Smart Grid Summary
It is a reality that existing traditional model of electricity generation and distribution is very old and not efficient. Technological advances applied in every sector nowadays but not in electricity generation model. As a result of high demand, the traditional model has become too costly, and now oil costs increased, and especially coal-fired generation has contributed to environmental pollution. And traditional model has big problems in terms of security since some big horrendous experiences with electricity deregulations and blackouts. A Smart Model is defined as distributed generation, renewable energy, renewable portfolio standards and the Smart Grid. This model responds to concerns about energy, environment and security. Distributed Generation aims to make production locally instead of large regional heavy grids for transmission and distribution. Solar cells and wind tribunes will take the place. The goal in changing the production type to small scale is, economic efficiencies by removing producers from the grid, environmental benefits , energy efficiencies , energy security advantages from terroristic attack, catastrophic accidents.. Article also put emphasis on pricing electricity. Traditional model is based on an average cost of electric generation no matter using it in a peak demand time or a regular time. Peak time electric generation cost is more expensive than regular hours because existing system has older and inefficient generation plants which are normally not used but being used to fulfill high demand in peak hours and also distribution cost is high because of high demand for electricity creates transmission congestion. Smart pricing provides marginal cost will give a more comfortable using style to consumer and help to conservation of energy. In last part of the article express with mathematical calculations that installation of smart meters is highly cost-effective than adding new generation and transmission capacity to existing electrical