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The Smart Grid provides systems to gather and act on energy and power‐related information in an automated fashion with the goal of improving the efficiency, reliability, economics, and sustainability of the production and distribution of electricity. Using advanced metering infrastructure (AMI) devices connected to the Internet backbone, electric utilities can not only collect data from end‐user connections but also manage other distribution automation devices like transformers and reclosers. Figure 2.2 shows an application involving a smart meter with capabilities as an intranet of things and a smart meter as part of the IoT.

Figure 2.2 A smart meter application in two scenarios.

Source: [Roman 2011]. © 2011, IEEE.

In the intranet‐of‐things scenario (left), the meter interacts only with SCADA system. In the IoT scenario (right), the meter interacts with the SCADA system, household members, other houses, and emergency personnel.