A new era of electricity is dawning that combines decarbonization of the grid with the extensive electrification of all sectors of society. A grid as smart as the Internet is needed to harness the full potential of renewables, accommodate technology disruptions, embrace the rise of prosumers, and seamlessly integrate nano-, mini-, and micro-grids. Inspired by the Internet’s way of deploying intelligence, a new distributed paradigm can be realized by distributing the responsibility to sub-grids (clusters) and requiring each sub-grid to maintain its net power balance. This leads to a natural hierarchical network structure, with the whole interconnected grid at the top of the hierarchy. One tier below could be a power authority or a company with its own energy management system (EMS), which would be operated as a “control area” in the interconnection. The bottom tier could be a smart home.
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