The Stance of This Study for Business Profitability

Optimal Power Utilization (2)

In this category, major research topics should be to provide effective demand-side EMSs for optimal energy utilization and to develop effective price programs including DR for optimal power companies operation. In order to provide both effective EMS and price programs provision including DR, control methods of or appliances should be considered and clarified.

Optimal Power Supply and Demand Control (3)

In this category, the most critical challenge is to maintain reliability of the future advanced power systems considering a large number of RES generation connected environments, including power supply and demand balancing, voltage and current management, and outage management in a target system using both supply and demand sides information.

From above considerations, Table 2-9 describes ICT contribution topics for critical technological measures to realize Smart Grid. Therefore this study defines that Smart Grid

the expansion of ICT application to these technologies should accelerate the realization.

Table 2-9 ICT Contribution Topics for Critical Technological Measures for Smart Grid

Category ICT Contribution Topics

Optimal Power

Supply Optimal asset installation for efficient power supply, such as DG etc.

- Optimal allocation of DG, SVR and SVC - Benefit and cost evaluation of RES Optimal Power

Utilization Benefit realization of demand control measures such as efficiency energy consumption (Consumer EMS) and various price program

- Benefit and cost evaluation by demand-side EMSs

- Benefit and cost evaluation by power companies price programs including DR

Optimal Power Supply and Demand Control

Effective methods to maintain power supply reliability in a targeted area

- State monitoring for distribution system with a large number of PVs - Outage management for smart meter installed environment

clarified because the business profitability varies depending on market participants business. For example, PV system installation is beneficial for PV system vendors and system installed customers can get benefit from PV generations (by power selling or consumption). On the other hand, PV systems might cause reverse power flow and reduce power supply reliability in distribution systems from the viewpoint of distribution system operator (DSO).

The reason why this study focuses on business profitability is that it promotes market expansion and generates additional investment continuously by the market entrants, and it is assumed that this movement should realize Smart Grid. Therefore, the stance of this study for business profitability is the standpoint of competitive service providers such as power generation companies, power retail companies and electricity related service companies.

Summary 2.6.

In this chapter, Smart Grid benefits and their related technologies which can accelerate Smart Grid realization by the effective utilization of ICT was discussed assuming that possible reasons which prevent Smart Grid realization might be its necessity of enormous investment under its unclear benefit, and ICT utilization should create new additional values and contribute to clarify these values. In the discussion, several areas and component actions which had high possibility to accelerate Smart Grid realization by the effective utilization of ICT were selected as future expected business areas, and some effective development topics were provided.

As the result, most of critical components of Smart Grid are installations of new technologies and measures in power demand-side, and these were able to be categorized by optimal power supply , optimal power utilization and optimal power supply and demand . In the consideration of the achievement of these Smart Grid critical components from the aspect of ICT, information collection by the establishment of AMI is the premise and effective business models based on EMAs running on the AMI and CEMS would be essential. Also the value of ICT utilization is to convert collected data (information) into values and thus it is necessary to consider solving challenges for the realization of measures in Smart Grid critical areas by the data utilization. In other words, the most important objective in this study should be to clarify concrete and effective EMAs running on AMI and CEMS, and their business models with well-documented figures.

Also, the business profitability discussing in this study is the one from the viewpoint of competitive power service providers, because it is assumed that such business profitability for these players should promote market expansion and investment increase for Smart Grid realization.

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