Smart grid technologies and application in the sustainable energy transition: a review

Figures & data

Table 1. Institutions in SG Industry (UNECE 2016).

	Name	Acronym	Geographical Coverage	Specialty	Sector	Role
1	International Smart Grid Action Network	ISGAN	Global coverage with 25 active member countries	Exclusive SG mandate	Government	Technology and policy
2	Global Smart Grid Federation	GSGF	Global with 18 members	Exclusive SG mandate	Private Sector	Technology and policy
3	European Distribution System Operators’ Association for Smart Grids	EDSO for SGs	European with 30 Distribution System Operators (DSO) members	Exclusive SG mandate	Utility	Policy
4	Reliable and Sustainable Power Grids	GO-15	17 Global Power Grid Operators	Electricity system and technology organisations with SG mandates	Utility	Policy
5	Union of the Electricity Industry	EURELECTRIC	30 European electricity associations	Electricity system and technology organisations with SG mandates	Utility and Industry association	Policy
6	Twenty-first Century Power Partnership	21 CPP	8 member countries + private sector	Electricity system and technology organisations with SG mandates	Research institute and government	Technology and Policy
7	Global Sustainable Electricity Partnership	GSEP	12 of the world’s largest electricity companies	Electricity system and technology organisations with SG mandates	Utility	Policy and project deployment
8	The Institute of Electrical and Electronics Engineers	IEEE	395,000 members in 160 countries	Electricity system and technology organisations with SG mandates	Engineering	Research, Policy, and Standards

Figure 1. Data flow in SGs.

Figure 2. Elements and stakeholders of SGs.

Figure 3. Functional view of energy management system in an SG.

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Figure 5. The communication layers.

Figure 6. Illustration of an SG (Prasad 2014).

Figure 7. Challenges of SG development and use.

Table 2. Technologies in SGs.

	Area of technology	Hardware	Systems and software	Network deployment
1	Wide area monitoring and control	PMUs and other sensor equipment	SCADA, WAMS, WAAPCA, and WASA	Transmission
2	ICT integration and office computers	Communication equipment (power line carrier, WiMAX, LTE, RF mesh network, cellular), routers, relays, switches gateway, computers (servers)	Enterprise resource planning software, customer information system	Transmission and distribution
3	Renewable,distributed and conventional generation integration	Power conditioning equipment for bulk power and grid support, communication and control hardware for generation and enabling storage technology	EMS, DMS, SCADA, GIS	Transmission and distribution
4	Transmission enhancement	Superconductors, Flexible alternating current transmission system (FACTS), High-voltage direct current transmission system (HVDC)	Network stability analysis, automatic recovery systems	Transmission
5	Distribution grid management DERs	Automated re-closers, switches, and capacitors, remote-controlled DG and storage, transformer sensors, wire and cable sensors	GIS, DMS, outage management system (OMS), workforce management system (WMS	Distribution
6	Advanced metering infrastructure (Smart metering)	Smart meter, in-home displays, servers, relays	MDMS	Distribution and (transmission)
7	Electric transportation charging	Charging infrastructure, batteries, inverters	Energy billing, smart charging G2V and discharging V2G methodologies	Distribution
8	Customer-side systems and demand response	Smart appliances, routers, in-home display, building automation systems, thermal accumulators, smart thermostat	Energy dashboards, EMSs, energy applications for smart phones and tablets	Distribution and (transmission)

Figure 8. The main functions of the SG.

Table 3. Summary of architecture (UNECE 2016).

