Cost-benefit analysis on smart meter projects : lessons from case studies

Abstract

Smart meters are installed in buildings as energy efficiency measures in smart cities. The benefits and costs of the smart meter projects have been evaluated in many countries, such as the monetary saving arising from Time-of-Use (ToU) pricing, the reduction of CO2 emissions, and the facilities installation expenses. Different issues of public concern about smart meters have been discussed in the literature, including the potential health issues, the digital display problem, and the effects on energy saving and environmental protection. This study includes case studies on smart meter projects in Great Britain (GB) and Canada, and illustrates the problems encountered in the progress of the smart meter implementation projects. Through describing the manners of evaluating the pros and cons of smart meter projects and depicting the application of relevant Cost-Benefit Analysis (CBA) framework and components, this research shows the necessity of CBA in smart city projects affecting the citizens to a large extent. As a review study, useful experience has been gathered from the case studies for sharing, and recommendations for improvement in future projects are discussed in this paper. Further, the wide application potential of Information and Communication Technologies (ICT) should receive sufficient concern and recognition in the cost and benefits studies of smart city arena.