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== The Past: Distributing energy the traditional way ==
While energy production reliant on coal and other fossil fuels got less over the last 20 years and the percentage of renewables in the EU's energy mix is steadily increasing, the long-awaited energy revolution has yet to arrive and the EU's amount of energy production is decreasing as a whole.<ref>http://ec.europa.eu/energy/sites/ener/files/documents/2014_energy_market_en.pdf</ref>
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[[File:Traditional Power Grid.JPG|thumb|The traditional power grid]]
Energy distribution systems are traditionally centralised and one-directional: A power plant of any kind generates the energy that is then transmitted. Distribution systems then proceed to, as their name would suggest, distribute the energy to the consumers.<ref>http://www.edsoforsmartgrids.eu/home/why-smart-grids/</ref>
Nowadays electricity also tends to take over other forms of energy as well, as shown by the rising popularity of electric cars. This may accelerate the ever-growing demand for energy even further.
The funding of smart grid technologies was up to € 3.15 billion in 2013, while 26% was invested in research and development and 74% in Demo and Deployment. The main investors at the moment are France and the United Kingdom, followed by Germany and Spain.
[[File:Smart grid funding.JPG|thumb|Funding of smart grid projects in the EU as of 2013.]]
The [[European Strategic Energy Technology Plan]] (SET-Plan) aims to accelerate the development and deployment of low-carbon technologies. It seeks to improve new technologies and bring down costs by coordinating national research efforts and helping to finance projects.<br />