SmartGrid GB is proud to be launching our latest benefit-cost report into smart grid develoment today. The report entitled ‘Making smart choices for smart grid development’, finds that smart grid development can deliver £2.8 billion of net present value (NPV) to Britain’s economy by 2030.
The report examines eleven key smart grid applications, with an emphasis on where the benefits and costs fall across the electricity value chain, from generation to end-use.
To download the report, click on the link in the left hand column of this article.
Rob McNamara, Executive Director of SmartGrid GB, commented: “This report provides yet further proof that investing in smart grid technologies is the right choice for the UK energy industry, and the wider economy. It provides clear guidance to Utilities about which investments offer the strongest benefits to cost ratios. As we approach the 2015 general election, we call on policymakers in all parties to include plans for smart grid development in their wider energy policy platforms.”
Three technologies in particular are found to have overwhelmingly favourable benefit to cost ratios: Automated Voltage Control; Self-Healing Grid and Enhanced Fault Prevention technologies. SmartGrid GB encourages Utilities to explore investment in these technologies as a priority.
In addition, the report identifies the challenges currently facing smart grid development, and makes recommendations on how they can be overcome. One specific issue highlighted relates to the cost burden placed upon distribution network operators (DNOs) for making certain smart grid investments, when in reality the benefits they deliver are passed on to different parts of the supply chain. SmartGrid GB recommends that the DECC/Ofgem smart grid forum should investigate further the distribution of costs and benefits of smart grid investments across the electricity delivery supply chain.
Ian Smyth, Managing Director of Navigant Consulting’s UK Energy Practice, the company responsible for producing the report commented: “A smarter grid enables us to transform the way consumers think about their energy consumption, the amount they pay and the choices they have. Analysis of the costs and benefits of specific smart grid technologies encourages the market and helps companies, regulators and governments to deliver these benefits faster and more efficiently.”