1

The price tag for a fully functional smart grid in the U.S. could run from $338 billion to $476 billion, the Electric Power Research Institute (EPRI) says in a new report. Wow. But the bonus is that the ROI in terms of benefits could be between $1.3 trillion and $2 trillion. All of this assumes that deployment of smart grid technologies continues steadily through 2030.

 

EPRI's assessment report weighed a pretty broad range of factors: new grid-related technologies, information and communications technologies, market structures, demands of an increasingly digital society, more widespread use of renewable energy and its integration into the grid. It also includes expansion and maintenance of existing infrastructure and security technologies and systems.

 

The project team examined projected costs over the next 20 years, looking at key smart grid technologies in four primary areas: customer interface, distribution, substation and transmission. Then it split the estimates into investment needed to meet load growth and fix deficiencies and investment needed to develop and deploy the technologies to bring us a functionally "smart" power delivery system.

 

The report also says deploying a smarter grid will require a multi-pronged approach: careful policy development, accelerated infrastructure investment, a bigger commitment to public/private research and development and demonstrations to "overcome barriers and vulnerabilities."

 

"This cost assessment factors in new technologies and customer benefits that create a more resilient, self-healing and interactive grid that were not available when the 2004 analysis was completed," said Mark McGranaghan, EPRI VP for Power Delivery and Utilization. In 2004, EPRI's estimate for full smart grid implementation was $165 billion.

 

Maybe we should look at it this way: The interstate highway system cost roughly $500 billion (in today's dollars of course).

 

More on this topic ...

Making the smart grid business case: The ultimate toolkit for distribution automation

Global (smart grid) domination requires better policy, says federation

Download the full EPRI report

Talk Back to the Author

Current Comments (2)

Leave a Comment

---

Eletrical power Merter

I would like to obtain information on electronic meter AC used in consumer units in the system and the importance of power quality

Waldemar Lourenço Ribeiro - 04/08/2011 - 12:34

Meaningless

This study is worthless without the next level of detail. I assume that some renewal is in this estimate but how much. The benefits are all soft – how are they translated into $? Why is the cost almost three times what it was in 2004? The benefits are probably three times as big also – that's the magic of benefits analysis. I don’t think the two estimates include the same thing. Assuming 130m meters (rough estimate) in US that is $3500 per meter cost. Clearly this is not equating Smart Grid to relatively inexpensive Smart Meters (and it shouldn’t be). And benefits of $12000 per meter. I guess that is over the next century. “Potentially” some of these benefits will be from lower costs to the consumer while without doubt the consumer will pay for all the investment. I wonder if the costs of energy generation which people think will increase is in this analysis – I doubt it. None of these numbers make any sense. This is an industry that needs to grow up. It needs to define what is and is not included in Smart Grid, make it clear what is in and out of cost estimates, and clearly define where the benefits are and who will actually benefit. The consumer will certainly not see $12000 in my life time.

Chuck Drinnan - 04/08/2011 - 13:39

Leave a Comment

New to this Blog? Need some help?

Email: [?] We will send you an email with an appproval link you must click for your comment to appear.
Full Real Name:	[?] Real comments need a real name.
Subject:	[?] Please provide a short subject for your comment.
Comment:[?] Do not post commercial/sales messages here. They will be deleted. Try: pr@smartgridnews.com PLEASE NOTE:  All HTML codes will be removed from your comment.
CAPTCHA Security Code The numbers (0) and (1) are not used. [?] Please type the characters you see into the box above.
Remember my name? (Uncheck to forget.)
You can not edit or delete your comment once it is posted. Please check for spelling now. Your IP Address is: 23.22.76.170