2. Development of electrical grids

#### 2.1. Conventional grid

perspective to smart usage of electrical power within the limitation, a new avenue called demand response programs (hereafter, DRPs) is considered as the most helpful to control the electricity consumption [1]. This may be realized by simply replacing the conventional electrical appliances to smarter appliances or even installing some smart interfaces like smart plugs

DRPs enable us to reduce the greenhouse gas emission and improve grid efficiency as well as stability of the power plant by the smart usage of the electricity. In other words, more efficiency in the electricity market can be achieved by smartening the supply, consumption, distribution,

• The programs can reduce the overall power consumption at peak hours and consequently

According to some studies [2, 3], DRPs are defined as the modification in demand by shifting or shedding the loads when there is a shortage or excess of power in response to the condition of suppliers. Since 1970s, DRPs appeared in the United States to control peak hours. In those decades, incentive programs [4] and priced-based programs such as time of use price (TOU) [5] were utilized to analyze and control the demand [6]. In the following decades, gradually other strategies and techniques have been used as demand response programs such as critical pick price (CPP) [7], real time price [8], 1-day-ahead price [9], and incremental block rate (IBR) price [10, 11]. Figure 1 shows the different types of demand response programs used till date in a chart.

However, DRPs could not individually reduce the electricity consumption or increase the rate of participants, as consumers do not have enough knowledge or cannot calculate and analyze their power consumption to control the electrical appliances according to commands from the utility companies [12]. Thus, intelligent equipment and technologies in grid infrastructure have

Nowadays, it is possible to develop small, cheap, and efficient smart controllers that can be used to gather different types of data, store, and analyze them by utilizing integrated technologies such as embedded systems, microcontrollers, and wireless communication technologies. Network sensors have a wide range of application in many aspects such as smart homes, military services, forecasting, industrial agriculture, and building energy management system. Collected data can be sent in any communication ways, such as wireless network or to the host services to be shown on the web [13] in real time. Intelligent buildings are new concepts that refer to an electricity demand that use sophisticated technologies to provide better performance for energy management system. This could happen by using smart controllers besides the bidirection communication that enables the utility companies to monitor and control the

Energy management systems can control the operation of appliances in response to electricity price or commands of utility companies to optimize the electricity consumption at peak hours. This can be done by smartening the electrical appliances in residential units to control their

and storage methods. Some of the advantages of using DRPs are listed as follows:

• The programs can help the utility companies to economically produce electricity.

reduce the electricity price by shifting the loads to off-pick hours.

• The programs can be useful in abnormal or emergency conditions.

appeared to control the dwellings' electricity consumption independently.

power consumption of the group of residential units autonomously [14, 15].

to convert them to smarter ones.

66 Smart Microgrids

Over the last few decades, government bodies in many countries were responsible for controlling and monitoring of the electrical power plants while power systems were barely owned by the private sectors. The grid was designed to look like a tree, where generators were considered as the trunks, transmission paths represented as the branches, and loads considered as leaves [16] as shown in Figure 2. Therefore, this structure of the power plants was not efficient enough to ensure the benefits of the producers.

Privatization of the power system was the key solution for many governments to provide the competitive market at different levels of generation, distribution, and transmission. Therefore,

of production and consumption of the societies. These methods enable us to reduce the greenhouse emission and improve the grid efficiency and stability. Moreover, we can achieve more efficiency in electricity supply chain by providing a smart supply of the energy as well as

Transformation of Conventional Houses to Smart Homes by Adopting Demand Response Program in Smart Grid

http://dx.doi.org/10.5772/intechopen.74780

69

Nowadays, a large number of renewable generators with the lower power production have joined the grid tree. The utmost problem of renewable energies is that their flexibility is lower than the fuel-based generators, in other words, the output power of renewable energies is uncontrollable and depends on the atmospheric conditions. Smartening the grid and transforming the consumers from static users to the active players are the key issues to overcome the lack of flexibility. In order to achieve this, some rules are made and operated through utility companies that are called demand response programs. The main goal of using DRP is to shift or shed the loads from

Utility companies are able to operate the DRPs through home energy management systems (HEMSs) over the smart grid infrastructure. HEMS is an important part of the smart grid that enables the residential customers to execute demand response programs autonomously. There are many autonomous control systems to help the utility companies to reduce the overconsumption at peak hours efficiently; however, it may limit or violate the residents' comfort in many cases.