	Element s	Construction	Applications
1	SCADA	This is an EHV transmission network (110 kV and above) that is traditionally smart or intelligent equipped with automation and real-time communication systems for system operations.	SCADA operates by collecting information related to grid operation from various sensors located at various points and sending data to the master computer for real time analysis. SCADA with the EMS monitor and control of power flows in real time at dispatch centres or at LC centres of EHV
2	The Energy Management System	EMS is used by grid operators as a tool for monitoring, controlling and optimisation of power generation and transmission systems. It facilitates real time network and contingency analysis.	The EMS enables real-time functions which enable the plant operator to monitor, analyse and control power generation functions on a real time basis. It enables automatic generation control, sets economic dispatch, and directs the dispatcher to set economic base point for the generator units selected, monitoring of the reserve, and establishing spinning reserve, regulating reserve and operating reserve levels.
3	Wide Area Monitoring System (WAMS)	The system deploys PMUs used for faster and more accurate measurement of the grid equipment. Additionally, SCADA data does not have timestamps, while PMU data is accurate time stamped. Operationally SCADA works like an X-Ray, but PMU Data is like an MRI scan of the electricity grid	This requires a fast communication system to handle these huge amounts of data from the PMUs. For real-time wide area monitoring applications, the latency requirements are high in the range of 100 ms to 5 s. The main differences in functionalities between PMUs and SCADA is that in SCADA data is collected in 1-5 s, but PMU data is captured in milliseconds.
4	Distribution automation (DA)	The DA involves computerised control strategies used to upgrade implementation of energy dispersion. The lattice physically recognises and breaks down the energy system physically and remotely enacts gadgets or dispatch an expert to intervene.	The distribution automation (DA) enables specific gadgets to detect operational states of surrounding lattice then influence necessary changes to streamline operation making the network more proficient and solid. The DA facilitates change of controls to suit fluctuation, control inclining and bi-directional power streams.
5	Substation Automation and substation automation systems	Through the automation of substations, the equipment or components of substations are made digital (or numeric) with related communication systems to facilitate remote operation.	Substation automation cuts down interruptions and downtime caused by equipment failures, strikes from lightning, accidents and natural catastrophes, surges or power disturbances and substation outages. Substations automation enables the utility company to remotely monitor, control, coordinate and operate power distribution components at substations
6	AMI or Smart Metering system	comprises of equipment or devices like Smart Meters, DCUs also referred to as gateways, routers or access points, Meter MDMS, HAN, HES	The smart meter electronically records electricity consumption normally on hourly intervals or less and communicates with the utility on regular basis for monitoring and billing. They facilitate a two-way communication between computer systems/computers at the utility control centres and the meter the consumer point
7	Block Chain Technology infrastructure	The block chain technology is made up of distributed information and communication technology	It supports decentralised structure of local energy markets and facilitate direct interaction between SG users

Table 4. Differences between conventional grids and SGs.

	Basis	Conventional grids	Smart grids
1	Communication	One way communication	Two-way communication
2	Power generation	Centralised power generation	Distributed and central power generation
3	Network connection	Radial network	Interconnected network
4	Sensors	Uses basic sensors	Uses Multiple advanced sensors
5	Mode of operation	Manual or analogue operation	Digital operation
6	Control and monitoring	Limited manual monitoring and control	Wide range Automatic monitoring and control
7	Security and privacy	Limited security and privacy concerns	Serious security and privacy issues

Table 5. Stakeholders and role in the SG system.

	Stakeholder	Role
1	Customers	Electricity is consumed by consumers. It may be domestic, commercial, or industrial
2	Operations	Operations related to power systems are performed. It comprises regulatory authorities or management responsible for movement of electricity
3	Markets	Grid assets are used by stakeholders. Both operators and consumers are playing role as market.
4	Generations	Electricity is generated. Generation companies in bulk quantity of electricity are involved as player.
5	Transmissions	Electricity is transmitted. Companies or player responsible for transmission of generated electricity for distribution.
6	Distributions	Electricity is distributed to end consumers and monitored. They include distributor of electricity form and to customers.
7	Service providers	They provide support services to all the power system stakeholders like internet and communication services. providers

Figure 9. The SG stakeholders.

Figure 10. SG environment and impact on sustainability.

Table 6. Capabilities and benefits of SGs.

	Capability/function	Sustainability impact
1	Seamless connection of generators of different sizes, features, sources of energy	Prevents power loss and maximises use of variable loads and power sources
2	Enhances reliability, security, and stability of supply	Guarantees sustainable electricity supply
3	Enable automatic loading and re-routing of electricity whenever equipment fails	Avoids unnecessary power supply losses and reduces downtown hence high supply security and reliability.
4	Prevent transmission oscillations and overload which often cause blackouts	Reliability of power supply and more absorption of variable loads like electric cars and variable supply like wind and solar power.
5	They provide real-time information on consumption to stakeholders.	Facilitates social sustainability and technology acceptance which is a sustainability requirement.
6	Enable consumers to adjust in time and quantity of energy usage	This will reduce overload on generation facilities, improve efficiency and hence avoid wasteful generation and consumption.
7	Facilitate higher integration of renewable energy	Facilitates fossil fuel substitution in power generation.
8	Convert consumers to prosumers who produce and sell their own	Provides a revenue source for consumers, motivation to consume less and generate more and enable economic sustainability of power systems.
9	Optimise overall grid operations from generation to consumption.	This will reduce wastes and pollution, avoid unnecessary generation and consumption as well as avoid unnecessary investment and costs in the power system.

Table 7. Applications of SGs.

