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Smart grid is the next generation of electricity distribution grid. It adds intelligence to the network by providing means to control, measure and collect information in real time. All this helps to save energy, reduce costs and increase reliability.
Such a modern electricity network is being promoted by governments as a way of addressing energy independence and global warming.
A smart grid includes a monitoring system that keeps track of the electricity flows in the system.
It makes it possible to more efficiently utilize renewable energy sources such as solar and wind power.
At short peak times it is possible let the smart grid turn off selected instruments for example electric heating or air conditioning to reduce demand. This minimizes the need for reserve power. Users are also able to consume the power they need at times when electricity is least expensive. For example electric cars can be charged at night times when the power consumption is smallest and energy least expensive.
Flexibilis time synchronization and traffic encryption technologies help the smart grid to be more accurate, effective and secure.
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