The commitment of the “Smart Grid” to accept a sustainable, reliable and a new 21st electricity grid has been underway for over a decade. Most organizations began their smart grid journey with arrangements in smart metering infrastructure, so it within the youth the term smart grid was equivalent with smart metering. 

Today, smart metering is sort of cultured with an infiltration level of over 50 percent within the US. However, the smart grid comprehension has moved beyond smart meters to putting together intelligence within the communication and distribution network. While the acceptance for intelligence and automated control within the transmission anticipates the emergence of smart grid within the 2000s, it's circulatory system where the new value pools are realized. 

A large number of utilities are already pulling the advantages of advanced distribution executive systems that allow not just examining of feeders and therefore the “last mile” - but can also curb devices to isolate faults, restore systems automatically, conduct voltage development and a spread of energy efficiency functions either through applications or through a blend of technology and policy driven demand response programs. While the seepage levels are still modest, many utilities have active programs which will become operational over consecutive two to 3 years.

As we look into the longer approach, the promise of the smart grid is far from over. Over consecutive five to ten years, an entire host of latest promises are coming up. The macro trends focused on decentralization of resources, decarbonization and digitization are driving the necessity. The distributed energy resources (DERs) are introducing new operational challenges which include the development in demand side with the evolution of smart cities, smart and connected factories, and electric vehicles. 

The world is facing extraordinary levels of complexities that make smart grids important. Increased infiltration of intermittent renewable resources at the distribution ground would need smart grids to counter new issues made by backward flow in transformers, dynamic protection and system arrangement settings, and voltage and system excursions. As behind the meter resources grow, real-time surveying will become a need for better forecasting; inform revenue planning and real-time system maintenance.

So proceeding, smart grid deployments will include an expanding presence of leading data analytics, AI and machine learning, also as upcoming technologies like drones, and blockchain. But more importantly, the deployments will have more transformative brunt resulting from increased appeal and provide side integration focus. Specifically smart grid will impact in three areas:

1. Real-time market assimilation:

Smart grids are going to be the stage which will enable gathering of real-time knowledge on electricity consumption and usage with the opportunity side—which includes generation, transmission and distribution. With a generation of DERs there's already a known need for creating a distribution market with the distribution network as a platform for both technical connection also as for real-time market transactions. To empower such a market that promises reliable market operations needs a broad range of attributes from the smart grid. The commercial structure has got to add conjunction with system balancing with resources as varied as microgrids, battery storage, solar arrays, electric vehicles, etc., in addition to dynamic load adjusting and configuration management of the distribution system.

2. Deployment of digital twins:

Digital twins eclipsed traditional simulations and models with their capability to correspond the situational context the system, processes and life cycle of the physical system. By administering self learning techniques, AI and machine learning, these digital power grid models are adjustable and supply a virtual copy of what's happening within the physical world. Digital twin would require to use smart grid data among other data sources to supply one integrated view of the physical system—for asset and system planning, real-time grid operations to operating ancillary support services. With increasing complications within the system, the needs will little question keep expanding for more integrated simulation. On the other hand, siloed analyses supply insights on asset behavior, making tradeoffs between driving the operating limits, and guiding capital and resource allocation.

3. Achieving Flexible operations

As generation resources become occasional and disintegrated with decentralization, intraday load profiles become highly uncertain and volatile. As distinct fit purpose resources turn on and off, leading to a boost within the number of operating modes, operational flexibility will become an achievement defining attribute. Having the ability to reply to dynamic system dynamics won't only require better forecasting techniques supported data, but also fast reply controls and in certain cases predictive control of operations.

As the industry begins the subsequent chapter of the smart grid, organizations will need to ask themselves what ratio to bet and invest in their future positioning. For years, their focus, abilities, and talent structure are on definite technologies. The longer term will pose more transformative questions. Traditional roles will change counting the role of the CIO. There'll be a need to gather and retain data and analytical talent and adoption and hanging of latest and emerging technology must be quick and a part of on-going business.