DOCSLIB.ORG

Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: a Summary for State Offi Cials

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: a Summary for State Offi Cials National Council on Electricity Policy: Electric Transmission Series for State Offi cials Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Offi cials Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy Fall 2008 Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Offi cials 1 National Council on Electricity Policy: Electric Transmission Series for State Offi cials Acknowledgements Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Offi cials was prepared with the fi nancial assistance of a grant from the U.S. Department of Energy (DOE) Offi ce of Electricity Delivery and Energy Reliability (OE). This publication is the third in series of practical resources State offi cials to bett er understand, manage and coordinate electricity transmission and distribution issues. The National Council on Electricity Policy Electric Transmission Series: Electricity Transmission: A Primer (June 2004) Coordinating Interstate Electric Transmission Siting: An Introduction to the Debate (July 2008) Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Offi cials (November 2008) Examining Alternatives to Electric Transmission: A Guide for State Offi cials (to be released in 2008) The Smart Grid: Policy and Practical Essentials for State Offi cials (to be released in early 2009) The primary authors of this report were Dan Delurey and Paul Pietsch of the Demand Response Coordinating Committ ee. Their persistence allowed for multiple points of views to be expressed in one comprehensive document. The authors are grateful to several members of the National Council on Electricity Policywho helped to develop, guide and review the many versions of this document: Commissioner Jeanne Fox, New Jersey Board of Public Utilities; Commissioner Phil Giudice, Division of Energy Resources, Commonwealth of Massachusett s; Jeff Genzer, General Counsel, NASEO; Charles Gray, Executive Director, NARUC; Kate Marks, Energy Program Director, NCSL; Sue Gander, Director of Energy, Environment & Natural Resources Division, NGA Center for Best Practices; Chris Haun of the New Jersey Board of Public Utilities; Miles Keogh, Director of Grants and Research, NARUC; and Andrew Spahn, Executive Director, National Council on Electricity Policy. Finally, we owe a special thanks to Larry Mansueti from DOE who provided technical insight, patience and good judgment. The National Council on Electricity Policy is funded by the U.S. Department of Energy and the U.S. Environmental Protection Agency. The views and opinions expressed herein are strictly those of the authors and may not necessarily agree with the positions of the National Council on Electricity Policy, its committ ee members or the organizations they represent, the National Council funders, or those who commented on the paper during its draft ing. Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Offi cials i National Council on Electricity Policy: Electric Transmission Series for State Offi cials National Council on Electricity Policy Member Organizations The National Council on Electricity Policy (National Council) NATIONAL COUNCIL is a unique venture between the National Association of ON ELECTRICITY POLICY Regulatory Utility Commissioners (NARUC), the National Association of State Energy Offi cials (NASEO), the National Conference of State Legislatures (NCSL), National Association of Clean Air Agencies (NACAA) and the National Governors Association (NGA). The National Council also includes participation by the Federal Energy Regulatory Commission (FERC), U.S. Department of Energy (DOE), and the U.S. Environment Protection Agency (EPA). Established in 1994, the National Council enables bett er coordination between federal and state entities responsible for electricity policy and programs. Our members understand that improved intrastate, regional and federal coordination can result in more informed electricity policy decisions. The National Association of State Energy Offi cials (NASEO) is the only nonprofi t organization whose membership includes the Governor-designated energy offi cials from each state and territory. The organization was created to improve the eff ectiveness and quality of state energy programs and policies, provide policy input and analysis where requested, share successes among the states, and to be a repository of information on issues of particular concern to the states and all their citizens. The National Association of Clean Air Agencies (NACAA) represents air pollution control agencies in 53 states and territories and over 165 major metropolitan areas across the United States. State and local air pollution control offi cials formed NACAA (formerly STAPPA/ALAPCO) over 30 years ago to improve their eff ectiveness as managers of air quality programs. The associations serve to encourage the exchange of information among air pollution control offi cials, to enhance communication and cooperation among federal, state, and local regulatory agencies, and to promote good management of our air resources. National Association of Regulatory Utility Commissioners is the association that represents State public service commissioners who regulate essential utility services, such as electricity, gas, telecommunications, water, and transportation. As regulators, our members are charged with protecting the public and ensuring that rates charged by regulated utilities are fair, just, and reasonable. The National Governors Association Center for Best Practices develops innovative solutions to today’s most pressing public policy challenges including analysis of state and federal policies aff ecting environmental protection, air quality and greenhouse gases, energy infrastructure, energy effi ciency and renewable energy. The National Conference of State Legislatures (NCSL) is the bipartisan organization that serves the legislators and staff s of the states, commonwealths and territories. NCSL provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an eff ective and respected advocate for the interests of the states in the American NCSL federal system. Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Offi cials ii National Council on Electricity Policy: Electric Transmission Series for State Offi cials Table of Contents Acknowledgements .................................................................................................................................................i Acronyms Used in This Report ............................................................................................................................iv Overview .................................................................................................................................................................. 1 Federal Demand Response and Smart Metering Activities .............................................................................. 3 The United States Congress ...................................................................................................................... 3 Federal Energy Regulatory Commission (FERC) ..................................................................................8 Department of Energy (DOE) ................................................................................................................ 10 State Demand Response and Smart Metering Regulatory and Legislative Activities ................................11 Alabama - Delaware ................................................................................................................................ 11 District of Columbia - Maryland ........................................................................................................... 22 Massachusett s - New Jersey ................................................................................................................... 37 New York - Pennsylvania ........................................................................................................................ 50 Rhode Island - Wyoming ........................................................................................................................ 61 Appendix A – Resources Used for this Report ................................................................................................. 72 Appendix B – Terminology Used in This Report ............................................................................................. 73 Discussion of Additional Terms .......................................................................................................................... 73 Appendix C – Members of the National Council on Electricity Policy ........................................................77 Appendix D – Demand Response Coordinating Committ ee .........................................................................78 Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Offi cials iii National Council on Electricity Policy: Electric Transmission Series for State Offi cials Acronyms Used in This Report AMI = Advanced Metering Infrastructure CAISO = California ISO C&I = Commercial and Industrial
Load more

Recommended publications
  • Electric System Fundamentals Glossary
    Electric System Fundamentals Glossary Alternating current (AC) An electric current that reverses its direction in a conductor at regular time intervals. Amps Short for ampere, the unit of measure commonly used to express the rate of current flow in an electric circuit. Apparent power The amount of power that comprises both real and reactive power, measured in volt- amps (VA), kilovolt-amps (kVA) or megavolt-amps (MVA). Automatic Meter Reading (AMR) The process of collecting meter data remotely through a communications system that sends the data without human intervention. Backup generator A generating unit that is used only when the primary source of power is unavailable. Baseload Generating units that run all 24 hours of the day. Battery A device that converts chemical energy directly to electric energy from substances contained within the battery cell. Biofuel Liquid fuel produced from biomass feedstock. Biomass Organic non-fossil material of biologic origin such as plant matter or animal waste. Electric Systems Fundamentals Glossary 1 Capacitive load A load that causes current to lead voltage. Capacitor A device that stores electrical charge and is used to improve power factor and help with voltage regulation. Capacity The maximum electric power output of a generating unit (measured in MW) or the maximum amount of power that lines or equipment can safely carry. Capacity factor The ratio of actual energy produced by a generating unit over a period of time to the energy that would have been produced had the unit run at its rated capacity for that period of time. Centralized generation Generation located on the transmission grid.
