Benefits of smart grid solutions in open electricity markets

Abstract

Smart Grid Solutions include different technologies to improve the efficiency of electricity distribution network operations (e.g. distribution automation systems, smart metering, home automation and demand response solutions). The benefits arising from the implementation of distribution automation systems are investigated and evaluated in this article (e.g., the reduction of power losses and the reduction in outage costs and network development costs), taking into consideration the environment of an open electricity market. The investment costs and operation and maintenance costs for the deployment of such systems are analysed as well. Finally, a comparison of the benefits and costs is provided, and relevant conclusions to achieve profitability of the distribution automation systems are considered.