6.1 Electrical Grid
The electrical grid is the electrical power system network comprised of the generating plant, the transmission lines, the substation, transformers, the distribution lines and the consumer.
Traditionally, electricity generation facilities have been developed in locations far from consumption centres with the electric grid connecting the two. A modern electric power system has mainly six main components:
- power plants which generate electric power
- transformers which raise or lower the voltages as needed
- transmission lines to carry power
- substations at which the voltage is stepped down for carrying power over the distribution lines
- distribution lines
- distribution transformers which lower the voltage to the level needed for the consumer equipment.
The production and transmission of electricity is relatively efficient and inexpensive, although unlike other forms of energy, electricity is not easily stored, and thus, must be produced based on the demand.(Source: http://www.ece.ncsu.edu/research/pes/ps Links to an external site.)
The challenges of electrical grid
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First there are infrastructural problems due to the fact that the system is outdated and unfit to deal with increasing demand. As a result, network congestion are occurring much more frequently because it does not have the ability to react to such issues in a timely fashion. Ultimately such imbalances can lead to blackouts which are extremely costly for utilities especially since they spread rapidly due to the lack of communication between the grid and its control centres.
- A second flaw is the need for more information and transparency for customers to make optimal decisions relative to the market, so as to reduce their consumption during the most expensive peak hours.
- A third problem is the inflexibility of the current grid, which can’t support the development of renewable energies or other forms of technologies that would make it more sustainable. In particular, the fact that renewable sources such as wind and solar are intermittent poses a significant problem for a grid that does not disseminate information to control centres rapidly. All of these problems are addressed by the smart grid through improved communications technology, with numerous benefits for both the supply and demand sides of the electricity market.