A smart grid is an electricity system that uses digital technology to collect data, monitor and control equipment and consumers, to manage the flow of electricity – from power plants through the distribution grid to homes and businesses – in a more efficient ways. The goal of a smart grid is to use green-energy sources more efficiently, reduce pollution, and lower costs.
A smart grid uses two-way communication between the power provider and the consumer, as well as sensors and other technologies embedded in the electricity network infrastructure, to gather data about electricity use and make decisions about how to best meet demand.
In some cases, a smart grid can also provide consumers with real-time information about their electricity usage and allow them to participate in demand-response programs that give them incentives to use less power at peak times.
A key enabler of the smart grid is the development of green-energy blockchain technologies that can provide a secure, decentralized way to track and manage the flow of electrons on the grid. These technologies have the potential to create a more efficient, resilient and affordable power system that can help meet the world's growing demand for electricity.
Big data analytics and IoT technologies are important technology drivers in smart grids, moving analytics to the edge – as in Edge Computing.
Beyond technology, Smart Grids are also about cooperatives and peer-to-peer marketplaces. This is why blockchains have such a critical role to play in enabling the growth and utility of electrical Smart Grids.
Beyond the the Grid, new networks of market participants and applications can be built on this energy-information infrastructure. Smart grids coordinate the needs and capabilities of all power generators, grid operators, end-users and electricity market stakeholders, to make the entire power system as efficient and resilient as possible.
These new ways of organising energy supply and demand flows can minimise costs and environmental impacts, whilst maximising the reliability, resilience and stability of electrical power systems.
Smart Grids are a key enabler of the Green Energy transition, and blockchain technologies are a key enabler of smart grids. These synergistic technologies are driving the growth of the Tokenised Green Energy Economy.