Smart Grid Solutions in distribution networks Cost/Benefit analysis

Smart Grid Solution (SGS) includes equipment and support tools for efficient control and optimization of electricity distribution networks operation (SCADA/DMS solutions, communication, substation automation, field equipment, etc.). Distribution Management System (DMS) provides dynamic visualization, monitoring and control of electricity distribution network, together with a wide set of power applications for network operation analysis, planning and optimization. In this paper, the benefit of SGS/DMS implementation is investigated and evaluated (e.g. reduction of power losses, reduction of network outage costs and network development costs, improvement of power quality). At the same time, necessary investment in the installation and application of SGS/DMS is considered. Finally, the comparison of benefit and costs is analyzed and relevant conclusions are presented to manifest the profitability of SGS/DMS.