Costs and Benefits of Smart Grids on Liberalized Markets

The discussion about smart grid (SG) implementation is mostly focused on pilot projects. These projects are necessary for mapping of particular technical devices of advanced metering management (AMM) which is needed for successful SG and whole functional SG system operation. According to our opinion, for the next step of SG implementation, the participation of effective market design would be quite necessary. In other words, pilot project which is operated regardless to the market conditions and special SG tariff is incomplete and could be irrelevant for further evaluation of feasibility. With regard to above mentioned facts, the detailed cost-benefit-analysis (CBA) is needed to establish the correct methodology for evaluation of SG implementa- tion effectiveness. Related aspects are mentioned and discussed in this paper, in which the particular cost and benefits as well as feedback that occurs as the reaction on implementation are summarized and quantified.