A Smart Grid is an electrical grid which includes a variety of operation and energy measures including smart meters, smart appliances, renewable energy resources, and energy efficiency resources. It uses digital technology for two-way communication between the utility and its customers, as well as the sensing along the transmission lines, to respond digitally to quickly changing electric demand.
The term 'Smart Grid' became widely used in the 2000s, formalized by the Energy Independence and Security Act of 2007 in the USA. It evolved from attempts to modernize aging electrical infrastructure using information and communication technologies (ICT).
Smart grids are being implemented globally to integrate renewable energy sources, improve grid reliability (self-healing), and empower consumers to manage their energy usage. They are foundational for the adoption of electric vehicles and distributed energy resources.