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This paper presents an overview of the current status of the development of the smart grid in Great Britain (GB). The definition, policy and technical drivers, incentive mechanisms, technological focus, and the industry's progress in developing the smart grid are described. In particular, the Low Carbon Networks Fund and Electricity Network Innovation Competition projects, together with the rollout of smart metering, are detailed. A more observable, controllable, automated, and integrated electricity network will be supported by these investments in conjunction with smart meter installation. It is found that the focus has mainly been on distribution networks as well as on real-time flows of information and interaction between suppliers and consumers facilitated by improved information and communications technology, active power flow management, demand management, and energy storage. The learning from the GB smart grid initiatives will provide valuable guidelines for future smart grid development in GB and other countries.