Smart grids shape the future of electrical grids

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  Quantumrun Foresight
• February 16, 2022

Electricity is critical to maintaining and advancing modern living. As digital technology has gradually developed, the opportunity for the US’ electricity grid to become a smart electric grid looms large. A smart grid involves technology that leverages two-way communication, utilizes control systems, and computer processing to enable an electric grid that is increasingly effective, reliable, and cost-efficient. 

With the US’s electricity grid supplying power to 350 million people, upgrading to nationwide intelligent energy grids can lead to real economic and social gains. Such initiatives can also be adopted in developing nations that are not overly reliant on legacy energy infrastructure. 

Smart grids context

Through their increased efficiency and resilience, smart grids will be better prepared to address emergencies, such as storms and earthquakes, and allow for automatic rerouting of energy in the event of a power failure in any locality.

In 2007, the US Congress passed the Energy Independence and Security Act of 2007 (EIDA). Title XIII of the Act particularly provides legislative support for the Department of Energy (DOE) as it seeks to modernize the US’ electricity grid to become a smart grid, in addition to other national grid modernization efforts. 

Similarly, Canada launched its Smart Renewables and Electrification Pathways (SREPs) program in 2021 with total funding of more than CAD $960 million over the next four years. The SREP program supports projects that focus on modernizing electricity system operations and delivering cleaner energy technologies.  

Disruptive impact

One of the primary benefits of adopting a smart grid system is delivering a cleaner and more reliable electricity supply that can withstand blackouts and other disruptions. Blackouts can lead to a domino effect for countries that can profoundly affect communications, banking systems, security, and traffic, dangers that represent a notably higher threat during the winter.

Smart grids can minimize blackouts as their technology will detect and isolate outages, containing them before they lead to large-scale blackouts. These grids recover electricity supply faster and take greater advantage of customer-owned generators and renewable energy to produce power when utilities are unavailable. By combining these resources, communities can keep their police departments, health centers, phone systems, and grocery stores operating during emergencies. 

Smart grids also allow consumers to make increased savings by installing smart meters. These meters offer real-time pricing and the ability to see how much electricity is used and when to make smarter buying and usage decisions. These grids also permit the easy integration of residential solar and batteries that can contribute to more decentralized energy grids.

Implications of smart grids 

Wider implications of smart grids may include:

• Achieving greater interoperability by linking components, devices, applications, and systems together to securely exchange data.


• Greater climate change resilience nationwide as communities can employ decentralized energy sources during times of emergency. 


• Fostering increased innovation within the energy sector as smart grids can reduce costs and enable new energy sector startups to focus on developing innovations that can strengthen and build upon local smart grids.

Questions to comment on

• How do you think smart grids will impact modern-day consumers the most?


• When do you think smart electrical grids will see widespread adoption in the energy industry?