Smart Grid: Working Mechanism, Advantages and Disadvantages

This paper explains the working mechanism, advantages and disadvantages of Smart Grid technology. It covers the history of Smart Grid, its components, and comparison with traditional power grids. Smart Grid is a self-service electricity system that provides reliable, safe, and high-quality services to all customers. It is a combination of electric networks and digital technology and has the ability to produce electricity from various resources. The paper also discusses traditional power grids and their drawbacks.

SMART GRID 0
Smart Grid
Abstract- The smart gird is an advanced technology in
the field of the power system. From the last five years, it
changed the way of energy distribution. The main
purpose of this paper is to describe the working
mechanism of smart grid and their advantages and
disadvantages in energy systems. It has the ability to
improve the security and performance of any computer
device and equipment. This paper is completely based
on qualitative research analysis and it will give a brief
explanation of smart grid technology.
Keywords-Smart Grid, security, performance, energy
distribution and computer devices.
I. Introduction
A smart grid is well-defined as a control system which is
used in many electric and electronic devices [1]. It is also
called an electrical grid that involves the number of
operational devices and apparatuses for example, smart
appliances, smart meters, and energy resources. There are
main two fundamental aspects of this advanced technology,
for example, microelectronic power conditioning, and
regulator of production [2]. The main aim of this report is to
recognize the fundamental concept of the smart grid and the
role of this technology in the field of electricity or computer
systems. In this type of technology meters, electronic
equipment’s, and instruments are connected to the grid. In
which every unit connected to the grid using a lighting
system [3]. In this modern generation, there are many people
and organizations which are using this type of power system
by which they improved the efficiency and performance of
their equipment’s. It is observed that the smart grid is more
efficient rather than other energy sources and it reduced the
problem of power consumption. This report is divided into
five parts, for example, history of the smart grid, principle,
the comparison between the smart grid and other power
resources, advantages and disadvantages [4].
II. History of Smart Grid
In this modern technology, due to the increase in power
demand the oldest energy resources are not working
properly, therefore, many people are using the smart grid
concept to increase performance if devices. The first power
grid was established in the year 1886 in Great Barrington
and at that period, the electric grid was a unidirectional
process of power circulation [5]. In the year 1960, the use of
smart grids was increased and many organizations used the
electric grid rather than other energy resources. It connected
a number of central power systems through high power
lines. Between 1970 and 1990 the demand of power grids
was increased and at that time many problems occurred for
example loss of power, power cuts, brownouts, and
blackouts [6]. In the 21st century, there are many electronics
and communication technologies are developed to reduced
drawbacks and limitation of the electric grid. It is estimated
that the first fundamental concept of smart grid was
produced by EISA in the year 2007 and it was approved by
the United States in January 2007. In year 2009, the US
keen framework manufacturing was esteemed at about $21.4
billion and by 2014; it will surpass at any rate $42.8 billion
[7]. Given the accomplishment of the smart networks in the
U.S., the biosphere market is required to develop at a
quicker rate, flooding from $69.2 billion out of 2009 to
$171.2 billion by year 2014. With the fragments set to profit
the most will be keen metering hardware sellers and creators
of programming used to transmit and sort out the massive
quantity of information gathered by meters [8]. The power
grid began in 1896, situated partially on Nikola Tesla's plan
distributed in 1888, however as of late, in the previous 50
years, power systems have not kept pace with current
difficulties, for example, security dangers, national power
business, and conveyance, and appeal of intensity quality
[9]. Along these lines, the idea of Smart Grid turned out, and
the term keen matrix has been being used since 2005. Most
power grid today around the globe take after a similar
configuration. The general condition for a standard power
lattice begins first with the producing power plant. Here,
power is produced through an assortment of courses, for
example, coal, oil, and atomic, and also cleaner alternatives,
for example, wind, water, and sunlight based power. The
power plants create high measures of power that once-over
through long 'transmission lines' as a rule crosswise over
numerous miles [10]. There are both AC (substituting
current) and DC (coordinate current) transmission lines. As
a rule, AC is the more typical technique for transmitting
force and DC transmission lines require a DC-to-AC
converter before they are progressed into circulation
electrical cables. Before the power can get to the private and
business structures, it must be 'weakened' and appropriated.
