A smart grid is an electrical grid that incorporates information and communication technologies (ICT), such as connected devices, to monitor and manage the transport of electricity from power generation sources to consumers. The smart grid is designed to handle the groundswell of digital and computerized equipment and technology dependent on it, and to automate and manage the increasing complexity and needs of electricity in the 21st century.

Key features of a smart grid include:

• Advanced metering infrastructure: This refers to the use of smart meters, which are a generic name for any utility meter that can measure and record energy usage at more frequent intervals than traditional meters.

• Smart distribution boards and circuit breakers: These are integrated with the grid to improve fault detection and allow self-healing of the network without the intervention of technicians.

• Two-way communication: The smart grid introduces a two-way dialogue where electricity and information can flow between utilities and customers. This allows for real-time data on electricity usage and consumption to inform all network participants, including producers, distributors, and consumers.

• Sensors, wireless modules, and monitoring systems: These are key components of smart grid technology that facilitate the exchange of electricity and information between utilities and customers.

The smart grid is a way to address an aging energy infrastructure that needs to be upgraded or replaced, and to bring increased awareness to consumers about the connection between electricity use and the environment. It is also a way to address energy efficiency and provide a safety net, helping energy providers steer clear of potential system overheating.