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.”
Review the Department of Energy's website on Grid Modernization and the Smart Grid [7] and explore the links at the bottom. This website has a good overview of what we mean by smart grid and why modernization of the grid is a critical enabling factor.