Smart Grid
The electrical power produced at the generating stations is transmitted to the points of
utilization which is achieved with the help of grids (an interconnected network for
electricity transmission and distribution from producers to the consumers). Based on the
devices used and their functionality, the electric power grids are classified into two
categories viz.

Conventional grid (or traditional grid)

Smart grid
Many issues contribute to the incapability of conventional grid to competently meet the
demand for consistent power supply. In order to resolving these problems, the smart grids
are developed which is infused with the intelligent sensors and controllers, automated
switches and substations, strong communication and other technologies, etc.
This section is meant for explaining the differences between conventional grid and smart
grid. Also, we have briefly described the conventional grid and smart grid for the reader’s
reference.
What is Conventional Grid?
The conventional power grid, also known as traditional power grid, is an interconnection
of various elements of electric power system such as alternators, transformers,
transmission lines and different types of electrical loads developed for transmission of
electric power from production point to the utilization points.
Figure-1 shows a basic schematic of a conventional power grid. In case of conventional
power grid, there is only power infrastructure. Thus, the conventional power grid uses a
limited one-way flow of electricity. That is, the electric power flows from the power
generating station to the consumer.
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What is Smart Grid?
A smart grid is the developed form of conventional power grid which provides more
reliable and consistent electric power supply. The smart grid is the electrical system which
is capable for monitoring the activities of the grid connected system and provides the realtime information of all the events occurring in the power system.
The schematic of a typical smart grid is shown in Figure-2. Here, the smart grid involves two
infrastructures, i.e. power infrastructure for electricity flow and communication
infrastructure for information. Therefore, a smart grid involves the two-way flow of
electricity and information, i.e., electricity from generating station to consumers and
information from consumers to generating station.
Fig. Smart Grid Architecture
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The major components of a smart grid are intelligent appliances, smart power meters,
smart substations, smart distribution systems, smart generating stations, and different
types of sensors for automation, etc.
Features of Smart Grid
Smart grid has several positive features that give direct benefit to consumers:

Real time monitoring.

Automated outage management and faster restoration.

Dynamic pricing mechanisms.

Incentivize consumers to alter usage during different times of day based on pricing
signals.

Better energy management.

In-house displays.

Web portals and mobile apps.

Track and manage energy usage.

Opportunities to reduce and conserve electricity etc.
Smart Grid will also facilitate distributed generation, especially the roof top solar
generation, by allowing movement and measurement of energy in both directions using
control systems and net metering that will help “prosumers” i.e. the consumers who both
produce and consume electricity, to safely connect to the grid.
Benefits of Smart Grid Deployments
Several groups of the society are provided with multiple benefits through the Smart Grid
implementations. Such include utility, customers and the regulators while some of the
benefits include:

Reduction of transmission and distribution (T&D) losses.

Peak load management, improved quality of service (QoS) and reliability.

Reduction in power purchase cost.

Better asset management.

Increased grid visibility and self-healing grids.
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
Renewable integration and accessibility to electricity.

Increased options such as Time of Usage (ToU) tariff, demand response (DR)
programs, net metering.

