Table Of ContentEnergy
Infrastructure, Technology, Solutions
and
“The authors have provided a great collection of information from research and
practical application about the need for upgrading the electric transmission and
distribution system to a ‘smarter grid’ utilizing technology to provide a new level of
visibility and control of the system.”
IInnffrraassttrruuccttuurree,, TTeecchhnnoollooggyy,,
—Thomas F. Weaver, American Electric Power, Columbus, Ohio, USA
What exactly is smart grid? Why is it receiving so much attention? What are
SSoolluuttiioonnss
utilities, vendors, and regulators doing about it? Answering these questions aanndd
and more, Smart Grids: Infrastructure, Technology, and Solutions gives I
n
readers a clearer understanding of the drivers and infrastructure of one of the
f
most talked-about topics in the electric utility market—smart grids. It brings r
a
together the knowledge and views of a vast array of experts and leaders in s
t
their respective fields. r
u
c
The book describes the impetus for change in the electric utility industry and t
u
discusses the business drivers, benefits, and market outlook of the smart grid
r
e
initiative. Smart grid is defined not in terms of what it is, but what it achieves and
,
the benefits it brings to the utility, consumer, society, and environment. The book T
examines the technical framework of enabling technologies and smart solutions, e
c
and identifies the role of technology developments and coordinated standards in h
smart grids, including various initiatives and organizations helping to drive the n
o
smart grid effort.
l
o
g
The text presents both current technologies and forward-looking ideas on new y
technologies, and discusses barriers and critical factors for a successful smart ,
a
grid from a utility, regulatory, and consumer perspective. It summarizes recent n
d
smart grid initiatives around the world and discusses the outlook of the drivers
S
and technologies for the next-generation smart grid. Exploring the current
o
situation and future challenges, this book provides a global perspective on how l
u
the smart grid integrates twenty-first-century technology with the twentieth- t
i
century power grid. o
n
s
K11429
ISBN: 978-1-4398-2905-9
90000
9 781439 829059
Infrastructure, Technology,
Solutions
and
Electric Power and Energy Engineering
Series Editor
John D. McDonald
Smart Grids: Infrastructure, Technology, and Solutions, Stuart Borlase
Infrastructure, Technology,
Solutions
and
Boca Raton London New York
CRC Press is an imprint of the
Taylor & Francis Group, an informa business
Cover art: The editor would like to thank Rick Giammaria (courtesy of Pepco Holdings Inc) for providing the substation control
room photo and Alstom Grid for providing the EMS control room photo for the book cover artwork.
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2013 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Version Date: 20120706
International Standard Book Number-13: 978-1-4398-2910-3 (eBook - PDF)
This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to
publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials
or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material repro-
duced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any
copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint.
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any
form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming,
and recording, or in any information storage or retrieval system, without written permission from the publishers.
For permission to photocopy or use material electronically from this work, please access www.copyright.com (http://www.copy-
right.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400.
CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been
granted a photocopy license by the CCC, a separate system of payment has been arranged.
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identifica-
tion and explanation without intent to infringe.
Visit the Taylor & Francis Web site at
http://www.taylorandfrancis.com
and the CRC Press Web site at
http://www.crcpress.com
Contents
Foreword...........................................................................................................................................vii
Preface...............................................................................................................................................ix
Acknowledgments..............................................................................................................................xi
Editor..............................................................................................................................................xiii
Contributors......................................................................................................................................xv
Chapter 1 Overview.of.the.Electric.Utility.Industry.....................................................................1
Chapter 2 What.Is.Smart.Grid,.Why.Now?.................................................................................15
Chapter 3 Smart.Grid.Technologies.............................................................................................61
Chapter 4 Smart.Grid.Barriers.and.Critical.Success.Factors....................................................497
Chapter 5 Global.Smart.Grid.Initiatives....................................................................................531
Chapter 6 Smart.Grid:.Where.Do.We.Go.from.Here?...............................................................549
v
Foreword
I.am.proud.to.serve.as.Chairman,.President,.and.Chief.Executive.Officer.of.Pepco.Holdings,.Inc..
(PHI),.a.utility.holding.company.with.power.delivery.companies.that.have.served.southern.New.
