Intelligence of smart grid 2024

Chapter 1

d1.0 INTRODUCTION
Cost-shared government and industry investments under the American Recovery
and Reinvestment Act (ARRA) concluded in 2015, creating valuable lesson learned.
Rapid deployment of several smart grid technologies has occurred, with an upward trend
of investment expected given new technologies and state policies. Falling prices and
supportive policies have spurred rapid adoption in some regions of renewable and
distributed energy resources (DERs), creating some challenges in grid operations. State
regulators and policymakers have approached DOE and the national laboratories for
technical assistance regarding smart grid technology business cases, regulatory
approaches, and planning strategies. State-, national- and international-level discussions
are taking place on the transformation of the electric grid, especially at the distribution
system level, with respect to future structural and functional requirements, prudent
technology investment strategies, utility business models, and coordinated planning and
operations across the transmission, distribution, and customer boundaries.

1.1 What Makes the Grid Smart?

In short, the digital technology that allows for enhanced sensing and control of
grid elements, more widespread information sharing and communication, more powerful
computing, and finer control is what makes the grid smart. In much the same way that the
Internet and smart devices have impacted many aspects of our lives and changed the way
we access and apply information, digital technology enhances operational control and
decision-making. it also enables the intelligent networking of grid systems with other
infrastructures, such as buildings and transportation systems. Smart grid systems consist
of digitally based sensing, information management, communications, computing, and
control technologies and field devices that function to coordinate multiple electric grid
processes.

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Chapter 2

2.0 SMART GRID DEPLOYMENTS INCLUDE THREE KEY

ELEMENTS

Smart field devices and sensors within the physical grid infrastructure that can
monitor or measure processes, communicate data back to operations centers, and often
respond to digital commands or function automatically to adjust a process Utilities are
installing millions of digital devices, such as smart meters, phase or measurement units
and intelligent electronic devices, throughout the transmission and distribution grid for
sensing and control purposes. Communications networks that share data among devices
and systems. Communications networks with the right speed and size are foundation a
investments that can serve multiple existing and future smart grid applications.
Information management and computing systems that can process, analyze, and help
operators access and apply the data coming from digital technologies throughout the grid.
Using smart grid technologies to their full potential often requires utilities to substantially
upgrade and integrate multiple information management systems. Advancements in
modeling and analysis are moving toward the application of probabilistic and predictive
approaches for grid management. A smart grid uses digital technology to improve the
reliability, flexibility, security, and efficiency of the electricity system—key ingredients
in the ongoing modernization of the electricity delivery infrastructure. EISA Title XIII
makes it U.S. policy to support grid modernization to achieve the following smart grid
characteristics:

Increased use of digital information and controls technology to improve

reliability, security, and efficiency of the electric grid. Dynamic optimization of grid
operations and resources, with full cyber security. Deployment and integration of

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distributed resources and generation, including renewable resources. Development and

incorporation of demand response, demand-side resources, and energy-efficiency
resources Deployment of “smart” technologies (real-time, automated, interactive
technologies that optimize the physical operation of appliances and consumer devices)
for metering, communications concerning grid operations and status, and distribution
automation. Integration of “smart” appliances and consumer devices. Deployment and
integration of advanced electricity storage and peak-shaving technologies, including
plug-in electric and hybrid electric vehicles, and thermal-storage air conditioning.
Provision to consumers of timely information and control options. Development of
standards for communication and interoperability of appliances and equipment connected
to the electric grid, including the infrastructure serving the grid. Identification and
lowering of unreasonable or unnecessary barriers to adoption of smart grid technologies,
practices, and services. Smart grid technology is the essential ingredient that enables a
diverse energy mix, increased participation by customers, and resilient and reliable grid
operations.

Evolution of Grid Intelligence The many definitions of a “smart grid” typically

define the characteristics or capabilities that it enables. For example, the Electric Power
Research Institute (EPRI) defines a smart grid as follows: “A smart grid is one that
incorporates information and communications technology into every aspect of electricity
generation, delivery, and consumption in order to minimize environmental impact,
enhance markets, improve reliability and service, and reduce costs and improve
efficiency.” A smart grid applies digital technology to the sensing, communication,
computing, control, and information management functions of the electric grid. The
digital technology is embodied within microprocessors that interface with physical
devices, communications systems that transmit and share data, solid-state devices that
can manipulate voltage and current, and computers that process and display information.
The use of digital technology has greatly improved the operational performance of the
grid, and is providing new capabilities and insights through the enhanced management,

