2021 1st International Conference on Power Electronics and Energy (ICPEE-2021)

Study of Energy Management System and IOT

Integration in Smart Grid
Negasa Muleta* Dr. Altaf Q. H. Badar
Dept. Electrical Engineering Dept. Electrical Engineering
National Institution of Technology Warangal National Institution of Technology Warangal
Warangal, India Warangal, India
[email protected] [email protected]
2021 1st International Conference on Power Electronics and Energy (ICPEE) | 978-1-7281-8774-7/21/$31.00 ©2021 IEEE | DOI: 10.1109/ICPEE50452.2021.9358769

Abstract—Increasing energy demand, rising energy costs and play an important role in the emerging of a smart grid. In the
unpredictable energy markets are factors that have led consumers smart grid, the electric consumer is required to harvest energy
and utilities to search for optimal ways of controlling, monitoring from renewable sources (wind turbines, photo-voltaic panels
and saving of energy. The power system has to continuously
improve to adapt to new types of loads and generating techniques, and solar collectors) [3], that is available in abundance and
which increases the complexity of the system. For achieving have less operation cost.
the expected goal, communication technology that connects the Energy demand is the most crucial issue and introduces
controller units and electrical devices / sensors for different end- different features for development of smart cities [4]. Smart
users and utility play a crucial role. Internet of Things (IoT) cities will derive information from the intense deployment of
is the fastest growing and modern communication method used
to provide information for decision making in a smart grid for IoT technologies along with the intelligent EMS. Intelligent
the prosumers and end-users. In this paper, the application and EMS is minimizes energy consumption by improving utiliza-
integration of IoT for managing, controlling and monitoring of tion, forecasting maintenance needs, reducing energy costs and
electrical energy is studied. increasing the reliability and stability of the system [5] under
Index Terms—Internet of Things (IoT), Smart grid, ,Energy various conditions.
management system Demand-side management
The IoT now has important applications in all aspects of our
lives including military, business, health [6], security [7], [8].
I. I NTRODUCTION
IoT also finds applications in EMS, to balance power between
Electrical energy is a critical issue in today’s society. The inadequate power supply (high demand) region and surplus
global share of electrical energy out of the total energy con- power in another place through the provision of information
sumption is expected to increase from a current share of 20% about power handling. At generating stations, IoT provides
(2019) to 23%–27% by 2040 [1]. Starting from generation information as a backup to balance the supply and demand by
to end-user there are obstacles that reduce the efficiency and controlling [9], [10] the generation system for stable operation.
effectiveness of the system. Some of the factors can be reduced The combination of IoT technologies with artificial intelli-
by using modern controlling and monitoring systems. The gence is also applicable in home automation, transportation,
variation in energy costs, demand, energy markets are the energy management and etc., in modernized communities. In
driving factors that shift energy consumers and producers to smart electrical systems, producing and selling power to grid
find favorable ways for controlling, monitoring and saving of during no load time and buying from grid during peak demand
energy. [4] is expected from the consumers. This paper has different
At generating centers, the knowledge of available resources sections as: Section II deals with energy management in smart
and capacity will help the supplier to change energy according grid. In third section, IoT applications in EMS is discussed.
to end-user demand. The smart control and management Section IV deals with ways of IoT integration with EMS. The
system help consumers like institutes, building and apartments paper ends with a conclusion.
to manage their own electrical devices through Energy Man-
agement System (EMS). EMS is applied for controlling and II. E NERGY M ANAGEMENT IN S MART G RID
managing electrical energy to operate at a optimal state. The Energy management of power system includes planning and
security and safety of electrical facilities can be improved by operation of energy production and consumption units. The
using different types of sensors to collect data in EMS. objectives of EMS is conservation of the resource, cost savings
As discussed in [2], the modern power systems trend has to and climate protection, while providing regular access to the
be: decentralized, democratized and decarbonized which are energy need of users. The efficiency of energy management is
known as ‘three D’s’ in planning. The purpose of these trends of high importance in a smart grid. The concepts like smart
is to optimize power system reliability, cost of electricity, microgrids and multi-energy systems are integrated with the
resiliency, CO2 emission, etc. Penetration of distributed gen- latest communication technologies to face system challenges.
eration such as renewable resources in modern power systems According to the control structure, EMS is categorized as:

