The electric grid delivers electricity from points of generation to consumers, and the electricity delivery network functions via two primary systems: the transmission system and the distribution system. The transmission system delivers electricity from power plants to distribution substations, while the distribution system delivers electricity from distribution substations to consumers. The grid also encompasses myriads of local area networks that use distributed energy resources to serve local loads and/or to meet specific application requirements for remote power, village or district power, premium power, and critical loads protection. The concept of the smart grid technology calls for the construction of a 21st century digital technology electric system that connects everyone to abundant, affordable, clean, efficient, and reliable electric power anytime, anywhere in a manner that will save energy reduce costs and increase reliability and transparency. This can be achieved through a smart grid, which would integrate advanced functions into a nation’s electric grid to enhance reliability, efficiency, and security, and would also contribute to the climate change strategic goal of reducing carbon emissions. These advancements will be achieved by modernizing the electric grid with information-age technologies, such as microprocessors, communications, advanced computing, and information technologies.