Optimizing Operations in IoT-Enabled Smart Grid

The generation and delivery of electricity incur heavy losses, increasing operating costs, and have environmental implications. Globally, the power grid is embracing renewable energy and information technologies, especially the Internet of Things, to reduce carbon emissions and improve grid reliability. However, renewable energy ensues new challenges and increases the complexity of the grid processes. Optimization of power grid operation using opportunities espoused by IoT can significantly contribute to a power grid’s efficiency and reliability. In this chapter, we provide an insight into the salient components of a smart grid, especially the distribution system organized around microgrids and distributed generation. Next, we present some key optimization problems in smart grid operations, giving their formulation and solution approaches. This chapter then highlights the uses of IoT in the smart grid before presenting a case study in which IoT-enabled geo-distributed data centers participate in demand response by utilizing spatiotemporal price diversity in a smart grid to reduce power expenses, thereby increasing the profit.