Economic Efficiency of the Internet of Things Solution in the Energy Industry: A Very High Voltage Frosting Case Study

Milos Maryska, Petr Doucek, Pavel Sladek and Lea Nedomova
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Milos Maryska: Department of Information Technologies, University of Economics, 130 67 Prague, Czech Republic
Petr Doucek: Department of System Analysis, University of Economics, 130 67 Prague, Czech Republic
Pavel Sladek: Department of Information Technologies, University of Economics, 130 67 Prague, Czech Republic
Lea Nedomova: Department of System Analysis, University of Economics, 130 67 Prague, Czech Republic

Energies, 2019, vol. 12, issue 4, 1-16

Abstract: This article deals with the deployment of an Internet of Things (IoT) technology within the energy industry (energy distribution) in the Czech Republic. The first part of the article is devoted to an assessment of the perspectives for developing IoT applications and implementing them within the economy, and then examines how the principles of multi-criteria decision-making are used to select IoT technologies for deployment in the energy industry. The selection of technology is also followed by the selection of the specific application with the highest potential benefit for the company using such a method to select the technology. The selection solution is demonstrated and further discussed from the technological and financial standpoints and illustrated via the example of choosing among two alternatives for a real-world application, very high voltage (VHV) frosting (in electric power transmission engineering, which is usually considered as any voltage between 52,000 and 300,000 V). The application solution is analyzed by how it relates to the direct vs indirect measurement of glaze ice. The result of this technical and financial analysis was that the direct glaze ice measurement variant is clearly the more advantageous one. The direct-measurement variant has a three-year payoff period, compared to six years for indirect measurement. Further, the benefits from the direct-measurement variant are 2.25 times larger than the other variant, and the five-year net profit value amounts to a profit for the direct-measurement variant while it results in a financial loss for the indirect-measurement variant. The recommended variant is to measure the icing of VHV lines directly.

Keywords: Internet of Things; economic efficiency; energy industry; internet services; information technology; information technology services; electric utilities; electricity sector; energy (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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