1. IntroductionTo understand the meaning of the benefits that smart grids can bring we must firstly establish our understanding of the concept. Therefore, we begin with the purpose for which smart grids are being installed in the first place. As technologies are progressing faster and faster, the national and global markets have a much higher demand for electricity. For this reason a technology development process is currently under way that would allow us to accomplish a higher performance and a more effective usage of electricity in the electrical grid. In this case the most popular upgrade for electrical grid is the installing of smart grids. A smart grid is an electrical grid, which is being modernized and renewed by installing new technologies, which would allow having a two-way communication between the consumer and supplier. Such smart grid installation of current electrical grid can increase the electricity distribution and reliability, but also save money to both consumer and supplier. For smart grids to meet the standards and to be effective, they have to be sustainable. Sustainable smart grids are those, that meet all three dimensions of sustainable development: (1) are able to work economically and are cost saving, (2) are environmentally friendly, connecting renewable energy sources, and (3) allow users and suppliers to have a two-way communication.In order to simplify the information, electrical networks can be defined as a set of hardware and wiring machines, which connect the power source (e.g. power plant) with consumers and their many needs. Power plants transform the initial form of energy, such as chemical energy stored in coal, glowing solar energy, wind, pressure or energy stored in the nucleus of uranium, into electricity, which is no more than a temporary, flexible and portable form of energy. The most important thing is to remember that electricity is not fuel: it is an energy carrier. In the electricity network and in factories or homes, electricity is converted back into a useful form of energy or activity as heat, light, information processing or torque motors (Amin and Stringer, 2008).The current problems of smart grids, mostly related to countries that have a lower standard of living and haven't developed their electrical grid system are as follows:1) Old (most plants are 35 years old or more);2) Contamination (more than half of the electricity is produced from coal burning);3) Inefficiencies (supplied electrical efficiency is only 35%);4) Instability.This means that the countries that have old electrical grids have a high contamination from being unsustainable (e.g. coal burning), have low electricity efficiency, productivity and are technically unstable. We will further explore why they would have a various advantages from installing smart grids into their electrical grid system (Hicks, 2012).In order to meet the electricity transmission and consumption needs, there has been a need to create and use smart grids. An intelligent network is a complex structural unit communicating with each other as a whole. The network key components are: energy production; transmission and distribution networks; active users; operations center; energy exchange; service, energy storage devices. (Galdikas et al., 2014)Smart networks produce and respond to information in order to create a better electrical system. Smart grid technologies include: switches, sensors, software, timers and many other components, which now allow two-way communication throughout the energy system. These technologies can be placed anywhere on your smart network, starting and ending with power transformer substations, as well as electricity supply lines into consumer homes. Using the information technologies, smart grids can help to save energy, to facilitate the integration of renewable energy and make the electricity grid more durable, more resistant and more reliable (Succar and Cavanagh, 2012). …