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{{short description|Type of electrical grid}}

[[File:Staying big or getting smaller.jpg|thumb|350px|Characteristics of a traditional centralized electrical system (left) vis-à-vis those of a smart grid (right)]]

<noinclude>{{Public Infrastructure}}</noinclude>

The '''smart grid''' is an enhancement of the 20th century [[electrical grid]], using two-way communications and distributed so-called intelligent devices.<ref name="tsg">{{cite journal |last1=Hu |first1=J. |last2=Lanzon |first2=A. |title=Distributed finite-time consensus control for heterogeneous battery energy storage systems in droop-controlled microgrids |journal=IEEE Transactions on Smart Grid |volume=10|issue=5|pages=4751–4761|year=2019 |doi=10.1109/TSG.2018.2868112 |s2cid=117469364 |url=https://ieeexplore.ieee.org/document/8452969}}</ref> Two-way flows of electricity and information could improve the delivery network. Research is mainly focused on three systems of a smart grid&nbsp;– the infrastructure system, the management system, and the protection system.<ref>{{cite journal | doi=10.1109/SURV.2011.101911.00087 | title=Smart Grid — the New and Improved Power Grid: A Survey | date=2012 | last1=Fang | first1=Xi | last2=Misra | first2=Satyajayant | last3=Xue | first3=Guoliang | last4=Yang | first4=Dejun | journal=IEEE Communications Surveys & Tutorials | volume=14 | issue=4 | pages=944–980 }}</ref> Electronic power conditioning and control of the production and distribution of electricity are important aspects of the smart grid.<ref>{{Cite web|url=http://www.ferc.gov/legal/staff-reports/12-08-demand-response.pdf|title=Federal Energy Regulatory Commission Assessment of Demand Response & Advanced Metering|website=www.ferc.gov}}</ref>

The smart grid represents the full suite of current and proposed responses to the challenges of electricity supply. Numerous contributions to the overall improvement of energy infrastructure efficiency   are anticipated from the deployment of smart grid technology, in particular including [[Demand side management|demand-side management]]. The improved flexibility of the smart grid permits greater penetration of highly variable renewable energy sources such as [[solar power]] and [[wind power]], even without the addition of [[energy storage]]. Smart grids could also monitor/control residential devices that are noncritical during periods of peak power consumption, and return their function during nonpeak hours.<ref>{{cite journal |last1=Sayed |first1=K. |last2=Gabbar |first2=H. A. |date=1 January 2017 |title=Chapter 18 – SCADA and smart energy grid control automation |journal=Smart Energy Grid Engineering |language=en |publisher=Academic Press |pages=481–514 |doi=10.1016/B978-0-12-805343-0.00018-8 |isbn=978-0128053430}}</ref>

A smart grid includes a variety of operation and energy measures:
* [[Advanced metering infrastructure]] (of which [[smart meter]]s are a generic name for any utility side device even if it is more capable e.g. a fiber optic router)
* Smart [[distribution board]]s and [[circuit breaker]]s integrated with [[home control]] and [[demand response]] (''behind the meter'' from a utility perspective)
** [[Load control switch]]es and [[smart appliance]]s, often financed by efficiency gains on municipal programs (e.g. [[PACE financing]])
* [[Renewable energy]] resources, including the capacity to charge parked ([[electric vehicle]]) batteries or larger arrays of batteries recycled from these, or other [[energy storage]].
* Energy efficient resources
* Electric surplus distribution by power lines and auto-smart switch
* Sufficient utility grade fiber [[broadband]] to connect and monitor the above, with wireless as a backup. Sufficient spare if "dark" capacity to ensure failover, often leased for revenue.<ref>{{cite web|title=Federal Energy Regulatory Commission Assessment of Demand Response & Advanced Metering|url=http://www.ferc.gov/legal/staff-reports/12-08-demand-response.pdf|website=United States Federal Energy Regulatory Commission}}</ref><ref>{{Cite book|last1=Saleh|first1=M. S.|last2=Althaibani|first2=A.|last3=Esa|first3=Y.|last4=Mhandi|first4=Y.|last5=Mohamed|first5=A. A.|title=2015 International Conference on Smart Grid and Clean Energy Technologies (ICSGCE) |chapter=Impact of clustering microgrids on their stability and resilience during blackouts |date=October 2015|pages=195–200|doi=10.1109/ICSGCE.2015.7454295|isbn=978-1-4673-8732-3|s2cid=25664994|url=https://academicworks.cuny.edu/cc_pubs/588}}</ref>

Concerns with smart grid technology mostly focus on smart meters, items enabled by them, and general security issues. Roll-out of smart grid technology also implies a fundamental re-engineering of the electricity services industry, although typical usage of the term is focused on the technical infrastructure.<ref>{{Cite journal |last1=Torriti |first1=Jacopo |year=2012 |title=Demand Side Management for the European Supergrid: Occupancy variances of European single-person households |journal=Energy Policy |volume=44 |pages=199–206 |doi=10.1016/j.enpol.2012.01.039|bibcode=2012EnPol..44..199T }}</ref>

Smart grid policy is organized in Europe as Smart Grid European Technology Platform.<ref>{{cite web |year=2011 |title=Smart Grids European Technology Platform |url=http://www.smartgrids.eu/ |archive-url=https://web.archive.org/web/20111003102349/http://www.smartgrids.eu/ |archive-date=2011-10-03 |access-date=2011-10-11 |website=SmartGrids}}</ref> Policy in the United States is described in [[Title 42 of the United States Code]].<ref>{{Cite web |title=42 U.S. Code Subchapter IX - SMART GRID |url=https://www.law.cornell.edu/uscode/text/42/chapter-152/subchapter-IX |access-date=2024-08-05 |website=LII / Legal Information Institute |language=en}}</ref>

==Background==

=== Historical development of the electricity grid ===
The first [[alternating current]] [[power grid]] system was installed in 1886 in [[Great Barrington, Massachusetts]].<ref>{{Cite web |title= The History of Electrification: The Birth of our Power Grid |work= Edison Tech Center |url= http://edisontechcenter.org/HistElectPowTrans.html |access-date= November 6, 2013 }}</ref> At that time, the grid was a centralized unidirectional system of [[electric power transmission]], [[electricity distribution]], and demand-driven control.

In the 20th century, local grids grew over time and were eventually interconnected for economic and reliability reasons. By the 1960s, the electric grids of developed countries had become very large, mature, and highly interconnected, with thousands of 'central' generation power stations delivering power to major load centres via high capacity power lines which were then branched and divided to provide power to smaller industrial and domestic users over the entire supply area. The topology of the 1960s grid was a result of the strong economies of scale: large coal-, gas- and oil-fired power stations in the 1 GW (1000 MW) to 3 GW scale are still found to be cost-effective, due to efficiency-boosting features that can be cost-effective only when the stations become very large.

Power stations were located strategically to be close to fossil fuel reserves (either the mines or wells themselves or else close to rail, road, or port supply lines). Siting of hydroelectric dams in mountain areas also strongly influenced the structure of the emerging grid. Nuclear power plants were sited for the availability of cooling water. Finally, [[fossil fuel]]-fired power stations were initially very polluting and were sited as far as economically possible from population centres once electricity distribution networks permitted it. By the late 1960s, the electricity grid reached the overwhelming majority of the population of developed countries, with only outlying regional areas remaining 'off-grid'.

Metering of electricity consumption was necessary on a per-user basis in order to allow appropriate billing according to the (highly variable) level of consumption of different users. Because of limited data collection and processing capability during the period of growth of the grid, fixed-tariff arrangements were commonly put in place, as well as dual-tariff arrangements where night-time power was charged at a lower rate than daytime power. The motivation for dual-tariff arrangements was the lower night-time demand. Dual tariffs made possible the use of low-cost night-time electrical power in applications such as the maintaining of 'heat banks' which served to 'smooth out' the daily demand, and reduce the number of turbines that needed to be turned off overnight, thereby improving the utilisation and profitability of the generation and transmission facilities. The metering capabilities of the 1960s grid meant technological limitations on the degree to which [[price signals]] could be propagated through the system.

From the 1970s to the 1990s, growing demand led to increasing numbers of power stations. In some areas, the supply of electricity, especially at peak times, could not keep up with this demand, resulting in poor [[power quality]] including [[Power outage|blackouts]], power cuts, and [[brownout (electricity)|brownouts]]. Increasingly, electricity was depended on for industry, heating, communication, lighting, and entertainment, and consumers demanded ever-higher levels of reliability.

Towards the end of the 20th century, electricity demand patterns were established: domestic heating and [[air-conditioning]] led to daily peaks in demand that were met by an array of 'peaking power generators' that would only be turned on for short periods each day. The relatively low utilisation of these peaking generators (commonly, [[gas turbine]]s were used due to their relatively lower capital cost and faster start-up times), together with the necessary redundancy in the electricity grid, resulting in high costs to the electricity companies, which were passed on in the form of increased tariffs.

In the 21st century, some developing countries like China, India, and Brazil were seen as pioneers of smart grid deployment.<ref>{{Cite book |author1= Mohsen Fadaee Nejad |author2= AminMohammad Saberian |author3= Hashim Hizam |display-authors=etal |title= 2013 IEEE 7th International Power Engineering and Optimization Conference (PEOCO) |pages= 427–431 |date=2013 |publisher= IEEE |doi= 10.1109/PEOCO.2013.6564586 |chapter= Application of smart power grid in developing countries |chapter-url=https://ieeexplore.ieee.org/xpl/conhome/6554179/proceeding |isbn= 978-1-4673-5074-7 |s2cid= 9292426 |url= http://psasir.upm.edu.my/id/eprint/48050/1/Application%20of%20smart%20power%20grid%20in%20developing%20countries.pdf }}</ref>

===Modernization opportunities===
[[File:High-voltage power line grid of the world.png|thumb|World map of high voltage transmission lines with more than 220 kV in 2023]]
Since the early 21st century, opportunities to take advantage of improvements in electronic communication technology to resolve the limitations and costs of the electrical grid have become apparent. Technological limitations on metering no longer force peak power prices to be averaged out and passed on to all consumers equally. In parallel, growing concerns over environmental damage from fossil-fired power stations have led to a desire to use large amounts of [[renewable energy]]. Dominant forms such as [[wind power]] and [[solar power]] are highly variable, and so the need for more sophisticated control systems became apparent, to facilitate the connection of sources to the otherwise highly controllable grid.<ref name="bookSG">{{cite book|title=Smart Grid - Applicacions, Communications and Security|date=April 2012|publisher=John Wiley and Sons|isbn=978-1-1180-0439-5|url=http://eu.wiley.com/WileyCDA/WileyTitle/productCd-1118004396.html|editor=Berger, Lars T. |editor2=Iniewski, Krzysztof}}</ref> Power from [[photovoltaic cells]] (and to lesser extent [[wind turbine]]s) has also, significantly, called into question the imperative for large, centralised power stations. The rapidly falling costs point to a major change from the centralised grid topology to one that is highly distributed, with power being both generated ''and'' consumed right at the limits of the grid. Finally, growing concern over [[terrorist]] attacks in some countries has led to calls for a more robust energy grid that is less dependent on centralised power stations that were perceived to be potential attack targets.<ref>
 {{cite web
 |url         = http://www.energyfuturecoalition.org/files/webfmuploads/EFC_Report/EFCReport.pdf
 |title       = Challenge and Opportunity: Charting a New Energy Future, Appendix A: Working Group Reports
 |author      = Smart Grid Working Group
 |publisher   = Energy Future Coalition
 |date        = June 2003
 |access-date  = 2008-11-27
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20090318232525/http://www.energyfuturecoalition.org/files/webfmuploads/EFC_Report/EFCReport.pdf
 |archive-date = 2009-03-18
}}</ref>

===Definition of "smart grid"===
[[File:What Is the Smart Grid-.webm|thumb|350px|Video about smart grids]]

==== United States ====
The first official definition of Smart Grid was provided by the [[Energy Independence and Security Act of 2007|Energy Independence and Security Act of 2007 (EISA-2007)]], which was approved by the US Congress in January 2007, and signed to law by [[George W. Bush|President George W. Bush]] in December 2007. Title XIII of this bill provides a description, with ten characteristics, that can be considered a definition for Smart Grid, as follows:<blockquote>"It is the policy of the United States to support the modernization of the Nation's electricity transmission and distribution system to maintain a reliable and secure electricity infrastructure that can meet future demand growth and to achieve each of the following, which together characterize a Smart Grid: (1) Increased use of digital information and controls technology to improve reliability, security, and efficiency of the electric grid. (2) Dynamic optimization of grid operations and resources, with full cyber-security. (3) Deployment and integration of distributed resources and generation, including renewable resources. (4) Development and incorporation of demand response, demand-side resources, and energy-efficiency resources. (5) Deployment of 'smart' technologies (real-time, automated, interactive technologies that optimize the physical operation of appliances and consumer devices) for metering, communications concerning grid operations and status, and distribution automation. (6) Integration of 'smart' appliances and consumer devices. (7) Deployment and integration of advanced electricity storage and peak-shaving technologies, including plug-in electric and hybrid electric vehicles, and thermal storage air conditioning. (8) Provision to consumers of timely information and control options. (9) Development of standards for communication and interoperability of appliances and equipment connected to the electric grid, including the infrastructure serving the grid. (10) Identification and lowering of unreasonable or unnecessary barriers to adoption of smart grid technologies, practices, and services."</blockquote>

==== European Union ====
The European Union Commission Task Force for Smart Grids also provides smart grid definition<ref>{{Cite web |title=Smart Grid definition by EU Commission |url=http://www.ieadsm.org/publication/functionalities-of-smart-grid-and-smart-meters-eutf/ |archive-url=https://web.archive.org/web/20200414144309/http://www.ieadsm.org/wp/files/Tasks/Task%2017%20-%20Integration%20of%20Demand%20Side%20Management,%20Energy%20Efficiency,%20Distributed%20Generation%20and%20Renewable%20Energy%20Sources/Background%20material/Eg1%20document%20v_24sep2010%20conf.pdf |archive-date=14 April 2020 |archive-format=PDF}}</ref><ref name="Gesellschaft für Operations Research. Annual International Conference Neufeld Buscher Lasch p.">{{cite book | author=Gesellschaft für Operations Research. Annual International Conference | last2=Neufeld | first2=Janis S. | last3=Buscher | first3=Udo | last4=Lasch | first4=Rainer | last5=Möst | first5=Dominik | last6=Schönberger | first6=Jörn | title=Operations Research Proceedings 2019 : selected papers of the Annual International Conference of the German Operations Research Society (GOR), Dresden, Germany, September 4-6, 2019 | publisher=Springer | publication-place=Cham, Switzerland | date=2020 | isbn=978-3-030-48439-2 | oclc=1198557067 | chapter=On the Observabilty of Smart Grids and Related Optimization Methods | page=281}}</ref><ref>{{Cite web |date=December 2010 |title=Functionalities of smart grids and smart meters |url=https://circabc.europa.eu/ui/group/f5b849d3-26ae-4cba-b9f9-6bc6688c5f58/library/b094eb71-ba9e-4c93-b26c-f2cb8240dc05/details |website=Smart Grids Task Force }}{{Dead link|date=December 2024 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> as:

