Paper long abstract:

"Smart grids", understood as the integration of advanced information and communication technology into electricity (and other energy) systems, have made a remarkable career on the energy policy arena. In the course of only 6-7 years, the concept has not only managed to enter domestic and international energy debates throughout most of the world, but it has also gained far-reaching acceptance among a wide array of stakeholders, including electricity companies, governments, environmental organizations, regulating agencies and large-scale electricity users. For consumers, however, the smart grid concept often appears incomprehensible and contradictory. In particular, consumers often feel that it is very unclear what problems the new grids will solve. This paper sets out to identify the purpose of smart grids as seen from the perspective of different actors groups. Six different "purposes" of smart grids, as defined by the involved actors, are discussed. More precisely, stakeholders think that smart grids will (1) solve environmental problems; (2) increase security of supply; (3) strengthen the power of consumers; (4) boost utilities' profits and reputation; (5) improve the electricity market; and (6) deepen international relations. Indeed, the paper finds that there is a great extent of contradiction between these different purposes, but that this has not prevented powerful actors from skilfully exploiting the arguments of others in the broader energy policy debate.