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What are smart grids?

Roxana Isabel Duerr/ssApril 30, 2013

Smart grids sound well, pretty smart. But what exactly are they?

https://p.dw.com/p/18Pff
Electricity cables. Photo: http://www.flickr.com/photos/matti_frisk/2941688941/sizes/z/in/photostream/ Lizens:http://creativecommons.org/licenses/by-nc-sa/2.0/
Image: CC/Matti Frisk

The term “smart grid” refers to an intelligent grid network that hooks up various energy sources, storage capacity, consumers, heating and cooling systems, digital monitoring systems and smart meters.

The technology allows the steering and regulation of energy flows – both electricity as well as gas. As a decentralized energy system, the smart grid integrates fossil fuels as well as renewable sources like solar, biomass, wind and hydropower. More importantly, the computer-operated network is able to balance out the natural variations in renewable energy production. Energy distribution is at its best when there is a clear balance between supply, demand and production.

Significant smart grid projects are being set up in Italy, Portugal, Germany, the US and the Netherlands. But for smart grids to be find wider usage, what’s needed is a fundamental upgrading of existing energy networks worldwide.