<blockquote>
"A Smart Grid is an electricity network that can cost efficiently integrate the behaviour and actions of all users connected to it – generators, consumers and those that do both – in order to ensure economically efficient, sustainable power system with low losses and high levels of quality and security of supply and safety. A smart grid employs innovative products and services together with intelligent monitoring, control, communication, and self-healing technologies in order to:

# Better facilitate the connection and operation of generators of all sizes and technologies.
# Allow consumers to play a part in optimising the operation of the system.
# Provide consumers with greater information and options for how they use their supply.
# Significantly reduce the environmental impact of the whole electricity supply system.
# Maintain or even improve the existing high levels of system reliability, quality and security of supply.
# Maintain and improve the existing services efficiently."
</blockquote>

That definition was used in the European Commission Communication (2011) 202.<ref>{{CELEX|52011DC0202|text=COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Smart Grids: from innovation to deployment}}</ref>

A common element to most definitions is the application of digital processing and communications to the power grid, making data flow and [[information management]] central to the smart grid. Various capabilities result from the deeply integrated use of digital technology with power grids. Integration of the new grid information is one of the key issues in the design of smart grids. Electric utilities now find themselves making three classes of transformations: improvement of infrastructure, called the ''strong grid'' in China; addition of the digital layer, which is the essence of the ''smart grid''; and business process transformation, necessary to capitalize on the investments in smart technology. Much of the work that has been going on in electric grid modernization, especially substation and distribution automation, is now included in the general concept of the smart grid.<ref>{{Cite web |title=EUROPEAN TASK FORCE FOR THE IMPLEMENTATION OF SMART GRIDS INTO THE EUROPEAN INTERNAL MARKET: Mission and Word Programme |url=https://ec.europa.eu/energy/sites/ener/files/documents/mission_and_workprogramme.pdf |access-date=2022-07-25 |website=CIRCABC }}</ref>

===Early technological innovations===
Smart grid technologies emerged from earlier attempts at using electronic control, metering, and monitoring. In the 1980s, [[automatic meter reading]] was used for monitoring loads from large customers and evolved into the [[Advanced Metering Infrastructure]] of the 1990s, whose meters could store how electricity was used at different times of the day.<ref name=ferc01>{{cite report
 | url=http://www.ferc.gov/legal/staff-reports/demand-response.pdf
 | title=Assessment of Demand Response and Advanced Metering (Docket AD06-2-000)
 | work=[[Federal Energy Regulatory Commission]]
 | page=20
 | publisher=[[United States Department of Energy]]
 | date=August 2006
 | access-date=2008-11-27
 | archive-date=2008-10-27
 | archive-url=https://web.archive.org/web/20081027040534/http://www.ferc.gov/legal/staff-reports/demand-response.pdf
 }}</ref> [[Smart meter]]s add continuous communications so that monitoring can be done in real-time, and can be used as a gateway to [[demand response]]-aware devices and "smart sockets" in the home. Early forms of such [[demand side management]] technologies were [[Dynamic demand (electric power)|dynamic demand]] aware devices that passively sensed the load on the grid by monitoring changes in the power supply frequency. Devices such as industrial and domestic air conditioners, refrigerators, and heaters adjusted their duty cycle to avoid activation during times the grid was suffering a peak condition. Beginning in 2000, Italy's Telegestore Project was the first to network large numbers (27 million) of homes using smart meters connected via low bandwidth [[power line communication]].<ref name=NETL01>{{cite report
 | url=http://www.netl.doe.gov/smartgrid/referenceshelf/whitepapers/Modern%20Grid%20Benefits_Final_v1_0.pdf
 | title=NETL Modern Grid Initiative&nbsp;— Powering Our 21st-Century Economy
 | work=[[National Energy Technology Laboratory]]
 | page=17
 | publisher=[[United States Department of Energy]] Office of Electricity Delivery and Energy Reliability
 | date=August 2007
 | access-date=2008-12-06
 | archive-date=2012-02-23
 | archive-url=https://web.archive.org/web/20120223064002/http://www.netl.doe.gov/smartgrid/referenceshelf/whitepapers/Modern%20Grid%20Benefits_Final_v1_0.pdf
 | url-status=dead
 }}</ref> Some experiments used the term [[broadband over power lines]] (BPL), while others used wireless technologies such as [[mesh network]]ing promoted for more reliable connections to disparate devices in the home as well as supporting metering of other utilities such as gas and water.<ref name="bookSG"/>

Monitoring and synchronization of wide-area networks were revolutionized in the early 1990s when the [[Bonneville Power Administration]] expanded its smart grid research with prototype [[Phasor measurement unit|sensors]] that are capable of very rapid analysis of anomalies in electricity quality over very large geographic areas. The culmination of this work was the first operational Wide Area Measurement System (WAMS) in 2000.<ref>{{cite web
 | url=http://gridwise.pnl.gov/foundations/history.stm
 | archive-url=https://web.archive.org/web/20081027235841/http://gridwise.pnl.gov/foundations/history.stm
 | archive-date=2008-10-27
 | title=Gridwise History: How did GridWise start?
 | publisher= Pacific Northwest National Laboratory
 | date=2007-10-30
 | access-date=2008-12-03
}}</ref> Other countries are rapidly integrating this technology&nbsp;— China started having a comprehensive national WAMS when the past 5-year economic plan was completed in 2012.<ref name=Yang>{{cite book
 | chapter-url=https://www.ewh.ieee.org/cmte/ips/2007GM/2007GM_china_intro.pdf
 | date=2001-06-24
 | doi=10.1109/PES.2007.385835
 | access-date=2008-12-01
 | chapter=WAMS Implementation in China and the Challenges for Bulk Power System Protection
 | title=2007 IEEE Power Engineering Society General Meeting
 | last1=Yang
 | first1=Qixun
 | last2=Bi
 | first2=Tianshu|author2-link=Tianshu Bi
 | last3=Wu
 | first3=Jingtao
 | pages=1–6
 | isbn=1-4244-1296-X
 }}</ref>

The earliest deployments of smart grids include the Italian system ''Telegestore'' (2005), the mesh network of [[Austin, Texas]] (since 2003), and the smart grid in [[Boulder, Colorado]] (2008). See {{slink||Deployments and attempted deployments}} below.

==Features==
A smart grid would allow the power industry to observe and control parts of the system at higher resolution in time and space.<ref name="Introduction to Electric Power Systems">Alexandra Von Meier (2013). Electrical Engineer 137A: Electric Power Systems. Lecture 2:Introduction to Electric Power Systems, Slide 33.</ref> One of the purposes of the smart grid is real time information exchange to make operation as efficient as possible. It would allow management of the grid on all time scales from high-frequency switching devices on a microsecond scale, to wind and solar output variations on a minute scale, to the future effects of the carbon emissions generated by power production on a decade scale.

The smart grid represents the full suite of current and proposed responses to the challenges of electricity supply. Because of the diverse range of factors, there are numerous competing taxonomies and no agreement on a universal definition. Nevertheless, one possible categorization is given here.

=== Reliability ===
The smart grid makes use of technologies such as state estimation,<ref>{{cite journal | url=https://ieeexplore.ieee.org/document/6279588 | doi=10.1109/MSP.2012.2187037 | bibcode=2012ISPM...29...33H | title=State Estimation in Electric Power Grids: Meeting New Challenges Presented by the Requirements of the Future Grid | last1=Huang | first1=Yih-Fang | last2=Werner | first2=Stefan | last3=Huang | first3=Jing | last4=Kashyap | first4=Neelabh | last5=Gupta | first5=Vijay | journal=IEEE Signal Processing Magazine | date=2012 | volume=29 | issue=5 | page=33 }}</ref> that improve [[Power quality#Introduction|fault detection]] and allow [[Power quality#Smart grids and power quality|self-healing]] of the network without the intervention of technicians. This will ensure a more reliable supply of electricity and reduce vulnerability to natural disasters or attacks.

Although multiple routes are touted as a feature of the smart grid, the old grid also featured multiple routes. Initial power lines in the grid were built using a radial model, later connectivity was guaranteed via multiple routes, referred to as a network structure. However, this created a new problem: if the current flow or related effects across the network exceed the limits of any particular network element, it could fail, and the current would be shunted to other network elements, which eventually may fail also, causing a [[domino effect]]. See [[power outage]]. A technique to prevent this is load shedding by [[rolling blackout]] or voltage reduction (brownout).<ref>{{Cite news|url=https://www.wsj.com/articles/chill-chat-eat-the-secret-to-life-without-power-11557240263|title='Chill, Chat, Eat.' The Secret to Life Without Power|last=Ntobela|first=Simthandile|date=2019-05-07|work=Wall Street Journal|access-date=2019-10-09|language=en-US|issn=0099-9660}}</ref><ref>{{Cite web|url=https://www.northjersey.com/story/weather/2019/07/19/power-outages-what-you-need-know-different-types-blackout-brownout/1776173001/|title=Power outages: What you need to know about the different types|last=Torrejon|first=Rodrigo|website=North Jersey|language=en|access-date=2019-10-09}}</ref>

=== Flexibility in network topology ===
Next-generation transmission and distribution infrastructure will be better able to handle possible '''bidirectional energy flows''', allowing for [[distributed generation]] such as from photovoltaic panels on building roofs, but also charging to/from the batteries of electric cars, wind turbines, pumped hydroelectric power, the use of fuel cells, and other sources.

Classic grids were designed for a one-way flow of electricity, but if a local sub-network generates more power than it is consuming, the reverse flow can raise safety and reliability issues.<ref>Tomoiagă, B.; Chindriş, M.; Sumper, A.; Sudria-Andreu, A.; Villafafila-Robles, R. [http://www.mdpi.com/1996-1073/6/3/1439/pdf Pareto Optimal Reconfiguration of Power Distribution Systems Using a Genetic Algorithm Based on NSGA-II.] Energies 2013, 6, 1439-1455.</ref> A smart grid aims to manage these situations.<ref name="bookSG"/>

=== Efficiency ===
Numerous contributions to the overall improvement of the efficiency of energy infrastructure are anticipated from the deployment of smart grid technology, in particular including '''demand-side management''', for example turning off air conditioners during short-term spikes in electricity price,<ref>{{Cite web |title=reducing the voltage when possible on distribution lines |url=https://www.smartgrid.gov/sites/default/files/doc/files/VVO%20Report%20-%20Final.pdf |url-status=dead |archive-url=https://web.archive.org/web/20130627053028/http://www.smartgrid.gov/sites/default/files/doc/files/VVO%20Report%20-%20Final.pdf |archive-date=June 27, 2013 |website=www.smartgrid.gov}}</ref> reducing the voltage when possible on distribution lines through Voltage/VAR Optimization (VVO), eliminating truck-rolls for meter reading, and reducing truck-rolls by improved outage management using data from Advanced Metering Infrastructure systems. The overall effect is less redundancy in transmission and distribution lines, and greater utilization of generators, leading to lower power prices.<ref>{{Cite journal |last1=Ohanu |first1=Chibuike Peter |last2=Rufai |first2=Salihu Ahmed |last3=Oluchi |first3=Ugbe Christiana |date=2024-02-15 |title=A comprehensive review of recent developments in smart grid through renewable energy resources integration |journal=Heliyon |volume=10 |issue=3 |pages=e25705 |doi=10.1016/j.heliyon.2024.e25705 |doi-access=free |pmid=38327483 |pmc=10848019 |bibcode=2024Heliy..1025705O |issn=2405-8440}}</ref>

====Load adjustment/Load balancing====
The total load connected to the power grid can vary significantly over time. Although the total load is the sum of many individual choices of the clients, the overall load is not necessarily stable or slow varying. For example, if a popular television program starts, millions of televisions will start to draw current instantly. Traditionally, to respond to a rapid increase in power consumption, faster than the start-up time of a large generator, some spare generators are put on a dissipative standby mode.{{Citation needed|date=January 2009}} A smart grid may warn all individual television sets, or another larger customer, to reduce the load temporarily<ref name='TCL1'>{{cite journal|title=Safe Protocols for Generating Power Pulses with Heterogeneous Populations of Thermostatically Controlled Loads |author=N. A. Sinitsyn |author2=S. Kundu |author3=S. Backhaus |journal=[[Energy Conversion and Management]]|volume=67 |year=2013 |pages=297–308 |arxiv=1211.0248 |doi=10.1016/j.enconman.2012.11.021|bibcode=2013ECM....67..297S |s2cid=32067734 }}</ref> (to allow time to start up a larger generator) or continuously (in the case of limited resources). Using mathematical prediction algorithms it is possible to predict how many standby generators need to be used, to reach a certain failure rate. In the traditional grid, the failure rate can only be reduced at the cost of more standby generators. In a smart grid, the load reduction by even a small portion of the clients may eliminate the problem.

====Peak curtailment/leveling and time of use pricing====
{{See also|Tod meter|demand response}}
[[File:The case of smart charging.jpg|thumb|500px|Peak load avoidance by [[smart charging]] of electric vehicles]]
To reduce demand during the high-cost peak usage periods, communications and metering technologies inform smart devices in the home and business when energy demand is high and track how much electricity is used and when it is used. It also gives utility companies the ability to reduce consumption by communicating to devices directly in order to prevent system overloads. Examples would be a utility reducing the usage of a group of electric vehicle [[charging station]]s or shifting temperature set points of air conditioners in a city.<ref name="TCL1"/> To motivate them to cut back use and perform what is called '''peak curtailment''' or '''peak leveling''', prices of electricity are increased during high demand periods and decreased during low demand periods.<ref name="bookSG"/> It is thought that consumers and businesses will tend to consume less during high-demand periods if it is possible for consumers and consumer devices to be aware of the high price premium for using electricity at peak periods. This could mean making trade-offs such as cycling on/off air conditioners or running dishwashers at 9&nbsp;pm instead of 5&nbsp;pm. When businesses and consumers see a direct economic benefit of using energy at off-peak times, the theory is that they will include the energy cost of operation into their consumer device and building construction decisions and hence become more energy efficient.