    [Show full text]
  • Automatic Meter Reading/ Advanced Metering Infrastructure Project (AMR/AMI)
    Automatic Meter Reading/ Advanced Metering Infrastructure Project (AMR/AMI) Mike McNutt Public Affairs and Communications Manager [email protected] 818‐251‐2124 Las Virgenes Municipal Water District www.LVMWD.com Project Description The Project consists of replacing approximately 21,000 manually‐read water utility meters within the Las Virgenes Municipal Water District (LVMWD) service area with Advanced Metering Infrastructure (AMI) or “Smart Meters” that will automatically relay meter data wirelessly on a near‐continuous bases. Las Virgenes Municipal Water District www.LVMWD.com Las Virgenes Municipal Water District www.LVMWD.com Las Virgenes Municipal Water District www.LVMWD.com Project Benefits 5 to 10 percent reduction in water use (1,000 to 2,000 acre‐feet)1 ‐ Leak detection ‐ Better informed water use Compliance with AB 1668/SB 606 Less reliance on Sacramento‐San Joaquin Delta / more water for the Delta Reduced CO2 emissions ‐ 2,910 to 5,820 tons2 1) Based on various case studies including “The Effect of Social and Consumption Analytics on Residential Water Demand” ‐Nemati, Buck, Soldati (2016) 2) Based on Table 1‐3 of California’s Water – Energy Relationship, California Energy Commission (2005) Las Virgenes Municipal Water District www.LVMWD.com Project Benefits Improved customer service Expedite monthly customer usage reporting and billing Enhanced water budget implementation Assistance with billing disputes and claims resolution Improved personnel safety (i.e. no need to repeatedly lift meter lids) Detection of meter
    [Show full text]
  • Automatic Meter Reading and Load Management Using Power Line
    ISSN (Print) : 2320 – 3765 ISSN (Online): 2278 – 8875 International Journal of Advanced Research in Electrical, Electronics and Instrumentation Engineering (An ISO 3297: 2007 Certified Organization) Vol. 3, Issue 5, May 2014 Automatic Meter Reading and Load Management Using Power Line Carrier Communication M V Aleyas1, Nishin Antony2, Sandeep T3, Sudheesh Kumar M4, Vishnu Balakrishnan5 Professor, Dept of EEE, Mar Athanasius College of Engineering, Kothamangalam, India1 Student, Dept of EEE, Mar Athanasius College of Engineering, Kothamangalam, India 2,3,4,5 ABSTRACT: Energy crisis is the main problem faced by present day society. A suitable system to control the energy usage is one of the solutions for this crisis. Load shedding, power cut etc. helps to rearrange the available power but they can't be used to prevent the unwanted usage of energy, peak time load control etc. Also a system is needed to monitor the power consumption of an overall area to select the areas to suitably control the energy usage. One of the easiest solutions for this is by using power line communication. PLC is the communication technology that enables sending data over existing power cables. This means that with just power cables running to an electrical device, one can power it up and at the same time control/retrieve data from the device in full duplex manner. The major advantage of PLC is that it does not need extra cables. It uses existing wires. Thus by using power line communication we can monitor and control the usage of devices by providing a control the usage of devices by providing a control circuit at consumer end.
    [Show full text]
  • Guide to Supply and Metering Arrangement on Customer's
    GUIDE TO SUPPLY AND METERING ARRANGEMENT ON CUSTOMER’S INTERNAL DISTRIBUTION SYSTEM CLP POWER HONG KONG LIMITED DATE REVISED: August 2017 Version 8 – 08/17 Guide to Supply and Metering Arrangement on Customer’s Internal Distribution System 1. Acceptance of Customer’s Schematic Wiring Diagram This Guide shall be read in conjunction with the attached wiring diagram / drawing(s) returned herewith to the Developer / Customer. CLP Power Hong Kong Ltd. (CLP) accepts the diagram(s) / drawing(s) on condition that they comply with all requirements stated in the Guide. The scope of acceptance is confined to the Developer / Customer’s internal distribution system only. The interfacing arrangement between CLP’s and Developer / Customer’s supply systems shall be agreed separately with CLP Regions. The summation metering system, if any, shall be agreed separately with CLP. 2. Ratings and Protection Facilities of Main Incoming Circuit Breaker (MICB) Where the supply is to be taken directly from CLP transformer, the MICB shall be of draw-out type and rated at 40kA at low voltage. Earth Fault Protection Each MICB shall be provided with suitable protective device so that in the event of an earth fault between any phase and earth conductors, it shall disconnect the supply automatically within 5 seconds. Over-current Protection The over-current protection relays of each MICB shall be so selected and set that they will operate at a speed not slower than the “maximum time current characteristic curve of customer LV over-current protective relays” shown on the diagram on appendix 1. The over-current relay having flexible operating characteristics and complying with standards recognized by EMSD is recommended to be used at customer’s MICBs.