The main objective of HEMS is to optimize the electricity consumption during peak hours and consequently optimize the electricity price at the minimum sacrifice in the residents' comfort. Smart electricity dispatching among users and an optimal electricity consumption pattern would be beneficial from HEMS. Energy pricing, CO2 management, electricity consumption monitoring, and demand consumption detection are only some of the applications of house

The presence of distributed generation such as solar, wind, biomass, and storage devices will help to efficiently save the peak hours without sacrificing the resident's comfort by using

HEMS. Figure 3 represents the infrastructure of the smart grid with HEMS.

peak to off-peak hours to shave the overconsumption at peak hours.

smarter consumption.

automation as HEMS.

Figure 3. Infrastructure of the smart grid with HEMS.

Figure 2. Structure of the traditional power plants.

electrical power industry was split into two categories such as the wholesale sector to be managed and controlled by government and the retailer sector to be controlled by private companies.

Until recently, the wholesale sector consisted of the generation side that produces electric power in bulk volume and transmits it to the demand sites and industries through transmission lines. Then, the retailer companies purchased the electricity on behalf of demand side. Therefore, in this deregulated electricity market, only the generation side competed with each other to sell their product to customers in order to increase their profit, while demand side had no power/activity in this respect.

In other words, demand side dealt with electrical power like a merchandise that was always available. Therefore, this issue showed the kind of rigidity of the power plants. Sooner, it was realized that demand side needed to participate in the energy market as a tool to control the power consumption and would yield any cost to be purchased for electrical power. The outage is the most important uncertainty in generation side, which may have occurred by the lack of generation or excess of demand. Moreover, the current grid is not built and designed for variable renewable energy generation and interactive demand response programs. Hence, the grid of the future should accommodate the changes [17].

#### 2.2. Smart grid

The spread of renewable energy resources, demand response programs, and distributed generators put the traditional grids, which are commonly designed based on the centralized and fuel-based generators, to face challenges such as increasing the efficiency of the grid and reducing the greenhouse gas emission [6]. Furthermore, there are many important factors such as the consumer's participation in the electricity market, integrating the new technologies, and improving the reliability of the grid that have led to incorporate the smart grids in many countries.

The smart grid is the new conception of bidirectional flow of data as well as the electricity power. This can lead to the higher flexibility of the grid to be monitored, controlled, and communicate between the supply chain and demand side to improve the efficiency, reduce the consumption and electricity price, and thus maximize the reliability of the electricity supply chain. Continual development of electrical energy technologies such as distributed generators, storage devices, and demand management systems has been changing the ways of production and consumption of the societies. These methods enable us to reduce the greenhouse emission and improve the grid efficiency and stability. Moreover, we can achieve more efficiency in electricity supply chain by providing a smart supply of the energy as well as smarter consumption.

Nowadays, a large number of renewable generators with the lower power production have joined the grid tree. The utmost problem of renewable energies is that their flexibility is lower than the fuel-based generators, in other words, the output power of renewable energies is uncontrollable and depends on the atmospheric conditions. Smartening the grid and transforming the consumers from static users to the active players are the key issues to overcome the lack of flexibility. In order to achieve this, some rules are made and operated through utility companies that are called demand response programs. The main goal of using DRP is to shift or shed the loads from peak to off-peak hours to shave the overconsumption at peak hours.

Utility companies are able to operate the DRPs through home energy management systems (HEMSs) over the smart grid infrastructure. HEMS is an important part of the smart grid that enables the residential customers to execute demand response programs autonomously. There are many autonomous control systems to help the utility companies to reduce the overconsumption at peak hours efficiently; however, it may limit or violate the residents' comfort in many cases.

The main objective of HEMS is to optimize the electricity consumption during peak hours and consequently optimize the electricity price at the minimum sacrifice in the residents' comfort. Smart electricity dispatching among users and an optimal electricity consumption pattern would be beneficial from HEMS. Energy pricing, CO2 management, electricity consumption monitoring, and demand consumption detection are only some of the applications of house automation as HEMS.

The presence of distributed generation such as solar, wind, biomass, and storage devices will help to efficiently save the peak hours without sacrificing the resident's comfort by using HEMS. Figure 3 represents the infrastructure of the smart grid with HEMS.

Figure 3. Infrastructure of the smart grid with HEMS.

electrical power industry was split into two categories such as the wholesale sector to be managed and controlled by government and the retailer sector to be controlled by private companies.

Until recently, the wholesale sector consisted of the generation side that produces electric power in bulk volume and transmits it to the demand sites and industries through transmission lines. Then, the retailer companies purchased the electricity on behalf of demand side. Therefore, in this deregulated electricity market, only the generation side competed with each other to sell their product to customers in order to increase their profit, while demand side had

In other words, demand side dealt with electrical power like a merchandise that was always available. Therefore, this issue showed the kind of rigidity of the power plants. Sooner, it was realized that demand side needed to participate in the energy market as a tool to control the power consumption and would yield any cost to be purchased for electrical power. The outage is the most important uncertainty in generation side, which may have occurred by the lack of generation or excess of demand. Moreover, the current grid is not built and designed for variable renewable energy generation and interactive demand response programs. Hence, the

The spread of renewable energy resources, demand response programs, and distributed generators put the traditional grids, which are commonly designed based on the centralized and fuel-based generators, to face challenges such as increasing the efficiency of the grid and reducing the greenhouse gas emission [6]. Furthermore, there are many important factors such as the consumer's participation in the electricity market, integrating the new technologies, and improving the reliability of the grid that have led to incorporate the smart grids in many

The smart grid is the new conception of bidirectional flow of data as well as the electricity power. This can lead to the higher flexibility of the grid to be monitored, controlled, and communicate between the supply chain and demand side to improve the efficiency, reduce the consumption and electricity price, and thus maximize the reliability of the electricity supply chain. Continual development of electrical energy technologies such as distributed generators, storage devices, and demand management systems has been changing the ways

no power/activity in this respect.

Figure 2. Structure of the traditional power plants.

2.2. Smart grid

68 Smart Microgrids

countries.

grid of the future should accommodate the changes [17].

HEMS consists of smart meter and smart appliances. Smart meters are devices to collect, monitor, and analyze the electricity consumption of the demand. These data are sent to the utility companies in real time to ensure more accurate electricity bills. Such devices provide many services such as electricity quality monitoring (voltage and frequency), demand control, dynamic service tariffs, and so on. In the smart home, electrical appliances are networked together and allow users to access and operate the appliances through a local controller or the Internet. Smart appliances are also able to respond to signals that are sent by utility companies to optimize the electricity usage during peak hours.

3.1. Smart meter/controller

Smart meters are devices to collect, monitor, and analyze the electricity consumption of the demand. These data are sent to the utility companies in real time to ensure more accurate electricity supplies. Such devices provide many services such as electrical power quality monitoring (voltage and frequency), demand control, dynamic service tariffs, and so on.

Transformation of Conventional Houses to Smart Homes by Adopting Demand Response Program in Smart Grid

Integrating smart meters to premises involves complex communication technologies and may lead to relevant economics and environmental profits for power companies and consumers. As an example in demand side, consumers can be informed remotely on energy costs and related carbon emission data. These data can be recorded and displayed online for the consumers.

A smart meter consists of two main parts such as local controller and transmission unit. At each time interval, smart meter aggregates the data from smart plugs, analyzes the data, and communicates with utility companies for further decisions. The smart meter aims to control the operation of appliances on the grid to decrease the electricity cost taking price signal and occupant's comfort into account. Figure 5 represents the simple structure of the smart meter. Eq. (1) demonstrates the cost of electricity function, while CP is the cost of electricity at the time

The smart plug consists of three main parts such as a sensing unit, a micro-controller unit (MCU), and a transmission unit as shown in Figure 6. The aim of using the smart plug is to

A. Sensing unit: This unit can collect the ambient data, convert the analog data to digital, and send them to MCU unit. Current, voltage, temperature, and light lumens are some of the parameters that could be measured through sensors. These data are aggregated through MCU and sent to the local smart meter via wireless communication for further analysis. As an example, ACS 712 current sensors with Hall Effect measurement besides the lm 35

<sup>τ</sup>¼<sup>1</sup> CPð Þ<sup>τ</sup> <sup>∗</sup>TGð Þ<sup>τ</sup> (1)

http://dx.doi.org/10.5772/intechopen.74780

71

τ, and TG indicates the consumed power from the grid at the time τ

3.2. Smart plugs for conventional electrical appliances

convert the conventional appliances to smart appliances.

temperature sensors are used here as an example.

Figure 5. Simple structure of a smart meter.

Electricityprice <sup>¼</sup> <sup>X</sup><sup>24</sup>
