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Smart grids are electrical grids using ICT and two-way communications to enable varying two-way flows of electricity and information for the integration of distributed renewable generation and power storage. Research and development in this field centres on three main areas; the infrastructure system, the management system, and the protection. The integration of advanced communication, sensing, control, and optimization techniques into traditional power systems is a key challenge in transforming conventional grids into smart grids, and so empowering consumers with real-time information and control over their power usage and production.

Power systems need to be optimised for efficient use of resources and in order to meet stringent requirements for power quality and reliability. Algorithms exist and are in development for various tasks including sizing, voltage and frequency control, demand response, fault identification, and for specific situations and systems such as hybrid energy systems and hot climates. Especially in urban areas with high population densities, researchers and experts need to be abreast of R&D trends, both for energy systems for communities as well as for smart grid developments.