    [Show full text]
  • Billing & Revenue Metering
    BILLING & REVENUE METERING SMART SYSTEMS Time of Use (TOU) Billing Systems Value Proposition Solution Advantages Energy distribution and tenant billing SATEC Automatic Meter Reading (AMR) Additional profit center allows up to 40% markup and fast return on system includes various energy meters, Space and cost savings investment (ROI) with an effective techno- bi-directional communication and Automatic Operation financial solution. comprehensive software for remote Energy Saving management, online control and billing. Complete outsourced service Shopping Residential Commercial Data Centers Projects Buildings Centers & Malls Hi-Tec & Public Universities & Industrial Hospitals Buildings Student Dorms Facilities Independent Hotels & Renewable Military Power Holiday Energy Plants Facilities Producers Resorts (IPPs) 2 The Experts in Energy Billing SATEC was established in 1987 and recently after introduced a Communication infrastructure for automatic continuous multi-function digital electricity meter, which was a new concept collection of data through various options – wired (RS-232, RS- at that time. Today the company is a world leader in the field of 485, Ethernet) or wireless (Cellular or license-free RF) energy management, power quality monitoring and substation The information is sent over the Internet to a secured central automation with offices in the USA, Israel, Spain, Russia, India, server running ExpertPower™ software on the cloud. This Singapore, Japan, China and Australia. In addition, SATEC allows high availability and simultaneous access to all relevant solutions are promoted in over 60 countries via over 100 business personnel, based on personal access permissions. partners. Dedicated project managers, together with SATEC's technical In 2006 SATEC established the Billing department, which is support team, carry out system setup, tenant definition and dedicated to energy distribution and billing.
    [Show full text]
  • Smart Meter Monitoring: Using HP Arcsight in the Utility Industry Tom Hayes, Principal Consultant – Energy / SCADA Solutions Lead
    Smart meter monitoring: Using HP ArcSight in the utility industry Tom Hayes, Principal Consultant – Energy / SCADA Solutions Lead #HPProtect © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Introduction © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. “The era of pilots is a distant memory; the current focus is now on integrating and optimizing information gathered by smart meters…” Utility-Scale Smart Meter Deployments Innovation Electricity Efficiency Institute of the Edison Foundation August 2013 © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Electric utilities 4 © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Electric utility industry overview Introduction • Change and modernization • Grid complexity • Demand must equal supply (usually…) 5 © Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Terminology Electric power delivery components Energy grid – an interconnected network used to deliver power from producers to consumers. At a high-level, the electric grid consists of three elements. Generation – Where the power is generated. Traditionally, this was the large coal, nuclear, or natural gas generation facility. The network that became the modern grid was designed to move power from these facilities to the consumers. Generation is now becoming much more complex as alternative technologies are pushing power onto the grid at many locations (wind farms, solar panels on home roofs) 6 © Copyright 2014 Hewlett-Packard Development Company, L.P.
    [Show full text]
  • Sel Application Guide
    CASE STUDY Dairyland Power Cooperative—La Crosse, Wisconsin Multitasking Metering System Enhances Dairyland Power’s Widespread Generation and Transmission Operations Advanced, multifunction meters and wide-area IP (Internet Protocol) communications improve metering and power quality data collection at a Wisconsin power generation and transmission cooperative. Advancements in products that leverage converging technologies have created significant opportunities throughout the power systems industry. With communi- cations-related advancements, the right choice of solutions can extend return on investment (ROI) via expanded power system benefits. Such has been the case at Dairyland Power Cooperative (DPC), head- quartered in La Crosse, Wisconsin. In 2004 DPC, a 1,000 MW generation and transmission cooperative, was experiencing Figure 1—DPC produces in excess of 1,000 MW of electric diminished service within its analog power from hydro and coal-fired plants and from waste-to- energy plants using renewable resources, such as animal cellular-based data communications system, waste-to-energy conversion shown above and landfill with the possibility of no further service methane recovery (shown below). The customer area covers 62 counties in 4 states (Wisconsin, Minnesota, Iowa, and beyond February 2008. Illinois). DPC provides power for 25 member cooperatives and 20 municipalities who serve over 500,000 customers. A Touchstone Energy affiliate, DPC’s service area encompasses 62 counties in 4 states (Wisconsin, Minnesota, Iowa, and Illinois). The cooperative owns and operates over 3,100 miles of transmission lines and 348 substations. The cooperative produces electric power from a variety of sources, including hydro and coal-fired plants plus Figure 2—DPC owns over 3,100 miles of renewable resources, such as landfill transmission lines and 348 substations like methane recovery and animal waste-to- the one shown in the above photograph.