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analysis, and sharing of information. With the application of digital technology in the
workings of the grid’s electromechanical systems, it is now meaningful to consider a
digital cyber layer and a physical layer as an integrated “cyber- physical” set. The
extension of the cyber layer to electricity customers and third-party service providers
permits a shared approach in grid operations, as well as operational convergence with
other infrastructures, such as buildings, transportation, and various other utility-based
infrastructures (e.g., water and natural gas systems). The integration of digital technology
with the grid’s electromechanical systems has evolved over several decades. The
beginning of this integration occurred in the 1960s when engineers began to deploy
supervisory control and data acquisition (SCADA) systems to automate the monitoring
and control processes associated with complex industrial or manufacturing operations.
The introduction of SCADA in transmission and distribution substations began in earnest
during the late 1970s. These SCADA systems employed microprocessors that directly
interfaced with devices in the physical world, telemetry-providing communications, and
computers situated at master stations in transmission and distribution control centers.
SCADA systems, including other distribution management systems, have advanced from
using vendor-based proprietary protocols to applying open communications standards
and protocols (e.g., the Internet Protocol Suitee) enabling such systems to interface with
devices from multiple vendors, as well as take advantage of advancements in improved
techniques for system analysis and operations. SCADA technology is now integrated
with other systems (e.g., outage management systems), collectively referred to as
operations technology (OT), which are responsible for monitoring and controlling field
devices connected to the electric grid. Such operations will become increasingly complex
as we increase the number of devices connected to the grid. Various OT functions
include: Outage management functions, including fault location, isolation and system
restoration (FLISR) Voltage and reactive power management. System monitoring,
control and protection, including state estimation. Dispatch and control of grid devices,
such as circuit breakers, field switches, and power electronics. Dispatch and control of
resources including central power generation units and DERs. In parallel with OT

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deployment,

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utilities have applied enterprise information technology (IT) to manage business

processes, such as billing and revenue collection, asset tracking and depreciation, and
workforce management. The IT systems, based on company enterprise and personal
computing technology, apply software systems that permit many users to access
utility-wide data through a variety of applications. The convergence of IT and OT
systems is providing new analytical capabilities and significant operational benefits,
leading to an information-driven electric grid. The range of technology developments
associated with IT/OT convergence include the following: Technology costs to collect
and transmit operational data continue to decrease. The software underlying many OT
applications uses standard IT computing platforms, making it possible to merge these
resources, including options to employ cloud computing with higher-scale computing
capacity. The application of “middle ware” I is making it possible to link and integrate
disparate sets of data, enabling advanced data analysis. Interoperability standards have
been developed and employed, although further maturation of such standards is crucial to
facilitating further IT/OT convergence. Several organizations, including the International
Electrochemical Commission (IEC) and the Institute for Electrical and Electronics
Engineers (IEEE), are developing smart grid interoperability standards. The escalation in
mobile computing, data access, and even digital photography is providing field crews
with more access to operational data, some in real time, which is substantially changing
distribution activities such as inspections, field resource optimization, and inventory
tracking. This convergence is not occurring at the same pace across the industry, but
rather is being driven by exogenous factors that are accelerating grid modernization.
However, utilities are seeing many benefits that result from IT/OT convergence. For
example, the sharing of historical and real-time data across utility processes that were
traditionally siloed provides a new set of opportunities. An emerging technological
capability is the advanced distribution management system (ADMS) which is a software
platform that supports the full suite of distribution management functions. This includes
historical operational data for planning, operational engineering data for system
protection, and real-time operations support, including power flow control, automated

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outage restoration, voltage management, asset management, and DER dispatch and
control. The information shared across these functions combined with a knowledge of
grid assets provided through geographic systems, current conditions through network
models, and customer behavior through advanced metering data, provides significant
operational intelligence and efficiency to utilities. The collection and analysis of system
data will improve utilities’ ability to economically manage assets, improve load
forecasting and planning, provide intelligence to minimize faults and outages, and enable
more proactive customer services. The market for utility data analytics in the United
States is expected to reach $1.4 billion with a 60% market share by 2022 ($3.8 billion
worldwide), as compared to $300 million in 2012 As shown in Figure 1, the field of data
analytics is expected to progress from applying data for basic reporting to providing
utilities a predictive capability and, beyond that, enabling self-learning and optimization
through the application of artificial intelligence and other machine-learning techniques.
This will involve collecting and synthesizing massive amounts of data from millions of
smart sensors and devices to make timely decisions on how to best allocate resources.

Figure 1. Evolving capabilities and Complexity Of Data Analytics

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Grid modernization involves more than IT/OT integration because the essential
structure of the grid is changing due to customer adoption of DERs and public policies
driving utilization of DERs as grid resources. As a result, regulators and utilities are
re-thinking the design and operation of the grid to create more open and transactive
electric networks.