=== Sustainability ===
The improved flexibility of the smart grid permits greater penetration of highly variable renewable energy sources such as [[solar power]] and [[wind power]], even without the addition of [[energy storage]].<ref>{{cite journal |last1=Mahmood |first1=Mou |last2=Chowdhury |first2=Prangon |last3=Yeassin |first3=Rahbaar |last4=Hasan |first4=Mahmudul |last5=Ahmad |first5=Tanvir |last6=Chowdhury |first6=Nahid-Ur-Rahman |title=Impacts of digitalization on smart grids, renewable energy, and demand response: An updated review of current applications |journal=Energy Conversion and Management: X |date=1 October 2024 |volume=24 |issue=100790 |pages=100790 |doi=10.1016/j.ecmx.2024.100790 |doi-access=free }}</ref> Current network infrastructure is not built to allow for many distributed feed-in points, and typically even if some feed-in is allowed at the local (distribution) level, the transmission-level infrastructure cannot accommodate it. Rapid fluctuations in distributed generation, such as due to cloudy or gusty weather, present significant challenges to power engineers who need to ensure stable power levels through varying the output of the more controllable generators such as gas turbines and hydroelectric generators. Smart grid technology is a necessary condition for very large amounts of renewable electricity on the grid for this reason. There is also support for [[vehicle-to-grid]].<ref>{{Cite web |last=International |first=Smart Energy |date=2007-10-15 |title=Smart Grid Environmental Benefits |url=https://www.smart-energy.com/top-stories/smart-grid-environmental-benefits/ |access-date=2024-03-17 |website=Smart Energy International |language=en-ZA}}</ref>

=== Market-enabling ===
The smart grid allows for systematic communication between suppliers (their energy price) and consumers (their willingness-to-pay), and permits both the suppliers and the consumers to be more flexible and sophisticated in their operational strategies. Only the critical loads will need to pay the peak energy prices, and consumers will be able to be more strategic in when they use energy. Generators with greater flexibility will be able to sell energy strategically for maximum profit, whereas inflexible generators such as base-load steam turbines and wind turbines will receive a varying tariff based on the level of demand and the status of the other generators currently operating. The overall effect is a signal that awards energy efficiency, and energy consumption that is sensitive to the time-varying limitations of the supply. At the domestic level, appliances with a degree of energy storage or [[thermal mass]] (such as refrigerators, heat banks, and heat pumps) will be well placed to 'play' the market and seek to minimise energy cost by adapting demand to the lower-cost energy support periods. This is an extension of the dual-tariff energy pricing mentioned above.

====Demand response support====
[[Demand response]] support allows generators and loads to interact in an automated fashion in real-time, coordinating demand to flatten spikes. Eliminating the fraction of demand that occurs in these spikes eliminates the cost of adding reserve generators, cuts [[wear and tear]] and extends the life of equipment, and allows users to cut their energy bills by telling low priority devices to use energy only when it is cheapest.<ref>Energy Future Coalition, "Challenge and Opportunity: Charting a New Energy Future," Appendix A: Working Group Reports, Report of the Smart Grid Working Group. https://web.archive.org/web/20080910051559/http://www.energyfuturecoalition.org/pubs/app_smart_grid.pdf</ref>

Currently, power grid systems have varying degrees of communication within control systems for their high-value assets, such as in generating plants, transmission lines, substations, and major energy users. In general, information flows one way, from the users and the loads they control back to the utilities. The utilities attempt to meet the demand and succeed or fail to varying degrees (brownouts, rolling blackout, uncontrolled blackout). The total amount of power demanded by the users can have a very wide [[probability distribution]] which requires spare generating plants in standby mode to respond to the rapidly changing power usage. This one-way flow of information is expensive; the last 10% of generating capacity may be required as little as 1% of the time, and brownouts and outages can be costly to consumers.

Demand response can be provided by commercial, residential loads, and industrial loads.<ref>{{Cite book |last1=Zhang |first1=Xiao |title=2015 North American Power Symposium (NAPS) |last2=Hug |first2=G. |author-link2=Gabriela Hug |last3=Kolter |first3=Z. |last4=Harjunkoski |first4=I. |date=2015-10-01 |isbn=978-1-4673-7389-0 |pages=1–6 |chapter=Industrial demand response by steel plants with spinning reserve provision |doi=10.1109/NAPS.2015.7335115 |s2cid=12558667}}</ref> For example, Alcoa's Warrick Operation is participating in MISO as a qualified Demand Response Resource,<ref>{{Cite book |last1=Zhang |first1=X. |title=2015 IEEE Power & Energy Society Innovative Smart Grid Technologies Conference (ISGT) |last2=Hug |first2=G. |author-link2=Gabriela Hug |date=2015-02-01 |isbn=978-1-4799-1785-3 |pages=1–5 |chapter=Bidding strategy in energy and spinning reserve markets for aluminum smelters' demand response |doi=10.1109/ISGT.2015.7131854 |s2cid=8139559}}</ref> and the Trimet Aluminium uses its smelter as a short-term mega-battery.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2014-11-26/germanys-trimet-aluminium-turns-smelting-tanks-into-batteries|title=Storing Power in Molten Aluminum Lakes|website=[[Bloomberg News]]|date=26 November 2014 }}</ref>

[[Latency (engineering)|Latency]] of the data flow is a major concern, with some early smart meter architectures allowing actually as long as 24 hours delay in receiving the data, preventing any possible reaction by either supplying or demanding devices.<ref>[http://earth2tech.com/2009/06/05/why-the-smart-grid-wont-have-the-innovations-of-the-internet-any-time-soon/ Why the Smart Grid Won't Have the Innovations of the Internet Any Time Soon: Cleantech News and Analysis «] {{Webarchive|url=https://web.archive.org/web/20200422042404/http://earth2tech.com/2009/06/05/why-the-smart-grid-wont-have-the-innovations-of-the-internet-any-time-soon/ |date=2020-04-22 }}. Earth2tech.com (2009-06-05). Retrieved on 2011-05-14.</ref>

==Technology==
{{See also|Grid energy storage|Battery storage power station|Tesla Megapack}}
The bulk of smart grid technologies are already used in other applications such as manufacturing and telecommunications and are being adapted for use in grid operations.<ref>U.S. Department of Energy, National Energy Technology Laboratory, Modern Grid Initiative, http://www.netl.doe.gov/moderngrid/opportunity/vision_technologies.html  {{webarchive |url=https://web.archive.org/web/20070711165750/http://www.netl.doe.gov/moderngrid/opportunity/vision_technologies.html |date=July 11, 2007 }}</ref>
* Integrated communications: Areas for improvement include: substation automation, demand response, distribution automation, supervisory control, and data acquisition ([[SCADA]]), energy management systems, wireless mesh networks and other technologies, power-line carrier communications, and [[fiber-optics]].<ref name="bookSG"/> Integrated communications will allow for real-time control, information, and data exchange to optimize system reliability, asset utilization, and security.<ref>{{Cite journal |url=https://ieeexplore.ieee.org/document/6033032 |access-date=2024-03-17 |doi=10.1109/MNET.2011.6033032 |arxiv=1107.3313 |last1=Richard Yu |first1=F. |last2=Zhang |first2=Peng |last3=Xiao |first3=Weidong |last4=Choudhury |first4=Paul |title=Communication systems for grid integration of renewable energy resources |journal=IEEE Network |date=2011 |volume=25 |issue=5 |pages=22–29 }}</ref>
* Sensing and measurement: core duties are evaluating congestion and grid stability, monitoring equipment health, energy theft prevention,<ref name="Buevich 95–98">{{Cite book|last1=Buevich|first1=Maxim|last2=Zhang|first2=Xiao|last3=Schnitzer|first3=Dan|last4=Escalada|first4=Tristan|last5=Jacquiau-Chamski|first5=Arthur|last6=Thacker|first6=Jon|last7=Rowe|first7=Anthony|title=Proceedings of the 2nd ACM International Conference on Embedded Systems for Energy-Efficient Built Environments |chapter=Short Paper: Microgrid Losses |date=2015-01-01|series=BuildSys '15|location=New York, NY, USA|pages=95–98|doi=10.1145/2821650.2821676|isbn=9781450339810|s2cid=2742485}}</ref> and control strategies support. Technologies include advanced microprocessor meters ([[smart meter]]) and meter reading equipment, wide-area monitoring systems, (typically based on online readings by [[Distributed temperature sensing]] combined with [[Real time thermal rating]] (RTTR) systems), electromagnetic signature measurement/analysis, time-of-use, and real-time pricing tools, advanced switches and cables, backscatter radio technology, and [[Digital protective relay]]s.
* [[Smart meters]].
* [[Phasor measurement unit]]s. Many in the power systems engineering community believe that the [[Northeast blackout of 2003]] could have been contained to a much smaller area if a wide area phasor measurement network had been in place.<ref name=MazzaInitiative>{{cite journal
 | url=http://fortress.wa.gov/wutc/home/webdocs.nsf/de53b07997d108ea882563b50072c5b3/bc3ced6bb5f4cf29882570200083aaa3/$FILE/Powering%20Up%20Smart%20Grid%20report.doc
 | title=Powering Up the Smart Grid: A Northwest Initiative for Job Creation, Energy Security, and Clean, Affordable Electricity.
 | author=Patrick Mazza
 | format=doc
 | publisher=Climate Solutions
 | date=2005-04-27
 | page=7
 | access-date=2008-12-01
 | journal=
 | archive-date=2008-12-30
 | archive-url=https://web.archive.org/web/20081230133026/http://fortress.wa.gov/wutc/home/webdocs.nsf/de53b07997d108ea882563b50072c5b3/bc3ced6bb5f4cf29882570200083aaa3/$FILE/Powering%20Up%20Smart%20Grid%20report.doc
 | url-status=dead
 }}</ref>
* Distributed power flow control: power flow control devices clamp onto existing transmission lines to control the flow of power within. Transmission lines enabled with such devices support greater use of renewable energy by providing more consistent, real-time control over how that energy is routed within the grid. This technology enables the grid to more effectively store intermittent energy from renewables for later use.<ref>{{cite web |url=http://arpa-e.energy.gov/?q=slick-sheet-project/distributed-power-flow-control |archive-url=https://web.archive.org/web/20140808120513/http://arpa-e.energy.gov/?q=slick-sheet-project%2Fdistributed-power-flow-control |url-status=dead |archive-date=2014-08-08 |title=Smart Wire Grid Distributed Power Flow Control |publisher=arpa-e.energy.gov |access-date=2014-07-25 }}</ref>
* Smart power generation using advanced components: smart power generation is a concept of matching [[electricity generation]] with demand using multiple identical generators which can start, stop and operate efficiently at chosen [[Electrical load|load]], independently of the others, making them suitable for [[Base load power plant|baseload]] and [[Peaking power plant|peaking]] power generation.<ref>{{cite book |year=2011 |title=Smart Power Generation |last1=Klimstra |first1=Jakob |last2=Hotakainen |first2=Markus  |url=http://www.smartpowergeneration.com/pdf/wartsila_spg_book.pdf|publisher=Avain Publishers |location=Helsinki |isbn=9789516928466}}</ref> Matching supply and demand, called [[Load balancing (electrical power)|load balancing]],<ref name="TCL1"/> is essential for a stable and reliable supply of electricity. Short-term deviations in the balance lead to frequency variations and a prolonged mismatch results in [[Power outage|blackouts]]. Operators of [[Electric power transmission|power transmission systems]] a charged with the balancing task, matching the power output of all the [[Electrical generator|generators]] to the load of their [[electrical grid]]. The load balancing task has become much more challenging as increasingly intermittent and variable generators such as wind turbines and [[solar cell]]s are added to the grid, forcing other producers to adapt their output much more frequently than has been required in the past. The first two dynamic grid stability [[power plant]]s utilizing the concept have been ordered by [[Elering]] and will be built by [[Wärtsilä]] in [[Kiisa]], [[Estonia]] ([[Kiisa Power Plant]]). Their purpose is to "provide dynamic generation capacity to meet sudden and unexpected drops in the electricity supply". They are scheduled to be ready during 2013 and 2014, and their total output will be 250 MW.<ref>{{Cite web|url=https://balticbusinessnews.com/?PublicationId=df120449-877c-42ce-a752-9b7bfef6abf6&ref=rss|title=Home|date=March 3, 2024|website=Australian Bloggers}}</ref>
* [[Power system automation]] enables rapid diagnosis of and precise solutions to specific grid disruptions or outages. These technologies rely on and contribute to each of the other four key areas. Three technology categories for advanced control methods are distributed intelligent agents (control systems), analytical tools (software algorithms and high-speed computers), and operational applications (SCADA, substation automation, demand response, etc.). Using [[artificial intelligence]] programming techniques, the [[Fujian]] power grid in China created a wide area protection system that is rapidly able to accurately calculate a control strategy and execute it.<ref>{{cite web
 |url=http://www.nari-relays.com/en/files/Wide%20Area%20Protection%20System%20for%20Stability.pdf
 |archive-url=https://web.archive.org/web/20090318232502/http://www.nari-relays.com/en/files/Wide%20Area%20Protection%20System%20for%20Stability.pdf
 |archive-date=2009-03-18
 | title=Wide Area Protection System for Stability
 | website=Nanjing Nari-Relays Electric Co.
 | date=2008-04-22
 | access-date=2008-12-12
 | page=2
}}{{unreliable source?|reason=this is corporate advertising|date=April 2022}} Examples are given of two events, one stabilizing the system after a fault on a 1 gigawatt HVDC feed, with response timed in milliseconds.</ref> The Voltage Stability Monitoring & Control (VSMC) software uses a sensitivity-based [[successive linear programming]] method to reliably determine the optimal control solution.<ref>{{Cite book
 | publisher= [[IEEE]]
 | date=2007-06-24
 | last1=Zhao
 | first1=Jinquan
 | last2=Huang
 | first2=Wenying
 | last3=Fang
 | first3=Zhaoxiong
 | last4=Chen
 | first4=Feng
 | last5=Li
 | first5=Kewen
 | last6=Deng
 | first6=Yong
 | title=2007 IEEE Power Engineering Society General Meeting
 | chapter=On-Line Voltage Stability Monitoring and Control (VSMC) System in Fujian power grid
 | pages=1–6
 | doi=10.1109/PES.2007.385975
 | isbn=978-1-4244-1296-9
| s2cid=6167525
 }}</ref>

