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Abstract-- The distribution electrical systems will pass, in the

next years, through significant changes, that come from the integration of distribution networks with communications, IT, and automation technologies. Those changes are driven by the increase of different number of distributed energy generation sources, allowing millions of Brazilians to produce energy, on their own, and share the exceeded. Smart Grids integrates equipment and data communication networks to the electrical energy supply system, making possible to monitor the behavior of the network online. Smart Grid is not a technology, but a combination of several latest technologies. This survey paper provides a comprehensive look at smart grid: the key technologies, main features, the perspectives, obstacles of its developments, and the current Brazilian situation in the subject.

Index Terms-- Smart Grid, Intelligent Networks, Digital Meters, Electrical Automation.

I. INTRODUCTION

ince 2008, Brazil’s Electricity Regulatory Agency – ANEEL accomplish studies and approves regulations that

prepare the implementation of intelligent electrical networks in Brazil. The Normative Legal Act 464/2011, that introduces the “white fee”, a regulation that provides the application of different fees and charges by schedule of consumption at low-voltage (< 380 V), offering cheaper electrical charges during the period that the system is less used by the consumers of electrical energy, and the ANEEL Act 482/2012, that regulates the installation of distributed micro (<=100 kW) and mini-generation (between 100 kW to 1 MW).

The Brazilian electrical distribution systems will pass, in

the next years, thought significant changes coming from the integration of distribution networks with automation, information and telecommunications technologies (Smart Grids), what will turn the low-voltage electrical network into

The authors wish to thank the Brazilian Electricity Regulatory Agency – ANEEL for their contributions and participation in the paper execution.

1M. S. Silva is with the Department of Electrical Engineering, Federal University of Sergipe, Aracaju, SE 49100-000 BRAZIL (e-mail: milthons@ufs.br).

2B. B. Anunciação is with the Department of Electrical Engineering, Federal University of Sergipe, Aracaju, SE 49100-000 BRAZIL (e-mail: brunoanunciacao@hotmail.com).

3A. P. Nóbrega is with Brazilian Electricity Regulatory Agency – ANEEL, Brasilia, DF 70830-030 BRAZIL (email: nobrega@aneel.gov.br).

the new highway to transport electrons. Those changes will be driven, mainly, by the significant increase of installation of distributed generation sources, allowing that millions of Brazilians to produce their own energy to share the overbalance.

The biggest challenge is regulate, in a more efficient way,

the use of intelligent devices for network managing as meters, sensors, remote-controlled switches, telecommunications and data processing systems, working simultaneously online, and incentive consumers to interact with their consumptions.

The ANEEL’s intention is increase the network reliability, reduce maintenance costs, save more accurate records of the client use and, especially, reduce the CO2 emissions.

II. OVERVIEW

Due to a prolonged drought in 2001, the hydropower plants

produced much less electrical energy of their capacity, less then minimum necessary to the country, what made the whole country reduce its consumption in about 20% quickly. Avoiding more situations like that in the future, smart grids where developed. They are intelligent networks of energy transmission and distribution based on interactive communications between all steps of energy conversion. The smart grids control energy generation, avoiding overload of the network, generating only how much energy is necessary.

They link small and big decentralized generation centers

with the consumers to create a wide structure. For instance, once a medium voltage transformer failure event occurs in the distribution grid, the smart grid may automatically change the power flow and recover the power delivery service [1].

According to US Department of Energy - DOE, smart grids

are “an upgraded electricity network enabling two-way information and power exchange between suppliers and consumers, thanks to the pervasive incorporation of intelligent communication monitoring and management systems” [2]. In Europe Union and USA, the experts agree that the main components and functions of the Smart Grid are the intelligently connection of generators and consumers, in order to efficiently ensure sustainable, economic and secure

Experience of smart grids implementation in Brazilian Distribution Utilities

M. S. Silva1, B. B. Anunciação2, and A. P. Nóbregas3

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electricity supply, using digital technology to improve reliability in the delivery systems.

