Smart Metering in Europe

Smart Metering in Europe is the eighth consecutive report from Berg Insight analysing the latest developments for smart metering in Europe. This strategic research report from Berg Insight provides you with over 220 pages of unique business intelligence, including 5- year industry forecasts, expert commentary and real-life case studies on which to base your business decisions. Half of Europe’s households will get smart meters by 2016 Smart grid is one of the latest buzzwords in the energy sector and has become a catchphrase for politicians, academics and industry leaders alike. The vision is to exploit the latest technology to address the immense challenge of securing the energy supply in the 21st century. The concept of smart grids is at times put forward as a revolutionary solution to a wide array of problems, ranging from the West’s dependency on Middle Eastern oil to global warming. A more realistic expectation is however that smart grid technology will contribute to improved efficiency and reliability in energy distribution and better optimisation in allocation of resources and utilisation of assets. Smart metering is widely regarded as the cornerstone for future smart grids. In the history of metering technology, smart metering represents the third stage in a chain of developments spanning more than 100 years. Manually read meters have been around since the advent of the utility industry in the late 19th century. Over the last three decades, automated meter reading (AMR) based on one-way or two-way communication has evolved. Smart metering broadens the scope of AMR beyond just meter readings with additional features enabled by two-way data communication. A smart metering solution generally delivers a range of applications using an infrastructure comprising networked meters, communication networks and data collection and management systems. Smart electricity meters are being introduced all over the developed world. Europe had an early start in the 2000s when Enel completed the first nationwide rollout of smart meters to more than 30 million customers in Italy. Later deployments followed in the Nordic countries and at the beginning of the 2010s, Spain, France and the UK are assuming the positions as the most active markets. Berg Insight forecasts that the installed base of smart electricity meters in EU23+2 will grow at a compound annual growth rate of 19.4 percent between 2010 and 2016 to reach 130.5 million units at the end of the period. Annual shipments of smart electricity meters are anticipated to exceed 20 million units in the mid-2010s. A majority of the countries in Western Europe have adopted a policy of regulation-driven introduction of smart meters. Italy and Sweden were first to complete their rollouts that began in 2001 and 2003 respectively. Finland and Norway will require smart meters for all electricity customers by 2013 and 2016 respectively, while France, Spain, the UK and Ireland have set targets to achieve full penetration in the final years of this decade. That will also be the case in the Netherlands, where the plans to introduce smart meters met strong opposition on the grounds of being invasive to privacy and were delayed for several years before they were finally approved by the parliament in late 2010. Germany on the other hand has only implemented some weaker regulatory drivers and the federal government has declared that it has no intention to push for a quick nationwide rollout. Iberia is the new focal point for smart metering in Europe. Following a build-up phase in 2010, massive installations will take off in Spain during 2011, as Endesa goes ahead with a fullscale rollout. Iberdrola is performing major pilots involving hundreds of thousands of customers and activity is also picking up at Gas Natural Fenosa. Furthermore EDP considers a nationwide rollout in Portugal that can be coordinated with the mandatory deployment by its distribution network subsidiary in Spain. Berg Insight forecasts that annual shipments of smart electricity meters in Iberia will peak at around 5 million units per year during 2016-2017 before the market gradually slows down in the final years before the installation deadline in 2018. France and the UK became active markets in 2010 as ERDF and British Gas entered the initial phases of their smart meter installation programmes. ERDF plans to start with a massive nationwide rollout from 2012 and will need to deploy around 6 million units per year between 2014 and 2017 in order to fulfil the regulatory obligations that will take effect in 2018. The UK is currently in a build-up phase, preparing for a mass rollout to nearly 30 million customers during 2014-2019. British Gas and E.ON have committed to the installation of at least one million smart electricity meters each before the mass rollout begins. Berg Insight expects that all major energy suppliers in the UK will switch to smart meters for new connections and planned replacements prior to the mass rollout. Ireland plans a nationwide rollout of smart meters starting in 2014. Highlights from the eighth edition of the report: Case studies of smart metering projects by the leading energy groups in Europe. In-depth market profiles of nineteen countries in Europe. Status updates on the development of smart grid and communication technology. Updated profiles of the key players in the metering industry. Revised market forecasts lasting until 2016. Summary of the latest developments in the European energy industry. This report answers the following questions: How are EU and national energy policies driving the adoption of smart metering? What are the UK government’s plans for a nationwide rollout of smart meters? How are smart meter deployments proceeding in France and Spain? What are the latest regulatory developments in the Netherlands and Norway? What are the prospects for massive smart meter installations in Central Eastern Europe? Which lessons can be learnt from customer behaviour trials? Who are the leading suppliers of smart metering solutions for the European market? Which are the main providers of PLC and wireless communication technology for smart meters? What will be the impact of pan-European standard initiatives related to smart metering?

