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Document Number CLNR-L144

Date Posted 22-Jan 2015

Cost Benefit Assessment of the Customer-Led Network Revolution Project


The aim of this report is to estimate the overall cost benefit to the UK economy achieved through implementation of the Customer-Led Network Revolution (CLNR) project through the period 2015 – 2050. The initial project business case gave benefits from 2020 -2050 so as well as calculating the benefits through ED1 to ED4 the benefits gained in 2020 – 2050 are also calculated. To achieve this aim we will look at the economic cost benefit of each individual smart technology installed in the CLNR trial and also calculate the overall impact of the programme, when all the technologies are implemented simultaneously.

Whilst summary details of the performance of the technologies are given here, this report is not intended to be a detailed discussion of the benefits of the smart technologies tested. For in depth discussion of the performance of these technologies reference should be made to the report Optimal Solutions for Smarter Distribution Systems and the Post Trial Analysis reports produced by Newcastle University. 

The original GB-wide Cost-Benefit Analysis (CBA) for CLNR was calculated using a spreadsheet methodology. Since submission of the original bid, this spreadsheet methodology has evolved and has been developed into a computer model for assessing the network cost benefit of Smart Grid technologies. This model is now in use by all the GB DNOs to calculate projected smart grid costs and network benefits versus ‘Business as Usual’ (BAU). The benefits are assessed assuming future scenarios for electricity use as laid down by DECC to satisfy the fourth Carbon Budget.

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