What does the term "smart grid" refer to?

The term "smart grid" specifically refers to an electricity supply network that incorporates digital communication technology. This advanced infrastructure enables the grid to detect and respond to local changes in electricity usage in real-time. With smart grid technology, utilities can monitor energy flow, manage supply and demand more efficiently, and provide consumers with data about their energy consumption. This capability leads to enhanced reliability, improved energy efficiency, and a stronger integration of renewable energy sources.

In contrast, traditional electricity supply networks lack these advanced communication and management capabilities, making them less responsive to fluctuations in energy demand and supply. While reducing electricity transmission losses is an important goal in energy management, it is just one of the benefits of a smart grid rather than its defining characteristic. Similarly, while renewable energy sources are integral to modern energy strategies, they represent a different concept that is not encapsulated by the term "smart grid."