As said, we also must mention edge computing here. Edge computing and edge analytics play an important role in utilities overall. As mentioned, one of the first and perhaps main aspects of smart grid initiatives, when people first hear about them, concern metering and so-called smart meters.

Smart meters are the next stage in an evolution that started decades ago and led to the first smart grid technologies such as automatic metering and, next Advanced Metering Infrastructure. Microgrids play an important role in building a low-carbon future because they bring resilience to the main grid, optimize energy costs, allow for renewable energy hosting, increase electrical vehicle integration, and improve energy accessibility.

However, a smart grid is about much more than just smart metering and some other elements include the distribution lines and substations substation automation and, increasingly, digital substations , technologies and mechanisms to prevent power outages and ensure power quality availability, reliability, etc.

and is one of the leading players in the smart grid market. Pointing to FLISR technology fault location, isolation, and service restoration he adds that self-healing capabilities minimize blackouts because they allow for continuous self-assessments that inspect, analyze, react to, and automatically respond to problems.

This is made possible through the widespread deployment of smart sensors and other intelligent devices and automated controls that check and evaluate the status and condition of the network to identify abnormalities and problems he states. Flexibly is another keyword. Using the power of analytics, a smart grid typically includes Industrial IoT use cases in areas such as asset optimization, predictive maintenance , the mentioned self-healing and any method to get parts of grids up again in case of issues or needed maintenance or external factors and ways to correct and optimize power quality while making sure demand for electricity is met in the most optimal way with energy savings and environmental mandates never being far away.

Centralized power generation is increasingly giving way to decentralized as new technologies continue to allow for different forms of power generation, storage, and transmission. The prosumer plays an important role in the efforts of energy companies and various players in the utilities value chain such as energy retailers whereby customer-centricity and improving customer experience are key.

Decentralized energy generation essentially means that more and more energy gets generated and stored in various ways that are closer to the customer that needs the energy.

If a company has power-generating means where it is located, then chance is indeed high nothing else is physically closer. Yet, you can perfectly imagine situations where a power plant could be physically very close as well. What matters is the ability to integrate the various resources whereby decentralized energy in general refers to the energy produced closer to the point of usage instead of at some large plant from where it is sent across the national grid.

Decentralization is nothing less than a revolution in how we generate, store, move, and consume energy he adds.

One of the challenges is integrating all this but also sending additional capacity that might be created in a decentralized way to the grid whereby companies — and people — become sellers of energy as well as buyers.

Isolated microgrids also enable to minimize impact of potential disruption. The aspect of workforce reduction is indeed important as well.

It is expected that smart grids will need very little workers as they become the true self-sufficient systems they are aimed to be. It is less emphasized in definitions offered by national and international instances working on smart grids whereby mainly the benefits are addressed some more challenges are mentioned at the bottom of this article.

It introduces a two-way dialogue where electricity and information can be exchanged between a utility and its customers. The EU defines a smart grid as follows: a smart grid is an electricity network that can cost-efficiently integrate the behavior and actions of all users connected to it — generators, consumers and those that do both — to ensure economically efficient, sustainable power system with low losses and high levels of quality and security of supply and safety.

The benefits of a smart grid include improved efficiency and reliability of the electricity supply, integration of more renewable energy into existing network, supporting the development of electric vehicles at scale, new solutions for customers to optimize their electricity consumption and reduction of carbon emissions.

According to the EU a smart grid employs innovative products and services together with intelligent monitoring, control, communication, and self-healing technologies to:. Similar smart grid definitions exist in other regions through the world where smart grid initiatives exist which is the case for most countries, obviously including the US.

The U. It sums up some benefits associated with the Smart Grid again, the initiative, but you can expand it to smart grids overall :.

Obviously, there are also challenges regarding the movement to a smart grid. Some were addressed earlier in this overview.

Additional ones include consumer concerns privacy and personal data protection and cybersecurity. A second challenge is certainly the overall cybersecurity aspect which is typical in all industrial environments where digitization and digital transformation are ongoing, data become key and IT and OT converge IT stands for information technology, OT for operational technology.

Smart grids will increase network flexibility by the development of additional intelligence e. temperature control of transformers, real time thermal monitoring of cables, etc integrated within network equipments and will improve the existing communication systems EU Commission Task Force for Smart Grids.

Additional challenges in smart grids include regulatory changes, the complexity in integrating sources, systems and partnerships between various players in a deregulated market, the local situation whereby a selected number of large companies often still dominate and changing attitudes among prosumers.

The goal of this article was to introduce smart grids and explain the essence of the smart grid concept we call it a concept as there is no real smart grid yet. However, there is of course more to it given the sheer complexity of electrical grids, the involved components and the many stakeholders.

OE leads national efforts to develop the next generation of technologies, tools, and techniques for the efficient, resilient, reliable, and affordable delivery of electricity in the U. Legislative Mandates In December , Congress passed, and the President approved, Title XIII of the Energy Independence and Security Act of EISA.

EISA Section established at DOE the Smart Grid Advisory Committee and Federal Smart Grid Task Force. Grid Modernization Initiative. Grid Modernization Laboratory Consortium. Smart Grid Investment Grant SGIG Reports. Smart Grid Demonstration Project SGDP Reports.

SGIG and SGDP Case Studies. Office of Electricity Projects Technology Development Grid Modernization and the Smart Grid.