Practical Guidance for Defining a Smart Grid Modernization Strategy

Practical Guidance for Defi ning a Smart Grid Modernization Strategy: The Case of Distribution guides
stakeholders on how utilities can defi ne their own smart grid vision, identify priorities, and
structure investment plans. While most of these strategic aspects apply to any area of the electricity
grid, the book focuses on distribution. The guidance includes key building blocks for modernizing
the distribution grid and provides examples of grid modernization projects. This revised edition
also includes key communication system requirements to support a well-functioning grid.
The concept of the smart grid is relevant to all grids. What varies are the magnitude and type of
the incremental steps toward modernization for achieving a specifi c smart grid vision. A utility that is
at a relatively low level of grid modernization may leapfrog one or more levels of modernization to
achieve some of the benefi ts of the highest levels of grid modernization.
Smart grids impact electric distribution systems signifi cantly. In developing countries, modernizing
the distribution grid promises to benefi t the operation of electric distribution utilities in many
and various ways. These benefi ts include improved operational effi ciency (such as reduced losses
and lower energy consumption), reduced peak demand, improved service reliability, and ability to
accommodate distributed generating resources without adversely impacting overall power quality.
Practical Guidance for Defi ning a Smart Grid Modernization Strategy concludes by describing
funding and regulatory issues that may need to be taken into account when developing smart grid
plans.
The World Bank Studies series is available for free download online through the Open Knowledge
Repository (https://openknowledge.worldbank.org).