The term "Smart Grid" encompasses a broad spectrum of solutions that aim to optimize the energy value chain. In general, the Smart Grid concept utilizes advanced computer applications and real-time communications networks to create a modernized power grid with multiple interactive and interoperable capabilities. Several federal agencies, utility companies, regulators, and equipment manufacturers have begun multiple processes to identify and quantify the potential benefits of implementing Smart Grid concepts on a wide-spread basis throughout the United States.
The importance of the Smart Grid concept to the United States economy was recently underscored by the inclusion of significant funding for Smart Grid projects in the American Recovery and Reinvestment Act of 2009.