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 • Centralized Energy Management Systems (CEMS): constraints. IEM device is installed with electrical facilities to
controlled by a central system. Scheduling and monitor- decide system tariff depending on availability of the source,
ing of the system operation depends on measured data service time, peak load and base load. Determining system
and system composition. energy dispatch and satisfying customer energy demands are
• Distributed Energy Management Systems (DEMS): is also another task of IEM. Moreover, it should inculcate
decentralized. It operates more autonomously and inde- effective energy savings in energy management strategies and
pendently. increase efficiency of the system [3]. Using IEM in smart grid
In CEMS and DEMS, the communication system has an is used to: reduce energy costs, increase energy efficiency,
important role to connect the controller units and sensors. reduce carbon footprints and enable statutory compliance.
Flexible controlling of distributed energy sources is very diffi- Building Automation and Control Systems (BACS) is a
cult in a centralized power system structure, requiring control crucial element for monitoring and control facilities in modern
of each power unit. So the power system is changed into a buildings. BACS is integration of various controllers and
more decentralized form rather than a centralized structure to sensors distributed in the building. With technical building
manage these distributed energy resources efficiently [1]. management functions, the BACS monitors and controls: room
Further distributed energy sources are composed of different temperature, hot water, and all electrical devices. As discussed
small independent power grids called as microgrids. The main in paper [3], BACS and Technical Building Management
objective of EMS’s in a microgrid is to operate the electrical (TBM) functions are standardized by EN 15232. Depending
system reliably and economically. In microgrid EMS, the on feasibility of service and combination stages, the BACS
scheduling and controlling are used for short term optimal standard control and TBM function are categorized into:
operation and power balancing [1], due to unpredictable nature
of the energy sources. • Class A: Highly efficient energy systems
The conventional power system needs to be modified in • Class B: Moderate energy systems
various aspects such as Demand Side Management (DSM), • Class C: Normal energy system
power monitoring, shorter down-times, reduced grid losses, • Class D: Non-efficient energy system
etc. Prosumer Microgrids (PMG) are equipped with a smart
network, transferring information in real-time, that allows The modified EMS combined with distributed control systems
the consumers and utility to operate using active parameters in BACS gives direction for simple application of demand
such as: electricity tariff, sensors, alarms, etc. In a smart response and active DSM systems.
system, PMG has alternative sources of energy and satisfies Buildings which consists of modern automation and in-
its requirements from renewable sources or through the main tegration, to measure, control, monitor, optimize operations
grid. Due to its flexibility an energy user prefers PMG [3]. and maintenance for all devices are known as smart build-
Demand-side energy management strategy are categorized as: ings. Building type, condition of climate, equipment profiles,
• Event-based / Event-triggered DSM: It is based on remote customer interest for energy usage, residence life standard,
sensing and can control facilities at the consumers end. etc., are the parameters that affect energy consumption in
An online energy management algorithm is applied to buildings. Characteristics of smart buildings in the smart grid
provide effective management of the events and control. should make energy demand reliable and minimize greenhouse
• Price-based DSM: It responds to real-time pricing in the gases, by monitoring and managing commercial, industrial,
energy market. Price-based DSM is further classified as: and residential electrical facilities [2].
Reactive scheduling: It responds to changes in elec- A smart community is a modern concept, composed of
tricity price, Smart Transportation System (STS), Smart Water Management
Proactive: It forecasts the load and tariff for the next System (SWMS), smart grid, etc. A smart grid is also further
day and schedules accordingly, a day ahead. categorized to different smart microgrids which comprise of
As discussed in [9], [11], the smart grid is changing the different smart buildings that are controlled separately as
electric system towards a bi-directional flow system for data shown in the fig.1. Smart grid is used to reduce energy
and power while using available transmission network. The theft, improve system security and reliability, prevent extreme
smart grid also integrates all the involved utilities. The real- blackouts, improve power quality, detect and locate power
time microgrids and smart grid development are evaluated imbalance [12]. The concept of smart buildings is further
by data flow between utility and end-user. In smart grid, grouped depending on application area [4]:
consumers can produce electricity from renewable resources
and sell it back to the utility during less consumption / surplus • Pillars applications: targeted towards street / road lighting
power. Smart grid focuses on reducing energy costs and load control by tracing the lamps’ failures and report necessary
scheduling to minimize peak demand. The efficiency of the information to the respective sector.
smart grid is affected by the variation of tariff, loads and • Electrical Vehicle (EV) applications: acquire data of
weather conditions. Intelligent Energy Management (IEM) charging stations, parking spaces, supply equipment for
adjusts the system status depending on variation of these charging vehicles, etc.

