The Role of Internet of Things (IoT) in Smart Grid Technology and Applications

HashStudioz Technologies
5 min readAug 17, 2021

Governments all around the world are focusing on adopting and integrating smart grid technologies as the traditional grid system ages and struggles to keep up with rushing electricity consumption.

For years, the European Union has focused on it as a system to efficiently offer ecological, economic and secure electricity supplies. The transition to smart and clean energy in the United states began a decade ago, when the government developed the first policy in this direction. From this moment forward, the US government formally sponsored smart grid investment, technology research, and development.

In this article, we’ll look at why smart grid is so crucial on a national and global scale, how it works and how IoT is being utilized to construct smart grid systems.

Definition of Smart Grid

Here’s a simple smart grid definition that covers all of the major points without going into too much detail:

It’s a system of infrastructural, hardware and software solutions that enables two way communication between all system parts and participants, as well as efficient power generation and distribution across the supply chain.

The smart grid is frequently described as a self-contained distribution system. It may generate power from a variety of sources, including renewables and energy storage. Furthermore, the adoption of this system provides unprecedented control and management capabilities to suppliers and consumers.

A more in depth description can be found on Technopedia. Now let’s look at how smart grid technologies can help.

How does the Smart Grid Work?

A smart grid, unlike a typical grid with one way communication, is a complex network involving many two way interactions between equipment and supply chain actors. This structure allow for a variety of scenarios for how generated energy can be moved and controlled.

Here’s a simple step by step procedure.

1- Generate

2- Distribute


4- Control

5- Store

What is the purpose of Smart Grid?

Traditional systems are outdated and ineffective in face of rising electrical demand. The graphic below illustrates the fundamental differences and advantages of a smart grid over a regular grid. Apart from these benefits, there are three primary reasons why smart grid technology and applications are required.

  • To cut cost and risks
  • To reduce emissions and carbon-heavy electricity
  • To provide resilience
  • Smart Grid Technologies that are Innovative

Innovative Smart Grid Technologies

The smart grid relies on a variety of technology and infrastructural solutions to function. The smart grid, which is based on IoT and data technologies, is gaining traction and incorporates several key components:

Sensors and meters for the Smart Grid: Sensor technology plays a critical role because it is these components that allow consumers to track their energy consumption. Sensors in smart appliances create and report status data on a continual basis, allowing for monitoring and control. Smart meters capture data on energy consumption and display a complete picture of energy usage in the home, including loads and estimates.

Automated distribution: Advanced distribution systems use real time data to dynamically adjust to changes in demand, detect overload and correct power distribution, allowing for both safety and cost savings. This is an illustration of how IoT- enabled automation can be achieved with a smart grid.

Charging stations and smart storage: Energy storage and charging stations are becoming increasingly important. These solutions not only allow houses to safely go off the grid in the event of outages or accidents. They also show the increased desire for self-contained renewable energy systems for home use.

Incorporating the Internet of Things into the Smart Grid

The internet of things plays a critical role in the smart grid. Smart grid is partly enabled by the Internet of Things, as its technological and infrastructural components are largely IoT-based.

Appliances, hubs and connected devices:

Sensor-enabled IoT devices, appliances and hubs that govern a smart home or any other connected environment provide information on energy consumption. This information is then utilised to monitor energy use, compute costs, remotely manage appliances, make load distribution decisions, and discover faults.

Process Automation based on the Internet of Things:

Smart grid IoT technology is widely employed in the supply chain to automate processes and boost efficiency. Producers and distributors are referred to as “producers” and “distributors”

  • Automated metering can be used to track energy usages in real time and adjust dynamically to changing demand.
  • Utilize environmental data to maximize the usage of renewables and optimize energy production.
  • To reduce the danger of outages or overloads, keep an eye on grid load and implement a data-driven strategy.

Smart Grid IoT Applications from national level to startup solutions for households, here are some successful examples of IoT in smart grid.

  • In Mannheim, Germany, IoT infrastructure and technological solutions were combined to achieve a smart grid project. This project faciliated the widespread use of renewable energy and the coordination of energy use and production in the region.
  • The Lumin energy management platform is an example of an IoT application in the smart grid that allows for cost savings, lower emissions and simpler green energy adoption all at the same time. The company provides a smart panel and data analytics tools to help customers maximise storage, control electricity use, and integrate PV systems into their home.
  • Schneider Electric provides a series of interconnected solar power systems for residential use. The company may provide a home with a PV system, monitoring and management tools to enable them to go completely off grid or generate and convert solar energy to meet a portion of their needs.

Digiteum can help you create an IoT Smart Grid Solutions:

We at Digiteum have firsthand knowledge of the technology utilized in IoT power grid and energy — efficient solutions. We have experience designing and implementing software and middleware for smart home energy monitoring and control, data analytics and visualization tools, advanced algorithms for device identifications and more for IoT and green energy projects.

Are you working on a smart grid project and need a software and engineering team with a lot of experience? Check out our portfolio, IoT software development services, and other capabilities, then get in touch to start a dialogue.



HashStudioz Technologies

HashStudioz is a leading product development company focussed on IoT, cloud, blockchain and Travel-based Solutions.