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Quick Take: It has been a long time coming, but utilities that need to make the business case for smart grid now have both plenty of examples and a growing roster of tools.

On paper, this looks like one of the most comprehensive of all. It was developed for utilities by a utility-led consortium. Basically, it is a huge and highly customized Excel spreadsheet.

I don't know if you'll want to buy a membership in the consortium just to get access to the tool. But I do think anyone involved with rate cases will benefit from reviewing the consortium's very thorough approach. - By Jesse Berst

The Smart Grid Investment Modelâ„¢, created by the Smart Grid Research Consortium (SGRC), can be used by all utilities as a stand-alone software application or in conjunction with different levels of Consortium staff support. The project included original Excel C++ software development and model applications for 15 utilities.

"Our objective was to incorporate all important technical aspects of smart grid investments in a software package that provides intuitive, meaningful bottom line results for utility decision makers," said Dr. Jerry Jackson, SGRC leader and research director. "We also found that model analysis helps vendors make the business case for their technologies as a result of the more comprehensive cost/benefit analysis framework that recognizes interactions and synergies."

SGRC says the Smart Grid Investment Model, which presents results in an Excel dashboard worksheet, reaches beyond the limitations of current utility business case software. Here are some highlights of the investment model's capabilities:

·         recognizes current utility metering, communications, IT and other infrastructure

·         provides utility-specific customer class, end use hourly load impact analysis

·         evaluates avoided power costs and capacity investments

·         includes all key distribution system investment areas

·         recognizes often overlooked costs such as management reengineering costs and reliability valuations

·         includes electric, water and gas systems and non-utility benefits

·         permits individual technology and program selection and combinations

·         provides a summary and detailed financial analysis, tables and charts

Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.

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