Billions for a better grid ... but trillions in benefits
The Electric Power Research Institute (EPRI) estimates that implementing a fully functional smart grid across the US could cost between $338 billion and $476 billion. However, the resulting benefits — in the neighbourhood of $1.3 trillion to $2 trillion — would far outweigh the expense.
The estimate reflects new technologies related to the grid, information, and communication technologies; market structures; demands of an increasingly digital society; more widespread deployment of renewable power production and its integration into the grid; expansion and maintenance of existing infrastructure; and technologies and systems to address grid security.
Among the benefits EPRI identified:
- More reliable power delivery and quality, with fewer and briefer outages;
- Enhanced cybersecurity and safety with a grid that monitors itself and detects and responds to security and safety situations;
- A more efficient grid, with reduced energy losses and a greater capacity to manage peak demand, lessening the need for new generation;
- Environmental and conservation benefits, better support for renewable energy and electric-drive vehicles; and,
- Potentially lower costs for customers through greater pricing choices and access to energy information.
The analysis updates EPRI’s 2004 assessment, which put the cost of implementing a smart grid at $165 billion. The updated analysis assumes steady deployment of smart grid technologies beginning in 2010 and continuing through 2030.
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