The Smart Grid

1. Introduction
Energy has been opined to be a major driver for any economy with its lack impeding societal
development [1-4]. Though not explicitly stated, it was posited to be instrumental to the full
realization of the Millennium Development Goals (MDGs). The significant growth witnessed in
China, Singapore, Malaysia, United States of America (USA) and OECD countries etc. could be
attributed to the fact that these economies have a huge per capita of electricity compared to the
countries in sub-Sahara Africa (SSA) and South East Asia (SEA) who have over 850 million
persons without access to electricity [5, 6]. The Figure 1-1 [7] shows a comparison between
some developed countries/regions and under developed/developing countries/region with respect
to electricity access while Figure 1-2 [8] shows the electricity per capita for the same
countries/regions. The low electricity access for the SSA region is seen to be less than 40% of its
overall population compared to 100% for the OECD countries and USA. This obvious electricity

Fig 1-1: Electricity access (% of population) for selected regions

Fig 1-2: per capita electricity consumption (kWh) for selected regions

(energy) deficiency for the SSA and SEA regions has also seen a decline in economic growth for
these economies due to the huge costs involved in running their industries.
Fossil fuels have continuously played a huge role in driving the generators and power houses
responsible for electricity generation in the developed economies due to their cheap nature and
advanced technology in this sector. However, recent occurrences bordering on energy security
and sufficiency seem to cast doubts on the viability and sustainability of this cheap source of

energy [9] as their harmful effect on the environment alludes to the fact that in order to safeguard
the quality of life of the future generations, cleaner and more efficient energy sources be evolved.
Stimulated by environmental concerns as regards climate change and the growing pressure to
reduce carbon emissions from the energy sector, there has been a heightened global interests in
renewables [10-12] alongside new and efficient technologies [13] with a substantial commitment
to the development and deployment of these technologies. This is consequent upon the fact that
sustainable development is only feasible when there is an un-harmful synergy between the
environment, economy and energy as shown in Figure 1-3 [14, 15].

Economy
Sustainable development
Energy
Environment
Fig 1-3: energy, environment and economy mix

Traditionally, the movement of electricity from the generation station to the consumer is shown
in the Figure 1-4. It is observed from the Figure 1-4 [15] that electricity movement is

unidirectional and involves huge losses down the electricity transfer network as shown in the
Figure 1-5 [16]. The consideration of renewables however as an alternative to fossil fuel based
electricity generation has seen adjustments being made to the movement of electricity as the
incorporation of these renewable energy sources (RES) means generation could be injected as
either the generation entry point or the distribution point. Similarly, the introduction of such
schemes as the Feed-in Tariff (FiT) and grid coupled inverters mean consumers could also
become electricity producers (leading to the evolution of the so called prosumers). This
injection of electricity at these points different from the generation side takes advantage of the
fact that electricity is bi-directional in movement depending on net energy balance as it flows to
establish equilibrium. This bi-directional movement of electricity is thus shown in the Figure 1-6
[15] with Figure 1-7 showing the exploded traditional grid architecture.

Level 1

Generation

Level 2

Transmission

Level 3

Distribution

Level 4

Consumption

Energy Flux is unidirectional

Fig. 1-4: Traditional concept of Power flow

The significant growth in the exploitation of RES like wind and solar has seen a tremendous
increase in renewable energy technologies (RETs) that allow for the full maximization of these
RES. For example, the combined installed wind capacity in 2010 was estimated to be about 160
GW (an increase of about 60 GW compared to 2006 estimate) and is expected to rise to about
460 GW in 2015 [17]. China has seen an aggressive wind program take its wind farm capacity to
about 13242.2 MW representing a 108.4% increase from 2008 [18]. In the United States,
cumulative wind power capacity as at 2012 was put at 51, 630 MW due to an additional wind
power generation capacity of about 4728 MW in 2012 alone [19].

Primary energy for

Electricity generation (x, MWh)

x MWh

Generated Capacity, y MWh (one-third of x, MWh)

y = (x/3) MWh

T & D Losses (9% of y, MWh)

(9*y/100) MWh

Distributed Electricity (91% of y, MWh)

(91*y/100) MWh

Fig. 1-5: losses in current energy chain

Generation

Energy Flux is bidirectional

Transmission
Distribution
Self-Generation

Consumption
Distribution
DG

Fig. 1-6: New concept of Power flow

The increase in these technologies notwithstanding, a limitation in the utilization of the
tremendous capabilities of RES occurs due to the nature of the traditional grid. A system is
therefore needed that is flexible and seamlessly allows for the sharing of resources. Also, there is
the need for this envisioned grid to incorporate fully information and communications
technology (ICTs) in its operations. A total overhaul would thus be needed in making the existing
grid even a fraction of what this optimistic grid should look like. Also, the huge costs involved
would practically make it almost impossible.

