ELE461

SMART GRIDS
Lecture #1
Introduction to Smart Grid
• Evaluation of electric grid
• Definitions and need for smart grid,
• Working of smart grid and associated
concepts
• Traditional power grid and smart grid
• New technologies for smart grid
• Indian smart grid
• Opportunities, challenges and benefits of
smart grids
 Evaluation of electric grid
Competing technologies for electrification in 1880s:
• Edison:
• dc.
• Relatively small power plants (e.g. Pearl Street Station).
• No voltage transformation.
• Short distribution loops – No transmission
• Loads were incandescent lamps and possibly dc motors (traction).

Pearl Street Station:

6 “Jumbo” 100 kW, 110 V
generators
 Evaluation of electric grid
Competing technologies for electrification in 1880s:
•Tesla:
• ac
• Large power plants (e.g. Niagara Falls)
• Voltage transformation.
• Transmission of electricity over long distances
• Loads were incandescent lamps and induction motors.

Niagara Falls historic power plant:

38 x 65,000 kVA, 23 kV, 3-phase
generatods
 Evaluation of electric grid

Edison’s distribution system characteristics: 1880 – 2000 perspective

• Power can only be supplied to nearby loads (< 1mile).

• Many small power stations needed (distributed concept).

• Suitable for incandescent lamps and traction motors only.

• Cannot be transformed into other voltages (lack of flexibility).

• Higher cost than centralized ac system.

• Used inefficient and complicated coal – steam actuated generators (as

oppose to hydroelectric power used by ac centralized systems).

• Not suitable for induction motor.

Evaluation of electric grid
Traditional technology: the
electric grid:
• Generation, transmission, and
distribution.
• Centralized and passive
architecture.
• Extensive and very complex
system.
• Complicated control.
• Not reliable enough for some
applications.
• Relatively inefficient.
• Stability issues.
• Vulnerable.
• Need to balance generation and
demand
• Lack of flexibility.
 Evaluation of electric grid
Conventional grids operation:
• In order to keep frequency within a tight stable operating range generated
power needs to be balanced at all time with consumed power.

• A century working around adding electric energy storage by making the grid
stiff by:
• Interconnecting many large power generation units (high inertia =
mechanical energy storage).
• Individual loads power ratings are much smaller than system’s capacity

• Conventional grid “stiffness” make them lack flexibility.

• Lack of flexibility is observed by difficulties in dealing with high penetration of

renewable energy sources (with a variable power output).

• Electric energy storage can be added to conventional grids but in order to

make their effect noticeable at a system level, the necessary energy storage
level needs to be too high to make it economically feasible.
 Smart grid Objective
• Uses information technologies to improve how
electricity travels from power plants to consumers
• Allows consumers to interact with the grid
• Integrates new and improved technologies into the
operation of the grid
 Smart grid Definition
NIST-USA
• A modernized grid that enables bidirectional flows of energy and
uses two-way communication and control capabilities that will
lead to an array of new functionalities and applications.
IEEE
• Smart grid is a large ‘System of Systems’, where each functional
domain consists of three layers: (i) the power and energy layer, (ii)
the communication layer, and (iii) the IT/computer layer.
• Layers (ii) and (iii) above are the enabling infrastructure that
makes the existing power and energy infrastructure ‘smarter
Need for Smart Grid
Need for Smart Grid
 Need for Smart Grid
Characteristics of Modern Power System
• Wide geographical spread (due to typical large distance between major
load centres and conventional sources of energy).
• Large number of interconnections (due to political, economic,
environmental, reliability, and stability issues).
• Rapid growth in the demand of electricity (due to increase in
population, standard of living, development of townships).
• Power system components are being operated closer to their designed
limits (more investment needed in the electrical infrastructure).
• High penetration of renewable energy sources (intermittency, relay
coordination, power quality, system stability).
• Competitive electricity market (needs real time monitoring and strict
regulation).
 Need for Smart Grid
• Increased use of digital information to improve reliability, security, and
efficiency of the electric grid.
• Optimization of grid operations with full security.
• Categorization of distributed resources including renewable resources.
• Development and incorporation of demand response, demand-side
resources, and energy-efficiency resources.
• Development and integration of advanced electricity storage and peak
shaving technologies including plug-in electric vehicles and thermal
storage air conditioning.
• Integration of `smart’ appliances and consumer devices.
• Timely information and control options to customers.
• Identification and lowering of unreasonable or unnecessary barriers to
adoption of smart grid technology.
 Working of Smart Grid
The smart grid is an advanced digital two-way power flow power system
capable of self-healing and adaptive resilient and sustainable with
foresight for prediction under different uncertainties. It is equipped for
interoperability with present and future standards of components, devices
and systems that are cyber-secured against malicious attack.

