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Smart grid

(also smart electric grid, smart energy system)

Smart grid definition

The term “smart grid” refers to a system of transformers, substations, and other electrical devices, combined with advanced technology to monitor and control the energy supply chain. A smart grid enables two-way communication between the customer and the electricity supplier, making it possible to quickly detect and isolate outages and provide emergency services with electricity by rerouting the supply.

Benefits of smart grids

  • Efficient electricity transmission between parties.
  • Ability to reroute electricity supply in case of failure.
  • Users are able to monitor electricity consumption in real time, thanks to meters and monitors.
  • Customers and suppliers can easily communicate and analyze traffic.
  • Enables the integration of customer-owned power generators, like solar panels.

Disadvantages of smart grids

  • High implementation costs. The advanced technology needed to implement a smart grid is expensive, and the process is time-consuming.
  • Possible privacy concerns. Some people might say that allowing corporations and governments to track electricity consumption could lead to some privacy violations.