Figure 1-7: Traditional grid exploded architecture

The block diagram of the envisioned smart grid is shown in the Figure 1-8. It is observed from
the Figure 1-8 that such a grid must be capable of accommodating the variability caused by
fluctuating RES, the instability caused by consumers feeding back electricity to the grid (from
their roof top solar panels, plug-in hybrid electric vehicles (PHEV), battery storages etc.), the
wind farm operator injecting energy at medium voltage into the grid from another location etc.
The complexity is further increased considering the fact that alternating currents is the standard
of operation making synchronization at points of common coupling (PCC) very difficult.
Overcoming all these challenges would further lead to the problem of energy balance between
demand and supply. Considering the fact that at every instant supply must match demand, the
grid must be capable of ensuring this. Also, in the event of a supply surplus, the grid must be able
to route extra electricity to storage or initiate shut down procedures (or communicate a reduction
in generation capabilities of some generating plants). Furthermore, it may be capable of
predicting demand and ensuring that available supply matches the demand for the instantaneous
time under consideration.

Figure 1-8: Block diagram of the envisioned smart grid showing its subsystems
It can thus be seen that the complexity of this system is also further complicated considering the
fact that electricity cannot be easily stored and a lot of institutions, companies, industries and
service oriented organizations like hospitals, clinics, transport etc. depend solely on the grid to
carry out their activities and a failure in the grid supply will initiate a torrent of problems. The
exploded architecture for such a complex grid call the smart grid is shown in the Figure 1-9. The
Figure 1-9 shows the role of ICT in facilitating the operations of the smart grid. From the Figure
1-9, a smart grid controller is introduced to harness the outputs of the other subsystems. Artificial
intelligence (AI) is also seen to be of great importance in the prediction and modelling of such
parameters as wind speed, solar radiation, demand profile, supply potential prediction etc.
Similarly, the generation controller block controls the generation from plants based on advanced
information from the controller etc. Other subsystems like the advanced metering infrastructure
(AMI), Demand Response (DR), Dynamic Pricing (DP), Communications control etc. are also
incorporated to ensure that system balance is ensured.

The two way communication between the consumers and the grid is also maintained through the
smart meters which communicate to users their consumption patterns, current prices etc. This
report thus aims at providing a thorough and summarized description of the major subsystems
that make up the smart grid and how they interact across the smart grid network. Section 2
introduces the concept of smart generation techniques such as distributed generation, microgrids,
virtual power plants etc. Section 3 provides a detailed review of energy management techniques
for the consumer side traversing such areas as energy management techniques and its growth,
demand side management (DSM), dynamic pricing etc. Section 4 examines the role of
government and regulatory institutions in ensuring a safe operation of the smart grid examining
policies ranging from fair trading to privacy issues, grid codes, standards etc. Section 5 examines
some smart grid initiatives being localized for localization in SSA and SEA considering the fact
that they have a bulk of the persons without access to electricity. This section further explores the
financial initiatives and technical frameworks being set up to encourage the proliferation of
electricity. Section 6 examines the current status of the smart grid using selected case studies
while providing a chart for its future progress with section 7 concluding the report.

Figure 1-9: The exploded smart grid architecture.