This would lead to the development of open networks to enable the interaction of
intelligent devices on the grid and the ability for consumers, utilities and other entities to
participate and transact. Such networks can provide significant value through
optimization and enhanced services as has been observed in the telecommunications
industry .j Furthermore, additional value can be derived from the convergence of two or
more networks or systems by sharing resources and enabling new value streams.8 The
convergence of the electric grid with building and transportation infrastructures is an
example where shared resources, e.g., communication systems and computing, can
enable more integrated and efficient operations, while fostering the growth of
value-added services, such as applications to coordinate electric vehicle logistics.

In this discussion, it is important to note that grid modernization is advancing at

different rates across the country based largely on state policies and where deployment of
advanced technologies makes economic sense. Also, the adoption and application of
DERs by utility customers and various merchants will impact grid operationsand require
the use of more advanced sensing, communication, computing and control capabilities.
As a result, regulators and utilities are faced with determining prudent strategies for the
deployment of advanced grid capabilities to address this challenge.
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The steady uptick in grid investment coincided with rapidly declining wind and
solar generation costs, growing supplies of low-cost domestic natural gas, a series of
increasingly extreme and costly weather events (including Superstorm Sandy in 2012),
and a widening national spotlight on reliability and resilience as cyber and physical
threats grow more severe. Rising capital investments in transmission and distribution
infrastructure (see Figure 2) now take up the largest share of total capital spending by
major IOUs.11 The transmission system, often called the bulk electric system, includes
the high-voltage lines that carry large amounts of electricity from generating plants over
long geographic distances to distribution substations. The last few years have seen record
spending in transmission infrastructure—nearly triple the investment rates of a decade
earlier—to expand, upgrade, or replace towers, fixtures, station equipment, overhead
conductors, and other components. IOUs invested $20 billion in transmission infrastructure in
2016.

Transmission expansion and upgrades have largely been made to access power from new
generation installations (especially renewable resources) and carry it to load centers; replace and
harden aging infrastructure; relieve congestion; accommodate regional population and load shifts;
improve reliability and security to meet new standards; and access cheaper power available
through restructured markets.12 Increasing labor and construction material costs also contributed
to the rise in investment. Distribution infrastructure investment often cycles as equipment wears
out and is replaced. Figure 2 also shows that distribution investments by IOUs have grown

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incrementally since 2009, reaching a high of $27 billion in 2016. The largest investments were in
poles and fixtures, overhead conductors, and station equipment to not only replace but also
upgrade and harden the system against outages from the growing frequency of extreme and
high-cost weather events, from hurricanes and storms to fires and floods.13 Several out-year
projections show high capital investment is expected to continue over the next several years as
utilities replace aging components and build in flexibility, intelligence, and resilience.14 The high
capital costs and long life spans of transmission and distribution infrastructure make it vitally
important that investments made today can support an evolving grid for decades to come. A
growing proportion of this investment will go toward smart infrastructure, the intelligent field
equipment and the information, communication, and control systems that will allow utilities to
operate the grid with greater visibility, flexibility, precision, and speed.

Growing Investment in Smart Grid Devices and Systems

There is no one comprehensive source of data on the cost and rates of smart grid
technology deployment or projection, and investment categories are often difficult to compare
across sources. This section uses several sources to demonstrate a steady rise in smart grid
infrastructure investment and the factors that have driven rapid deployment of smart grid
technologies that were still considered nascent less than a decade [Link] to Bloomberg
New Energy Finance, U.S. utilities in 2016 invested an estimated $3.4 billion in smart grid
technologies at the distribution level, about 13% of the $27 billion spent on distribution
infrastructure by large IOUs.15 Since 2008, U.S. utilities have invested $31.6 billion n
distribution-level smart grid technologies (see Figure 3), a higher investment rate than predicted
in 2014. Actual spending from 2014 -2016 was roughly 25% higher than forecasted by
Bloomberg in 2014.16
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Figure 3. Distribution-Level Smart Grid Spending, Billions