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 the microgrid concept. Smart microgrids is characterized by
efficient energy management strategies and algorithms. Using
Smart Community IOT, supports the flexible and safe operation of the distributed
energy sources and helps to utilize the maximum amount of
green energy.
The smart building market is gradually shifting towards
wireless technologies and attention is being given to imple-
Smart Grid menting IoT. The variation and heterogeneity of hardware and
STS SWMS
software separated from the basic features of IoT needs the use
of a standard unified model, in order to increase its operating
efficiency and security. As discussed in [16], [17], techniques
of harvesting of energy from environmental and wireless
Smart Micro-grid method is another application of IoT. If the environmental
energy source is not sufficient, sensors can harvest wireless
power from wireless chargers.
As IoT technology is applied to smart microgrid environ-
ment, crucial data will be obtained for monitoring, controlling,
Smart Building 1 Smart Building 2...
operations, efficiency and reliability, for reducing costs of the
system and improving customer satisfaction [18]. Introducing
IoT for micro grid can be identified as a turning point in the
evaluation of future electrical networks [1]. Advanced sensor
EV Pillar... technologies and wireless communication technologies help
these concepts to increase their performance and reliability in
smart grid applications. The management of distributed energy
Fig. 1. Smart community structure resource is a complex and tedious process in a microgrid and it
depends largely on information exchange. The invention of IoT
in the energy sector, the rules of IEM and internet technologies
III. I NTERNET O F T HING (I OT) IN EMS raise an idea of improving energy efficiency and environmental
The concept of IoT was introduced by international telecom- utilization of a smart building.
munication union in 2005 [9], connecting people, ideas and The communication system in IoT is divided into different
different things. It connects entities with each other at different regions [11], [19].
times and places, through connecting mobile receivers at a • Local Area Network (LAN): This includes and describes
short distance with sensors. IoT is a network between things the communication scheme between consumers and smart
with things and things with humans. It is a platform where meters along with appliances.
anything can be inspected, supervised, and executed, from • Neighborhood Area Network (NAN): It basically repre-
anywhere through the internet [13]. The tasks of IoT in sents a communication medium that contains flow-gates
the smart system is to recognize / detect, communicate and to execute data aggregation, encoding data coming from
interact. sensors.
In the decentralized structure of the power system, the • Wide Area Network (WAN): It is performed to commu-
IoT features are needed to optimize the cost of the system nicate data between the cloud and utility.
energy for consumers and prosumers. IoT based EMS is
A web-based system can be utilized for integrating the
designed to manage the activities of the grid at distribution
IoT architecture with other systems. An important function
and smart buildings level. IoT-based smart energy meter solves
of these components should be fast speed and absolute virtual
the problem of prepaid energy metering by decreasing the
distribution. The consumer can update the energy consumption
complexities and the non-technical losses while ensuring the
data, energy cost, CO2 emissions, etc., using the internet from
reliability of data. A smart IoT based EMS will be used as
anywhere in the globe [4].
a safeguard for processing and control of data for end-user
services by remote-controlled home appliances [14], [15]. A. Features of IoT
IoT is an emerging technology applied with BACS by
integrating all facilities in the buildings and subsystems in The feature of IoT in EMS is categorized as follows [12]:
a simple manner with DSM by substituting new features and • Heterogeneity: Heterogeneous wireless and embedded
IEM in the PMG [3]. The revolution of IoT technologies in the devices are used to receive different parameters such as
BACS is evaluated as having remarkable potential to introduce weather, temperature, humidity contents as well as the
an active, accessible and integrated EMS for all end-users nd availability of light, etc.
stakeholders. The latest communication-based concepts such • Scalability: To adapt to the variations of different param-
as multi-agent systems and IoT are getting involved with eters, sensors are located in the sensing layer, IoT system