2. Generation techniques
Electricity generation in the smart grid differs from electricity generation in the traditional grid.
In the traditional grid, generation is based on assumed full demand resulting in under-utilization
of the generation plants and fuel wastage since there is better fuel utilization at rated capacity.
However, in the smart grid, generation is controlled based on predetermined demand. This way
the need for spinning reserve is usually reduced. Also, in the envisioned smart grid attention is
shifted from the conventional means (fossil fuels) of electricity generation to more
environmentally friendly and sustainable means of electricity generation like wind, solar and
biomass (though there has been a heightened interest in gas in recent times). The advantage of
this newer means of electricity generation being considered (solar and wind) lies in the fact that
supply from them could be dispatched (scaled) based on competing factors like demand, cost etc.
The integration of these RES is also facilitated by power electronics that handle the variations
they introduce in voltage and frequency. An additional difference here is the fact that generation
is not only from the generation point but across the electricity network (storage, consumers etc.).
This flexibility of generation in the smart grid sets it apart from the traditional grid. Biomass for
example is gaining interest as a means to meeting the European Union (EU) goals on reduction
in greenhouse gas (GHG) emissions due to its little start-up capital investment and dispatch able
nature. In Canada, there were 23 active biomass to electricity projects as at March 2013 with a
combined capacity of about 18.7 MW. Iskandar Malaysia (IM) hopes to buoy its RE contribution
to 6% of total generation in 2015 with further investments meant to increase this to 10% in 2020
and 12% by 2025. In all these, biomass is being posited to play a critical role in its RE electricity
generation [20-22]. Electricity generation from the sun through photovoltaic (PV) technology is
also a major RES. In fact, solar energy is posited to be the most abundant form of energy with
the sun being an obviously clean and cheap energy source. As at 2005, installed PV capacity
worldwide was an estimated 1.5 GW. Furthermore, it is reported that the hourly solar radiation
reaching the earth if harnessed could meet the energy demands of the worlds population for a
year. The utilization of RES at local places could be exploited using a number of technologies. A
couple of these are described subsequently [23-25].

2.1.

Distributed Generation (DG)

The concept of embedded generation (DG) stems from the fact that generating electricity at load
centres reduces transmission and distribution losses. As a component of the smart grid, DGs
greatly encourage the exploitation of local resources. Furthermore, they can also be incorporated
into the existing grid or operated as stand-alone devices. Familiar terms associated with DG
include distributed energy resources (DERs), microgrids, virtual power plants (VPPs), small
scale energy zones (SSEZ) etc. According to [15], the infrastructure that facilitates the synergy
between DG and storage is referred to as distributed energy resources (DERs). Various
definitions have been put forward describing the VPP. They have been described as energy
mangers that hire DERs to profit maximally from their exploitation [26], to a primary vehicle
that is capable of delivering the most efficient cost integration of DERs [13]. A more robust
definition for the VPP was put forward by [15] as intelligent autonomous system equipped with
advanced metering infrastructures, information and communication technologies, energy
management systems and a host of other smart devices that aggregates dispersed energy
resources, distributed generation units and renewable energy sources in a bid to creating a virtual
pool of power with uses varying from meeting supply shortfall to supplying isolated areas and
for other purposes as defined by the reasons behind its design while meeting all technical, cost
and future constraints. This exhaustive description aims at anticipating future needs and
upgrades and providing an avenue for such in the VPP design. In conveying the description of
the VPP put forward by [26], the Figure 2-1 provides an apt overview of the VPP.

Energy playing field

Prospective DER for hire.

PV Array

VPP Communication route

PV Array

From distribution Substation

Micro Dam
Wind Turbine

microCHP
PV Array
PV Array
Prospective DER for hire.

VPP

Load/consumers

VPP bidirectional supply route

Fig 2-1: Energy playing field with VPP as manager

3. Energy Management
Energy management is actually a core in the smart grid development since the overall aim of the
smart grid initiative is to discourage the need for the creation of bigger and additional generation
plants. The smart grid initiative is premised on among other facts the idea that with the
consumers being more aware of their energy consumption pattern in real time and with other
subtle prodding techniques, they (the consumers) could adjust their consumption pattern to show
a more environmentally friendly attitude in terms of consumption. This has led to the
development of a metering infrastructure that has seen an increase in associated technology like
smart meters [27, 28], energy meters [29-31] and human computer interactive (HCI) devices [3234] which inform users on their consumption profile, carbon emissions, efficiency of
consumption etc. Furthermore, there has been the introduction of demand side management
(DSM) technique like dynamic pricing (DP) [35-37], time of use pricing (ToU) [38], time of day
pricing (ToD), demand response (DR) [39-42] etc. Additional initiatives have seen the increase in
more energy efficient electrical devices like light bulbs, refrigerators, entertainment devices etc.
The interaction between the EMS and the smart home is shown in the Figure 3-1. These various
sub-components of the smart grid are discussed subsequently.

ENERGY
GENERAT
OR

ENERGY
STORAGE

ENERGY
MANAGEMEN
T SYSTEM

APPLIANC
ES

SMART
METER

Figure 3-1: Energy management system representation

3.1.

