Smart Grids are electricity networks based on digital technology. An important characteristic of these networks is the ability to store energy, which makes it possible to use nearly 100% of renewable energy, such as solar and wind power (which vary according to the weather). Furthermore, Smart Grids have the ability to self repair, resist the loss of electricity and inform consumers on their energy use, their cost and alternative options, thus allowing them to make more sustainable choices. Thus, the Smart Grids are a reliable option, resistant and sustainable energy production level for the Smart Cities.

Some of the features commonly attributed to the SmartGrid are:

Autorecovery: ability to automatically detect, analyze, respond and restore network failures;
Consumer Involvement: ability to include equipment and consumer behavior in the processes of planning and operation of the network;
Tolerance to external attacks: ability to mitigate and to resist physical attacks and cyber-attacks;
Power quality: provide energy with the quality required by digital society;
Accommodate a wide variety of sources and requirements: ability to integrate transparently (plug and play), a variety of energy sources of various dimensions and technology;
Reduce the environmental impact of the electricity producer, minimizing system losses and using low environmental impact sources;
Responds to the need according to remote actuation in consumer devices.