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NEPRAs annual report is just a crude reminder of the inefficiencies that continue to plague the power sector of the country, part of which is the shaky and outdated power grid infrastructure. The priorities need to be set straight; government seems to be focusing on increasing generation capacity, but it shouldn't be forgotten that it is the transmission network that cannot take load beyond 15000-20000MW and distribution system that is incurring technical losses in the range of 20 to 30 percent.
A quick glance at a recent World Bank study - Practical Guidance for Defining a Smart Grid Modernization Strategy - suggests that majority part of the solution lies in automation and smart grid technology. In simple words, the power distribution and transmission systems need to be updated regularly, and one aspect automating and modernising the power grid system is through smart grids.
There is no single definition of smart grid technology, and the study claims that necessary updates encompass grid modernization using conventional infrastructure as well as advanced digital information and telecommunication technologies, which will enable the delivery of electricity in a more efficient, reliable, and sustainable manner.
Smart grids incorporate technology that digitizes the conventional grid to enable digital communication among grid components. Where conventional grid system would require manual meter reading, voltage measuring and data gathering, smart grid has integrated sensors that carries and communicates data from a central point in real time automatically.
Fortunately, the concept of smart grid as explained by study is relevant to any grid regardless of its stage of development. What differs is the goal a certain power sector aims to achieve. Automation has begun at the meter and feeder level in Pakistan, which should set the foundation for smart grid technology.
The benefits for a developing country highlighted in the WB study include improved operational efficiency (like reduced losses and lower energy consumption), reduced power demand during peak load periods, and improved service reliability. Takeaways specifically for electric distribution utilities like those in Pakistan that are not even in the rudimentary process of grid modernization consist of benefits like lowering the voltage set point on an existing electromechanical voltage regulator that will reduce power demand and improve the overall efficiency of the distribution system.
The illustration from the study shows how smart grid technology impacts the power sector holistically. What are the benefits of smart grid system for the distribution sector, and its funding and regulatory requirements, BR Research will keep its readers update.

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