Social costs and benefits of smart grid technologies

This study was commissioned by The Swedish Smart Grid Forum, The International Smart Grid Action Network (ISGAN) and The Swedish Energy Market Inspectorate. The purpose of the report is to provide investors with decision support to evaluate investments in smart grid technologies, in order to advance implementation.

Smart grid technologies represent different ways to enhance the effectiveness of the power distribution and transmission system by making it possible to use existing power infrastructure more efficiently. Implementation of smart grid solutions could for instance, represent an alternative to investment in new power generation capacity or new power lines.

Many new smart grid technologies are available, but not yet deployed. In order to advance implementation, governments and other investors need decision support to evaluate investments in smart grid technologies.

Cost-benefit analysis (CBA) offers a systematic process for comparing the advantages and disadvantages of a smart grid initiative from society perspective.