This section drafts a hypothetical public-private investment plan with regard to the installation of a “Smart Grid” functionality on the distribution (Medium and Low Voltage) networks, which entails the installation of smart metering infrastructure as well as building a telecommunications infrastructure. Smart grid infrastructure offers the unique possibility to exploit significant synergies between the electricity and ICT. These synergies relate to:
The installation of Smart Grid applications, entails building a telecommunications infrastructure. Using BPL technology, the capacity of this network is in the order of 100 Mbits/sec of which only a fraction is required even for the most sophisticated Smart Grid Application. The spare capacity can be utilized by an alternative telecommunications operator to reach the customer bypassing the incumbent telecoms operator’s broadband access network.
The utilization of the spare capacity of the broadband access network over and above the needs of the utility for Smart Grid applications encapsulates the value of the synergies between the two businesses. These synergies are above and beyond the benefits to be realized by implementing the smart grid applications themselves, which are substantial. Our estimates, which are extremely conservative, lead to a Net Present Value for the project in the order of 165 Million Euros.
In addition, by building an alternative telecommunications infrastructure, HEDNO will be able to apply the provisions of Directive 17/2004 and proceed to construct the network without the need for time and resources consuming public tender processes.