Smart Grid

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Review the NIST framework on smart grid from the link given below. Discuss the role of market domain, operations domain and service provider domain.


Do some independent research and explain the roles of FERC, ISOs and RTOs in regulating the transmission and the wholesale electricity market.


Explain the difference between demand response and demand side management.

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Running head: SMART GRID


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Question 1: Market Domain, Operations Domain, and Service Domain Roles
Market Domain
Markets refer to areas used in the purchasing and selling of grid assets. The players
that operate in a market domain are involved in the process of exchanging prices while at the
same time focusing on making sure that the levels of demand and supply realize a state of
balance in the power sector. The different boundaries that prevail in the area of the market
domain comprise of the operations domain, the assets responsible for supplying the domains,
as well as the customer domain. In the event of the operations domain, it facilitates control
operations whereas the domains supply assets relate to areas related to generation as well as
transmission efforts (NIST, 2010). Regarding the customer domain, it mostly handles issues
related to customers on matters related to electricity.
The interaction that prevails between markets domain with the domains responsible
for the supply of energy are quite crucial. The reason for this is that the matching generation
of power consumption mostly revolves around the markets. The domains associated with the
supply of energy comprise of the DER (Distributed Energy Resources) together with the Bulk
Generation domain. In the event of the DER, it is mostly found in Customer, Distribution, as
well as Transmission domains. The CIPs (critical infrastructure protection) efforts by the
NERC (North American Electric Reliability Corporation) regard Bulk Generation to be those
supplying over 300 megawatts. Various DERs are normally smaller, while aggregators are
the ones that serve them (NIST, 2010). DERs usually take part in markets presently to a
certain degree, while expectations reveal that their level of participation will increase with the
Smart Grid emerging increasingly interactive.



Figure 1: Markets Domain Overview
The communications that prevail during the interactions of markets domain need to be
dependable. They should be possible to trace as well as audit. Additionally, they should have
the capacity for supporting standards that the e-commerce sector follows to create room for
integrity together with non-repudiation (NIST, 2010). With the rising energy percentage that
the small DERs supply, the permitted communication potential should be minimized.
In the domain of the market, certain areas need to be accorded high priority. These
comprise of price additions as well as DER signals for the different sub-domains associated
with customers. It should also be possible to simplify the rules that the market while at the
same time focusing on means of broadening the capacities for aggregators. Interoperability
should be possible to institute across the diverse providers as well as those consuming
information concerning the market. Additionally, it is crucial to focus on administering
regulation as well as the growth that are prevailing in the area of energy wholesaling and
retailing (NIST, 2010). In addition, it is vital to lay considerable emphasis on the emerging
mechanisms in communication on matters related to prices and energy traits between as well
as in the entire customer and markets domain.
Operations Domain
The parties that operate in the operations domain play the role of making sure that the
power system operates in a smooth manner. Presently, a regulated utility is responsible for
handling a large number of these duties. With the advent of the Smart Grid, it will play a
critical role in making sure that outsourced service providers address a large number of the
services whereas others will continue to realize transformations over time (NIST, 2010).



Irrespective of the manner in which the markets domain, as well as the service providers,
transform, certain typical functions will still prevail, which will mostly be related to operating
and planning the points of delivering services of a ‘wires' organization.

Figure 2: Operations Domain Overview
On matters related to transmission activities, EMSs (Energy Management Systems)
will facilitate in the assessment as well as ensure that the power systems operate in an
efficient and reliable manner (NIST, 2010). In the case of the distribution systems, which
resemble the DMSs (Distribution Management Systems), they will assist in assessing as well
as ensure that the distribution systems continue to operate.
Service Provider Domain
Those operating in the service provider domain normally undertake services aimed at
backing the enterprise processes for those producing and...

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