Concern over climate change, carbon emissions, and supply security is putting increased pressure on the utilities sector as the world's energy demand is expected to double by 2050. The law as it stands mandates utilities to identify ways to minimise energy use, lower carbon dioxide emissions, and implement alternative fuels. With aged infrastructures, a labour scarcity, and constrained margins, increasing operational efficiency is also a primary issue. Additionally, utilities must develop ways to provide better customer service in light of rising customer expectations.
The smart grid provides utilities with the tools they need to handle these difficulties, including technologies for the efficient use and secure administration of transmission and distribution networks, remote data management and monitoring capabilities, automation, and control. The smart grid creates chances for the development of other new low carbon technologies, such as the smart home and digital cities, in addition to enabling utilities to distribute power in a sustainable, affordable, efficient, and secure manner.
The ability to issue energy bills to commercial and residential consumers based on real consumption as opposed to anticipated consumption is the first direct benefit. All billing process improvements result in better cash flow, fewer bad debts, and less questions about billing and payments. New pre-paid energy services that can be provided to customers without the resources for a large down payment or significant prepayments are also made possible by smart metering.