This weakening happens in light of the fact that the power in
the transmission lines is far too substantial to possibly be
utilized by ordinary family machines. Along these lines, a
bit of gear called a 'transformer' is utilized to step the shut
down to a voltage that general machines can utilize [11].
These transformers are held in a 'substation', which takes in
a wide range of high voltage lines and parts them up into a
bigger number of lower voltage lines. There are wide ranges
of voltages that the substations 'venture down'. The higher
the voltage, the more drawn out separation is can travel. In
this way, there are different 'advance down's that the power
must take as it goes from a transmission li ne to the
dissemination lines. From the substation, the lines at that
point go to the different houses and structures that are
associated with the power network each with their own
particular voltage meter to quantify their capacity use [11].

SMART GRID 1
III. Working Principle of smart grid
In this modern generation, electric energy system is facing a
radical transformation problem and loss of energy is also a
common problem for any information and communication
system. Therefore to avoid this type of issues the smart grid
was developed and it is essential that produce simple
integration and reliable services to customers [12]. A smart
grid technology is defined as self- services electricity system
which is completely based on the fundamental concept of
the digital automation process. The main advantage of this
technology is that it can determine the solution of any
problem in very less time which can decrease workforce and
this system can provide reliable, safe, and high-quality
services to all customers [13]. It is a combination of electric
networks and digital technology and it has the ability to
produce electricity from various resources, for example,
solar system, wind turbine process, and from hybrid electric
vehicles. The smart grid alludes to a propelled power supply
bond which keeps running from a noteworthy power plant to
the distance inside your home. For instance, there are many
power plants in the United States and these power plants
create power by utilizing the breeze vitality, atomic vitality,
hydro, gaseous petrol and from different assets. These
delivering stations create power at a settled electrical
voltage and this specific level of voltage is improved to high
voltages with the goal that the power transmission's
productivity is upgraded over long separations [14].
Figure: Working principle of smart grid
(Source: Mahmood, Javaid and Razzaq, 2015)
It is a process which enables two-way communications
between electric power systems and customers. In which
information of any consumer is detected by various electric
power organizations in order to deliver more efficient
energy networks. In addition to improving the performance
of any power plan this technology also control and monitor
demand for power and distributed energy systems [15]. A
smart meter is used in this system and it controls the flow of
electric energy from one device to another and also
decreases carbon dioxide emission. It provides electric
energy from supplier to customer with the help of digital
innovation system that decreases cost and improves
transparency. Power distributed grids are used in smart grid
system by which electric energy transfer from supplier to
various home appliances.
Figure: Smart Grid Components
(Source: Mahmood, Javaid and Razzaq, 2015)
IV. Principal Characteristics of the Smart Grid:
 Empowers dynamic support by buyers—Consumer
decisions and expanded association with the
framework bring substantial advantages to both the
lattice and the earth while diminishing the cost of
conveyed power. Accommodates all age and
capacity alternatives—Diverse assets with "fitting
and-play" associations increase the alternatives for
electrical age and capacity, including new open
doors for more effective, cleaner control generation
[15].
 Enables new items, administrations, and markets—
The network's open-get to showcase uncovers
squander furthermore, wastefulness and helps drive
them out of the framework while offering new
shopper decisions, for example, green power items
and another age of electric vehicles. Decreased
transmission blockage additionally prompts more
effective power markets.
 Provides control quality for the computerized
economy—Digital-review control quality for the
individuals who require it maintains a strategic
distance from creation and efficiency misfortunes,
particularly in computerized gadget situations [16].
 Optimizes resource usage and works proficiently—
Desired usefulness at least cost guides tasks and
permits more full usage of advantages. More
focused on and productive grid maintenance
programs result in fewer hardware disappointments
and more secure tasks.
 Anticipates and reacts to framework aggravations
(self-mends) — The shrewd lattice will perform
constant self-appraisals to recognize, investigate,
react to, and as required, re-establish framework
parts or system areas.

SMART GRID 2
 Operates versatility against assault and cataclysmic
event—The lattice discourages or withstands the
physical or digital assault and enhances open
wellbeing [17].
