Profitability of smart grid solution application in distribution network

Efficient control and operation optimization of electricity distribution networks requires advanced hardware equipment and software tools like SCADA/DMS systems, communication, substation automation, field equipment, etc., altogether known as Smart Grid Solution (SGS). Specifically, Distribution Management System (DMS) provides dynamic visualization, monitoring and control of electricity distribution network, together with a wide set of power applications for network operation analysis, planning and optimization. In this paper, the profitability of SGS/DMS implementation is analyzed and evaluated (e.g. reduction of power losses, reduction of outages, delayed development, improvement of power quality, etc.). Necessary investments in the installation and construction of SGS/DMS are considered and the comparison of benefit and costs is provided. Relevant conclusions are presented to manifest the profitability of SGS/DMS. (6 pages)