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Nowadays, focusing on some critical points such as decreasing global warming and ambient pollution, better utilization of renewable energy resources, energy management and improvement of power systems operation becomes the field of attention for many modern societies. Although a large number of these aspects have been studied carefully and valuable results have been achieved, rarely can be found an article that makes a comprehensive review on different aspects of smart grids and their issues, therefore a working definition is presented that will help to put in context the framework for discussing and designing the Smart Grid. On the other hand, implementation of Smart Grids as the future of power Networks is strongly dependent on successive layers of functionality and capability using existing equipment and systems. Renewable energies (wind, solar), distributed automation and energy management gateways are some key elements of Smart Grids that will be covered discussed as well.

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