The spike in investment starting in 2010 was due largely to $9 billion of

public-private investments in smart grid deployment from 2010-2015 under the ARRA.l
The Bloomberg estimate in Figure 3 excludes smart grid deployment at the transmission
level, along with the costs of new and integrated operational control and management
systems, a key upgrade needed to maximize the use of new smart grid devices and data
for improved grid control. A more complete analysis by Newton-Evans estimates that
U.S. utilities in 2016 invested a total of $4.8 billion in smart grid technologies and the
associated information, communication, and control systems. This represents about 10%
of the $47 billion in transmission and distribution infrastructure spending by IOUs.
Newton-Evans analysis shows that annual smart grid investment rose 41% between 2014
and 2016, from $3.4 billion to $4.8 billion (Figure 4). This analysis makes an important
distinction between the estimated $2.1 billion spent on “pure” smart grid devices or
networks in 2016, and investment in smart-grid-related IT, including $1.8 billion on
smart-grid-related IT for operational systems (such as substation automation and control
systems) and $0.9 billion on smart-grid-related IT for administrative systems (such as
smart meter data management and billing systems). Figure 4 shows how smart grid
investments will increasingly converge traditional information technology systems with
operational control technology. Newton-Evans forecasts significant growth in utility IT
spending over the next decade, and the large majority of that growth will be in “pure”
smart grid devices and supporting information management and control technology. The
forecast estimates that annual smart grid investment will double between 2014 and 2018,
and will double again by 2022. By 2024, annual smart grid spending is expected to be

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$13.8 billion—making smart grid a more significant portion of total spending on grid
assets.

Figure 4. Annual Smart Grid Investment (Of Total Grid Information And
Control Technology Investment)

Several key factors have driven smart technology investment over the last several
years—and may accelerate adoption in the coming decade:Cost-shared deployment under
the Recovery Act reduced the risk of early investment, put millions of new digital
technologies and operational systems on the grid, and supported vendor marketplace
maturity, resulting in falling device costs and greater [Link] commitments
accelerated utility smart grid plans by as much as a decade, helped train the workforce,
advanced conversations on codes and standards, and demonstrated expected benefits and
cost savings that were not yet proven—paving the way for wider industry adoption.17
The economy’s growing reliance on power requires a more resilient power grid,
particularly as weather-related disruptions and cyber threats are on the rise. Utilities are
increasingly using automated controls and self-healing functions to prevent major
blackouts, limit outages, restore faster, and enable microgrids that can keep powering
critical facilities during disruptions. Declining prices of distributed technologies like
rooftop solar and electric vehicles— particularly in states with high incentives and

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renewable energy targets—are rapidly requiring faster and more robust control
capabilities than current systems allow.

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Chapter 3

3.0 SMART GRID TECHNOLOGIES:

DEPLOYMENT TRENDS AND
BENEFITS
This section provides key examples of innovative smart grid deployments and resulting
benefits in the following technology areas: Advanced transmission system technologies
for wide-area visibility and control Advanced distribution system technologies for
self-healing automation, equipment health monitoring, and voltage optimization
Advanced metering infrastructure Smart customer devices and energy management
systems that enable demand response

3.1 Advanced Transmission System Technologies

Smart grid advancements in the transmission system are focused on giving operators
better system visibility, faster response, more effective decision-making, automated
protection, and greater control.

3.2 Synchrophasor technology

One of the most impactful innovations has been the widespread deployment of
synchrophasor technology which involves the application of PMUs to deliver precise,
time-synchronized measurements of voltage and frequencym to transmission grid
operators. Current SCADA systems deliver observations about grid conditions every 4 to
6 seconds,18 whereas PMUs can provide observations 30 times or more per second. Each
PMU measurement is location- and time-stamped permitting grid operators to better
observe power grid dynamics, e.g., changes in

frequency and power flow across the system, with microsecond accuracy, which cannot
be provided by traditional SCADA. Figure 5 shows how PMU data can more quickly and
accurately detect an oscillation, which was then corrected. Such oscillations are
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indicative of system anomalies that can potentially lead to catastrophic system failure if
left unaddressed.

Figure 5. Transmission Grid Oscillations As Shown By Scada Data Vs. Pmu Data

PMU adoption has accelerated since the ARRA jump-started PMU

commercialization and development of updated technical standards and conformance
testing. The electric industry is currently in the second round of technical standard
updates through IEEE; and several utilities are now installing PMUs as part of regular
infrastructure build-outs (rather than as special projects). As a result, synchrophasor
technology is gradually shifting from a research and off-

line analysis tool to one that actively supports real-time operations, enabling such
capabilities as real-time oscillation monitoring and management, linear state estimation,
and automated power plant model validation. In 2009, there were fewer than 200 PMUs
in the U.S. transmission system, used primarily for research. By 2017, there were more
than 2,500 networked synchrophasors, providing visibility across nearly 100% of the
U.S. transmission system at varying degrees of resolution.19

3.3 EMS Advancements

Transmission operators have continued to advance smart grid capabilities that

utilize the benefits of IT/OT integration. A good example of this is the Advanced Control
Center (AC2) commissioned in 2011 by PJM.20 PJM is the regional transmission

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operator which coordinates electricity across Pennsylvania, New Jersey, Maryland, and
10 additional states and serves over 65 million people. The AC2 employs a shared
architecture platform permitting various applications (associated with the EMS, market
management system, and settlements system) to plug into an enterprise service bus and
receive and transmit information through it by applying standardized communication
protocols and procedures. As a result, it provides a standardized integration platform for
applications that differ in technology, design or vendor and can scale to incorporate
additional applications and data streams. For example, it can integrate the massive data
streams from the increasing number of phasor measurement units being installed across
the PJM territory. It also provides an information platform for PJM’s members through
industry-standard messaging architecture and two-way communications.

