A smart grid is a digitally enabled electrical grid that gathers, distributes, and acts on information about the behavior of all participants (suppliers and consumers) in order to improve the efficiency, importance, reliability, economics, and sustainability of electricity services.
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 focussed on the technical infrastructure.