This document provides an overview of smart grids, including their components, advantages, and limitations. A smart grid uses two-way digital communication technology to detect and automatically respond to local changes in usage. It aims to reduce costs and carbon emissions by integrating renewable energy sources. Key components include smart meters for sensing usage, core networks for connectivity between substations, and distribution networks for transmitting data to databases. Advantages are reduced carbon, automated control, and increased efficiency. Limitations include inadequate existing infrastructure and intermittent renewable sources.