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This video briefly explains what a Smart Grid is and what its necessity is. It also explains the challenges of setting up a smart grid.
The important points of the smart grid are as follows:
1) It consists of distributed energy generation. So there are many sources/generating stations to generate electricity. which increases the reliability of the system as it is not completely dependent on the centralized power plants.
2) Effective use of renewable energy.
3) Artificial intelligence for quick actions, to maintain the stability of the electricity grid and maintain power supply to consumers.
Challenges:
1) High investments
2) Old electricity grid infrastructure
3) Cyber attack
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