Satisfied customers and financially sound utilities etc.
Differences between Conventional Grid and Smart Grid
Both conventional grid and smart grid are types of interconnected electrical networks
developed for meeting the demand of consistent power supply. However, there are many
differences between conventional and smart grid based on function and technologies
which are highlighted in the following table:
Basis of
Conventional Grid
Smart Grid
A "conventional power grid" is
A "smart grid" can be defined as the
the interconnected network of
transparent, seamless and
various power system
instantaneous two-way delivery of
components such as
energy and information which
alternator, transformer,
enables the electricity industry to
transmission lines, loads, etc.
better manage the energy delivery
developed for the conveyance
and transmission and empowers the
of electricity from producers to
consumers to have more control
the consumers
over the energy decisions.
The assembly setup, i.e. the
The assembly setup of the smart
relays, switches, meters, etc.
grid is based on the digital
used in the conventional grid
electronics and microprocessors.
Difference
Definition
Type of
assembly setup
are of electromechanical and
solid state type.
Type of power
The conventional grid involves
The distributed generation of
generation
the centralized generation of
electric power is used in the smart
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Basis of
Conventional Grid
Smart Grid
Difference
electric power. That is, all the
grids. Therefore, in the smart grid
power must be produced from
infrastructure, the electric power
a central location which
can be generated and distributed
eliminates the possibilities of
from multiple generating plants.
incorporating alternative
energy sources into the power
grid.
The technology used in the
Smart grid involves microprocessor
conventional power grid is
based digital technology which
typically considered to be
allows the data communication
between
dumb because it has no means
between the devices of the system
devices
of data communication
and makes the remote control
between various devices of the
possible.
Communication
system.
Direction of
flow of
electricity and
information
Protection
system
Control system
The conventional grid provides
Smart grid provides two way flow of
only one-way flow of
electricity and information.
electricity. Sometimes, only
local two way communication
is possible.
The protection system
The smart grids provide completely
employed in conventional grids
automated protection.
is manual or semi-automated
In conventional grids, limited
In smart grids, wide area and fast
and slow control system is
control measures are provided.
provided.
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Basis of
Conventional Grid
Smart Grid
Difference
The infrastructure of a
The smart grids are completely
conventional grid is equipped
sensor based throughout the
with few sensors at particular
installation. Therefore, in the smart
Number of
equipment which makes the
grids, it is easier to determine the
sensors used
determination of location of
location of a fault.
fault in the system difficult and
hence results in the longer
shutdowns.
Monitoring
Due to the use of limited
Smart grid involves sensor based
number of sensors and
digital technologies which provides
traditional equipment in the
self-monitoring of energy
conventional grid, the
distribution.
monitoring of energy
distribution is manual.
Restoration
In the conventional grid, if
Smart grid has self-healing property,
there is any failure in the
i.e. it consists of sensors that can
system, then it needs the
detect the problems in the system
manual restoration of supply,
and take actions to do simple
i.e. technicians have to visit to
troubleshooting and repair without
the site of the failure to make
any intervention of technicians. In
repairs.
case of the infrastructure related
damages, the smart grids
immediately report to technicians at
the monitoring center to start the
required repairs.
Sudden
In case of conventional power
In the smart grid, if there is any
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Basis of
Conventional Grid
Smart Grid
Difference
equipment
failure
Customer
participation
Environmental
effects
grid, the sudden failure of
failure in the infrastructure, then
equipment can lead to
power can be rerouted to go around
complete blackouts, i.e., the
the area of problem and hence
end consumer will receive no
limits the area impacted by the
power to their unit.
power blackout.
In a conventional grid, there is
There is active involvement and
no participation of consumers
participation of consumers in case
in the energy distribution.
of smart grids.
Conventional power stations
Smart grids involve the renewable
such thermal, gas, diesel, etc.
energy integration which reduces
produce power in conventional
the impacts on environment such as
grids which have severe and
emission of CO2 and global
critical bad effects on the
warming.
environment.
ICT and IT infrastructure in Smart Grid
Smart Grid technologies involves deployment of ICT and IT infrastructure. Some of the
functionalities/technological advancements adopted for Indian scenario are:
1. Advanced Meter Infrastructure
Advanced Metering Infrastructure (AMI) facilitates monitoring and measurement of
consumer information through Smart Meters installed at customer premises. The
information is transferred to utility control centre through communication mode such GPRS
/ PLC / RF. Smart meters will also enable Time of Day (TOD) and Critical Peak pricing
(CPP)/Real Time Pricing (RTP) rate metering and monitoring based on energy consumption.
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2. Peak Load Management
The peak management refers to controlling the demand and matching it to the available
supply at the instant of peak. The peak management function shall take inputs from SCADA
for power availability and volume of shortage. Based on the shortage, the peak
management function shall run algorithms considering various constraints and priorities
predefined on the basis of customer profile by SI in association with Employer/Utility
personnel, and suggest the options to Employer/Utility officials. The approach shall be to
avoid tripping of feeders for load shedding and manage peak load either by load curtailment
thru AMI or by price incentives/disincentives.
3. Power Quality Management
Power Quality Management address events like Voltage flickering (Sags/Swells), unbalanced
phases voltages and harmonic distorted/contaminated supply etc. This will facilitate
efficient and reliable operation of the power system, reduce losses, improve customer
satisfaction and reduced equipment (utility/consumer) failures. Power Quality management
