Opportunities and Challenges of Integrating Renewable Energy in Smart Grid System

Smart grid technology is the key for an efficient use of distributed energy resources. Noting the climate change becomes an important issue the whole world is currently facing, the ever increasing price of petroleum products and the reduction in cost of renewable energy power systems, opportunities for renewable energy systems to address electricity generation seems to be increasing. However, to achieve commercialization and widespread use, an efficient energy management strategy of system needs to be addressed. Recently, the concept of smart grid has been successfully applied to the electric power systems. This paper presents the study of integrating renewable energy in smart grid system. The introductory sections provide the role of renewable energy and distributed generation in smart grid system. Subsequent sections cover the concept of smart grid as well as benefits and barrier of smart grid renewable energy system. Pricing is a significant variable in success of renewable energy promotion. Thus, it is important to gain insight to renewable energy pricing by considering unique characteristics associated with renewable energy alternatives. A review of work done in renewable smart grid systems in recent years indicates the promising potential of such research characteristics in the future. This would be useful to developers and practitioners of renewable energy systems and to policy makers.