The smart grid is the first and largest application of the
Internet of Things (IoT). Utility companies have been installing
solid-state electricity meters that can report data on consumption
on a nearly real-time basis. These smart meters allow consumers to
access their consumption data so they can better manage their
electricity usage.
The smart grid enables utilities to lower the cost of data
collection (since meters report their data automatically); provide
quicker reaction to outages, leading to less lost-revenue downtime;
better monitor electricity theft; and better link the actual costs
of generation with consumption through time-of-use pricing and
demand-response products. In addition, smart grid technology allows
utilities to better monitor transmission lines and manage
substations, and integrate microgeneration (such as solar or wind).
As a result, utilities benefit from more uptime, less capital
expenses, and improved efficiency and reliability.
