Implementation of Smart Grid Systems

Implementation of Smart Grid Systems

“The electrical grid is not a single entity but an aggregate of multiple networks and multiple power generation enterprises run by multiple operators employing varying levels of communication and coordination, most of which is manually controlled” (Lin, Yang, & Shyua, 2013, p. 120). The essential role of smart grid systems is to automate and coordinate among suppliers, users and networks so as to attain the ultimate benefits for the stakeholders: utilities, individual consumers, and society in general. In order for communities to implement and utilize smart grid, the focus on energy policies should be emphasized in academic research to explore various characteristics of the smart grid in developing the economy, environment, and national security. Further, private enterprises are able to initiate and develop their own smart grid models. Nonetheless, it is difficult for stakeholders to involve in sustaining effective smart grid systems without the support of government policy (Lin, Yang, & Shyua, 2013).

Many researches on energy policies to implement smart grid have concentrated more on advancing the technological development of smart grid rather than policies that regulate incentives, and facilitate business competition and innovation in smart grids. The role of government policy in the trend toward smart grid development should be facing the challenges of an uncertain future regarding the evaluation of technology and society (Lin, Yang, & Shyua, 2013).

As aforementioned, China and the United States are the largest producers of carbon emissions, accounting for 37.56% of world carbon emissions; knowing that the two countries are the pioneers in producing electricity and greenhouse gases. Each country involved innovation policies to implement and develop the smart grid industry depending on each of their unique contexts. Researchers have described the types of policies governments shall use to encourage...