The term smart grid is most commonly defined as an electric grid that has been digitized to enable two way communication between producers and consumers. [1] The objective of the smart grid is to update electricity infrastructure to include more advanced communication, control, and sensory technology with the hope of increasing communication between consumers and energy producers. The potential benefits from a smart grid include increased reliability, more efficient electricity use, better economics, and improved sustainability.
The concept of a smart grid began to emerge in the early 2000s. Since then, many countries have been pursuing a smart grid. Each country has their own unique definition of a smart grid based on their own policies and objectives. Therefore, every country approaches achieving a smart grid a little different. [2]
Below is an overview of major smart grid legislation and projects in select countries.
South Africa has smart grid efforts are focused around three objectives: increasing the penetration of renewable generation, decarbonizing their electricity generation and improving network reliability and availability.
China's Smart Grid efforts are focused on three key areas. The first focus area is on expanding generation, to address the explosive growth of electricity demand over the last 20 years; which is expected to continue . [5] The second focus area correlates with expanding generation and focuses on expanding China's electricity transmission and distribution systems. China's third area of focus is on reducing the environmental impact of their electricity generation sector.
China is a pursuing an all of the above strategy to fulfill their generation needs. Coal and petroleum currently represent the vast majority of China's generation mix and this trend will continue with their generation expansion plan. [6] China has plans to build nine new coal plants by 2015. [7] China will also include nuclear generation in their expansion plan. The 12thFive Year Plan dictates that 40 GW will be installed by 2015. [7] China also has plans to expand their renewable generation. The largest expansion will come from hydroelectricity, which is expected to be expanded to 120 GW . [7] Wind generation expansion will include 70 GW of capacity and solar generation will include 5 GW of installed capacity. [7]
To support the aggressive generation expansion plan, there are extensive plans to expand transmission as well. Expanding transmission lines will help China to connect new generation to demand centers and integrate the seven separate power grids that currently exist in China. [7] [8] Much of China's new transmission will be ultra-high voltage (UHV) lines. [8] The UHV lines should transfer power at lower cost with fewer losses. On May 21, 2009, China has announced an aggressive framework for Smart Grid deployment. Comparing with US and Europe, the Chinese Smart Grid appears to be more transmission-centric. [9]
To address emission concerns, the 12th Five Year Plan dictates that CO2 emissions will be reduced by 17% per unit of GDP. [7] To accomplish reaching this goal, China has two initiatives planned for the electricity sector. First, increasing energy efficiency until consumption is reduced by 16% per unit of GDP by 2015. This will be accomplished with the deployment of various consumer education programs and smart meter apps so consumers can be educated about their electricity use. [7] The 12th Five Year Plan also discusses installing smart substations and smart control algorithms to reduce voltage fluctuations and improve power quality which will increase electricity efficiency. [7] The second initiative involves reducing the pollution generated from coal plants. China has heavily invested in clean coal technology (CCT) to address emissions from coal plants. [7] China is deploying CCT in all new plants and closing older plants that are more polluting. [10]
As part of its current 5-year plan, China is building a Wide Area Monitoring system (WAMS) and by 2012 plans to have PMU sensors at all generators of 300 megawatts and above, and all substations of 500 kilovolts and above. All generation and transmission is tightly controlled by the state, so standards and compliance processes are rapid. Requirements to use the same PMUs from the same Chinese manufacturer and stabilizers conforming to the same state specified are strictly adhered to. All communications are via broadband using a private network, so data flows to control centers without significant time delays. [11]
The Korean government has launched a $65 million pilot program on Jeju Island with major players in the industry. The program consists of a fully integrated smart grid system for 6000 households; wind farms and four distribution lines are included in the pilot program. This demonstrates the extent of Korea's commitment towards an environmentally viable future.
Korea plans to slash overall energy consumption by 3% and cut down total electric energy consumption by 10% before 2030. The government also plans to reduce greenhouse gas emissions by 41 million tons by this time. The government has announced that it will undertake a nationwide Smart Grid implementation by 2030.
In January 2010, Korea has taken a significant step forward in its efforts to grab a foothold in the global smart grid sector, coming to a deal with the state of Illinois to jointly develop and test technologies for smart grid. The two parties have signed a memorandum of understanding with the Illinois Department of Commerce to set up a pilot program to create smart grid technology at a facility on Jeju Island. Under the plan, technologies that are developed through this partnership and are deemed viable for commercialization will be rolled out both in Illinois as well as in Korean cities. The two sides agreed to launch a business model for a smart grid on Jeju-do Island and apply it in Seoul and Chicago later on. The Korea Electrotechnology Research Institute and other related local centers will come together with Illinois' Argonne National Laboratory and Chicago University to test and develop technologies.
