Greentech Lead Europe: Between 2011 and 2017, the
installed base of smart electricity meters in Europe is forecasted to grow
at a compound annual growth rate of 20.5 percent to reach 154.7 million units
at the end of the period, according to Berg Insight.
Meanwhile the penetration rate for smart meters in the
EU27+2 area will more than triple from 18 percent in 2011 to 56 percent in
2017. The increase will largely be driven by nationwide rollouts
in France, Spain, the UK and a handful of other European
countries. Based on current deployment plans, around 70 percent of the EU
households will have smart electricity meters by 2020.
The research finds that the market for smart metering
solutions in Europe will deliver a strong performance in the coming
five years. Until 2017, electricity distribution network operators and power
suppliers will invest approximately 15.8 billion euro in the deployment of 110
million smart meters.
According to the report, Germany will decide the future
of the European smart metering industry in 2013. Germany remains the only
major country in Western Europe that has not committed to the
introduction of smart metering. The initial approach by the German energy
regulator to rely on a market-driven adoption of the technology has not
resulted in much uptake. Therefore Germany is now evaluating the option of
a regulation-driven nationwide rollout.
During 2013, the German federal government is expected to
announce the results of an economic assessment of the business case for smart
metering in Germany. The key question that should be answered is whether
the benefits in the form of energy savings, grid optimization and greater
efficiency outweigh an investment in the magnitude of15 – 20 billion euro.
“Germany’s decision on smart metering will be decisive
for the future of the whole smart grid technology sector in Europe,” said
Tobias Ryberg, senior analyst, Berg Insight. “If Germany draws the same
conclusions about smart metering as most other countries in Western Europe, it
will open up a large and diverse market that offer plenty of room for both new
and existing players to define the next generation of cutting-edge smart grid
“In the opposite case, the market opportunities for smart
metering solutions in Western Europe will essentially dry up after
2020 and most European industry players will be unable to find new customers
and lose a decade’s experience before the introduction of third generation
smart metering systems begin in 2030.”