Smart grid involve various technologies and system which
are describing below
A. Intelligent Appliances
It has the capability to decide the level of the consumer into
various electric energy systems and it reduced the value of
peak loads that impact on the cost of electricity generation.
There are various sensors used in the smart grid, for
example, a smart sensor, and temperature sensor which are
used to control the temperature of smart grids [18].
B. Smart Power Meter
It is very significant portion of any smart grid which is used
to produce two-way interactions between the power provider
and users. It can be used to control and monitor the flow of
electricity and people can transfer power energy from one
device to another [18].
C. Smart Substations
The main purpose of the smart substation is that it can
control both non-critical and critical operational data for
example power factors, security, and transformer status. The
main advantage of this system is the transformation process
by which people can share power supply from one device to
another.
D. Superconducting cables
These types of cables are used to produce long-distance
transmission system and it has the capability to detect faults
in power systems [19]. It is completely based on the real-
time data which is used in smart grids to avoid loss of
signals.
E. Integrated communication
The main key of any smart grid system is an integrated
communication process and it is a very fast process rather
than the real-time system. There are various kinds of
technologies are used in this process, for example, PLC,
wireless networks, SCADA, programming language, Kiel
software, and BPL [20].
F. Intelligent monitoring system
The main aim of this scheme into smart grid is that it can
track the flow of electric energy into various power
networks. It uses superconductive cables that can decrease
power loss and improve the performance of electric
networks.
V. Before Smart Grid
Before smart grid, electric grids and traditional power grids
are used and it reduced various drawbacks of electric grids.
An electric grid is defined as an interconnecting process
which is used to produce electricity [21]. This type of grid
consists of three systems such as generating station, large
voltage transmission cables, and distribution lines.
Generating stations are used to generate electric powers
from power plants and transmission lines are used to
produce a communication platform between the power
system and consumers [22]. Distributed lines play a
significant role in electric grids which re used to that
connect two or more electric consumers at a time and it also
distributes eclectic energy from one device to another
device. This is a manually operating system which cannot be
sued for long distance communication and it is less secure
rather than the smart grid. Traditional control grids are
utilized to the interrelated number of power systems like
transmission cables, smart meters, and distributed substance
[23]. It is one of the oldest technologies to transfer electric
energy from power resources to consumers and the main
drawback of this technology is that it is a very less efficient
process. It uses an electromechanical process that means it
uses various mechanical devices which are controlled by
electric energy. This technology does not provide
communication between devices and consumer; therefore, it
is not as popular as compared to the smart grid. It is a
completely manual operating process in which data or signal
may be lost and it is also a one-way communication process
which does not provide a feedback system. Electrical
framework or power lattice is characterized as the system
which interconnects the age, transmission and circulation
unit. It supplies the electrical power from producing unit to
the circulation unit. A lot of intensity is transmitted from the
creating station to stack focus at 220kV or higher [24]. The
system shape by these high voltage lines is known as the
superlative. The super matrix encourages the sub-
transmission to arrange to work at 132kV or less.
Figure: fundamental systems of smart grid
(Source: Mahmood, Javaid and Razzaq, 2015)
VI. Difference between Traditional Power Grid and
Smart Grid
The traditional grid is defined as the interconnection process
for different power systems, for example, power
transmission, transmission substations, synchronous
machines, various kinds of loads, and transmission lines.

SMART GRID 3
These types of electric grids are located far from the energy
consumption area and in which electric energy transmitted
with the help of transmission lines like coaxial cables [25].
It is a modern technology of grids that produce more
efficient and also improved the security of power networks.
It has the capability to monitor and control various activities
of grid-time information process and it also provides real-
time information about any event [26]. There are various
key components used in this tech ology, for example, smart
substations, smart meters, smart appliances, and
synchrophasor technologies.
A Smart Grid utilizes creative items and administrations
together with savvy checking, control, correspondence, and
self-recuperating advancements to:
 Better encourage the association and task of
generators everything being equal and
advancements; [2].
 Enable customers to have an impact in upgrading
the activity of the framework;
 Furnish customers with more prominent data and
the decision of supply;
 Fundamentally decrease the ecological effect of the
entire power supply framework;
 Convey improved levels of dependability and
security of supply [27].
Characteristics Traditional
Power grid
Smart Grid
Technology It uses
electromechanical
technology and in
which a
mechanical device
is used which is
operated by
electricity.
