Energy distribution has mainly been a domain of power electronics,
but not of industrial communication systems in the past. However, in
the light of climate change and strong efforts to reduce CO2 emissions,
the concept of "smart" energy distribution and "smart
power grids" has emerged. Such smart grids are defined through the
combination of power and information as well as communication technology,
whereas the latter allow smart control algorithms to be applied. This
section describes the motivations, drivers, developments, and implications
of smart grids.
1. Evolution of Smart Energy Distribution
The electrical power systems as they exist today are the result of more
than 100 years of technical development.
Since Edison's first installations, the guiding design principle was
that of large central power plants and a large number of small distributed
consumers, which are connected with the generation sites by means of
a power grid. For availability reasons, isolated systems got connected
and large national and transnational grids evolved.
The electric power grid is a classical distributed system, even if it
is not consisting of computers but of electrical generators and loads.
Seen from an abstract viewpoint, it consists of a large number of interacting
entities (nodes or energy resources) that are connected with communication
channels, the power lines. Communication is realized by influencing and
observing ubiquitous physical parameters like power flows or the grid
frequency. The growing power grid was, together with the telephony system
that had its growing period nearly at the same time, one of
the first and largest distributed systems that have been designed by
electrical engineers. This duality of key infrastructure systems, one
for electrical energy and the other for communication, which began in
the 1880s and 1890s, still exists today. However, while the telephone
system has merged into the Internet and thus made through a number of
revolutionary technological changes, the power system has remained with
comparably little changes. The primary reason for this is that changes
in the power grid are associated with extraordinary high investment costs
(compared to those of smaller components in the telecom sector), resulting
in long investment cycles of several decades.
The electric power grid cannot store electrical energy in large amounts
for long times. The generated power has to match the consumed power at
all times. In some way, the current demand has to be communicated to
the generation sites, so that they can adjust to it (theoretically, also
the generation amount could be communicated to the loads so that they
would adjust to it). Further, a suitable way of load-sharing between
the generators is needed, which can be seen as a protocol that determines
in detail which generator reacts when and how much. All this has to work
over hundreds or even thousands of kilometers. This technical challenge
was brilliantly met without the use of any explicit data communication
by the introduction of power-frequency control. Today, however,
information and communication technology (ICT) is seen as one of the
key concepts to maintain efficient and secure provision of electrical
energy. The reason for this is a paradigm shift: In addition to the centralized
generation, smaller generation units in larger numbers are more and more
integrated into the grid, the so-called dispersed or distributed generation.
Electricity generation from renewable sources is often only realizable
as distributed generation.
This is because compared to the traditional generation from fossil resources,
the energy density of renewable energy sources is low. The number of
generation units is comparably high, but they have a rather low individual
power output compared to large centralized power plants. Units are set
up at locations where the availability of the energy source is good (e.g.,
strong winds, flowing water). This results in generation units being
scattered over the power grid infrastructure in a spatially distributed
manner. It can be argued that a more distributed organization of the
power infrastructure is also going along with an increase in reliability.
Bottlenecks can be avoided and regional electricity supply can be maintained
using local sources even if the backbone grid fails. This, however, can
only be achieved with more complex system operation basing on an extensive
use of automation infrastructures.
The integration of a high density of distributed generation into the
existing power grids leads to a number of different issues. The two most
prominent ones are the fact that generators connect to the grid at positions
that have initially been designed for loads only and the volatile nature
of generation from renewable sources. The strong growth of electricity
generation in the medium voltage grid, where most of the installed distributed
generation injects its power, leads to grid voltage problems. In times
of low demand, the grid voltages at the feeding points reach the limits
set by grid operators and regulation authorities, so that no more units
could be installed without significant grid investments.
The second issue is that due to the volatile nature of generation from
renewable energy resources, it becomes more and more difficult to predict
the amount of electricity generation. As a result, in future there will
be a stronger need for balance energy. Especially the rising amount of
distributed generation will significantly increase the uncertainty in
balance prediction and therefore increase the need for more balance energy
provision.
