What is a smart grid?

A smart grid refers to a two-way system that monitors and automatically optimizes the operation of the interconnected elements of the power system – from the generator through the high-voltage network and distribution system, to end-use consumers and their household devices.

            The goal of a smart grid is to use advanced information-based technologies to increase grid efficiency, reliability and flexibility. It enables better use of the existing delivery infrastructure and offers benefits for both the consumer and the environment. These benefits include:

Improved System Reliability

 • Smart grids provide dynamic, real-time optimization of grid operations and resources. They have the capacity to detect, analyze and restore the system following faults before the problems escalate.

 • Increased physical and cyber security, as well as special protection systems, will enhance the reliability of the grid.

 • Greater coordination among all participants in the system will trigger better price signals and a more efficient balance between demand and supply.

Increased Customer Participation

 • Homeowners will have the tools and information to provide demand response to actively manage their electricity use, taking advantage of their smart meters, smart appliances and other control devices.

Environmental Benefits

 • Greater efficiencies will help alleviate the need for new generating, transmission and distribution facilities.

 • Improved integration of smaller generators embedded in the distribution system will increase the role of renewable energy supplies in meeting provincial demand.

— From the IESO smart grid forum web pages