Power transmission in Europe is entering a period of significant renewal and technological change because the electrical transmission grids face increases in new and variable energy sources, especially from large scale wind power generators. They therefore face future challenges of operation and control. Changes happening in the process industries will also have an impact on electrical supply because electric motors are taking over from traditional gas turbine drivers for large-scale process equipment such as compressors. On the other hand, new measurement and data acquisition methods such as phasor measurement units are allowing greatly improved observation of the transmission grid. In the light of these changes, there is a need for a new action to give Europe a significant lead in methods for enhanced power transmission system operation using emerging measurement technologies. The REAL-SMART proposal presents a balanced programme of applied R-and-D to address measurement-based monitoring and management of the high voltage transmission grid. It involves electrical transmission system operators, companies that supply technologies and components, and universities. The REAL-SMART consortium is interdisciplinary with experts in electrical power systems, modelling, instrumentation, signal analysis, equipment condition monitoring, and automation of oil & gas processes. The consortium will conduct research and undertake secondments to transfer experience and knowledge both ways between Academia and Industry. The project integrates in-depth understanding of the power system operational issues with analysis of state-of-the-art measurements and first-principles physical knowledge. It will invent and develop state-of-the-art tools that will be deployed by the transmission system operators, and will produce trained and experienced personnel. We aim to take a pivotal role in the creation of technology for intelligent operation of the wide-area transmission grids of the future