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Smart Grid

A modernized electricity grid using digital technology to improve reliability, security, and efficiency.

Definition in an Act

Source: 1 (p294)

It is the policy of the United States to support the modernization of the Nation’s electricity transmission and distribution system to maintain a reliable and secure electricity infrastructure that can meet future demand growth and to achieve each of the following, which together characterize a Smart Grid:

(1) Increased use of digital information and controls technology to improve reliability, security, and efficiency of the electric grid.

(2) Dynamic optimization of grid operations and resources, with full cyber-security.

(3) Deployment and integration of distributed resources and generation, including renewable resources.

(4) Development and incorporation of demand response, demand-side resources, and energy-efficiency resources.

(5) Deployment of ‘‘smart’’ technologies (real-time, automated, interactive technologies that optimize the physical operation of appliances and consumer devices) for metering, communications concerning grid operations and status, and distribution automation.

(6) Integration of ‘‘smart’’ appliances and consumer devices.

(7) Deployment and integration of advanced electricity storage and peak-shaving technologies, including plug-in electric and hybrid electric vehicles, and thermal-storage air conditioning.

(8) Provision to consumers of timely information and control options.

(9) Development of standards for communication and interoperability of appliances and equipment connected to the electric grid, including the infrastructure serving the grid.

(10) Identification and lowering of unreasonable or unnecessary barriers to adoption of smart grid technologies, practices, and services.

Definition first being documented

Source: 2

The term “smart grid” emerged in public technical documents at the end of 1997 and was pioneered among other individuals by Dr. M. Amin, while he was at Electric Power Research Institute (EPRI), USA. This vision encompassed the integration of sensing, communication, control, automation, and cybersecurity across the entire energy system—from fuel source and generation to transmission, distribution, and end-use. The initiative developed several enabling technologies, including fast look-ahead modeling and simulation, self-healing networks, wide-area situational awareness with actionable intelligence via phasor measurement units (PMUs), fast state and topology estimation, reinforcement learning, and adaptive, automated control systems based on AI. These breakthroughs aimed to transform the grid from a reactive system into a predictive adaptive infrastructure.

Definition by the European Union

Source: 3

Smart grids are energy networks that can automatically monitor energy flows and adjust to changes in energy supply and demand accordingly.

Last modified: 2025-12-02

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  1. (2007). Energy Independence and Security Act of 2007. https://www.congress.gov/110/plaws/publ140/PLAW-110publ140.pdf ↩

  2. Malik, Om and Liu, Jay and Simões, Marcelo and Dent, Chris and Strunz, Kai and Wischkaemper, Jeffrey and Miranda, Vladimiro and Gaunt, Charles and Bollen, Math and Kezunovic, Mladen and Kirschen, Daniel and Gomez-Exposito, Antonio and Cañizares, Claudio and Podmore, Robin and Kirkham, Harold and Moutis, Panagiotis and Bose, Anjan and Hiskens, Ian and Preston, Gene and Li, Canbing and Dharmawardena, Hasala and Kasztenny, Bogdan and von Meier, Alexandra and Tesfatsion, Leigh and Ribeiro, Paulo (2025). Smart Grid Origins, Definitions, Technologies, and Emerging Trends: A Power Community Perspective. https://doi.org/10.35833/MPCE.2025.000807 ↩

  3. (2025). Smart grids and meters. https://energy.ec.europa.eu/topics/markets-and-consumers/smart-grids-and-meters_en ↩