The power grid is one of the most important achievements in recent history. Here, the grid represents the entire network, from the power station that produces energy all the way to the house where we use it, and everything in between. However, the rise of renewable energy generation and the growth of distributed energy resources have brought technical challenges to the current grid, thus requiring a smart grid that can make decisions on its own to keep the entire system safe and stable.

A smart grid is the integration of our existing grid with two-way communication and digital sensing technologies to enhance the ability of the current grid to be more secure, reliable, efficient and self-sufficient. Smart grid enables DISCOM to monitor different parameters and take preventive measures to prevent failures and blackouts. Smart grid technology also enables consumers to remotely control their devices and measure energy consumption, thereby greatly reducing energy consumption. The diagram below shows the difference between the level of connectivity and communication between a traditional grid (left) and a smart grid (right).

IoT smart grid application scenarios

Why is the transition to a smart grid needed?

The transition to smart grids is critical to improving the reliability of our grid due to the expansion of renewable energy technologies. The adoption of renewable energy generation due to technological advancements and pollution control has increased power generation through distributed energy resources, which, while very good for the environment because of their smaller carbon footprint, can have a detrimental impact on the current grid. It also increases the efficiency of the grid and reduces losses, thereby minimizing energy costs for consumers.

Smart grids have many benefits, but upgrading our existing grids to smart grids is a time-consuming, resource-intensive and very expensive decision. Each country has its own vision and specific reasons for installing a smart grid.

China has been regarded as the world's manufacturing center, and the growth of energy demand is a major challenge for the country. As a result, China's smart grid adoption focuses on expanding power generation capacity through renewable resources and improving China's transmission and distribution system to reduce losses, but its main goal is to curb pollution, which has long been a concern.

The electrical grid is considered an important achievement of the 19th century. But due to the growth of distributed energy resources and the adoption of rooftop solar panels, the current grid is constantly at risk of overload and disturbance. Therefore, in order to increase the generation of renewable energy through distributed energy systems, a smart grid that can handle different parameters under human intervention is required, hence the need for smart grids. Despite the very high initial setup cost, smart grids promise to save billions of dollars in wasted energy and can improve the quality of power delivered to homes. Two-way communication between consumers and distribution companies and the use of smart appliances enables smart grids to be self-sufficient, increasing reliability while increasing efficiency and reducing labor costs such as manual meter reading.