This paper presents the importance, issues and challenges related to Smart Grid. It also evaluates various approaches for Smart Grid planning and operation. It discusses tools for asset management and their applicability to the next generation grid. Aging assets, uncertainty in load demand profile and renewable energy resources, and demand management create a challenge for the optimal operation and maintenance of electrical grid. This paper addresses the challenges and opportunities to improve transmission and distribution systems asset maintenance. This paper also presents the asset replacement alternatives. This paper also presents the cost-benefit analysis of asset management using the information/real time data from the utility company. This paper will serve a guide for doing the asset management to the electrification process, investment and recovery to sustain reliable and efficient power delivery