    [Show full text]
  • City Utilities the City of Fredericksburg’S Public in Fredericksburg, We Purchase Elec- Home
    Fredericksburg MUNICIPAL MESSENGER Volume 8 Number Four December, 2012 City Utilities The City of Fredericksburg’s Public In Fredericksburg, we purchase Elec- home. over 500 fire hydrants, and over 130 Works Department provides electric, tricity from LCRA. LCRA generates The City’s water system was built in miles of water mains. This infrastruc- sewer, wastewater and garbage dis- electricity at a coal fired power plant 1936. Prior to that time, residents and ture allows for the chlorination and posal to the citizens of Fredericksburg. in Fayette County, two natural gas businesses received water from pri- distribution of water throughout the As a public utility, the City of Freder- fired plants in Marble Falls and vate wells. Currently water is supplied City of Fredericksburg. icksburg’s utility department serves Bastrop, one combined-cycle gas fired by city owned wells. There are 6050 all customers on equal terms, operat- plant in Bastrop, hydroelectric power water service accounts. The City of ing safely and satisfactorily while at Highland Lakes Dam, and purchases The City of Fredericksburg also oper- Fredericksburg’s water system is rated ates its own 2.5 MGD Wastewater charging rates that are reasonable and wind power from West Texas wind superior by Texas regulators. fair. projects. Treatment Plant. The infrastructure Fredericksburg’s water is supplied by The City of Fredericksburg became a Power from these plants is sent that makes up the City’s sanitary sew- municipal utility in 1940 when it pur- through transformers across Texas several groundwater wells located in er system includes over a thousand chased the electric utility system from which push power long distances.
    [Show full text]
  • RF Based Energy Meter Reading in Covid-19 Pandemic Rupatakke Madhusudan1, Mirza Naveed2, Mali Vikrant3, Sonawane Divyashri4, Satre
    ISSN 2321 3361 © 2020 IJESC Research Article Volume 10 Issue No.11 RF Based Energy Meter Reading in Covid-19 Pandemic Rupatakke Madhusudan1, Mirza Naveed2, Mali Vikrant3, Sonawane Divyashri4, Satre. J. V`5 Student BE Electrical1, 2, 3, 4, Assistant Professor5 Trinity College of Engineering and Research, India Abstract: In this paper we explain practical model of Pulse Detection and Electric Metering System based on the Radio Frequency (RF). This device have one Microcontroller, LCD, RF transceiver module, energy meter and relay for connecting Load. This project works within the range of 50 meters. This Radio Frequency (RF) based Pulse Detection and Electric Metering System is used for clear and accurate billing based on actual consumption and can follow social distancing during covid situation reader can collect reading from safe distance. Keywords: Power Consumption, Billing, Radio Frequency, Power Theft, Energy Meter. I. INTRODUCTION: determined for the MSEB worker to require the meter reading. worker goes each house and takes the pic of meters because of Traditional meter reading for electricity consumption and asking which period needed is increase for snap of every house meter is completed by human operator from homes to homes and reading. of these photos have to be compelled to submit at building to assembling. this needs vast variety of labor operators MSEB workplace and therefore the meter readings are saved by and long operating hour to realize complete space knowledge different staff of MESB to get electricity bill. throughout this reading and asking. Human operator asking ar vulnerable to whole method manual mistakes could also be takes place.
    [Show full text]
  • Design and Implementation of a Self-Powered Smart Water Meter
    sensors Article Design and Implementation of a Self-Powered Smart Water Meter Xue Jun Li *,†,‡ and Peter Han Joo Chong †,‡ Department of Electrical and Electronic Engineering, Auckland University of Technology, Auckland 1010, New Zealand; [email protected] * Correspondence: [email protected]; Tel.: +64-9-921-9999 † Current address: C-46, 34 St Paul Street, Auckland 1010, New Zealand. ‡ These authors contributed equally to this work. Received: 18 August 2019; Accepted: 19 September 2019; Published: 26 September 2019 Abstract: Smart cities require interactive management of water supply networks and water meters play an important role in such a task. As compared to fully mechanical water meters, electromechanical water meters or fully electronic water meters can collect real-time information through automatic meter reading (AMR), which makes them more suitable for smart cities applications. In this paper, we first study the design principles of existing water meters, and then present our design and implementation of a self-powered smart water meter. The proposed water meter is based on a water turbine generator, which serves for two purposes: (i) to sense the water flow through adaptive signal processing performed on the generated voltage; and (ii) to produce electricity to charge batteries for the smart meter to function properly. In particular, we present the design considerations and implementation details. The wireless transceiver is integrated in the proposed water meter so that it can provide real-time water flow information. In addition, a mobile phone application is designed to provide a user with a convenient tool for water usage monitoring. Keywords: water meter; smart city; automatic meter reading; energy harvesting; flow measurement 1.