The US National Institute of Standards and Technology –

NIST – has proposed a Conceptual Model to represent the building blocks of an end-to-end smart grid system, coordinating researches on this field and find how the system would interact. Although a precise and comprehensive definition of smart grid has not been proposed yet, according to the report from NIST [3], the anticipated benefits and requirements of smart grid are the following:

1. Improving power reliability and quality; 2. Optimizing facility utilization and averting construction

of back-up (peak load) power plants; 3. Enhancing capacity and efficiency of existing electric

power networks; 4. Improving resilience to disruption; 5. Enabling predictive maintenance and self-healing

responses to system disturbances; 6. Facilitating expanded deployment of renewable energy

sources; 7. Accommodating distributed power sources; 8. Automating maintenance and operation; 9. Reducing greenhouse gas emissions by enabling electric

vehicles and new power sources; 10. Reducing oil consumption by reducing the need for

inefficient generation during peak usage periods; 11. Presenting opportunities to improve grid security; 12. Enabling transition to plug-in electric vehicles and new

energy storage options; 13. Increasing consumer choice; 14. Enabling new products, services, and markets [1]. A model was proposed to meet with those benefits and

requirements. For that, NIST divided the smart grid system in several domains that are briefly described in the Table I, and show in the Fig. 1 (in this figure it was added an extension of the NIST model, by the European Commission Smart Grid Task Force). Each domain involves one or more smart grid actors and applications. The actors include devices, systems, or programs that make decisions and exchange information necessary for performing applications.

TABLE I DOMAINS AND ACTORS IN THE SMART GRID CONCEPTUAL MODEL

Domain Actors in the Domain Customers The end users of electricity. May also

generate, store, and manage the use of energy. Traditionally, three customer types are discussed, each with its own domain: residential, commercial, and industrial.

Markets The operators and participants in electricity markets.

Service Providers The organizations providing services to electrical customers and utilities.

Operations The managers of the movement of electricity. Bulk Generation The generators of electricity in bulk

quantities. May also store energy for later distribution.

Transmission The carriers of bulk electricity over long distances. May also store and generate electricity.

Distribution The distributors of electricity to and from customers. May also store and generate electricity.

To enable the smart grid functionality, the actors in a

domain interact themselves with actors of different domains. However, the communication will not have necessarily the same requirements, and domains, often, may contain components of other domains. See again Fig. 1.

Fig. 1. Original NIST Smart Grid conceptual model and adaptation to the EU context (in blue).

III. I NTERNATIONAL EXPERIENCE

In greater or lesser degree, that technology is already available in Europe (spotlight for Italy and Germany) and North America (spotlight for USA). The phase of installation of the intelligent meter system was accomplished in these regions.

According to specialists, the market of smart grids technologies will pass through an annual growth rate of over 10%, exceeding from US$ 33 billion annually (in 2012) to US$ 73 billion until the end of 2020, amounting US$ 494 billion in cumulated income during this period. This is a series of investments in the world in updating and automation of the networks and substations, in addition to measurements technologies and information [5].

A. Europe: Macro-perspective

According to the inventory of smart grid projects performed in 2011 by the Joint Research Centre - JRC, the European Commission’s in-house Science service, the level of investments in smart grid projects amount to around € 5.5 billion. The JRC’s 2012 Smart Grid database contains 281

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smart grid R&D and demonstration projects from 30 European countries (EU27, Croatia, Switzerland and Norway), representing a total investment of € 1.8 billion. About 80% of the projects surveyed in 2012, started in the period 2010-12. That is the reason that the catalogue includes a relatively small number of projects, which started in 2012 [6], shown in Fig. 2.

Fig. 2. Number of smart grid projects surveyed in 2011 inventory and in the 2012 update across starting years.

In Europe, the smart grids are arrangements used alto to achieve the goals that the European Parliament approved in the Climate and Energy Package. This package (also known as 20-20-20 objectives) determines the reduction in 20% emissions of greenhouse gases, increase in 20% the quota of renewable energy in energy consumption and increase in 20% the energy efficiency until 2020.

