The market for smart meters in Europe although nascent is expected to be more of a ‘push’ market. It is primarily driven by legislations and by the need to handle the increasing demand for electricity that has far exceeded the grid’s capacity. Most of the utilities have been forced to improve their measurement and monitoring network structure. And the most proactive of them all is the Italian Electricity Company Enel Spa with around 33 million meters installed to date.
“Smart meters form an integral part of the bigger movement towards the smart grid,” explains Frost & Sullivan research analyst, Vikas Ravindran who is working on a study on this subject. “Smart Meter is a new type of electrical, water or gas meter that besides retaining its basic function of keeping track of the overall energy consumption also has the ability to communicate data to and from the utilities, ensuring transparency and monitoring the efficient energy usage of different appliances. Smart meters also enable utilities to vary the price of electricity in real time. This means that consumers would consume less at times of higher demand thereby cutting emissions, costs and pressure on the grid.”
As mentioned, certain countries have already started implementing smart meters and the most proactive of them all is Italy with around 32.1 million meters installed till the end of 2008. This was achieved by one of the biggest and most foremost European utilities Enel Spa at an estimated overall cost of more than Euro 2 billion.
Canada and United States are also not far behind in the race. The initial target set by the Canadian government of 800,000 homes by 2007 has been well surpassed with more than 260,000 meters installed just in Ottawa. In the United States as part of President Obama’s economic stimulus package, $4.5 billion has been allocated for research related to smart grids, also known as the “Smart Grid Investment Program.” In California, the program to roll out 9 million gas and electric smart meters has been approved by energy regulators. In other parts of the world too similar projects have been commissioned, namely in Australia where the Essential Services Commission of Victoria, has rolled out a timetable to install 1 million smart meters by 2013. Even developing countries like India are looking towards smart grids and smart metering.
via Frost & Sullivan: US Driving Smart Meter Growth While UK Lagging Behind.