Jersey,.the.Delmarva.Peninsula,.and.the.Washington,.District.of.Columbia,.area.for.more.than.100.
years..While.we.have.served.the.nation’s.capital.since.the.Cleveland.administration,.the.technolo-
gies.of.the.late.1800s.are.not.that.much.different.from.what.we.see.in.today’s.electric.system..Copper.
cable,.wooden.poles,.transformers,.and.meters.were.as.integral.to.the.system.then.as.they.are.now.
Today,.the.industry.is.changing.that.picture.and.focusing.on.building.a.smarter.grid.that.lever-
ages.a.wide.range.of.digitally.based.advanced.technologies.that.will.automate.many.electric.system.
functions..This.emerging.“smart.grid”.has.been.described.as.the.convergence.of.electric.system.and.
information.technologies..In.other.words,.Thomas.Edison.meets.Bill.Gates:.the.electric.system.that.
has.served.us.so.well.since.the.nineteenth.century.will.be.integrated.with.digital.technologies.to.
provide.utility.customers.the.enhanced.information,.services,.and.reliability.that.are.so.critical.in.
the.twenty-first.century.
The.foundation.of.the.smart.grid.starts.with.an.Advanced.Metering.Infrastructure.or.AMI..
Through.the.installation.of.smart.meters.and.supporting.technologies,.customers.will.have.access.
to.enriched.energy.data;.renewable.generation.and.electric.vehicles.will.be.more.easily.integrated.
into.the.electric.grid;.and.innovative.rate.structures.and.programs.will.be.implemented.that.enable.
customers.to.assume.greater.control.of.their.energy.consumption.
In.this.new,.smarter.world,.customers.will.be.able.to.view.their.energy.usage.via.mobile.devices,.
the.Internet,.or.special.home.monitors,.and.the.utility.will.do.the.same.through.a.meter.data.man-
agement.system..And,.instead.of.one.total.consumption.figure.once.a.month,.customer.hourly.data.
will.be.transmitted.wirelessly.multiple.times.a.day,.or.on.demand.if.needed..The.meter.will.also.
serve.as.a.grid.sensor,.which.can.help.to.detect.power.fluctuations.and.outages.and.be.used.to.
remotely.connect.or.disconnect.service.
While.a.smart.grid.necessarily.entails.smart.meters,.it.involves.far.more.pervasive.technologies.
across.the.entire.grid—a.supporting.communications.infrastructure,.and.an.array.of.intelligent.
devices.on.distribution.and.transmission.systems.and.within.substations,.which.are.able.to.isolate.
electrical.problems,.make.automatic.power.adjustments,.and.speed.overall.restoration..Ultimately,.
a.smart.grid.creates.an.advanced.analytical.platform.for.better.operational.awareness.and.real-time.
optimization.of.the.distribution.and.transmission.network..All.this.new.technology,.in.short,.will.
create.a.“smarter”.electric.grid.
Back.in.2006,.in.response.to.the.critical.energy.and.environmental.challenges.facing.the.nation.
and.the.world,.PHI.began.to.promote.a.vision.of.an.alternative.energy.future..We.referred.to.this.
vision.as.our.“Blueprint.for.the.Future”—a.partnership.between.the.utility.and.its.customers.that.
leverages.technology.and.information.to.drive.energy.efficiency.and.increase.reliability..We.envi-
sioned.a.world.where.customers.would.be.empowered.to.manage.their.energy.use.and.costs,.gov-
ernments.could.reach.energy.reduction.goals,.and.all.would.benefit.from.fewer.carbon.emissions.
and.a.cleaner.environment..At.the.time,.one.could.not.look.at.the.nation’s.energy.companies,.state.
regulatory.and.legislative.bodies,.and.federal.agencies.and.see.strong.alignment.or.coalescence.of.
thought.on.the.“smart.grid”.topic.
