Effects of smart grid technologies on capacity and energy savings – A case study of Oman

• Load management (LM) long-term avoided cost benefit of smart grid is estimated.
• Savings include avoided generation, T&D capacity and losses, and emissions.
• Study concludes that LM benefit alone can outweigh the grid upgrading cost.

This paper presents a methodology and the results of a study carried out to evaluate the long-term load management benefits of smart grid in terms of avoided cost of generation, transmission and distribution in Sultanate of Oman. The avoided transmission and distribution (T&D) capacity cost is calculated indirectly using the concept of asset distribution in a power system. The savings in transmission and distribution losses and environmental benefits are also estimated. These benefits are then compared with an estimated cost of upgrading the grid to make it smarter. The results have shown that the long-term load management benefits of smart grid could outweigh the cost of upgrading the grid to make it smarter.