Therefore, the rising energy demand and the necessity to increase energy
efficiency and generation from renewable resources imply that power quality
and security of supply can only be maintained (before even improved)
if the basic management mechanisms of the power grid are adapted to the
changing situation. This results in the need for large investments and
a number of innovative technical solutions. The "smart power grid" serves
as the umbrella for a harmonized and coordinated application of such
new technical solutions, which heavily rely on ICT ( FIG. 1).
Smart power grids can be defined as in: "Smart grids are power
grids, with a coordinated management based on bi-directional communication
between grid components, generators, energy storages and consumers to
enable an energy-efficient and cost-effective system operation that is
ready for future challenges of the energy system." There are two
key drivers for the development of smart grids. The first is the integration
of renewable energy resources into the power grids, as mentioned before.
The second is the advance in ICTs.
Innovations in communication systems, especially in the areas of signal
processing and in production technologies, have resulted in the deployment
of communication systems that enable comparably high data throughput
for low costs. Wireless transmission of data is state of the art at this
stage for remote control in medium voltage grids, a fact that shows that
this technology has reached an adequate level of maturity and is accepted
by the grid operators, who traditionally are very concerned about the
reliability of information technology in the grid. The technological
advance on the side of information technology on one hand and the beginning
shortage in energy supply (including the need for CO2 reduction) on the
other hand also result in an economic paradigm shift: As costs for energy
rise and costs for communication fall, the relation between both begin
to change and the unit cost for energy is ultimately becoming higher
than the unit cost for communication in many application areas ( FIG.
2).
FIG. 1 Definition picture of a smart grid. (National Technology Platform-Smart
Grids Austria.
FIG. 2 Estimated development of costs for communication and energy.
2. Key Concepts of Smart Grids
Smart grids are made out by the application of a number of key concepts
that are discussed in the text following. All of them need an underlying
industrial communication infrastructure, which can be affordable when
deployed for multiple applications.
Supervisory control and data acquisition (SCADA) and substation automation
are the traditional domain of narrowband automation infrastructure in
power grids, especially in medium and high voltage grids. The SCADA infrastructure
is used to connect network components in the field with control centers,
so that they can be supervised and remote-controlled. The media used
for SCADA can be very diverse and span from glass fiber over wireless
solutions to distribution line carrier, a special form of power line
communication for medium voltage grids.
Substations are currently the endpoint of the utilities' automation
infrastructure. From this point on, there is usually no more online data
coming from the grid. This situation is going to be changed by AMI (automated
metering infrastructure) or similar initiatives. The problem, however,
with existing substation automation and communication is that many are
based on proprietary technology. This is now changed by IEC 61850 [IEC05].
Several existing efforts (EPRI UCA 2.0, IEC 60870) are converging to
one unified standard for telemetry and remote control. It is specifically
designed for local area networks like Ethernet and therefore more than
an encapsulation of control commands. Using a substation bus (10 Mb/s
to 1 Gb/s) and a process bus (100 Mb/s to 10 Gb/s), it connects meters,
protocol relays and converters, human machine interfaces, and substation
equipment. It uses a strictly object-oriented approach to model the application
and has types and formats for all necessary data. Peers are either in
a client-server or multicast relation and exchange information via messages.
The protocol stack offers slim and real-time-capable transports as well
as interoperable, IP-based services. The fast services have direct access
to the data link layer, while all others use a sophisticated protocol
stack that ensures easy management and commissioning.
FIG. 3 Voltage over a feeder in the presence of loads and generators.
In Example A, voltage limits are not exceeded. In Example B, no load
reduces the voltage, but generation is still active (e.g., in a night
with strong winds).
Without active generation management, the generators would be disconnected
from the line by voltage protection switches.
Active distribution grids allow the integration of a high density of
distributed generation in existing medium voltage infrastructure by an
active control of generation power on the basis of voltage or power flow
measurements at critical points in the grid. As shown in FIG. 3, the
main barrier for connecting new generators to the grid is that power
feed-in increases the grid voltage at the feed-in point.
The voltage has to be kept in an allowed band (e.g., ±10% of nominal
value) by the grid operator in any case. The worst case occurs when there
is no load but strong energy generation on the feeder, as shown in FIG.
3, Example B. In an active distribution grid, the generation of the distributed
generators is managed according to the voltage at critical points. If
the voltage rises too high, reactive power management is performed. If
this is not effective enough, even the active power can be curtailed.