The smart grid
uses digital
automatic
technology
which can
increase
communication
between power
systems and
consumers.
Distribution The traditional
power system uses
one- way
distribution. In
which power is
distributed from
the only main
power source.
It is a two- way
distribution
system and in
which power
can go back to
the main power
plant.
Generation In this type of
electric grid, all
power sources
must be produced
from a central
location.
In this advanced
electric grids
power source
can be generated
from any
location and
people can
transfer electric
energy from one
device to
another.
Sensors In this technology
there are few
sensors used and
In smart grids
system, there are
numbers of
the infrastructure
of traditional
power grid cannot
handle a number of
sensors at a time.
sensors can be
placed on a
single line
which is one of
the most
benefits of this
power system.
Monitoring Due to the many
limitations of
traditional power
grids energy
sources are
monitored
manually by
operators.
It uses digital
technology by
which power
systems are
monitors by
itself.
Restoration It is a manual
handling process to
restore their power
station.
It is a self-
handing process
in which sensors
can determine
faults into
electric power
systems.
Equipment’s Failure of
infrastructure can
increase the
problem of the
blackout.
In which power
can be rerouted
to go around any
issues areas.
Control In which electric
energy is very
difficult to control
and monitor.
In which energy
can be easily
controlled and
monitor by the
smart meter and
other
technologies.
VII. Advantages of smart grids
The overall interest in power keeps on developing indeed,
even as vitality protection measures and advances in control
transformation efficiency decrease the utilization of singular
burdens. To encourage the vitality craving of the world,
sustainable power source advancements are getting to be
doable and offer elective age alternatives that empower
thought of the effect on nature and other social and
monetary variables [27]. As indicated by the U.S. Vitality
Information Organization (EIA), non-hydroelectric
inexhaustible vitality is one of the quickest developing
vitality sources; its commitment to add up to U.S. electrical
age is normal to achieve 14% by 2035. While a significant
part of the current sustainable age is given by wind, PV age
is getting a charge out of gigantic development around the
world. In the United States alone, matrix associated
establishments grew 102% to 878 MW of new PV age in
2010, which brought combined introduced ability to 2.1 GW
[28]. Utility-introduced PV spoke to as it were 28% of this
development, proceeding with a multiyear incline in which
the development in PV was driven by nonutility
establishments. The PV industry is beginning, and quite a bit
of this development depends on ideal government monetary
motivations.

SMART GRID 4
Figure: Features of Smart grid
(Source: Mahmood, Javaid and Razzaq, 2015)
Energy savings through reducing consumption
It is one of the impotent advantages of smart grid and user
can save electric energy. In smart grid, people can share the
power system from one network to another and it uses
transmission lines for two-way communication purpose.
Better customer service and more accurate bills
The smart grid also improved the overall performance of
electric networks and it uses digital technology by which it
increased the accuracy of systems. There are various power
supplier companies which provide methods to improve the
security of their network systems.
Reduced balancing cost
Smart grid decreased the cost of electric systems and it
collects numbers of data from an energy meter system. It
uses data analysis process through which users cans analysis
use of power grids.
Reducing electrical losses
This latest power grid decreased losses and electric
distortion by which performance of power resources and
other devices improved. It uses smart substations which are
used to transfer data signals from one location to another
and it also provides a medium to provide communication
between power suppliers and users.
RELIABILITY
There have been five monstrous power outages over the
previous 40 years, three of which have happened before nine
years. More power outages and brownouts are happening
because of the moderate reaction times of mechanical
switches, an absence of robotized examination, and "poor
deceivability" – an "absence of situational mindfulness"
with respect to lattice administrators. This issue of power
outages has far more extensive ramifications than just
pausing for the lights to go ahead. Envision plant generation
halted, transient nourishment ruining, activity lights dim,
and charge card exchanges rendered inoperable. Such are
the impacts of even a short local power outage.
Increased consumer demand
It is an advanced technology of traditional power grids
which uses the smart meter and smart substation to control
and monitor the flow of electric energy. It improved the
demand for electric grids without using any infrastructure
and many people use this technology in various peripheral
devices.
