Smart grid technology consists of various technologies designed to increase reliability, efficiency and sustainability of electricity supply.

Automatic response capabilities enable utilities and consumers to respond swiftly and cost-effectively when power surges occur, thus minimizing outages and saving both parties money in costs.

Smart grid technology uses communication networks to automatically respond to fluctuations in demand, providing millions in savings by managing energy use more efficiently.

Reliability

As energy production becomes more decentralized and consumers become both producers and consumers of electricity, smart grids have become an invaluable tool in managing power reliability. They provide improved fault detection while simultaneously enabling self-healing capabilities without needing intervention by technicians.

Utility providers can utilize real time energy pricing information to give their customers real time pricing data and empower them to make smart decisions about energy consumption. This feature is particularly advantageous for owners of electric cars who can charge their cars when prices are lowest, saving both money and increasing energy efficiency on the grid.

Previous studies focused mainly on studying the reliability of smart grids from technical perspectives. This research proposes an MCDM model to examine the impact of various factors on smart grid reliability, along with conducting sensitivity analyses on them. It offers insightful information for academics, engineers, decision-makers and manufacturers of smart devices and appliances, while helping to incorporate relevant criteria into product improvements.

Efficiency

Smart grids use digital technology to monitor, automate and optimise an electricity network – leading to significantly increased efficiency while contributing to global transition to renewable energy systems.

Smart grids can communicate to electricity users about reducing power consumption via smart meters or computer networks to meet rising energy demand without resorting to non-renewable energy sources, thus helping ensure the electricity network can meet consumer needs without resorting to non-renewable energy resources.

Smart grids also facilitate bi-directional energy flows, so consumers with solar or other renewable systems installed in their home can become producers of energy rather than consumers at peak times of demand. Furthermore, real time pricing information allows consumers to take advantage of charging their EVs at times when electricity prices are cheaper – helping avoid peak charges altogether.

Smart grids enable consumers to reduce energy usage and enhance home efficiency, thus saving money and increasing sustainability. Furthermore, they monitor renewable energy plants to keep them performing at peak performance.

Security

Smart grids combine various energy sources and technologies into a single network, increasing efficiency while supporting renewables integration. However, despite their many benefits, smart grids can also be vulnerable to cyber attacks; as such it is essential that comprehensive cybersecurity strategies be put in place and regularly adjusted according to emerging threats.

Smart grid security risks arise from any unauthorized manipulation of data transmissions. This may involve various activities, such as baseline response replay attacks that allow attackers to capture and retransmit data in order to misguide or conceal malicious activities [195].

Hackers pose another threat by listening in on data transmitted through smart meters – known as virtual eavesdropping – which can be avoided by encrypting communications and ensuring employees adhere to stringent privacy regulations.

Sustainability

Smart grids help reduce unplanned interruptions during weather events and speed network recovery by limiting energy loss. Furthermore, they ensure reliability by optimizing resources, offering remote monitoring and controlling, and employing predictive maintenance – benefits which utilities can pass onto consumers at reduced operational costs.

Smart meters give consumers access to timely energy consumption data and dynamic electricity price contracts that incentivize them to limit consumption during high-cost peak demand periods. Furthermore, communication technology enables computers to tell smart appliances when it is best for them to reduce energy use.

However, Smart Grid ecosystems face certain hurdles to their growth and expansion. These include data protection concerns, cybersecurity threats and the need to upgrade existing infrastructure. Furthermore, lack of interoperability between different technologies could impede adoption; and finally it must ensure its benefits reach all communities equally through equitable investment models.