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As the electric grid transitions from the traditional design to the design of the future, new features and technologies must be incorporated. Increasing communications and computing capabilities are transforming power grid from the traditional centralized model to an integrated hybrid centralized/decentralized system. Therefore, society and the power industry in particular are challenged by the transformation of the power grid, as introduced by Nikola Tesla about 120 years ago, into a Smart Grid.

Figure 1.3 depicts an electric power grid that is evolving to include more distributed control, two‐way flows of electricity and information, more energy storage, and new market participants including consumers as energy producers.

Figure 1.3 Evolution of the electric power grid.

Source: [DOE 2015a]. Public Domain.