Utilities are already implementing “smart” devices in various ways. Substation automation, for example, has been an industry trend for many years, enabling substations to perform more complex and autonomous functions, while serving up a host of useful information from the field to the utility control center. Similarly, SCADA systems, reactive power compensation and feeder automation are all being used to reduce line losses for greater efficiency.
Some specific examples of how smart technologies – and the practices they enable – can impact the operation and overall health of the grid include the following:
• Real-time situational awareness and analysis of the energy delivery system can drive improved system operational practices that will in turn improve reliability
• Fault location and isolation can speed recovery when outages do occur by allowing work crews to drastically narrow the search for a downed line
• Substation automation (SA) facilitates the safe local and remote control and monitoring, as well as the protection of the substation for optimal supply quality and improved system reliability"
• Smart Meters allow utility customers to participate in time-of-use pricing programs and have greater control over their energy usage and costs
• SCADA/DMS (distribution management systems) place advanced decision support and control functions in the hands of grid operators
• Voltage control, through reactive power compensation and the broader application of power electronics, improves both transmission capacity and the resiliency of the system overall
Of course, this is not an exhaustive list. Smart grid technologies similar to those used for voltage control, for example, are already being applied to bring power from wind farms to the local grid. In this way, the smart grid acts as an enabler for all forms of renewable generation.
The implementation of smart grid technologies is an evolving process constrained by available resources, technology maturity and other business issues. A planned process with a reputable technology partner is critical to the success of smart grids implementation.
At the highest level, the smart grid is:
• Adaptive, with less reliance on operators, particularly in responding rapidly to changing conditions
• Predictive, in terms of applying operational data to equipment maintenance practices and even identifying potential outages before they occur
• Integrated, in terms of real-time communications and control functions
• Interactive between customers, grid network and power markets
• Optimized to maximize reliability, availability, efficiency and economic performance
• Secure from attack and naturally occurring disruptions
So, how does this "smart" grid differ from the one we know today? The table below provides a concise summary of some of the differences as they appear in various areas of the power delivery infrastructure.
 | Current grid | Smart grid |
| Communications | None or one-way; typically not real-time | Two-way, real-time |
| Customer interaction | Limited | Extensive |
| Metering | Electromechanical | Digital |
| Operation and maintenance | Manual equipment checks, time-based maintenance | Remote monitoring, predictive, condition-based maintenance |
| Generation | Centralized | Centralized and distributed |
| Power flow control | Limited | Comprehensive |
| Reliability | Prone to failures and cascading outages | Pro-active, real-time protection and islanding |
| Restoration | Manual | Self-healing |
| Topology | Radial | Network |
| Source: Research Reports International, 2008 |