Costs and Benefits of Smart Grids and Accumulation in Czech Distribution System

In our opinion, this public debate about Smart Grids (SG) ignores some important aspects of its real implementation. The most important aspect is realistic cost benefit analysis (CBA) which can be seen as a correct methodology for investment efficiency valuation. Our proposed methodology for CBA for SG implementation is mentioned and discussed in this paper. According to our research involvement of brand new customer tariffs show up to be necessary inputs for CBA. It is truth that some pilot projects for mapping of particular technical devices are today in experimental operation. These projects does not use any cpecial smart tariff, which is according to us also incorrect. In other words pilot projects which are operated regardless to the market conditions and smart tariffs are therefore incomplete and not viable. In more detail our paper collects basic information about costs and benefits of SG implementation and these information are utilized by the means of our systematic approach. The SG implementation process is explained by our methodology as a system with feedback. Finally the proposed methodology is applied and proven on a specific case of electricity accumulation in the environment of Czech Republic. (C) 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of University of Electronic Science and Technology of China (UESTC).