• Assess grid health in real time

• Predict behavior anticipate
• Adapt to new environment like distributed recourses and renewable
energy resources
• Handle stochastic demand and response to smart appliances
• Provide self-correction, reconfiguration and restoration
• Handle randomness of loads and markets participants in real time
• Create more complex interactive behaviour with intelligent devices,
communication protocols and standard and smart algorithms to
improve smart communication and transportation systems
Smart Grid vs Traditional Grid
 Smart Grid Attributes
• Information-based
• Communicating
• Secure
• Self-healing
• Reliable
• Flexible
• Cost-effective
• Dynamically controllable
Smart Grid domains: Generation
• Co-existence of various types of renewable and non-renewable generating technologies,
such as coal, hydro, nuclear, solar, biomass, geothermal, etc.
• System operator has to coordinate the operation of the generation plants, and ensure
the stable and secure operation of the system.
• Wide-area measurement system (WAMS) enabled by communication technologies need
to be used to control the operation of the generating stations. WAMS based power
system stabilizer is one such example.
• Communication infrastructure needs to be in place between the generating facilities and
the system operator, electricity market, and the transmission system
 Smart Grid domains:
Transmission
• Energy-efficient transmission network will carry the power from the bulk generation facilities
to the power distribution systems.

• Communication interface exists between the transmission network and the bulk-generating
stations, system operator, power market, and the distribution system.

• The transmission network needs to be monitored in real-time, and protected against any
potential disturbance.

• The power flow and voltage on the lines need to be controlled in order to maintain stable and
secure operation of the system.

• An important task of the system operator is to ensure optimal utilization of the transmission
network, by minimizing the losses and voltage deviations, and maximizing the reliability of the
supply.
 Smart Grid domains:
Distribution
• Substation automation and distribution automation will be the key enablers for the smart
distribution systems.

• Increasing use of distributed energy resources (DERs) will be an important feature of future
distribution systems.

• Distribution system operator typically controls the distribution system remotely.

Communication infrastructure to exchange information between the substations and a central
distribution management system (DMS) therefore should be in place.

• An important job of the distribution system operator is to control the DERs in a coordinated
way to ensure stability and power quality of the distribution system.

• Information exchange between the distribution system operator and the customers for better
operation of the distribution system is a new feature of the smart distribution systems
 Smart Grid domains: Customer
• Customers can be classified into three main categories: residential, commercial,
and industrial.

• In smart grids, customers are going to play a very important role through
demand response. By peak-load shaving, valley-filling, and emergency
response, customers are going to play an active role in better operation of the
distribution system

• Building or home automation system will monitor and control the power
consumption at the consumer premises in an intelligent way.

• Proper communication infrastructure will be required for the consumers to

interact with the operators, distribution systems, and the market
New technologies for Smart grid
• ​Advanced Metering Infrastructure (AMI)

• ​Demand Response (DR)

• Distributed Generation (DG)

• ​Home Area Network​ (HAN)

• ​Communication​

• ​Cyber Security

• Electric Vehicles (EV)

• Electric Energy Storage (EES)

 ​Advanced Metering Infrastructure
(AMI)
• AMI (Advanced Metering Infrastructure) is the collective term to
describe the whole infrastructure from Smart Meter to two way-
communication network to control center equipment and all the
applications that enable the gathering and transfer of energy usage
information in near real-time. AMI makes two-way communications
with customers possible and is the backbone of smart grid. The
objectives of AMI can be remote meter reading for error free data,
network problem identification, load profiling, energy audit and
partial load curtailment in place of load shedding.
 ​Advanced Metering Infrastructure
(AMI)
The overarching technological components of AMI include:

• Smart Meters- Advanced meter devices having the capacity to collect information about energy, water, and gas
usage at various intervals and transmitting the data through fixed communication networks to utility, as well as
receiving information like pricing signals from utility and conveying it to consumer.

• Communication Network: Advanced communication networks which supports two way communication enables
information from smart meters to utility companies and vice-versa. Networks such as Broadband over Powerline
(BPL), Power Line Communications, Fiber Optic Communication, Fixed Radio Frequency or public networks (e.g.,
landline, cellular, paging) are used for such purposes.

• Meter Data Acquisition System- Software applications on

the Control Centre hardware and the DCUs (Data
Concentrator Units) used to acquire data from meters via
communication network and send it to the MDMS

• Meter Data Management System (MDMS): Host system

which receives, stores and analyzes the metering
information.
 Demand Response (DR)
Demand response is a strategy used by electric utility companies to reduce or shift energy consumption from
peak hours of the day, when the demand for electricity is the greatest to leaner demand periods. It involves
allowing customers to choose non-essential loads, which can be shed by the customers themselves or by the
utility, at peak times. It is a pre-arranged agreement between the Utility or intermediate agencies like
aggregators with the consumer with specific conditions of load, price and time intervals. There are three main
types of demand response which includes emergency demand response, economic demand response, and
ancillary services demand response..

Emergency Demand Response is used to mitigate the potential for blackouts during times when demand
threatens to exceed supply resources. This typically occurs on days of extreme hot or cold temperatures when
heating and cooling systems are causing greater demand on the grid.

Economic Demand Response is employed by utilities to avoid the significantly higher costs of producing energy
during peak demand times of the day that is associated with ramping up "peaking" power plants to meet higher
than expected demand.

Ancillary Service Demand Response is used to support the transmission of electricity to loads in a manner
consistent with reliability requirements that are imposed on utility companies by industry regulators.
 Distributed Generation
When energy is generated and distributed using small scale technologies closer to its end users, it is termed as

Decentralized Generation. These generations are based on the technologies, mainly renewable, including but not

limited to, wind turbines, photovoltaic cells, geothermal energy and micro hydro power plants. Onsite power

generation has many benefits over the centralized power generation systems, as it eliminates the costs

associated with the transmission and distribution of power over long distances. These small scale technologies

can yield power from 1KW to as much as 100MW.

 Distributed Generation
Technologies for Decentralized Generation

A decentralized generation system is very flexible, as it can be based on renewable or non-renewable energy

sources. The decentralized generation technologies include but are not limited to the following:

• Reciprocating Engines

• Microturbines

• Combustion Gas Turbines

• Fuel Cells

• Photovoltaics (PV)

• Wind Turbines

Ref: http://www.indiasmartgrid.org/Distributed-Generation.php
 Home Area Network
The HAN is a subsystem within the Smart Grid dedicated to demand-side management (DSM), and includes

energy efficiency and demand response which are the key components in realizing value in a Smart Grid

deployment. A few examples of demand-side management applications are:

• Behavioral energy efficiency

• Technology-enabled dynamic pricing

• Deterministic direct load control.

 Communication
One of the major differences between the current electrical grid and the proposed smart grid will be the addition

of intelligence to the system.

The smart grid will enhance and extend the features and functions of the current grid equipment with the

implementation of intelligent electronic devices (IEDs). These IEDs will not only provide more detailed

information but also bi-directional communications. The new multifunction electronic meters, intelligent relays

and control units will then be able to exchange information with a provider's central control systems.

This enhanced communication will help both grid operators and consumers to make more informed decision and

extend the functionality of the monitoring systems to not only collect information but to use it to help automate

control of the grid and thus reduce the need for human intervention.
 Communication
Current telecommunications technologies can be divided into four categories:

Landlines: including analogue subscriber lines, digital subscriber lines, coaxial cable, and fiber optics.

Wireless: including cell phone communications systems and Wi-Fi.

Private radio: including trunk mobile dispatching channels and meshed meter networks.

Power Line Carrier encompassing traditional power line carriers between substations and the new technology of

broadband-over-power line at the distribution segments.

 Cyber Security
​The smart grid is a digital infrastructure that sits on top of the already existing electrical grid. This serves to

monitor grid conditions, energy consumption and generation as well as automate many of its operations.

Overlaying a data network isn't just a minor upgrade to the electrical grid but will be a revolution in the ways that

utilities generate and distribute energy, and consumers consume electricity. The aims and goals of the smart grid

are but not limited to:

• Improve the reliability of the electrical grid

• Improve its overall efficiency

• Lower costs of distribution and generation

• Allow for real time monitoring of the electrical grid

With the advent of cyber-crime there is also a concern for security especially where communication is

concerned. Though cyber-threat is associated with all aspect of smart grid domains including smart grid devices,

the chief concern is along the communication technologies that are the heart of the smart grid. Designed for

real-time contact, each of these smart devices will offer a new vector of attack that could be exploited if not

handled cautiously.
 Electric Vehicles
​Flexibility and low initial costs mean that motorized transport based on the internal-combustion engine (ICE), has

come to dominate the markets for passenger and freight transportation across the globe. The recent rapid

growth in the number of vehicles, together with the limited implementation of emission control technologies,

have made ICEs the major source of urban air pollution in the developing world.

