IEEEx - SP | 2-1

We now move to segment two of the six segment course on Introduction to the SmartGrid. In this segment, we will
introduce the SmartGrid, define its key characteristics, dimensions, drivers, and benefits. Let us first review what
we learned in segment one. We learned that the electric value chain consists of generation, transmission,
distribution, and end-use customers.
We also learned that electric energy cannot be stored economically at good scale. There are many inefficiencies
along the traditional electric value chain. And increasing electric demand, high transmission and distribution
losses, and the aging infrastructure are some of the key components that are creating the imperative for a
smarter grid.
What is the SmartGrid? We believe the SmartGrid is a modernized electrical grid, a transmission and distribution
infrastructure that is reliable and secure, that can meet future growth, while intelligently responding to the behavior
and actions of all the electrical power users connected to it. And yet still delivering power in a reliable, efficient,
economic, and sustainable manner.
We believe the SmartGrid is intelligent in sensing system overloads and taking corrective action. It can
accommodate renewables and distributed energy, and is sustainable for the future by reducing dependence on
fossil fuels and decreasing carbon emissions. It is resilient to natural disasters and attacks. It is efficient in meeting
increased customer demand without adding infrastructure, provides a safe environment for utility workforce and
consumers, and, most importantly, is quality focused in delivering the power quality needed for a digital economy.
In this picture, we show the SmartGrid and all its dimensions. We believe there are a total of 12 dimensions. On
the utility side, we include distributed energy, energy storage, transmission and distribution automation, advanced
operational systems, micro grids, and data analytics. On the customer premise side, we include electric
transportation, smart meters, smart homes and buildings, demand response, and energy efficiency.
Communications and cyber security cover all of the dimensions and are central to the SmartGrid. This means that
the SmartGrid is a lot more than just the electrical grid becoming smart. Each segment of the electric value chain
becomes smarter with the deployment of modern technologies. Remember these dimensions of the SmartGrid.
They are very important to understand how the new infrastructure is coming together in the age of the smarter
grid.
The key drivers behind the SmartGrid are increased efficiency through grid optimization. Application of advanced
technologies to modernize the grid. Legislative policies and regulatory mandates such as renewable portfolio
standards, energy efficiency resource standards, and others. Economic growth. Growing demand for energy. The

need for 21st century power quality. Sustainable for the future, which requires reducing carbon emissions.
Reduced dependence on foreign oil and greater national security. Advanced customer service, such as improved
outage communications, demand response, energy efficiency programs, energy usage portals, and others. And,
lastly, increased safety for utility personnel and customers.
We have identified, at a high level, four top benefits for the SmartGrid. This means implementation of SmartGrid
technologies must follow into at least one or more of these categories. Let's list them out. Faster storm recovery,
reduced utility costs, improved customer engagement, and breaking down utility silos. Let's go into each one of
them.
SmartGrid enables faster storm recovery. Let's look at some real world examples. PEPCO. When super storm
Sandy hit the eastern seaboard in October of 2012, it caused widespread outages and damage across 24 states.
PEPCO, which delivers electricity to customers in the mid-Atlantic region, leveraged real time data from 425,000
smart meters to automatically identify and locate outages and restore power to a majority of customers in about a
day. In addition, the use of data analytics on real time outage data allowed PEPCO to present regional outage
maps on its web and continually update customers and service crews of the restoration status.
Florida Power and Light has seen much success with outage restoration as well, but they have used distribution
automation and its management. FPL deployed 230 automatic feeder switches, capacitor and voltage regulation
automation equipment, and a distribution management system all to help reduce outage restoration times.
Storm recovery is important because storm related outages cost the US economy somewhere between $20 to
$55 billion annually. And we believe SmartGrid technology such as AMI, distribution management and automation,
distributed energy, microgrids, data analytics, and so on can help prevent and restore outages quickly.