Smart Grid (SG) is an integral connection of energy and telecommunications networks, which leads to efficient management of energy production and consumption in real time in local and global areas. The principle of operation of these networks is based on two-way interactive communication between partial operating points of the grid on the side of production, distribution and consumption of energy. Teleinformatic resources allow real-time collection of information, diagnostics of individual parts of the network and operational management on the side of production and distribution, as well as expansion opportunities in sales, as well as the choice of tariff options on the consumer’s side, according to programmed or immediate requirements of consumers. The term “power grid” can be understood not only as the electricity distribution network, but also as the network for production and distribution of gas and heat, water supply and distribution system, and others.
The biggest advent of SG can be observed in electricity networks. The control system should constantly monitor the network traffic and ensure so called "self healing", i.e. a process in which a network can automatically set the original conditions after any abnormal operation. Continuous diagnosis of operation parameters’ should help it (parameters of substations, transformers and distribution lines), together with immediate indication of fault states.
Majority of current electricity grids is built on the concept of a relatively small number of conventional sources of energy (thermal, hydro and nuclear power) with high power (hundreds and thousands of MW), from which a distribution network (HV, MV, and LV) transmits energy to a relatively large number of consumers. While this arrangement allows relatively easy synchronization of a network, it’s mostly a star topology, which can cause significant problems in case of power source failure of power lines damage.