Smart grids refer to electricity networks integrated with digital communication technologies that allow them to detect changes in usage and other grid problems and respond accordingly. Smart grids may enable electricity to dynamically flow in two directions depending on demand and supply, allowing for automatic rerouting. Smart grid systems also allow surplus energy generated from renewable resources to be stored safely and distributed when required. Smart grids give consumers easier access to their own data, empowering them to better manage their energy consumption and costs. Smart grids’ primary limitation is their vulnerability to cyberattacks, making robust security protocols crucial. Smart grids will replace traditional electricity grids that are designed to transport electricity from a steady producer to consumers. Renewable energy, which is becoming increasingly important as part of the energy transition, requires dynamic grid operation. Electricity generation is becoming decentralised, moving away from power plants to wind turbines and solar panels, which are distributed around the country. Former electricity consumers are becoming prosumers, who themselves feed energy into the grid from photovoltaic panels, wind turbines or biogas plants. Since these forms of energy cannot produce a uniform supply, smant grids have to control generation, consumption and storage. Thus, electric cars could become an electricity-storing system for the household.