SmartGrid GB’s “Smart Grid: A race worth winning” report looks at the core and wider benefits of smart grid development, detailing its expected cost versus traditional reinforcements to the network in order to meet the government’s Carbon Plan. The scenarios were based on the DECC/Ofgem Smart Grid Forum evaluation framework.
It finds that the savings from deploying smart grid infrastructure could be significant – up to £19 billion NPV between 2012 – 2050.
Importantly, the benefits remain as high as £10 billion even if lower levels of decarbonisation and electrification are deployed.
There is a potential downside to starting now – £0.2 billion to £1billion – as opposed to starting in 2023.
This is largely due to the assumption that the majority of electric vehicle and heat deployment will occur after 2023, implying that there will be only limited benefits from deploying smart grids before this date.