ABSTRACT
The smart grid is a recent development that evolved as the marriage of our electronic communication abilities and the need for better grid management (balancing supply and demand for electricity across increasingly diverse sources and consumers). Managing the electrical grid now includes distributing electricity generated by wind and solar that flows into the grid as it is generated by the utility and others. Energy storage in batteries is also increasing, and this becomes an important operational option for the grid manager. Automation may be used to assist smart grid operators and customers with grid management. Adjustable (dynamic) prices can be used in a smart grid to provide incentives that reduce use at peak demand times and increase use at times of low demand but high supply. With the smart grid and dynamic prices, customers have the opportunity to reduce the cost of their electricity by making decisions that help balance supply and demand.