Smart meters

These are energy meters fitted with electronic components that enable the meter to produce very
time specific reports to the consumer and the distributor the advantage of which is to enable the
prosumer actually improve on their power consumption behaviours and contribute their own
quota to making the grid more efficient as well as improve grid stability and security. They form
a conspicuous part of the advanced metering infrastructure (AMI) and are fitted with
communication equipment that enables a lot of flexibility with the use and control of power
supply by the consumer. Smart meters support data reporting and registration, send messages to
the consumer, allow for remote supply control by the consumer and accommodate different
tariffs as well as support credit and pre-payment modes [43].
3.2.

Demand side management (DSM)

DSM forms an integral component of the energy management system (EMS) as it basically seeks
to influence the consumer consumption pattern subtly through such means as DP, HCI devices
etc. In [33], a persuasive smart energy management system (PSEMS) was developed to act as an
intermediary between prepaid meters and the consumer distribution board. The aim of this

DSM/HCI component is to provide electricity consumers control over how much they spend on
electricity on daily basis. Though such a scheme was applied in SSA, it has immense potentials
in the developed world since existing smart meters and HCI devices merely inform the
consumers rather than giving them control over how much they could spend on electricity.
3.3.

Energy efficiency

In a report by the IEA, energy providers are opined to be a major driver in ensuring efficiency
limits is met. For example, in meeting the energy efficiency obligations (EEO), Efficientia a
subsidiary of CEMIG (the Brazilian electricity distribution company) is obliged to spend about
0.05% of annual revenues on efficiency projects. Similarly, HEPA SpA provides free consultancy
services to large industrial operators in the area of energy measurement and valuation which is
aimed at helping them reduce energy wastage while in China; a government policy mandates
regions to maintain a 0.3% reduction in peak demand of preceding year. Similarly, the
incorporation of smart devices for lighting and carbon limits also enforces efficiency from
consumers and buildings.
3.4.

Feed in Tariff (FiT)

The feed-in Tariff (FiT) system is one of the most lucrative incentives prosumers stand to gain
from since the smart grid is aimed at providing more reliable and cheaper power supply to
prosumers. The feed in tariff is the extra included in the deal. You dont just get cheaper power,
you also get paid when you generate more power than you prosume (the process of consuming
energy smartly and efficiently). The extra generated energy by whatever means, usually solar,
entitles the prosumer to some payment by the utility company. This is one way that the smart
grid integrates the prosumer and makes the prosumer better off than a consumer. In a study,
feed-in tariffs showed a five percent reduction on the demand side and had a potential to cause a
7-15% reduction in the local marginal price of electricity.
3.5.

Energy storage

Storage is an important component of the emerging smart grid as it provides a backup in the
event of grid failure to sensitive sectors like healthcare, communications, defence etc. While the
conventional idea of storage refers to batteries etc., consumers in a smart grid scenario could be

classified as storage (if they participate in a demand response (DR)) scenario. The idea of this
flexible storage is to be able to dispatch these remotely controllable loads through smart
thermostats that enable them to be put on line and off line within a short time based on the real
time demand. This way peak demand is shaved (adjusted accordingly) without the need for
additional generation capacity.
3.6.

Plug in electric vehicles

The plug-in electric vehicle (PHEV) offers another exciting challenge to the envisioned smart
grid. With improved storage technology and growing investments in alternative fuels for
vehicles, PHEVs are gradually gaining momentum in terms of purchase. The current projection
for the demand of EVs by 2050 is enormous as the technology is expected to experience high
demand in all parts of the world. The Figure 3-2 gives a graphic representation of the projected
demand.

Figure 3-3: Projected worldwide sales for EVs

4. Standards and regulations
Interoperability plays a crucial role in the success of the smart grid. With a myriad of problems to
be solved and an increased growth in solutions all aimed at ensuring its stability, there is the need
for standards that will allow for solutions to operate and co-exist harmoniously without
detriments to the smart grid. Furthermore, grid umpires are needed that ensure the protection
of rights of the consumers as well as the suppliers. It is worth nothing that there does not exist

