of 2009
. This program required matching funding from individual utilities. A total of over $9 billion
in Public/Private funds were invested as part of this program. Technologies included
Advanced Metering Infrastructure, including over 65 million Advanced "Smart" Meters,
Customer Interface Systems, Distribution & Substation Automation, Volt/VAR Optimization
Systems, over 1,000 Synchrophasors, Dynamic Line Rating, Cyber Security Projects,
Advanced Distribution Management Systems, Energy Storage Systems, and Renewable
Energy Integration Projects. This program consisted of Investment Grants (matching),
Demonstration Projects, Consumer Acceptance Studies, and Workforce Education Programs.
Reports from all individual utility programs as well as overall impact reports will be
completed by the second quarter of 2015.
INDIA
In India the National smart grid mission under Ministry of Power Govt. Of India funds a
estimated cost of Rs.890 crore for development of smart grid in smart cities.

18. 18
CHAPTER-11
11.1 Advantages Of Smart Grid
1. Reduces the cost of blackouts.
2. Helps measure and reduces energy conservation and costs.
3. Help businesses to reduce their carbon footprints.
4. Opens up new opportunities for tech companies meaning more jobs created.
Disadvantages Of Smart Grid
1. Biggest concern: it has security and privacy.
2. Two-way communication between power consumer and provider and sensors so it is
costly.
3. Some type of meter can easily be hacked.
4. HACKER- Gain control of thousand even millions, of meters.
5. Increases or decreases the demand of power.
6. Not simply a single component .various technology components are used are software,
system integrators, the power generators.

19. 19
CHAPTER-12
12.1 CONCLUSION
With the increasing world population, thereby increasing demand, and depleting resources
the need to be smart and efficient in our energy usage has become an imperative.
Implementation of Smart Grid concept would go a long way in solving many of the present
energy issues and problems. The whole network needs to be upgraded to meet the
requirements i.e. at transmission as well as distribution level. Researches are going on to find
the optimal solution and new technology to make all the desired characteristics possible.
Smart Meters, Smart Homes, Smart City and so on would constitute the Smart Grid. As the
new technologies would be invented and existing ones boosted up to meet the desired
specifications the Smart Grid would become a reality and change the whole energy pattern
throughout the world.

20. 20
REFERENCES
[1] U.S Department of Energy by Litos Coorporation
[2] United States Federal Energy Regulatory Commission
[3] Federal Energy Regulatory Commission Assessment of Demand Response &
Advanced Metering
[4] Smart Grids European Technology Platform by EDSPO
[5] J. Torriti, Demand Side Management for the European Supergrid Energy Policy
[6] Application of smart power grid in developing countries. 7th International Power
Engineering and Optimization Conference (PEOCO). IEEE
[7] Journal of Emerging Trends in Computing and Information Sciences by Gurlin Singh Lamba

21. 21