A geographical distribution of the projects released in 2011 and 2012 (JRC database) is shown in Fig. 3. 70% of all projects are in seven countries: Denmark, Germany, Italy, Austria, the UK, France and Spain.

Fig. 3. Geographic distribution of smart grid projects surveyed in 2011 inventory and in the 2012 update across starting years.

B. Italy

In Italy, the Authority for Energy and Gas is aimed at providing directives (based on Government lows) for supporting the development of Smart Grids by promoting and encouraging pilot projects in focused areas of the country.

These projects include topics such as: smart management of the power network; and the integration of Electric Vehicles. The first action that Italy made in this direction occurred in 2007, when ENEL SpA, the largest electric utility in Italy, decided to install a nationwide network of all electronic energy meters. By the end of 2009, almost 32 million smart meters were installed nationwide replacing the existing meters of most medium-voltage and low-voltage customers. The primary goals of the project, known as “Telegestore”, allows remote reading of residential consumer energy consumption and the enablement real-time contract changes such as the activation or termination of service [7].

The communication is bidirectional and uses different types of communication technologies for action read, parameterization and automation; the meter capable of cyclic reading, capture connectivity information and fraud detection. It also can disconnect and connect the system, operate changes and gradual reduction of the demand, offer different fees and update its software, all this remotely.

C. Germany

The e-energy Program, started in 2008, and scheduled to end in 2013, focused in the integration of intermittent renewable energy sources, which shall account for 80% of the Germany electricity supply by 2050. Due that, Germany started to test six pilot projects in smart grids. The aims of those protects are [10]:

1. Intelligent management of consumption;

2. Test a control system for balancing intermittent wind power and integrating the electricity on the distribution grid;

3. Testing smart homing solutions;

4. Test a tool called energy butler, that helps consumers to manage their demand and benefit from volatile energy prices;

5. Explore ways to pool renewable energy and commercialize this energy in different markets;

6. Managing energy systems that provide market participants with real-time data on supply and demand.

D. United Kingdom

Recent work by the Department of Energy and Climate Change – DECC – and Ofgem Smart Grid Forum has suggested that, when compared to conventional grid upgrades, smart solutions could save between £2 billion and £4 billion to 2050 in distribution network costs, some generation and transmission costs, and the cost of losses and interruptions to the distribution network [7].

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The DEEC and Ofgem group said that: “The UK’s smart grid will develop to support and accelerate a cost-effective transition to the low-carbon economy. The smart grid will help the UK meet its 2020 carbon targets, while providing the foundations for a variety of power system options out to 2050”.

E. United States of America

The first experience in smart grids of USA was in 2008, starting with IBMTM technologies. This came after the support for smart grids became a federal policy with passage of the Energy Independence and Security Act of 2007. This law set US$ 100 million in funding per year from 2008 to 2012, establishing rules to sates, utilities and consumers to build smart grid capabilities [8].

The USA has important initiatives related to smart electric grids. In the country, there are many pilot experiences, but the regions where the use of intelligent measurement are more expressive, are Texas and California, whose the main vectors are reduction of the demand in the peak time and energy efficiency promotion.

In 2009, the north-American Recovery and Reinvestment Plan was launched, allocating US$ 3.4 billion for smart grids project implementation. The north-American government point of view is that the technology enable an electrical system more reliable, that it is a sustainable technology, that it will create more jobs, and sab 20 billion dollars in after 10 years.

IV. BRAZILIAN TRENDS IN SMART GRIDS

In 2009, the Brazil’s Electricity Regulatory Agency –

ANEEL approved the changing of conventional energy meters for electronic ones and created the Work Group for Smart Grid Implementation (GTRI) that planned the actions for short, medium and long terms for automate the management of residential electricity consumption. Initially, the focus was to automate the route of electrical energy to the final consumer. Thus, the first step was the installation of electronics meters, Act 440 from Ministry of Mines and Energy – MME) [11].

