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Über dieses Buch

Meeting today’s energy and climate challenges require not only technological advancement but also a good understanding of stakeholders’ perceptions, political sensitivity, well-informed policy analyses and innovative interdisciplinary solutions. This book will fill this gap. This is an interdisciplinary informative book to provide a holistic and integrated understanding of the technology-stakeholder-policy interactions of smart grid technologies. The unique features of the book include the following: (a) interdisciplinary approach – by bringing in the policy dimensions to smart grid technologies; (b) global and Asian perspective and (c) learning from national case studies. This book is organised into five sections. Part 1 discusses the historical and conceptual aspects of smart grids. Part 2 introduces the technological aspects and showcase the state of the art of the technologies. Part 3 explores the policy and governance dimensions by bringing in a stakeholder perspective. Part 4 presents a collection of national case studies. Part 5 shares insights and lesson learnt and provide policy recommendations. This book showcases the state-of-the-art R&D developments and policy experiences. This book contributes to a better understanding of governance institution and policy challenges and helps formulate policy recommendations for successful smart grid deployment.




Introduction and Overview

The policy challenges associated with global warming, the prospect of increasingly expensive fossil fuels, and the recent re-emergence of serious concerns about the safety of nuclear power after the Fukushima accident in Japan are encouraging many western and Asian economies to develop smart grids (SGs) as a component of their energy policy portfolios. This introductory chapter first discusses the evolving definitions of SGs, and the five major applications of these technologies. We will then provide an energy sector outlook, highlighting the major energy developments in the near future that may affect SG deployment.  We will conclude with an overview of the objectives and structure of the book.
Daphne Mah, Peter Hills, Victor O. K. Li, Richard Balme

A Holistic View on Developing Smart Grids for a Low-Carbon Future

This chapter provides a holistic overview of the development of smart grids as an essential element for a low-carbon future. It examines how four key aspects, namely technology, economics, regulation/policy, and social acceptance, are complementary and therefore need to be considered concurrently for the deployment of smart grids. This chapter emphasizes that there is no one-size-fit-all solution, and the choice of solutions differs across countries and localities. A good understanding of local features such as historical, cultural, resources, market, and regulatory factors that coexist with strong and consistent commitment, careful road mapping, learning through trials as well as supporting innovation and research are required for the effective transition toward different smart grid systems in a low-carbon world.
John W. M. Cheng

Technical Characteristics of Smart Grid


Status and Prospects of European Renewable-Based Energy Systems Facilitated by Smart Grid Technologies

Renewable energy plays an important role in the future energy framework of the European Union. The European Union will reach a 20 % share of renewable energy in total energy consumption and increase energy efficiency by 20 % by 2020. Smart grids will be the backbone for facilitating the integration of renewable energy resources into future energy systems. The plans and status of renewable energy resources development and energy policy in Europe are introduced in this chapter. The development of smart grid technologies for facilitating the renewable-based energy systems in the European Union is also discussed. The role of Denmark, one of the leading countries for developing smart grid technologies and using renewable energy resources, has been emphasized in this chapter.
Yi Ding, Jacob Østergaard, Poul Ejnar Sørensen, Peter Meibom, Qiuwei Wu

Arcturus: An International Repository of Evidence on Dynamic Pricing

This chapter introduces Arcturus, an international database of dynamic pricing and time-of-use pricing studies. It contains the demand response impacts of 163 pricing treatments that were offered on an experimental or full-scale basis in 34 projects in seven countries located in four continents. The treatments included various types of dynamic pricing rates and simple time-of-use rates, some of which were offered with enabling technologies such as smart thermostats. The demand response impacts of these treatments vary widely, from 0 % to more than 50 %, and this discrepancy has led some observers to conclude that we still do not know whether customers respond to dynamic pricing. We find that much of the discrepancy in the results goes away when demand response is expressed as a function of the peak-to-off-peak price ratio. We then observe that customers respond to rising prices by lowering their peak demand in a fairly consistent fashion across the studies. The response curve is nonlinear and is shaped in the form of an arc: as the price incentive to reduce peak use is raised, customers respond by lowering peak use, but at a decreasing rate. We also find that the use of enabling technologies boosts the amount of demand response. Overall, we find a significant amount of consistency in the experimental results, especially when the results are disaggregated into two categories of rates: time-of-use rates and dynamic pricing rates. This consistency evokes the consistency that was found in earlier analysis of time-of-use pricing studies that was carried out by EPRI in the early 1980s. Our analysis supports the case for the rollout of dynamic pricing wherever advanced metering infrastructure is in place.
Ahmad Faruqui, Sanem Sergici

