smart grid

A smart grid delivers electricity from suppliers to consumers using digital technology in order to save energy, reduce cost and increase reliability and transparency. Such a modernized electricity network is seen by many governments as a way of addressing energy independence, global warming and emergency resilience issues.

In principle, the smart grid is a simple upgrade of 20th century power grids which generally "broadcast" power from a few central generators to a large number of users, to instead be capable of routing power in more optimal ways to respond to a very wide range of conditions.

A "smart grid" is an umbrella term that covers modernization of both the transmission and distribution grids. Building the smart grid means adding computer and communications technology to the existing electricity grid. With an overlay of digital technology, the grid promises to operate more efficiently and reliably, and it can also accommodate more solar and wind power.