This report reflects the work performed in SEGRID Task 1.4, in which the expected costs of developing, implementing and operating four selected smart grid security solutions (Resilient SCADA Systems, SecuriCAD Based Active Vulnerability Assessment Tool, Robust Scalable (D)TLS and Key Management for Group Software Distribution) are determined and weighed against their expected level of risk reduction in a particular use case scenario (uc2sc2) of SEGRID. The report describes the cost assessment and risk reduction methodologies and the outcomes of the assessment. Assessing the costs of a security solution provides insight into those factors and elements that together determine the costs to the investor. In this study a mid-sized Distributed System Operator (DSO) with 4 – 6 million consumers was assumed as the investor for smart grid security solutions. The investor can then weigh the costs against the expected benefits, in this case, the expected reduction of risk.