The fundamental method of operating power grids has not changed much in the past 100 years. It has remained essentially the same, although the number of customers and their needs have grown exponentially. Utilities across the world are trying to figure out how to bring their networks into the 21st century and the digital age. This effort to make the power grid more intelligent is generally referred to as creating a “Smart Grid.”
A Smart Grid will provide new capabilities to customers, utilities and the overall energy market. Consumers will have the opportunity for choices not just with the type of energy they receive but also with the ability to manage their own consumption habits through in home automation. On the other hand utilities will have the ability to undertake Energy & Load management to optimize the demand to match the supply.
The fundamental component for making the smart grid work is a robust and dynamic communications network; providing the utility the ability for real-time, two-way communications throughout the grid and enabling interaction between load centers and supply sources. Integration of communication devices brings all information together into a manageable, understandable format through the use of data management tools and specialized software applications.
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