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DISCLOSURE
WHAT IS SMART GRID
HISTORY OF SMART GRID
DIFFERENCE BETWEEN SMART METERS AND THE SMART GRID
SYSTEM RELIABILITY AND THE SMART GRID
DISTRIBUTED RENEWABLE GENERATION AND THE SMART GRID
ELECTRICITY STORAGE AND THE SMART GRID
ELECTRIC VEHICLES AND THE SMART GRID

DISCLOSURE GREEY EPC is under contract with S&C Electric Canada Ltd. The information on this website has a full bias towards the products and approaches offered by S&C Electric and should not be considered objective. Many of the Smart Grid solutions discussed here are based on North American electrical systems and are not particularly applicable elsewhere.

WHAT IS SMART GRID Smart Grid is the term used to talk about intelligence being added to the electrical power system. The electrical power system is often referred to as a "grid". It consists of three major parts; generation, transmission and distribution. Generation and transmission are not connected as a "grid" but are often included in Smart Grid discussions..

HISTORY OF SMART GRID I personally believe that the Smart Grid began in 2005 when the DOE (US Department of Energy), after working closely with industry partners such as IBM, formalized the term. Smart Grid came after Smart Meters and Smart Homes and sometimes the public is confused as to what the difference is.

Utilities do not change quickly and for a good reason.  The primary goal of many utilities is to have a cost effective reliable electric system. There is a risk to this goal by adopting change too quickly.  Understandably utilities did not fully embrace the Smart Grid initially.  To expedite this the US government created a $4.2 billion Smart Grid fund to incent US utilities into beginning Smart Grid projects more quickly.  Canada also created a $400 million Smart Grid fund to incent Canadian utilities to begin Smart Grid projects. Ten years later many utilities in North America have acknowledged the value of Smart Grid and have implemented many Smart Grid solutions.

DIFFERENCE BETWEEN SMART METERS AND THE SMART GRID Customers are connected to the electrical power system with a meter. The electrical meter was invented well over a hundred years ago and was based on electro mechanics. This meter is like an electric motor. The more electricity that is used, the faster the meter spins and the higher the bill. Electro mechanical meters are quite accurate and reliable. The problem is that these meters are read manually. Consequently billing cycles are long.  Meters have to be read and then the readings are manually entered into a billing system.

Electromechanical meters are also not able to handle TOU (Time Of Use) billing. TOU billing works by charging different electricity rates depending on the time of use.Ideally when the system is at its peak load, electricity should be expensive.Conversely when there is excess generation, electricity rates should be less expensive. TOU is used to match the load to the generation to increase the efficiency and reduce the total cost of the electrical system.By design it also gives electricity customers an opportunity for more control over their electricity bill.

Smart meters are able to provide very accurate TOU meter reads directly to the billing system. As the meter readings can be sent directly through wired or wireless communication to the billing system computer. This speeds up the entire process and eliminates errors.

However, neither automatic meter reading nor TOU billing are considered part of the Smart Grid. The value to the Smart Grid of Smart Meters is the additional data provided by the Smart Meters. Today's advanced Smart Meters can provide very accurate "power quality data", "reliability data" plus remote disconnect/reconnect capability in addition to remote TOU meter reads. Thus Smart Meters are considered a nice addition to a Smart Grid but not actually part of the Smart Grid.

SYSTEM RELIABILITY AND THE SMART GRID Most transmission and generation systems are fully redundant such that a single isolated fault will not cause an interruption to customers.  Conversely, large transmission or generation issues can affect large numbers of customers. Consequently generation and transmission interruptions are normally not included in reliability statistics. System reliability indices are normally only based on the distribution system's performance.

An electrical utility's reliability is measured using two industry specific indices: SAIFI (System Average Interruption Frequency Index) and SAIDI (System Average Interruption Duration Index) which are then combined into CAIDI (Customer Average Interruption Duration Index). A good SAIFI value would be 2 times. This indicates that on average, across the system, every customer has had two power interruptions. A good SAIDI value would be 100 minutes. This indicates that on average across the system customers were interrupted for 100 minutes. These are combined with CAIDI such that customers had an average interruption of 50 minutes, 2 times. However, these are averages and are actually quite misleading. Electric utilities are only now moving towards being able to measure reliability on a customer by customer basis.Unlike the telephone system for example, it is not possible to say that a cutomer has "four nines" reliability or 99.99% telephone availability.  The reason for this is that the typical Canadian urban distribution utility only experiences interruptions on roughly a third of the system. The other two thirds of these systems are very reliable due to underground construction and short protected lines. Consequently a SAIDI of 100 minutes is actually closer to 5 hours of interruption a year for the customers that had interruptions. The best way to improve distribution reliability, although an expensive solution, to bury the cables and thereby protect it from outages.This is often the case in the downtown areas of major cities where the power never goes out.

In Canada, if an interruption is less than a minute it is considered a momentary outage and is not included in the SAIDI and SAIFI indices. This is because the majority of faults on the overhead distribution are transient and will self-clear by simply reclosing. Reclosing is like turning the circuit back on. This practice of reclosing has been used for over 70 years and creates momentary outages.This is also one of the best ways of decreasing SAIDI and SAIFI.

DISTRIBUTED RENEWABLE GENERATION AND THE SMART GRID A primary role of Smart Grid is as an enabler for small, distributed, renewable generation such as photovoltaics or solar panels, wind and small hydro.

Today's power system is fundamentally designed to have large remote generating facilities feeding the load. This is often from remote locations. The generation is connected to High Voltage Transmission to reduce losses and deliver large amounts of power over long distances. The high voltage transmission requires large insulators on high towers travelling down wide corridors. The Transmission then connects to large transformer substations which then transforms the voltage down to levels that can be distributed to customers on poles or underground on main streets or roads. A final pole-mounted or pad-mounted transformer is then used to reduce the voltage to the 120 Volts used by the customers. The challenge then becomes to connect the solar panels to the 120 Volts. This portion of the system was designed to be supplying load not supporting generation. Such that there is little impact at the 120 volt level but large amounts of local generation can create problems on the distribution system.

ELECTRICITY STORAGE AND THE SMART GRID Until recently there was no way of storing large amounts of electricity. Electricity needs to be produced when it is consumed. 

In 2006, AEP installed North America's first large battery and it is still operating.Featuring a 1 MW (Million Watts) inverter and 5 MWH (Million Watt Hours).  Almost enough power to run a million homes for an hour in Canada.  Although the technology was not inexpensive, this originally appeared to be a real solution to the intermittent nature of solar and wind generation plus a simple way to match the load to the generation.

For utilities electricity storage is ideal.  The customer buys 10-15% more power than is needed due to the inefficiencies of the battery and inverter.  If TOU is in place, the customer either pays less to buy it at a good time for the utility or pays a premium to buy it at a convenient time for the customer.

Despite the huge expectation that utilities would install electricity storage across all of their systems many utilities still have very little storage on their system.  The value of Electricity Storage to the Smart Grid is still not well understood.

ELECTRIC VEHICLES AND THE SMART GRID Electric vehicles require electricity storage typically batteries charged from the grid. From a Smart Grid standpoint, electric vehicles provide a new load for utilities and electric vehicles demand a much better reliability than many conventional loads.

Where large numbers of electric vehicles are tightly clustered on the system, distribution utilities may need to make significant changes and improvements to their systems and Smart Grid will be part of the solution.

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