Analysis of the World Experience of Smart Grid Deployment: Economic Effectiveness Issues

Abstract

Despite the positive dynamics in the growth of RES-based power production in electric power systems of many countries, the further development of commercially mature technologies of wind and solar generation is often constrained by the existing grid infrastructure and conventional energy supply practices. The integration of large wind and solar power plants into a single power grid and the development of microgeneration require the widespread introduction of a new smart grid technology cluster (smart power grids), whose technical advantages over the conventional ones have been fairly well studied, while issues of their economic effectiveness remain open. Estimation and forecasting potential economic effects from the introduction of innovative technologies in the power sector during the stage preceding commercial development is a methodologically difficult task that requires the use of knowledge from different sciences. This paper contains the analysis of smart grid project implementation in Europe and the United States. Interval estimates are obtained for their basic economic parameters. It was revealed that the majority of smart grid implemented projects are not yet commercially effective, since their positive externalities are usually not recognized on the revenue side due to the lack of universal methods for public benefits monetization. The results of the research can be used in modernization and development planning for the existing grid infrastructure both at the federal level and at the level of certain regions and territories.