== Research ==

=== Major programs ===
'''''IntelliGrid'''''&nbsp;– Created by the Electric Power Research Institute (EPRI), IntelliGrid architecture provides methodology, tools, and recommendations for standards and technologies for utility use in planning, specifying, and procuring IT-based systems, such as advanced metering, distribution automation, and demand response. The architecture also provides a living laboratory for assessing devices, systems, and technology. Several utilities have applied IntelliGrid architecture including Southern California Edison, Long Island Power Authority, Salt River Project, and TXU Electric Delivery. The IntelliGrid Consortium is a [[public/private partnership]] that integrates and optimizes global research efforts, funds technology R&D, works to integrate technologies, and disseminates technical information.<ref>Electric Power Research Institute, [http://www.epri.com/IntelliGrid/default.asp IntelliGrid Program]</ref>

'''''Grid 2030'''''&nbsp;– Grid 2030 is a joint vision statement for the U.S. electrical system developed by the electric utility industry, equipment manufacturers, information technology providers, federal and state government agencies, interest groups, universities, and national laboratories. It covers generation, transmission, distribution, storage, and end-use.<ref>U.S. Department of Energy, Office of Electric Transmission and Distribution, [http://www.oe.energy.gov/DocumentsandMedia/Elec_Vision_2-9-4.pdf "Grid 2030" A National Vision for Electricity's Second 100 Years] {{Webarchive|url=https://web.archive.org/web/20110721233154/http://www.oe.energy.gov/DocumentsandMedia/Elec_Vision_2-9-4.pdf |date=2011-07-21 }}, July 2003</ref> The National Electric Delivery Technologies Roadmap is the implementation document for the Grid 2030 vision. The Roadmap outlines the key issues and challenges for modernizing the grid and suggests paths that government and industry can take to build America's future electric delivery system.<ref>U.S. Department of Energy, Office of Electric Transmission and Distribution, [http://www.oe.energy.gov/DocumentsandMedia/ER_2-9-4.pdf "National Electric Delivery Technologies Roadmap"] {{Webarchive|url=https://web.archive.org/web/20110721233239/http://www.oe.energy.gov/DocumentsandMedia/ER_2-9-4.pdf |date=2011-07-21 }}</ref>

'''''Modern Grid Initiative (MGI)''''' is a collaborative effort between the U.S. Department of Energy (DOE), the National Energy Technology Laboratory (NETL), utilities, consumers, researchers, and other grid stakeholders to modernize and integrate the U.S. electrical grid. DOE's Office of Electricity Delivery and Energy Reliability (OE) sponsors the initiative, which builds upon Grid 2030 and the National Electricity Delivery Technologies Roadmap and is aligned with other programs such as GridWise and GridWorks.<ref>U.S. Department of Energy, [http://www.netl.doe.gov/moderngrid National Energy Technology Laboratory] {{Webarchive|url=https://web.archive.org/web/20100109100225/http://www.netl.doe.gov/moderngrid/ |date=2010-01-09 }}</ref>

'''''GridWise'''''&nbsp;– A DOE OE program focused on developing information technology to modernize the U.S. electrical grid. Working with the GridWise Alliance, the program invests in communications architecture and standards; simulation and analysis tools; smart technologies; test beds and demonstration projects; and new regulatory, institutional, and market frameworks. The GridWise Alliance is a consortium of public and private electricity sector stakeholders, providing a forum for idea exchanges, cooperative efforts, and meetings with policy makers at federal and state levels.<ref>U.S. Department of Energy, [http://www.electricdistribution.ctc.com/index.htm Office of Electricity Delivery and Energy Reliability] {{webarchive|url=https://web.archive.org/web/20060203180826/http://www.electricdistribution.ctc.com/index.htm |date=2006-02-03 }}; [http://www.electricdistribution.ctc.com/pdfs/GridWise%20Fact%20Sheet%20Jan05.pdf GridWise Program fact sheet] {{Webarchive|url=https://web.archive.org/web/20080910051603/http://www.electricdistribution.ctc.com/pdfs/GridWise%20Fact%20Sheet%20Jan05.pdf |date=2008-09-10 }}; and [http://www.gridwise.org/ GridWise Alliance].</ref>

'''''GridWise Architecture Council (GWAC)''''' was formed by the [[U.S. Department of Energy]] to promote and enable interoperability among the many entities that interact with the nation's electric power system. The GWAC members are a balanced and respected team representing the many constituencies of the electricity supply chain and users. The GWAC provides industry guidance and tools to articulate the goal of interoperability across the electric system, identify the concepts and architectures needed to make interoperability possible, and develop actionable steps to facilitate the inter operation of the systems, devices, and institutions that encompass the nation's electric system. The GridWise Architecture Council Interoperability Context Setting Framework, V 1.1 defines necessary guidelines and principles.<ref>{{Cite web| title=GridWise Interoperability Context-Setting Framework | date=March 2008 | url=http://www.gridwiseac.org/pdfs/interopframework_v1_1.pdf | archive-url=https://web.archive.org/web/20090710224409/http://www.gridwiseac.org:80/pdfs/interopframework_v1_1.pdf | archive-date=2009-07-10}}</ref>

'''''GridWorks'''''&nbsp;– A DOE OE program focused on improving the reliability of the electric system through modernizing key grid components such as cables and conductors, substations and protective systems, and power electronics. The program's focus includes coordinating efforts on high temperature superconducting systems, transmission reliability technologies, electric distribution technologies, energy storage devices, and GridWise systems.<ref>U.S. Department of Energy, Office of Electricity Delivery and Energy Reliability, [https://web.archive.org/web/20070510153226/http://www.oe.energy.gov/randd/gridworks.htm Gridworks]</ref>

'''''Pacific Northwest Smart Grid Demonstration Project.''''' - This project is a demonstration across five Pacific Northwest states-Idaho, Montana, Oregon, Washington, and Wyoming. It involves about 60,000 metered customers, and contains many key functions of the future smart grid.<ref>{{Cite web|url=http://www.pnwsmartgrid.org/|title=薬学部生ぜんぴーの病理・薬学解説ブログ|date=September 4, 2019|website=薬学部生ぜんぴーの病理・薬学解説ブログ}}</ref>

'''''Solar Cities''''' - In Australia, the Solar Cities programme included close collaboration with energy companies to trial smart meters, peak and off-peak pricing, remote switching and related efforts. It also provided some limited funding for grid upgrades.<ref>[http://www.climatechange.gov.au/energy-efficiency/solar-cities Australia Department of the Environment Solar Cities Programme]</ref>

'''''[[Smart Grid Energy Research Center]] (SMERC)''''' - Located at [[UCLA Henry Samueli School of Engineering and Applied Science#Research centers|University of California, Los Angeles]] dedicated its efforts to large-scale testing of its smart EV charging network technology. It created another platform for bidirectional flow of information between a utility and consumer end-devices. SMERC also developed a demand response (DR) test bed that comprises a Control Center, Demand Response Automation Server (DRAS), Home-Area-Network (HAN), Battery Energy Storage System (BESS), and photovoltaic (PV) panels. These technologies are installed within the Los Angeles Department of Water and Power and Southern California Edison territory as a network of EV chargers, battery energy storage systems, solar panels, DC fast charger, and Vehicle-to-Grid (V2G) units. These platforms, communications and control networks enables UCLA-led projects within the area to be tested in partnership with two local utilities, SCE and LADWP.<ref>[[Smart Grid Energy Research Center]]{{Circular reference|date=November 2017}}</ref>

'''''Smart Quart''' -'' In Germany, the Smart Quart project develops three smart districts to develop, test and showcase technology to operate smart grids. The project is a collaboration of [[E.ON]], [[Viessmann]], gridX and hydrogenious together with the [[RWTH Aachen University]]. It is planned that by the end of 2024 all three districts are supplied with locally generated energy and are largely independent of [[fossil energy]] sources.<ref>{{Cite web|title=SmartQuart|url=https://smartquart.energy/english-abstract/|access-date=2021-02-08|website=SmartQuart|language=de-DE}}</ref>

'''''Smart5Grid''''' – In Portugal, aims to ensure that operators in the energy sector take advantage of the benefits associated with the use of [[5G]] networks. With [[Reliability engineering|reliability]] and security, a solution is proposed to precisely address the specific requirements imposed by Smart Grids, such as high data transfer rates and real-time monitoring.<ref>{{Cite web |title=Home – Smart5Grid |url=https://smart5grid.org/en/ |access-date=2024-05-22 |language=en-US}}</ref>

=== Smart grid modelling ===
Many different concepts have been used to model intelligent power grids. They are generally studied within the framework of [[complex systems]]. In a recent brainstorming session,<ref>{{cite arXiv|eprint=0907.2221|author1=Paul Bourgine|author2=David Chavalarias|author3=Edith Perrier|author4=Frederic Amblard|author5=Francois Arlabosse|author6=Pierre Auger|author7=Jean-Bernard Baillon|author8=Olivier Barreteau|author9=Pierre Baudot|title=French Roadmap for complex Systems 2008–2009|class=nlin.AO|year=2009}}</ref> the power grid was considered within the context of [[optimal control]], [[ecology]], human cognition, glassy dynamics, [[information theory]], microphysics of [[clouds]], and many others. Here is a selection of the types of analyses that have appeared in recent years.

;Protection systems that verify and supervise themselves
Pelqim Spahiu and Ian R. Evans in their study introduced the concept of a substation based smart protection and hybrid Inspection Unit.<ref>{{Cite book |doi = 10.1109/ISGTEurope.2011.6162614|chapter = Protection Systems that verify and supervise themselves|title = 2011 2nd IEEE PES International Conference and Exhibition on Innovative Smart Grid Technologies|pages = 1–4|year = 2011|last1 = Spahiu|first1 = Pelqim|last2 = Evans|first2 = Ian R.|isbn = 978-1-4577-1421-4|s2cid = 21647584}}</ref><ref>{{Cite book |doi = 10.1049/cp.2010.0263|chapter = IED based protection & control equipment with non-standard primary system arrangements - an approach to application|title = 10th IET International Conference on Developments in Power System Protection (DPSP 2010). Managing the Change|pages = 141|year = 2010|last1 = Spahiu|first1 = P.|last2 = Uppal|first2 = N.|isbn = 978-1-84919-212-5}}</ref>

;Kuramoto oscillators
The [[Kuramoto model]] is a well-studied system. The power grid has been described in this context as well.<ref name="ReferenceA">{{cite journal|arxiv=0705.1305|author1=Giovanni Filatrella|author2=Arne Hejde Nielsen|author3=Niels Falsig Pedersen|doi=10.1140/epjb/e2008-00098-8|year=2008|title=Analysis of a power grid using the Kuramoto-like model|pages=485–491|issue=4|volume=61|journal=European Physical Journal B|bibcode=2008EPJB...61..485F|s2cid=18383765}}</ref><ref>{{cite arXiv|eprint=0910.5673|author1=Florian Dorfler|author2=Francesco Bullo|title=Synchronization and Transient Stability in Power Networks and Non-Uniform Kuramoto Oscillators|class=math.OC|year=2009}}</ref> The goal is to keep the system in balance, or to maintain [[phase synchronization]] (also known as phase locking). Non-uniform oscillators also help to model different technologies, different types of power generators, patterns of consumption, and so on. The model has also been used to describe the synchronization patterns in the blinking of fireflies.<ref name="ReferenceA"/>

;Smart Grid Communication Network
[[Network Simulator]]s are used to simulate/emulate network communication effects. This typically involves setting up a lab with the smart grid devices, applications etc. with the virtual network being provided by the network simulator.<ref>{{Cite journal|last1=Montazerolghaem|first1=A.|last2=Yaghmaee|first2=M. H.|last3=Leon-Garcia|first3=A.|date=2017|title=OpenAMI: Software-Defined AMI Load Balancing|journal=IEEE Internet of Things Journal|volume=PP|issue=99|pages=206–218|doi=10.1109/jiot.2017.2778006|s2cid=46747824}}</ref><ref>{{Cite journal|last1=Montazerolghaem|first1=Ahmadreza|last2=Yaghmaee|first2=Mohammad Hossein|date=2021|title=Demand Response Application as a Service: An SDN-based Management Framework|journal=IEEE Transactions on Smart Grid|volume=13 |issue=3 |pages=1952–1966|doi=10.1109/TSG.2021.3139004|s2cid=245557930|issn=1949-3053|doi-access=free}}</ref>

;Neural networks
[[Neural network]]s have been considered for power grid management as well. Electric power systems can be classified in multiple different ways: non-linear, dynamic, discrete, or random. Artificial Neural Networks (ANNs) attempt to solve the most difficult of these problems, the non-linear problems.
;<small>Demand Forecasting</small>
One application of ANNs is in demand forecasting. In order for grids to operate economically and reliably, demand forecasting is essential, because it is used to predict the amount of power that will be consumed by the load. This is dependent on weather conditions, type of day, random events, incidents, etc. For non-linear loads though, the load profile isn't smooth and as predictable, resulting in higher uncertainty and less accuracy using the traditional Artificial Intelligence models. Some factors that ANNs consider when developing these sorts of models: classification of load profiles of different customer classes based on the consumption of electricity, increased responsiveness of demand to predict real time electricity prices as compared to conventional grids, the need to input past demand as different components, such as peak load, base load, valley load, average load, etc. instead of joining them into a single input, and lastly, the dependence of the type on specific input variables. An example of the last case would be given the type of day, whether its weekday or weekend, that wouldn't have much of an effect on Hospital grids, but it'd be a big factor in resident housing grids' load profile.<ref>{{cite arXiv|arxiv=q-bio/0612045|author1=Werbos|title=Using Adaptive Dynamic Programming to Understand and Replicate Brain Intelligence: the Next Level Design |year=2006}}</ref><ref>{{cite journal |author1=Claire Christensen |author2=Reka Albert |title=Using graph concepts to understand the organization of complex systems |year=2006 |arxiv=q-bio/0609036|  doi=10.1142/S021812740701835X |volume=17 |issue=7 |journal=International Journal of Bifurcation and Chaos |pages=2201–2214 |bibcode=2007IJBC...17.2201C|s2cid=9741805 }}</ref><ref>{{cite journal|author1=Vito Latora|author2=Massimo Marchiori |doi=10.1140/epjb/e2003-00095-5|title=Economic Small-World Behavior in Weighted Networks|year=2002|journal=European Physical Journal B|volume=32|issue=2|pages=249–263|arxiv=cond-mat/0204089|bibcode=2003EPJB...32..249L|s2cid=15430987 }}</ref><ref>{{cite arXiv|eprint=cond-mat/0205649|author1=Vito Latora|author2=Massimo Marchiori|title=The Architecture of Complex Systems|year=2002}}</ref><ref>{{cite web|last1=Balantrapu|first1=Satish|title=Artificial Neural Networks in Microgrid|url=http://www.energycentral.com/gridtandd/gridoperations/articles/2355/Role-of-Artificial-Neural-Networks-in-Microgrid/|website=Energy Central|access-date=8 December 2015|date=November 2, 2010|archive-date=10 December 2015|archive-url=https://web.archive.org/web/20151210202338/http://www.energycentral.com/gridtandd/gridoperations/articles/2355/Role-of-Artificial-Neural-Networks-in-Microgrid/|url-status=dead}}</ref>

