Total Cost of Ownership and Risk Analysis of Collaborative Implementation Models for Integrated Fiber-Wireless Smart Grid Communications Infrastructures

Abstract

Most previous total cost of ownership (TCO) studies give insight into the overall costs of various communications network architectures under the assumption of the traditional vertical integration model. However, it is necessary to take a closer look at the possibilities and gains achieved through collaboration. In this work, we develop a flexible, generic yet comprehensive TCO framework for the rollout of integrated fiber-wireless (FiWi) smart grid communications infrastructures. Further, we propose a novel collaborative implementation model for a shared infrastructure for both broadband access and smart grid communications. In addition, we take into account that buildings currently shift from a product to a service (i.e, renewable power supply) and exploit the idea that housing companies may collaborate by offering surplus renewable energy to communications network providers across interconnected smart microgrids. We study the impact of our implementation model on TCO and compare it with the vertical integration model. We also conduct a sensitivity analysis for the key cost parameters and analyze the risks related to solar power intermittency and random fiber cuts in terms of power service penalty, fiber cut related costs, and TCO.