Horizon 2020 strongly emphasizes finding innovative and efficient solutions to address societal changes and enable technological breakthroughs. The design, demonstration and implementation of Smart Grids represents a significant step forward for the electric power infrastructure of the EU by providing increased reliability, efficiency and affordability, while leveraging renewables and other distributed power generation sources. Exploiting advances in a number of technologies, including ICT and power electronics, the Smart Grid methodology has been demonstrated on small scales, but still faces a number of challenges to scale to major cities and beyond. This session will provide a clear definition of Smart Grids and their potential, address the challenges that must be faced in the next years to realize their advantages, and discuss the role that international collaboration will play in the grid's evolution.