"Smart grid" refers to an upgraded electricity distribution system that uses digital technology to monitor, control, and optimize the generation and distribution of electricity. It enables two-way communication between utilities and consumers, allowing for better resource management, energy efficiency, and reliability. Key components of a smart grid include sensors, smart meters, and automated systems that enable real-time data analytics for demand response and fault detection. This modernization is essential for integrating renewable energy sources and enhancing overall sustainability in energy consumption.