Abstract

This chapter discusses the present and expected future developments in the smart grid (SG) domain and links them to the economic and social challenges of the wider energy transition. It highlights the importance of interaction between the electricity sector with actors and devices beyond the traditional electricity business to provide flexibility to the system itself and a secure operating environment for new service providers and the world of decentralized energy production. After explaining the essential features for digitization on grid level and beyond, the chapter discusses the longer-term technical and market challenges.