;Markov processes
As [[wind power]] continues to gain popularity, it becomes a necessary ingredient in realistic power grid studies. Off-line storage, wind variability, supply, demand, pricing, and other factors can be modelled as a mathematical game. Here the goal is to develop a winning strategy. [[Markov process]]es have been used to model and study this type of system.<ref>{{cite book |arxiv=1008.3932 |author1=Miao He |author2=Sugumar Murugesan |author3=Junshan Zhang |title=2011 Proceedings IEEE INFOCOM |chapter=Multiple timescale dispatch and scheduling for stochastic reliability in smart grids with wind generation integration |year=2011 |doi=10.1109/INFCOM.2011.5935204 |pages=461–465 |isbn=978-1-4244-9919-9|bibcode=2010arXiv1008.3932H |s2cid=16846822 }}</ref>

==Economics==

===Market outlook===
In 2009, the US smart grid industry was valued at about $21.4 billion – by 2014, it will exceed at least $42.8 billion. Given the success of the smart grids in the U.S., the world market is expected to grow at a faster rate, surging from $69.3 billion in 2009 to $171.4 billion by 2014. With the segments set to benefit the most will be smart metering hardware sellers and makers of software used to transmit and organize the massive amount of data collected by meters.<ref>{{cite web |url =http://www.smartgridnews.com/artman/publish/Business_Markets_Pricing_News/Report-Smart-Grid-Market-Could-Double-in-Four-Years-1662.html |title =Report: Smart Grid Market Could Double in Four Years |work =Zpryme Smart Grid Market |access-date =2009-12-22 |archive-date =2014-09-06 |archive-url =https://web.archive.org/web/20140906184240/http://www.smartgridnews.com/artman/publish/Business_Markets_Pricing_News/Report-Smart-Grid-Market-Could-Double-in-Four-Years-1662.html |url-status =dead }}</ref>

A 2011 study from the [[Electric Power Research Institute]] concludes that investment in a U.S. smart grid will cost up to $476 billion over 20 years but will provide up to $2 trillion in customer benefits over that time.<ref>{{cite news |url =https://www.reuters.com/article/us-utilities-smartgrid-epri/u-s-smart-grid-to-cost-billions-save-trillions-idUSTRE74N7O420110524 |title= U.S. smart grid to cost billions, save trillions|date=2011-05-24|newspaper= Reuters}}</ref> In 2015, the [[World Economic Forum]] reported a transformational investment of more than $7.6 trillion by members of the [[OECD]] is needed over the next 25 years (or $300 billion per year) to modernize, expand, and decentralize the electricity infrastructure with technical innovation as key to the transformation.<ref>{{cite web |url =http://www.pddnet.com/news/2015/01/future-electricity-report-calls-huge-investments?et_cid=4378943&et_rid=652334766&type=cta |title =Future of Electricity Report Calls for Huge Investments |date =2015-01-23 |access-date =2015-01-24 |archive-date =2016-03-04 |archive-url =https://web.archive.org/web/20160304053200/http://www.pddnet.com/news/2015/01/future-electricity-report-calls-huge-investments?et_cid=4378943&et_rid=652334766&type=cta |url-status =dead }}</ref> A 2019 study from [[International Energy Agency]] estimates that the current (depreciated) value of the US electric grid is more than USD 1 trillion. The total cost of replacing it with a smart grid is estimated to be more than USD 4 trillion. If smart grids are deployed fully across the US, the country expects to save USD 130 billion annually.<ref>{{cite web|url=https://redfieldreport.com/2019/03/19/2018-2023-smart-grid-network-market-current-scenario-major-applications-product-type-key-players-regions/ |title=2018-2023 Smart Grid Network Market Current Scenario - Major Applications, Product Type, Key Players & Regions|date=2019-03-19}}</ref>

===General economics developments===
As customers can choose their electricity suppliers, depending on their different tariff methods, the focus of transportation costs will be increased. Reduction of maintenance and replacements costs will stimulate more advanced control.

A smart grid precisely limits electrical power down to the residential level, network small-scale [[distributed energy]] generation and storage devices, communicate information on operating status and needs, collect information on prices and grid conditions, and move the grid beyond central control to a collaborative network.<ref name=MazzaRevolution>{{cite web
 | author=Patrick Mazza
 | website= Climate Solutions
 | date=2004-05-21
 | page=2
 | access-date=2008-12-05
 | url=http://climatesolutions.org/sites/default/files/uploads/smart-energy-network.pdf
 |title=The Smart Energy Network: Electricity's Third Great Revolution
}}</ref> <!-- This table looks like sales pitch pablum- should be nuked or cleaned of the bromides, the vague and the vacuous.
 Table 1<ref>Global Environment Fund, Center for Smart Energy, "The Emerging Smart Grid: Investment and Entrepreneurial Potential in the Electric Power Grid of the Future," October 2005. http://www.globalenvironmentfund.com/GEF%20white%20paper_Electric%20Power%20Grid.pdf</ref> provides a summary comparison of today's grid with a 21st century smart grid of the Future.

'''Table 1 – Smart grid of the Future'''
{| class="wikitable"
|-
! 20th century Grid
! 21st century Grid
|-
| Electromechanical
| Digital
|-
| One-way communications (if any)
| Two-way communications
|-
| Built for centralized generation
| Accommodates distributed generation
|-
| Radial topology
| Network topology
|-
| Few sensors
| Monitors and sensors throughout
|-
| "Blind"
| Self-monitoring
|-
| Manual restoration
| Semi-automated restoration and, eventually, self-healing
|-
| Prone to failures and blackouts
| Adaptive protection and islanding
|-
| Check equipment manually
| Monitor equipment remotely
|-
| Emergency decisions by committee and phone
| Decision support systems, predictive reliability
|-
| Limited control over power flows
| Pervasive control systems
|-
| Limited price information
| Full price information
|-
| Few customer choices
| Many customer choices
|} -->

====US and UK savings estimates and concerns====

A 2003 [[United States Department of Energy]] study calculated that internal modernization of US grids with smart grid capabilities would save between 46 and 117 billion dollars over the next 20 years if implemented within a few years of the study.<ref name=Kannberg>{{cite arXiv
 | eprint=nlin/0409035
 | title=GridWise: The Benefits of a Transformed Energy System
 | author=L. D. Kannberg
 | author2=M. C. Kintner-Meyer |author3=D. P. Chassin |author4=R. G. Pratt |author5=J. G. DeSteese |author6=L. A. Schienbein |author7=S. G. Hauser |author8=W. M. Warwick
 | page=25
 | date=November 2003}}</ref> As well as these industrial modernization benefits, smart grid features could expand energy efficiency beyond the grid into the home by coordinating low priority home devices such as water heaters so that their use of power takes advantage of the most desirable energy sources. Smart grids can also coordinate the production of power from large numbers of small power producers such as owners of rooftop solar panels&nbsp;— an arrangement that would otherwise prove problematic for power systems operators at local utilities.

One important question is whether consumers will act in response to market signals. The U.S. Department of Energy (DOE) as part of the [https://www.smartgrid.gov/ American Recovery and Reinvestment Act Smart Grid Investment Grant and Demonstrations Program] funded special [https://www.smartgrid.gov/recovery_act/consumer_behavior_studies consumer behavior studies to examine the acceptance, retention, and response of consumers subscribed to time-based utility rate programs] {{Webarchive|url=https://web.archive.org/web/20150318093434/https://www.smartgrid.gov/recovery_act/consumer_behavior_studies |date=2015-03-18 }} that involve advanced metering infrastructure and customer systems such as in-home displays and programmable communicating thermostats.

Another concern is that the cost of telecommunications to fully support smart grids may be prohibitive. A less expensive communication mechanism is proposed{{Citation needed|date=September 2011}} using a form of "[[Dynamic demand (electric power)|dynamic demand management]]" where devices shave peaks by shifting their loads in reaction to grid frequency. Grid frequency could be used to communicate load information without the need of an additional telecommunication network, but it would not support economic bargaining or quantification of contributions.

Although there are specific and proven smart grid technologies in use, ''smart grid'' is an aggregate term for a set of related technologies on which a [[specification]] is generally agreed, rather than a name for a specific technology. Some of the benefits of such a modernized electricity network include the ability to reduce power consumption at the consumer side during peak hours, called [[demand side management]]; enabling [[grid connection]] of [[distributed generation]] power (with [[photovoltaic array]]s, [[small wind turbine]]s, [[micro hydro]], or even [[combined heat power]] generators in buildings); incorporating [[grid energy storage]] for distributed generation load balancing; and eliminating or containing failures such as widespread power grid [[cascading failure]]s. The increased efficiency and reliability of the smart grid is expected to save consumers money and help reduce {{CO2}} emissions.<ref>[http://www.speaksolar.org/forums/content.php/137-Smart-Grid-and-Renewable-Energy-Monitoring-Systems "Smart Grid and Renewable Energy Monitoring Systems"] {{Webarchive|url=https://web.archive.org/web/20120320154915/http://www.speaksolar.org/forums/content.php/137-Smart-Grid-and-Renewable-Energy-Monitoring-Systems |date=2012-03-20 }}, ''SpeakSolar.org'', 3 September 2010</ref>

==Oppositions and concerns==

Most opposition and concerns have centered on smart meters and the items (such as remote control, remote disconnect, and variable rate pricing) enabled by them. Where opposition to smart meters is encountered, they are often marketed as "smart grid" which connects smart grid to smart meters in the eyes of opponents. Specific points of opposition or concern include:
* consumer concerns over [[privacy]], e.g. use of usage data by law enforcement
* social concerns over "fair" availability of electricity
* concern that complex rate systems (e.g. variable rates) remove clarity and [[accountability]], allowing the supplier to take advantage of the customer
* concern over remotely controllable "[[kill switch]]" incorporated into most smart meters
* social concerns over [[Enron]] style abuses of [[information leverage]]
* concerns over giving the government mechanisms to control the use of all power using activities
* concerns over [[RF emissions]] from smart meters

===Security===

While modernization of electrical grids into smart grids allows for optimization of everyday processes, a smart grid, being online, can be vulnerable to cyberattacks.<ref name=":0">{{Cite web|url=https://fas.org/sgp/crs/misc/R43989.pdf|title=Cybersecurity Issues for the Bulk Power System|last=Campbell|first=Richard|date=10 June 2015|website=Congressional Research Service|archive-url=https://web.archive.org/web/20150628192830/http://www.fas.org/sgp/crs/misc/R43989.pdf|archive-date=2015-06-28|url-status=dead|access-date=17 October 2017}}</ref><ref>Demertzis K., Iliadis L. (2018) A Computational Intelligence System Identifying Cyber-Attacks on Smart Energy Grids. In: Daras N., Rassias T. (eds) Modern Discrete Mathematics and Analysis. Springer Optimization and Its Applications, vol 131. Springer, Cham</ref><ref name=":1">{{Cite book |last1=Perdigão |first1=Dylan |last2=Cruz |first2=Tiago |last3=Simões |first3=Paulo |last4=Abreu |first4=Pedro Henriques |chapter=Data-Centric Federated Learning for Anomaly Detection in Smart Grids and Other Industrial Control Systems |date=2024-05-06 |title=NOMS 2024-2024 IEEE Network Operations and Management Symposium |chapter-url=https://ieeexplore.ieee.org/document/10574962 |publisher=IEEE |pages=1–5 |doi=10.1109/NOMS59830.2024.10574962 |isbn=979-8-3503-2793-9}}</ref> Transformers which increase the voltage of electricity created at power plants for long-distance travel, transmission lines themselves, and distribution lines which deliver the electricity to its consumers are particularly susceptible.<ref name=":12">{{Cite web|url=https://transportation.house.gov/uploadedfiles/2016-04-14-ed_ssm.pdf|archive-url=https://web.archive.org/web/20160907024253/http://transportation.house.gov/uploadedfiles/2016-04-14-ed_ssm.pdf|url-status=dead|archive-date=September 7, 2016|title=Subcommittee Hearing on "Blackout! Are We Prepared to Manage the Aftermath of a Cyber-Attack or Other Failure of the Electrical Grid?"|date=8 April 2016|website=U.S. House of Representatives|access-date=17 October 2017}}</ref> These systems rely on sensors which gather information from the field and then deliver it to control centers, where algorithms automate analysis and decision-making processes. These decisions are sent back to the field, where existing equipment execute them.<ref name=":52">{{Cite journal|last=Siddharth|first=Sridhar|date=January 2012|title=Cyber-Physical System Security for the Electric Power Grid|journal=Proceedings of the IEEE|volume=100|pages=210–224|doi=10.1109/JPROC.2011.2165269|s2cid=2141030}}</ref> Hackers have the potential to disrupt these automated control systems, severing the channels which allow generated electricity to be utilized.<ref name=":12" /> This is called a denial of service or DoS attack. They can also launch integrity attacks which corrupt information being transmitted along the system as well as desynchronization attacks which affect when such information is delivered to the appropriate location.<ref name=":52"/> Additionally, intruders can gain access via renewable energy generation systems and smart meters connected to the grid, taking advantage of more specialized weaknesses or ones whose security has not been prioritized. Because a smart grid has a large number of access points, like smart meters, defending all of its weak points can prove difficult.<ref name=":0" />

