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1.3.1 Lack of Circuit Capacity and Aging Assets

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In many locations worldwide, the power system has extended widely since the 1950s and the distribution and transmission equipment are now beyond the expected lifetime and require replacement. The capital costs of like‐for‐like change are very high. A typical large‐scale utility may require hundreds of billions of dollars to fully modernize the whole grid's infrastructure, which is an overrated cost and should decrease gradually over time. The practical solution is to transform this overstrained infrastructure into an SG, which may even take 20 years or more.

Smart Grid and Enabling Technologies

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