2.5.1. Two-Way Communications

A smart grid establishes a communications channel between consumers and service providers. A consumer can request peak and off-peak hours tariff rates to schedule the electricity usage appropriately. The SP can also obtain a future consumption forecast and can therefore control the energy production [35].

### 2.5.2. Renewable Energy Resources

With renewable energy resources an individual home can generate its own energy using mostly solar panels, but also with windmills or biogas. A consumer uses part of the energy for their own purpose and can feed the extra energy into the national grid. Hence, a consumer can also participate in the national grid and play a useful role for the national cause [36].

### 2.5.3. Energy Generation and Storage

With the invention of energy renewable resources such as solar, biogas, wind, and electricity storage sources such as electrical vehicles, smart transformers, and appliances, many home users generate electricity using photovoltaic panels for their daily use and sell extra electricity to the national power grid [35]. In each area, every application of SG is based on necessities such as voltage support, power quality, and service reliability [36]. However,

smart grids have a serious issue with generating and storing electricity and, similarly, with the evaluation of the distribution system and integration of the evaluated grid components. Currently, gas and diesel generators, tides, and solar and wind are conventional energy generation resources, which provide power whenever natural resources are not available. The authors of [37] proposed optimization techniques for domestic users to control the operations in a HAN. Similarly, in [38], the integer-programming model is presented for electricity storage based on electric vehicles and photovoltaic panels.
