Smart grid -- facts and myths

What is smart grid?

We have to first understand electrical grid before moving to smart grid.
Electrical grid is an interconnected network used for delivering electricity to its customers. It consists of:

• Power stations that generates electricity
• Transmission lines
• Distribution lines
• Transformers
• Capacitor banks to improve power factor
• Switchgears, circuit breakers and relays

With the help of analogue or digital signals, smart grid gathers information at various nodes of electrical grid. This information could be:

• Voltage 
• Current
• Power factor
• Frequency
• Harmonics
• Transmission losses
• Distribution losses

Above information can be used in various ways:

• Handle abnormal situations -- Smart grid would detect abnormal situations and initiate signals. Circuit breakers and relays would operate as per these signals to isolate problematic areas in electrical grid. In non-smart electrical grids, electromechanical circuit breakers and relays provide the same function. However, accuracy and reliability would be better with smart grid
• Big data and Business Intelligence -- Smart grid data can be supplied to IT systems. IT systems would then analyse this data to find out electricity supply- demand trends.
• Centralised view of electrical grid – Smart grid would pass above information to a centralised location, where one can see graphical view of electrical grid with various parameters

What is not smart grid?

• Smart grid does not generate, transmit or distribute electricity.
• Smart grid does not store electricity
• Smart grid can measure transmission and distribution losses.  However, it cannot reduce transmission or distribution losses
• There is no direct relation between smart grid and renewable energy sources.
• Smart grid can find out more about fluctuating demand.  However, it cannot easily control electrical supply.