This staff working paper presents the expected services, functionalities, and benefits that result from Smart Grid demonstration and implementation. To facilitate the widespread implementation of Smart Grid, the Commission proposes to focus on: 1) developing technical standards; 2) ensuring data protection for consumers; 3) establishing a regulatory framework to provide incentives for Smart Grid deployment; 4) guaranteeing an open and competitive retail market in the interest of consumers; and, 5) providing continued support to innovation for technology and systems. These priorities are described in detail in the report.