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Techno-Economic Analysis and Business ModelEvaluation of Smart Grid Communication

Technologies

ARTICLE FEBRUARY 2015

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Suk-Gwon Chang

Hanyang University

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Available from: Suk-Gwon Chang

Retrieved on: 04 September 2015

http://www.researchgate.net/profile/Suk_Gwon_Chang?enrichId=rgreq-99161762-7758-44c1-905f-ee7df2545d93&enrichSource=Y292ZXJQYWdlOzI4MDIwNDI1MjtBUzoyNTM0NDQ5ODg2MDAzMjBAMTQzNzQzNzQwMjAxMQ%3D%3D&el=1_x_4http://www.researchgate.net/?enrichId=rgreq-99161762-7758-44c1-905f-ee7df2545d93&enrichSource=Y292ZXJQYWdlOzI4MDIwNDI1MjtBUzoyNTM0NDQ5ODg2MDAzMjBAMTQzNzQzNzQwMjAxMQ%3D%3D&el=1_x_1http://www.researchgate.net/profile/Suk_Gwon_Chang?enrichId=rgreq-99161762-7758-44c1-905f-ee7df2545d93&enrichSource=Y292ZXJQYWdlOzI4MDIwNDI1MjtBUzoyNTM0NDQ5ODg2MDAzMjBAMTQzNzQzNzQwMjAxMQ%3D%3D&el=1_x_7http://www.researchgate.net/institution/Hanyang_University?enrichId=rgreq-99161762-7758-44c1-905f-ee7df2545d93&enrichSource=Y292ZXJQYWdlOzI4MDIwNDI1MjtBUzoyNTM0NDQ5ODg2MDAzMjBAMTQzNzQzNzQwMjAxMQ%3D%3D&el=1_x_6http://www.researchgate.net/profile/Suk_Gwon_Chang?enrichId=rgreq-99161762-7758-44c1-905f-ee7df2545d93&enrichSource=Y292ZXJQYWdlOzI4MDIwNDI1MjtBUzoyNTM0NDQ5ODg2MDAzMjBAMTQzNzQzNzQwMjAxMQ%3D%3D&el=1_x_5http://www.researchgate.net/profile/Suk_Gwon_Chang?enrichId=rgreq-99161762-7758-44c1-905f-ee7df2545d93&enrichSource=Y292ZXJQYWdlOzI4MDIwNDI1MjtBUzoyNTM0NDQ5ODg2MDAzMjBAMTQzNzQzNzQwMjAxMQ%3D%3D&el=1_x_4http://www.researchgate.net/?enrichId=rgreq-99161762-7758-44c1-905f-ee7df2545d93&enrichSource=Y292ZXJQYWdlOzI4MDIwNDI1MjtBUzoyNTM0NDQ5ODg2MDAzMjBAMTQzNzQzNzQwMjAxMQ%3D%3D&el=1_x_1http://www.researchgate.net/publication/280204252_Techno-Economic_Analysis_and_Business_Model_Evaluation_of_Smart_Grid_Communication_Technologies?enrichId=rgreq-99161762-7758-44c1-905f-ee7df2545d93&enrichSource=Y292ZXJQYWdlOzI4MDIwNDI1MjtBUzoyNTM0NDQ5ODg2MDAzMjBAMTQzNzQzNzQwMjAxMQ%3D%3D&el=1_x_3http://www.researchgate.net/publication/280204252_Techno-Economic_Analysis_and_Business_Model_Evaluation_of_Smart_Grid_Communication_Technologies?enrichId=rgreq-99161762-7758-44c1-905f-ee7df2545d93&enrichSource=Y292ZXJQYWdlOzI4MDIwNDI1MjtBUzoyNTM0NDQ5ODg2MDAzMjBAMTQzNzQzNzQwMjAxMQ%3D%3D&el=1_x_2

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Techno-Economic Analysis and Business Model Evaluationof Smart Grid Communication Technologies

Among nation-wide IoT projects, AMI (Advanced Metering Infrastructure) might have the largest economic

and social impacts. But it appears that the AMI penetration rates differ significantly from country to country.

This paper compares the PLC and LTE technology for AMI among others, postulating that difference in AMI

penetration across different countries mainly comes from difference in their techno-economic performances and

underlying business models. For techno-economic analysis, a contingent TCO (Total Cost of Ownership) model

was developed and used to test the business model requirements in hypothetical real-world situations. The result

indicates that the superiority of LTE to PLC is mainly affected by the robustness of PLC to signal

attenuation/interference and the relative price competitiveness of LTE modem. As such, it is prospected that

techno-economic superiority of LTE will continue to dominate as long as the weak conditions of power lines to

operate PLC are not resolved in major residential areas. Finally, some policy implications to foster the AMI

market, which is one of the most promising IoT markets, are discussed.

Keywords: Smart grid, Smart meter, Power line communication, LTE, Total cost of ownership

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n : : PPLC

: OPLC

:

PLTE

: PDCU

:

Cswitch

: r

LTE:

T :

TCO

PLC

nTCO

PLCn(P

PLCO

PLC)P

DCU(1)

TCO

LTE

TCOLTE

Cswitch

n(PLTE

rLTE

T) (2)

n n200 15

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10 n

10

n

*21.25 n 121.25

n n n

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PDCU

TCOPLC

TCOLTE

n(PPLCOPLCPLTE rLTET)

Cswitch

0 (3)

P

PLC

PLTE

PPLC

PLTE

PLTE

PPLC

PPLC

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85n* (4)500(21)n

P

LTE P

PLC

P

LTE

n P

LTE

VI

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