A smart grid is an electrical distribution grid which allows for two-way communication between the utility and its customers, and often includes sensing along the transmission lines. With these sensing and communication measures, a smart grid will consist of controls, computers, automation, and new technologies to create greater energy efficiency amongst the distribution equipment.
A smart grid often also includes the integration of renewable energy sources. These renewable sources, along with a more decentralized energy supply and bidirectional power flows, can increase the efficiency and sustainability of the power distributed through the grids and reduce the effect of peak power times on the power infrastructure.
Graphic representation of the interactions on a smart grid through increased communication.
Smart grids offer:
- More efficient transmission of electricity
- Faster restoration of electricity after power disturbances
- Reduced operations and management costs for utilities and consumers
- Reduced peak demand
- Increased integration of renewable energy systems
- Integration of customer-owned power generation systems
- Improved security
