The Smart Grid is a concept that applies to all the infrastructure of energy generation, distribution, and utilization. In order to make the grid smart, all three pieces of the puzzle must be in place and operational; if the Smart Meter only is considered, the grid is not very smart. It is better to understand this in terms of consumption. The right-hand side of this slide is the consumer side, where the energy is used. This portion is being made intelligent by communicating, sensing, and monitoring, either through the meter or the cloud-based infrastructure distributed inside the grid itself, to the power generation side, and back and forth. Power is generated as smart, transmitted as smart, and consumed as smart; the user becomes also an energy producer instead of simply an energy consumer and the utilities have a way to size the grid properly to what the user needs, rather than to size the grid for the peak. That is the Smart Grid.