Smart Grid and Grid-Connected Systems

Part1: The Basic of Smart Grid and Grid-Connected

Systems

Chapter 1: Introduction to the Smart Grid Concept

Author(s) Dr. Adib Allahham and Dr. Neal Wade

Organisation name(s) UNEW

WP Number 3

WP Leader UNEW

Due date of delivery March 15th,2019 Project month

Submission date Project month

Total number of pages

Project co-ordinator
Dr. Adib Allahham
Newcastle University (UNEW)
School of Engineering, Merz Court, Newcastle University, NE1 7RU, Newcastle Upon Tyne, UK
Tel: +44 (0) 191 208 4800
Email: Adib.Allahham@newcastle.ac.uk

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Review Table

Version Date of Submission Quality check Technical check

Reviewer Date Reviewer Date

V01 15/01/2019

V02 24/10/2019 Hani Muhsen 26/10/2019 Hani Muhsen 26/10/2019

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 Smart Grid and Grid-connected Systems

Prepared by:
Dr. Adib Allahham
Dr. Neal Wade

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Abbreviations

AD Active Demand

ADDRESS Active distribution network with full integration of demand and distributed energy resources

CVPP Commercial Virtual Power Plant

DN Distribution Network

DER Distributed Energy Resources

DSO Distribution System Operator

EV Electric Vehicle

FENIX Flexible electricity networks to integrate the expected energy evolution

ICT Information and Communication Technology

LV Low Voltage

MV Medium Voltage

PV Photovoltaic

RES Renewable Energy Sources

SDN Smart Distribution Network

TSO Transmission System Operator

VPP Virtual Power Plant

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Contents
Smart Grid and Grid-Connected Systems ............................................................................................................................................... 1
Review Table .......................................................................................................................................................................................... 2
CHAPTER 1: Introduction to the Smart Grid Concept ............................................................................................................................ 1
1.1 Definition of the Smart Grid ................................................................................................................................................. 1
1.2 Characteristics of the Smart Grid ......................................................................................................................................... 2
1.3 Smart Grid benefits .............................................................................................................................................................. 3
1.4 Comparison between Smart and conventional distribution networks ................................................................................ 4
1.4.1 Why distribution networks need to be smart .................................................................................................................. 5
1.5 Evolution distribution networks into Smart Grids ....................................................................................................................... 6
1.5.1 Flexible electricity networks to integrate the expected energy evolution (FENIX) ............................................................... 6
1.5.2 Active distribution network with full integration of demand and distributed energy resources (ADDRESS) ....................... 8
3.1 Summary .............................................................................................................................................................................. 9
References ........................................................................................................................................................................................... 10

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List of Figures
Figure 1 : The concept of VPP [14] ......................................................................................................................................................... 7
Figure 2: Typical inputs and outputs of a CVPP [14] .............................................................................................................................. 8
Figure 3: Simplified representation of ADDRESS architecture [15] ....................................................................................................... 9

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 CHAPTER 1: Introduction to the Smart Grid Concept

This chapter presents the basic concept of the smart grid, and its characteristics and benefits. Furthermore,
the smart distribution networks will be compared with the conventional ones. This chapter also presents some
projects and initiatives of smart grids in Europe and the US.

Definition of the Smart Grid

Smart Grid concept is first defined in an article published in July 2001 in Wired Journal [1] by giving the
description of the future electric network; then this concept is developed in Europe, India, China, North
America, and South Africa.
Many organizations and researchers have worked since 2001 to define the Smart Grid. This definition was
viewed from the perspective of either solutions, components or the capabilities and operational
characteristics of Smart Grid. In the following, a selected set of Smart Grid definitions will be given:
The IEC development organization defines the Smart Grid as [2]:
“The Smart Grid is integrating the electrical and information technologies in between any point of
generation and any point of consumption.”
In an article published in IET Engineering and Technology (E&T) magazine [3], the Smart Grid was defined as:
“A smart grid is an electricity network that uses digital and other advanced technologies to monitor
and manage the transport of electricity from all generation sources to meet the varying electricity
demands of end-users. Smart grids co-ordinate the needs and capabilities of all generators, grid
operators, end-users and electricity market stakeholders to operate all parts of the system as
efficiently as possible, minimizing costs and environmental impacts while maximizing system reliability,
resilience and stability”.
Cisco developed its definition to Smart Grid [4]:
“A Smart grid is the term generally used to describe the integration of all elements connected to the
electrical grid with an information infrastructure, offering numerous benefits for both the providers
and consumers of electricity”.
European Technology Platform proposed the following definition [5]:

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 “A Smart Grid is 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”.
In this module, the following definition by Salman will be adopted and used [6]:
“A smart grid is an electricity network that uses digital and other advanced technologies, such as
cyber-secure communication technologies, automated and computer control systems, in an
integrated fashion to be able to monitor and intelligently and securely manage the transport of
electricity from all generation sources to economically meet the varying electricity demands of end-
users.”
From these definitions, it can be seen that the smart Grid is the concept can be separated into the requirement
to:
- Coordinate the energy demand and generation,
- Meet the needs of network operators, different consumers, and stakeholders,
- Operate the different parts of the network efficiently by minimizing the operational cost and
environmental impacts and maximizing the system safety, reliability, resilience, and stability to
monitor and intelligently and securely manage the transport of electricity.

Characteristics of the Smart Grid

The main characteristics of Smart Grid have been identified by the many researchers and organisations
involved in the field of Smart Grid. The methods used to define the Smart Grid characteristics are based on
the functionality approach and the broad approach [6].
According to the functionality approach, the main characteristics of Smart Grid are [7, 8]:
- Optimal use of network assets.
- Full integration of a wide range of generation and storage facilities.
- High power quality.
- Fast response to system disturbances.
- Robust and resilient operation against physical and cyber-attacks and natural disasters.
- Increased role of consumers.
- Opportunities for new products, services, and markets.

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While those based on the broad approach [8, 9] are as follows:
- Adaptive and self-healing: Adaptive means the Smart Grid responds rapidly to changes in operating
conditions with less reliance on manual operators. Self-healing means the Smart Grid has the ability to
isolate faulty equipment and reconfigure the system to maintain energy supply to the customers.
- Flexible: The Smart Grid being flexible means it can interconnect distributed generators and energy
storage facilities to the system at no matter when.
- Predictive: This means that the conditions that could lead to system faults or constraints can be
identified and avoided before they occur.
- Integrated: This means that the grid has a communication system and control functions to make the
many components of the grid behave as one entity.
- Interactive: This means the Smart Grid has the capability to provide information about the systems
status to the operator and to the consumers. This is to enable the consumers to be prosumers
(producers and consumers).
- Optimized: Given that the status of major components is known in real-time and the system has the
appropriate control functions, the Smart grid being optimal means the ability to operate the system
with maximal reliability and efficiency, and minimal cost.
- Secure: Given the Smart Grid has a two-way communication system, the Smart Grid being secure
means that all the critical assets must be protected from the physical and cyber-attacks.

Smart Grid benefits

The benefits from Smart Grid can be classified into three main categories: technical, environmental, and
economical [6].
The technical benefits of Smart Grid include the following issues:
- Improve the energy efficiency by reducing the different losses in the system.
- Improve the grid reliability by reducing the frequency and duration of power interruptions.
- Improve the operational efficiency by using active control, automation, and management services in
distribution grids and by empowering customers through home automation and the use of smart
appliances.

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 - Improve the security and safety by reducing the threats of blackouts and by reducing the vulnerability
of the grid to unexpected hazards and promoting a safer system for workers or general public.
- Improve quality of supply by maintaining voltage magnitude within their statutory limits.
- Improve the access to the grid for the distributed energy resources (DERs), and electric vehicles (EVs).
The environmental benefits of Smart Grid are the reduction of carbon emissions and deceleration of climate
change. These benefits are achieved due to reduction in losses, integration of renewable energy sources (RES),
the use of electric vehicles (EV) and heat electrification.
The main economic benefit of the Smart Grid is the lowest cost way to get a reliable and low carbon electricity
system. This benefit is achieved due to interaction between the suppliers and consumers, and consequently
creating a competitive electricity market. Other factors to achieve this benefit are: the reduction in the
electricity cost which is exposure to international prices due to increased indigenous energy production, and
the reduced balancing services costs though flexibility services from DERs.

Comparison between Smart and conventional distribution networks

The main characteristics of a conventional distribution network (DN) are [10]:
- Passive,
- Unidirectional power flow from the generation through the transmission and distribution networks to
the consumers,
- Improving the energy availability and continuity by focusing on MV feeder automation. This can be
achieved by (a) ensuring medium voltage (MV) fault location when a feeder is subjected to a fault
condition, (b) reconfiguration of the distribution network as required by network’s condition,
- No interaction between the network and consumers connected to it.
In contrast, the main characteristics of a smart distribution network (SDN) are [10]:
- Active,
- Able to give broader access to distributed energy resources (DERs) including renewable energy sources
(RESs),
- Bidirectional power flow resulting from the integration of DERs,

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 - Feeder automation is smarter. This can be achieved by (a) locate MV faults under multidirectional
power flow as well as the ability to monitor the power flow and (b) perform energy demand
management in terms of LV load management and monitoring transformer temperature overload,
- Capable of providing the environment for consumers to interact with it and with the market [11].

