Smart power grids complements electrical wiring with information technology, smart sensors, digital measuring equipment and communication networks. They are possible for a green economy and a prerequisite for renewable energy to replace fossil fuels.

The emergence of smart electricity grids will have major consequences and revolutionize the electricity market when there is room for new business models and actors. Smart electricity grids are a business opportunity for many different types of companies – not just those in the traditional electricity industry – and Swedish export industry has good conditions for being successful.

This report describes the development of smart electricity grids. It is divided into two parts, the first part illustrating the basics of what is called “smart” power grid technology, what the underlying driving forces are and what the conditions for market development look like. It also depicts the consequences for consumers, emerging business logic and ongoing investments and incentives in the world. The first part concludes with an actor map of the market. The second part consists of recesses in a few central sub-areas as well as a quick reference guide of technology that deals with smart electricity grids.