The document discusses key trends impacting the global energy system including rising population, increased energy demand, and growing CO2 emissions. It notes the need to expand electricity access to 1.6 billion people currently without it. Smart grids are presented as an evolution of electrical systems that can help optimize asset utilization, reliable operations, and cost savings through increased measurement, communication, and control across generation, transmission, distribution and consumption. Transmission systems and interconnections in particular need smart grid upgrades and technologies like FACTS devices to maximize existing infrastructure utilization and accommodate greater renewable energy. Distribution systems also require upgrades to integrate distributed generation on a large scale.