Cost-benefit and socio-economic analyses of smart grids and related regulatory policies

In cooperation with the IEA Secretariat and building on metrics and data identified in the Global Smart Grid Inventory and Smart Grid Case Studies Working Groups, this work will analyze the benefits and costs of smart grid technologies, practices, and systems, from both top-down and bottom-up perspectives. From these analyses, toolkits will be developed to inform smart grid policy at global, regional, national, and/or sub-national levels and deployment priorities at project- and utility-scales.

Results could be used to develop specific business cases, taking into account specific regulatory and market structures, as well as current system status, available generation assets and resources and demand profiles. Regulators, utilities and other electricity system stakeholders could use these toolkits to define and decide on system needs and priorities for smart grid system investment and regulatory changes. This work will include the assessment and modification of existing benefit-cost analytical tools as well as the development of new tools. The approach will likely be based on Key Performance Indicators (KPIs) and will consider also methodologies and rules to transpose the experience gained in a particular smart grids development context to other boundary conditions.

Work structure

  • Task 1: Assess Current Network Maturity Model and Update data
    • Subtask 1.1: Trial application of two network maturity analysis tools and results discussion
    • Subtask 1.2: Development of the questionnaire for the assessment of the level of smartness of
      transmission and distribution networks
  • Task 2: Analyze Current Benefit-Cost Analytical Methodologies and Tools
    • Subtask 2.1: Analyzing benchmark benefit-cost frameworks and tools
    • Subtask 2.2: Model research to overcome limit of current BCA frameworks and tools
  • Task 3: Develop Toolkits to Evaluate Benefit-Costs
    • Subtask 3.1: Development of Simplified cost-benefits analysis tool
    • Subtask 3.2: Technical Analysis of current BCA took-kit and Modification of Simplified tool-kit

Published documents from Working Group 3 are found here:

Working Group Manager


Fabrizio Pilo

Università degli Studi di Cagliari

[Lead] ItalyRussia
European CommissionSouth Africa
Republic of KoreaUnited Kingdom
MexicoUnited States

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