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 adopts a growing fractal feature for the different arrange- authentication. The other challenge in these areas is how to
ments. The structure begins from a wireless switchboard monitor in real-time and observe electricity parameters. For
that is used for data analysis [11] at room level and micro optimization and load monitoring in smart buildings, explored
electricity meter and smart meter, at floor and building Home Automation (HA) protocols (X10 and Insteon Powerline
level. protocol) is used. Flexible real-time electricity monitoring and
• Interoperability: To provide a reasonable explanation of controlling in buildings enables consumers to audit their con-
data in different devices, the standardized data format is sumption. According to [13], [20], the architecture / prototype
predefined. The row data is computed from the devices was designed, built and tested, taking input data of electrical
then computed data is sent to the next device using a power parameters. Using micro-controller ESP8266, in the
standard format. main circuit board of the user we can connect it via WiFi
to local internet server and data of building can be accessed
B. Security of IoT in smart grid
from anywhere.
At any level of consumers the IoT based smart grid set up Semantic web advances give an alternative to access all
impacts the prospects of future of the grid and the utility. For data of the community like physical, social and specialized
security service, the IoT system is characterized by: frameworks. Semantic technologies are used for selecting a
• Integrity of data prototype for urban energy systems and evaluate the energy
• Authentication efficiency of a given area [4]. The multi-agent system is an
• Privacy of users data interconnected and decentralized system of different software-
• Data confidentiality based agents that is suitable as compared to SCADA applied
• Control access of data received to a microgrid distributed system [1]. A smart grid that
IV. M ETHODS OF I OT I NTEGRATION WITH EMS incorporates ICT/ IoT with artificial intelligent is the next
generation for the existing power grid. In smart building
Consumers are a fundamental part of the PMGs and uses connected with a smart city in a smart grid, installed IoT end
its infrastructure, specially communication and automation devices generate considerable amounts of data that must be
networks, to provide active, real-time platform for effective transmitted, stored, and operated in powerful cloud computing.
DSM. New challenges in control and building automation
Private EMS provide more alternatives and accurate data
systems require attention to the methods and tools to control,
services [21]. The EMS can interrelate with cloud based data
monitor, minimize energy consumption and data flow [3]. The
storage to transfer different data, but data that are sensitive or
communication facilities in PMGs are categorized as:
private to EMS are not visible to others. Different types of
• Data exchange between a smart grid and microgrid, based
information is collected and manipulated through the cloud to
on a typical ICT and Transmission Control Protocol provide information based services to the users. Cloud can be
(TCP)/ Internet Protocol (IP). accessed from anywhere in the network and use data collected
• Internal data exchange between devices and modules,
by the individual EMS to provide more efficient services.
connected with microgrid features. As discussed in [20], Clouds in the networking system can be categorized [21] as:
the attention is given to the scalability of IoT, data col-
lection for energy from building using Message Queuing • Private cloud, owned by private EMS.
Telemetry Transport (MQTT) protocol. • Service provider cloud, owned by an organization like
To generate feasible data for analyzing, the business intelli- electricity operator
gence system is used for information generation that is catego- • Smart city cloud, police and the fire department are
rized into four levels: Homeowner, Community representative, categorized under this cloud group.
State representative and Country representative. • Public data cloud, can be owned by large institutes.
As discussed in [13], [14], consumed electricity and cost The internet / network connectivity in cloud analytics and
of energy are calculated by the system and the result is sent cloud-centered data science analytics are limited which leads
to a server in a pre-defined way. Node Micro Controller Unit to unsatisfactory or poor performance. Due to this IoT imple-
(NodeMCU) is used with micro-controller and Wi-Fi modules. mentation is applied for smart home services in a smart grid
By means of its micro-controller application, readings of [2]. Collecting, transferring, storing, sorting and manipulating
energy meter data are collected and saved in NodeMCU, then large data, is done in cloud analytics. Different stakeholder are
the data is conveyed to a remote server on the internet via anticipated to gain reasonable profit from the analytics:
Wi-Fi. Consumers can observe real-time data on the server to
• Energy providers and Utility companies
attain exact value of consumption, by controlling electricity as
• Energy Service Companies (ESCOs), building compo-
per their budget.
nents manufacturers, construction companies
An online energy management algorithm based on event-
• Investors and financiers
triggered mechanism is proposed in [3], to provide flexi-
• Local authorities and different institutes.
ble management of different activities and control events.
The issues of security and data privacy are protected using In other cases there is a challenge during the use of data
Hypertext Transfer Protocol Secure (HTTPS) and encrypted platforms for different applications [22] like:

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