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Each and every entity of smart grid is to be controlled and connected with the data communication networks.The emergency electricity routing requests can be submitted through the broadband connections.These power plants are based on the centralized approach.These power plants are usually located far away from the residential zones due to the danger of hazards.Electricity theft, authentication, authorization, trust ranking, distributed denial of service attack, man in the middle attack are the real challenges for smart grid.Cyber Security should ensure security for smart grid system with appropriate levels of trust, privacy and security.Consumer centric approach is introduced with the smart grid that ensures the small scale power generation power plants to be located close to the consumers.Smart grid also ensures reduction in greenhouse gases with major usage of renewable energy sources.
Smart Grid has come up with the combination of the renewable energy sources like solar and wind energy with the conventional non-renewable energy sources such as coal, oil, gas, nuclear and hydro power generation plants.Aging equipments and manual meter reading, power line failure detection and power quality measurements result in lot of power losses and delays.Smart Grid assures modern, computerized and automated electricity power generation, distribution and management.For power transmission lines, there is least priority for the special requests made on telephone because it is difficult for the traditional electricity system to reroute the power to other territorial zones.
On the distribution front, the present power grid has very much limited monitoring and control resources because of manual operations.
Also, it involves manual meter readings which have lot of system flaws.