The potential benefits from a smart grid include increased reliability, more efficient electricity use, better economics, and improved sustainability.
The first focus area is on expanding generation, to address the explosive growth of electricity demand over the last 20 years; which is expected to continue .
All communications are via broadband using a private network, so data flows to control centers without significant time delays.
[11] The Korean government has launched a $65 million pilot program on Jeju Island with major players in the industry.
The two parties have signed a memorandum of understanding with the Illinois Department of Commerce to set up a pilot program to create smart grid technology at a facility on Jeju Island.
Under the plan, technologies that are developed through this partnership and are deemed viable for commercialization will be rolled out both in Illinois as well as in Korean cities.
The two sides agreed to launch a business model for a smart grid on Jeju-do Island and apply it in Seoul and Chicago later on.
The Korea Electrotechnology Research Institute and other related local centers will come together with Illinois' Argonne National Laboratory and Chicago University to test and develop technologies.
The Korean government seeks to complete the installation of smart grid in the country by 2030 and establish another 27,000 or more power charge stations for electric cars.
The government plans to handle it by developing core technology, new markets, new infrastructure and attracting voluntary investment from businesses.
[12] The federal government's call for proposals to study smart grid technology in 2009 was followed by an announcement of a winning team in June 2010.
European Technology Platform identifies that smart grid employs innovative products and services together with intelligent monitoring, control, communication, and self-healing technologies in order to: The EU aims to replace 80% of current electricity meters with smart meters by 2020 wherever cost-benefit analysis demonstrates a positive result.
On 30 November 2016, the Commission published a proposal stating that all consumers should be entitled to request a smart meter from their supplier.
Smart meters should allow consumers to reap the benefits of the progressive digitalisation of the energy market via several different functions.
[20] Initiated by Department of Energy and Climate Change under the Cameron-Clegg coalition from 2010 - 2015 and now under Department for Business, Energy and Industrial Strategy and Office of Gas and Electricity Markets, the (rollout of) smart meters are estimated to cost £11 Billion, providing the British economy a net £6.7 Billion benefit.
[22] The law, Title13, sets out $100 million in funding per fiscal year from 2008 to 2012, establishes a matching program to states, utilities and consumers to build smart grid capabilities, and creates a Grid Modernization Commission to assess the benefits of demand response and to recommend needed protocol standards.
The first driving force is high electric demand growth from the last twenty years that is projected to continue.
[25][26] Brazil is making great efforts to keep up with growing electricity demand and it factors heavily into their smart grid policy decisions.
Brazil's strong dependence on hydroelectricity makes their electricity supply vulnerable to shortages during drought seasons.
Brazil's smart grid policy agenda intends to address this by encouraging the development of other sources of electricity generation.