Micro-grids and Their Impact as a Smart Grid

Smart grid (micro-grid) technology is a rapidly evolving area of power system management that is changing the way to generate, distribute, and consume electricity. At the heart of the smart grid are the sources of energy that power it. Ideal sources of energy for smart grid systems and their impact on the overall efficiency and effectiveness of the smart grid are explained in order to clearly understand their effects. Micro grids are a type of distributed generation since the energy (power and heat) is produced nearby where it is needed. A two-terminal element that has the feature that the voltage between the terminals is known at all times is an ideal voltage source. The current flowing from the source has no bearing on this voltage. This means that any current might conceivably pass through the source in any direction, and this is called a micro-grid.