The introduction of smart grid will see to it that the renewable resources are used more efficiently. There is a common misconception from people that renewable resources such as solar, wind and hydroelectricity are unlimited and its supply is never ending. Though these energies are available in substantial amounts they have their limitations as well and hence people will have to learn to use these energies more wisely.
Hence there has to be a clear system to store and manage these energies so that there is minimum wastage. For example, the solar panels harness energy from the sun during the day when there is not much need.
Similarly winds blow more at night than during the day. The traditional electricity that we get to our homes comes through overhead wires that are not smart enough to understand that they should release only the amount of energy that is needed. All this will change with the introduction of smart grids which will decide automatically how much energy will be supplied, depending on the demand. They will also be able to track if consumers are wasting power and these consumers will be charged more to discourage them from wasting power.
Hence a smart gird will bill the consumer as per his use and how much energy is being used and where. When required, the smart grid will adapt to alternating power sources such as conventional energy. Hence there will be no worries about the supply of energy. In case of the smart gird, the energy sources will be self generated by the consumers and the utility company will be the last resort for power. Hence consumers will not be at the mercy of utility companies for their power needs.
The smart grid user will be able to make use of extra power that he has created in getting credits from the utility companies. At the end of the month the proportionate amount will be credited to the user’s account. Hence if you generate more power than you need then you can sell the excess power to the utility company and make considerable savings. The smart grids are called smart as they teach consumers not to waste energy otherwise they will be billed heavily. Hence they promote conservation of energy.