What Is a Smart Grid?

Traditional electrical grids are one-directional: power flows from large plants to consumers. A smart grid adds sensors, automated controls, and digital communication throughout the network. Smart meters send usage data to utilities, enabling time-of-use pricing and demand response. The grid can detect faults, reroute power around outages, and integrate distributed energy sources like rooftop solar and battery storage. The U.S. Department of Energy estimates a fully smart grid could reduce electricity use by 12% and carbon emissions by 30%.