The European Commission presented through its Joint Research Centre a set of guidelines for conducting cost-benefit analysis (CBA) of smart grid projects. The guidelines are based in a JRC study that serves as key input to the definition of an eligibility assessment framework for "common interest" smart grids projects.

The guidelines for conducting cost-benefit analysis (CBA) of smart grid projects were presented by the Joint Research Centre. The report extends to smart grids the recent JRC work on guidelines for CBA of smart metering deployment, which served as a technical basis for the European Commission Recommendation on smart metering deployment, adopted in March 2012. EU action on smart meters for more savings, was the theme choose by the Commission for the EU Sustainable Energy Week 2011.

The report presented by the Commission aims to provide insights to choose key parameters; a systematic approach to link deployed assets with benefits; formulae to monetise benefits; and an indication of the most relevant cost categories. These features are aimed at proposing an approach to the cost-benefit analysis which comprises the definition of boundary conditions (e.g. demand growth forecast, local grid characteristics) and of implementation choices (e.g. roll-out period, chosen functionalities); the identification of costs and benefits; and a sensitivity analysis of the CBA outcome to variations in key variables/parameters (e.g. discount rate, peak load transfer).

According to the Commission, Smart Grids are a key component of the European strategy towards a low-carbon energy future. The study thus serves as key input to the definition of an eligibility assessment framework for "common interest" smart grids projects, according to the provisions of the Commission's proposal for a regulation on guidelines for trans-European energy infrastructure.