VIII. Disadvantages of smart grids
Among the huge difficulties confronting advancement of
brilliant frameworks are the cost of actualizing a brilliant
matrix, with gauges for simply the electric utility progressed
metering ability running up to $27 billion, and the directions
that permit recuperation of such ventures. For point of view,
the Brattle Group appraises that it might take as much as
$1.5 trillion to refresh the framework by 2030. Guaranteeing
interoperability of savvy matrix models is another obstacle
state and government controllers should jump. Real
specialized obstructions incorporate creating practical
capacity frameworks; these capacity frameworks can help
settle other specialized difficulties, for example,
incorporating disseminated sustainable power source
sources with the network, tending to control quality issues
that would somehow or another compound the
circumstance, and improving resource usage. Without a
shrewd lattice, high entrances of variable inexhaustible
assets may turn out to be more troublesome and costly to
oversee due to the more prominent need to facilitate these
assets with dispatch able age and request.
There are various kinds of drawbacks of smart grid which
are described below
Security and policy
It is one of the common drawbacks of this technology and
users can lose their private information because the smart
grid is less secure. It uses smart meters which can be easily
hacked by hackers and they use an algorithm process by
which hackers can control user personal servers.
Grid Volatility
Smart Grid organize has much insight at its edges; that is, at
the passage point and toward the end client's meter. In any
case, the framework has inadequate knowledge in the centre,
overseeing the exchanging capacities. This absence of
incorporated advancement makes the lattice an unstable
system. Building assets have been filled with power age and
customer vitality utilization, which are the edges of the
system. In any case, if an excessive number of hubs are
added to the system before building up the product
knowledge to control it, the conditions will prompt an
unpredictable savvy framework.
Two-way communication
This modern technology depends upon two-way
communication in which power supplier organizations
transfer electricity from power plants to consumers. It uses
wireless networks which are very less secure and it can be
hacked by various processes.

SMART GRID 5
More expansive
Smart grids use various technologies, for example, smart
meter; smart appliances embedded system, programming
language. All these are very costly and expensive because to
control one power system it required more efforts. Therefore
many people are not able to adopt this type of electric grids.
Small memory size
The size of memory in smart grid is very less and people are
not able to store more data or information. Through this
drawback, various companies do not use this technology
because customers required a large memory size. It is
observed that in future this technology can increase their
memory size by which people can store more information at
a time.
IX. Smart grid work on the computer
The computer plays a significant character in the field of
smart grid and computer a platform where any person can
transfer signals and can control various power systems of
the smart grid. In which users can create various source code
by using various programming language. Smart grid as a
ground level process which required a peripheral device to
control and monitor grids and energy systems, therefore, the
computer system is used . There are various uses of smart
grid into the computer, for example, used for data
information, can be used for long-distance communication,
by computer users can interface with various peripheral
devices. The smart grid can provide power supply to your
computer systems and it can handle human peripheral
devices such as computers and mobile phones. A smart grid
can enable the level of consumer participation and users can
use this technology for bill payment through computer
systems. It has ability to reduce security issues and enhance
performance of power systems. It uses large amount of parts
and equipment’s like connecting cables, wires, computer
systems and controllers.
X. The relation between smart grids and computer
A smart grid is a current power scheme which usages
sensors, automation, communication system, and processors
to increase the security, suppleness, and performance of an
electric system. In which grids are connected by computer
systems in the form of virtualization because the computer
provides a platform where consumers can control the flow
of electric signals. There are various kinds of software’s and
programming languages are used in this technology such as
PLC, Kiel software, C, and C++ and SCADA . All this
software’s and sources coding are performed on peripheral a
device which is called a computer system. It offers shoppers
expanded decision by encouraging chances to control their
power utilizes and reacts to power value changes by altering
their utilization. A savvy matrix incorporates different and
scattered vitality assets and obliges electric vehicle
charging. It encourages association and coordinated task. To
put it plainly, it brings all components of the power
framework generation, conveyance, and utilization closer
together to enhance by and large framework activity for the
advantage of shoppers and nature . It is a large scale process
which increases power generation facility to every electric
device and computer is a part of them in which smart grid
transfer power into SMPS and UPS and these devices share
their power to another small components and processors.
