This is a key risk area that must be addressed for successful implementation. In this context, it is worth briefly reviewing conventional methods of cost-benefit analysis and mechanisms for cost recovery with a greater focus on the consumer side of the equation, as the underlying values and processes will inform new cost allocation methods for smart grid investments.

ISGAN brings the experience and perspective of the global Smart Grids community together in this paper in order to increase understanding of the costs and benefits of smart grids from a consumer perspective, so that they may be communicated more widely and more effectively.

This paper, authored by Annex 4: Synthesis Insights for Decision Makers, attempts to address these issues across a range of likely possible smart grid configurations and market structures, while acknowledging that many other technology configurations are possible. In light of the continuing evolution of the smart grid, cost allocation will be an ongoing subject of ISGAN research and analysis, and this white paper aims to provide a framework for this ongoing analysis.

The need for new balancing resources and for a “seamless grid” capable of integrating both large-scale and small distributed energy resources (DER) are among the driving forces of smart grid development. Smarter grids are an important enabling tool for achieving higher penetrations of VRR on transmission and distribution networks. Depending upon the relative share and geographic distribution of large-scale and DER resources, various technologies, regulations, and policies are required to support high levels of VRR generation. In this context, policy makers will benefit from an understanding of how smart grid technologies contribute to VRR integration, and all stakeholders will benefit from increased alignment between smart grid development roadmaps and national and regional visions for renewable energy development.

The objective of this report, authored by Annex 4: Synthesis Insights for Decision Makers, is to give insights for decision makers on the various contributions of smart grid systems in achieving VRR integration. A variety oftools and solutions exist for achieving high penetrations of VRR generation, and the smart grid solutions outlined in this report are considered alongside a range of integration best practices.

Significant policy gaps exist in the field of grid cyber security, and ISGAN is well-positioned to convene stakeholders and foster discussion to advance best practices that support innovation while protecting critical infrastructure and consumer data privacy. This report, authored by Annex 4: Synthesis Insights for Decision Makers, identifies key issues in cyber security policy design, and suggests potential collaborations for the ISGAN membership.