If the idea of reducing the losses by the utilities, calculated around R$ 5 billion (or US$ 2.5 billion) per year, in the other hand, it is need to pay, before of that, R$ 16 billion (US$ 8 billion), only for the substitution of about 40 million electromechanical meters around the country. The GTRI also has the role of identify potential source funding to avoid the increase of fees for the clients.

In 2010, ANEEL made a public hearing about the regulation to define the characteristics and minimum functionalities, which should cover electronics meters to be used in consumer units connected to low voltage in the country. Pilot projects are implemented in the city of Sete Lagoas, in Minas Gerais state, that is a project from Energy Company of Minas Gerais – CEMIG. Another one, Parintins in Amazonas state, led by Eletrobras.

Some Examples of Smart Grid in Brazil

A. Rio de Janeiro

The Ampla utility was the first to use centralized measurement in Brazil. Between 2003 and 2009, the company connected 300 thousand consumer units (12% of its clients) to digital meters, providing a reduction of loss rate from 25% to 20% of the distributed energy. The system consists in an application that uses electronics modules destined for measurement, acting for the concentration, processing and indicating consumption information in a centralized way (exteriorized and shielded measurement). The implementation system enables remote reading and the disconnection and reconnection remotely.

Light is another power utility that progress in use of digital meters. The company decided to install individual meters in the consumer units, where the purchasing power is higher, achieving 40 thousand clients. Between, 2008 and 2009, the losses reduced from 25% to 9%, and the goal is achieve 2% [12]. Light company invest in R&D programs, what enables the development of advanced solutions, intelligent equipment as communication (gateways), displays, sockets with an indication of consumption and load switching (smart plugs) and electrical vehicles terminals [5].

B. Paraná

In Curitiba city, the utility COPEL implemented focusing in automation with remote operation and/or automation of the distribution network and substations, also optimizing the distribution system control through Georeferencing solutions. The benefits are the reduction in interruption during the power supplying. For this project, the switches are equipped with current and voltage sensors, and the reconfiguration is based in the collected data, and it also involves the application of sophisticated IT telecommunication systems, that uses optimization algorithms for integrate the network with the minimization of the losses.

In addition to the examples mentioned, there are a few other pilot projects in Brazil, that power utilities and other companies invest in R&D programs on the smart grid domain (intelligent devices, data processing systems and telecommunication systems), to develop a more efficient and reliable electrical system for the country. The current pilot projects are represented on the Fig. 4.

Fig. 4. Smart Grid Pilot Projects in Brazil [5].

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V. REGULATION OF SYSTEMS FOR MEASURING ELECTRICITY IN

CONSUMPTION UNITS

The public hearing 043/2010 from ANEEL, had the

objective of obtain additional subsides and information for establishing a Normative Resolution about the minimum requirements for the electronics meters, that will be used in low tension consumer units. Since 2009, ANEEL together with the MME, analyze and identify needed actions to support the establishment of public policies for the implementation of a Brazilian Program of Intelligent Electrical Network. For the studies, were participating members of the Energetic Research Enterprise – EPE, the Center of Research in Electrical Energy – Eletrobras/Cepel and the National Operator of the Electrical System – ONS [13].

The motivations for the creation of public policies for implement smart grids in Brazil are the improvement of the quality in the service of low tension, reducing the losses in the energy supplying, as said before, and the operational costs.

Fig. 5. Quality of Service – DEC/FEC Brazil 2001 to 2011 [12].

The Fig. 5 shows that the distribution utilities (DU), since 2009, cannot achieve the quality level established by the regulator, with interruption numbers higher than the desired. - Observation on the Fig. 5: DEC index (Equivalent Interruption Duration per Consumer Unit) and FEC index (Equivalent Interruption Frequency per Consumer Unit).

