Conventional grids are ‘dumb’ and ‘blind’ since they do not monitor themselves using various modern sensor technology like those deployed in a typical smart grid architecture.
In a smart grid architecture, numerous sensors are deployed throughout the grid infrastructure that can monitor, test, and communicate. This may even lead to self-repair and healing/removing and re-directing power around faults automatically.
The smart grid is a properly networked system which has two-way communication capabilities.
The utility company seeks to use networks that enter their customers’ homes so they can actively manage the transmission load.