The large-scale introduction of electric vehicles is seen as a critical part of the solution to this problem of

emissions. Electric engines produce no tailpipe carbon emissions and the energy they consume is increasingly

being produced from renewable energy sources. Electric engines are also more efficient than ICEs and can help

decrease energy use. Both features help to reduce the emissions from energy production.

In addition, electric vehicles can be plugged into the electric grid when not in use so they have the potential to

become an important element in the Smart Grids being developed. These battery powered vehicles can be used

to even out the demand for electricity by supplying energy to the grid from their batteries during peak use

periods during the day while charging mostly at night, when there is unused generating capacity. This Vehicle to

Grid (V2G) connection has the potential to reduce the requirements for new power plants.
 Electric Energy Storage (EES)
​Till about a few years ago, we thought that electricity cannot be stored and needs to be consumed as and when

it is generated. Times are changing; today electricity can be stored in megawatt scale thanks to developments

made in storage technologies and solutions. These electricity energy storage (EES) applications are increasingly

becoming viable around the world.

The smart grids are expected to be the biggest achievement of the 21st century! And energy storage

technologies are going to be an important part of it. .

 Electric Energy Storage (EES)
​Till about a few years ago, we thought that electricity cannot be stored and needs to be consumed as and when

it is generated. Times are changing; today electricity can be stored in megawatt scale thanks to developments

made in storage technologies and solutions. These electricity energy storage (EES) applications are increasingly

becoming viable around the world.

The smart grids are expected to be the biggest achievement of the 21st century! And energy storage

technologies are going to be an important part of it. .

 SMART GRID IN INDIA
NEED OF SMART GRID
• According to the Ministry of Power, India’s transmission and distribution losses are amongst the highest in

the world, averaging 26 per cent of total electricity production, and as high as 62 per cent in some states.

These losses do not include non-technical losses like theft etc.; if such losses are included, the average

losses are as high as 50 per cent.

• India losses money for every unit of electricity sold, since India has one of the weakest electric grids in the

world. Some of the technical flaws in the Indian power grid are - it is a poorly planned distribution

network, there is overloading of the system components, there is lack of reactive power support and

regulation services, there is low metering efficiency and bill collection, etc.
 SMART GRID IN INDIA
NEED OF SMART GRID
• India is venturing very fast into renewable energy (RE) resources like wind and solar. Solar has great

potential in India with its average of 300 solar days per year. The government is also giving incentives for

solar power generation in the form of subsidies for various solar applications; and has set a goal that solar

should contribute 7 per cent of India’s total power production by 2022. With such high targets, solar is

going to play a key role in shaping the future of India’s power sector.

• With such unpredictable energy sources feeding the grid, it is necessary to have a grid that is highly

adaptive (in terms of supply and demand). Hence, the opportunities for building smart grids in India are

immense, as a good electric supply is one of the key infrastructure requirements to support overall

development.
 SMART GRID IN INDIA
NEED OF SMART GRID
• India has also recently launched a National Mission on Electric Mobility with a target of 6 million electric

vehicles (4 million two-wheelers and 2 million four-wheelers) by 2020. For efficient rollout of the EV

program, electrical distribution infrastructure upgrades and smarter systems are required which will

control/limit simultaneous charging of hundreds of EVs from the same feeder

• Realizing the growing importance of smart grid technologies in the Indian power sector, the Ministry of

Power (MoP) had taken early steps in 2010 by constituting the India Smart Grid Task Force (ISGTF), and the

India Smart Grid Forum (ISGF), a public-private partnership initiative. The mandate of both these agencies

is to advise MoP on appropriate policies and programs for accelerated development of smart grids in India.

One of the key tasks under taken by ISGTF and ISGF is to formulate a comprehensive smart grid vision and

roadmap for India. The draft roadmap prepared by ISGTF and ISGF is in alignment with Ministry of Power's

overarching policy objectives of “access, availability and affordability of power for all” .
SMART GRID IN INDIA
SMART GRID IN INDIA
 Challenges
Inadequacies in grid infra structure
• In developing countries like India, the grid infrastructure is still evolving. The existing grid network is

inadequate to accommodate the upcoming needs of clean energy and distributed generation which may

throw several challenges in design, erection, operation and maintenance. Besides focusing on SG, there is

also a need to address issues of existing grid infra structure. In India, several electrical parts of country are

unevenly connected to national grid in order to optimally evacuate large wind farms or solar parks which

otherwise demand for installation of entire infrastructure. In this context, it is good to learn that

Government of India is taking all possible and positive measures to overcome the Grid operation and

connectivity problems through its working arms Central/State Transmission Utilities and

National/Regional/State Load Dispatch Centre.

