Benefits of Smart Grid

The smart grid is expected to provide benefits to Utilities, Consumers & society in the following areas

Area Utility Consumer Society
Improved Reliability
  • Reduced operational cost
  • Increased employee safety
  • Increased revenue
  • Higher customer satisfaction
  • Reduced capital cost
  • Improved level of service with fewer inconveniences
  • Reduced out-of-pocket costs resulting from loss of power
  • Reduction in cost ultimately help keeping the prices of goods and services lower than they would be otherwise
  • Virtual elimination of blackouts
  • Improved infrastructure boosts economic development
Improved Economics
  • opportunities to leverage its resources and enter new markets
  • Increased revenues as theft of service is reduced
  • Improved cash flow from more efficient management of billing and revenue management processes
  • A flatter load profile will reduce operating and maintenance (O&M) costs
  • Downward pressure on energy prices and total customer bills
  • Increased capability, opportunity, and motivation to reduce consumption
  • Opportunity to interact with the electricity markets through home area network and smart meter connectivity
  • Opportunity to reduce transportation costs by using electric vehicles in lieu of conventional vehicles
  • Opportunity to sell consumerproduced electricity back to the grid
  • A more robust transmission grid will accommodate larger increases in wind and solar generation i.e. green energy.
  • Downward pressure on prices — through improved operating and market efficiencies
  • Creation of new electricity markets — enabling society to offer its electricity resources to the market and creating the opportunity to earn a revenue stream on such investments as demand response, distributed generation, and storage
Improved Efficiency
  • Increase asset utilization
  • Reduction in lines losses on both transmission and distribution
  • Reduction in transmission congestion costs
  • Reductions in peak load and energy consumption leading to deferral of future capital investments
  • Increased asset data and intelligence enabling advanced control and improved operator understanding
  • Extended life of system assets through improved asset “health” management
  • Improved employee productivity through the use of smart grid information that improves O&M processes
  • Improved load forecasting enabling more accurate predictions on when new capital investments are needed
  • Reduced use of inefficient generation to meet system peaks
  • Increased capability, opportunity, and motivation to be more efficient on the consumption end of the value chain
  • Increased influence on the electricity market
  • Deferral of capital investments as future peak loads are reduced and more accurately forecasted through the combined efforts of consumers and delivery companies
  • Reduced consumption of KWh’s through conservation, demand response, and reduced transmission and distribution (T&D) losses
Improved Environment
  • Increased capability to integrate intermittent renewable resources
  • Reduction in emissions as a result of more efficient operation, reduced system losses, and energy conservation
  • Opportunity to improve environmental leadership image in the area of improving air quality and reducing its carbon footprint
  • Increased capability to support the integration of electric-powered vehicles
  • Reduction in frequency of transformer fires and oil spills through the use of advanced equipment failure / prevention technologies
  • Increased capability, opportunity, and motivation to shift to electric vehicle transportation
  • Improved opportunity to optimize energy-consumption behaviour resulting in a positive environmental impact
  • Increased opportunity to purchase energy from clean resources, further creating a demand for the shift from a carbon-based to a “green economy”
  • Reduced CO2 emissions
  • Improved public health