Evaluating the Potential Impact of Smart Grid Funding on Reducing the Economic Impact of Large Outage Events in the United States from 2003 to 2017

Abstract

This paper examines the trends in electrical disturbances and how these trends influence decision-making. Funding for the smart grid from government grants has enabled almost $9.5 billion dollars worth of spending geared toward installing smart meters and self-healing and reconfigurable assets, to increase the resiliency and reliability of the electrical grid. Using Value of Service, we find that the cost of outage events has reduced during the deployment of the smart grid and generated positive net present value, reasonable payback periods, and a respectable rate of return.