Energy Grid

Definition ∞ An energy grid is a complex network that generates, transmits, and distributes electricity to consumers. This infrastructure includes power plants, transmission lines, substations, and local distribution networks, working in concert to provide reliable electrical power. Modern grids are becoming increasingly digitized, incorporating smart technologies for improved efficiency, stability, and integration of renewable energy sources. The system must continuously balance electricity supply with demand to prevent outages.
Context ∞ The energy grid is a frequent topic in cryptocurrency news due to the substantial power demands of certain blockchain consensus mechanisms, particularly Proof of Work mining. Debates often concern the environmental impact of energy consumption and the potential for blockchain technology to enhance grid management and efficiency. Future developments involve integrating decentralized energy solutions and optimizing energy use for sustainable digital asset operations.