3.4 Distribution Automation

Distribution automation (DA) refers to the application of digital processes to

improve the effectiveness and efficiency of distribution system operations, oftentimes to
automate operations that were formerly performed manually. This includes automation of
fault detection and restoration, equipment health monitoring, and the optimized
management of voltage and reactive power.

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Chapter 4

4.0 AUTOMATED LOCATION AND ISOLATION OF

FAULTS
Fault location, isolation, and service restoration (FLISR) technology can help
utilities better isolate faults and restore power where outages have occurred. FLISR
devices include fault indicators, line monitors, automated feeder switches, and reclosers.
When a fault occurs or a power line is damaged, these technologies work in tandem to
detect and clear temporary faults, isolate sustained faults, and automatically re-route
power around faults (where possible), often within seconds. As was observed by several
utilities receiving ARRA funds, fully automated switching and validation typically
resulted in greater reliability improvements than operator-initiated, remote switching with
manual validation. For example, several utilities that deployed FLISR reported a 55%
reduction in the number of customers interrupted by sustained outages and a 53%
reduction in the number of minutes that they were out of power during those events. In
addition, eighteen utilities that deployed FLISR reported avoiding 197,000 truck rolls,
equivalent to 3.4 million vehicle miles traveled, from 2011 through 2015. Precise fault
location enables operators to dispatch repair crews accurately and notify customers of
outage status, which reduces outage length and repair costs, reduces the burden on
customers to report outages, and increases customer satisfaction. Figure shows how

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automated feeder switching deployed by EPB in Chattanooga restored power within

seconds to half of the customers who experienced an outage during a June 2012 derecho
(windstorm) which had moved rapidly across the eastern part of the country. The
automated switching technology detected the faulted sections of the distribution system
and immediately reconfigured the distribution network in such a way as to limit the
number of customers experiencing the outage. In Figure 6, the green line shows the
outage curve for those experiencing the event, while the blue curve provides an estimate
of the outage curve if the technology had not been deployed. EPB estimates that it
avoided $23 million in customer damages in this one storm and was able to completely
restore the system 17 hours earlier than anticipated.n

FIGURE 6. FASTER RESTORATION TIME AT ELECTRIC POWER BOARD

OF CHATTANOOGA

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Chapter 5

5.0 EQUIPMENT HEALTH MONITORING AND FAILURE

PREVENTION
Improved sensing capabilities enable operators to measure equipment health
parameters and receive real-time alerts for abnormal equipment conditions. Utilities can
better anticipate and proactively prevent equipment failures, prioritize repairs and
maintenance, and plan preventative maintenance and replacement needs. These
technologies and systems also equip grid operators with new capabilities to better
dispatch repair crews based on diagnostics data. For example, Florida Power & Light
(FPL) can observe changes in transformer performance based on shifts in voltage output
detected by smart meters. FPL can now replace transformers before they fail and, as a
result, has significantly reduced outage times experienced by customers through a
proactive maintenance program.22 Voltage Optimization and Distribution System
Efficiency Several utilities are applying automated methods to adjust voltage and reactive

