Ingenieur Vol. 75 ingenieur July 2018-FA - Page 55

With Advanced/Smart Metering Infrastructure (AMI) and Time-of-Use (ToU) electricity pricing mechanism deployed at the distribution/consumer end, consumers can actually tailor and optimise their own usage/consumption. Consumers can also engage in demand response application as part of the demand-side management (DSM) market through the AMI infrastructure. Figure 6 illustrates the architecture of the AMI infrastructure as it might be deployed by a typical electricity utility company. Figure 7(a) and Figure 7(b) graphically show the transformation of the traditional electricity grid infrastructure/centralised fossil-fuelled generation to full smart grid realisation. The transformation is through the integration of large- scale solar photovoltaic power plants and BESS and distributed solar photovoltaic generation on consumers’ rooftops with deployment of AMI for smart charging of electric vehicles, ToU pricing and ancillary market services (such as frequency regulation, peak load shifting and demand response applications) and enhanced distribution management automation (DMA). Distribution management automation will include functions such as distribution network security assessment, loss optimisation, fault location-isolation- restoration and automatic feeder reconfiguration. Many utilities in US, UK/Europe and Australia have already deployed regulatory-driven smart grids in their electricity infrastructure. One of the challenges of smart grid deployment is that it is capital intensive. In UK, Italy and Australia, smart grid cost recovery is through minimum monthly rental fees, whereas in the US it is bundled into the electricity tariff. Malaysia is currently in the process of crafting the necessary regulations which will address a smart grid cost recovery mechanism and the roles and responsibility of the Regulator (Suruhanjaya Tenaga), the utility (TNB) and the customer. The other issues with smart grid deployment pertain to security of data and job threat to meter readers/ disconnectors. Key success factors to smart grid deployment in the Malaysian electricity infrastructure are: • clear regulatory framework; • funding mechanism (Government grant/ support and/or regulatory pass-through); • robust technology infrastructure and its interoperability with pilot project at initial stage of smart grid journey; and • effective customer engagement strategies. INTERNET OF THINGS Physical objects, such as infrastructure, plants, machineries, shipments, equipment and devices across the world are being equipped with network sensors and actuators that enable them to monitor their environment, report their status, receive instructions, and even take actions based on the information they receive. This is what is meant by the “Internet of Things” (IoT). It is growing rapidly and it is disruptive to traditional business enterprises. The IoT refers to the use of sensors, actuators, and data communications technology built into physical objects that enable those objects to be tracked, co-ordinated, or controlled across a data network or the Internet. There are three steps in IoT applications: capturing data/ information from the object, aggregating that information across a data network, and acting on that information – taking immediate action or collecting data over a period of time to design process improvements. According to the MGI Report [Ref. 1], the IoT has the potential to create an economic impact of US$2.7 trillion to US$6.2 trillion annually by 2025. Some of the most promising applications are in health care, manufacturing, electricity grids, urban water infrastructure and urban public transport systems. To capture the potential value of these applications, enterprises will need to have systems and capabilities to mine and analyse the Big Data that remote sensors can provide. In the article “Better Connected Enterprises”, Jarrett Potts, BEM The Ingenieur, Vol. 73, January- March 2018 [Ref.7], it notes that by 2018 there will be 22 billion IoT devices installed worldwide and by 2022 one million new devices will come online every hour. IoT devices and solutions have the potential to redefine competitive advantages in every type of business activity and fundamentally alter how consumers interact with business enterprises and how these enterprises interact with their supply chain suppliers and distribution partners. 53