The Australian Government has chosen Ausgrid to lead a $100 million initiative across five sites in Newcastle, Sydney and the Upper Hunter regions (see Figure 1). Smart Grid, Smart City creates a testing ground for new energy supply technologies. At least 30,000 households will participate in the project over three years. The demonstration project gathers information about the benefits and costs of different smart grid technologies in an Australian setting. Building a smart grid involves transforming the traditional electricity network by adding a chain of new, smart technology. It includes smart sensors, new backend IT systems, smart meters and a communications network.