Modern cities are becoming more and more dependent on the reliability and efficiency of the electrical distribution infrastructure. In the past few years, a great effort has been devoted to the creation of an integrated infrastructure that combines a resilient power distribution system, distributed generation devices based on renewables (as, for example, photovoltaic panels and wind turbines), a reliable and secure communication system, and real-time energy pricing policies. The resulting infrastructure is called smart grid and constitutes the backbone of the smart city. As noted in [22], "The smart city is all about how the city "organism" works together as an integrated whole and survives when put under extreme conditions" and, moreover: "the energy infrastructure is arguably the single most important feature in any city. If unavailable for a significant enough period of time, all other functions will eventually cease." Hence, developing and implementing a fully functional smart grid infrastructure is a priority for future smart cities.In order to implement a smart grid, at least the following three technical domains must cooperate, namely: (i) power electronics, (ii) information and communication technology (ICT), and (iii) economics.From a power electronics standpoint, the diffusion of distributed energy resources (DERs) poses a number of interesting challenges that the future power distribution grid must face to evolve into a smart power distribution grid. On the one hand, the presence of grid connected DERs (i.e., DC power generators connected to the main power distribution system through grid-tie inverters or capacitor banks) must be carefully handled to maintain acceptable electrical power quality. In particular, voltage sags (overvoltages) due to the switch off (on) of groups of DERs must be avoided. Moreover, harmonic distortion must be minimized, since it is one of the major factors degrading the overall power quality [18]. On the other hand, if the presence