International Journal of Advanced Engineering and Nano Technology (IJAENT) ISSN: 2347-6389, Volume-2 Issue-9, August 2015 11 Published By: Blue Eyes Intelligence Engineering & Sciences Publication Pvt. Ltd. Challenges in Implementing Smart Grid in Power Systems Anuranjan Misra, Upawan Kishor, Md Muazzam Abstract- Electricity, considered by most to be energy, is actually an energy currency. Power collected from a variety of sources, such as falling water, burning fuel, wind and solar is used to create electricity for delivery to customers. Electricity has proven to be a convenient and efficient means of delivering energy. Electricity is delivered at the speed of light and is consumed the instant it is created. There is no means to store electricity without converting it to another form of energy. As a result, the demand for power, driven by users, must match the supply of power from the available sources (e.g. generators and energy storage devices) at all times. As the Smart Grid continues to evolve, and demand- side management, which is available today, builds on its growing reputation as a cost-effective way for industrial users to manage energy usage and costs, buy-in from both residential and industrial consumers will become simpler. In this paper we have discussed use of ICT in Smart Grid, concept of Smart Grid, Goals and Objectives of Smart Grid, Characteristics of Smart Grid, Smart Grid Applications and Services, and Challenges in Smart Grid. Keywords: - Electricity, ICT, Grid, Smart, power I. INTRODUCTION Smart Grid is a new electricity network, which highly integrates the advanced sensing, and measurement technologies, information and communication technologies (ICTs), analytical and decision-making technologies, automatic control technologies with energy and power technologies and infrastructure of electricity grids. Some important aspects of what ‘smart’ are as follows: • Observability: It enables the status of electricity grid to be observed accurately and timely by using advanced sensing and measuring technologies; • Controllability: It enables the effective control of the power system by observing the status of the electricity grid; • Timely analysis and decision-making: It enables the improvement of intelligent decision-making process; • Self-adapting and self-healing: It prevents power disturbance and breakdown via self-diagnosis and fault location. • Renewable energy integration: It enables to integrate the renewable energy such as solar and wind, as well as the electricity from micro-grid and supports efficient and safe energy delivery services for electric vehicle, smart home and others. Revised Version Manuscript Received on August 18, 2015. Dr. Anuranjan Misra, Professor, Department of Computer Science and Engineering, Noida International University, Delhi Noida, India. Upawan Kishor, M.Tech Student, Noida International University, Delhi Noida, India. Dr. Md Muazzam, Professor, Department of Electrical & Electronics Engineering, Noida International University, Delhi Noida, India. II. Goals and Objectives of Smart Grid Efficient and reliable transmission and distribution of electricity is a fundamental requirement for providing societies and economies with essential energy resources. The utilities in the industrialized countries are today in a period of change and agitation. On one hand, large parts of the power grid infrastructure are reaching their designed end of life time, since a large portion of the equipment was installed in the 1960s. On the other hand, there is a strong political and regulatory push for more competition and lower energy prices, more energy efficiency and an increased use of renewable energy like solar, wind, biomasses and water. In industrialized countries, the load demand has decreased or remained constant in the previous decade, whereas developing countries have shown a rapidly increasing load demand. Aging equipment, dispersed generation as well as load increase might lead to highly utilized equipment during peak load conditions. If the upgrade of the power grid should be reduced to a minimum, new ways of operating power systems need to be found and established. In many countries, regulators and liberalization are forcing utilities to reduce costs for the transmission and distribution of electrical energy. Therefore, new methods (mainly based on the efforts of modern information and communication techniques) to operate power systems are required to guarantee a sustainable, secure and competitive energy supply. The general goals of Smart Grid are to ensure a transparent, sustainable and environmental-friendly system operation that is cost and energy efficient, secure and safe. Objectives of developing the Smart Grid are quite different from country to country for their various demands and start points. However, the common objectives of a Smart Grid are clear and listed below: • Robustness: The Smart Grid shall improve resilience to disruption to provide continuous and stable electricity flows, avoiding wide-area breakout accidents. It shall guarantee the normal and secure run of the electricity grid even under the instance of emergency issues, such as natural disasters, extreme weather and man-made breakage, and provides self- healing abilities; • Secured operation: The Smart Grid shall enhance communication networks and information security of the electricity grid; • Compatibility: The Smart Grid shall support the integration of renewable electricity such as solar and wind, has the capacity of distributed generation access and micro-grids, improve demand response functions, implement the effective two-way communication with consumers and satisfy various