Smart Grid Essay

485 Words2 Pages
As the backbone of the power industry, the electricity grid is now the focus of assorted technological innovations. Utilities in North America and across the world are taking solid steps towards incorporating new technologies in many aspects of their operations and infrastructure. At the core of this transformation is the need to make more effi cient use of current assets. Figure 4 shows a typical utility pyramid in which asset management is at the base of smart grid development. It is on this base that utilities build a foundation for the smart grid through a careful overhaul of their IT, communication, and circuit infrastructure. As discussed, the organic growth of this well-designed layer of intelligence over utility assets enables the smart grid’s fundamental applications to emerge. It is interesting to note that although the foundation of the smart grid is built on a lateral integration of these basic ingredients, true smart grid capabilities will be built on vertical integration of the upper-layer applications. As an example, a critical capability such as demand response may not be feasible without tight integration of smart meters and home area networks. As such, one may argue that given the size and the value of utility assets, the emergence of the smart grid will be more likely to follow an evolutionary trajectory than to involve a drastic overhaul. The smart grid will therefore materialize through strategic implants of distributed control and monitoring systems within and alongside the existing electricity grid. The functional and technological growth of these embryos over time helps them emerge as large pockets of distributed intelligent systems across diverse geographies. This organic growth will allow the utilities to shift more of the old grid’s load and functions onto the new grid and so to improve and enhance their

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