**7. Internet of things based smart grid modernization approach: technological aspects, designs, implementations, architypes, and future investigation guidelines**

In the face of the one-way data source, the power loss, increased electricity requirements, the depth of confidence and protection of traditional electric grids are transformed into smart grids (SGs). The Smart Grid offers two-way energy streams between sources and consumers in conjunction with electricity generation, transmission, distribution and operating systems. A bulk quantity of SGs are utilise to different equipment's for observation, examination and control of the grid network, positioned at generating stations, delivery stations and in customers' premises. Thus, a Smart Grid needs interlinking, mechanisation and the tracing of such equipment's. The Internet of Things helps to do this (IoT). In addition to connecting, mechanising and tracking of these facilities, IoT provides the means to support Smart grid frameworks for diverse network purposes during generation, transmission, delivery and power uses through the integration of IoT devices (such as sensor devices, actuators and smart metres).

A conventional electric grid comprises bulk quantity of broadly interlinked synchronous Alternating Current (AC) grids. It conducts three major roles: generation, transmission and distribution of electrical energy [16], where unidirectional electric power flows from supplier to the customers. Initially, in power production, a huge amount of power generating stations produce electrical energy, generally from burning of coal and nuclear power stations. Then the electricity is distributed from power generation plants by high tension transmission lines from a remote load terminal. Next, the delivery network assigns electrical power at lower voltage levels to the load centres. Any network of grids is centrally managed and tested to ensure that the generation stations deliver electricity in line with consumer specifications under the power system network limitations. About any electricity generation, transmission and distribution is possessed by utility companies that supply consumers with electricity and charge them adequately to recover costs and to generate income.

From its beginning in 1870 to 1970 the traditional grid worked admirably [16]. Despite the drastic rise in energy consumption by the consumers, it was also somewhat shocking. But since 1970 the concept of using electricity has been modified considerably, due to the burden of electronic devices, new sources for high-strom use, such as electric vehicles, have risen to be the fastest growing portion of full power requirements (EVs). Such influences as excess machinery and insufficient smart innovation for clients, inconsistent management, electrical privileges and untrustworthy communication and observing – particularly the absence of components in the stockpiling of generated electrical power [17–19] – make grid networks an essential factor in consuming electricity. Furthermore, electricity grids are confronted with other problems as well, including the development of energy interests, coherence, security and the development of eco-friendly energy supplies and maturing basic problems.

The basic Smart Grid concept was a challenge with a range of data and correspondence developments to resolve these difficulties. The adequacy, efficiency, reliability, protection, longevity, consistency and extensibility of the traditional network can be improved by such developments [20]. SG differs in numerous angles from traditional grid networks. SG, for instance, gives vendors and purchasers a two-way correspondence stream while a traditional electricity grid only provides single way connections from providers to consumers. SG has gradual measurement Setup, intelligent metering technology, adjusting for vital clearance of defects, find of unsubscribed use and load change [21–24], and self-rescue [25].

SG transmits various types of equipment for grid network observation, analysis and control. This test facilities were installed at power generation facilities, electricity transmission lines, power transmission centres, delivery areas and consumer locations. One of the main concerns of SG is the interconnection, computerization and detection of such a vast amount of gadgets, where swift, universal and bilingual advanced digital correspondences need scattered observation, investigation and activity. For these gadgets or "material," it calls for dispersed SG mechanisation. In fact, this is now recognised by invention in the Internet of Things (IoT). The IoT is described as a device that can connect any object on the Internet based on a data trading convention and correspondences between various intelligent gadgets in order to achieve recognisable purposes for observing, detecting, managing and area [26]. Over the past years, IoT engineering has taken on a number of dimensions and took into account internet intercommunication to various network-based devices used in daily life.

The Internet Technology initially supported individuals and people as a network. While the volume of Internet-related items surpassed universal levels in 2008, the impact of IoT creativity continues to increase. The results are also increasing. IoT is

#### *Smart Grid Modernization: Opportunities and Challenges DOI: http://dx.doi.org/10.5772/intechopen.97892*

a system of actual Internet technology products or things. These products are equipped with implanted innovation to interact indoors and outdoors. These items detect, test, run and jointly select individually or with different items through a broader tempo, self-governing and pervasive bi-directional device correspondence. This is what the Smart Grid really needs. Through the integration of IoT gadgets (such as sensor devices, actuators, and smart metres), the Io T-innovation will support smart grids with various device capacity, during power production, storage, transmission, delivery, and consumption.

The only big use of the IoT is the automation of the intelligent grid [27]. Today, while many home-grown devices that use energy are linked to the Internet, there are also many home-grown devices, which do not come with the web. For example, in the world there is a significantly less amount of microwave ovens and washing machines connected with the Internet than of units not linked to the Internet. Basically, all power uses by connecting to the Internet are more beneficial (for example, microwaves and clothes washers, that are associated with the Internet can be worked distantly and at off-busy times, consequently saving expense, just as give solace to human beings through robotization). Therefore, we will later forecast that the IoT-coordinated intelligent grid will be greater than the intelligent grid, and that the existing intelligent grid will not be feasible save for the IoT breakthrough. New entrances will be exposed to enhance future growth possibilities by addressing IoT engineering as a worldwide standard for intercommunications and the justification for smart grid. Since the IoT and the smart grid must be incorporated, a new session on SG and IoT has begun, as is an exceptional question on the Smart Grid Internet of Things. The need and importance of the combination of IoT and SG is also shown.