Microgrids and Distributed Energy Future

Microgrid appears with the development of distributed generations (DGs) and distributed renewable energy resources. It is usually located in low voltage networks and connected to the power grid through switches. In remote or isolated areas, microgrid is an alternative way of power supply instead of installing expensive long-distance transmission lines. A microgrid combines DGs, loads, distributed energy storages, and cogenerations to form a mini power system. The system could be operated as grid-connected mode or islanded mode. The autonomous operation is one of the features of microgrid. Distributed renewable energy resources and small-scale clean energy generating units are the major generation resources in microgrids. The development of microgrids and distributed clean energy generations will be one of the solutions to carbon emissions and global warming. Microgrid is a transition step from conventional power systems to smart grid. The demand management and generation control in a microgrid could significantly improve energy efficiency and system operation. In this chapter, the concept and development of microgrid are introduced. The challenges and operation issues are discussed for microgrids. In the end, the operating microgrids all over the world are introduced.
Jin Zhong, Yuqian Song

Communication and Network Security Requirements for Smart Grid

To relieve the problems of climate change due to global warming, increased renewable energy generation based on wind and solar has been advocated in the power grid. Due to the intermittent nature of such generation, and the requirement of real-time power balance between generation and consumption, increased renewable energy generation may cause instability in the power grid. The smart grid is an attempt to deploy information and communication technologies (ICT) on the power grid to solve the instability problem due to renewable energy sources. The smart grid also enables customer participation in such applications as differential pricing and demand response and promises improved grid operating efficiencies, self-healing capabilities, and resiliencies against cyber attacks. In this chapter, we discuss the communication and network security requirements for smart grid.
Victor O. K. Li

Stakeholders in Perspectives: Interests, Power and Conflict


Smart Grids: The Regulatory Challenges

Smart grids present major potential benefits in terms of economic, environmental, and social considerations. The deployment of smart grids however requires not only technological advancement but also the ability to overcome many regulatory barriers. This chapter brings regulator perspectives—an area that is under-explored—into the field of smart grid studies. We examine why regulators should be concerned about smart grid developments, the nature of the regulatory challenges they may face, and what they can do to address these challenges. We have two major findings. Firstly, we demonstrate that smart grids present new challenges to regulators. Regulators are faced with three major challenges: utility disincentives, pricing inefficiencies, and cybersecurity and privacy. Market liberalisation, decoupling, dynamic pricing, and protocols and standards on cybersecurity are the major mechanisms that regulators can deploy to address these issues. Secondly, our international case studies of countries and cities provide an overview of a variety of actual regulatory initiatives in place. This overview shows how economies have pioneered a variety of regulatory approaches that tend to be more participatory to better respond to the more dynamic stakeholder landscape that is emerging.
Daphne Mah, Kaboo Po-yi Leung, Peter Hills

i-Energy: Smart Demand-Side Energy Management

Much of the discussion concerning smart grids focuses on the potential benefits of technological advances to power suppliers. However, there are many possible advantages that may benefit consumers as electricity grids exploit more of the opportunities provided by the cyber network society and emerge as a form of supporting social infrastructure. A critical element in the development of advanced consumer-friendly grids is the notion of an integrated system for energy management from the consumer’s viewpoint. Here, we present such a concept—i-Energy—for smart demand-side energy management. The concept embodies four main elements: Smart Tap Network, Energy on Demand Protocol, Power Flow Coloring, and Smart Community. The key features of each are explained, and the characteristics and effectiveness of the required supporting technologies as demonstrated by ongoing research are presented. The importance of bringing together key stakeholders to achieve effective collaboration to implement the i-Energy concept is also emphasized.
Takashi Matsuyama

Switching Perspectives: Creating New Business Models for a Changing World of Energy

Traditional electric utility business models are becoming rapidly outdated. Policy changes, new energy technologies and more demanding consumers are driving the need to move away from purely operation-oriented approaches to more consumer-driven models. With these new business imperatives and a resulting need to focus on industry-level business model innovation, we explore how new models could evolve, and their benefits to consumers, utilities and other stakeholders. We also discuss the challenges ahead and the capabilities required for realizing this transformation.
Michael Valocchi, John Juliano, Allan Schurr

International Case Studies


Smart Transmission Grids Vision for Europe: Towards a Realistic Research Agenda

Smart grids have attracted significant attention lately, and one can even speak of hype. However, much of the attention is paid to the distribution side and consumer interaction. Nevertheless, also at the transmission-level important improvements can be achieved through farsighted and careful intelligent grid design and implementation. This chapter describes and proposes a realistic research agenda in which smart transmission grid (STG) research may operate, with focus on operational planning and operations of the pan-European electricity grid. Firstly, a research outlook seen from current European policy is laid out to redefine the most consequential research directions liked to the needs of transmission systems from real time up to planning. Secondly, operations (real time to hours) of the transmission system are discussed, and monitoring and control technologies that can be achieved through the application of synchronized phasor measurement technology are highlighted as a means toward a STG. Next, challenges related to planning (hours to years) are discussed keeping in mind the need of flexibility, coordination, and new methods for assessing system security. Going beyond the purely academic point of view, this chapter specifically aims to bring a realistic approach toward research for electric power transmission to be able to transform into a STG.
Luigi Vanfretti, Dirk Van Hertem, Jan Ove Gjerde

