
- Smart Grid - Home
- Smart Grid Introduction
- What is an Electric Grid?
- Electric Grid Evolution
- What is a Smart Grid?
- Smart Grid - Functions
- Smart Grid - Characteristics
- Smart Grid - Advantages
- Smart Grid - Components
- Smart Grid - Challenges
- Smart Grid Technologies
- Smart Energy Resources
- Power System Automation
- Smart Substations
- Substation Automation
- Smart Grid - Feeder Automation
- Energy Management System
- Smart Grid - FACTS
- HVDC Transmission
- Wide Area Monitoring
- SCADA in Smart Grid
- Smart Grid - DMS
- Smart Grid - OMS
- Volt/VAR Control
- Smart Grid - FMSR
- Smart Grid - HEDT
- Phase Shifting Transformers
- Smart Grid - PHEV
- Advanced Metering Infrastructure
- Smart Meters - Introduction
- Smart Meters - AMI
- Smart Meters - AMIS
- Communication Architecture
- Drivers & Benefits
- Phasor Measurement Unit
- Intelligent Electronic Devices
- Power Quality Management
- Power Quality in Smart Grid
- Power Quality Issues
- Power Quality Monitoring Techniques
- Power Quality Conditioners
- Electromagnetic Compatibility (EMC)
- Power Quality Audit
- Smart Grid Communication
- Smart Grid Communication
- Communication Network
- Communication Technologies
- Broadband Over Power Line
- Internet Protocols
- Web Services in Smart Grid
- Cloud Computing
- Multi Agent System Technology
- IP Based Protocols
- Cyber Security
Energy Management System
The increasing demand of electrical energy introducing several challenges in managing the power system and energy flow efficiently and reliably. This issue developed the need for an energy management system that can integrate advanced control and communication technologies to optimize the energy flow and utilization in the power system.
Energy management system is an important component of a smart grid that enhances the reliability and efficiency of the grid and allows for the seamless integration of distributed energy resources.
In this chapter, we will discuss the definition, components, benefits of energy management system in smart grid technology.
Defining Energy Management System
In smart grids, the energy management system or EMS is a software-based system used for monitoring, controlling, and optimizing the generation, flow, and utilization of electrical energy in the electric grid. It enables the utility companies to manage their energy resources and meet the supply demand without putting extra strain on the grid.
Since EMS provides an effective way of integrating and managing the renewable energy resources and hence, it results in the reduced environmental impacts and cost of energy.
The layout of a typical energy management system in smart grid is depicted in the following figure −

Components of Energy Management System
The energy management system (EMS) consists of the following major components −
Data Acquisition and Supervisory System
This system consists of smart sensors, smart meters, and digital communication networks. The sensors and meters monitor the generation and consumption of electricity and collect the related data. This data is then transmitted to a central control system for analysis by using the digital communication networks.
Advanced Control System
It consists of SCADA (Supervisory Control and Data Acquisition) system and DERMS (Distributed Energy Resources Management System). The primary function the advanced control system in the energy management system is to monitor the generation and consumption of electricity in real-time and control the operation of different energy resources connected into the grid.
Energy Management Software
It is one of the key components of energy management system. It is used for analyzing the data, forecast the energy demand, and optimize the generation accordingly.
Control Center
It is the interface that the generating station operators use for monitoring the grid and perform the necessary actions.
These are some key components of the energy management system in smart grid technology.
Functions of Energy Management System
In smart grids, the energy management system is mainly used for effective management of energy generation and utilization. However, this system performs the following key functions −
- Manage the energy resources and distributed energy sources connected into the grid.
- Forecast the future energy demand depending on the past grid data.
- Schedule the energy generation to meet the electricity demand.
- Identify the peak demand periods and reduce the load during these periods.
- Management of variable output and intermittent nature of renewable energy resources.
- Provide a coordination among conventional generating stations, distribution generating stations, and energy storage systems to balance the supply and demand.
- Improves the energy efficiency by analyzing the consumption patterns and optimizing the energy utilization.
Advantages of Energy Management System
EMS offers the following major advantages in smart grids −
- It improves the reliability of the electric grid through balancing the generation and consumption of electricity.
- It reduces the waste of electricity and lowers the energy cost with enhanced efficiency.
- EMS helps the utility companies to better manage their energy resources and power demand.
- It reduces the complexities coming in the integration of renewable energy resources due to their intermittent nature. Hence, it helps in minimizing the impacts on the environment.
Challenges Associated with Energy Management System
EMS offers several benefits in smart grids, however it also faces numerous challenges which are highlighted here −
- Energy management system deals with large volumes of data related to generation and consumption of electricity. Thus, it requires advanced hardware and software technologies for analysis and management.
- Since, the energy management system involves the use of digital communication networks. Hence, this system is vulnerable to cyber threats and so requires protection against them.
- Different devices from different manufacturers are used in the implementation of the energy management system. These devices may have issues in terms of compatibility and communication, and thus require standardization.
- There are also some regulatory and policy issues in the implementation of energy management system and related technologies.
Why Energy Management System is Important in Smart Grids?
The development and deployment of smart grid in the energy sector is promising and crucial for meeting the increasing demand of electricity with reduced cost of energy. This is only possible through effective management of energy from generation to consumption. For this purpose, a dedicated system has to be used which is termed as energy management system or EMS in short.
The EMS system is used in smart grid for energy demand forecasting, managing the energy resources, and reduce the losses during generation, transmission, and utilization. Therefore, the energy management system is an essential component of smart grid technology.
Conclusion
The energy management system is a system of components employed for real-time monitoring and effective management of energy resources in the electric grid. The EMS improves the reliability, efficiency, and sustainability of energy generation and utilization through reduced energy losses and integration of renewable energy resources and energy storage system into the grid.
In the next chapter, we will explain Smart Transmission Technologies like HVDC, FACTS, etc.