Is Your Smart Grid Project Really That Smart?
EURELECTRIC ‘Smartness Barometer’ shows how to evaluate smart grid projects
Smart grids can help tackle Europe’s energy challenges, but how do investors know whether a particular project makes economic sense? The ‘Smartness Barometer’, a new EURELECTRIC report, helps potential investors answer that question by providing a clear method to assess smart grids investments.
The evaluation method consists of seven steps, starting from a description of a project’s goals and leading to a direct comparison of costs and benefits. The paper provides detailed practical examples from the Portuguese InovGrid project, demonstrating how the method can be applied on the ground.
The benefits of this method are clear. It can help distribution companies to evaluate different types of ‘smart’ investments and develop appropriate investment strategies. Investors can easily compare different types of projects in different systems across Europe. The method thus shows which technological solutions work – and which do not.
Finally, and in contrast to other approaches, the method also pinpoints who will benefit from the investment – a useful tool for distribution companies looking to reassure regulators that ‘smart’ grid investments will benefit society at large.