Modern civilization is heavily dependent on a secure supply of electricity as it is the most efficient medium for energy transmission and distribution. However, that grid infrastructure has grown old and been challenged to meet expected security, reliability and, quality of supply. The decentralized demand for electricity has been reaching beyond the centralized transmission capacity and the primary sources of centralized energy production, such as coal and oil, have been responsible for dramatic increases in atmospheric CO2 concentrations. The transformation from the conventional power grid to a decarbonized, smart and modernized power grid brings many challenges. In smart grid, the expected higher share of renewable energy will cause the system net demand to be largely variable, uncertain, and highly ramping. Transformation of conventional power grid towards SG is an urgent requirement to reduce our carbon footprint. With this transformation, the power grid will be able to safely accommodate distributed energy resources and energy efficiency measures.