Smart grid - transforming power system operations

Electric power systems are entering a new realm of operations. Large amounts of variable generation tax our ability to reliably operate the system. Couple this with a greater reliance on the electricity network to serve consumer demand that is likely to rise significantly even as we drive for greater efficiency. Trade-offs between energy and environmental needs will be constantly negotiated, while a reliable supply of electricity needs even greater assurance in a world where threats of disruption have risen. Smart grid capabilities are being proposed to help address the challenges confronting system operations. This paper reviews the impact of smart grid functionality on transforming power system operations. It explores models for distributed energy resources (DER-generation, storage, and load) that are appearing on the system. It reviews the evolving nature of electricity markets to deal with this complexity and a change of emphasis on signals from these markets to affect power system control. Smart grid capabilities will also impact reliable operations, while cyber security issues must be addressed as a culture change that influences all system design, implementation, and maintenance. Lastly, the paper explores significant questions for further research and the need for a simulation environment that supports such investigation and informs deployments to mitigate operational issues as they arise.