High-speed computers can be used to find faults and any
problem with electrical grids and after that, it provides a
recovery system by which users can remove this type of
problem. For human it is very difficult to determine a long-
term pattern in various power networks, therefore, fuse
networks and diodes are used. The main purpose of the
computer in the smart grid is that it is used for interfacing
where users can interconnect two or more peripheral
devices. it is estimated that this type of technology is less
secure and human personal information can be lost.
Therefore firewall software is installed into the computer
system by which users can reduce various security risks and
attacks. An electric matrix with the data and
communications innovation (ICT) is known as a Smart Grid.
In SG, information about purchasers' power utilization
conduct is gathered naturally with the utilization of the ICT
[1]. This helps increment the effectiveness, unwavering
quality, and execution of the electric framework. The
European Technology Platform is setting up an SG strategy
to beat numerous difficulties in the mongrel lease power
supply, regarding dependability, adaptability, effectiveness,
stack change, top power cut, and permanency advertise free
market activity reaction bolster. Reliability is given by an
SG its highlights, for example, the capacity for blame
location and self-mending. In SG applications, bidirectional
vitality stream takes into account adaptable system topology
with disseminated age. The request side administration
highlight of the SG guarantees proficiency in vitality
utilization. The heap alteration highlight helps adjust stacks
despite their varieties. In the event that a client's heap
surpasses a normal sift old, power can be sliced for this
client to control power use in mind-boggling expense/crest
use periods.
XI. Improve performance of smart grids
It is estimated that the lack of security is one of the biggest
difficulty in smart grid and it is increasing very fast by
which users can lose their personal information’s. There are
many organizations and power suppliers companies
developed stargazes and action plans to improve the security
of smart grids. In the last five years around 131 smart grids
plans were funded and many users used this technology in
their power networks and other peripheral devices [21].
There are following steps can be sued to increase the
efficiency of smart grids-
Automated distribution system- this type of system can
decrease the frequency of sustained outage and it provides a
platform where users can control the flow of the power
system. It also decreases the number of affected users with
the help of the rerouting system [11].
Automated voltage control system- it is a very important
step because it has the ability to reduce energy losses and
distortion. People can improve the efficiency of their power
devices by adopting automated voltage system.
Remotely accessible smart meters- it can reduce the cost
of components, increase outage management, user self-

SMART GRID 6
service, and also produce various tools to understand the
concept of smart grids.
Adopting various security plans- there are various kinds of
programmes are developed to reduce security risks in smart
grids, for example, firewall, cryptography, cloud computing,
pattern recognition process, and virtualization technique.
Smart grid advancement has a tendency to be driven by one
of two key dreams for upgrading electric power connections
for the two utilities and their clients: the European Union,
what's more, U.S. models . The European Union vision is by
all accounts driven principally by natural concerns, while
the U.S. getting ready for the brilliant lattice has been
propelled principally by a craving for dependability
changes. In the United States, attractive attributes of the
keen lattice incorporate self-recuperating transmission and
conveyance control designs that will be impervious to
purposeful assaults and cataclysmic events, what's more,
high power quality levels along a wide scope of
measurements that go well past blackout insights [1]. One of
the key objectives of model keen lattices, for example, the
one being created by the Pecan Street Project in Austin,
Texas, is to advance dynamic client support and basic
leadership and in this way to make another lattice
operational condition in which both utilities and power
clients influence each other.
XII. Conclusion
The smart grid is one of the biggest variations in the history
of the energy system and it is more efficient rather than
traditional power grids. It is observed that between 2014 and
2018 the rate of smart grids is increased by 28% worldwide
and many organizations adopted this technology to improve
the productivity of their power systems. There are many
benefits of this technology such as more reliable, improved
flexibility, decreased electric losses, and also improved the
mobility of peripheral devices. This report explained the
working principle of smart grids, the comparison between
traditional power grids and smart grids, advantages and
disadvantages and role of a computer system in the field of
smart grids. The main advancement in smart grid technology
is that it is an automatic process which provides two-way
infrastructures between control contractor organizations and
customers. Therefore the problem of security can be reduced
by adopting various plans like cryptography, pattern
recognition, and firewall software. People should secure
their data or information through cloud computing and they
can avoid cyber-attacks by improving their security
programmes.

SMART GRID 7
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