Transforming the aging electric grid to a smart grid is an active area of research in industry and the government. One of the main objectives of the smart grid is to improve the efficiency of power generation, transmission and distribution and also to improve the stability and the reliability of the grid. In order to achieve this, various processes involved in power generation, transmission, and distribution should be armed with advanced sensor technologies, computing, communication and networking capabilities to an unprecedented level. These high speed data transfer and computational abilities aid power system engineers to obtain wide area measurements, achieve better control of power system operations and improve the reliability of power supply and the efficiency of different power grid operations.

In the process of making the grid smarter, problems existing in traditional grid applications can be identified and solutions have to be developed to fix the identified issues. In this dissertation, two problems that aid power system engineers to meet the above mentioned smart grid's objective are researched. One problem is related to the distribution-side smart grid and the other one is a part of the transmission-side smart grid. Advanced Metering Infrastructure (AMI) is one of the important distribution-side smart grid applications. AMI is a technology where smart meters are installed at customer site which gives the utilities the ability to monitor and collect information related to the amount of electricity, water, and gas consumed by the user.

Many recent research studies suggested the use of 3G cellular CDMA2000 for AMI network as it provides an advanced and cost effective solution for smart grid communications. Taking into account both technical and non-technical factors such as extended lifetime, security, availability and control of the solution, Alliander, an electric utility in Netherlands deployed a private 3G CDMA2000 network for smart metering. Although 3G CDMA2000 satisfies the requirements of smart grid applications, an analysis on the use of the current state of the art 3G CDMA2000 for smart grid applications indicates that its usage results in high percentage of control overhead, high latency and high power consumption for data transfer. As a part of this dissertation, we proposed FLEX-MAC - a new Medium Access Control (MAC) protocol that reduces the latency and overhead in smart meter data collection when compared to 3G CDMA2000 MAC.

As mentioned above the second problem studied in this dissertation is related to the transmission-side grid. Power grid transmission and sub-transmission lines are generally protected by distance relays. After a thorough analysis of U.S. historical blackouts, North American Electric Reliability Council (NERC) has concluded that the hidden failure induced tripping of distance relays is responsible for 70% of the U.S. blackouts. As a part of this dissertation, agent based distance relaying protection scheme is proposed to improve the robustness of distance relays to hidden failures and thus reduce the probability of blackouts.

This dissertation has two major contributions. First, a hierarchically distributed non-intrusive Agent Aided Distance Relaying Protection Scheme (AADRPS) is proposed to improve the robustness of distance relays to hidden failures. The problem of adapting the proposed AADRPS to a larger power system network consisting of thousands of buses is modeled as an integer linear programming multiple facility location optimization problem. Distance relaying protection scheme is a real time system and has stringent timing requirements. Therefore, in order to verify if the proposed AADRPS meets the timing requirements or not and also to check for deadlocks, verification models based on UPPAAL real time model checker are provided in this dissertation. So, the entire framework consisting of AADRPS that aids in increasing the robustness of distance relays and reducing the possibility of blackouts, the multiple facility location optimization models and the UPPAAL real time model checker verification models form one of the major contributions of this dissertation.

The second contribution is related to the MAC layer of AMI networks. In this dissertation, FLEX-MAC - a novel and flexible MAC protocol is proposed to reduce the overhead and latency in smart meter data collection. The novelty of the FLEX-MAC lies in its ability to change the mode of operation based on the type of the data being collected in a smart meter network. FLEX-MAC employs Frame and Channel Reserved (FCR) MAC or Frame Reserved and Random Channel (FRRC) MAC for scheduled data collection. Power outage data in an AMI network is considered as a random data . In a densely populated area, during an outage, a large number of smart meters attempt to report the outage, which significantly increases the Random Access CHannel (RACH) load. In order to reduce the RACH traffic during an outage, this dissertation proposes a Time Hierarchical Scheme (THS). Also, in order to minimize the total time to collect the power outage data, a Backward Recursive Dynamic Programming (BRDP) approach is proposed to adapt the transmission rate of smart meters reporting an outage. Both the Optimal Transmission Rate Adaption and Time Hierarchical Scheme form the basis of OTRA-THS MAC which is employed by FLEX-MAC for random data collection. Additionally, in this work, Markov chain models are presented for evaluating the performance of FCR and FRRC MACs in terms of average throughput and delay. Also, another Markov model is presented to find the mean time to absorption or mean time to collect power outage data of OTRA-TH MAC during an outage.