A smart grid uses digital technology to improve reliability, security, and efficiency (both economic and energy) of the electric system from large generation, through the delivery systems to electricity consumers and a growing number of distributed-generation and storage resources. The information networks that are transforming our economy in other areas are also being applied to applications for dynamic optimization of electric system operations, maintenance, and planning. Resources and services that were separately managed are now being integrated and rebounded as we address traditional prob

A smart grid uses digital technology to improve reliability, security, and efficiency (both economic and energy) of the electric system from large generation, through the delivery systems to electricity consumers and a growing number of distributed-generation and storage resources. The information networks that are transforming our economy in other areas are also being applied to applications for dynamic optimization of electric system operations, maintenance, and planning. Resources and services that were separately managed are now being integrated and rebounded as we address traditional problems in new ways, adapt the system to tackle new challenges, and discover new benefits that have transformational potential.

The smart grid ensures a system that is sustainable and gives good quality of electric supply with low losses. The products deployed for smart grid are innovative and intelligent products having smart monitoring, communication, control and smart grid technology which helps self-healing.

The characteristics of a smart grid are as follows:

• Use of advanced technology and digitalisation:  With the growth of digitalisation, there is a need to update the electric grid with smart controls and digital information. This will not just keep the system updated with the recent technologies but more importantly helps to improve reliability, security and efficiency of the electric grid.
   
• Integration of distributed resources: The distributed resources and renewable resources are integrated and deployed according to the requirements for generating the supply.
   
• Using energy efficiently:  Development and incorporation of demand response by reducing or shifting energy consumption from peak hours of the day, when the demand for electricity is the greatest to leaner demand periods, also the demand-side resources, and energy-efficiency resources.
   
• Deployment of 'smart' technologies: There is a deployment of smart technologies like automated, interactive technologies real-time that optimize the physical operation of appliances and consumer devices for, communications concerning grid operations and status, metering and distribution automation.
   
• Integration of 'smart' appliances:  Integration of smart appliances like refrigerators, freezers, dishwashers, ovens, stoves, electric storage heating systems washing machines and tumble dryers as well as air conditioners, circulation pumps for heating systems, and water heaters for smart electric system.
   
• Advanced electricity storage and peak-shaving technologies: Integration of the advanced electricity storage system to fulfil the requirement of smart devices and systems are deployed.
   
• Provides Power Quality for the Range of Needs: There are different power requirements depending upon whether it is an enterprise or household or some other. Examples of power quality (PQ) issues include voltage sag, flicker, and momentary interrupts. Some customers have critical computer systems and complex processes that require high PQ, while others, such as most residential customers would not appreciate paying for better PQ, Smart grid solves the problem.
   
• Fault detection and self-healing: Fault detection and self-healing of the network without any need of the technicians are some of the advanced technologies of the smart grid. This solves many problems related to electricity and ensure reliable electric supply to houses and companies on a large scale. It reduces the risk of power failures or natural disasters or threat of any attack.
   
• Managing Supply and Demand: Measures such as turning off or adjusting water heaters, dishwashers, and heating and cooling systems, result in load shifting and reduced costs through the smoothing of peak power consumption throughout the day. With appropriate metering capability in place, dynamic pricing signals received by customers can encourage greater demand response.
   
• Enables Informed Participation by Customers: Consumers become an integral part of the electric power system. Customers ensures reliability of the smart grid by customizing it the way they want to before using it which encourages different patterns of purchase and modified versions of the smart grid.  These choices involve new technologies, new information about their electricity use, and new forms of electricity pricing and incentives
   
• Enables New Products, Services, and Markets: Markets that are correctly designed and operated can efficiently reveal benefit-cost trade-offs to consumers by creating an opportunity for competing services to bid. A smart grid accounts for all of the fundamental dynamics of the value/cost relationship.
   
• Customer control: There is a system where the consumers can get timely information and updates in real time. They can also control the system as per their wish up to some extent.
   
• Communication and interoperability of appliances: There has to be certain communication and interoperability among the appliances which is achieved through deployment of communication standards and interoperability of appliances connected to the electric grid, including the infrastructure serving the grid.
   
• Facing the barriers: The unreasonable or unnecessary barriers are Identified and lowered to adoption of smart grid technologies, practices, and services.

 A smart Grid is been built with innovative and intelligent products and services in order to:

• Provide better facilities such as connection of the generator, operations of the generators irrespective of their sizes or the technology used.

• Encouraging the customers to customize the operation of the system.

• Educate the customers about the system with information like using the supply, control the supply and many more.

• Reduce the harmful effects on the environment because of the electric supply system

• Update the existing services with the improvements in technology and maintain their high levels of system reliability, quality and security of supply.

• Update the existing services with the improvements in technology and maintain their efficiency.

Challenges coming our way:

Challenge facing a smart grid is the uncertainty of the path that its development will take over time with changing technology, changing energy mixes, and changing energy policy. Trying to legislate or regulate the development of a smart grid or its related technologies can severely diminish the benefits of the virtual, flexible, and transparent energy market it strives to provide. Thus, the challenge of development becomes an issue of providing flexible regulation that leverages desired and developing technology through goal-directed and business-case-supported policy that promotes a positive economic outcome.

Another significant technical consideration is the impact of high levels of new technology penetration on existing grid infrastructure. Implementing new improvements into the grid, including smart-grid technologies, is pivotal to increasing efficient operations, as the operating efficiency gains from familiar technologies have begun to plateau. In addition, a survey recently ranked the number one challenge to grid reliability as “aging infrastructure and limited new construction.”