INDUSTRY WATCH
Transforming power utilities into smart grids
Regional utilities are beginning to come to terms with technologies and points of failure say Dr Walid Fayad and Dr Adham Sleiman at Booz Allen Hamilton .
While few industries have escaped the digital tsunami , the utilities sector has remained stubbornly on the periphery . Utilities have historically under-invested in information technology , focusing instead on the operation technologies that enable their core business of generating , transmitting and distributing power . In doing so , they have typically taken a reluctant approach to IT , viewing it as a necessary evil for customer management and revenue collection .
A blend of classic electric grid with information , communication and control technologies , the smart grid is helping utilities to overcome many of the obstacles that stand in their way . The smart grid manages vast amounts of energy and information , while delivering more and costing less . The result is greater control over production , transmission , distribution and retail of electricity , as well as increased efficiency along with the reduced consumption and cost of energy .
What is smart grid The smart grid is a convergence of electric power , communications and IT industries , built on the foundations of Advanced Metering Infrastructure , an integrated system that enables two-way communication between utilities and their customers . Drawing on big data and smart technology , the smart grid adds intelligence across the existing electricity value chain to improve network efficiency , reliability and quality of service , while simultaneously integrating the actions of all grid actors , from generators and transmitters , to distributors and consumers . The smart grid allows for twoway power and data flow between the utility and its customers .
To achieve this efficiency and interaction between utilities and stakeholders , the smart grid operates along three architectural layers : infrastructure , applications and services , communications . With investment rising , a number of
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