Due this, they paid indemnity to consumer in 2010, in order of R$ 360 million and, in 2011, over R$ 385 million. The process of implementation of smart networks will be put into practice gradually. In this sense, ANEEL has issued some regalements related to this theme, which highlighted:

• Normative Resolution no 482/2012: treats of the link of distributed micro and mini generation;

• Normative Resolution no 464/2011: treats of the establishment of the “white fee” (PRORET);

• Normative Resolution no 375/2009: treats of the regalements of use of PLC;

• Normative Resolution no 345/2009: treats of the compulsory use of Geoprocessing systems (PRODIST);

• Public Hearing no 48/2012: mentions the pre-payments for use of smart networks, quality monitoring system. [13]

In economical subject, the smart grids Brazilian market is

seen a huge potential and represents a great opportunity to business development until the Olympic Games, in 2016.

Between 2011 and 2015, Brazil will have invested about

US$ 8 billion. The major part of those investments is going to applied in electronics meters, about US$ 2.2 billion, i.e., 27.5% of the amount. The government plan is to install 64 million meters until 2021, however, the implementation must be given a bit slowly, reaching the goal only after 2026, as shown in the Fig. 6. [4]

Fig. 6. Growth forecast of smart meters in Brazil (in million) [4].

VI. COMMUNICATION SYSTEM

In the proposal submitted to the Public Hearing, the meters

should have a device that enables the bidirectional communication between the meter and the measuring center of the DU. Furthermore, the suspension and reconnection activities of the supply, as well, the monitoring and control of some meters parameters, should be executed remotely by the DU. The proposal is based on the fact that the implementation of the communication system and the possibility of remotely operation, can reduce the operational costs, promote actions of energy efficiency and disseminate intelligence on the network. Although some countries adopt a communication system as a way to reduce operating costs, this reality is not observed in all areas of operation of the DU, given the high cost of communication infrastructure and the relative low cost of hand work in the country.

The determination of specific protocols, in the initial implementation phase can restrict the use of technologies by the DU. It means that, maybe in some cases the solutions that will not use a determinate protocol can be more adequate to be used in specific consumers or in some concession area or distribution permission. The more suited is a solution that uses proprietary protocol, the regulatory determination, otherwise, prevent its use and the implementation possibilities of the DU will be restricted. Therefore, it is proposed not to standardize the protocol type to be used.

VII. REGULATION IN BRAZIL

The government is dealing with number and studies with the objective of creating public policies for smart grids on

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electrical energy. This does not exist yet, but some idea of changing equipment supported by the National Bank for Economic and Social Development – BNDES. The terms of this discussion and its strategies are under analysis by the secretaries of innovation and of production development, either from the Ministry of Development.

It was necessary US$ 33 billion – or more than R$ 70

billion (quotation of 2014) – to promote the replacement of all equipment needed, since switches up to the 74 million meters of residential, commercial and industrial energy in the country. This act involves 63 power distribution utilities.

The challenge today is to obtain clear regulatory guidelines

on the meters. It is still necessary to receive precise details from the distributors who will be carrying out the replacement as to what meters will be used and what components they will have. Another concern is the certification of the meters. There is considerable uncertainty as to how long INMETRO (the Brazilian National Institute of Metrology) will take to certify them [14].

A Smart Grid offers significant opportunities for utilities and consumers to manage the energy consumption by the usage of advanced metering infrastructure and dual-way and real time communication. It also provides opportunities to manage the fuel resources by potentially reducing the national need for additional generation sources, better integrating renewable and non-renewable generation sources into the grid operations, reducing outages and cascading problems, and enabling consumers to better manage their energy consumption. A Smart Grid can be a mechanism for achieving the worldwide goals in the areas of energy security, climate change, grid reliability, economic growth, and national competitiveness [2].

The studies related to smart grids is under development in

the world and, in Brazil, ANEEL verifies how this theme is threated in different countries, to make possible understand the reasons that those nations has introduced this technology in their energy systems, and implement this high technology in measurements, communication and distribution of electrical energy, reducing losses of energy and money.

Around the world, smart grids are face as a tool for giving

solutions to problems and achieve goals related to CO2

emission reduction, but also highlight the reduction of electrical energy consumption, reduction of operational costs, and market opening. Brazil analyzes the internal possibilities to adapt the system to the reality of the country.

