Smart Grid and Demand Response Solution
Electric utilities, grid operators, and independent power producers provided electricity for a centralized system with large generating plants. Retail customers paid more per kWh than large-scale, industrial customers and the electricity flow was almost always one way. But now the electricity system is in flux, not just in the US and Europe, but around the world. Regulatory changes, the explosive growth of decentralized renewable electricity generation, improvements in technology, and concerns about climate change are roiling the market.
The original (and current) electrical grid design allows for utilities to send electricity to homes on a one-way path. The smart grid, simply put, allows for two-way communication so there is more efficient transmission of energy, lower costs for the utilities and consumer, and better integration with renewable energy sources.