1.4.1 Why distribution networks need to be smart

The need to smarten the distribution networks are motivated by several developments affecting the
distribution network. These developments are:
1 Liberalization of the electricity market [12],
2 High penetration of distributed energy resources, including renewable energy sources, into distribution
networks. This leads to the transformation of the networks and its management system from being
passive into active [12],
3 Domestic appliances are becoming smarter. In addition, the industrial and commercial customers who
are seeking payment for the provision of network services, become also smarter.
To meet these developments, the functionality of distribution network must be smart at the following four
levels [13]:
a) Distribution network level: At this level, the network must be equipped by facilities aiming at: (i)
making the MV distribution networks more automated with self-healing capabilities, (ii) increased
monitoring and control at LV. These facilities include information and communication technology (ICT)
infrastructure.
b) Integration level: At this level, the distributed energy resources, including renewable energy sources,
electric vehicles, and electricity storage will be integrated efficiently into the distribution networks.
c) Energy management level: At this level, the end-use energy efficiency, aggregation, and retail are
managed.
d) Customers’ level: One of the main aims of Smart Grids is to enable customers to participate in the
operation of the distribution network. Given that, the distribution network must be able to deal with
these smart customers.

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1.5 Evolution distribution networks into Smart Grids
In this section, two projects will be presented to show the way to transform existing distribution networks to
be smart. These projects which were launched by the EU, are FENIX [14] and ADDRESS [15]

1.5.1 Flexible electricity networks to integrate the expected energy evolution (FENIX)

The DER/RES are usually integrated at the distribution networks and the operators of these networks must
manage directly the resources. The management of these DER/RES units is a difficult task as they are
numerous. To solve this problem, the concept of Virtual Power plant (VPP) was developed. This concept is
based on clustering the DER/RES units into a portfolio to be similar to a classical generator connected to the
transmission network.
The concept of virtual power plant, is defined as [14, 16, and 17]:
“A Virtual Power Plant (VPP) aggregates the capacity of many diverse DERs, it creates a single
operating profile from a composite of the parameters characterizing each DER and can incorporate
the impact of the network on aggregate DERs output. A VPP is a flexible representation of a portfolio
of DERs that can be used to make contracts in the wholesale market and to offer services to the
system operator. There are two types of VPP, the Commercial VPP (CVPP) and the Technical VPP
(TVPP). DERs can simultaneously be part of both a CVPP and a TVPP.”
Figure 1 illustrates the concept of VPP. The network in Figure 1.a, is aggregated together and represented as
an equivalent single generator/load system connected at 400 kV transmission voltage point, as shown in
Figure 1.b. The equivalent generator has the same characteristics as the original network, which are: output,
reserve, response, and cost.

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 Figure 1: The concept of VPP [14]

There are two main types of VPP: commercial (CVPP) and technical (TVPP). The CVPP is used to participate in
the energy market as a classical generator connected to the transmission network.
Figure 2 shows the inputs and outputs of the CVPP. From this figure, the functionalities of CVPP can be
summarized by:
 Energy trading and balancing the energy market, and
 Providing services that do not require the generators to be in a specific location.
In TVPP, the DERs located in the same geographic area are aggregated to offer services to the grid [18]. It
consists of distributed energy units located at the same geographic area in which the TVPP aggregates and
models the response characteristics of DERs, and loads. The functionality of TVPP includes:
 Providing a service to the DSO by performing energy management in the considered geographical area,
and
 Providing ancillary services to the TSO.
To provide these functionalities, the operator of a TVPP requires detailed information about the local network,
which makes DSO the best candidate to take this role.

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 Figure 2: Typical inputs and outputs of a CVPP [14]

1.5.2 Active distribution network with full integration of demand and distributed energy resources
(ADDRESS)

ADDRESS was cofounded by the European Commission in 2008 and aimed to develop a commercial and
technical framework for the development of ‘‘Active Demand’’ (AD) which means the active participation of
domestic and small commercial consumers and prosumers in the electricity markets and in the provision of
services to the other electricity system participants. AD involves all types of equipment that may be installed
at the consumers’ premises including electrical appliances, generators, such as PV or micro-turbines, and
energy storage systems. Figure 3 shows a simplified representation of the ADDRESS architecture [15, 18]. In
this architecture, there are the consumers/prosumers, who offer their ‘‘demand flexibilities’’ to sell, and there
are the markets that want to get these flexibilities. The aggregator which can be considered as the main player
in this architecture intervenes between consumers/prosumers and the markets. In other words, it may be said
that the aggregator purchases consumers’/prosumers’ flexibility, packages it into tradable AD products, and
then sells these products on the markets to electricity system participants. In this context, ‘‘demand flexibility’’
is equal to modifications in consumes’ consumption and/or prosumers’ electricity production. This implies
that an aggregator [15]:
 Behaves as an intermediate agent between the two actors (the consumers and the prosumers) of the
flexibility market,
 Should have a high level of understanding of the consumers and prosumers involved in the Active
Demand market, and

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  Should be able to manage the problems of the price and quantity associated with the Active Demand
framework.