There is also concern on the security of the infrastructure, primarily that involving communications technology. Concerns chiefly center around the communications technology at the heart of the smart grid. Designed to allow real-time contact between utilities and meters in customers' homes and businesses, there is a risk that these capabilities could be exploited for criminal or even terrorist actions.<ref name="bookSG" /> One of the key capabilities of this connectivity is the ability to remotely switch off power supplies, enabling utilities to quickly and easily cease or modify supplies to customers who default on payment. This is undoubtedly a massive boon for energy providers, but also raises some significant security issues.<ref>{{cite web|title=U.S. Infrastructure: Smart Grid|url=http://www.cfr.org/united-states/us-infrastructure-smart-grid-security/p26842|work=Renewing America|publisher=Council on Foreign Relations|access-date=20 January 2012|date=16 December 2011|archive-date=4 January 2012|archive-url=https://web.archive.org/web/20120104044739/http://www.cfr.org/united-states/us-infrastructure-smart-grid-security/p26842|url-status=dead}}</ref> Cybercriminals have infiltrated the U.S. electric grid before on numerous occasions.<ref>{{cite news|last=Gorman|first=Siobahn|title=Electricity Grid in U.S. Penetrated by Spies|url=https://www.wsj.com/articles/SB123914805204099085|access-date=20 January 2012|newspaper=Wall Street Journal|date=6 April 2008}}</ref> Aside from computer infiltration, there are also concerns that computer [[malware]] like [[Stuxnet]], which targeted SCADA systems which are widely used in industry, could be used to attack a smart grid network.<ref>{{Cite book |chapter-url=https://ieeexplore.ieee.org/document/7175721 |access-date=2024-03-17 |doi=10.1109/ccis.2014.7175721 |chapter=Research on the analytic factor neuron model based on cloud generator and its application in oil&gas SCADA security defense |title=2014 IEEE 3rd International Conference on Cloud Computing and Intelligence Systems |date=2014 |last1=Yong Qin |last2=Cao |first2=Xiedong |last3=Peng Liang |last4=Qichao Hu |last5=Weiwei Zhang |pages=155–159 |isbn=978-1-4799-4720-1 }}</ref>

Electricity theft is a concern in the U.S. where the smart meters being deployed use RF technology to communicate with the electricity transmission network.{{citation needed|date=October 2013}} People with knowledge of electronics can devise interference devices to cause the smart meter to report lower than actual usage.{{citation needed|date=October 2013}} Similarly, the same technology can be employed to make it appear that the energy the consumer is using is being used by another customer, increasing their bill.{{citation needed|date=December 2012}}

The damage from a well-executed, sizable cyberattack could be extensive and long-lasting. One incapacitated substation could take from nine days to over a year to repair, depending on the nature of the attack. It can also cause an hours-long outage in a small radius. It could have an immediate effect on transportation infrastructure, as traffic lights and other routing mechanisms as well as ventilation equipment for underground roadways is reliant on electricity.<ref name=":2">{{Cite web|url=https://info.publicintelligence.net/DHS-ElectricPowerResiliency.pdf|title=Sector Resilience Report: Electric Power Delivery|date=11 June 2014|access-date=17 October 2017}}</ref> Additionally, infrastructure which relies on the electric grid, including wastewater treatment facilities, the information technology sector, and communications systems could be impacted.<ref name=":2" />

The [[December 2015 Ukraine power grid cyberattack]], the first recorded of its kind, disrupted services to nearly a quarter of a million people by bringing substations offline.<ref>{{Cite web|url=https://ics.sans.org/media/E-ISAC_SANS_Ukraine_DUC_5.pdf|title=Analysis of the Cyber Attack on the Ukrainian Power Grid|date=18 March 2016|access-date=17 October 2017}}</ref><ref name=":4">{{Cite web|url=https://www.cfr.org/report/cyberattack-us-power-grid|title=A Cyberattack on the U.S. Power Grid|last=Knake|first=Robert|website=Council on Foreign Relations|language=en|access-date=2017-10-22}}</ref> The Council on Foreign Relations has noted that states are most likely to be the perpetrators of such an attack as they have access to the resources to carry one out despite the high level of difficulty of doing so. Cyber intrusions can be used as portions of a larger offensive, military or otherwise.<ref name=":4" /> Some security experts warn that this type of event is easily scalable to grids elsewhere.<ref>{{Cite magazine|url=https://www.wired.com/story/crash-override-malware/|title='Crash Override': The Malware That Took Down a Power Grid|magazine=WIRED|access-date=2017-10-19|language=en}}</ref> Insurance company Lloyd's of London has already modeled the outcome of a cyberattack on the [[Eastern Interconnection]], which has the potential to impact 15 states, put 93 million people in the dark, and cost the country's economy anywhere from $243 billion to $1 trillion in various damages.<ref>{{Cite web|url=https://www.lloyds.com/news-and-insight/press-centre/press-releases/2015/07/business-blackout|title=New Lloyd's study highlights wide ranging implications of cyber attacks|date=8 July 2015|website=www.lloyds.com|access-date=2017-10-22}}{{Dead link|date=October 2022 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

According to the U.S. House of Representatives Subcommittee on Economic Development, Public Buildings, and Emergency Management, the electric grid has already seen a sizable number of cyber intrusions, with two in every five aiming to incapacitate it.<ref name=":12" /> As such, the U.S. Department of Energy has prioritized research and development to decrease the electric grid's vulnerability to cyberattacks, citing them as an "imminent danger" in its 2017 Quadrennial Energy Review.<ref name=":3">{{Cite web|url=https://www.energy.gov/sites/prod/files/2017/02/f34/Quadrennial%20Energy%20Review--Second%20Installment%20%28Full%20Report%29.pdf|title=Transforming the Nation's Electricity System: The Second Installment of the Quadrennial Energy Review|date=January 2017|access-date=25 September 2017}}</ref> The Department of Energy has also identified both attack resistance and self-healing as major keys to ensuring that today's smart grid is future-proof.<ref name=":52"/> While there are regulations already in place, namely the Critical Infrastructure Protection Standards introduced by the North America Electric Reliability Council, a significant number of them are suggestions rather than mandates.<ref name=":4" /> Most electricity generation, transmission, and distribution facilities and equipment are owned by private stakeholders, further complicating the task of assessing adherence to such standards.<ref name=":3" /> Additionally, even if utilities want to fully comply, they may find that it is too expensive to do so.<ref name=":4" />

Some experts argue that the first step to increasing the cyber defenses of the smart electric grid is completing a comprehensive risk analysis of existing infrastructure, including research of software, hardware, and communication processes. Additionally, as intrusions themselves can provide valuable information, it could be useful to analyze system logs and other records of their nature and timing. Common weaknesses already identified using such methods by the Department of Homeland Security include poor code quality, improper authentication, and weak firewall rules. Once this step is completed, some suggest that it makes sense to then complete an analysis of the potential consequences of the aforementioned failures or shortcomings. This includes both immediate consequences as well as second- and third-order cascading effects on parallel systems. Finally, risk mitigation solutions, which may include simple remediation of infrastructure inadequacies or novel strategies, can be deployed to address the situation. Some such measures include recoding of control system algorithms to make them more able to resist and recover from cyberattacks or preventive techniques that allow more efficient detection of unusual or unauthorized changes to data. Strategies to account for human error which can compromise systems include educating those who work in the field to be wary of strange USB drives, which can introduce malware if inserted, even if just to check their contents.<ref name=":52" />

Other solutions include utilizing transmission substations, constrained SCADA networks, policy based [[data sharing]], and attestation for constrained smart meters.

Transmission substations utilize one-time signature authentication technologies and one-way hash chain constructs. These constraints have since been remedied with the creation of a fast-signing and verification technology and buffering-free data processing.<ref name="researchgate.net">Khurana, Himanshu. [[Deborah Frincke|Frincke, Deborah]]. Liu, Ning. Hadley, Mark. https://www.researchgate.net/profile/Ning_Lu4/publication/224110557_Smart-Grid_Security_Issues/links/0f31752dab2b75c231000000.pdf . Web. Accessed on April 8th, 2017.</ref>

A similar solution has been constructed for constrained SCADA networks. This involves applying a Hash-Based Message Authentication Code to byte streams, converting the random-error detection available on legacy systems to a mechanism that guarantees data authenticity.<ref name="researchgate.net"/>

Policy-based data sharing utilizes GPS-clock-synchronized-fine-grain power grid measurements to provide increased grid stability and reliability. It does this through synchro-phasor requirements that are gathered by PMUs.<ref name="researchgate.net"/>

Attestation for constrained smart meters faces a slightly different challenge, however. One of the biggest issues with attestation for constrained smart meters is that in order to prevent energy theft, and similar attacks, cyber security providers have to make sure that the devices' software is authentic. To combat this problem, an architecture for constrained smart networks has been created and implemented at a low level in the embedded system.<ref name="researchgate.net"/>

The protection system of a smart grid provides grid reliability analysis, failure protection, and security and privacy protection services. While the additional communication infrastructure of a smart grid provides additional protective and security mechanisms, it also presents a risk of external attack and internal failures. In a report on cyber security of smart grid technology first produced in 2010, and later updated in 2014, the US [[National Institute of Standards and Technology]] pointed out that the ability to collect more data about energy use from customer [[smart meter]]s also raises major privacy concerns, since the information stored at the meter, which is potentially vulnerable to [[data breach]]es, can be mined for personal details about customers.<ref>{{Cite web |date=2012-12-14 |title=Who's Watching? Privacy Concerns Persist as Smart Meters Roll Out |url=https://www.nationalgeographic.com/science/article/121212-smart-meter-privacy |access-date=2024-03-17 |website=Science |language=en}}</ref>

==Other challenges to adoption==
Before a utility installs an advanced metering system, or any type of [[smart system]], it must make a business case for the investment. Some components, like the [[power system stabilizer]]s (PSS){{clarify|date=October 2011}} <!-- is this also called a Phasor measurement units? If so we should use that instead as it's mentioned in the Technology section ~Turb0chrg {no, these are devices installed locally on generators; they are not PMUs}--> installed on generators are very expensive, require complex integration in the grid's control system, are needed only during emergencies, and are only effective if other suppliers on the network have them. Without any incentive to install them, power suppliers don't.<ref name=Alvarado>{{cite journal
 | url=https://www.ewh.ieee.org/cmte/ips/2007GM/2007GM_china_intro.pdf
 | title=Transmission System Operation and Interconnection
 | journal= National Transmission Grid Study
 | author=Fernando Alvarado |author2=Shmuel Oren
 | date=May 2002
 | page=25
 | access-date=2008-12-01
}}</ref> Most utilities find it difficult to justify installing a communications infrastructure for a single application (e.g. meter reading). Because of this, a utility must typically identify several applications that will use the same communications infrastructure – for example, reading a meter, monitoring power quality, remote connection and disconnection of customers, enabling demand response, etc. Ideally, the communications infrastructure will not only support near-term applications, but unanticipated applications that will arise in the future. Regulatory or legislative actions can also drive utilities to implement pieces of a smart grid puzzle. Each utility has a unique set of business, regulatory, and legislative drivers that guide its investments. This means that each utility will take a different path to creating their smart grid and that different utilities will create smart grids at different adoption rates.{{citation needed|date=December 2012}}

Some features of smart grids draw opposition from industries that currently are, or hope to provide similar services. An example is competition with cable and DSL Internet providers from [[Power line communication|broadband over powerline internet access]]. Providers of SCADA control systems for grids have intentionally designed proprietary hardware, protocols and software so that they cannot inter-operate with other systems in order to tie its customers to the vendor.<ref name=Carlson>{{cite journal
 | url=http://www.sandia.gov/scada/documents/020729.pdf
 | title=Sandia SCADA Program High-Security SCADA LDRD Final Report
 | journal= National Transmission Grid Study
 | author=Rolf Carlson
 | date=April 2002
 | page=15
 | access-date=2008-12-06
}}</ref>

The incorporation of digital communications and computer infrastructure with the grid's existing physical infrastructure poses challenges and inherent vulnerabilities. According to ''IEEE Security and Privacy Magazine'', the smart grid will require that people develop and use large computer and communication infrastructure that supports a greater degree of situational awareness and that allows for more specific command and control operations. This process is necessary to support major systems such as demand-response wide-area measurement and control, storage and transportation of electricity, and the automation of electric distribution.<ref>{{cite journal|last1=Khurana|first1=H.|last2=Hadley|first2=M.|author3=Ning Lu|author3-link=Ning Lu|last4=Frincke|first4=D. A.|author4-link= Deborah Frincke |title=Smart-grid security issues|journal=IEEE Security & Privacy Magazine|date=January 2010|volume=8|issue=1|pages=81–85|doi=10.1109/MSP.2010.49|s2cid=1218073}}</ref>

===Power Theft / Power Loss===
Various "smart grid" systems have dual functions. This includes Advanced Metering Infrastructure systems which, when used with various software can be used to detect power theft and by process of elimination, detect where equipment failures have taken place. These are in addition to their primary functions of eliminating the need for human meter reading and measuring the time-of-use of electricity.

The worldwide power loss including theft is estimated at two-hundred billion dollars annually.<ref>{{cite journal
 | url=http://www.huffingtonpost.com/james-grundvig/detecting-power-theft-by-_b_3078082.html
 | title=Detecting Power Theft by Sensors and the Cloud: Awesense Smart System for the Grid
 | journal= Huffington Post
 | author= James Grundvig
 | date=2013-04-15
 | page=2
 | access-date=2013-06-05
}}</ref>

Electricity theft also represents a major challenge when providing reliable electrical service in developing countries.<ref name="Buevich 95–98"/>

==Deployments and attempted deployments==

=== Enel ===
The earliest, and one of the largest, example of a smart grid is the Italian system installed by [[Enel]] S.p.A. of Italy. Completed in 2005, the Telegestore project was highly unusual in the utility world because the company designed and manufactured their own meters, acted as their own system integrator, and developed their own system software. The Telegestore project is widely regarded as the first commercial scale use of smart grid technology to the home, and delivers annual savings of 500 million euro at a project cost of 2.1 billion euro.<ref name="NETL01" />

=== US Dept. of Energy - ARRA Smart Grid Project ===
One of the largest deployment programs in the world to-date is the [https://www.smartgrid.gov/ U.S. Dept. of Energy's Smart Grid Program] funded by the American Recovery and Reinvestment Act of 2009. This program required matching funding from individual utilities. A total of over $9 billion in Public/Private funds were invested as part of this program. Technologies included Advanced Metering Infrastructure, including over 65 million Advanced "Smart" Meters, Customer Interface Systems, Distribution & Substation Automation, Volt/VAR Optimization Systems, over 1,000 [[Synchrophasor]]s, Dynamic Line Rating, Cyber Security Projects, Advanced Distribution Management Systems, Energy Storage Systems, and Renewable Energy Integration Projects. This program consisted of Investment Grants (matching), Demonstration Projects, Consumer Acceptance Studies, and Workforce Education Programs. Reports from all individual utility programs as well as overall impact reports will be completed by the second quarter of 2015.

