Development of Energy System Smart
Grids Based On Multi-Criteria Decision
Making
Aleksandar Janjić1, Suzana Savić2, Lazar
Velimirović3
1University
of Niš, Faculty of Electronic Engineering
2University of Niš, Faculty of Occupational Safety
3Mathematical Institute of the Serbian Academy of Sciences and Arts, Belgrade
Information theory and complex systems, September 2013
Content
 Smart grid definition
 Smart grid security
 Multi-criteria smart grid development
 Conclusion
Information theory and complex systems, September 2013
1. Smart grid definition
A smart grid is a modernized electrical grid that uses
information and communications technology to gather and
act on information, such as information about the behaviors
of suppliers and consumers, in an automated fashion to
improve the efficiency, reliability, economics, and
sustainability of the production and distribution of electricity.
Information theory and complex systems, September 2013
1. Smart grid definition - benefits
 Reliability — by reducing the cost of interruptions and power quality
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disturbances and reducing the probability and consequences of widespread
blackouts.
Economics — by keeping downward prices on electricity prices, reducing the
amount paid by consumers as compared to the “business as usual” grid, creating
new jobs.
Efficiency — by reducing the cost to produce, deliver, and consume electricity.
Environmental — by reducing emissions by enabling a larger penetration of
renewables and improving efficiency of generation, delivery, and consumption.
Security — by reducing the probability and consequences of manmade attacks
and natural disasters.
Safety — by reducing injuries and loss of life from grid-related events .
Information theory and complex systems, September 2013
1. Smart grid definition
Interaction of Actors in Different Smart Grid Domains through
Secure Communication Flows
Information theory and complex systems, September 2013
2. Smart grid security
Potential risks associated with the evolution of the Smart Grid include:
 Greater complexity increases exposure to potential attackers and unintentional errors;
 Networks that link more frequently to other networks introduce common vulnerabilities
that may now span multiple Smart Grid domains and increase the potential for cascading
failures;
 More interconnections present increased opportunities for “denial of service” attacks,
introduction of malicious code (in software/firmware) or compromised hardware, and
related types of attacks and intrusions;
 As the number of network nodes increases, the number of entry points and paths that
potential adversaries might exploit also increases; and
 Extensive data gathering and two-way information flows may broaden the potential for
compromises of data confidentiality and breaches of customer privacy, and compromises of
personal data and intrusions of customer privacy.
Information theory and complex systems, September 2013
2. Smart grid security
Information theory and complex systems, September 2013
2. Smart grid security
 Development of an effective cyber security strategy requires a holistic
approach to analyzing risk. For example, an effective risk assessment
approach entails “systematically documenting and prioritizing known and
suspected control system vulnerabilities [threats] and their potential consequences,”
so that “energy sector asset owners and operators will be better prepared to
anticipate and respond to existing and future threats.”
 Risk is the potential for an unwanted outcome resulting from internal or
external factors, as determined from the likelihood of occurrence and
the associated consequences. Organizational risk can include many types
of risk (e.g., investment risk, budgetary risk, program management risk,
legal liability risk, safety risk, inventory risk, and the risk from
information systems).
Information theory and complex systems, September 2013
3. Multi-criteria SG development
The analytic hierarchy process (AHP) is a structured technique for organizing and
analyzing complex decisions. Based on mathematics and psychology, it was developed by
Thomas L. Saaty in the 1970s and has been extensively studied and refined since then.
Information theory and complex systems, September 2013
3. Multi-criteria SG development
Composite High-level View of the Actors within Each of the Smart Grid
Domains
Information theory and complex systems, September 2013
3. Multi-criteria SG development
R
S
B
E
Z
λ
U
C
T
O
A
R
M
R – overall risk, S – social risk, B – security risk, E – economic risk, Z – substation
importance, λ – substation failure rate, U – external influences, T – technology, C
– circuit breaker state, A – age of the breaker, R – test results, M – maintenance
level, O – alternatives
Information theory and complex systems, September 2013
3. Multi-criteria SG development
Ranking of criteria
Age
Maintenance
Test results
Age
1
½
1/3
Maintenance
2
1
½
Test results
3
2
1
w1=0,158, w2=0,29, w3=0,54.
Information theory and complex systems, September 2013
4. Conclusion
 The choice of adequate activity for planning smart grid
development is a complex and difficult task. This is due to three
main reasons: (1) presence of various alternatives; (2) existence of
multiple criteria (economic, technical, environmental, etc.) to be
met simultaneously, although they are often incommensurable and
incomparable; (3) renewable energy sources in a distribution grid
must be optimized based on operational needs and on algorithms
used for the optimization
 Consequently, it is necessary to perform a multi-criteria analysis in
the process of smart grid development
Information theory and complex systems, September 2013