The Economic, Social and Technological Origins of Smart Power Grid

This paper is aimed at dissecting the technological nature of the smart power grid and explaining the origins of its emergence. For this purpose, firstly, the conventional and smart power grid are briefly explained and secondly their differences are described. Then, in order for providing a basis for analyzing the transformation of the power grid from the conventional to the smart one, the theories describing technological changes are reviewed. After that, the best theory which explained the technological nature of the smart power grid is selected. It provides a framework for determining the transition from conventional to smart power grid. It is explained that reverse salient concept has a very good capability for determining the foundations and necessities of smart power grid. It will be discussed that smart power grid is a response to incapability of current power infrastructure in facilitating the mass application of new technologies such as electric vehicles and renewable technologies (solar panel, wind turbine, etc.). Also, it is claimed that the emergence of smart power grid can be attributed to the necessity of finding new spaces for capital accumulation.