VIII. REFERENCES

Periodicals: [1] X. Fang, S. Misra, G. Xue, Smart Grid - The New and Improved Power

Grid: A Survey, Communications Surveys & Tutorials, IEEE. (2012) Vol. 14, Issue: 4, 944-980.

Technical Reports: [2] V. Giordano, S. Bossart, Assessing Smart Grid Benefits and Impacts:

EU and U.S. Initiatives - Joint Report EC JRC - US DOE, Publications Office of the European Union, Luxembourg, 2012.

[3] National Institute of Standards and Technology. NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0, January, 2010.

[4] Agência Nacional de Desenvolvimento Industrial. Relatório de Acompanhamento Setorial – Smart Grid, March, 2012.

Papers Presented at Conferences (Unpublished): [5] H. Lamin, Análise de Impacto Regulatório da Implantação de Redes

Inteligentes no Brasil, Universidade Federal de Brasília, Departamento de Engenharia Elétrica. PPGENE.TD - 076/13, Brasília, 2013.

[6] V. Giordano, A. Meletiou, C. F. Covrig, A. Mengolini, M. Ardelean, G. Fulli, M. S. Jiménez, C. Filiou, Smart Grid projects in Europe: Lessons learned and current developments – 2012 update, JRC Reference Reports, Publications Office of the European Union, Luxembourg, 2013.

[7] Assessing the Impact of Low Carbon Technologies on Great Britain’s Power Distribution Networks, for the DECC/Ofgem Smart Grid Forum, EA Technology (2012).

[8] Z. Xu, Smart Grid: Trends in Power Market. (2010) Information on http://www1.cse .wustl.edu/~jain/cse574-10/index.html

Standards: [9] Information on http://smartgrid.ieee.org/resources/public-policy/italy [10] Information on http://www.germanenergyblog.de/?p=11635 [11] Smart Grid na Medição, EPE, Rio de Janeiro (2010), 07/65-67. [12] Information on http://www.redeinteligente.com/ [13] Relatório de Audiência Pública – AP 43/2010 - ANEEL. [14] Information on http://convergenciadigital.uol.com.br/

IX. BIOGRAPHIES Milthon S. Silva, was born in Cusco, Peru, on August 30, 1972. Electrical Engineer graduated at UNSAAC University - Peru. MSc and PhD at the Polytechnic School of Sao Paulo University - Brazil. Post-Doctoral at Brandenburg Technological University - Germany. Worked in construction and monitoring of substation high voltage systems projects including renewable energy integration by GyM S.A., GAGTD and Siemens. At present he is professor at the Department

of Electrical Engineering in the Federal University of Sergipe – Brazil teaching “Renewables Energies” and “Transmission and Distribution of Power “. He works in the Integration of Renewable Energies project to the Brazilian government. Member of CIGRE Brazilian work Group SC13.23 and Member of LatinAmerica IEEE.

André P. Nóbrega, joined Brazilian Electricity Regulatory Agency - ANEEL as an Advisor to the board of directors in august 2006. He is a Senior Power Market Regulation Specialist and occupied different position at ANEEL as technical advisor in the Superintendence of Economic Studies of the Market (SEM), since 2002, and manager of the authorization team to renewable energy, since 2000. His main research interests include energy policies for

renewables, modeling paths toward sustainable energy systems, liberalization of energy markets. Andre is a civil engineering graduate from Brasilia University – UnB and holds specialization in Theory and Operation of a Modern National Economy from George Washington University. He also attended the Eleventh International Training Program on Utility Regulation and Strategy at Warrington College of Business, in University of Florida.

Bruno B. Anunciação, Electrical Engineering student at Federal University of Sergipe - Brazil. Exchange student at Polytechnic School of Marseille University - France by Brafitec/CAPES program. Researcher by PIBIC/CNPq program. Anunciação has experience with Renewable Energies and Automation and Control Systems of Power Electrical Systems. He also has experience in optimization

models, using linear and nonlinear programming technics.