Economic valuation of smart grid investments on electricity markets

A Smart Grid System for Reducing Energy Consumption and Energy Cost in Buildings in São Paulo, Brazil

“…Over the past three decades, many countries around the world have adopted policies to improve their electrical systems and combine current energy sources with renewable sources while integrating smart grid technologies to improve the efficiency of the power system and achieve cost reductions [32,33].…”

“…The smart grid of the electrical system in China is focused on mainstream international metering technologies [35] and the development of a low carbon system [36]. Brazil is in a similar situation as China, differentiating itself through intensification of the use of renewable energy [33]. Köktürk and Tokuç [37] show that Turkey needs 6% more energy than the rest of the world and estimates for the following years are that these needs will increase by approximately 50%.…”

“…Reducing energy consumption is also considered as a green attitude that reduces emissions from power generation and transmission, and consequently, also enables the company to acquire carbon credits. which allows them to sell them at a price of 28.73 €/ton CO 2 (US$32.18), and consequently, to a reduction in operating costs, beyond improving the image of the company [25, 26,33].…”

Review of Electricity Markets for Smart Nano-Grids

“…On support of competition side, it can be said that profit is a real motivation for efficiency, good service, availability and better studied and thought investments by which the risk is assumed by the investors and not passed to the consumers (12) . All of these advantages of competition are totally dependent and relative to the adequate regulation established for the electricity supply industry (Figure 2).…”

“…Many schemes of electricity markets do exist as for example the one proposed in (7) which is oriented to the smart grid structure approach, and also on the other hand cases of investigations whose orientation is towards economics which is a defining aspect to consider for any future implementation (12) , or the case in which a smart mini-grid scheme is proposed as a municipal grid for grouping the nano-grids and contribute and participate into the electricity market (20) . Furthermore, there are different scenarios to simulate an electricity market and at the same time the variables taken into consideration differ greatly between the investigations, as for example in the case of (21) where an electricity market is analyzed under a genetic algorithm taking into consideration rated power factor, stochastic load, holding costs, short costs, startup costs and shut down costs.…”