The energy sector is undergoing some fundamental changes. The implications of smart grid technology for electricity grids is as yet unknown. This paper presents the results of a graduation research project exploring developments in smart grids carried out at Endinet. A general exploration constitutes the first phase of the project. It entails a broad study of all aspects of smart grids. Based on the insights gained during this exploration, possible implications for the expected future development of the Eindhoven electricity demand are researched. This is done through the development of a realistic worst‐case scenario for electricity demand for Eindhoven in 2040. Using the results from this scenario an estimate of the investments needed in the network to maintain operational quality at the current level under the 2040 scenario loads is drawn up.