Comparison of Smart Grid Technologies and Progress in the USA and Europe

This work discusses historical and technical events in USA and Europe over the last few years that are aimed at modernizing the electric power grid. The US federal government has ratified the “Smart Grid Initiative” as the official policy for modernizing the electricity grid including unprecedented provisions for timely information and control options to consumers and deployment of “smart” technologies. European countries are unified in researching and developing related technologies through various structures supported by the European Union. This chapter presents the development of smart grids and an analysis of the methodologies, milestones and expected evolutions of grid technologies that will transform society in the near future.
M. Godoy Simões, R. Roche, E. Kyriakides, S. Suryanarayanan, B. Blunier, K. McBee, P. Nguyen, P. Ribeiro, A. Miraoui

Towards Sustainable Energy Systems Through Deploying Smart Grids: The Japanese Case

The deployment of smart grids has a major role to play in Japan’s aspiration to achieve sustainable energy systems. A smart grid in Japan is designed to have an intelligent monitoring system, which not only keeps track of all the energy coming in from diverse sources but also can detect where energy is needed through a two-way communication system that collects data about how and when consumers use power. This chapter examines the vision, concepts, and elements of Japan’s smart grid development. Smart grids are a part of the Japanese government’s ‘go green’ effort to bring Japan to a leadership position in environmental and energy sustainability. This analysis provides an overview of Japan’s major initiatives in deploying smart grids, including smart communities, large-scale smart grid pilot projects in four major cities, as well as overseas collaboration. Major smart grid awareness promotion bodies in Japan are discussed along with their important initiatives for influencing and shaping policy, architecture, standards, and traditional utility operations. Implementing a smart grid will not happen quickly because when Japan does adopt one, it will continue to undergo transformation and be updated to support new technologies and functionality.
Amy Poh Ai Ling

Governing the Transition of Socio-technical Systems: A Case Study of the Development of Smart Grids in Korea

This chapter examines the motivations, processes, and outcomes of the development of smart grids in South Korea through the perspectives of governance and innovation systems. Drawing on desktop research and semi-structured interviews, this chapter has two major findings. First, the development of smart grids in Korea has been shaped by various factors including macroeconomic policy, the role of the government, and experimentation. The complex interactions between these factors at the landscape, regime, and niche levels have impacted on the development of smart grids. Second, while Korea’s government-led approach has its strengths in driving change, it has also exposed weaknesses in the country’s ability to mobilise the private sector and consumer participation. Major obstacles including partial electricity market reform and public distrust exist. A systemic perspective is needed for policy in order to accommodate the changes required for smart grid development. Regulatory reforms, particularly price-setting mechanisms, and consumer engagement are priority areas for policy change.
Daphne Mah, Johannes Marinus van der Vleuten, Jasper Chi-man Ip, Peter Hills

Developing Super Smart Grids in China: Perspective of Socio-technical Systems Transition

This chapter adopts the framework of socio-technical systems transition to discuss the development of smart grid (SG) in China. Multi-level perspective (MLP) analysis, namely landscape, regime, and niches, is presented to set the institutional background of China’s power sector. Then, a scenario of power supply and demand is compiled, and its main features are elaborated to justify the necessity of developing SGs. The overall transition pathways of China’s power sector are drafted, and then, the road map for developing SGs in China is proposed. Key policy implications are as follows: first, working out clear national strategy and road map for SG development and carrying out integrated translation research and strong front-end support; second, restructuring power sector in parallel with SG development; and third, reforming pricing mechanism and empowering the customers with rights to choose service/enter power market.
Yuan Jia-Hai

Exploring the Value of Distributed Energy for Australia

This chapter examines the important role that distributed energy (DE) can play in smart grids in Australia to achieve a low carbon future. It discusses the findings of a recent major government-funded study which showed that uptake of DE could result in potential economic savings of around $130 billion by 2050. It also provides updates of more recent modelling that takes into account sensitivities in the price of natural gas and the price of solar photovoltaic (PV). This chapter further examines the key issues, opportunities and challenges of realising the value of DE in Australia. The analysis highlights the importance of integrating DE with the electricity grid and urban environment and discusses enablers and barriers for large-scale uptake of DE.
William Lilley, Luke Reedman, Anthony Szatow




The smart grid landscape is extremely dynamic as the contributions in this book have demonstrated. We have focused on some of the latest technological developments and the importance of various stakeholder perspectives. We have also provided a variety of international case studies that have allowed us to explore the latest policy developments from Europe to the US and the Asia-Pacific region. This postscript explores the future trajectories of SGs, highlighting three major trends that point the way towards future advances and progress in the years ahead. Future research agenda is also discussed.
Daphne Mah, Peter Hills, Victor O. K. Li, Richard Balme
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