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awareness). These components include advanced smart switches on the distribution system that communicate with each other to reroute electricity around a troubled line and high‐resolution, time‐synchronized monitors, called phasor measurement units, on the transmission system. Concepts such as smart loads, smart generation distribution, smart electric vehicles (EVs), smart buildings, and smart switch are enabling a smarter grid [DOE 2015a]. Figure 1.7 illustrates a Smart Grid configuration, with common smart components (smart meter, smart appliances, phasor measurement unit, wind turbines, electric vehicle, smart switch, two‐way communication lines), although utilities making Smart Grid investments may opt for alternative configurations depending on cost, customer needs, and local conditions.

Schematic illustration of the common Smart Grid components.

      Source: [GAO 2011]. Public Domain.

      To deliver electricity more cost effectively in response to consumer needs and at the same time with less damage to the climate, the Smart Grid uses distributed energy resources (DERs), advanced communication, and control technologies.

      1.2.4 Smart Grid Communication Infrastructure

      A communication infrastructure is an essential part to the success of the emerging Smart Grid [Yan 2013]. Through a communication infrastructure, a Smart Grid can improve power reliability and quality to eliminate electricity blackout.

      As described in [Chen 2010], Smart Grid supports two‐way power flow and information flow to reach optimal electric power operation. Smart Grid shall consequently collect all kinds of information of electricity generation (centralized or distributed), consumption (instantaneous or predictive), storage (or conversion to energy in other forms), and distribution through the communication infrastructure. Then, the optimization of electricity utilization can be realized through appropriate information technology such as grid or cloud computing to allow appropriate actions in the entire Smart Grid through communication infrastructure again.

      Communication infrastructure is a complex ecosystem of separate yet interconnected systems. It consists of a variety of networks, including the broader Internet, cellular networks, optical backhaul networks, and local area networks. A scalable and pervasive communication infrastructure is crucial in both construction and operation of a Smart Grid [Yan 2013].

      For the purpose of planning and organization of the diverse, expanding collection of interconnected networks that will compose the Smart Grid, NIST adopted the approach of dividing the Smart Grid into seven logical domains, known as Smart Grid Conceptual Reference Model. The model includes the following domains [NIST SP1108r1]:

       Generation – Includes traditional generation sources and DERs; may also store energy for later distribution; generation includes coal, nuclear, and large‐scale hydrogeneration usually attached to transmission; DERs are associated with customer and distribution domains providing generation and storage and with service provider aggregated energy resources.

       Transmission – Carriers of bulk electricity over long distances; may also store and generate electricity.

       Distribution – Distributors of electricity to and from customers; may also store and generate electricity.

       Customers – End users of electricity (residential, commercial, and industrial); may also generate, store, and manage the use of energy.

       Operations – Managers of the movement of electricity.

       Markets – Operators and participants in electricity markets.

       Service providers – Organizations providing services to electrical customers and to utilities.

Schematic illustration of NIST conceptual reference model.

      Source: [NIST SP1108r1].

      Public Domain.

      Source: [NIST SP1108r1]. Public Domain.

Domain Roles/services in the domain
1 Customer The end users of electricity. May also generate, store, and manage the use of energy. Traditionally, three customer types are discussed, each with its own domain: residential, commercial, and industrial
2 Markets The operators and participants in electricity markets
3 Service providers The organizations providing services to electrical customers and to utilities
4 Operations The managers of the movement of electricity
5 Generation The generators of electricity. May also store energy for later distribution. This domain includes traditional generation sources (traditionally referred to as

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