 Challenges
Cyber security
• Connecting grid to cyber network triggers numerous vulnerabilities in the system and regrettably we are

unaware about them. Recognizing and eliminating such loopholes before any security breach happens is

very essential. Mainly three objectives of cyber security in SG have been availability, integrity and

confidentiality.

• Availability refers to reliable and timely access to database and other information;

• Integrity includes protection from improper format/modification/destruction of information

• Confidentiality refers to security of information from unauthorized access.

Cyber security is one of the substantial issues for operation, since any single loophole has a potential threat to

turn into disaster for utilities and individuals involved with grid. Well known cyber threats are hackers, zero day,

malware, etc.
 Challenges
Storage concerns
• SG incorporates renewables for bulk power as well as distributed power generation. As the power

generation from renewables is not uniform i.e., intermittent and variable, they may demand storage.

Battery, the most common storage device, has very short life span of 4–5 years. Other storage

technologies like flywheels, thermal storage, hydrogen storage, etc. have their respective varying

concerns. Pumped storage technique, which is in regions of US, China, Japan, India and Norway, have

efficiencies in the range of 70–85%. The problem with pumped storage techniques is that, it requires large

areas as reservoirs which are normally available in mountain side only. For significant growth of SG, this

option requires to move away from Pumped Storage in the mountain ranges
 Challenges
Data management
• SG infuse power network with enormous quantum of meters, sensors and controllers. The data from these

units and from other sources like weather forecast, security cameras, etc. enhance the capability of

operators. Through accurate analysis of data, a breakdown or damage could be avoided before

occurrence. Further this big data could be utilized for system operation, alarms, forecasting demand,

generation, price, etc. The data so collected is really big in volume, for example from employing smart

meter that enables reading at each 15 min instead of once in a month increases the data almost 3000

times. Voluminous data from these devices is not only difficult for collection and storage but also poses

critical challenges in retrieval and handling. Database management is a vital issue in SG. High volume of

data may slow down the process of data collection, analysis and report generation.
 Challenges
Communication issues
• We have a wide range of communication technologies for deployment in SG but they all have their own

limitations. One technology has limited bandwidth while the second operates in limited distance, third has

higher data loss and other has limited success in underground installations. Thus, despite numerous

advantages, communication technology for SG still lacks a fool proof solution. Communication protocols

are not well defined in SG network. Few technologies of this category are GSM, GPRS, PLCC, 3G, ZigBee,

Broad band over PLC, etc. GSM and GPRS have coverage range of upto 10 km but they lack in data rates.

3G requires costlier spectrum, whereas ZigBee is limited by coverage range of 30–50 m only. Wired

communication like power line communication overcomes the issues of wireless communication but face

the problem of interferences. Optical fiber is fast and secure but is very expensive too. Router based RF

technology with a canopy may solve the problems to some extent but it again lacks the history of proven

in situ performance success stories besides the economy issues.

 Challenges
Stability concerns
• SG is supposed to incorporate distributed generation (Renewables) and micro grids (MGs) on a large scale.

The distributed generation causes bidirectional power flow. Renewables have various advantages over

conventional and nuclear energy sources but high penetration of renewables and MGs would raise

stability concerns like:

• Angular stability due to lower overall system inertia.

• Voltage stability due to lower power sharing support.

• Low-frequency power oscillation.

• Worsening of SG transients profile during MG islanding.

• Inability to serve as system reserve..

 Challenges
Energy management and electric vehicle
• Using electric vehicle (EV) as storage prospective is on proposal. Research for efficient utilization of electric

vehicle during periods of peak hour is going on. Batteries of EV can be charged in off peak period and can

be used as source during peak periods (Software, 2012). Few basic controls in managing energy through

EV include:

• Flow of power from (vehicle to grid (V2G), grid to vehicle (G2V), vehicle to vehicle (V2V).

• Reactive power control.

• DC link voltage control.

• Grid voltage support.

