Power utilities are raising their investment in smart grid sector because of the increasing demand for electric power, aging transmission and distribution infrastructure, and the requirement for real-time visibility of energy supply and demand to optimize service reliability and cost. The smart grid technologies, smart grid regulatory policies and tariff designs should be formulated in a reliable, efficient and innovative manner for the sustainable expansion of the smart grid globally. All the technologies provider and Electric Regulatory commission policy makers have to work hand in hand to realize this goal. Favorable regulatory policies and utility restructuring control the dynamics of electricity market will promote the smart grid and green energy technologies. Power sector innovative regulations and tariff designs are progressively getting more concerned with network users, both traditional and new, with the mutual aim to stimulating more active participation. Preferential transmission tariff to promote integration of renewable energy sources is also a practical need of the present power sector. In this paper, we are trying to review the critical components of smart grid technologies, preferential regulatory policies and smart grid related tariff designs which would assist in sustainable expansion of the smart grid globally.
Keywords: Smart grid, renewable energy, advanced metering infrastructure, demand response, transmission tariff, regulatory policies, distributed generation, cyber security
Jel Code: L94, Q40