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This vision of the 'energy transition;' is built around the modernisation of the electrical grid, with the gradual development of smart grids, which use information and communication technologies (ICT) to manage electricity more efficiently while adding new nodes to the electrical grid such as Renewable Energy Sources (RES), thus turning households into a consumer-producer-hybrid. The promise of the smart grid is to enable a new paradigm with a reduced energy cost and the environmental benefits of RES<ref>See the [[:Category:Technological Dimension]]</ref>.
==What is the smart grid?==
* Intelligent and digitised energy network
* Two-way dialogue: Electricity and Information
* Information + Communication + Power Grid
* Reliable, Secure, Efficient, Modern, Manageable → Full Potential
* The integration of power, communications, and information technologies for an improved electric power infrastructure serving loads while providing for an ongoing evolution of end-use applications. <ref name="3o">http://ieeexplore.ieee.org/document/6018239/</ref>
* A marketing term, rather than a technical definition. For this reason there is no well defined and commonly accepted scope of what "smart" is and what it is not.<ref> http://www.iec.ch/smartgrid/background/explained.htm </ref>
==What is the traditional grid like?==
Traditionally, energy systems from power generation to homes are one-directional and based on more predictable, controllable and centralised power generation, looking something like this: