Germany is at the forefront in international smart grid development. Intelligent networks or "smart grids" allow fluctuating renewable energy power generation and consumption to be optimally managed by allowing a shift from "consumption-oriented generation" to "generation-optimized consumption."
Information and communication-based technologies (ICT) will play a central role in connecting the different parts of the energy system. By setting fundamental standards, products and services provided by businesses from diverse industry sectors will be able to intelligently communicate with each other, allowing the smart grid system to be incrementally expanded with the addition of new modules and products.
All appliances connected to the power grid are added to the control system like a "plug-and-play" application. This allows a completely integrated data and power network to be created. Intelligent ICT solutions will allow smart grids to efficiently manage power generation, consumption and storage in tandem with so-called "smart meters."