The report studied where the benefits and costs of 11 key smart grid applications fell across the electricity value chain from generation to end use and found that the cost of the required investment in smart grids is primarily being made by distribution network operators (DNOs), but the benefits of this investment is being passed on to different elements of the supply chain.
SmartGrid GB is recommending that the Decc and Ofgem smart grid forum investigates further how the costs and benefits of smart grid investment are distributed across the electricity supply network.
SmartGrid GB said utility companies should make investments in automated voltage control, self-healing grid and enhanced fault prevention technologies a priority as these were shown by the report to have ‘overwhelmingly favourable’ cost to benefit ratios out of the eleven applications studied.
SmartGrid GB’s executive director, Rob McNamara said: “This report provides yet further proof that investing in smart grid technologies is the right choice for the UK energy industry, and the wider economy. It gives clear guidance to Utilities about which investments offer the strongest benefits to cost ratios. As we approach the 2015 general election, we call on policymakers in all parties to include plans for smart grid development in their wider energy policy platforms.”