Traditional power markets and an evolution to smart grids

Abstract This chapter provides an opening for the whole book to follow. It describes how, thanks to the growing complexity of today’s globalized world, the traditional grids had to evolve into the so-called “smart grids” which employ a two-way flow of electricity and information to create an automated energy delivery network. In addition, it describes the history of the traditional power markets that preceded the smart grids. It also scrutinizes the classical model based on the principles of supply and demand sides of the market and marks the challenges it had to face and the rules it had to adapt.