shall include voltage / VAR Control, Load balancing, Harmonics Controller etc.
4. Outage Management
OMS manages unscheduled and scheduled outages of distribution infrastructure like
Distribution Transformers (DTs), HT/LT feeders etc. It collect and coordinates information
about outages including customer calls and report the operator for taking corrective actions
through crew management and remote control enabling customer satisfaction, improve
System Availability and Reliability.
5. Microgrids
A Microgrid is an integrated energy and communication system consisting of interconnected
loads and Distributed Energy Resources (DER) which mainly operates in standalone mode or
in parallel with the grid (macro grid) in case of emergency. Microgrid generation resources
include micro turbines, wind, solar, fuel cells or other energy sources. The multiple
dispersed generation sources and ability to isolate the microgrid from a larger network
provides highly reliable electric power to its consumers.
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6. Distributed Generation
Development and implementation of new and innovative technologies for distributed
generation including technology, products, vendors and solutions, evaluation and design of
suitable solution for managing renewable integration. Examples are technologies and
solutions related to EV/PHEV (Plug-in Hybrid and/or Electric Vehicles), wind, photovoltaic
and other distributed generation technologies, systems and solutions supporting flexibility
of interaction with customers, energy usage/exchange, demand and losses management,
management of transactions, pricing and billing, etc.
Internet of Things (IoT) in Home Automation
IoT home automation is the process of controlling home appliances automatically using
various control system techniques. The electrical and electronic appliances in the home such
as windows, refrigerators, fans, lights, fire alarms, kitchen timers, etc. can be controlled
using various control techniques.
IoT home automation is the ability to control domestic appliances by electronically
controlled, internet-connected systems. It may include setting complex heating and lighting
systems in advance and setting alarms and home security controls, all connected by a
central hub and remote-controlled by a mobile app.
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However, in this always-connected IoT home of mood-sensing music systems, smart
lighting, intelligent heating and cooling, motorized blinds, and automated windows and
doors, there appears to be little discussion about why consumers haven't unambiguously
bought into the IoT home hype, or whether domestic life has improved as a result of it.
It lets customers make grocery lists, adjust their home's temperature, and turn appliances
on and off. The kitchen computer, which was created in the late 1960s and could also
develop recipes, was never a commercial success due to its expensive price.
Typically, an internet-connected central hub manages all of the individual gadgets in an IoT
smart home. The central smart home hub is then controlled via a smart phone app. It can be
difficult to set up an IoT smart home: There are a variety of attachments that are only
compatible with specific goods.
The term "home automation" refers to the automation of a home, often known as a "smart
home" or "smart house." You can manage your gadgets such as lights, fans, and televisions
through the IoT home automation ecosystem.
Lighting, temperature, entertainment systems, and appliances may all be monitored and/or
controlled by a home automation system. Controlling your home devices is quite useful.
It will also include domestic security features such as access control and alarm systems.
Domestic devices are a key component of the Internet of Things once they are connected to
the internet.
Controlled devices are frequently connected to a central hub or gateway in a home
automation system. The system's control programme may be accessed through wallmounted terminals, tablet or desktop computers, a smart phone app, or an online interface
that can even be accessed from off-site over the Internet.
Internet-of-Things (IoT) technology will pervade practically every aspect of our everyday
lives, making us more comfortable and secure.
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Advanced Metering Infrastructure (AMI) for Smart Grid
AMI (Advanced Metering Infrastructure) is the collective term to describe the whole
infrastructure from Smart Meter to two way-communication network to control center
equipment and all the applications that enable the gathering and transfer of energy usage
information in near real-time. AMI makes two-way communications with customers possible
and is the backbone of smart grid. The objectives of AMI can be remote meter reading for
error free data, network problem identification, load profiling, energy audit and partial load
curtailment in place of load shedding.
Building Blocks of AMI
AMI is comprised of various hardware and software components, all of which play a role in
measuring energy consumption and transmitting information about energy, water and gas
usage to utility companies and customers. The overarching technological components of
AMI include:
Smart Meters- Advanced meter devices having the capacity to collect information about
energy, water, and gas usage at various intervals and transmitting the data through fixed
communication networks to utility, as well as receiving information like pricing signals from
utility and conveying it to consumer.
Communication Network: Advanced communication networks which supports two way
communication enables information from smart meters to utility companies and vice-versa.
Networks such as Broadband over PowerLine (BPL), Power Line Communications, Fiber
Optic Communication, Fixed Radio Frequency or public networks (e.g., landline, cellular,
paging) are used for such purposes.
Meter Data Acquisition System- Software applications on the Control Centre hardware and
the DCUs (Data Concentrator Units) used to acquire data from meters via communication
network and send it to the MDMS
Meter Data Management System (MDMS): Host system which receives, stores and analyzes
the metering information.
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Home Area Network (HAN) - It can be an extension of AMI deployed at consumer premises
to facilitate the communication of home appliances with AMI and hence enable a better
control of loads by both utility and consumer.
Figure-1: illustrates the components that make up AMI, including advanced electric, gas and
water meters a data transmission network and a data management system
Benefits: The benefits of AMI are multifold and can be generally categorized as:

