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Smart grid technology enables suppliers & consumers to better monitor energy needs. Up until now, utility companies have had very little insight into the energy demands of their consumers and therefore they have not been prepared for peak energy consumption, which results in blackouts.
Smart grid is a two-way communication between the consumer & supplier providing “smarter” energy supply. In some cases, it allows utility companies to control appliances at consumers’ homes, and to empower consumers to control their electricity consumption. This could save energy, reduce costs and increase reliability.
It is envisioned to overlay the ordinary electrical grid with an information and net metering system that includes smart meters. This technology is being promoted as a way of addressing energy independence, climate change and emergency resilience issues.