Now,.as.I.write.this.in.2012,.it.is.inspiring.to.look.back.and.see.how.much.has.changed.in.our.
national.smart.grid.discussion..Through.the.efforts.of.advocates.and.early.adopters—and.particularly.
the.leadership.of.President.Obama’s.administration—the.smart.grid.has.been.transformed.from.a.the-
oretical.notion.to.a.practical.reality.that.is.increasingly.recognized.as.an.essential.step.into.the.future.
vii
viii Foreword
It.is.important.to.recognize.that.although.technology.is.critical.to.the.smart.grid,.in.isolation.it.
is.not.transformational..To.fully.achieve.the.benefits.of.the.smart.grid.requires.a.strong.partnership.
between.utilities,.government,.regulators,.and.the.public—and.new.energy.behaviors..Smart.meters.
do.not.reduce.carbon.emissions,.people.do.by.utilizing.enhanced.energy.information,.responding.
to.price.signals,.and.leveraging.financial.incentives.that.will.help.us.collectively.achieve.the.goals.
of.energy.independence.and.emissions.reduction..The.concept.of.transformation.is.essential.to.the.
smart.grid,.and.it.is.a.theme.that.I.cite.often..Historically,.the.relationship.between.the.utility.and.the.
customer.has.been.transparent..People.are.used.to.the.daily.“miracle”.of.electricity—of.flipping.a.
switch.to.create.light.or.pushing.a.button.to.activate.a.TV,.computer,.or.other.electronic.device.that.
helps.our.society.function..Going.forward,.customers.will.have.a.wide.variety.of.tools.to.manage.
their.energy.use,.which.help.to.reduce.energy.costs.and.meet.the.environmental.and.energy.chal-
lenges.before.us.
The.energy.industry.is.at.the.center.of.this.transformation—optimizing.the.integration.of.exist-
ing.and.future.energy.supplies,.including.the.connection.of.renewables;.leveraging.demand.side.
resources.such.as.dynamic.pricing.and.direct.load.control.of.customer.appliances;.and.offering.
customers.access.to.enhanced.energy.information.and.tools.to.lower.energy.use.to.help.keep.supply.
and.demand.in.balance..Exciting.opportunities.also.are.forming.in.the.electric.transportation.mar-
ket,.where.utilities.are.being.called.upon.to.develop.charging.infrastructures.for.expected.growth.
in.plug-in.electric.vehicles..In.sum,.fertile.ground.is.being.tilled.for.growing.new.business.partner-
ships,.products,.and.services.
Of.course,.with.change.comes.challenge..When.the.smart.grid.is.fully.deployed.and.customers.
take.advantage.of.its.capabilities,.electricity.sales.growth.will.be.significantly.affected..Statistics.
show.that.even.now,.in.many.regions,.energy.consumption.has.declined.in.absolute.terms..Reduced.
energy.use.is.a.good.thing,.but.regulators.need.to.recognize.that.the.cost.of.delivering.power.is.
relatively.fixed,.regardless.of.consumption.levels..Regulatory.mechanisms.need.to.be.developed.that.
recognize.this.reality.and.that.recognize.the.importance.of.financially.healthy.utilities.
As.you.will.discover.in.Chapter.1,.the.utility.industry.is.arguably.the.most.regulated.in.existence..
Understanding.the.nature.of.this.utility–regulator.relationship.is.essential.to.a.sufficient.understand-
ing.of.the.industry..And.a.sufficient.understanding.of.the.industry.is.essential.for.all.stakeholders.
seeking.to.advance.smart.grid.adoption.
Many.in.the.industry.define.the.smart.grid.by.the.myriad.evolving.technologies.that.we.are.
evaluating,.designing,.and.implementing..I.would.suggest.to.you.that.the.smart.grid.transformation.
can.best.be.advanced.if.we.define.it.less.by.the.technology.and.more.by.the.benefits.that.the.technol-
ogy.brings:
Lower.energy.use
Better.reliability
Faster.restoration
New.jobs
New.markets
The.smart.grid.is.the.best.approach.to.meeting.our.industry’s.challenges.and.customer..expectations—
the.shortest.distance.between.our.current.state.and.our.desired.future..As.we.enter.the.second.decade.
of.the.new.century,.we.have.a.better.collective.understanding.of.what.this.means.and.of.what.can.be..
I.am.as.optimistic.as.ever.about.the.benefits.to.be.realized.through.our.collective.efforts.
Joe Rigby
Chairman, President, and Chief Executive Officer
Pepco Holdings, Inc.
