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Abstract: To many, a lot of secrets are at the bottom of the often-cited catchphrase “Smart Grid”. This article gives an overview of the options that information and communication technology (ICT) offers for the restructuring and modernisation of the German power system, in particular with a view towards its development into a Smart Grid and thus tries to reveal these secrets. After a short outline on the development of ICT in terms of technology types and their availability, the further analysis highlights upcoming challenges in all parts of the power value chain and possible solutions for these challenges through the intensified usage of ICT applications. They are examined with regard to their effectiveness and efficiency in the fields of generation, transmission, distribution and supply. Finally, potential obstacles that may defer the introduction of ICT into the power system are shown. The analysis suggests that if certain hurdles are taken, the huge potential of ICT can create additional value in various fields of the whole power value chain. This ranges from increased energy efficiency and the more sophisticated integration of decentralised (renewable) energy plants to a higher security of supply and more efficient organisation of market processes. The results are true for the German power market but can in many areas also be transferred to other industrialised nations with liberalised power markets. [Copyright &y& Elsevier]

• Scenario-based simulations with EnergyPLAN based on Choice Awareness Theory. • Evaluation of recent coal power phase-out plans on annual and hourly bases. • Decarbonising effects of the coal phase-out and electrolytic hydrogen production. • Analysing the coherence of phase-out policies and low carbon technology diffusion. We analyse whether Germany will fall short of the country's decarbonisation targets. Bearing this potential failure in mind, the present study investigates technological options and their effectiveness for decarbonising the energy system from a systemic perspective. We consider the country's coal phase-out, the increasing amounts of electricity from renewable energy sources, more efficient heating concepts as well as the evolving of smart charging infrastructures and large-scale storage options. Based on the declared plans of the federal authorities and alternative proposals of environmental associations, ten distinct decarbonisation scenarios for the period from 2020 to 2030 form the basis of our models. Using the Energy PLAN simulation tool, annual and hourly performance indicators were computed in order to evaluate the effectiveness of decarbonisation measures. In particular, we examine the increasing usage of electrolysers for both the absorption of excess electricity and the production of hydrogen as a substitute for fossil fuels in relation to the timing of the coal phase-out. Pursuing this approach, we demonstrate the coherence between coal phase-out policies and low carbon technology diffusion. Our findings reveal that implementing the coal phase-out earlier than has been scheduled by the country's Commission on Growth, Structural Change and Employment mitigates the non-achievement of the decarbonisation targets. Moreover, our results suggest the upscaling of domestic electrolyser capacity to up to 9554 MW by 2030. [ABSTRACT FROM AUTHOR]