any code known as a smart grid code. This is because the smart grid is a collection of different
solutions all lumped together to improve the flexibility of the traditional grid. However, different
regulations and standards do exist that regulate the operations of the sub-blocks and provide for
interoperability. Bodies such as the United States National Electric Regulatory Commission
(NERC), Institute of Electrical and Electronics Engineers (IEEE), International Electrotechnical
Commission (IEC) etc. do regulate from time to time these existing standards, anticipate
future/likely problems and carefully evolve new standards to regulate such. According to [44,
45], the different standards were classified into six groups. The Tables 4-1 4-4 gives a highlight
of some of these standards under their main classification and a brief description.
Table 4-1: Substation protection and automation
S/n Standard
Brief description
1
IEC 60870-5
Standard for telecontrol equipment and systems with coded bit serial data
monitoring and controlling geographically widespread processes [46]
2
IEC/IEEE 60255-24 defines a format for files containing transient waveform and event data
collected from power systems or power system models [47]
3
IEC 61850
Standards for Communication network and systems in substations [48-51]
4
IEC 61850 Ed 2.0
Standards for Communication networks and systems for power utility
automation [52]
5
IEC 61850-7-410
Standards for Hydro-electric plant communication for control and
monitoring [52]
6
IEC 61850-7-420
Standards LNs for Distributed Energy Resources [52]
7
IEC 61850-7-5xx
Standard for application guides [52]
8
IEC 61850-90-1
Standard for Communication between substations [52]
9
IEC 61850-90-3
Standard for condition monitoring [52]
10
IEC 61850-90-5
Standard for Synchrophasor communication [52]
11
IEC 61869
Standard for Instrument Transformers [52-54]
12
IEC 61869-9
Standard for Digital Interface for Instrument Transformers [52]
13
IEC 61869-13
Standard for Standalone Merging Unit [52]
14
IEC 62271
Standard for High-voltage switchgear and control gear [52, 55-58]
15
IEC 62271-3
Standards Digital interfaces based on IEC61850 [52]
16
IEC 62439-3
Standards for High availability automation networks [52, 59, 60]
Table 4-2: Wide Area Situation Awareness (WASA)
IEEE std C37.118Standard for Synchrophasors for Power Systems equipment
2005
measurement data [61, 62]
IEC 61850-90-5
Standards for Transmit Synchrophasors information
IEEE std C37.242
Standards for Synchronization, Calibration, Testing, and
Installation of PMU for Power System Protection and Control [63]

IEEE std C37.244

Standards for Phasor Data Concentrator (PDC) Requirements for

Power System Protection, Control, and Monitoring [64]

Table 4-3: Interconnection of distributed energy resources

IEEE std 1547 Standard for Interconnecting Distributed Resources with Electric Power
Systems [65-68]
IEC 61850-7- This the standard for basic communication structure - Distributed energy
420
resources logical nodes [69-71]
IEC 61400
This the Standard for Wind turbines
IEC 61400-25 This is the standard of Communications for monitoring and control of
wind power plants [72-75]
Table 4-4: Time synchronization
IEEE 1588 This is the standard for Synchronization over data networks. This standard
describes a protocol facilitating precise synchronization of clocks in
measurement and control systems [76, 77].
IEEE std
This standard is intended primarily to facilitate the adoption
C37.238
of IEEE Std 1588-2008 for power system applications
synchronization that require a high precision time [78, 79].
Table 4-5: Cyber security
IEC 62351 This is a Standard for Power systems management and associated
information exchange - Data and communications security [52, 80-82].
IEEE std
This is a Standard for substation intelligent electronic Devices (IED) cyber
1686
security capabilities [52, 83, 84]
IEC 61850- This is a standard for the design of electrical substation automation [85,
90-5
86]
Table 4-6: Other relevant standards
IEC 61970 This is the Standard for Energy management system application program
interface (EMS-API) [87-89]
IEC 61968 This is the Standard for Application integration at electric utilities - System
interfaces for distribution management [90-92]
5. Localized smart grid initiatives
The growth of the smart grid notwithstanding, there appears to be a disconnect between solutions
proffered for the developed economies compared to solutions for the developing economies. For
example, the concept of dynamic pricing lacks locus in SSA and even in most parts of SEA
owing to the poor electricity network in such regions. Similarly, the introduction of HCI devices