In the U.S., the Energy Policy Act of 2005 and Title XIII of the [[Energy Independence and Security Act of 2007]] are providing funding to encourage smart grid development. The objective is to enable utilities to better predict their needs, and in some cases involve consumers in a time-of-use tariff. Funds have also been allocated to develop more robust energy control technologies.<ref>{{cite web |title=U.S. Energy Independence and Security Act of 2007 |url=http://www.thomas.gov/cgi-bin/query/C?c110:./temp/~c110z6D5F8 |url-status=dead |archive-url=https://web.archive.org/web/20151219182025/http://www.thomas.gov/cgi-bin/query/C?c110%3A.%2Ftemp%2F~c110z6D5F8 |archive-date=19 December 2015 |access-date=23 December 2007}}</ref><ref>[http://www.oe.energy.gov/DocumentsandMedia/6-27-07_US_Electric_Grid_Press_Release.pdf DOE Provides up to $51.8 Million to Modernize the U.S. Electric Grid System] {{webarchive|url=https://web.archive.org/web/20080920233040/http://www.oe.energy.gov/DocumentsandMedia/6-27-07_US_Electric_Grid_Press_Release.pdf|date=20 September 2008}}, 27 June 2007, U.S. Department of Energy (DOE)</ref>

=== Austin, Texas ===
In the US, the city of [[Austin, Texas]], has been working on building its smart grid since 2003, when its utility first replaced 1/3 of its manual meters with smart meters that communicate via a wireless [[Mesh networking|mesh network]]. It currently manages 200,000 devices real-time (smart meters, smart thermostats, and sensors across its service area), and expects to be supporting 500,000 devices real-time in 2009 servicing 1 million consumers and 43,000 businesses.<ref>{{cite journal
 | url=http://nextgenpe.com/currentissue/article.asp?art=273073&issue=244
 | title=Building for the future: Interview with Andres Carvallo, CIO&nbsp;— Austin Energy Utility
 | journal=Next Generation Power and Energy
 | issue=244
 | access-date=2008-11-26
}}</ref>

=== Boulder, Colorado ===
[[Boulder, Colorado]], completed the first phase of its smart grid project in August 2008. Both systems use the smart meter as a gateway to the [[home automation]] network (HAN) that controls smart sockets and devices. Some HAN designers favor decoupling control functions from the meter, out of concern of future mismatches with new standards and technologies available from the fast moving business segment of home electronic devices.<ref>{{cite journal
 | title=AMI Anatomy: Core Technologies in Advanced Metering
 | author= Betsy Loeff
 | journal=Ultrimetrics Newsletter
 | date=March 2008
}}</ref>

=== Hydro One ===
[[Hydro One]], in [[Ontario]], Canada is in the midst of a large-scale Smart Grid initiative, deploying a standards-compliant communications infrastructure from Trilliant. By the end of 2010, the system will serve 1.3 million customers in the province of Ontario. The initiative won the "Best AMR Initiative in North America" award from the Utility Planning Network.<ref>Betsy Loeff, [http://www.elp.com/index/display/article-display/309361/articles/electric-light-power/meetering/2007/10/demanding-standards-hydro-one-aims-to-leverage-ami-via-interoperability.html Demanding standards: Hydro One aims to leverage AMI via interoperability] {{Webarchive|url=https://web.archive.org/web/20160121193232/http://www.elp.com/index/display/article-display/309361/articles/electric-light-power/meetering/2007/10/demanding-standards-hydro-one-aims-to-leverage-ami-via-interoperability.html |date=2016-01-21 }}, PennWell Corporation</ref>

=== Île d'Yeu ===
[[Île d'Yeu]] began a 2-year pilot program in Spring of 2020. Twenty-three houses in the Ker Pissot neighborhood and surrounding areas were interconnected with a microgrid that was automated as a smart grid with software from [[Engie]]. Sixty-four solar panels with a peak capacity of 23.7&nbsp;kW were installed on five houses and a battery with a storage capacity of 15 kWh was installed on one house. Six houses store excess solar energy in their hot water heaters. A dynamic system apportions the energy provided by the solar panels and stored in the battery and hot water heaters to the system of 23 houses. The smart grid software dynamically updates energy supply and demand in 5 minute intervals, deciding whether to pull energy from the battery or from the panels and when to store it in the hot water heaters. This pilot program was the first such project in France.<ref>{{cite web|url=https://www.pv-magazine.fr/2020/07/03/harmonyeu-premiere-communaute-energetique-a-lile-dyeu-signee-engie/|title=Harmon'Yeu, première communauté énergétique à l'Île d'Yeu, signée Engie|author=Joel Spaes|work=www.pv-magazine.fr|date=July 3, 2020|access-date=January 27, 2021}}</ref><ref>{{cite web|url=https://www.lemonde.fr/economie/article/2020/12/16/a-l-ile-d-yeu-soleil-pour-tous-ou-presque_6063523_3234.html|title=A L'Ile-d'Yeu, soleil pour tous... ou presque|author=Nabil Wakim|work=www.lemonde.fr|date=December 16, 2020|access-date=January 27, 2021}}</ref>

=== Mannheim ===
The City of [[Mannheim]] in Germany is using realtime [[Broadband over power lines|Broadband Powerline (BPL)]] communications in its Model City Mannheim "MoMa" project.<ref>{{cite web |url=http://www.mvv.de/cms/konzernportal/en/mvv_energie_gruppe/mvv_energie_/innovation/modellstadt_mannheim/moma_startseite.jsp |title=E-Energy Project ''Model City Mannheim'' |work=MVV Energie |year=2011 |access-date=May 16, 2011 |archive-date=March 24, 2012 |archive-url=https://web.archive.org/web/20120324035210/http://www.mvv.de/cms/konzernportal/en/mvv_energie_gruppe/mvv_energie_/innovation/modellstadt_mannheim/moma_startseite.jsp |url-status=dead }}</ref>

=== Sydney ===
[[Sydney]] also in Australia, in partnership with the Australian Government implemented the Smart Grid, Smart City program.<ref>{{Cite web |url=http://www.industry.gov.au/Energy/Programs/SmartGridSmartCity/Pages/default.aspx |title=Smart Grid, Smart City |access-date=2014-09-29 |archive-date=2014-09-24 |archive-url=https://web.archive.org/web/20140924070452/http://www.industry.gov.au/Energy/Programs/SmartGridSmartCity/Pages/default.aspx |url-status=dead }}</ref>

=== Évora ===
InovGrid is an innovative project in [[Évora]], Portugal that aims to equip the electricity grid with information and devices to automate grid management, improve service quality, reduce operating costs, promote energy efficiency and environmental sustainability, and increase the penetration of renewable energies and electric vehicles. It will be possible to control and manage the state of the entire electricity distribution grid at any given instant, allowing suppliers and energy services companies to use this technological platform to offer consumers information and added-value energy products and services. This project to install an intelligent energy grid places Portugal and [[Energias de Portugal|EDP]] at the cutting edge of technological innovation and service provision in Europe.<ref>{{Cite web |url=http://www.inovcity.pt/pt/Pages/homepage.aspx |title=Évora InovCity - Smart Energy Living |access-date=2011-06-17 |archive-date=2011-04-24 |archive-url=https://web.archive.org/web/20110424221240/http://www.inovcity.pt/pt/Pages/homepage.aspx |url-status=dead }}</ref><ref>{{Cite news |last=Rooney |first=Ben |title=Microsoft Powers Portuguese Smart City |url=https://blogs.wsj.com/tech-europe/2011/03/24/microsoft-powers-portuguese-smart-city/ |access-date=2024-03-17 |work=WSJ |language=en-US}}</ref>

=== E-Energy ===
In the so-called ''E-Energy'' projects several German utilities are creating first nucleolus in six independent model regions. A technology competition identified this model regions to carry out research and development activities with the main objective to create an "Internet of Energy."<ref>{{Cite web |title=E-Energy |url=https://www.digitale-technologien.de/DT/Navigation/DE/ProgrammeProjekte/AbgeschlosseneProgrammeProjekte/E-Energy/e-energy.html |access-date=2024-03-17 |website=www.digitale-technologien.de |language=de}}</ref>

=== Massachusetts ===
One of the first attempted deployments of "smart grid" technologies in the [[United States]] was rejected in 2009 by electricity [[regulation|regulators]] in the [[Commonwealth of Massachusetts]], a [[U.S. state|US state]].<ref name="BostonGlobeWMECOSmartGrid">[http://www.boston.com/business/articles/2009/07/23/mass_rejects_utilitys_prepayment_plan_for_low_income_customers/ Massachusetts rejects utility's prepayment plan for low income customers], The [[Boston Globe]], 2009-07-23</ref> According to an article in the [[Boston Globe]], Northeast Utilities' [[Western Massachusetts Electric Company|Western Massachusetts Electric Co.]] subsidiary actually attempted to create a "smart grid" program using public subsidies that would switch [[working class|low income]] customers from post-pay to pre-pay billing (using "[[smart card]]s") in addition to special hiked "premium" rates for electricity used above a predetermined amount.<ref name="BostonGlobeWMECOSmartGrid" /> This plan was rejected by regulators as it "eroded important [[consumer protection|protections]] for [[working class|low-income]] customers against shutoffs".<ref name="BostonGlobeWMECOSmartGrid" /> According to the [[Boston Globe]], the plan "[[discrimination|unfairly targeted]] low-income customers and circumvented Massachusetts laws meant to help [[poverty|struggling consumers]] keep the lights on".<ref name="BostonGlobeWMECOSmartGrid" /> A spokesman for an [[environmental movement|environmental group]] supportive of smart grid plans and Western Massachusetts' Electric's aforementioned "smart grid" plan, in particular, stated "If used properly, smart grid technology has a lot of potential for reducing peak demand, which would allow us to shut down some of the oldest, dirtiest power plants... It's a tool."<ref name="BostonGlobeWMECOSmartGrid" />

=== eEnergy Vermont consortium ===
The eEnergy Vermont consortium<ref>{{Cite web |url=http://publicservice.vermont.gov/topics/electric/smart_grid/eenergyvt |title=EEnergy Vermont {{pipe}} Public Service Department |access-date=2014-10-17 |archive-date=2014-10-23 |archive-url=https://web.archive.org/web/20141023120101/http://publicservice.vermont.gov/topics/electric/smart_grid/eenergyvt |url-status=dead }}</ref> is a US statewide initiative in [[Vermont]], funded in part through the [[American Recovery and Reinvestment Act of 2009]], in which all of the electric utilities in the state have rapidly adopted a variety of Smart Grid technologies, including about 90% Advanced Metering Infrastructure deployment, and are presently evaluating a variety of dynamic rate structures.

=== Netherlands ===
In the Netherlands a large-scale project (>5000 connections, >20 partners) was initiated to demonstrate integrated smart grids technologies, services and business cases.<ref>[http://www.smartenergycollective.nl/ Smart Energy Collective] {{Webarchive|url=https://web.archive.org/web/20180809163015/http://smartenergycollective.nl/ |date=2018-08-09 }}. Smartenergycollective.nl. Retrieved on 2011-05-14.</ref>

=== Chattanooga ===
[[EPB]] in [[Chattanooga, Tennessee|Chattanooga, TN]] is a municipally-owned electric utility that started construction of a smart grid in 2008, receiving a $111,567,606 grant from the US DOE in 2009 to expedite construction and implementation (for a total budget of $232,219,350). Deployment of power-line interrupters (1170 units) was completed in April 2012, and deployment of smart meters (172,079 units) was completed in 2013. The smart grid's backbone fiber-optic system was also used to provide the first gigabit-speed internet connection to residential customers in the US through the Fiber to the Home initiative, and now speeds of up to 10 gigabits per second are available to residents. The smart grid is estimated to have reduced power outages by an average of 60%, saving the city about 60 million dollars annually. It has also reduced the need for "truck rolls" to scout and troubleshoot faults, resulting in an estimated reduction of 630,000 truck driving miles, and 4.7 million pounds of carbon emissions. In January 2016, EPB became the first major power distribution system to earn Performance Excellence in Electricity Renewal (PEER) certification.<ref>{{Cite web|url=https://epb.com/about-epb/our-history|title=Our History {{!}} EPB|website=epb.com|access-date=2019-03-29}}</ref><ref>{{Cite web|url=https://www.smartgrid.gov/project/epb_smart_grid_project.html|title=EPB (Smart Grid Project)|website=www.smartgrid.gov|access-date=2019-03-29}}</ref><ref>{{Cite web|url=https://www.smartgrid.gov/project/epb_smart_grid_project/latest_data.html|title=Project Information|website=www.smartgrid.gov|access-date=2019-03-29|archive-date=2019-03-29|archive-url=https://web.archive.org/web/20190329184355/https://www.smartgrid.gov/project/epb_smart_grid_project/latest_data.html|url-status=dead}}</ref><ref>{{Cite web|url=https://epb.com/home-store/power/smart-grid|title=Smart Grid {{!}} EPB|website=epb.com|access-date=2019-03-29}}</ref>

===OpenADR Implementations===

Certain deployments utilize the [[OpenADR]] standard for load shedding and demand reduction during higher demand periods.

