The Smart Grid is the modernization of the electricity delivery system. A smart grid differs from the traditional grid in that it allows two-way communication of electricity data, rather than a one way flow. Smart grids enable real time data collection concerning electricity supply and demand during the transmission and distribution process, making monitoring, generation, consumption and maintenance more efficient.
Most electricity grids are based on one-way interaction from the stages of generation to consumption. Smart grids, on the other hand, integrate the action of all users in the power network using computer-based remote control and automation. This two-way interaction is what makes the grid “smart". Like the internet, the Smart Grid consists of controls, computers, automation, telecommunication and equipment that work together, but in this case, these technologies work with the electrical grid to respond digitally to our quickly changing electric demand.
Modernization with IET Smart Grid and associated publications.