Operational Benefits – AMI benefits the entire grid by improving the accuracy of
meter reads, energy theft detection and response to power outages, while
eliminating the need for on-site meter reading.

Financial Benefits – AMI brings financial gains to utility, water and gas companies by
reducing equipment and maintenance costs, enabling faster restoration of electric
service during outages and streamlining the billing process.

Customer Benefits – AMI benefits electric customers by detecting meter failures
early, accommodating faster service restoration, and improving the accuracy and
flexibility of billing. Further, AMI allows for time-based rate options that can help
customers save money and manage their energy consumption.
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
Security Benefits-AMI technology enables enhanced monitoring of system
resources, which mitigates potential threats on the grid by cyber-terrorist networks.
Challenges
Despite its widespread benefits, deploying AMI presents three majors challenges that
include high upfront investments costs, integration with other grid systems, and
standardization.

High Capital Costs: A full scale deployment of AMI requires expenditures on all
hardware and software components, including meters, network infrastructure and
network management software, along with cost associated with the installation and
maintenance of meters and information technology systems.

Integration: AMI is a complex system of technologies that must be integrated with
utilities' information technology systems, including Customer Information Systems
(CIS), Geographical Information Systems (GIS), Outage Management Systems (OMS),
Work Management (WMS), Mobile Workforce Management (MWM), SCADA/DMS,
Distribution Automation System (DAS), etc.

Standardization: Interoperability standards need to be defined, which set uniform
requirements for AMI technology, deployment and general operations and are the
keys to successfully connecting and maintaining an AMI-based grid system.
AMI in the Indian Context
Modernizing India's grid system by investing in AMI promises to mitigate a number of strains
placed on the grid due to growing demand for electric, gas and water resources. In
particular, AMI will improve three key features of India's grid system including:

System Reliability: AMI technology improves the distribution and overall reliability
of electricity by enabling electricity distributors to identify and automatically
respond to electric demand, which in turn minimizes power outages.

Energy Costs: Increased reliability and functionality and reduced power outages and
streamlined billing operations will dramatically cut costs associated with providing
and maintaining the grid, thereby significantly lowering electricity rates.
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
Electricity Theft: Power theft is a common problem in India. AMI systems that track
energy usage will help monitor power almost in real time thus leading to increased
system transparency.
Smart Grid Pilot Projects in India https://www.nsgm.gov.in/en/sg-pilot
The Smart Grid pilot projects sanctioned by Ministry of Power which are completed are as
follows:

AVVNL, Ajmer

TSSPDCL, Telangana

APDCL, Assam

UHBVN, Haryana

CESC, Mysore

UGVCL, Gujarat

HPSEB, Himachal Pradesh

WBSEDCL, West Bengal

PED, Puducherry

IIT Kanpur

TSECL, Tripura

SGKC, Manesar
IIT Kanpur Smart Grid: Smart City Pilot in Power Distribution Sector
Highlights
Description
Project
Summary
The project aims to develop a Smart City prototype and R&D
platform for smart distribution systems and demonstrates the
future capabilities of a Smart City. The project area includes three
substations for implementing substation automation, residential
flats for smart home system implementation. Grid connected solar
PV will also be installed for RE integration. Robust communication
network shall also be developed for seamless exchange of
information across the prototype.
Functionalities
Adopted
Advanced Metering Infrastructure
Smart City Control Center
Smart Homes
Advanced IT Infrastructure
Renewable Integration
Benefits
Envisaged
Smart City R&D Platform
Smart Home Management Systems
Substation Automation
Rooftop Solar PV Integration
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CESC, Mysore: Smart Grid Pilot in Power Distribution Sector
Highlights
Description
Area
of
Implementation
V V Mohalla (Additional City Area Division)
Project
Summary
Project involves 21,824 consumers with a good mix of
residential, commercial, industrial and agricultural consumers
including 512 irrigation pump sets covering over 14 feeders and
473 distribution transformers and accounting for input energy of
151.89 MU. Additional functionality like Agriculture DSM with
community portal, consumer portal to support DSM/DR,
employee portal for knowledge sharing and benefit realization,
KPI based MIS and data analytics for decision support are also
proposed
Functionalities
Adopted





Advanced Metering Infrastructure
Peak Load Management
Outage Management
Distributed Generation
Micro Grid



Reduced Distribution Losses
Reduced Peak load consumption
Reduced cost of billing
Renewable Energy Systems
What isn’t a renewable energy source?
Fossil fuels are not a renewable source of energy because they are not infinite. Plus, they
release carbon dioxide into our atmosphere which contributes to climate change and global
warming.
Burning wood instead of coal is slightly better but it’s complex. On the one hand, wood is a
renewable resource – provided it comes from sustainably managed forests. Wood pellets
and compressed briquettes are made from by-products of the wood processing industry and
so arguably it’s recycling waste.
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Compressed biomass fuels produce more energy than logs too. On the other hand, burning
wood (whether it be raw timber or processed waste) releases particles into our atmosphere.
Advantages and Disadvantages of Renewable Energy Sources
Advantages
Disadvantages
Renewable energy won’t run out
Renewable energy has high upfront costs
Renewable energy has lower maintenance
requirements
Renewable energy is intermittent
Renewables save money
Renewables have limited storage capabilities
Renewable energy has numerous
environmental benefits
Renewable energy sources have geographic
limitations
Renewables lower reliance on foreign
energy sources
Renewables aren’t always 100% carbon-free
Renewable energy leads to cleaner water
and air
Renewable energy creates jobs
Renewable energy can cut down on waste
Types of renewable energy sources: The most popular renewable energy sources currently
are:

Solar energy: Sunlight is one of our planet’s most abundant and freely available
energy resources. The amount of solar energy that reaches the earth’s surface in one
hour is more than the planet’s total energy requirements for a whole year. Although
it sounds like a perfect renewable energy source, the amount of solar energy we can
use varies according to the time of day and the season of the year as well as
geographical location.

Wind energy: Wind is a plentiful source of clean energy. Wind farms are an
increasingly familiar sight in the world with wind power making an ever-increasing
contribution to the National Grid. To harness electricity from wind energy, turbines
are used to drive generators which then feed electricity into the National Grid.
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Although domestic or ‘off-grid’ generation systems are available, not every property
is suitable for a domestic wind turbine. Find out more about wind energy on our
wind power page.

Hydro energy: As a renewable energy resource, hydro power is one of the most
commercially developed. By building a dam or barrier, a large reservoir can be used
to create a controlled flow of water that will drive a turbine, generating electricity.
This energy source can often be more reliable than solar or wind power (especially if
it's tidal rather than river) and also allows electricity to be stored for use when
demand reaches a peak. Like wind energy, in certain situations hydro can be more
viable as a commercial energy source (dependant on type and compared to other
sources of energy) but depending very much on the type of property, it can be used
for domestic, ‘off-grid’ generation.

Tidal energy: This is another form of hydro energy that uses twice-daily tidal
currents to drive turbine generators. Although tidal flow unlike some other hydro
energy sources isn’t constant, it is highly predictable and can therefore compensate
for the periods when the tide current is low.