Such an active management of generated power in a medium voltage feeder
is basically a form of multi-objective control. The challenge here is
that sensors, controllers, and actuators are very far from each other.
Voltage and power information has to be communicated over dozens of miles
once every 6 s or so. The automation infrastructure used has to be highly
reliable. Often, the protocols are transported over a variety of different
media, depending on the available communication links.
Smart meters can be part of a smart grid, but they are not the same
as smart grids. Although the origins of smart metering technology lies
in remote meter reading, other aspects also play a role in smart meters
than consumed kilowatt-hours. These are consumption profiles, power quality
monitoring, and remote switching of loads.
It can be expected that power grids will in future be operated closer
to their limits as it is currently the case. One of the reasons for that
is that the pattern and kind of investments into the grid infrastructure
will change due to the liberalization of power markets. For maintaining
the high standards in power quality, today it is already considered to
be necessary to monitor power quality variables such as voltage, flicker,
and harmonics using online measurements in the grid. This is another
driving factor for an increasing flood of online measurement data from
the grid.
Smart metering systems can generate snapshots of the consumption state
of the whole grid so that grid operators can examine in detail how much
power was flowing to where in the moment of the snapshot. Therefore,
smart meters are interconnected by means of communication links, usually
narrowband power line communication to data concentrators at the transformer
stations. From here, backbone networks (e.g., glass fiber) bring the
data to control centers. Communication infrastructures are essential
features of smart metering systems, but in many grids they are still
nonexistent.
While in some countries smart meters are area-wide deployed, in other
countries the debate about their benefits is still underway. On the positive
side, these systems simplify the accounting and consumers can be promptly
informed about their energy consumption. More data are available from
the grid, and network development planning can be done on the basis of
real data instead of worst-case models. Failure detection becomes easier
and voltage bands can be used more efficiently. On the negative side,
the costs are very high and it is basically assumed that the consumer
will pay the price. Further, there is a severe lack of standards. Long-term
reliability and data security questions are not yet completely answered.
One of the largest projects about smart metering in the United States
is the AMI initiative; similar projects exist around the world.
AMI is seen as the next step after remote metering: bidirectional communication
between utilities, customers, and grid operators. The main concerns of
AMI are affordable and secure acquisition and management of billing-relevant
data. Although usually considered as non-critical transport, there are
high requirements in accuracy and reliability. The expectations toward
AMI are:
• Reduced management costs for billing
• Increased insight into consumption patterns
• Reduced energy consumption because of immediate feedback information
to the customer
• Identification and correction of leakages and losses
• Improved grid stability due to integration with demand response programs
The communication technology for AMI is typically separated into two
parts. The wide area link is classically based on Internet technology,
transported over UMTS, DSL, and other available Internet connections.
Inside the customers' facilities, the choice often lies on wireless
home networks, for instance based on ZigBee or Z-wave.
Automated demand response (DR), that is, remote switching of customers'
appliances, plays a key role in most smart grid conceptions. A number
of different terms are used in this context, such as demand side management,
DR, or load shifting. The general idea is to gain influence on the load
side of the power grid and make use of flexibilities in the timing of
energy consumption. Such measures are seen as a supporting tool to match
supply and demand under the condition of supply from fluctuating renewable
energy resources, whose generation patterns do not match the demand curves.
In countries with a high blackout frequency, DR can be a key concept
to better distribute the available generation and transmission capacities.
Load shifting, in particular, does not aim to reduce energy consumption
in long term, but to reduce peak loads by shifting consumption to off-peak
times. As a short-term method, it allows improving the balance of supply
and demand without the decrease of functionality for end users. Modern
load shifting happens hidden and unrealized by the energy subscriber.
The control of load shifts, distributed storages, and curtailment of
interruptible loads are the major tools for this strategy. Based on their
specific processing, properties, and energy storage functionality, there
is the possibility to reschedule energy consumption of certain loads.
Energy can either be stored in real energy storages, such as thermal
storages, or as conceptual energy storages that can be exploited by rescheduling
a process to a later point in time (load shift). Load shifting can be
performed in various processes, for example, washing, cleaning, heating,
chilling, and pumping. These electricity-consuming processes have, depending
on the application, certain degrees of freedom in their time schedule.
