A smart grid is an electrical grid that incorporates information and communication technologies (ICT), such as connected devices, to better match the supply and demand of electricity. It is a modernized grid that uses real-time data on electricity usage and consumption to inform all network participants, including producers, distributors, and consumers. The smart grid makes use of technologies such as advanced metering infrastructure, smart distribution boards, and circuit breakers integrated with state estimation, that improve fault detection and allow self-healing of the network without the intervention of technicians. The smart grid employs innovative products and services together with intelligent monitoring, control, communication, and self-healing technologies in order to ensure economically efficient, sustainable power systems with low losses and high levels of quality and security of supply and safety.

Some key features of a smart grid include:

• Two-way communication: The digital technology that allows for two-way communication between the utility and its customers, and the sensing along the transmission lines is what makes the grid smart.

• Distributed generation: By combining distributed generation resources, a community could keep its health center, police department, traffic lights, phone system, and grocery store operating during emergencies.

• Renewable energy integration: With a smart grid, it’s easier to harness the power produced by renewable energy sources during optimal conditions, store it effectively, and use it during periods of high demand or when renewable sources cant generate enough power. This optimizes the integration of renewable energy into the grid, minimizes waste, and promotes a more reliable and sustainable energy.

The smart grid is not just about utilities and technologies; it is also about giving consumers the information and tools they need to make choices about their energy use. The smart grid is a way to address an aging energy infrastructure that needs to be upgraded or replaced, and to address energy efficiency, to bring increased awareness to consumers about the connection between electricity use and the environment.