and other EMS schemes may lack full utilization owing to the low level illiteracy in these
regions. Due to this technical lacuna, it becomes imperative that smart grid solutions be localized
to match the terrain and suit the people of these regions. In assisting off grid medium income
dwellers manage their solar powered inverter systems, [93] proposed an intelligent load manager.
This initiative localizes the management of embedded generators and load profile dispatching for
demand side management in the developed economies to suit SSA and provide some optimal
comfort in terms of dispatch. Similarly, [33] proposed a persuasive smart energy management
system (PSEMS) for a grid connected house with grid interruptions in SSA. This device localizes
the functions of the smart meters by influencing consumers preferences on the prepaid meter. It
furthers the responsibilities of the smart meter by ensuring that the user is in control of how
much electricity should be consumed on a daily basis a function currently lacking in smart
meters. The Millennium Development Goal (MDGs) was launched in 2000 with the aim of
fighting poverty [94]. In other for these goals to be achieved access to energy services were
essential in the area of social and economic development [95]. Emphasizing the need of energy
in achieving socio-economic development, Sustainable Energy for All (SE4ALL) project was
declared in 2014. SE4ALL is focused on ensuring universal access to energy, increasing energy
efficiency and the use of renewable energy around the globe by 2030. The initiative is a
partnership between United Nations and World Bank with other stakeholders like private sectors,
civil societies, financial institutions and leaders from both developed and developing countries
[96]. This project aims at solving the major challenges in our time which are Poverty and climate
change. In other to achieve these goals, modern technologies are applied in micro-hydro power,
solar photovoltaic systems, use of biomass efficiently and modernizing cooking fuels. The main
challenge to the project is generating funds in low-income countries to increase energy
production and effectiveness of off-grid technologies [97].
In view of this, the World Bank is initiating a program that will bring the majority of the
population in Bangladesh under Rural electrification and Renewable Energy Systems project.
The project aims at subsidizing the cost of building solar energy systems. Based on micro
finance system, rural based PV systems are provided at subsidized prices by companies like
Grameen Shakti. Also, in India another program has commenced to replace about five million
water pumps running on diesel to solar energy. The solar project is aimed at producing 700 to

2100 GW of electricity. Sustainable consumer programs are established in India to encourage

people to install solar system at homes. An example is banks giving loans to individual for the
installation of solar homes systems [98]. Moreover, in Brazil the motivation for smart grid has
made the government to come up with policies and regulations to help in the programs
implementation. Some of these regulations are smart metering guidelines, Access guidelines for
mini and micro distributed system, Mandatory implementation Geographical information system
and Utilization of the distribution system to transport digital signals [99]. These are just a few
of such initiatives necessary to bridge this growing technical divide between energy solutions for
the developed economies and the developing ones.
6. Smart grid status, its interdependence and growing trend
The smart grid has come to stay. There is no doubt that there is the need to reduce the effect of
carbon emissions in the environment and achieve some form of sustainability in the ecosystem.
However, there are growing concerns concerning the issues of privacy since data mining is at the
heart of the smart grid system. These fears become more pronounced as cyber terrorism gains
momentum. With lots of consumer information being transmitted, there is the possibility of data
thefts. These threats notwithstanding, research is on-going to provide a more resilient grid that
would ensure data privacy. Furthermore, there seem to exist this interdependence between the
smart grid growth and the growth of the renewable energy sector as there is no doubt that the
progress in exploitation of RES provides a platform for the full realization of the smart grid. Due
to advancements in technology and implementation of smart policies around the world, there
has been yearly rise of 25% of energy produce from Photovoltaic (PV) for the past ten years with
the highest of 45% in 2005. In 2005, PV added 1,727 MW of power to the world generating
capacity with 833MW, 353MW and 153MW generated in Japan, Germany and U.S respectively
[100]. In Europe the overall renewable energy was increased by 1.1% of the total energy
consumption from 2011 to 2012. In the area of wind energy, 12,086 MW of power was added in
2012 matching the projected value. One of the major contributing factors to the rise is as a result
of the sudden increment in the price of gas during this period. Considering the area of PV in
Europe, which was the major focus of PV in 2012 around the globe, it accounted for about 58%
of the world generated PV power of 28.9 GW. Source from Renewable Energy- statistics in

Germany shows that 7,604MW of power was added to the national grid in the year 2012
increasing the countrys PV capacity to 32,643MW [101].
Over the past decade the increase of renewables has been impressive following the rise in the
total energy capacity (excluding large hydro) from 85 GW in 2004 to 560 GW in 2013. The total
installed capacity was increased from 48 GW to 318 GW and 2.6 GW to 139 GW for Wind and
PV generation respectively with in the same period. The Chart below shows the addition of
renewable energy from 2004 to 2013 [102].

Figure 6-1: Renewable energy capacity addition for selected countries and regions [102]
7. Conclusion
This report has provided a thorough overview of the smart grid showing its subsystems and the
complexities involved. The standards which form a very important core in its operations have
also been listed while several regulatory bodies involved in harmonizing the smart grid
operations have been mentioned. As a complex system made up of more complex subsystems,
the smart grid bases its operation and seamless integration of component modules on
interoperability which ensures there is a common platform that can accommodate all its
components.

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