Electrical power distribution systems, often referred to as electrical grids, have been the world’s primary source of electricity since the late 19th century. When these electrical grids were created, their operating principles were rather simple – generate electricity and send that electricity to homes, buildings, and anywhere there was electrical demand.
But with increases in demand for electricity come the need for higher-efficiency electrical grids. The modern “smart grid” distribution systems now utilized around the world rely on state-of-the-art technologies to optimize efficiency. This article explores the definition of a smart grid and the key tech that makes them smart.
What Is Smart Grid Technology?
A smart grid is an electrical power distribution infrastructure that provides two-way communication between the utility provider and customers. Digital technologies that contribute to smart grid technology include power/current sensors, controls, data centers, and smart meters.
Some smart grids are smarter than others. In many countries there are large, focused efforts to transform antiquated electrical distribution grids into smart grids, but this adoption is complex and takes several years, if not decades.
Smart Grid Technology & Smart Grid Components Examples
Smart Meters – These are the first step toward building a smart grid. Smart meters provide point-of-use energy consumption data to both the consumer and the utility producer. The consumption and cost information they provide alerts consumer to reduce wasted energy use and helps providers to optimize distribution loads across the grid.
Smart meters generally consist of three main sub-systems: the power system that measures the power consumption, a microcontroller for managing the technology within the smart meter, and the communication system that transmits and receives consumption/instructional data. Additionally, some smart meters can contain back-up power (in the event of a power outage on the main distribution line) and GSM modules to pinpoint the meter’s location for security purposes.
We’ve seen the global investment in smart meters double in the last decade. In 2014, the global annual investment in smart meters was $11M USD. Given the gains in system efficiency from smart meter implementations, by 2019 the global investment in smart meters reached $21M USD, per Statista.
Smart Load Control Switches and Distribution Boards – While smart meters can provide real-time data to the utility providers, they don’t automatically control the distribution of energy. To optimize distribution during peak usage or to specific regions, electric utilities use power management devices such as smart load control switches and distribution boards. This tech saves significant amounts of energy by reducing unneeded distribution or automatically managing loads that have exceeded their allowed time-of-use limits. Simply put, the smart load control switches can intelligently turn power distribution on-and-off at the point of use to optimize overall system distribution and consumption efficiency.
For example, the city of Wadsworth, Ohio, utilizes an electric distribution system built in 1916. In collaboration with Itron, a manufacturer of smart load control switches (SLCS), Wadsworth was able to reduce their system usage by 5,300 megawatt hours by installing SLCSs on residential homes to cycle A/C compressor usage during peak demand.
Power System Automation – Power system automation is enabled by smart grid technologies that utilize state-of-the-art IT infrastructures to control every step of the power distribution chain. For example, an automated power system utilizes intelligent data acquisition systems (like that of smart meters), power control systems (such as smart load control switches), analytical tools, computational systems, and power system algorithms. The combination of these critical components allows for a grid (or multiple grids) to autonomously adjust and optimize itself with limited interaction by humans.
The Enablement of a Smart Grid
When digital, two-way communication and automation technology are implemented within a smart grid, several infrastructural changes are then able to maximize grid efficiency. The following infrastructure changes are enabled by smart grid implementation:
Image attribution: Wikipedia
1. Decentralized Energy Production
Because smart grids can continuously monitor and control energy distribution, energy no longer needs to be generated by a single, large power plant. Rather, energy can be generated by many decentralized power production sites such as wind turbines, solar farms, residential photovoltaic solar panels, small hydroelectric dams, and much more.
2. Decentralized Markets
Smart grid infrastructure also enables the connections of multiple grids as a means of intelligently sharing energy across traditional centralized systems. For example, municipalities have historically had independent production facilities that are not connected to adjacent municipalities. With the implementation of smart grid infrastructure, municipalities can contribute to shared production schedules to eliminate production dependencies in the event of an outage.
3. Small-Scale Transmission
One of the largest wastes of energy in electrical grids is in the distribution of energy over large distances. Given that production and market decentralization is enabled by the smart grid, the net distribution distances within a smart grid are drastically reduced, thus reducing the wasted distribution energy.
For example, imagine a small neighborhood solar farm that can generate 100% of the neighborhood’s daytime electric demand and is 1km from the neighborhood. If the local solar farm did not exist, that neighborhood may need to receive its electricity from a large power plant 100km away. The energy loss observed during transmission of the electricity from the distant power plant may be one hundred times greater than the observed transmission loss from the local solar farm.
4. Two-Way Distribution
In the example of the local solar farm, a scenario can exist in which the solar farm can generate more energy than what is consumed by the neighborhood. A surplus of energy is created. This excess energy can then be distributed into the smart grid and help reduce the demand of the distant power plant.
In this scenario, energy flows from the solar farm into the main, non-neighborhood grid during the day, but when the solar farm is not active, energy flows from the main grid into the neighborhood. This bi-directional energy flow can be monitored and optimized by power distribution algorithms to ensure minimal energy is wasted at any point during use.
5. Consumer Participation
In a smart grid infrastructure with bi-directional distribution and decentralized grid boundaries, consumers are able to act as micro-generators. For example, individual homes can feature independent PV solar systems that can generate energy at the point of use. If there is excess energy generated by the residential PV system, this energy can be passed into the larger grid, thereby further reducing demand of the larger, centralized power plants.
The Importance of Smart Grids
Smart grids are imperative to the reduction of power consumption at a macro-economic level. Many local utility providers and governments offer generous incentives for participation in smart grid adoption because it’s both financially and environmentally beneficial. By adopting smart grids, production of energy can be democratized, thereby eliminating risks of outages, reducing operating costs of power systems, and eliminating unnecessarily wasted energy.