Washington, District of Columbia
Preface
A Global Perspective on How the Smart
Grid Integrates 21st Century Technology
with the 20th Century Power Grid
Never.before.has.there.been.so.much.attention.on.the.electric.utility.industry.and.such.widespread.
use.of.the.phrase.“smart.grid.”.From.where.we.are.today,.the.smart.grid.has.promised.the.glory.of.
electric.grid.transformation,.utility.heroes,.incredible.technology.breakthroughs,.dreams.of.con-
sumer.enamorment,.a.cleaner.environment,.and.job.creation..Utilities.and.vendors.alike.have.been.
clamoring.to.be.the.first.in.smart.grid,.many.ideas.of.smart.grid.have.been.presented,.and.there.has.
been.week.after.week.of.some.kind.of.smart.grid.meeting.or.conference..There.have.certainly.been.
some.changes.in.the.industry.since.the.marketing.hype.around.intelligent.grid.and.smart.grid.first.
started,.and.there.have.been.some.serious.efforts.at.making.sense.of.it.all.through.collaboration.
and.demonstrations.worldwide..However,.fundamental.questions.still.remain:.what.exactly.is.smart.
grid?.how.do.we.get.there?.and.the.favorite.is.smart.grid.real?
While.smart.grid.is.an.elusive.term.with.many.different.interpretations,.there.seems.to.be.a.
gathering.of.critical.mass.in.the.thinking.of.the.electric.utility.industry.around.the.needs.of.smart.
grid.and.the.reform.in.regulation,.technologies,.and.applications..It.is.without.a.doubt.that.the.smart.
grid.initiative.has.gained.much.interest.and.backing.worldwide,.driven.in.part.by.regulatory.initia-
tives.in.advanced.metering.and.from.funding.opportunities,.not.only.in.the.United.States,.but.also.
in.other.regions.of.the.world..Smart.grid.has.led.to.the.focus.on.more.efficient.and.environmentally.
friendly.electric.energy.solutions.and.has.helped.heighten.the.awareness.and.commitment.from.
consumers.in.energy.reduction..Changes.in.the.utility.industry.have.historically.been.very.slow..
Yes,.some.technologies.touted.as.smart.grid.have.been.around.for.many.years,.but.I.think.that.in.
most.cases.with.these.existing.technologies.there.has.not.been.a.concerted.drive.to.move.away.from.
pilots.and.demonstration.projects.to.more.scalable.and.widespread.deployments.with.sustainable.
benefits..I.define.smart.grid.in.terms.of.not.what.it.is,.but.what.it.achieves.and.the.benefits.it.brings.
to.the.utility,.consumer,.society,.and.environment..The.smart.grid.should.focus.on.advancements.in.
technologies.and.synergies.in.the.integration.of.IT.and.operations.applications.that.will.bring.more.
far-reaching.benefits.than.imagined.today.and.bring.about.tremendous.change.to.the.industry..Are.
we.at.this.level.of.smart.grid.today—of.course.not..Will.we.get.there—who.knows.at.this.point.in.
time..Smart.grid.seems.to.be.in.a.dormant.phase,.spurred.to.this.point.by.an.initial.focus.on.deploy-
ing.smart.meters.and.system-wide.AMI.through.major.regulatory.and.funding.initiatives,.currently.
held.in.check.by.global.market.and.financial.crises,.and.hesitant.to.progress.based.on.a.mixed.
review.of.past.successes.and.failures.
This.book.discusses.the.current.buzzword.in.the.electric.utility.market,.“smart.grid,”.and.
answers.the.following.questions:.what.is.smart.grid?.why.is.the.concept.of.a.smart.grid.receiving.so.
much.attention?.and.what.are.utilities,.vendors,.and.regulators.doing.about.smart.grid?.This.book.
is.a.blend.of.views.from.numerous.authors,.as.intended.from.the.outset..It.describes.the.impetus.
for.change.in.the.electric.utility.industry.and.discusses.the.business.drivers,.benefits,.and.market.
outlook.of.the.smart.grid.initiative..It.identifies.the.technical.framework.of.enabling.technologies.
and.smart.solutions.and.describes.the.role.of.technology.developments.and.coordinated.standards.
ix