Additional Information

Report Excerpt

Executive summary

Smart grid is one of the latest buzzwords in the energy sector and has become a catchphrase for politicians, academics and industry leaders alike. The vision is to exploit the latest technology to address the immense challenge of securing the energy supply in the 21st century. The concept of smart grids is at times put forward as a revolutionary solution to a wide array of problems, ranging from the West’s dependency on Middle Eastern oil to global warming. A more realistic expectation is however that smart grid technology will contribute to improved efficiency and reliability in energy distribution and better optimisation in allocation of resources and utilisation of assets.

Smart metering is widely regarded as the cornerstone for future smart grids. In the history of metering technology, smart metering represents the third stage in a chain of developments spanning more than 100 years. Manually read meters have been around since the advent of the utility industry in the late 19th century. Over the last three decades, automated meter reading (AMR) based on one-way or two-way communication has evolved. Smart metering broadens the scope of AMR beyond just meter readings with additional features enabled by two-way data communication. A smart metering solution generally delivers a range of applications using an infrastructure comprising networked meters, communication networks and data collection and management systems.

Smart electricity meters are being introduced all over the developed world. Europe had an early start in the 2000s when Enel completed the first nationwide rollout of smart meters to more than 30 million customers in Italy. Later deployments followed in the Nordic countries and at the beginning of the 2010s, Spain, France and the UK are assuming the positions as the most active markets. Berg Insight forecasts that the installed base of smart electricity meters in EU23+2 will grow at a compound annual growth rate of 19.4 percent between 2010 and 2016 to reach 130.5 million units at the end of the period. Annual shipments of smart electricity meters are anticipated to exceed 20 million units in the mid-2010s.

A majority of the countries in Western Europe have adopted a policy of regulation-driven introduction of smart meters. Italy and Sweden were first to complete their rollouts that began in 2001 and 2003 respectively. Finland and Norway will require smart meters for all electricity customers by 2013 and 2016 respectively, while France, Spain, the UK and Ireland have set targets to achieve full penetration in the final years of this decade. That will also be the case in the Netherlands, where the plans to introduce smart meters met strong opposition on the grounds of being invasive to privacy and were delayed for several years before they were finally approved by the parliament in late 2010. Germany on the other hand has only implemented some weaker regulatory drivers and the federal government has declared that it has no intention to push for a quick nationwide rollout.

Iberia is the new focal point for smart metering in Europe. Following a build-up phase in 2010, massive installations will take off in Spain during 2011, as Endesa goes ahead with a fullscale rollout. Iberdrola is performing major pilots involving hundreds of thousands of customers and activity is also picking up at Gas Natural Fenosa. Furthermore EDP considers a nationwide rollout in Portugal that can be coordinated with the mandatory deployment by its distribution network subsidiary in Spain. Berg Insight forecasts that annual shipments of smart electricity meters in Iberia will peak at around 5 million units per year during 2016-2017 before the market gradually slows down in the final years before the installation deadline in 2018.

France and the UK became active markets in 2010 as ERDF and British Gas entered the initial phases of their smart meter installation programmes. ERDF plans to start with a massive nationwide rollout from 2012 and will need to deploy around 6 million units per year between 2014 and 2017 in order to fulfil the regulatory obligations that will take effect in 2018. The UK is currently in a build-up phase, preparing for a mass rollout to nearly 30 million customers during 2014-2019. British Gas and E.ON have committed to the installation of at least one million smart electricity meters each before the mass rollout begins. Berg Insight expects that all major energy suppliers in the UK will switch to smart meters for new connections and planned replacements prior to the mass rollout. Ireland plans a nationwide rollout of smart meters starting in 2014.

About the Author

Tobias Ryberg is co-founder and principal analyst responsible for the M2M research series. He is an experienced analyst and author of numerous articles and reports about telecom and IT for leading Swedish and international publishers. The European Smart Metering market has been his major research area for the past 9 years.

Who should buy this report?

Smart Metering in Europe in its eighth edition is the foremost source of information about the ongoing transformation of the metering sector. Whether you are a vendor, utility, telecom operator, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.