Benefits of smart meters in Russian electricity market

Abstract

Smart metering technologies have become more popular in Europe. The benefits of smart metering are obvious both for different stakeholders, and for the whole energy system. Cost-benefit analysis of smart metering system was implemented for all European countries. However, there is no similar analysis for Russian electricity market. This work aims to consider specific features of electricity market in Russia and conduct a cost-benefit analysis for residential customers from the guaranteeing supplier point of view. Main costs were defined as capital and operational expenditures and main benefits as a profit from demand response, which led to peak demand reduction and decrease in guaranteeing supplier expenses. Results suggest that smart metering system implementation is not economically justified in Russia. However, it can be implemented optionally or subsidized.