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power levels along their distribution circuits to reduce energy losses and conserve energy
consumption, especially during peak demand periods. Voltage optimization and
conservation voltage reduction (CVR) processes integrate the operations of several
devices (load tap changers, voltage regulators and capacitors) and can be performed
through a variety of automated approaches. The energy saved in these operations is
translated directly into savings for customers and a reduction in energy requirements that
can lead to deferring capital expenses, including for generation facilities. The potential
energy savings from voltage optimization varies from circuit to circuit. However, case
studies show that even a modest voltage reduction of 1-3% can deliver significant energy
and cost savings. Several utilities participating in ARRA-funded projects realized energy
savings of 2%-4% on affected feeders using conservation voltage reduction methods. For
example, Duke Energy used integrated volt/VAR controls with an advanced distribution
management system to achieve a consistent 1%-1.58% voltage reduction on more than
700 circuits across Ohio.23 These reductions saved fuel and lowered customer bills, with
no detrimental effects on service quality. In 2011, Duke estimated the value of its smart
grid investments over a 20-year period at $190.41 million.24 Duke’s continuous voltage
reduction strategy—which targeted a 2% voltage reduction—made up the most
significant portion of those expected benefits, valued at $155.57 million over 20 years.
Applied system-wide, such techniques could save hundreds of thousands in yearly energy
costs, particularly when targeting larger and heavily loaded feeders, although the costs of
implementing the technology need to be measured against potential benefits. Also,
integrating smart inverters into legacy voltage optimization systems will present a
challenge, as utilities and regulators will need to develop strategies to deploy the
advanced functionality of smart inverters described in IEEE 1547-2018. Nearly 45,000
circuits now have voltage optimization, or about 22% of all U.S. distribution circuits (as
of 2016).25 DA Investment and Deployment Trends Smart grid investments in the
coming years will shift more heavily to distribution system intelligence. Many utilities
pursuing distribution automation started with small-scale deployments, allowing them to
resolve technical and systems integration issues, and assess the potential benefits and

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savings for utilities and customers alike. As utilities begin to scale up deployment plans,
distribution-level smart grid investments are predicted to increase significantly in the
coming years, according to Newton-Evans (Figure 7). More than half of spending will go
to smart field devices and communications networks, while an increasing percentage will
be spent on control equipment and control center and substation-based software and
platforms.

Figure 7. Estimated Historic And Projected U.S. Investments In Distribution

Automation

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Chapter 6

6.0 SMART METERS AND ADVANCED METERING

INFRASTRUCTURE (AMI)
AMI is an integrated system of smart meters, communications networks, and data
management systems that provide a two-way digital link between utilities and customers.
Nearly half of U.S. customers now have smart meters. For most utilities, smart meters
collect data at regular intervals (typically 15 minutes) and deliver it to a local data
aggregator in the communications network where it is finally backhauled to an operations
center. Because of the vast amount of data, utilities typically backhaul the data three
times per day, and use it for customer billing, load forecasting, and system forensics. This

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information can also be shared with customers to help them better monitor and manage
their electricity consumption. AMI provides significant operational benefits, which
translate to utility cost savings and convenience to customers.

6.1 Advanced Metering Infrastructure AMI can:

Significantly reduce operating costs by remotely reading meters,

connecting/disconnecting service, and identifying outages—all previously manual
functions. Generate more accurate bills faster and enable utilities to provide customers
digital access to their usage information. About 26% of U.S. customers now have daily
digital access to their usage data.26 Detect meter tampering and electricity theft to
enhance revenue collection. Send “last-gasp” alerts when service is disrupted, enabling
utilities to isolate outages faster and dispatch repair crews more precisely. This capability
is most valuable when smart meter data is integrated with outage management systems
and restoration operations. Enable utilities to send time-based price signals to customers
and incentivize demand reduction during peak periods. (See Dynamic Pricing and
Demand Response on page 33). Support voltage management activities when smart
meters are used as sensors. Florida Power & Light has deployed a mobile application
called the Restoration Spatial View (RSV) tool for use on tablets and smartphones to
assist the utility’s field crews in power restoration efforts. The application combines AMI
information and data from a variety of sources to provide GPS-assisted street views and
driving directions, weather data and storm tracking, maps showing real-time information
on fault locations and smart meter outage activity , customer usage and voltage history,
and restoration confirmation. The RSV tool, serving as an information platform, has
greatly aided field crews in restoration operations; the restoration confirmation function
ensures there are no embedded outages prior to leaving a site. Resources such as wind
and solar—with production levels dependent on weather patterns— can introduce
considerable variability in generation profiles, while customer-based generation can make
demand curves more unpredictable. The result of this shift in resources is a complex mix
of characteristics and constraints that affect everything from long-term planning to

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day-to- day operations and minute-by-minute control and coordination. Rapid Rise of
Utility-Scale and Distributed Solar In under 10 years, solar photovoltaic (PV) systems
have seen a near meteoric capacity growth of more than 2,900% (from 1,102 MW in
2010 to 32,954 MW in 2016). This swift rise was driven by maturing technologies,
falling installation costs, favorable policies and incentives, and a growing demand—from
individual customers to major corporations—for cleaner energy technologies and on-site
generation. Solar PV installations range from large, utility-scale (greater than 1 MW)
projects to smaller, distributed projects (less than 1 MW), which often consist of
residential, commercial, and industrial rooftop projects.

