With rapid degeneration of conventional sources of energy, it is time to prepare our existing system to adapt to renewable power generation; a task full of challenges till today. The most promising approach that could provide a solution to this issue is the concept of smart grid. Smart grid, an advanced version of a present power system grid is expected to meet the challenges of future power demand by using advanced techniques. For better understanding of smart grid, it is essential to have knowledge of various components of smart grid and have a glance at various techniques used in it to improve the performance of overall system. This paper reviews some major issues related to constituent parts of smart grid and gives a brief introduction of some major research done in each field and to provide the basic information about developments in smart grid, and highlight the areas of future research for further advancement of smart grid.
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