A good working definition for smart grid is a bi-directional supply chain to connect power generation to transmission, distribution, and consumers by using information technology. The bi-directional aspect doesn't exist in the older power grid system, which creates inefficiency and makes it harder to control outages and manage failures.
Smart grid is a global phenomenon that utilities, counties, municipalities, and cities are embracing for the promise of greater energy efficiency, reliability, and scale. But in order to make the grid smart, utilities must interconnect critical components (such as smart meters, sensors, grid components, and energy management systems) via an IP network. It's a complex 'system of systems' which connects various silos of infrastructure and people.