Summary
This chapter introduced the concept of Smart Grids and presented a survey of the definition of the Smart
Grids. One of these definitions is adapted to be used in this module. The main characteristics, reported by the
main players in this field are also defined and classified according to two approaches: functionality approach
and broad approach. The technical, environment and electricity retail benefits of Smart Grids are covered in
this chapter.
The main differences between conventional and smart distribution networks are outlined. Finally, two EU
projects namely, FENIX and ADDRESS, have been presented to show the initiatives to evolve the conventional
distribution networks into smart ones. These two projects lead to introduce the concepts of Virtual Power
Plant (VPP) and the Active Demand.

Figure 3: Simplified representation of ADDRESS architecture [15]

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References
1. Silberman S. The energy web [Online]. Wired Magazine. July 2001. Available from
http://www.wired.com/wired/archive/9.07/juice_pr.html
2. IEC. IEC Smart Grid standardization roadmap [Online]. IEC; 2010. Available from
http://www.iec.ch/smartgrid/downloads/sg3_roadmap.pdf [Accessed 16 November 2015]
3. Davies S. ‘Network evolution: developing a modern, intelligent power grid’. E&T Magazine. 2012;
7(4):52–5
4. Cisco. Why Cisco and Smart Grid? [Online]. 2009. Available from
http://www.cisco.com/cisco/web/UK/solutions/strategy/energy/pdfs/sGrid_qa_c67_532319.pdf
[Accessed 21 September 2015]
5. European Technology Platform. SmartGrids: strategic deployment document for Europe’s electricity
networks of the future [Online]. European Commission; 2010.
6. Salman, S.K., 2017. Introduction to the Smart Grid: Concepts, Technologies and Evolution (Vol. 94). IET.
7. Miller J. Structuring the smart grid framework: application of complex systems engineering [Online].
US DOE/NETL Modern Grid Team; 2009. Available from
http://www.smartgrid.gov/sites/default/files/pdfs/structuring_smart_grid_framework_05-2009.pdf
[Accessed 16 November 2015]
8. ABB. Towards a Smarter Grid—ABB’s vision for the power system of the future [Online]. USA: ABB;
2009.
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IEEE. 2011; 99(6):917–21
10. Pipet P. Power distribution automation solution-smart grid data aggregation [Online]. 2011.
IEA/ADEME Workshop XVII; May 2011.
11. Li J., Meng X., and Song X. ‘Research on technical framework of smart distribution network’. IEEE
International Conference on Advanced Power System Automation and Protection (APSAP); Beijing,
2011, pp. 286–90
12. Djapic P., Ramsay C., Pudjianto D., et al. ‘Taking an active approach’. IEEE Power and Energy Magazine.
2007;5(4):68–77
13. Entsoe. European Electricity Grid Initiative (EEGI) Roadmap and Implementation plan, Version V2
[Online]. May 2010.
14. EU. Flexible electricity networks to integrate the expected energy evolution [Online]. 2009.
15. Belhomme R., Sebastian M., Diop A., et al. ADDRESS technical and commercial architecture [Online].
European Community’s Seventh Framework Programme (PF7); October 2009. Available from
http://www.addressfp7.org/config/files/ADD-WP1_Technical_and-Commercial_Architectures.pdf
[Accessed 20 October 2016]
16. Pudjianto D., Ramsay C., and Strbac G. ‘Virtual power plant and system integration of distributed
energy resources’. IET Renewable Energy Generation. 2007; 1(1):10–16

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17. Kieny C., Berseneff B., Hadjsaid N., Besanger Y., and Maire J. ‘On the concept and the interest of Virtual
Power plant: some results from the European project FENIX’. IEEE Power & Energy Society General
Meeting (PES’09); 2009. pp. 1–6
18. Kostic T., Effantin C., and Lambert E. ‘How to increase interoperability in European Smart Grid projects?
The ADDRESS experience regarding model driven integration based on international standards’. IEEE
International Energy Conference and Exhibition (ENERGYCON); Florence, 2012, pp. 652–57

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