Geothermal energy: By harnessing the natural heat below the earth’s surface,
geothermal energy can be used to heat homes directly or to generate electricity.
Although it harnesses a power directly below our feet, geothermal energy is of
negligible importance in the UK compared to countries such as Iceland, where
geothermal heat is much more freely available.

Biomass energy: This is the conversion of solid fuel made from plant materials into
electricity. Although fundamentally, biomass involves burning organic materials to
produce electricity, and nowadays this is a much cleaner, more energy-efficient
process. By converting agricultural, industrial and domestic waste into solid, liquid
and gas fuel, biomass generates power at a much lower economic and
environmental cost.
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Solar Photovoltaic System
The scope of solar Photovoltaic (PV) systems has grown exponentially over the past few
years. A PV system comprises of semiconducting materials that convert sunlight into
electricity. As a result, PV systems are widely being used for solar applications. Based on the
functional and operational specifications, the way a solar PV system is connected to other
power sources, and their component configurations.
There are Three Prominent Types of Solar PV Systems:
Grid Connected or Utility-Interactive Systems
Stand-alone Systems
Hybrid Systems
1. Grid-Connected System
Grid-connected PV systems do not need battery storage. However, it’s always possible to
add a battery to a grid-connected solar system.
a) Grid-Connected PV Systems without Battery
A grid-connected system is a basic installation that uses a grid-tied inverter. It’s ideal for
those who wish to opt for solar installation for residential use. Consumers can benefit
from net metering. Net metering allows us to redirect any surplus energy to the grid. In this
way, customers have to pay only for the difference in energy that they use. A gridconnected system has solar panels that absorb solar radiation, which is then transformed
into direct current (DC). The DC is then used by the solar system’s inverter that converts the
DC energy to alternating current (AC). The AC can be then used by household devices in the
same way they rely on a grid system.
The main advantage of using a grid-connected system is that it is less expensive than
other types of solar PV systems. Further, it offers design flexibility as the system need not
power all of the household’s loads. The key drawback of a grid-connected system is that it
does not offer any outage protection.
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Fig. 1. Grid
Grid-connected solar PV system without battery
b) Grid-Connected
Connected PV Systems with Battery
Battery: Including a battery in a grid PV system offers
more energy independence to the household. It leads to reduced reliance on grid electricity
and energy retailers along with the assurance that electricity can be drawn from the grid in
case the solar system is not generating enough energy.
Fig. 2.. Grid
Grid-connected solar PV system with battery
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2. Standalone Systems
A standalone PV system (also called off-grid solar system) is not connected to the grid. Thus,
it requires a battery storage solution. Standalone PV systems are useful for rural regions
that have difficulty in connecting to the grid system. Since, these systems don’t rely on
electrical energy storage; they are suitable for powering applications such as water pumps,
ventilation fans, and solar thermal heating systems. It’s essential to consider a reputed
company if you are planning to go for a standalone PV system. This is because an
established firm will cover warranties for a longer period. However, if standalone systems
are considered for household use, they will have to be designed in such a way that they can
address the household’s energy needs as well as the battery charging requirements. Some
standalone PV systems also have backup generators installed as an extra layer. However,
such an arrangement can be expensive to set up and maintain. An overhead associated with
standalone solar PV systems is that they require constant check against terminal corrosion
and battery electrolyte levels.
Fig. 2. Stand-alone solar PV system
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3. Hybrid PV Systems
A hybrid PV system is a combination of multiple sources of power to enhance the availability
and usage of power. Such a system can leverage energy from sources such as wind, sun, or
even hydrocarbons. Furthermore, hybrid PV systems are often backed up with a battery to
maximize the efficiency of the system. There are various advantages of using a hybrid
system. Multiple sources of energy mean that the system is not dependent on any particular
energy source. For instance, if the weather is not conducive to generating enough solar
energy, the PV array can charge the battery. Similarly, if it’s windy or cloudy, a wind turbine
can address the charging requirements of the battery. Hybrid PV systems are best suited for
isolated places with limited grid connection. Despite the above advantages, there are a few
challenges associated with a hybrid system. For instance, it involves a complex design and
installation process. Moreover, multiple sources of energy can increase the upfront costs.
Fig. 4. Hybrid renewable energy system
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