Smart grid technology has revolutionized the electric utility sector of all developed countries and is now making its entry into the developing nations too. It is basically electricity networks which utilize digital technology and communication systems to distribute and transmit electric power in a more reliable and efficient manner. This technology can go a long way in helping us control global warming and hence has been aptly termed as 'green technology'.

Distribution automation or DA was developed in the recent years to make the smart grid system much more intelligent and thus ensure that all end users receive effective power supply at all times; in addition to this, it can also help to keep the costs down. DA helps to make the distribution part of the electrical smart grid more efficient by operating at a lesser voltage and also provides excessive control over both transmission and distribution equipment. The next level in this technology is the Advanced DA system which can help to control distributed generation and also assist in the real time adjustment of various electrical parameters.

DA technology, when incorporated into the smart grid, can help our households and companies receive real-time pricing (RTP) signals so that we can adjust our power consumption to keep costs low. Information technology and sophisticated communication networks are a part of this technology to enable control of the numerous field devices via a centralized data control room. Closed-loop control of devices, switchers, voltage regulators and capacitors are all ways by which this automated system function.

There are many companies that provide this automated technology for wide scale use in the power sector. Protection of cyber assets becomes a reality with this modern system as it is vulnerable to both internal and external threats, hence regulatory agencies have now put in place detailed management policies and compliance standards which every electric utility company must adhere to.