A smart grid is an electrical grid that uses digital technology to make the system more efficient, reliable, and secure. It also enables two-way communication between the utility and customers' energy-use devices, such as water heaters, air conditioners, and electric vehicles, to allow for real-time monitoring and automatic response to changes in supply and demand. This helps customers save money on their energy bills by reducing peak demand for electricity, improving power quality and reliability, and helping utilities manage energy resources more efficiently.