Final answer:
A smart grid differs from a traditional grid by allowing two-way communication and energy flow, enabling distributed power generation and integrating renewable energy sources effectively.
Step-by-step explanation:
The smart grid is a modernized electrical grid that improves the efficiency, reliability, and sustainability of electricity services. It differs from the traditional grid primarily in that it allows two-way communication and energy flow (Option C). Unlike traditional grids, which are typically one-way systems where electricity flows from power stations to consumers, smart grids integrate advanced communication technology to enable a more responsive and interactive grid system. This advanced system can incorporate various power generation sources, including renewable energies such as solar and wind, as well as manage demand and supply effectively. By allowing distributed power generation, smart grids enable households and businesses to produce their electricity with photovoltaic (PV) panels or wind turbines and potentially sell surplus energy back to the grid, making it a highly flexible and efficient system.