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Chapter 7
7.0 SOLAR TECHNOLOGY MATURITY AND AFFORDABILITY
The average solar installation cost—across utility and customer installations—fell
68% since 2010. Decreasing installation costs are a result of increased module efficiency,
low-cost imported panels, and reduced profit margins in an increasingly competitive

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space. Module efficiency increased from 13.8% in 2010 to 17.5% in 2016; module power
capacity increased 27.5% from 225 W in 2010 to 287 W in 2016.

Cost decreases and capacity additions were most pronounced for larger-scale
installations (see Figure 23). The 80% cost reduction for utility-scale projects was
especially pronounced, as costs fell from $4.78/W in 2010 to $0.97/W in 2017.48 With
the sharpest price decrease, utility- scale photovoltaic solar has also grown most
significantly—from 393 MW in 2010 to over 20,192 MW in 2016—and more than
quadrupled between 2013-2016 alone. About 50% of grid-scale capacity is owned and
operated by independent power producers (see Figure 22).

While annual solar installations may drop slightly in 2017 and 2018 due to policy
uncertainty, SEIA expects that cost improvements, policy incentives, and corporate
demand will drive annual capacity additions near 16 gigawatts (GW) by 2022. If solar
adoption continues apace, solar technologies will account for 5% of U.S. generation by
2022, up from 2% today.49 State and federal renewable energy tax credits offer
residential, commercial, and industrial customers attractive capital incentives to develop
renewable energy projects. The federal Business Energy Investment Tax Credit (ITC)
provides a 30% tax credit for solar, fuel cell, and some wind installations. The credit
drops to 26% in 2020, 22% in 2021, and sunsets at 10% in 2022. The Renewable
Electricity Production Tax Credit (PTC) offers a 10-year, per-kWh credit for wind and
other renewable systems; the PTC expires December 31, 2019, for wind technologies,
and expired in 2017 for all other [Link] energy metering (NEM) rules define
how customers are credited for the electricity they generate and may require utilities to
buy any excess electricity customers add back to the grid. In several states, these credits
helped to tip the economic scale in favor of onsite solar,

particularly as customer installation costs fell quickly over the last five years. However,
several states have revised, eliminated, or are reviewing their NEM rules as DER
adoption rises to avoid cross-subsidization. Most states have traditionally compensated

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customers at the full retail rate—the same rate they pay the utility per kWh of electricity
—resulting in very low or even zeroed-out bills for some customers. As a result, some
argue that customers with PV may not fairly pay for fixed

infrastructure costs, leaving non-PV customers to take on a larger share of those

costs. Others argue that distributed PV increases societal and system benefits at an equal
or higher rate than the NEM credits. 53 Many states are reviewing NEM rules, and in
several states, PUCs have removed or revised NEM rules so that they credit customers
below the retail rate and/or create a minimum monthly service charge for PV customers.
Communities and cities are increasingly seeking energy options to address economic
development and environmental and resiliency objectives. In certain states, individuals
can form a non-profit group, known as a Community Choice Aggregator, to secure
renewable electricity contracts on behalf of a community. Legislated in seven statesr,
community choice aggregation (CCA) is a powerful tool to drive growth in renewable
energy; aggregators can procure clean power from the open market and/or partner with
community solar subscriber organizations. In 2013, CCAs procured over 9 million MWh
of renewable generation for providing solar access to a large pool of customers not
suitable for onsite PV use. A community solar project is a shared solar PV array.
Participants either pay for a share of the project or subscribe to a portion of its electricity
output, which flows directly into the distribution grid. In exchange, the participant’s share
of the electricity generated is compensated, typically through a credit to their electricity
bill, much like NEM. Utilities, businesses, local governments, and community groups can
host community solar projects anywhere from public buildings to Improved battery
technologies also continue to drive EV manufacturing costs lower, encouraging more
auto manufacturers to enter the EV market and develop competitive models. Since 2010,
prices for lithium-ion battery packs have decreased 73% while their energy density has
doubled—allowing EVs to travel further on a single charge.62 Large-scale manufacturing
of EV batteries has improved economies of scale and driven costs down, with some
manufacturers striving to bring prices well below DOE’s target price of $125 per
kWh.63
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 Intelligence of smart grid 2024

