A smart grid is an electrical grid enhanced with digital communication technology enabling two-way communication between utilities and consumers, automated monitoring and control, and integration of diverse energy sources. Smart grids use sensors, meters, and digital communications to monitor grid conditions in real time, detect and respond to problems automatically, and optimize electricity distribution. Benefits include improved reliability, better integration of renewable energy sources, reduced energy losses, and enabling demand response programs where consumers adjust usage based on grid conditions. Utilities across Canada are upgrading to smart grid technologies, representing significant infrastructure investment. Smart grids support the transition to cleaner energy by managing variable renewable generation.