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Developing Novel Technologies and Services for Intelligent Low Voltage Electricity Grids: Cost–Benefit Analysis and Policy Implications

Author

Listed:
  • Alemu Moges Belay

    (Smart Innovation Norway, Håkon Melbergs vei 16, 1783 Halden, Norway)

  • Sanket Puranik

    (Smart Innovation Norway, Håkon Melbergs vei 16, 1783 Halden, Norway)

  • Ramon Gallart-Fernández

    (Estabanell Energia, C. del Rec, 28, 08401 Granollers, Spain)

  • Heidi Tuiskula

    (Smart Innovation Norway, Håkon Melbergs vei 16, 1783 Halden, Norway)

  • Joaquim Melendez

    (Institut d’Informàtica i Aplicacions, University of Girona, Campus Montilivi, 17003 Girona, Spain)

  • Ilias Lamprinos

    (Intracom S.A. Telecom Solutions, 19.7 km Markopoulou Ave., GR-19002 Peania Athens, Greece)

  • Francisco Díaz-González

    (Centre d’Innovació Tecnològica en Convertidors Estàtics i Accionaments (CITCEA-UPC), Department of Electrical Engineering, Universitat Politecnica de Catalunya ETS d’Enginyeria Industrial de Barcelona, C. Avinguda Diagonal, 647, Pl. 2, 08028 Barcelona, Spain)

  • Miha Smolnikar

    (ComSensus d.o.o., Brezje pri Dobu 8a, SI-1233 Dob, Slovenia
    Jožef Stefan Institute, Jamova cesta 39, SI-1000 Ljubljana, Slovenia)

Abstract

The paper presents a set of prototype smart grid technologies and services and validates the economic viability of the proposed solution using cost–benefit analysis (CBA). The study considered the EU-funded project called RESOLVD and implemented the technologies and services in a real-life pilot. The paper focuses on the analysis of technological solutions which enhance the operational efficiency and the hosting capacity of low-voltage electricity distribution grids. The solutions provided better integration of a hybrid battery storage system, with the grid interfacing power electronics, smart gateways for the interconnection of assets at the grid edge, and sensors enhancing infrastructure observability and control. The result from the CBA indicates the economic viability of the project, high scalability, and replicability. The economic benefits were realized with the breakeven value of eight secondary substations (SS) and 16 feeders. The scenario test on the DSO’s willingness to pay for the software as a service (SaaS) revealed that the payback period can further be reduced by almost half with a higher internal rate of return (IRR) and net present value (NPV). Both the CBA and scenario tests showed RESOLVD solution can become more economically viable when deployed in largescale. Moreover, the CBA results provide evidence to the energy policy by allowing DSOs to consider both CAPEX and OPEX for better investment decisions. Further, the paper proposes an alternative business approach that shifts from grid reinforcement to service provision. The paper also discusses the research implications on energy policy and business.

Suggested Citation

  • Alemu Moges Belay & Sanket Puranik & Ramon Gallart-Fernández & Heidi Tuiskula & Joaquim Melendez & Ilias Lamprinos & Francisco Díaz-González & Miha Smolnikar, 2021. "Developing Novel Technologies and Services for Intelligent Low Voltage Electricity Grids: Cost–Benefit Analysis and Policy Implications," Energies, MDPI, vol. 15(1), pages 1-25, December.
    • Handle: RePEc:gam:jeners:v:15:y:2021:i:1:p:94-:d:709764
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    References listed on IDEAS

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    1. Cambini, Carlo & Meletiou, Alexis & Bompard, Ettore & Masera, Marcelo, 2016. "Market and regulatory factors influencing smart-grid investment in Europe: Evidence from pilot projects and implications for reform," Utilities Policy, Elsevier, vol. 40(C), pages 36-47.
    2. Obi, Manasseh & Bass, Robert, 2016. "Trends and challenges of grid-connected photovoltaic systems – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1082-1094.
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