The term "smart" is being overused, and undefined in the industry. There are manys try to define the Smart Grid, but they mistakenly describe it as a long list of applications.
Indeed, Smart Grid is a new type of electricity network to replace the aging grid. It utilizes digital technology to archieve the following benefits: Enable grid connection of on-site generation power (i.e.: solar power, wind turbine, micro hydro and etc.); Reduce power consumption during peak hours; Incorporates grid energy for load balancing; Eliminate widespread power grid cascading failures.
In other words, with smart grid, energy usage is more intelligent than ever. Not only we can manage electricity more efficiently, but also save money by using energy at off-peak hours, and evenly distribute alternative energy from one part of the country to another. On the other hand, you can store electricity and sell it at peak hours to earn extra incomes.
However, we have to keep in mind that the industry needs now is a new electric architecture, which goes well beyond a list of standards, policies, and recommended practices.
In Canada BC, our government is working with BChydro to achieve the goals that are written in the Energy Plan:
Achieving electricity self-sufficiency by 2016
Offsetting 50% of new electricity needs through conservation by 2020
The vision of the Smart Metering & Infrastructure (SMI) Program is to take the first, fundamental step in educating and making customers aware of their electricity use. The overall goal is to make information and tools available for people to manage their energy consumption and encourage people to use less energy.
To better understand Smart Grid and how it affects our living, please review the below video: