Do smart grid systems have cost/benefit analysis problems?

Performing cost/benefit analysis on Smart Grid systems poses interesting and challenging problems in measuring physical impacts and estimating economic benefits from them. However, when the Smart Grid systems are part of first-of-kind or demonstration projects, there are additional challenges to producing meaningful cost/benefit analysis.

Who can perform cost/benefit analysis for smart grid demonstrations?

Engineers, planners, project managers, and other professionals can perform cost/benefit analysis for Smart Grid demonstrations by following the steps listed in the complete guidebook. Any project stakeholder involved in the process of defining specific values related to Smart Grid technology implementation will find value in its methodology.

Do developing countries need a cost-benefit analysis methodology for Smart Grid project evaluation?

Several methodologies exist for economic evaluation of smart grid projects. However, developing countries can benefit from a customised methodology for smart grid project evaluation. This report provides a cost-benefit analysis (CBA) methodology that is designed for developing countries.

How do you assess the value of smart grid investment?

Assessing the value of Smart Grid investment must address the functions it enables, as well as the value that it provides directly. Engineers, planners, project managers, and other professionals can perform cost/benefit analysis for Smart Grid demonstrations by following the steps listed in the complete guidebook.

How are smart grid project costs calculated?

Smart grid project costs can be estimated using published data and/or vendor estimates. The uncertainties are generally smaller than for benefit-side estimates, although qualitative and project implementation costs are project-specific and thus may require additional analysis. Combining costs and benefits is a straightforward financial calculation.

Should Smart Grid projects be evaluated on an economic basis?

Smart grid projects are often evaluated and justified on an economic basis. The challenge for decision-makers (which can be utilities, policymakers, or others) is to evaluate smart grid proposals rigorously, objectively, and with a well-defined and consistent methodology.