A smart grid delivers electricity from suppliers to
consumers using digital technology to save energy,
reduce costs, and increase reliability and transparency.
The smart grid enables information to flow
back and forth between electric power providers and
individual households to allow both consumers and
energy companies to make more intelligent
decisions regarding energy consumption and
production. Information from smart grids would
show utilities when to raise prices when demand is
high and lower them when demand lessens. Smart
grids would also help consumers program high-use
electrical appliances like heating and air conditioning
systems to reduce consumption during times of
peak usage. If implemented nationwide, proponents
believe, smart grids would lead to a 5 to 15 percent
decrease in energy consumption. Electricity grids are
sized to meet the maximum electricity need, so a
drop in peak demand would enable utilities to
operate with fewer expensive power plants, thereby
lowering costs and pollution.