Abstract
The power grid is the infrastructure that transports electricity from where it is generated to the consumer. Traditionally, the grid follows a top-down model where electricity is generated in bulk centralized units, then stepped up using a power transformer and a transmission substation. Then, through a distribution substation and power transmission lines, the power reaches the consumer in a one-way flow with no feedback from the consumer side. The concept of “smart grids” was introduced as a solution to the increased grid complexity and energy demand. Although there is not an agreed-upon definition for what is a smart grid, there is a common understanding of the smart grid's basic functions. This chapter provides an overview about what a smart grid is, its basic components, technologies used, expectations of smart grids, challenges faced, and possible solutions.
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