The document discusses the transformation from a traditional power grid to a smarter power grid, known as a smart grid. A smart grid uses two-way communication and digital technology to improve efficiency. It enables better integration of renewable energy sources and allows consumers to interact more with the grid. Key components of a smart grid include smart meters, phasor measurement units, distributed generation resources, and energy storage from electric vehicles. The benefits of a smart grid are improved efficiency, reliability, and use of renewable energy, while drawbacks include potential security and privacy issues from increased connectivity.