	Function	Application	Impact
1	NET metering	Electricity imports and export	Turns consumers of electricity to prosumers who are keen to be net exporters not importers
2	Time of Use (TOU) Metering	Enables variable pricing of power	Facilitates demand side management by demand shifting
3	Peak load shaving	Demand shifting which reduces maximum demand and cost.	SGs create flexibility and demand shifting leading to load management, peak shaving and energy saving by moving to off peak hours. The Peak load benefits all consumers and the utility operators by avoiding overloading of the system
4	Power quality improvement	Reliability and quality improvement. SGs are equipped with APFC devices and modern communication functions for regular reporting to the utility control center	The grid intelligence, resilience, flexibility, and adaptability are enhanced by use of SGs. SGs use APFC devices and active filters to improve the power factor and power quality.
5	Outage Management through self-healing and early detection	SG are equipped with Outage management system (OMS). The DTMS systems is equipped with oil sensors, palm sensors, CT and PT. which enable DTMS to detect and correct faults	The outage management system enhances the reliability of the power systems by application of the grid smartness for operational benefits like power restoration, reliable and cost-effective services with less manpower and hence costs
6	Loss detection which ensures timely action and low outage	Smart meters collect, compute, store, and transfer energy data to control center at constant intervals. Power losses can be determined by comparing the energy data at different nodes and DT terminals	This enables quick measures to restore power to consumers immediately power loss is identified.
7	Improves power system reliability	This is achieved in SG by the ability to detect faults and self-healing potential of the system. SG can monitor all information and data and can establish system reliability. SGs make use of technologies like Dynamic Stochastic Optimal Power Flow (DSOPF) which make it possible to estimate and optimise	Facilitates efficient monitoring of hybrid generation and management of the grid remotely which improves power reliability. power flow in the system. Therefore, SGs can improve system reliability through enhanced metering and communication
8	Demand Side Management through participation of consumers	DR is the ability by consumers to modify energy consuming models in response to variations made possible by the two-way communication ability of SGs.	Enable a more economical use of grid power and hence higher efficiency and reduced peak time stress by shifting load and self-generation. DR enables the distribution system to schedule resources based on requirement. The system also provides financial incentives by scheduling consumer needs.
9	Decentralised power generation.	Decentralised generation uses different local energy sources to meet the demand of local electricity demand by integrating various forms of locally available supplies including energy storage.	Leads to more use of renewable sources and hence emissions. DG also helps to address twin challenges of generation fluctuations and huge land requirements associated with wind and solar energy resources
10	MGs which are more resilient	MGs are small and autonomous subsets of the main electricity grid, which help reinforce the self-healing characteristics of SGs and support decentralised generation	MGs supply energy obtained by means of DERs to nearby consumers. SG components can be used to fix issues facing traditional MGs thus transforming them into smart MGs by introducing smart technologies
11	Integration of Renewable Resources	Substitution of fossil fuel sources	More reliance on local resources hence lore energy security
12	IoT	The IoT enables access to information any time wherever you are connecting devices through real-time information	Helps to achieve optimal control and maintenance of home appliances by integrating recent and modern Information and Communication technologies (ICT) and energy technologies in the housing environment. These reduces energy cost and wasteful use of energy.
14	Smart charging Electrification of transport hence reduced emissions	Electric vehicles use chemical energy stored batteries that can be recharged and used in vehicle propulsion and supply of power to the grid when prices are favourable. Reduces emissions from transport sector which is about 14% of global GHG emissions from anthropogenic sources.	Smart charging can be centrally done through aggregators or can be decentralised using decentralised control structures. Smart charging using both centralised and decentralised systems can effectively reduce energy costs and prevent the overloading of grid components by shifting peak demand.
15	Reduce Transmission & Distribution Losses hence high efficiency	Decentralisation of generation at sites close to consumers hence less transmission and distribution costs and losses.	Increased use of decentralised resources increases energy security and more use of renewable sources in power generation, increases access and reduces cost of power.
17	Development of smart cities and streetlight automation	Smartness of a city refers to the desire to improve the quality of life in a city and living standards of the city residents in terms (ICT). Intelligent application of SG is a key requirement for the establishment of smart cities.	Smart cities have been identified as the ultimate solution to complex challenges facing urban centres like energy supply, emissions, water supply, traffic congestion. Cities will account for about 70% of global population by 2050.
18	Grid Integrated Energy Storage	Seamless integration of energy storage to the grid	Optimum use of energy storage leading to increased uptake of VREs of energy.
19	V2X technologies	SGs will enhance electrification of transport creating opportunities for related sustainable technologies like V2V, V2H, V2G	Therefore, SG technology deployment will enhance the operation and control of electric vehicles making them important energy transition facility
20	Rural electrification	The SG also provides significant opportunities for alleviation of rural electrification through development of smart MGs based on renewable energy sources	Through SGs, significant opportunities for alleviation of rural electrification challenges are addressed by providing infrastructure for wider exploitation of renewable energy sources like biomass, solar PV, and wind, through active engagement of individuals, private business and connecting them to the national grid

Table 8. Challenges facing SGs.

