A smart grid is like an ordinary electric grid, but with special controls and technology added to make it smarter. With a smart grid, electricity is automatically monitored and controlled to make sure it goes where it's most needed. For example, if there is a lot of electricity being used in one part of town, the smart grid will automatically adjust the flow to make sure that other parts of town get the electricity they need. Smart grids also use renewable energy sources like wind and solar energy, which helps the environment.