A smart grid is a mechanism that uses smart meters and other telecommunication devices to visualize in real-time demand for power in each individual home, business establishment, and other facility and then performs automatic control so that it is possible to supply the necessary power without either a surplus or shortage.
The amount of power generated by distributed renewable energy power generation facilities and the amount of power consumed in daily life and business are grasped in detail in real time in a smart grid. A balance between the two is maintained by managing the charging and discharging of multiple distributed ESS units.
The technology that uses IoT technology to treat multiple power generation facilities and ESS units in a grid as if they were a single power plant and then control the amount of power supplied is called a virtual power plant (VPP).