A typical electric utility can expect smart grid technology to generate at least $110 million per year through a wide range of benefits, from increased rate of return to lowered carbon emission to new jobs creation, according to this landmark analysis conducted for UTC by The Shpigler Group. The study calculated the economic impacts of a comprehensive smart grid deployment for a typical utility that installs one million electric meters.
Through the creation of a sophisticated financial model, the analysis showed that with smart grid technology:
- System reliability is increased from 99.48% to 99.75%, reducing outage minutes by 16.8 million customer minutes
- Nearly 300,000 tons of carbon emissions are eliminated on an annual basis
- The internal rate of return for the smart network program is calculated at 13.8% without accounting for the value customers may place on the increased reliability of the electric grid; when factoring in these benefits, internal rate of return exceeds 35%
- System benefits calculated by the end of a ten-year forecast period are likely to exceed $110 million per year.
Utilities can use this groundbreaking analysis to help guide their own smart grid deployments while vendors can gain useful insight into how their products and services fit into utility deployment plans. Moreover, both utilities and vendors can use this report as a launching pad for more custom-tailored analysis by UTC and the Shpigler Group for use in technology planning, marketing and smart grid deployment forecasting. For more information, contact Cynthia Brumfield at: firstname.lastname@example.org.