The document provides an introduction to smart grids. It discusses how smart grids enable two-way communication between utilities and customers as well as integration of renewable energy sources. Key components of smart grids include smart meters, phasor measurement units, distributed generation, and information transfers. Smart grids provide benefits like improved efficiency, reliability, and support for renewable energy while also posing challenges around security and complex rate systems. India has several smart grid pilot projects underway to modernize its electrical infrastructure.