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The smart grid is expected to revolutionize existing electrical grid by allowing two-way communications to improve efficiency, reliability, economics, and sustainability of the generation, transmission, and distribution of electrical power. However, issues associated with communication and management must be addressed before full benefits of the smart grid can be achieved. Furthermore, how to maximize the use of network resources and available power, how to ensure reliability and security, and how to provide self-healing capability need to be considered in the design of smart grids. In this paper, some features of the smart grid have been discussed such as communications, demand response, and security. Microgrids and issues with integration of distributed energy sources are also considered.

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