Abstract
This article examines the potential of Internet of Things (IoT) technologies in the electric power industry in the context of Smart Grid development. The study aims to quantify the economic and environmental effectiveness of implementing IoT solutions, as well as to analyze their social impact on improving electricity supply reliability, reducing operating costs, and integrating renewable energy sources (RES). The study focuses on medium- and low-voltage distribution networks, including smart meters (AMI), feeder sensors, fault-level information recovery (FLISR) systems, and demand response (DR) services. The study methodology is based on performance assessment models (NPV, IRR, TCO, payback period), difference-in-differences, and the IPMVP Option C standard for measurement verification. ISO 14064-1 and GHG Protocol emissions calculations were used to assess the environmental impact. A numerical example is provided for a medium-sized distribution company with 50,000 smart meters. The study's results demonstrate that IoT implementation can achieve a cumulative economic benefit of over 600 million tenge per year for a base of 300,000 consumers, improve electricity supply reliability, and enhance customer service. The environmental impact is reflected in a significant reduction in CO₂ emissions, while the social impact includes shorter outage durations, increased metering transparency, and increased end-user trust. The practical significance of this study lies in developing a reproducible assessment model applicable to investment planning, tariff regulation, and ESG reporting. Thus, IoT-based network digitalization confirms its economic and environmental feasibility and should be considered a strategic direction for the long-term modernization of the electric power sector.