A systematic review of environmental and economic impacts of smart grids

Cost/benefits; Electricity grid; Energy efficiency; GHG emissions; ICT; Smart grid; Cost effectiveness; Cost estimating; Cost reduction; Costs; Decision making; Economic and social effects; Electric power transmission networks; Emission control; Energy conservation; Environmental impact; Environmental technology; Greenhouse gases; Investments; Smart power grids; Electricity grids; Environmental analysis; Environmental and economic impacts; Environmental evaluation; GHG emission; Primary energy savings; Standardized methods; Cost benefit analysis

Abstract :

[en] Smart grids (SGs) have a central role in the development of the global power sector. Cost-benefit analyses and environmental impact assessments are used to support policy on the deployment of SG systems and technologies. However, the conflicting and widely varying estimates of costs, benefits, greenhouse gas (GHG) emission reduction, and energy savings in literature leave policy makers struggling with how to advise regarding SG deployment. Identifying the causes for the wide variation of individual estimates in the literature is crucial if evaluations are to be used in decision-making. This paper (i) summarizes and compares the methodologies used for economic and environmental evaluation of SGs (ii) identifies the sources of variation in estimates across studies, and (iii) point to gap in research on economic and environmental analyses of SG systems. Seventeen studies (nine articles and eight reports published between 2000 and 2015) addressing the economic costs versus benefits, energy efficiency, and GHG emissions of SGs were systematically searched, located, selected, and reviewed. Their methods and data were subsequently extracted and analysed. The results show that no standardized method currently exists for assessing the economic and environmental impacts of SG systems. The costs varied between 0.03 and 1143 M€/yr, while the benefits ranged from 0.04 to 804 M€/yr, suggesting that SG systems do not result in cost savings The primary energy savings ranged from 0.03 to 0.95 MJ/kWh, whereas the GHG emission reduction ranged from 10 to 180 gCO2/kWh, depending on the country grid mix and the system boundary of the SG system considered. The findings demonstrate that although SG systems are energy efficient and reduce GHG emissions, investments in SG systems may not yield any benefits. Standardizing some methodologies and assumptions such as discount rates, time horizon and scrutinizing some key input data will result in more consistent estimates of costs and benefits, GHG emission reduction, and energy savings. © 2016 Elsevier Ltd

Disciplines :

Business & economic sciences: Multidisciplinary, general & others

Author, co-author :

Moretti, Michele ; Universiteit Hasselt - UH > Business Economics > Environmental Economics

Djomo, S. N.; Hasselt University, Faculty of Business Economics, Centre for Environmental Sciences, Martelarenlaan 42, Hasselt, 3500, Belgium, Aarhus University, Department of Agroecology, Blichers Alle 20, P.O. Box 50, Tjele, DK-8830, Denmark

Azadi, H.; Hasselt University, Faculty of Business Economics, Centre for Environmental Sciences, Martelarenlaan 42, Hasselt, 3500, Belgium

May, K.; KU Leuven–EnergyVille, Department of Electrical Engineering, Kasteelpark Arenberg 10, Leuven, 3000, Belgium

De Vos, K.; KU Leuven–EnergyVille, Department of Electrical Engineering, Kasteelpark Arenberg 10, Leuven, 3000, Belgium

Van Passel, S.; Hasselt University, Faculty of Business Economics, Centre for Environmental Sciences, Martelarenlaan 42, Hasselt, 3500, Belgium, University of Antwerp, Faculty of Applied Economics, Department of Engineering Management, Prinsstraat 13, Antwerp, B-2000, Belgium

Witters, N.; Hasselt University, Faculty of Business Economics, Centre for Environmental Sciences, Martelarenlaan 42, Hasselt, 3500, Belgium

Language :

English

Title :

A systematic review of environmental and economic impacts of smart grids

Publication date :

2017

Journal title :

Renewable and Sustainable Energy Reviews

ISSN :

1364-0321

eISSN :

1879-0690

Publisher :

Elsevier Ltd

Volume :

Pages :

888-898

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 15 October 2019

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