By 2016, there were nearly 700,000 EVs on U.S. roads, compared to 30,000 in 2011, a
growth rate of 87%.64 Nearly 10 million EVs are expected on U.S. roads by 2025.65
Increasing competitiveness has improved customer choice and increased sales. In 2011,
there were only four reported models of PEVs available, with annual sales below 18,000.
By 2016, the number of models more than quadrupled, with annual sales at nearly
150,000 units across more than 20 models. 66 Federal and state incentives, gasoline
prices, and an increasing number of EV charging stations have also driven customer
adoption. All-electric and plug-in hybrid cars purchased after 2010 are eligible for a
federal income tax credit of up to $7,500. State-level incentives may include tax credits
and rebates; sales and use tax exemptions; reduced license, registration, or title fees; and
non-financial incentives, like use of HOV lanes or special parking permits. EVs are
forecasted to account for more than 35% of the U.S. car fleet by 2050, with battery
electric vehicles (BEVs) accounting for more than 80% of the EV market. The rise in EV
deployment may significantly increase electricity demand during peak charging times,
particularly where concentrations are high (see Figure 28). High adoption of EVs can
both create and alleviate operational challenges. EV owners may be able to help balance
supply and demand simply by charging during periods of heavy solar generation, which
can alleviate the risk of over generation in regions with high solar adoption, like Hawaii
and California. 67 The California Public Utilities Commission found that by offering
time-of-use rates, utilities were successful in encouraging customers to shift EV charging
times to off-peak hours, when electricity costs were lower.68 In the future, EVs may also
be able to reduce peak demand by temporarily discharging power back to the grid—much
like energy storage—when the car is plugged in but not in use.

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 Intelligence of smart grid 2024

Chapter 8
ADNAVATAGES AND
DISADVANTAGES
Advantages Of Smart Grid-
● Reduces the cost of blackouts.
● Helps measure and reduces energy conservation and costs.
● Help businesses to reduce their carbon footprints.
● Opens up new opportunities for tech companies meaning more jobs created.
Disadvantages Of Smart Grid
● Biggest concern: it has security and privacy.
● Two-way communication between power consumer and provider and sensors so
it is costly.

● Some type of meter can hacked.

● HACKER-
● Gain control of thousand even millions, of meters.

● Increases or decreases the demand of power.

● Not simply a single component .various technology components are used are
software, system integrators,the power generators.

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 Intelligence of smart grid 2024

CONCLUSIONS

This report conveys the status of smart grid deployments across the nation, the
capabilities they provide, and the challenges remaining as we move forward with the
modernization of the electric grid. Over the past decade, utilities have deployed smart
grid technologies to improve the reliability and efficiency of their operations and to better
engage utility customers in the management of energy. However, more recently, we are
witnessing the rapid adoption of DERs, such as photovoltaic systems and energy storage
technologies, and increasing ownership of distributed assets by utility customers and
third-party merchants. The effective integration of the grid with a mixed set of DERS,
combined with the potential for shared ownership of grid services among utilities,
customers and merchants, presents a greater level of complexity than the grid was
originally designed to accommodate. As a result, we can anticipate a dramatic
transformation in the structural and functional aspects of the grid that will require the
advancement and use of digitally-based, smart grid technologies. This is now occurring
where we can see high levels of DER adoption. Although the adoption of smart grid
technology is not occurring at the same rate across the country, as is appropriate based on
local needs for advanced capabilities, one can envision a trend to a more integrated and
distributed electric grid where large-scale DER integration will occur. In addition, digital
technologies will eventually lead to the formation of information networks that will
promote the convergence of the electric grid with other infrastructures, such as buildings,
transportation and telecommunications. Addressing this challenge will require the
application of holistic planning approaches that consider long-range possibilities and
integrate the considerations of utilities, customers, grid service providers, and technology
developers. It will also require the development and application of technologies that can
readily adapt to dynamic conditions, coordinate millions of devices

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REFERENCES
● ABB. The Current State of Smart Grid Analytics. Prepared by Utility Analytics,
June [Link]. Unlocking the Value of Analytics. 2013. Adler, Laura.
"How Smart City Barcelona Brought theInternet of Things to Life." Data-Smart
City Solutions,
● Advanced Energy Economy. 2016 Corporate Advanced Energy Commitments.
December [Link] Energy Now. 2017 Market Report: Global and U.S.
Market Revenue 2011-16 and Key Trends in Advanced Energy Growth.
Prepared by Navigant Research, March 2017.
● Alternative Fuels Data Center. “Maps and Data - U.S. Plug-in Electric
Vehicle Sales by Model.” Last updated May 2017. Amazon. “Echo & Alexa
Devices.” 2018.
● American Council for an Energy-Efficient Economy. State Energy
Efficiency Resource Standards (EERS). January 2017.
● Analysis Group. The Value of “DER” to “D”: The Role of Distributed Energy
Resources in Supporting Local Electric Distribution System Reliability.
Prepared by Susan F. Tierney. March 2016.

Department Of Electrical Engineering R.S.C .[Link] 31