This document discusses smart grids, which use digital technology and automation to gather and act on information about electricity use in order to make the delivery of electricity more efficient, reliable and sustainable. It describes how smart grids evolved from traditional power grids to incorporate more advanced communication technologies. Some key features of smart grids are reliability, flexibility, efficiency, sustainability and enabling energy markets. Smart grids allow more renewable energy sources and demand response by consumers. While they provide advantages like improved efficiency and reliability, smart grids also face challenges implementing new technologies and raising privacy and security concerns.