An electric power grid is part of the process through which electricity is delivered to consumers. Electrical energy is generated by power plants and is then sold as a commodity by retailers. The electric energy transmission and electricity distribution networks allow the delivery of the generated electricity to consumers.

A 'smart power grid' would decentralize the delivery scheme for electricity, allowing it a flexibility some believe will become more necesary as a means of efficiency and a response to growing environmental concerns.

"To get an idea of what the future electricity grid will look like, think of the Internet. Like the Internet today, the electricity network needs to be able to connect billions of devices and still operate reliably. Because of growing environmental concerns, the grid needs to become far more flexible than it is today, accommodating distributed power generation from renewable sources and use several energy-efficiency techniques."[1]
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