What is a smart grid?
A smart grid is an electricity network that uses metering, control technology and software to keep generation and consumption in balance at all times, so that consumers can also export power. A related term is virtual power plant (VPP): many small, distributed generators and batteries controlled together as if they were one power station.
How it differs from a conventional grid
- Conventional. Power flows one way: from large power stations through the network to homes and businesses.
- Smart grid. Power flows both ways. Solar panels, wind turbines, batteries and electric vehicles feed in at varying and unpredictable times. The network measures continuously, shifts demand to periods of high supply and can temporarily curtail generators when stability is at risk.
When generation or demand exceeds what the network can carry, this is called grid congestion. Smart control is one way to manage it, alongside reinforcing the network.
Application
For a home or small business, the smart grid mostly means matching your use to generation and network capacity.
- Use your own solar power. Run the washing machine, hot water cylinder or heat pump while the panels are generating.
- Choose controllable equipment. An EV charger, heat pump or home battery with an open interface (for example to a home energy management system) can respond to price or grid signals. In Great Britain, new home and workplace chargepoints must have smart functionality under the Electric Vehicles (Smart Charge Points) Regulations 2021.
- Run the numbers on storage. A home battery only pays off if you actually use the stored power yourself; check it against your own consumption profile.
- Watch your connection capacity. Load management stops the EV charger, heat pump and hob from drawing full power at the same time.
Common mistake: buying devices that only work through a closed manufacturer app. Linking them later to an energy management system or a time-of-use tariff is then often impossible.
Related terms
- Grid congestion
- Connection capacity
- Energy storage
- Home EV charge point
- Nearly zero-energy building
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