====China====
The smart grid market in China is estimated to be $22.3 billion with a projected growth to $61.4 billion by 2015. [[Honeywell]] is developing a demand response pilot and feasibility study for China with the [[State Grid Corp]]. of China using the [[OpenADR]] demand response standard. The State Grid Corp., the [[Chinese Academy of Sciences]], and [[General Electric]] intend to work together to develop standards for China's smart grid rollout.<ref>{{cite news
 | last  =Enbysk
 | first =Liz
 | title =China Smart Grid Playbook: Should we steal a page or two?
 | newspaper =SmartGridNews
 | date =April 20, 2011
 | url =http://www.smartgridnews.com/artman/publish/Business_Global/China-smart-grid-playbook-Should-we-steal-a-page-or-two-3627.html
 | access-date =December 1, 2011
 | archive-date =November 3, 2011
 | archive-url =https://web.archive.org/web/20111103105736/http://www.smartgridnews.com/artman/publish/Business_Global/China-smart-grid-playbook-Should-we-steal-a-page-or-two-3627.html
 | url-status =dead
 }}</ref><ref>{{cite news
 | last =John
 | first =Jeff
 | title =Open Source Smart Grid Goes to China, Courtesy of Honeywell
 | newspaper =Giga Om
 | date =February 28, 2011
 | url =http://gigaom.com/cleantech/open-source-smart-grid-goes-to-china-courtesy-of-honeywell/
 | access-date =December 1, 2011
 | archive-date =October 26, 2012
 | archive-url =https://web.archive.org/web/20121026122511/http://gigaom.com/cleantech/open-source-smart-grid-goes-to-china-courtesy-of-honeywell/
 | url-status =dead
 }}</ref><ref>Li, Jerry (2009), From Strong to Smart: the Chinese Smart Grid and its relation with the Globe, AEPN, Article No. 0018602. Available at [https://www.researchgate.net/publication/282912474_From_Strong_to_Smart_the_Chinese_Smart_Grid_and_its_Relation_with_the_Globe Researchgate] or [http://www.drjerryli.com/articles/AEPN_CSG_2009.pdf the author's personal page]</ref>

====United States====
In 2009, the [[US Department of Energy]] awarded an $11 million grant to [[Southern California Edison]] and [[Honeywell]] for a [[demand response]] program that automatically turns down energy use during peak hours for participating industrial customers.<ref name="eightyfive">{{cite news
 | title =Honeywell and Southern California Edison Team up to Curb Electricity Demand
 | newspaper =The Wall Street Journal
 | date =March 27, 2007}}
</ref><ref>{{cite news
 | last =John
 | first =Jeff
 | title =Honeywell's OpenADR Plans for SoCal Edison
 | newspaper =Greentechgrid
 | date =November 17, 2009
 | url =http://www.greentechmedia.com/articles/read/honeywells-openadr-plans-for-socal-edison/
 | access-date =January 25, 2012 }}</ref> The Department of Energy awarded an $11.4 million grant to Honeywell to implement the program using the OpenADR standard.<ref>{{cite news
 | last =Richman
 | first =Gerald
 | title =Smart Grid: The Devil Is In the Details
 | newspaper =New America Foundation
 | date =February 23, 2010
 | url =http://newamerica.net/publications/policy/smart_grid_the_devil_is_in_the_details
 | access-date =November 29, 2011
 | archive-date =June 12, 2010
 | archive-url =https://web.archive.org/web/20100612144033/http://newamerica.net/publications/policy/smart_grid_the_devil_is_in_the_details
 | url-status =dead
 }}</ref>

Hawaiian Electric Co. (HECO) is implementing a two-year pilot project to test the ability of an ADR program to respond to the intermittence of wind power. [[Hawaii]] has a goal to obtain 70 percent of its power from renewable sources by 2030. HECO will give customers incentives for reducing power consumption within 10 minutes of a notice.<ref>{{cite news
 | last =John
 | first =Jeff
 | title =Balancing Hawaiian Wind Power with Demand Response
 | newspaper =GreenTechMedia
 | date =February 2, 2012
 | url =http://www.greentechmedia.com/articles/read/balancing-hawaiian-wind-power-with-demand-response/
 | access-date =March 7, 2012 }}</ref>

==Guidelines, standards and user groups==
Part of the [[IEEE Smart Grid|IEEE Smart Grid Initiative]],<ref>{{cite web | url=http://smartgrid.ieee.org/standards/approved-ieee-smart-grid-standards/348-2030-ieee-guide-for-smart-grid-interoperability-of-energy-technology-and-information-technology-operation-with-the-electric-power-system-eps-and-end-use-applications-and-loads | archive-url=https://web.archive.org/web/20120423150411/http://smartgrid.ieee.org/standards/approved-ieee-smart-grid-standards/348-2030-ieee-guide-for-smart-grid-interoperability-of-energy-technology-and-information-technology-operation-with-the-electric-power-system-eps-and-end-use-applications-and-loads | url-status=dead | archive-date=2012-04-23 | title=2030-2011 IEEE Guide for Smart Grid Interoperability of Energy Technology and Information Technology Operation with the Electric Power System (EPS), and End-Use Applications and Loads | author=IEEE Standards Association | publisher=IEEE Smart Grid | access-date=2013-01-28 }}</ref> [[IEEE]] 2030.2 represents an extension of the work aimed at utility storage systems for transmission and distribution networks. The [[IEEE P2030]] group expects to deliver early 2011 an overarching set of guidelines on smart grid interfaces. The new guidelines will cover areas including batteries and [[supercapacitor]]s as well as [[flywheel]]s. The group has also spun out a 2030.1 effort drafting guidelines for integrating [[electric vehicle]]s into the smart grid.

[[IEC TC 57]] has created a family of international standards that can be used as part of the smart grid. These standards include [[IEC 61850]] which is an architecture for substation automation, and [[IEC 61970]]/[[IEC 61968|61968]] – the Common Information Model (CIM). The CIM provides for common semantics to be used for turning data into information.

[[OpenADR]] is an open-source smart grid communications standard used for demand response applications.<ref>{{cite news
 | last =John
 | first =Jeff
 | title =Open Source Smart Grid Goes to China, Courtesy of Honeywell
 | publisher =GigaOm
 | date =February 28, 2011
 | url =http://gigaom.com/cleantech/open-source-smart-grid-goes-to-china-courtesy-of-honeywell/
 | access-date =April 16, 2012
 | archive-date =October 26, 2012
 | archive-url =https://web.archive.org/web/20121026122511/http://gigaom.com/cleantech/open-source-smart-grid-goes-to-china-courtesy-of-honeywell/
 | url-status =dead
 }}</ref>
It is typically used to send information and signals to cause electrical power-using devices to be turned off during periods of higher demand.

MultiSpeak has created a specification that supports distribution functionality of the smart grid. MultiSpeak has a robust set of integration definitions that supports nearly all of the software interfaces necessary for a distribution utility or for the distribution portion of a vertically integrated utility. MultiSpeak integration is defined using extensible markup language (XML) and web services.

The IEEE has created a standard to support [[synchrophasors]] – C37.118.<ref>{{cite web |url=http://ieeexplore.ieee.org/xpl/standardstoc.jsp?isnumber=33838 |title=Welcome to IEEE Xplore 2.0: IEEE STD C37.118-2005 (Revision of IEEE STD 1344-1995) |website=[[IEEE]] |access-date=12 January 2022 |archive-url=https://web.archive.org/web/20081227010910/http://ieeexplore.ieee.org/xpl/standardstoc.jsp?isnumber=33838 |archive-date=27 December 2008 |url-status=dead}}</ref>

The UCA International User Group discusses and supports real world experience of the standards used in smart grids.

A utility task group within LonMark International deals with smart grid related issues.

There is a growing trend towards the use of [[TCP/IP]] technology as a common communication platform for smart meter applications, so that utilities can deploy multiple communication systems, while using IP technology as a common management platform.<ref>[http://newsroom.cisco.com/dlls/2009/prod_051809.html Cisco Outlines Strategy for Highly Secure, 'Smart Grid' Infrastructure -> Cisco News] {{webarchive |url=https://web.archive.org/web/20150128132708/http://newsroom.cisco.com/dlls/2009/prod_051809.html |date=2015-01-28 }}. Newsroom.cisco.com (2009-05-18). Retrieved on 2011-05-14.</ref><ref>[https://web.archive.org/web/20110720140344/http://blog.ds2.es/ds2blog/2009/05/why-smart-grid-must-use-ip-standards.html DS2 Blog: Why the Smart Grid must be based on IP standards]. Blog.ds2.es (2009-05-20). Retrieved on 2011-05-14.</ref>

[[IEEE P2030]] is an [[IEEE]] project developing a "Draft Guide for Smart Grid Interoperability of Energy Technology and Information Technology Operation with the Electric Power System (EPS), and End-Use Applications and Loads".<ref>{{Cite web|url=https://sagroups.ieee.org/scc21/|title=IEEE Standards Committee 21 - Home|website=sagroups.ieee.org}}</ref><ref>[http://www.eetimes.com/news/design/showArticle.jhtml?articleID=215901223 IEEE, conference drive smart grids]. Eetimes.com (2009-03-19). Retrieved on 2011-05-14.</ref>

[[NIST]] has included [[ITU-T]] [[G.hn]] as one of the "Standards Identified for Implementation" for the [[Smart Grid]] "for which it believed there
was strong stakeholder consensus".<ref>[https://www.nist.gov/smartgrid/smartgrid_092409.cfm Commerce Secretary Unveils Plan for Smart Grid Interoperability]. Nist.gov. Retrieved on 2011-05-14.</ref> G.hn is standard for high-speed communications over power lines, phone lines and coaxial cables.

OASIS EnergyInterop'&nbsp;– An OASIS technical committee developing XML standards for energy interoperation. Its starting point is the California OpenADR standard.

Under the Energy Independence and Security Act of 2007 (EISA), [[NIST]] is charged with overseeing the identification and selection of hundreds of standards that will be required to implement the [[Smart Grid]] in the U.S. These standards will be referred by [[NIST]] to the [[Federal Energy Regulatory Commission]] (FERC). This work has begun, and the first standards have already been selected for inclusion in NIST's Smart Grid catalog.<ref>{{Cite web |url=http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid/WebHome#SGIP_Catalog_of_Standards |title=SGIP Catalog of Standards |access-date=2009-11-09 |archive-date=2015-02-24 |archive-url=https://web.archive.org/web/20150224171513/http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid/WebHome#SGIP_Catalog_of_Standards |url-status=dead }}</ref> However, some commentators have suggested that the benefits that could be realized from Smart Grid standardization could be threatened by a growing number of patents that cover Smart Grid architecture and technologies.<ref>[https://ssrn.com/abstract=1947333 Jorge L. Contreras, "Gridlock or Greased Lightning: Intellectual Property, Government Involvement and the Smart Grid"] (presented at American Intellectual Property Law Assn. (AIPLA) 2011 Annual Meeting (Oct. 2011, Washington D.C.))</ref> If patents that cover standardized Smart Grid elements are not revealed until technology is broadly distributed throughout the network ("locked-in"), significant disruption could occur when patent holders seek to collect unanticipated rents from large segments of the market.

== GridWise Alliance rankings ==
In November 2017 the non-profit GridWise Alliance along with Clean Edge Inc., a clean energy group, released rankings for all 50 states in their efforts to modernize the electric grid. California was ranked number one. The other top states were Illinois, Texas, Maryland, Oregon, Arizona, the District of Columbia, New York, Nevada and Delaware. "The 30-plus page report from the GridWise Alliance, which represents stakeholders that design, build and operate the electric grid, takes a deep dive into grid modernization efforts across the country and ranks them by state."<ref>{{Cite news|url=https://dailyenergyinsider.com/featured/9124-california-still-reigns-grid-modernization-efforts/|title=California still reigns in grid modernization efforts|last=Sowers|first=Scott|date=2017-11-17|work=Daily Energy Insider|access-date=2017-12-05|language=en}}</ref>

==See also==
{{Portal|Energy}}
[[File:End of line of T pylons (geograph 4456721).jpg|thumb|End of line of [[Transmission tower#T-pylons|T-pylons]]]]
{{Div col}}
* [[Charge control]]
* [[Electranet]]
* [[Potential applications of graphene#Graphene-clad wire|Graphene-clad wire]]
* [[Grid friendly]]
* [[Grid energy storage]]
* [[Home energy storage]]
* [[Large-scale energy storage]]
* [[List of energy storage projects]]
* [[Microgrid]]
* [[Net metering]]
* [[Open smart grid protocol]]
* [[Smart grids by country]]
* [[Smart villages in Asia]]
* [[Super grid]]
* [[Transmission tower#T-pylons|T-pylons]]
* [[Vehicle-to-grid]] (V2G)
* [[Virtual power plant]]
* [[Wide area synchronous grid]]
* [[Smart city]]
{{div col end}}

==References==
{{Reflist|30em}}

== Bibliography ==
* {{Cite magazine|author=Hans Glavitsch |date=November 1974 |title=Computer Control of Electric-Power Systems |magazine=[[Scientific American]] |volume=231 |issue=5 }}
* Christian Neureiter, [https://model-based-systems-engineering.com/portfolio-item/domain-specific-model-driven-engineering-approach-systems-engineering-smart-grid/ A Domain-Specific, Model Driven Engineering Approach For Systems Engineering In The Smart Grid] {{Webarchive|url=https://web.archive.org/web/20180122082139/https://model-based-systems-engineering.com/portfolio-item/domain-specific-model-driven-engineering-approach-systems-engineering-smart-grid/ |date=2018-01-22 }}, MBSE4U, 2017, {{ISBN|978-3981852929}}

==External links==
{{Commons category|Smart grids}}
* [http://ec.europa.eu/energy/gas_electricity/smartgrids/smartgrids_en.htm Smart Grids] ([[European Commission]])
* [https://regeneration.org/nexus/smart-microgrids Smart Microgrids] by Project Regeneration
* [http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid/WebHome The NIST Smart Grid Collaboration Site] {{Webarchive|url=https://web.archive.org/web/20150224171513/http://collaborate.nist.gov/twiki-sggrid/bin/view/SmartGrid/WebHome |date=2015-02-24 }} NIST's public wiki for Smart Grid
* [http://www.meshdynamics.com/documents/Smart_Multi_Grid_Wireless_Architecture.pdf Emerging Smart Multi-Use Grids] Multiple use scalable wireless network of networks
* [http://cgs.illinois.edu/resources/webvideo/computer-system-security-technical-and-social-challenges-creating-a-trustworthy-p Video Lecture: Computer System Security: Technical and Social Challenges in Creating a Trustworthy Power Grid] {{Webarchive|url=https://web.archive.org/web/20111006155507/http://cgs.illinois.edu/resources/webvideo/computer-system-security-technical-and-social-challenges-creating-a-trustworthy-p |date=2011-10-06 }}, [[University of Illinois at Urbana-Champaign]]
* [http://eu.wiley.com/WileyCDA/WileyTitle/productCd-1118004396.html Wiley: Smart Grid Applications, Communications, and Security]
* [http://cgs.illinois.edu/resources/webvideo/smart-grid-key-a-sustainable-energy-infrastructure Video Lecture: Smart Grid: Key to a Sustainable Energy Infrastructure] {{Webarchive|url=https://web.archive.org/web/20110914151338/http://cgs.illinois.edu/resources/webvideo/smart-grid-key-a-sustainable-energy-infrastructure |date=2011-09-14 }}, [[University of Illinois at Urbana-Champaign]]
* [https://ieeexplore.ieee.org/document/5622092 Smart High Voltage Substation Based on IEC 61850 Process Bus and IEEE 1588 Time Synchronization]
* [http://www.e2sg-project.eu/ Energy To Smart Grid (E2SG), one of the major European Smart Grid research projects]
* [http://www.wiley.com/WileyCDA/WileyTitle/productCd-1119975808.html Smart Grid: Communication-Enabled Intelligence for the Electric Power Grid]
* [http://www.factorymicrogrid.com/en/index.aspx LIFE Factory Microgrid] {{Webarchive|url=https://web.archive.org/web/20181022193525/http://www.factorymicrogrid.com/en/index.aspx |date=2018-10-22 }}: Smart Grid project funded by the European Commission
* [https://www.icax.co.uk/Smart_Hubs.html Smart Hubs SLES ]: Smart Grid project part-funded by UK Research and Innovation

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[[Category:Smart grid| ]]