Smart Grid

Definition: An electricity network that uses digital technology to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end-users.

Relevance to energy: Smart grids enable more efficient transmission of electricity, quicker restoration of electricity after power disturbances, reduced operations and management costs for utilities, and ultimately lower power costs for consumers.

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Benefits:

• Improved energy efficiency and reliability
• Better integration of renewable energy sources
• Enables demand response programs

Drawbacks:

• High implementation costs
• Cybersecurity concerns
• Requires consumer engagement for maximum benefit

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Statistics: The U.S. Department of Energy reports that smart grid technology helped to avoid 1.5 billion customer-minutes of power interruptions in 2019, saving $240 million in economic losses.