All these controls are not well defined yet and are still evolving. Development of standards for these is also on

the anvil.
 Challenges
Socio-economic challenges
• High capital investment

• Stakeholder's engagement

• System operation aspects

• Lack of awareness

• Fear of electricity charge increase

• Radio frequency (RF) signal and health issues

Ref: https://www.sciencedirect.com/science/article/pii/S2314717218300175
 Opportunity
Demand-side optimization and control
• 90+% of the electricity generated in developed nations is consumed in residential, commercial, and

industrial premises. Energy efficiency and peak load reduction are required to reduce overall electricity

consumption, to minimize use of expensive peaking plants, and to fully exploit renewable sources.

Automation and control systems in homes, buildings, and industrial plants will be needed to minimize

consumption and cost.

Ref: https://pdfs.semanticscholar.org/cbcd/889a8f2c1eb5ce9ddf471fffbb331b4cd7e4.pdf
 Opportunity
Intelligent transmission and distribution
• New sensors and power-flow-management devices can, in principle, promise the fulfillment of the long-

standing promise of self-healing grids. Key research needs include estimation, observers, and modeling

under partial and uncertain information.

Ref: https://pdfs.semanticscholar.org/cbcd/889a8f2c1eb5ce9ddf471fffbb331b4cd7e4.pdf
 Opportunity
Policies and pricing mechanisms for real-time power
markets.
• Smart grids will result in new business and market structures. Issues related to information sharing, real-

time or near-real-time dynamic pricing, fairness of access, and others must be resolved. Modeling, control,

optimization, will be crucial.

Ref: https://pdfs.semanticscholar.org/cbcd/889a8f2c1eb5ce9ddf471fffbb331b4cd7e4.pdf
 Opportunity
Automation aspects of integrating distributed
generation and storage.
• Future power systems are likely to have substantially larger contribution from renewable sources such as

wind and solar, which are characterized by intermittency of operation and a lack of ability to dispatch.

Integrating such sources in an automation and control system is therefore challenging, since balance

between instantaneous supply and demand must always be maintained. Storage technologies—and their

control—will be crucial in this respect. Plugin electric (including hybrid) vehicles must also be considered.

Ref: https://pdfs.semanticscholar.org/cbcd/889a8f2c1eb5ce9ddf471fffbb331b4cd7e4.pdf
 Benefit
Area Utility Consumer Society
•Reduction in cost
ultimately help
•Reduced operational keeping the prices of
cost •Improved level of goods and services
•Increased employee service with fewer lower than they
safety inconveniences would be otherwise
Improved Reliability
•Increased revenue •Reduced out-of- •Virtual elimination of
•Higher customer pocket costs resulting blackouts
satisfaction from loss of power •Improved
•Reduced capital cost infrastructure boosts
economic
development
 Benefit
Area Utility Consumer Society
•Downward pressure on
•A more robust transmission
energy prices and total
grid will accommodate larger
customer bills
•opportunities to leverage its increases in wind and solar
•Increased capability,
resources and enter new generation i.e. green energy.
opportunity, and motivation
markets •Downward pressure on prices
to reduce consumption
•Increased revenues as theft — through improved
•Opportunity to interact with
of service is reduced operating and market
the electricity markets
•Improved cash flow from efficiencies
Improved Economics through home area network
more efficient management of •Creation of new electricity
and smart meter connectivity
billing and revenue markets — enabling society to
•Opportunity to reduce
management processes offer its electricity resources
transportation costs by using
•A flatter load profile will to the market and creating the
electric vehicles in lieu of
reduce operating and opportunity to earn a revenue
conventional vehicles
maintenance (O&M) costs stream on such investments
•Opportunity to sell consumer
as demand response,
produced electricity back to
distributed generation
the grid
 Benefit
Area Utility Consumer Society
•Deferral of capital
investments as future peak
•Increase asset utilization
loads are reduced and more
•Reduction in lines losses on
•Increased capability, accurately forecasted
both transmission and
opportunity, and motivation through the combined
distribution
to be more efficient on the efforts of consumers and
•Reduction in transmission
Improved Efficiency consumption end of the delivery companies
congestion costs
value chain •Reduced consumption of
•Reductions in peak load
•Increased influence on the KWh’s through
and energy consumption
electricity market conservation, demand
leading to deferral of future
response, and reduced
capital investments
transmission and
distribution (T&D) losses
 Benefit
Area Utility Consumer Society
•Increased capability,
•Increased capability to opportunity, and motivation
integrate intermittent to shift to electric vehicle
renewable resources transportation
•Reduction in emissions as a •Increased opportunity to •Reduced CO2 emissions
Improved Environment
result of more efficient purchase energy from clean •Improved public health
operation, reduced system resources, further creating a
losses, and energy demand for the shift from a
conservation carbon-based to a “green
economy”