Many representatives of these classes of potentially shiftable loads
can be found within buildings, especially large functional buildings.
DR is taking influence on loads, for the benefit of the grid or the
customer's energy bill. While demand response can refer to either incentive-driven
(e.g., by time-of-use tariffs) or automated means to change the behavior
of electrical loads, automated demand response implies communication
from "the grid" to energy consuming appliances connected to
the grid. The granularity of this communication could be reduced by addressing
the whole building instead of every single part of equipment. Functional
buildings account for a significant share of energy consumption and at
the same time have usually large load shift potentials. Further, they
are often equipped with building automation and control systems, which
can interpret the demand response command from the grid and translate
them into dedicated actions for the electrical consumers within a building.
Therefore, the "building-to-grid" approach for demand response
(FIG. 4) is very promising.
Automated DR is mostly load shedding, setpoint adjustments, duty-cycling,
and load shifting, done in an automated fashion. So-called "aggregators"-service
providers, mediating between a utility and customers-typically install
such systems to manage their customers' facilities. The open auto-DR
specification is the first attempt to standardize these systems.* Its
core component is the demand response automation server (DRAS, see FIG.
5) and a set of standardized messages (events).
A utility or grid operator can issue a "demand response event" (e.g.,
a grid emergency) and depending on who subscribed to which demand response
program, the DRAS distributes the required information to the clients
(energy management control systems, aggregators, or directly the loads)
in a secure and reliable manner. This concept can and will be extended
to also serve developments like "Building2Grid" or "Plugin
Hybrid Vehicles."
FIG. 4 "Appliance-to-grid" versus "building-to-grid" approach.
The granularity of this communication could be reduced by addressing
the whole building instead of every single part of equipment.
FIG. 5 Open auto demand response architecture.
3. Smart Grid Vision
The future smart grid will be characterized by an intensified flow of
information compared to the state of the-art power grid, where the dominating
flow of energy is only accompanied by sporadic (monthly or yearly) meter
readings. The communication system will be used for many different applications
( FIG. 6), which altogether justify the large investments needed to build
the infrastructure. The challenges for this development are not only
of technical and economic, but also of organizational nature. It is hoped
that by means of a smart infrastructure, an efficient and cost-effective
power grid operation is achievable that is ready for future challenges
of the energy system.
The actual realization of smart grids, however, is currently hindered
by a kind of hen-egg-problem.
This is at least the case in central Europe. On one side, the common
communication infrastructure is the defining element of a smart grid
and serves for many smart applications. It is one of the key investments
to be done. However, this investment is delayed because it seems to have
no direct profit seen on its own. Also, the investor, who could be the
grid operator, will only invest in an infrastructure that serves his
or her own concerns (such as smart metering). Further services that he
or she could provide for other stakeholders in the liberalized electricity
market, such as plant operators, suppliers, or energy consumers, mostly
cannot be paid regard due to the lack of standards of how such services
should exactly look like.
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Meter readings Active distribution grid control data SCADA Demand side
management Online asset management Power quality data Maintenance data
and others ICT Infrastructure of smart grid ICT: Information and Communication
Technology
FIG. 6 Anticipated application data flowing over smart grid communication
infrastructures.
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On the other side, the potential smart applications cannot or not efficiently
be implemented without the basic communication infrastructure. Also,
here, investments are delayed due to missing communication infrastructure.
A way out of this deadlock situation could be that a modular step-by-step
strategy is developed that defines building blocks for basic and upgradable
ICT services for smart grids, which can be used by all potential applications.
Depending on the communication requirements of the applications, some
applications can be used with the basic version and some only with upgraded
versions of the ICT service set. For smart metering, for example, only
small bandwidth connections with best-effort service are needed, while
for active voltage control higher bandwidth and real-time service is
required. Then, incentives for strategic investments by grid operators
in the basic ICT services could be set. This approach would enable those
applications with moderate service requirements to be realized and further
lower the threshold for the implementation of applications with higher
ICT service demand. The approach requires standardization of smart services
and an upgradability of the ICT infrastructure to ensure that previous
investments are still of use when the infrastructure is extended. It
further requires actual communication components for smart grids that
enable a step-by-step extension of the ICT infrastructure.