The goal of this report is to provide guidance and advice for conducting cost benefit analysis of smart metering deployment.
We present a step by step assessment framework based on the work performed by EPRI (Electric Power Research Institute), and we provide guidelines and best practices.
Several additions and modifications to fit the European context have been proposed. This work draws on the existing collaboration between the EC and the US Department of Energy (DoE) in the framework of the EU-US Energy Council.
The assessment framework is structured into a set of guidelines to tailor assumptions to local conditions, to identify and monetize benefits and cost, and to perform sensitivity analysis of most critical variables. It also provides guidance in the identification of externalities and social impacts tha can result from the implementation of smart metering deployment but cannot be easily motetized and factored into the cost benefit computation.
This study represents the application to the specific case of smart metering deployment of the general guidelines for conducting a cost benefit analysis of Smart Grid projects [EC 2012b].