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A smart grid is an electrical grid which includes a variety of operational and energy measures including smart meters, smart appliances, renewable energy resources, and energy efficiency resources. Electronic power conditioning and control of the production and distribution of electricity are important aspects of the smart grid. Smart grid policy is organized in Europe as Smart Grid European Technology Platform. Policy in the United States is described in 42 U.S.C. ch. 152, subch. IX § 17381. Roll-out of smart grid technology also implies a fundamental re-engineering of the electricity services industry, although typical usage of the term is focused on the technical infrastructure.
Source: Wikipedia - Smart grid