Smart Grid Economics: The Cost-Benefit Analysis

In this article for Renew Grid magazine, Dr. Michael Sullivan and Josh Schellenberg conceptualize a framework for estimating the reliability benefits associated with smart grid investments.
The key challenge in developing this framework lies in adopting practical rules for assessing the economic value of service reliability. The proposed framework in this article can be implemented by many utilities because it relies on well-established reliability statistics that are collected on a routine basis (e.g., SAIFI, CAIDI, SAIDI). This article summarizes a report that FSC prepared for the National Association of Regulatory Utility Commissioners (NARUC) as part of the State Electricity Regulators Capacity Assistance and Training Program (SERCAT). To read the full report and learn more details on the proposed framework, see "How to Assess the Economic Consequences of Smart Grid Reliability Investments."

Read the Renew Grid article.