Energy distribution has mainly been a domain of power electronics, but not of industrial communication systems in the past. However, in the light of climate change and strong eorts to reduce CO2 emissions, the concept of “smart” energy distribution and “smart power grids” has emerged. Such smart grids are deŸned through the combination of power and information as well as communication technology, whereas the latter allow smart control algorithms to be applied. žis chapter describes the motivations, drivers, developments, and implications of smart grids.@en