## 2 Definition and Motivation behind Building Smart Grid
Demand-side management can be established to curtail the system peak demand and to increase the network efficacy. * Ageing of the current electrical infrastructure: Energy losses occur during power transmission and distribution (T&D) are increasing due to the ageing of the present electrical infrastructure. In most advanced power system, the total losses in T&D is around 8% [2]. In India, the losses reach about 26%, which is considered the highest in the world [23]. * Increasing energy charge and electricity reliability concerns: The supply failures have caused huge economic and social losses, which stimulate efforts to enhance the system reliability. The phasor measurement units in SG provide real time monitoring of the power network [24]. Figure 1: The overall smart grid concept. It is capable of providing electrical power from multiple and widely distributed sources, such as from wind turbines, solar power systems, and plug-in hybrid electric vehicles. It uses digital automation technology for monitoring, control, and analysis through the supply chain [22]. * Greenhouse gas emission: Numerous countries have set the goal for gas emission reduction and power generation from renewable energy resources. SG implementation allows the integration of low or zero emission distributed generations near to the load center. * Deployment of renewable power generations and electric vehicles: The energy share of renewable sources in global electricity production was approximately 24.5% by the end of 2016 [25]. Moreover, electric power-based transportation is gradually increasing, where the energy consumption is expected to be about 10% of the total electric power by 2050 [26]. Thus, the existing grid network may face significant challenges in order to provide reliable and stable power supply. Therefore, the operation of the EV charging and the intermittent power generation units need to be tackled in order to avoid power failures. This problem can be effectively solved by implementing SG. * Economic development and business opportunities: SG implementation can result a significant savings by reducing the losses in the power network. This savings can be invested for other potential business in the country. Hence, the countries can provide competitive advantage for their economy [18]. Manufacturing of tools, equipment and instrumentations that supposed to be used in smart grid are good examples of business opportunities. Moreover, utility unbundling will increase energy trading. * Increasing distance between load centers and generation sites as well as the presence of large number of distributed power generations [27]. * Customers can receive better benefits if the information such as pricing, and control on their energy usage are easily available to them. The current grid is not able to provide such information to its customers. However, smart grid can offer consumers to monitor the energy price in real time and provides control to reduce their energy consumption bills [28]. Smart meters enable meter readings remotely and instantaneously leading to cost effective way and less time consuming [14]. In a word, SG system might be a key factor for improving controllability, integrating renewable energy into the grid system, and providing a solution to meet increasing electricity demand.