A System-Based Framework for Optimal Sensor Placement in Smart Grids

The number of sensors deployed in power systems unlocks the promising benefits and capabilities of digitalisation. Sensor-driven applications and communication technologies, which are the backbone of smart grids, present an unprecedented opportunity to improve grid observability and enable the integration of renewable energy sources cost-effectively. Observability is dependent on optimal sensor placement (OSP), which also relies on economic and technical constraints. To achieve observability optimally, past sensor placement studies have applied optimisation methods in power systems. However, these often neglect the broader and interdisciplinary scope in which sensor placement is included, as well as the interoperability between the phases of the OSP workflow. Therefore, there is a need to evaluate sensor placement from a system-based perspective and to structure the placement process into workflow categories, describing their interdependencies. This is to assess the technical, economic, business, social, and environmental factors affecting sensor placement and their impact on decision-making and the performance of digital applications using the collected data. Thus, this discussion paper proposes a system-based sensor placement framework addressing the main challenges, performance metrics, and the value of information for continuous sensor placement.