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News | 3/24/2025

What is the smart grid and how does it work?

The smart grid is an advanced system that integrates digital and communication technologies with the traditional electricity, water or gas distribution network to improve its efficiency, safety and sustainability. In recent years, the smart grid concept has become central to the global technology and energy landscape, as it represents an evolution of traditional grids, integrating digital technologies, advanced monitoring systems and automation solutions to improve infrastructure efficiency, sustainability and resilience. Below we will explore how they work and what their main benefits are.

Previously, we looked in detail at how the different electricity, water and gas distribution networks work. The devices in the field, which are now increasingly remote-controlled and telemanageable, exploit communication technologies to send data and receive commands remotely, allowing distributors to have real-time control of each branch of the network. This leads the networks themselves to evolve, to become smart. This is why, for some time now, people have been talking about the smart grid, the system that allows increasingly pervasive monitoring of the distribution network and the possibility for distribution companies to intervene promptly in the event of problems of various kinds.

How Does the Smart Grid Work?

The smart grid harnesses a number of advanced technologies to optimise the generation, distribution and consumption of energy, gas and water through close monitoring and remote operations. In order to better understand it, it may be useful to take a look at some of its key components and how they work:

  • sensors and smart meters: these devices monitor consumption and operating parameters of the network in real time, providing detailed data to both suppliers and consumers. Smart meters communicate continuously with the central system, allowing anomalies, faults or overloads to be identified and volumes to be calibrated according to demand;
  • network automation systems: the network is equipped with systems that automatically manage flows and overloads, reducing service interruption times through predictive maintenance and faster repairs;
  • IoT (Internet of Things) technology: by connecting devices and sensors via the IoT, the smart grid allows real-time data to be collected in network analysis and management software, highlighting any anomalies in the normal flow of distribution and optimising maintenance interventions.

The way in which the devices interact with the network analysis systems is based on the same path that the data take in smart metering: the smart devices collect the measurements and communicate them to the data acquisition centre (HES) once or several times a day, depending on the settings given by the distributor. The same procedure is also followed by the diagnostic data. Among other things, the devices can also be set to call in emergencies in real time and, in this way, ensure optimal network health by enabling timely intervention. 

Innovation

Actions that can be done through remote management include sending commands for certain actions, such as opening and closing valves or managing pressure thresholds.

Cathodic protection can also be remotely monitored. The latter is a technique used to prevent corrosion of buried or submerged metal structures, such as gas pipelines, oil pipelines, tanks and metal poles. This technology protects the metal from oxidation by turning it into a ‘cathode’ of an electrochemical cell, thus preventing degradation caused by the surrounding environment. The integration of cathodic protection in smart grids brings more advanced and efficient control of protection against corrosion and asset deterioration. This is possible through:

  • sensors installed along the pipes, which monitor parameters such as the potential difference between the metal and the surrounding electrolyte;
  • analysis of the data collected and sent to the SAC, which uses predictive models and artificial intelligence to develop the best protection strategies;
  • automatic adjustment of the system in real time;
  • predictive maintenance, using historical data, with which any faults or critical points in the network can be predicted and targeted interventions can be planned.

Smart grid and AI: the benefits of using smart grids

The development of a smart grid, with the right integrated devices, can open up scenarios for a virtuous and safe management of resources, in order to create a model that can prevent leakage and emissions reduction to a minimum. This is the idea that Terranova is implementing and that has resulted in a project for self-regulation of the gas network through Artificial Intelligence.

The project, developed in collaboration with the Politecnico di Milano, uses AI to monitor and automatically regulate pressure in gas distribution networks. Using data from smart sensors and environmental factors, such as temperature and consumption, the AI analyses the network's needs even without knowing its topology, which is often not digitised in detail by the operators, and automatically adjusts the pressure to ensure that it always remains at an optimal threshold to allow gas to reach even the peripheral branches of the network without, at the same time, subjecting the pipelines to such pressure that it causes leaks. Dynamic pressure regulation, based on accurate predictions, ensures efficient and sustainable management, reducing the risk of overpressure and gas leaks, thus contributing to environmental protection.

The innovation of this system lies in its ability to self-regulate the network, which adapts in real time to gas demand, reducing waste and inefficiency. After a data collection phase in real environments, the project aims to further refine the automated pressure control, improving the safety and sustainability of the gas distribution system.

Sustainability

This project, therefore, corroborates some of the advantages of the smart grid, which are: 

  • energy efficiency, thanks to more precise demand management: companies can monitor consumption in detail, improving overall energy efficiency;
  • environmental sustainability, as smart grids make it possible to increase the use of renewable energy sources. The grid is able to balance the intermittency of production from renewables with consumption, facilitating the transition to a cleaner energy system. For gas, on the other hand, as described above, it is possible to optimise operating pressures and reduce gas emissions into the atmosphere; 
  • cost reduction, as network automation allows for reduced costs related to service interruptions and maintenance. Optimised peak demand management also reduces the need for investment in new infrastructure;
  • resilience and reliability, as the smart grid is designed to better respond to emergencies and unforeseen events, thanks to its ability to isolate and solve problems autonomously. This makes it possible to limit outages and restore service more quickly;
  • active user participation, because it allows users to become prosumers, i.e. producers and consumers of energy, as in the case of solar panels (we have also discussed this here);
  • security and privacy: although the smart grid requires more interconnection and digitisation, encryption and data protection technologies are integrated to ensure that user information is protected.

The future of the Smart Grid looks promising and dynamic, with numerous applications that can revolutionise the energy sector. It represents a crucial evolution towards a more sustainable, resilient and inclusive energy system. By harnessing digital technologies, this smart grid enables an effective response to the challenges of today and tomorrow, facilitating the global energy transition.

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