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What is Smart Grid technology?

Electricity has been an important part of our daily life. For centuries, we have been using the conventional electricity method without having much concern about it. However, with technologies getting more advanced, electricity is changing as well. Though technologies strongly depend on electricity, the development in the field is rather slow. The fact that we still use the outdated grid system proves that technology does little effect on electricity. Since the conventional grid technology is less efficient in distributing resources, it is time to use the smart grid technology. Here is a brief explanation of smart grid technology. 

What is a smart grid and how does it work?

A smart grid is a technology that divides the electricity grid into a two-way flow of data and electricity. The technology includes energy measures ad operations such as smart appliances, smart meters, energy-efficient resources, and more. The technology of the smart grid aims to support and integrate renewable energy into the conventional energy source. Not only does it use alternative energy sources, but the smart grid technology also allows consumers to monitor energy consumption. 

Smart Grid Electricity

The essential part of the smart grid is the two-way electricity and data flow. This technology allows information and data flow to various stakeholders. This data and information are essential to optimize the grid, respond faster to error, foresee possible issues, and more. In addition, the smart grid has several capabilities in which the conventional method does not have. The smart grid can repair itself. The system also ensures premium-quality and consistent power supply with power leak-proof ability. Thus, the electricity can be distributed more efficiently. 

What is a smart grid in simple words?

To put it simply, the smart grid is an electricity network using digital technology to supply and distribute electricity to consumers. The technology uses two-way digital communication for more efficient distribution. Not only distribute energy, but the system also provides monitoring, control, communication, as well as analysis within the supply chain. The main aim of the smart grid system is to reduce energy cost and consumption as well as improve the reliability and transparency of the energy supply chain. The system is developed to overcome the weakness of conventional electrical grids using smart net meters. With most homes having internet access, the smart grid is possible to implement.  

What technologies are used in the smart grid?

Smart grid technology combines the electric network with the advanced digital communication network. Thus, it can provide a better power distribution that is easy to control. Some of the basic technologies of the smart grid include:

  • Intelligent appliances
  • Smart meters
  • Smart substations
  • Superconducting cables
  • Integrated communications

What are the advantages of smart grid technology?

Smart grid technology is the modernized way of distributing power more efficiently. Such technology is believed to have big advantages not only for human daily life but the environment as well. 

Electricity plays important role in everyday activities. A short moment of blackout leads to domino effects that impact other sectors such as communication, traffic, security, and such. This kind of issue should be a big deal when using smart grid technology. The system will automatically direct the power where the electrical system needs the most. This should be able to minimize the effect of blackout and its impact.

Many people believe that the current grid system is inefficient. But the smart grid is expected to distribute power efficiently as it allows user control and automatic process. The system can monitor the power usage and also cut off electricity when the device is not in the use. Users can also monitor how much they want to use the electricity as well as cut off when they do not need it. It surely helps save money and energy. 

Advantages and disadvantages?

Implementing new technology is a big challenge. There are lots of considerations before making the big change. Though the smart grid is expected to be a breakthrough in the electricity industry, there are also advantages and disadvantages to consider. 


  • Reduce equipment failure thanks to the automatic system. 
  • Reduce electricity costs and meter costs
  • Reduce electricity losses and the chance of a blackout


  • Continuous and stable network communication should be established.
  • Network communication can be affected during a certain situation such as heavy rain, stormy wind, snow, and such. It becomes a big challenge for smart grid technology.
  • Privacy problem because the power meter is integrated to the internet, hence it is prone to hacking. 

What is a smart grid in IoT?

The Internet of Things becomes an important part of the smart grid. It provides a communication network so that the smart grid can be operated accordingly. The power meter and other components are connected to the internet, allowing consumers to control and monitor the power use. In case there is trouble and error on the system, it can be easily detected because all parts have been integrated into the IoT. Combining electric networks with the IoT is a big change in the industry and it is seen by the future to sustain the power. 

Smart grid in iot
Smart grid in IOT

Which device is part of the smart grid?

A grid is considered smart when it has some intelligent infrastructure. The intelligent device provides better control and monitor because it is connected to the Internet of Things. Hence, it establishes two-way communication. Some of the devices that are part of the smart grid are smart meters, data concentrator units, communication medium, and the web server. The web portal is required for monitoring the smart meter and smart grid in general. 

What are the six key components of a smart grid?

Installing a smart grid is a big project. Though there are many components to substitute, here are the six key components of a smart grid.

  • Advanced metering infrastructure
  • Demand response
  • Electric vehicles
  • Wide-area situational awareness
  • Energy resource distribution and storage 
  • Management grid distribution

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Smart grid slowly changes the conventional grid system. Following smart technology, it play important role in better power distribution. Smart grid technology does not only help reduce the power meter use but also the costs. The technology leads to better power consumption with low impacts such as massive blackout or power loss.

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