The Internet of Things

The smart grid is information and communication technology enabled modern electricity generation, transmission, distribution, and consumption system.

To make electric power generation, transmission, and distribution smart, the concept of smart grids adds intelligence at each step and also allows the two-way flow of power (back from the consumer to the supplier). This can save a lot of energy and help consumers better understand the flow of power and dynamic pricing. In a smart grid, power generation is distributed. There are sensors deployed throughout the system to monitor everything. It is actually a distributed network of microgrids. Microgrids generate power to meet demands of local sites and transmit back the surplus energy to the central grid. Microgrids can also demand energy from the central grid in case of a shortfall.

Two-way flow of power also benefits consumers, who are also using their own generated energy occasionally (say, solar, or wind power); the surplus power can be transmitted back so that it is not wasted. The user will also get paid for that power.

Some of the IoT applications in a smart grid are online monitoring of transmission lines for disaster prevention and efficient use of power in smart homes by having a smart meter for monitoring energy consumption.

Smart meters read and analyze consumption patterns of power at regular and peak load times. This information is then sent to the server and also made available to the user. The generation is then set according to the consumption patterns. In addition, the user can adjust her/his use so as to reduce costs. Smart power appliances can leverage this information and operate when the prices are low.