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  • ASIAN DEVELOPMENT BANK6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippineswww.adb.org

    OUTLOOK FOR INCREASED ADOPTION OF SMART GRID TECHNOLOGIES IN ADB ENERGY SECTOR OPERATIONSSmart Grid Task Force

    ADB SUSTAINABLE DEVELOPMENT WORKING PAPER SERIES

    NO. 42

    April 2016

    Outlook for Increased Adoption of Smart Grid Technologies in ADB Energy Sector Operations

    The working paper presents an overview of technical and functional details on smart grids to provide a framework for increased integration of the technology in ADBs Energy Sector operations. The paper proposes support in development of smart grid road maps, smart grid codes, policies and regulatory frameworks, capacity building, and implementation of smart grid projects in a phased manner.

    About the Asian Development Bank

    ADBs vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the regions many successes, it remains home to the majority of the worlds poor. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration.

    Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

    ASIAN DEVELOPMENT BANK

  • ASIAN DEVELOPMENT BANK

    ADB Sustainable Development Working Paper Series

    Outlook for Increased Adoption of Smart Grid Technologies in ADB Energy Sector Operations

    Smart Grid Task Force

    No. 42 | April 2016

    The Smart Grid Task Force comprises Arun Ramamurthy, senior public management specialist (ICT & e-Governance), SDCC; Aruna K Wanniachchi, senior energy specialist, South East Department (SERD); Kazuhiro Enomoto, energy specialist, South Asia Department (SARD); and Satoshi Kurimoto, energy specialist, SARD.

  • Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

    2016 Asian Development Bank6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, PhilippinesTel +63 2 632 4444; Fax +63 2 636 2444www.adb.org; openaccess.adb.org

    Some rights reserved. Published in 2016. Printed in the Philippines.

    Publication Stock No. WPS167981-2 Cataloging-In-Publication Data

    Asian Development Bank. ADB Sustainable Development Working Paper Series No. 42: Outlook for Increased Adoption of Smart Grid Technologies in ADB Energy Sector Operations.Mandaluyong City, Philippines: Asian Development Bank, 2016.

    1. Smart grid. 2. Energy efficiency.I. Asian Development Bank.

    The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

    ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.

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    This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of said license as well as the Terms of Use of the ADB Open Access Repository at openaccess.adb.org/termsofuse

    This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material.

    AttributionIn acknowledging ADB as the source, please be sure to include all of the following information: Author. Year of publication. Title of the material. Asian Development Bank [and/or Publisher].

    https://openaccess.adb.org. Available under a CC BY 3.0 IGO license.

    TranslationsAny translations you create should carry the following disclaimer:Originally published by the Asian Development Bank in English under the title [title] [Year of publication]

    Asian Development Bank. All rights reserved. The quality of this translation and its coherence with the original text is the sole responsibility of the [translator]. The English original of this work is the only official version.

    AdaptationsAny translations you create should carry the following disclaimer:This is an adaptation of an original Work Asian Development Bank [Year]. The views expressed here are

    those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent. ADB does not endorse this work or guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.

    Please contact OARsupport@adb.org or publications@adb.org if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo.

    Note: In this publication, $ refers to US dollars.ADB recognizes China as the Peoples Republic of China and Vietnam as Viet Nam.

  • CONTENTS

    TABLES AND FIGURES iv

    ABBREVIATIONS v

    EXECUTIVE SUMMARY vi

    I. SMART GRID: CONTEXT AND ADVANCEMENTS 1

    A.Introduction 1B. Objectives 2

    II. SMART GRIDS AT A GLANCE 2

    A. What is a Smart Grid? 2B. Key Smart Grid Components 3

    III. TECHNIQUES TO INTEGRATE SMART GRID IN ADB ENERGY SECTOR OPERATIONS 6

    A. Smart Grid Components in Renewable Energy 7B. Smart Grid Components in Demand Side Management 9C. Smart Components in Grid Monitoring and Control 11D. Smart Cities and the Role of Smart Grids 15E. Information and Communications Technology in Smart Grids 16F. International Technical Standards for Smart Grids (Smart Grid Codes) 18

    IV. GLOBAL SMART GRIDS INITIATIVES AND CASE STUDIES 18

    A. Smart Grid Initiatives 18B. Case Studies: Demand Side Management 21C. Case Studies: Smart Meters 23D. Case Studies: Smart Grid Road Maps, Viet Nam 25E. Research and Development: Smart Grid Testbed in Jeju Island, Republic of Korea 27F. ADB-Supported Smart Grid Projects 28

    V. CHALLENGES IN THE ROLLOUT OF SMART GRID COMPONENTS 29

    VI. WAY FORWARD FOR ADB 30

    APPENDIX: DESCRIPTION OF INFORMATION AND COMMUNICATIONS TECHNOLOGY COMPONENTS IN SMART GRIDS 32

    REFERENCES 36

  • TABLES AND FIGURES

    Tables

    1: Large-Scale Rechargeable Battery Projects in Japan 8

    2: Summary of Methods Used to Implement Wind and Solar Curtailment 9

    3: Static Synchronous Compensators Details 15

    4: Advance Metering Infrastructure Cost Assumptions 24

    5: Smart Grid Components in ADB Operations 28

    Figures

    1: Mapping of Smart Grid Components 6

    2: Hybrid Renewable Energy Forecasting System 7

    3: Illustration of Automated Metering Infrastructure across Utility Services 10

    4: Sectionalizer Switch with Three-Phase Censor and Its Modem Unit 12

    5: Phasor Measurement UnitsGeographic Spread across the North America 13

    6: Information and Communications Technology Components in Smart Grids 17

    7: Smart Grid at Miyako Islands, Japan 19

    8: Smart Grid Pilot in Puducherry, India 20

    9: Load Factor Improvement of Kansai Electric Power, Japan 22

    10: Smart Meter Deployments in the United States 23

    11: Split Metering Installation 25

    12: Smart Grid Program in Viet Nam 26

  • ABBREVIATIONS

    ADB Asian Development Bank

    AMI advanced metering infrastructure

    AMS asset management system

    BI business intelligence

    BMS battery management system

    CRM customer relation management system

    DAS distribution automation system

    DLC direct load control

    DMC developing member country

    DMS distribution management system

    DRMS demand response management system

    EDM energy data management

    EMS energy management system

    ERP enterprise resource planning

    FACTS flexible alternate current transmission system

    GIS geographic information system

    GHG greenhouse gas

    HVDC high voltage direct current

    ICT information and communications technology

    IEC International Electro Technical Commission

    IEEE Institute of Electrical and Electronics Engineers

    IGBT insulated gate bipolar transistor

    IoT internet of things

    OPGW optical ground wire

    PLC power line communication

    PMU phasor measurement unit

    PSHP pumped storage hydropower plants

    NIST National Institute of Standards and Technology

    SCADA supervisory control and data acquisition

    SCM supply chain management

    STATCOM static compensator

    TOU time of use

    WAMS wide area monitoring system

  • EXECUTIVE SUMMARY

    Access to affordable and reliable energy supply is a key determinant to ensure inclusive growth and socioeconomic development particularly in the Asia and the Pacific. The need for financial, technical, and institutional support in energy sector development in the developing countries in

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