A joint cooperation committee will be established to draw up a detailed cooperation program for the next three years. The Korean government seeks to complete the installation of smart grid in the country by 2030 and establish another 27,000 or more power charge stations for electric cars. A total of 27.5 trillion won will be injected according to the roadmap. The government plans to handle it by developing core technology, new markets, new infrastructure and attracting voluntary investment from businesses.
The Australian government has committed to investing $100M in smart grids. [12] The federal government's call for proposals to study smart grid technology in 2009 was followed by an announcement of a winning team in June 2010. The study, intended to increase customer awareness and engagement in energy usage and establish distributed demand management and distributed generation management, will commence in Summer 2010. EnergyAustralia, announced as the lead utility in the federally sponsored consortium to study Smart Grid in Australia, will build the smart grid over five sites in New South Wales with partners IBM, Grid Net, a San Francisco-based energy software company, and GE Energy. The WiMAX-based smart grid will support such applications as Substation Automation and plug-in hybrid electric vehicles (PEV), ultimately supporting 50,000 Smart Meters and 15,000 in-home devices (IHDs) as well.
Within Australia the adoption of smart grids is hindered by a lack of service level obligations on electricity distribution businesses to connect distributed generation devices in a timely fashion. [13]
Development of smart grid technologies is part of the European Technology Platform (ETP) initiative and is called the SmartGrids Technology platform. [14] The SmartGrids European Technology Platform for Electricity Networks of the Future began its work in 2005. Its aim is to formulate and promote a vision for the development of European electricity networks looking towards 2020 and beyond. [15]
The concept of smart grids as now starting to be deployed was developed in 2006 by the European Technology Platform for Smart Grids. Such concept concerns an electricity network that can intelligently integrate the actions of all users connected to it - generators, consumers and those that do both - in order to efficiently deliver sustainable, economic and secure electricity supplies. European Technology Platform identifies that smart grid employs innovative products and services together with intelligent monitoring, control, communication, and self-healing technologies in order to:
The EU aims to replace 80% of current electricity meters with smart meters by 2020 wherever cost-benefit analysis demonstrates a positive result. [17] This smart metering and smart grids rollout can reduce emissions in the EU by up to 9% and annual household energy consumption by similar amounts.
On 30 November 2016, the Commission published a proposal stating that all consumers should be entitled to request a smart meter from their supplier. Smart meters should allow consumers to reap the benefits of the progressive digitalisation of the energy market via several different functions. Consumers should also be able to access dynamic electricity price contracts. [18] A 2014 Commission report on the deployment of smart metering found:
The Smart Grid Forum had identified that smart technology would give energy consumers greater control of their energy use, bills, greater security of supply and enable the use of less carbon. It had further indicated that integration of smart grids with regular technology would potentially save up to £12 billion by 2050 and deliver 9,000 additional jobs and create a £5 billion export market. [19]
To complete the transition to smart grids, United Kingdom plans to roll out 53 million smart meters to 26 million households from 2015 to 2020. [20] Initiated by Department of Energy and Climate Change under the Cameron-Clegg coalition from 2010 - 2015 and now under Department for Business, Energy and Industrial Strategy and Office of Gas and Electricity Markets, the (rollout of) smart meters are estimated to cost £11 Billion, providing the British economy a net £6.7 Billion benefit. Smart Energy UK identifies the different roles of six stakeholders involved in the rollout of smart meters:
Support for smart grids became federal policy with passage of the Energy Independence and Security Act of 2007. [22] The law, Title13, sets out $100 million in funding per fiscal year from 2008 to 2012, establishes a matching program to states, utilities and consumers to build smart grid capabilities, and creates a Grid Modernization Commission to assess the benefits of demand response and to recommend needed protocol standards. [23] The Energy Independence and Security Act of 2007 directs the National Institute of Standards and Technology to coordinate the development of smart grid standards, which FERC would then promulgate through official rulemakings. [24]
Smart grids received further support with the passage of the American Recovery and Reinvestment Act of 2009, which set aside $11 billion for the creation of a smart grid.
Brazil's smart grid efforts have primarily focused on diversifying their generation sources and enhancing the electric grid infrastructure. There are three driving forces behind that focus. The first driving force is high electric demand growth from the last twenty years that is projected to continue. [25] [26] Brazil is making great efforts to keep up with growing electricity demand and it factors heavily into their smart grid policy decisions. The second driving force is their current over reliance on hydroelectricity. Brazil's strong dependence on hydroelectricity makes their electricity supply vulnerable to shortages during drought seasons. Brazil's smart grid policy agenda intends to address this by encouraging the development of other sources of electricity generation. The third driving force is Brazil's high non-technical losses. [27] Brazil hopes to implement modern smart grid technology to reduce these losses.
Brazil is working hard to address electricity generation diversity by implementing energy auctions for a variety of energy generation sources. Biomass is one of the sources Brazil is investing in to diversify its generation mix. Biomass currently represents the third largest electricity generation source in Brazil. [25] Biomass is a preferable source in Brazil because of the prevalence of agriculture, especially sugarcane and its peak generation season correlates well with the hydroelectric valley season. [28] In 2012, Brazil introduced a new amendment that would require local distributors to acquire at least 2 GW of biomass generation every year for 10 years. [29] In addition to encouraging investment in biomass generation, Brazil is also promoting wind generation. Similar to biomass generation, wind is a preferable source because its peak generation season also correlates with the hydroelectric valley season. Wind generation potential is estimated to be 143.5 GW. [28] Brazil began energy auctions for wind energy in 2009 and hope to have an installed capacity of 11 GW. [30] Generation auctions were also arranged for solar electricity beginning in 2013. [31] The solar market in Brazil is much smaller than he market for wind and biomass but it is growing with assistance from the government.
In addition to generation expansion, Brazil is also planning an extensive smart meter rollout. In 2012 the Brazil electricity regulatory authority decreed that all new residential and rural consumers shall be given a smart meter. Existing customers that desire to have a smart grid may request one. [32] Green Tech Media estimates that 27 million smart meters will be installed by 2030. [33] Brazil hopes that the installation of smart meters will help to reduce their non-technical losses. [34]
India is the third largest producer of electricity in the world. During the fiscal year (FY) 2023–24, the total electricity generation in the country was 1,949 TWh, of which 1,734 TWh was generated by utilities.
Renewable energy progress in the European Union (EU) is driven by the European Commission's 2023 revision of the Renewable Energy Directive, which raises the EU's binding renewable energy target for 2030 to at least 42.5%, up from the previous target of 32%. Effective since November 20, 2023, across all EU countries, this directive aligns with broader climate objectives, including reducing greenhouse gas emissions by at least 55% by 2030 and achieving climate neutrality by 2050. Additionally, the Energy 2020 strategy exceeded its goals, with the EU achieving a 22.1% share of renewable energy in 2020, surpassing the 20% target.
The energy policy of the United Kingdom refers to the United Kingdom's efforts towards reducing energy intensity, reducing energy poverty, and maintaining energy supply reliability. The United Kingdom has had success in this, though energy intensity remains high. There is an ambitious goal to reduce carbon dioxide emissions in future years, but it is unclear whether the programmes in place are sufficient to achieve this objective. Regarding energy self-sufficiency, UK policy does not address this issue, other than to concede historic energy security is currently ceasing to exist.
Renewable energy commercialization involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include biomass, hydroelectricity, geothermal power and heat. Second-generation technologies are market-ready and are being deployed at the present time; they include solar heating, photovoltaics, wind power, solar thermal power stations, and modern forms of bioenergy. Third-generation technologies require continued R&D efforts in order to make large contributions on a global scale and include advanced biomass gasification, hot-dry-rock geothermal power, and ocean energy. In 2019, nearly 75% of new installed electricity generation capacity used renewable energy and the International Energy Agency (IEA) has predicted that by 2025, renewable capacity will meet 35% of global power generation.
The smart grid is an enhancement of the 20th century electrical grid, using two-way communications and distributed so-called intelligent devices. Two-way flows of electricity and information could improve the delivery network. Research is mainly focused on three systems of a smart grid – the infrastructure system, the management system, and the protection system. Electronic power conditioning and control of the production and distribution of electricity are important aspects of the smart grid.
China is the world's leader in electricity production from renewable energy sources, with over triple the generation of the second-ranking country, the United States. China's renewable energy sector is growing faster than its fossil fuels and nuclear power capacity, and is expected to contribute 43% of global renewable capacity growth. China's total renewable energy capacity exceeded 1,000 GW in 2021, accounting for 43.5 per cent of the country's total power generation capacity, 10.2 percentage points higher than in 2015. The country aims to have 80 per cent of its total energy mix come from non-fossil fuel sources by 2060, and achieve a combined 1,200 GW of solar and wind capacity by 2030. In 2023, it was reported that China was on track to reach 1,371 gigawatts of wind and solar by 2025, five years ahead of target due to new renewables installations breaking records. In 2024, it was reported that China would reach its target by the end of July 2024, six years ahead of target.
Brazil has the largest electricity sector in Latin America. Its capacity at the end of 2021 was 181,532 MW. The installed capacity grew from 11,000 MW in 1970 with an average yearly growth of 5.8% per year. Brazil has the largest capacity for water storage in the world, being dependent on hydroelectricity generation capacity, which meets over 60% of its electricity demand. The national grid runs at 60 Hz and is powered 83% from renewable sources. This dependence on hydropower makes Brazil vulnerable to power supply shortages in drought years, as was demonstrated by the 2001–2002 energy crisis.
China is the world's largest electricity producer, having overtaken the United States in 2011 after rapid growth since the early 1990s. In 2021, China produced 8.5 petawatt-hour (PWh) of electricity, approximately 30% of the world's electricity production.
