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Smart grid is often considered the first (and now
largest) example of the Internet of Things (IoT).
Jesse Berst
Founder & Chairman, Smart Cities Council

The Industrial IoT Enables a Smarter Grid
Implementing the Industrial IoT (Internet of Things) involves connecting myriads of mechanical and electrical systems—some of which have been in service for more than a century—to the Internet. To make this happen, new cloud-based services and analytics back-ends are needed. Devices making up the Industrial IoT usually have long product cycles, and are often required to operate reliably under extreme conditions and in harsh environments. For security reasons, HVAC, power control, and other industrial systems must be protected from unauthorized access to prevent damage due to malicious activity.

Industrial IoT Enables Smarter Meters
The smart grid operates in a manner similar to how an accountant manages a financial institution. You first count the money (that’s the meter), and then manage your finances (that’s the substation). The most important aspect of an efficient smart electricity grid is “Peak Load Management,” which refers to maintaining precise control of load management devices to offer superior demand response. Facilities that use distributed energy storage technologies to store clean, renewable energy created onsite can pump excess power back into the electric grid during off-peak periods.

Advanced Metering Infrastructure (AMI) is an electrical architecture that provides electrical grids with two-way communications for measurement, analysis, and optimization of energy usage down to the level of individual consumer devices. AMI allows end-user devices to communicate with local smart meters, which then communicate with the central power company and substations to allow grid coordination and adjustment by meter data management systems. AMI plays a fundamental role in smart grid features like demand response, distribution automation, and other facets of electrical grid optimization, and the Industrial IoT makes smart meters and the smart grid even smarter.
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