    [Show full text]
  • The Smart Gird CMPT 417 Lecture
    Picture taken from http://ge.ecomagination.com/smartgrid/ • Computing Science MSc Student • Senior Supervisor: Dr. Fred Popowich • Part of the NatLag Lab • Intelligent Agents, Data Networks, Embedded Systems • Professional Career • 13 years in IT in various industries • 2 years as BCIT Researcher for Smart Grid • Software Systems Architect & Data Comm Part 1: Subject Background Part 2: Electric Utility 101 Part 3: The Beginnings of IT Part 4: Intelligent Energy Systems Part 5: Open Standards Part 6: Research Interests 1. Background Video 2. Other Situational Factors 3. Alternative Energy Sources 4. Coal & The Environment 5. What Does It All Mean? Movie taken from http://www.youtube.com/watch?v=7IBG2V98IBY 1. ~2050: The planet cannot heal itself. 2. Rising Energy Demand 3. Peak Oil ( $ as reserves ) 4. Can we use alternative energy sources? Pictures taken from http://en.wikipedia.org/wiki/Energy_in_the_United_States and http://www.watthead.org/2006_11_01_archive.html 1. Wind Turbine 4. Geothermal 2. Photovoltaic 5. Big Hydro 3. Tidal 6. Run-of-River Hydro Picture taken from http://en.wikipedia.org/wiki/Energy_development 1. About 120 years of coal remaining. 2. Coal has to be part of the solution. 3. Carbon capture and storage (CCS). Picture taken from http://www.worldcoal.org/coal-society/coal-energy-security/ Questions, Comments & Class Discussion 1. Background Video 2. The Electric Grid 3. The Issues in BC 4. Types of Grids 5. Future Electric Grid 6. BC Net-Importer or Net-Exporter? Movie taken from http://www.youtube.com/watch?v=eSbYApshKVs Generation • 1: Hydroelectric dam • 2: Generator • 3: Step-up transformer Transmission • 4: High voltage transmission lines • Picture taken from 5: Terminal Station http://www.bchydro.com/about/our_system/generation/electric_generation.html • 6: Sub-transmission lines Distribution • 8: Distribution substation Delivery 1.
    [Show full text]
  • An Answer Based on Monte Carlo Net Present Value Analysis
    sustainability Article Is Smart Housing a Good Deal? An Answer Based on Monte Carlo Net Present Value Analysis Sarah A. Elariane 1,* and Jean Dubé 2 1 Housing and Building National Research Center, Architecture and Housing Research Institute, Cairo 11511, Egypt 2 School of Land Planning and Regional Development, Planning and Development Research Center, Leadership Teaching Chair in Economic Regional Development, Laval University, Quebec, QC G1V 0A6, Canada * Correspondence: [email protected] Received: 28 June 2019; Accepted: 29 July 2019; Published: 2 August 2019 Abstract: The smart cities are considered to be an engine of economic and social growth. Most countries started to convert their existing cities into smart cities or construct new smart cities in order to improve the quality of life of their inhabitants. However, the problem that facing those countries while applying the concept of smart cities is the costs, especially for the residential sector. Despite the high initial and even operation costs for adopting different technologies in smart housing; the benefits could exceed those costs within the lifespan of the project. This article is shedding the light on the economics of smart housing. This study aims to evaluate the net present value (NPV) of a smart economic housing model to check the viability and feasibility of such projects. The calculation of the NPV based on Monte Carlo simulation provides an interesting methodological framework to evaluate the robustness of the results as well as providing a simple way to test for statistical significance of the results. This analysis helps to evaluate the potential profitability of smart housing solutions.
    [Show full text]