It is justified to ask why something potentially offering such benefits as Smart Grids seem to do, is not yet in place. As will be discussed in this chapter, this is due to the fact that many conditions must be fulfilled in order to really reap benefits of Smart Grids; if this is indeed the case, benefits can indeed be substantial. In order to get grip on the broad concept of Smart Grids and its interaction with wind power and its system integration, first some definitions of the Smart Grid concept will be analyzed. Thereafter, the reasons for considering Smart Grids are discussed and the question why Smart Grids presently attract so much attention whereas throughout the last century the topic was hardly known, is debated. In the next section, three different Smart Grid concepts are treated and the analysis of each of the three concepts is focused towards their relation with wind power. Finally, practical examples are discussed.