Review of Smart Grid and Nascent Energy Policies: Pakistan as a Case Study

Abstract

Smart grid plays a vital role in energy management systems. It helps to mitigate the demand side management of electricity by managing the microgrid. In the modern era, the concept of hybrid microgrids emerged which helps the smart grid management of electricity. Additionally, the Internet of Things (IoT) technology is used to integrate the hybrid microgrid. Thus, various policies and topologies are employed to perform the task meticulously. Pakistan being an energy deficient country has recently introduced some new policies such as Energy Wheeling Policy (EWP), Energy Import Policy (EIP), and Net Metering/Distributed Generation Policy (NMP) to manage the electricity demand effectively. In addition, the Energy Efficiency and Conservation Act (EECA) has also been introduced. In this paper, we present the overview and impact of these policies in the context of the local energy market and modern information and communication mechanisms proposed for smart grids. These new policies primarily focus on energy demand–supply for various types of consumers such as the demand for bulk energy for industrial ventures and the distributed production by consumers. The EWP deals with obtaining power from remote areas within the country to ease the energy situation in populated load centers and the EIP highlights energy import guidelines from foreign countries. The NMP deals with the integration of renewable energy resources and EECA is more focused on the measures and standardization for energy efficiency and conservation. The benefits and challenges related to EWP, NMP, and EIP have also been discussed concerning the present energy crisis in Pakistan. The generalized lessons learned and comparison of a few aspects of these policies with some other countries are also presented.