1.18. Those drivers work in harmony to assist in enabling, scaling up, and reinforcing advancements in SGs. Decentralization enables active elements of the system but requires a high level of coordination. Digitalization supports electrification and decentralization by having better management, which includes automatic control, consumption real‐time optimization, and interaction with customers.
1.9.1 Electrification
Electrification is the process of powering by electricity and, within the context of the SG principle [62]. As the electricity generation in the SG moves toward more renewable sources, this trend enables more environmental gains and adding to it more end sectors such as heating, transportation, away from fossil fuel resources. This trend also increases the efficiency of energy utilization. An example of electrification is using EVs in transportation. This technology has been evolving rapidly over the past five years. The EV range was improved to exceed 480 km for particular models. Batteries' costs which were above $1100 per kilowatt‐hour in 2010, have fallen 87% in real terms to $156/kWh in 2019 [63]. These reductions have reduced the cost gap with traditional internal‐combustion engine vehicles. It's expected to have economically competitive EVs, although multiple electrification challenges within the infrastructure can limit the successful adaptation rate of EVs. The deployment of EVs boosts electricity consumption and offers a huge opportunity to maximize the utilization of the grid. This can be achieved if the charging/recharging technology is combined with suitable pricing and flexible usage. Electrification and economic growth are highly correlated [64].
Figure 1.18 Three trends of the grid edge transformation.
1.9.2 Decentralization
Decentralization is the transformation of the bulk, “one‐way direction” of energy into a distributed, multi‐directional flows, known as multi‐lane highways [65]. A decentralized electrical grid has several environmental and security benefits. Microgrids coordinated with distributed energy generation give systems significantly enhanced reliability and grid efficiency. Distributed power generation and microgrids are independent of the grid which means this power is provided to the local loads even when the main grid is not available. Decentralized generation allows the reduction of power outages for critical facilities, for instance, hospitals or police stations or any facility that may need continuous power. Hence, decentralized grids are more energy‐efficient than centralized electricity grids [47]. Consequently, implementing renewable energy sources in the current power grid does not automatically imply that the current power grid is decentralized. The transformation from a centralized to a decentralized electricity grid requires a number of technologies with various implications that need to be considered to become a reality such as [66]:
1 Distributed generation (from renewable energy resources).
2 Distributed storage.
3 DR.
1.9.3 Digitalization and Technologies
Advancements in digitalization enhance the grid's utilization and management. Technologies that are digitalized have been increasingly used to allow devices across the grid to exchange beneficial data for the customers and grid operators. There is a huge interest in utilizing innovative Internet of Things (IoT) sensors, smart meters, network remote automation, distributed and centralized control systems, digital platforms, to spot the light on the grid's proper optimization and aggregation, enable real‐time operation of the network, and enhance grid's situational awareness and utility services [67]. The rise in the deployment of AMI shows clear opportunities for enhancing the quality of service, the observability of the network, and data gathering for short‐ and long‐term utilization. The grid's various digital data provides opportunities for fault detection, energy consumption and generation, as well as prediction of faults and outages. Digitalization of the network is an obvious opportunity for cost‐effective development and management of the electricity system with high returns in cost and quality to serve. On the consumer side, chances for the use of smarter customer technologies are being increased. The installation of digital technologies in the network should not be slowed down by outdated regulations. As more digital devices are deployed, the communication between these devices will be increased. Broadband communication infrastructure will support a wide range of services (both network and consumer services). Not having updated policies and standards can slow down the development of this infrastructure and hinder innovation in this space. There are more challenges for digitalization including available infrastructure and replacement cycles [68]. Technologies related to the SG have evolved from previous attempts at utilizing electronic control, metering, and monitoring. Back in the 1980s, automatic meter reading was implemented to keep track of loads from heavy consumers and emerged into the AMI of the 1990s [69]. These meters can record and store how electricity is utilized at various times of the day. Smart meters give continuous information so that monitoring can be achieved in real‐time and could be utilized as a gateway for “smart sockets” in the premises and for DR‐aware equipment [70]. The main technologies in the SG consist of three main parts: electric energy technologies, operation technologies, and information and communication technologies as described in Figure 1.19. Energy technologies include renewables energy, distribution generation, DR, EVs, ES, integrated gasification combined cycle, etc. The operation technologies refer to a variety of hardware and software that detect or cause a change through direct monitoring and/or control of physical devices, processes, and events in the SG [71]. It includes the EMS, distribution management system (DMS), DSM, SCADA, outage management system (OMS), asset management system (AMS), flexible alternating current transmission system (FACTS), wide area monitoring systems (WAMS), process control application (PCA), etc. The information technologies include enterprise resource planning, portals/gateways, information management, sensing and measurements, asset management, data collection, storing, mining, and analytics. Communication technologies, which include Wireline and Wireless technologies. The Wireline technologies include PLC, fiber‐optic, Digital subscriber line (DSL). Wireless technologies include Wi‐Fi, Worldwide interoperability for microwave access (WiMAX), Global System for Mobile Communications (GSM), and Satellite. The technology in SGs can be divided into different areas, each consisting of sets of assets, starting from generation through transmission, distribution, and different consumers [72, 73].
Figure 1.19 Technologies for the evolution of the SG.
1.10 Actions for Shifting toward Smart Grid Paradigm
The electric grid's modernization should begin with a careful assessment of existing technologies within the power grid. Proper utilization of the existing power plants, transmission, and distribution lines and other facilities are the key factor in accomplishing grid modernization within the available financial and technical resources. The country should determine its current level of technology deployment followed up with a focused financial study and analysis of missing grid modernization aspects and associate them with timeline and cost. There are specific analyses that should be conducted for shifting to the SG paradigm. Each utility should conduct its own different analyses and implement specific strategies within a defined timeline. Examples of required analyses are [74, 75]:
Gap analysis: refers to identifying the incomplete actions between current status and future targets to achieve the desired outcomes. Also, it identifies the gaps in a particular grid's technology evolution and
