A smart grid is an electrical grid which includes a variety of operational and energy measures including smart meters, smart appliances, renewable energy resources, and energy efficient resources. Electric utilities now find themselves making three classes of transformations: improvement of infrastructure; addition of the digital layer, which is the essence of the smart grid; and business process transformation, necessary to capitalize on the investments in smart technology. Much of the work that has been going on in electric grid modernization, especially substation and distribution automation, is now included in the general concept of the smart grid.