A Smart Grid is an electricity Network based on Digital Technology that is used to supply electricity to consumers via Two-Way Digital Communication. This system allows for monitoring, analysis, control and communication within the supply chain to help improve efficiency, reduce the energy consumption and cost and maximize the transparency and reliability of the energy supply chain.
Smart grid is a large ‘System of Systems’, where each functional domain consists of three layers:
(i) the power and energy layer,
(ii) the communication layer, and
(iii) the IT/computer layer.
Layers (ii) and (iii) above are the enabling infrastructure that makes the existing power and energy infrastructure ‘smarter’.
- The system delivers electricity via 2-way digital communication. It allows consumers to interact with the grid.
- It reduces energy consumption and reduces cost to the consumers by smart means. Electric supply companies make efficient usage of energy and consecutively will be able to meet the varying load demands of the consumers.
- Real time monitoring.
- Automated outage management and faster restoration.
- Dynamic pricing mechanisms.
- Incentivize consumers to alter usage during different times of day based on pricing signals.
- Better energy management.
- In-house displays.
- Web portals and mobile apps.
- Track and manage energy usage.
- Opportunities to reduce and conserve electricity etc.
- Peak load management, improved QoS and reliability.
- Reduction in power purchase cost.
- Better asset management.
- Increased grid visibility and self-healing grids.
- Renewable integration and accessibility to electricity.
- Satisfied customers and financially sound utilities etc.
Benefits of Smart Grid Deployments
Smart Grid Architecture Components
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