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The "Smart Grid Dictionary" (Hertzog, 2011) defines Smart Grid as follows:
A bi-directional electric and communication network that improves the reliability, security, and efficiency of the electric system for small- to large-scale generation, transmission, distribution, and storage. It includes software and hardware applications for dynamic, integrated, and interoperable optimization of electric system operations,maintenance, and planning; distributed energy resources interconnection and integration; and feedback and controls at the consumer level.


Smart Meters available around us today are one of the by-products of Smart Grids.
Conventional SmartGrid perception reflects power sector thinking, ignores enduse servicers, and energy system features like co-generation. A system's view on SmartGrid helps better to identify end-use oriented and cost-effective options. Policy makers and utilities must widen options for building smart energy infrastructure (easing addiction to power grids and smart gas pipelines) suggests Morten Boje Blarke, Assist. Prof., M.Sc. Eng. PhD. Sustainable Energy Planning.

At a basic level, a smarter grid means that a meter can offer consumers real-time information about electricity costs, which tend to soar at times of peak summer demand. But, says Elliott, "We'll start seeing the real benefits when we start putting smart meters on smart homes filled with smart appliances." R. Neal Elliott, director of research at ACEEE

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