We have discussed distributed energy that relates to the physical nature of the grid- its geographic expanse and where power is generated relative to the user. But these grids, be they the large national scale or microgrids and distributed energy, need to be able to “think and make decisions” in order to optimize power generation and distribution. We refer to this as a “smart grid.”
Watch the short video and read the page found at https://www.smartgrid.gov/the_smart_grid/smart_grid.html [7] This website is managed by the U.S. Department of Energy and has a good overview of what we mean by smart grid.