A super grid or supergrid is a wide-area transmission network, generally trans-continental or multinational, that is intended to make possible the trade of high volumes of electricity across great distances. It is sometimes also referred to as a "mega grid". Super grids typically are proposed to use high-voltage direct current (HVDC) to transmit electricity long distances. The latest generation of HVDC power lines can transmit energy with losses of only 1.6% per 1,000 km.
The Renewable Energy Sources Act or EEG is a series of German laws that originally provided a feed-in tariff (FIT) scheme to encourage the generation of renewable electricity. The EEG 2014 specified the transition to an auction system for most technologies which has been finished with the current version EEG 2017.
The utility electricity sector in Bangladesh has one national grid operated by Power Grid Company of Bangladesh with an installed capacity of 25,700 MW as of June 2022. Bangladesh's energy sector is not up to the mark. However, per capita energy consumption in Bangladesh is considered higher than the production. Electricity was introduced to the country on 7 December 1901.
The National Grid covers most of mainland Great Britain and several of the surrounding islands, and there are interconnectors to Northern Ireland and to other European countries. Power is supplied to consumers at 230 volts AC with a frequency of 50 Hz. In 2023 about a third of electricity used in Britain was generated from fossil gas and two-thirds was low-carbon power. Wind generates the most low-carbon power, followed by nuclear some of which is imported from France. The government is aiming for greenhouse gas emissions from electricity in Britain to be net zero by 2035.
Energy in Greece is dominated by fossil gas and oil. Electricity generation is dominated by the one third state owned Public Power Corporation. In 2009 DEI supplied for 85.6% of all electric energy demand in Greece, while the number fell to 77.3% in 2010. Almost half (48%) of DEI's power output in 2010 was generated using lignite. 12% of Greece's electricity comes from hydroelectric power plants and another 20% from natural gas. Between 2009 and 2010, independent companies' energy production increased by 56%, from 2,709 Gigawatt hour in 2009 to 4,232 GWh in 2010.
Energy in Portugal describes energy and electricity production, consumption and import in Portugal. Energy policy of Portugal will describe the politics of Portugal related to energy more in detail. Electricity sector in Portugal is the main article of electricity in Portugal.
Ireland is a net energy importer. Ireland's import dependency decreased to 85% in 2014. The cost of all energy imports to Ireland was approximately €5.7 billion, down from €6.5 billion (revised) in 2013 due mainly to falling oil and, to a lesser extent, gas import prices. Consumption of all fuels fell in 2014 with the exception of peat, renewables and non-renewable wastes.
Latvia is a net energy importer. Primary energy use in Latvia was 49 TWh, or 22 TWh per million persons in 2009. In 2018, electricity consumption per capita was 3731 kWh.
China is the world's largest consumer of electricity, and its demand is expected to double by the next decade, and triple by 2035. In 2010, 70 percent of the country's electricity generation came from coal-fired power plants, but the Chinese government is investing heavily in renewable energy technologies. As of 2013, 21 percent of China's electricity generation comes from renewable sources. This represents only 9 percent of overall primary energy consumption in the country. China's latest goal is to increase renewable energy to 9.5 percent of overall primary energy use by 2015. To implement China's new clean energy capacity into the national power grid, and to improve the reliability of the country's existing infrastructure, requires significant upgrades and ultimately, a smart grid.
Renewables supply a quarter of energy in Turkey, including heat and electricity. Some houses have rooftop solar water heating, and hot water from underground warms many spas and greenhouses. In parts of the west hot rocks are shallow enough to generate electricity as well as heat. Wind turbines, also mainly near western cities and industry, generate a tenth of Turkey’s electricity. Hydropower, mostly from dams in the east, is the only modern renewable energy which is fully exploited. Hydropower averages about a fifth of the country's electricity, but much less in drought years. Apart from wind and hydro, other renewables; such as geothermal, solar and biogas; together generated almost a tenth of Turkey’s electricity in 2022. Türkiye has ranked 5th in Europe and 12th in the world in terms of installed capacity in renewable energy. The share of renewables in Türkiye’s installed power reached to 54% at the end of 2022.
Turkey uses more electricity per person than the global average, but less than the European average, with demand peaking in summer due to air conditioning. Most electricity is generated from coal, gas and hydropower, with hydroelectricity from the east transmitted to big cities in the west. Electricity prices are state-controlled, but wholesale prices are heavily influenced by the cost of imported gas.
Denmark is a leading country in renewable energy production and usage. Renewable energy sources collectively produced 81% of Denmark's electricity generation in 2022, and are expected to provide 100% of national electric power production from 2030. Including energy use in the heating/cooling and transport sectors, Denmark is expected to reach 100% renewable energy in 2050, up from the 34% recorded in 2021.
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