Centralized electricity power generation supply electricity energy through poles and wires to their customers. The business operators are trying to solve many challenges through the concept of smart grid, which requires customers to make their life a little bit easier by adjust electricity consumption, or pay a higher price.
Energy can be most conveniently described as the capacity to do work. Work in turn can be defined as the energy transferred by a force applied through a displacement. The amount of work done in a given time or the rate of doing work is known as power. Pushing a car on the road by people is a straightforward scenario. But to explain how the energy used in a power station being transferred through out the whole electricity grid until used by its customers is a very complicated process.