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AIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

1 March 2025

Smart Grid (Glossary)

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The term "smart grid" is particularly at home in the areas of sustainability and environment 4.0, the Internet of Things and digital transformation. A smart grid is an "intelligent power grid". It combines modern digital technologies with the traditional electricity grid so that electricity generators, distributors and consumers can communicate and work together better.

A smart grid makes it possible to distribute and store energy more efficiently. In this way, renewable energy such as solar and wind power can be fed in and utilised in a targeted manner - even when the sun is not shining or the wind is not blowing. Thanks to sensors and measuring devices, the smart grid always knows exactly how much electricity is being used or produced.

A simple example: In a household with a solar system, the smart grid can recognise when a lot of its own electricity is being produced. The washing machine or dishwasher could then start automatically to make optimum use of the electricity. At the same time, the smart grid ensures that power outages are recognised and rectified more quickly.

In short, a smart grid helps us to use energy more sustainably and efficiently and makes our entire electricity system fit for the future.

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