	Challenge	Causes and Impact	Solution/Recommendations
1	Cost challenges	The main cost elements in SG development are associated with the power transmission and distribution system, electricity metering, and critical technologies. In economic analysis and financial feasibility	A country’s capacity to pay for the development cost for SG infrastructure is paramount which disadvantages developing countries. `Funding by international institutions can facilitate access to requisite funding for SGs.
2	Cyber Security	SGs deployment across the value chain, increases points of interconnection with different information networks which exposes the system to threats of cyber-attack to important power management systems and infrastructure.	Cyber security can be achieved through standardisation. It is necessary to identify weaknesses of the SGs exploited by attackers through SG Systems Treats Analysis and by integration of Systems Security Threat Models
3	Interoperability	Interoperability facilitates connection of different parties to the devices and systems for proper interaction	The interoperability can be achieved through strict implementation relevant standards
4	Physical Security	There is risk to valuable assets and systems that are widely spread across the country of power system boundaries	Investment in facility security and proper sitting away from danger and keeping of intruders and risks through access control.
5	Privacy and Security Policies	Wide scale interconnectivity and system access including the growth of IoT associated with SG development, privacy, and development rises privacy and confidentiality concerns.	Put in place security policies to establish relationships between the consumers, utilities, generating companies, transmission firms, and third parties, although applying security and privacy policies
6	Connectivity	Refers to communications connectivity and interchange within the SG infrastructure and between users or stakeholders.	It is necessary to develop internet and communications infrastructure across the whole power system coverage area.
7	Confidentiality challenges	Access Control and Identity Management is needed for confidentiality of data transmitted via SGs.	Only authenticated users should be allowed access to the control center for transmission, and distribution grids
8	Defence	The SGs have inherent vulnerabilities against which it must be protected. This can be achieved by building an effective, layered defence system for protection of the smart grid infrastructure.	This defence or protection against the threats or vulnerabilities give the network segmentation and access control to defend against denial-of-service (DoS). Technologies used include firewall, virtual private network (VPN), intrusion prevention system (IPS).

Table 9. Role of SGs in the energy transition and related challenges.

	Dimension of sustainability	Sustainability impact	Challenges
1	Economic sustainability	Converts consumers to prosumers who make revenue and save on cost through variable pricing.	It is difficult to understand and communicate the value proposition of a SG deployment for all stakeholders in the power system. The risk and reward system can challenge business plans for SG investments. Regulatory environment or lack of regulation may create challenges in terms of costs and related expenditures. It is difficult to develop and implement an appropriate incentive structure aligning economic and regulatory policies with energy-efficiency and environmental goals. SG infrastructure is expensive to deploy and requires highly trained personnel.
2	Environmental sustainability	Reduces greenhouse gas emission through higher absorption of variable renewables. As well as high efficiency hence less consumption	The level of emissions reduction is highly dependent on the energy mix. Not all areas are endowed with abundant supply of solar and wind resources to exploit decentralised power generation.
3	Social sustainability	Maximum use of local energy resources, employment and cleaner environment and participatory operations	Valuation of smart system externalities is difficult making balanced decision making. SG technology deployment and implementation requires highly skilled manpower hence high staff development cost and time. It is difficult to value the value of benefits to the community in terms of jobs and advancement of skills.
4	Technical sustainability	Facilitate MGs and decentralised generation. Increases reliability, efficiency, and optimum use of all energy resources in the system as wee as the infrastructure.	Need for designs to accommodate multiple technologies due to constant technology changes. Flexibility to changing technologies requires identifying the important interfaces between technology components which may be difficult. Limited standardisation as the industry is still evolving.
5	Institutional sustainability	Facilitates active participation of all stakeholders where all stakeholders benefit.	Develop policies that support the deployment of renewable sources and efficiency in electricity transmission, distribution and consumption which create demand for smart energy systems. Countries should set up regulatory regimes that encourage investment and deployment of SG technology and infrastructure. There should be an appropriate incentive structure that aligns sustainable energy with SG technology.

UNECE. 2016. “Electricity System Development: Focus on Smart Grids.” UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE, 2022. [Online]. https://unece.org/fileadmin/DAM/energy/se/pdfs/eneff/eneff_h.news/Smart.Grids.Overview.pdf.

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