Definition of smart grid

A smart grid uses information technology to manage electricity networks to promote energy efficiency and cost efficiency.

One of the features of this system is the use of  “smart meters” which tell consumers more about their electricity usage and allows utility companies to raise prices to give consumers an incentive to lower their electricity usage at peak times. [1]

An example is that utilities can work with customers across a region to shut off air conditioning systems for short periods of time, reducing demand at peak times with little effect on a building’s temperature. [2]

Also known as electranet, the system would also allow people to generate their own electricity from renewable sources and sell it back to power suppliers. [3]

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