The document discusses the concept of a smart grid, which aims to modernize and add intelligence to existing electrical infrastructure. It describes how a smart grid would use two-way communication and sensing technologies to better balance supply and demand of electricity. This would help maximize output, improve reliability and efficiency, reduce costs and energy consumption. Key aspects of a smart grid discussed include smart generation, transmission, distribution and consumer components. Advantages include better energy management and reliability, while disadvantages include high costs and potential security issues due to its computerized nature. Implementation examples in India are also provided.