Poor reliability is a huge economic disadvantage
The annual cost of poor reliability for the US electrical system has been estimated to be $80 billion (Berkley National Lab 2005). The majority of this cost comes from short but frequent disturbances that most affect commercial and industrial consumers.
To improve the reliability of the electrical system, very large-scale monitoring systems will be required. Wide area monitoring systems ( and supervisory control and data acquisition systems (SCADA) can provide detailed, real-time information on the conditions in the grid.
To ensure the maximum flow of electricity through transmission lines, flexible alternating current transmission systems (FACTS) must be active. High voltage direct current (HVDC) connections will be required to stabilize large grids or to connect grids running at different frequencies.
Automation of substations, the nodes of a transmission system, has to be further developed and, last but not least, high performance devices like power transformers must operate without failures.
Until now transmission systems have been the focus of technical improvements. Distribution systems still are still waiting for extended automation technologies that will upgrade their performance and enhance their reliability.
To minimize problems with reliability and the economic disadvantages, they bring, the future electrical system must deliver top performance at every point in the chain from power generation to the individual consumer.