
- 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
Smart Grid - Cloud Computing
Cloud computing is a data storage and processing technique in which the data and programs are stored and used over the internet instead of using computers local storage device. In cloud computing, the term "cloud" represents the Internet.
In this chapter, we will learn about cloud computing in the context of smart grid, its major services and role in smart grid technology.
What is Cloud Computing?
Cloud computing is a modern computing technology developed to deliver services like data storage, processing, etc. over the internet (or cloud). The greatest advantage of this computing technology is that it does not require any local hardware or infrastructure to provide these services, instead it provides on-demand access to required resources and services through internet.
Cloud computing is a flexible, easy to scale, and cost-effective computing technology for data storage and processing. It can be considered as a large virtual network which consists of a collection of interconnected networks using the internet protocols and allows machines to machine communication.

Characteristics of Cloud Computing
The important characteristics of cloud computing are listed below −
- It offers on-demand access to computing resources and services.
- It provides a large number of services available across the network.
- Cloud computing can provide same service to multiple users simultaneously by using a multi-tenant model in which the resources and the service are assigned to the user according to demand.
- In cloud computing, the resource utilization can be easily monitored and controlled. This provides transparency between both service provider and the user.
Cloud Computing Service Models
Cloud computing offers the following three types of service models −
- Software as a Service (SaaS)
- Platform as a Service (PaaS)
- Infrastructure as a Service (IaaS)
Let us discuss about each type of cloud computing service model in detail with its benefits.
Software as a Service (SaaS)
In this cloud computing model, software or applications are hosted by a cloud service provider and made accessible to users through internet. It is basically an online software distribution model.
In SaaS, the software applications are stored in a cloud storage, so there is no need of installing or maintaining by the end user. Instead, the maintenance is seen by the service provider. However, the end users of the software have to pay per usage basis to the service provider.
Examples of SaaS are Google sheets, Gmail, Microsoft office 365, and more.
Advantages of SaaS
The following are some key benefits of cloud computings software as a service model −
- It eliminates the need for cost required for purchasing and installing the software.
- Any software can be accessed on any device from any location, just through an internet connection.
- Users can access wide range of services as needed without need of any additional purchase and installation of software.
- Software available through SaaS kept up to date by the service providers.
Platform as a Service (PaaS)
Platform as a Service (PaaS) is another cloud computing model designed to provide development environment for developers to build, deploy, and manage software or applications. This cloud computing model eliminates the need for building individual environments, tools, libraries, etc. required for application development.
Google app engine, adobe commerce, etc. are examples of platform as a service model.
Advantages of PaaS
The key benefits of platform as a service model are highlighted below −
- It reduces the complexities in application development by providing a pre-configured development environment.
- It eliminates the need for purchasing and maintenance of high-performance hardware and software and thus results in reduced overall cost.
- Since it is a completely remote and virtual service model, thus it allows multiple developers to collaborate together.
- It supports almost all the latest programming languages and frameworks. Thus, it offers flexibility in development process.
Infrastructure as a Service (IaaS)
This cloud computing model provides the essential hardware, networking, and storage infrastructure to end users over the internet. This model allows user to run their operating systems and applications on a virtual machine. Services provided in IaaS model include hardware level facilities, network connectivity, firewalls, etc.
IaaS provides virtualized computing resources over the internet. It offers fundamental computing resources such as virtual machines, storage, and networks, allowing users to run their applications and operating systems.
Common examples of IaaS are Google drive, cisco meta cloud, Rackspace, etc.
Advantages of IaaS
The following are some main benefits of infrastructure as a service model −
- It can be easily scaled depending on the resource demand.
- It eliminates the need of cost involved in developing physical infrastructure.
- It provides users with highly customizable facilities in terms of operating systems, storage, and networking.
- It offers enhanced backup and recovery services in case of failure.
Role of Cloud Computing in Smart Grids
From the basics, we know that smart grid is an advanced electric grid that makes use of digital communication technologies for monitoring, controlling, and managing the energy usage and system resources. Cloud computing plays an important role in all these functions of smart grid, as it improves the efficiency, capability, and reliability of the smart grid.
The following points describe the major functions and needs of cloud computing in smart grids −
- Smart grid generates a huge volume of data from different devices like smart meters, sensors, control and monitoring systems, etc. For analyzing and processing this large volume of data, the smart grids are provided with cloud computing.
- Could computing provides real-time analysis capabilities to determine energy usage patterns, evaluate grid performance, and optimize the operations of grid.
- Since the smart grids are expanding with the increasing demand of electricity. Therefore, cloud computing provides an easily scalable infrastructure that can be easily expanded as needed.
- Through advanced security techniques like robust protocols, encryption, authentication, etc. the cloud computing reduces the security risks in the smart grid.
- As a smart grid requires a highly efficient and modern technological infrastructure for its efficient and reliable operation which is a highly cost intensive thing. Therefore, cloud computing reduces this capital cost by providing the pay-as-you-go model for cloud services. Hence, utility companies do not need to invest in developing this infrastructure.
Cloud Computing-Based Smartphone Apps for Smart Grid
Today, cloud computing is integrated with the smartphone technology to develop cloud computing-based smartphone apps. These apps help users to monitor their usage, participate in demand response programs, etc.
Also, there are several smartphone apps for utilities and grid operators that help them monitoring and managing the grid from any location.
Challenges of Cloud Computing in Smart Grids
Apart from its importance and advantages, cloud computing also has several challenges in smart girds, which are as follows −
- Data privacy and security is on of the major challenge in smart grid cloud computing. The cloud computing service providers need to implement robust protocols to secure consumers data from cyber threats and data breaches.
- Energy industry is regulated by several laws and stands to protect data, provide security, and ensure reliable operations. Hence, cloud computing when used in smart grids must comply with all these energy regulations.
- Smart grid uses real-time data communication and processing to operate reliably. If there is any delay or breakdown in the cloud computing services, it can affect the operation of entire smart grid and can lead inefficiencies.
- Smart grids avail cloud computing services from different service providers. Sometimes, there could be compatibility and interoperability related issues between different services. Hence, the integration of cloud computing in smart grid requires standardization of these services.
Conclusion
Cloud computing is a method of storing and providing data along with software or services over the internet. In smart grids, cloud computing provides several benefits like cost reduction, remote monitoring, smartphone-based monitoring and control of grids, etc.