## 2 Smart Grid Background
### Smart Grid Architecture and Conceptual Model  
Introducing smart grids can be considered one of the important innovations in the energy sector. This innovation is basically a result of a fine blend between the traditional physical power grid and ICT. Bidirectional smart devices, including smart meters, sensors, and actuators, are included in all domains of the smart grid system (from generation to the end user side). This makes it possible for the grid to deliver real-time control, monitoring, and an energy balance at high accuracy, granularity, and reliability, wherever and whenever needed [20]. According to the National Institute of Standard and Technology (NIST), a smart grid consists of seven domains. The bulk generation (including DERs), transmission, and distribution domains are responsible for controlling the flow of power, while the rest of the domains (service providers, markets, customers, and operations) are responsible for power management and data collection [21]. These domains can be elaborated as follows:  
* The generation domain contains power generation sources--such as nuclear plants and thermal and hydro generators--as well as distributed energy resources (DERs), which produce renewable energy like solar, wind, and tidal wave renewable energy installations. The generation domain's main role is to produce electricity, while it can also store it for later distribution. The generation assets are typically integrated into the smart grid to provide a dynamic response to demand and grid conditions. Key components include renewable energy sources, conventional power plants, decentralized power generation, and energy storage systems. * The transmission domain is responsible for carrying high-voltage power for long distances to hand it over to distribution facilities. In the distribution domain, the electricity is distributed to and from consumers. Transmission systems carry high-voltage electricity over long distances from power plants to substations. The substations step down the voltage to a lower level suitable for distribution. * The distribution system is responsible for delivering electricity from substations to consumers. It includes medium- and low-voltage lines, transformers, and distribution equipment. A smart grid allows for dynamic load balancing and fault detection, making the distribution system more resilient and responsive. The transmission and distribution networks are the conduits through which energy flows from power plants to end users. The smart grid enables two-way communication and data flow, allowing for the better monitoring, optimization, and control of these networks. Key elements include smart meters and sensors, advanced grid controllers, grid communication infrastructure, and voltage regulation and power flow control [22]. * The organizations that deliver electrical services to (and from) consumers constitute the service provider domain. * The customer domain is the end user of energy, who, in a smart grid, can also generate and store electricity through DER installations. The customer can be of the residential,industrial, or commercial type. Customers, both residential and industrial, are active participants in the smart grid. Through advanced technologies, consumers can engage in demand-side management, shifting energy use based on pricing signals or system needs. Key elements may include smart meters, home energy management systems (hems), demand response, and electric vehicles (EVs). * The markets domain contains the players and facilitators in the power markets and other economic systems that encourage action and improve the results of the power system. The market layer deals with the economic and regulatory aspects of the smart energy system. This might include real-time pricing, energy trading platforms, incentive programs, and regulatory oversight. * Finally, in order to manage the movement of electricity, the operations domain role is significant.