Summary: Power sector in India is never a satisfactory element. Although they are facing many challenges these days, there is room for improvement in different areas of concern. In the power sector problem like supply and demand mismatch, T and D losses, open access (which acts as a barrier for some states) and many more. In this problem, network management is at the forefront today. There are many discrepancies that cannot be managed by India and in order to overcome them, we need to move towards complete automation. Keywords: Smart Grid, Power Grid Introduction: According to current data, our country ranks 4th in energy consumption after the United States, China and Russia. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get Original Essay If we look at the statistics of India, the growth rate is increasing in 3 years. 2.4 billion people have access to electricity while 1.4 billion still do not have access to it and around 1 billion have access to unreliable electricity networks. The International Energy Agency (IEA) has calculated that India needs an investment of at least $135 billion to provide its population with access to electricity. Power cuts are the main problem in India and the inability of the system to satisfy energy interests has had a negative impact on Indian monetary development [2]-[3]. The increase in the age limit of power between 1950 and 1985 was small compared to that of the created countries. Since 1990, India has been one of the fastest developing electrical markets in terms of electrical age limit. The Indian economy is the ninth largest on the planet in terms of apparent GDP and the third largest in terms of purchasing power equality (PPP).[4] The ability to meet energy needs will depend on India's ability to expand residential creation in core sub-sectors, e.g. oil, petroleum gas and coal, and meet adjustment needs through through imports. In the Indian power division, the central government, state governments and private power bodies have a vital share. With the private division developing the intensity zone at a faster rate. The central government of India and the state governments together control the area in India. To create and maintain an advanced economy and society, economic, social and environmental sustainability are necessary in the future developing vitality model. For effective and social development, the main actors are more essential. Electric energy is the main driver of this process. Regardless, there are energy emergencies in India as well as across the world. In India, the state of power vitality is mainly based on two factors: (a) power grid framework (b) power sources. To address the emergencies of the energy source, sustainable energy sources are used and different types of power plants are to be introduced in the extraordinary areas of the country [5]. Since the climatic conditions in different territories of India are totally different, the power grid is unidirectional. India's electricity grid is substandard. To reduce these inadequacies, the innovation of the “Smart Grid” is necessary. Smart Grid can be achieved through the advancement of innovation, instruments and intelligent management framework. The Smart Grid is an important response to demandsecological, social and political aspects linked to energy supply. The smart grid framework is much more complex than a conventional electricity grid, as energy source variability and unique new loads are incorporated into it. The complexity of smart grids will take time to develop and will require new advances for productive, reliable and secure activity and control as electricity demand increases. The main objective of the Smart Grid is to quickly recognize and correct irregularities in supply and demand and identify the culprits through a “self-healing” process that improves the quality and productivity of administrations .reliability and reduces costs [6]. With cutting-edge innovations, the smart electric power framework will be secure, reliable and bidirectional. The Smart Grid will offer environmentally friendly electrical energy, an excellent source of intensity and a combination of sustainable energy assets. The Smart Grid has two sections1. Smart component2. Smart monitoring system. It will be more restrictive in the activity, control and observation of the electrical energy framework. Continued access to power is the financial and social engine to achieve India's goal. With the need for clean and environmentally friendly energy sources, the rapidly developing economy increases family wages, limits residential stores of petroleum products, and decreases the negative effects on nature of rapid development in urban areas and regional [7]. According to India's Ministry of Power, around 14.1 GW of new thermal power plants are proposed to be under development by December 2012, along with 2.1 GW of hydroelectric power plant capacity and 1 GW of nuclear power plant capacity [8]. India's installed capacity reached the target of 200 GW in 2012. The Indian government has started expanding the education system in India, mainly in the energy sector, to familiarize courses related to adding, to the maintenance and production of energy capacity in the curriculum of educational institutions. National renewable energy agencies have studied the activities undertaken to organize here and now courses in installation, maintenance and operation of renewable energy systems in academic and industrial associations. Chairs on renewable energy have been produced at IIT Roorkee and IIT Kharagpur [9]. Conversion to a smart grid: Generally, the term grid refers to an electrical system that can support the four associated tasks:1. Electricity production,2. Power transmission,3. Power distribution, and4. Power Control A power grid is a group name for all the electrical wires, transformers, and infrastructure that carry electricity from power plants to consumers. Nowadays, the network is unidirectional and there is no need to maximize technological developments. Nowadays, operation relies solely on lateral communication between utilities and users. The flow of energy is unidirectional from power plants to demand. This flow goes from the lower side to the upper side. The current power grid system is shown in Figure (1a). The aim of one of the smart grid is the automation of power systems which include transmission, distribution, substation, individual power supply and customers using the latest and current technologies. When the smart grid was introduced, consumers were able to manage their energy consumption bymonitoring their voltage and power fluctuations. By deploying smart technologies, demand response with load management can improve and make the electricity transmission system more efficient, encourage renewable energy resources and give these facilities to the consumer to control usages and costs. In the current scenario, the Indian government is paying more attention to Smart Grid technology in order to deal with energy crises for future/coming trends. This optimal price or the appropriate price of electric energy is provided to the society from the smart grid. 5. Interactive: Services have been augmented through real-time interaction and response of electricity markets and users. Having integrated nation and built-in reliability coordinates resulting in wholesale operations in the market. 6. Self-healing: This is a new feature of the power grid. The process that improves service quality, improves reliability and also reduces costs. It helps identify faults and reduces the gap between supply and demand to maintain network stability. 7. Flexible and compatible: Helps improve demand management through effective interaction with customers. Now, smart is capable of handling both the reasonable integration of renewable energy resources, distributed generation and smart microgrid. 8. Integrated: a single platform and model are used on a network which helps to achieve good quality of integration and information sharing mechanism of the power network to achieve standards, normative and refined management which helps to the integration of infrastructure, processes, devices, IT market that contributes to effective and efficient use of energy through production, transportation and distribution. COMPONENTS OF THE SMART GRID The components of smart cities are both interdependent and interrelated. The integration of components contributes to reliability, increased efficiency and leads to safety, as shown in fig.3 Smart Meter: a metering device that measures the energy used by the consumer. It provides two-way communication between suppliers and consumers. When there is huge demand, smart meters help utilities communicate with users through email or other communication method, which helps in energy conservation. FUCTIONS OF SMART METER:1 . Respective statistics of multi-period and multi-flow model control, it measures the amount of active power and reactive power. The smart meter should have two-way metering capability and free storage space to store electrical energy.2. Two-way communication is supported, can send information and receive commands, for example, send current energy usage data, obtain real-time information, update meter program, etc. According to demand response requirements, realizes intelligent restraint of overall load. The smart meter and the intelligent smart terminal will cooperate to recognize a smooth transition to a detached system in the event of a power grid failure. Demand response plays a major role in wholesale and retail electricity markets and in achieving a smoother load curve. DR whereby demand will be balanced with resources on the supply side to ensure a cost-effective power system. It must have both supply and demand that meet clear pricing patterns. DSM[10]: Demand management is a process aimed at.