Smart Meter Outlook 2020

Europes Smart Meter Outlook for 2020 Copyright Greenbang.
com Ltd 2010
Contents
Executive Summary Introduction Overview Reasons for deployment Factors driving development The State of Play Today Government policies Standardisation efforts Country-by-country summaries Market Drivers Benefits of smart metering Energy and infrastructure issues The role of renewables and electrified transport Obstacles Cost issues Standards hurdles Public perceptions Infrastructure development Scalability Privacy and security Concerns Best practices Data Lessons Education 2 3 Opportunities Deployment and mandates Water Installation Networks IT Here and now Partnerships 19
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Key Influencers in Smart metering 22 How companies stack up in Europe Strategic partnerships Dominant markets: Now and in the future Analysis Whats next Lessons to be learned Todays maturing markets Later adopters with growth potential Top countries to watch Investment Top companies to watch Recommendations Government EU policy makers National Local Business Utilities Technology providers Services companies New businesses 30
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Europes Smart Meter Outlook for 2020 Copyright Greenbang.com Ltd 2010
Europes Smart Meter Outlook for 2020: A $25 Billion market
Executive Summary
The European smart electricity meter market stands to expand rapidly in the coming decade, with 133 million to 145 million new meters on track to be installed by 2020. That equates to a market of between $24 billion and $26 billion by that time. The top countries for this market will probably be those that havent yet implemented smart metering on any meaningful scale: Germany, the UK and Poland. France and Spain are also set to make a significant impact in the next few years, with announced projects already in the early stages. Driving the transition to smart meters are government initiatives aimed at reducing carbon emissions and improving energy efficiency. The EU, for example, has set a goal of putting smart meters in 80 per cent of households within 10 years. That is being interpreted differently by each European country for example, the UK is aiming for 100 per cent coverage over the same time period. As of 2010, the current installed base of smart meters in Europe is estimated at just under 53 million units. With the number of EU 27 households projected to rise to 225.2 million, that leaves a very large market for smart meter installations based on current metering goals. If the UK reaches its target of 100 per cent coverage and the rest of Europe achieves its 80 per cent goal, the EU27 could see a total of 186 million households with smart meters by 2020.
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Introduction
The European smart metering market for electricity is poised to take off at high speed in the next several years. In fact, if the necessary capital can be made available for plans already in place or now in the works, the EU of 2020 will likely feature an energy infrastructure radically different from the one it has today. A number of factors are driving this development forward, foremost among them, the pan-European goals of reducing carbon dioxide emissions, improving energy efficiency and expanding renewable energy sources over the next few decades. Meeting those goals will pose a particular challenge across Europe as the number of smaller households, as well as total household energy demand, is expected to increase between now and 2030. Adapting to a changing energy landscape is another driver of the transition to smart metering and, ultimately, a fully smart grid. As the UK Industry Task Force on Peak Oil and Energy Security noted in its February 2010 report, Britain (not to mention the rest of the world) is likely to face an energy crunch in the next five years as global petroleum production reaches a peak and then begins to decline. The global economic meltdown of 2008 helped postpone that crunch by a couple of years by depressing energy demand, the task force found. But recovery especially in developing nations like China and India will soon bring on increased consumption again. When that happens, there will be growing competition for a dwindling oil supply. As a result, oil prices could again begin spiking to new highs as we saw in 2008 just before the meltdown. That will carry numerous consequences for transport, manufacturing and agriculture, with rising consumer prices for travel, goods and food. Smart metering could help to blunt that impact by allowing households to better manage home energy use and find ways to reduce consumption and bills.
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Introduction
Across Europe, countries are pushing to increase homegrown energy production through large-scale wind, solar and tidal projects, as well as via microgeneration (small-scale, household-based renewables). Managing the intermittent nature of such energy sources not to mention the demand burdens expected from a growing number of electric cars will require much smarter grid technology than is used today, with smart meters being one essential element. Finally, there is the matter of Europes energy infrastructure itself, much of which is now 65-plus years old. Whatever energy technology is prevalent in the future, a new power grid will soon be needed to replace todays geriatric one. Addressing all these needs will require a smarter energy infrastructure in which measurements are more transparent, renewables are more easily integrated into the grid and efficiency improvements are more easily implemented by consumers themselves. And the first piece of this smart infrastructure puzzle will be smart electricity meters.
Europe needs a smarter energy infrastructure in which measurements are more transparent
The State of Play Today

With smart metering mandates now set for the UK and EU, but standards yet to be determined, the European marketplace for the sector is today a mix of small, focused and relatively new organisations along with giant, cross-industry multinationals. On the continent, the European Commissions OPEN meter project is working to develop a comprehensive set of open and public standards for an advanced metering infrastructure that can support meters for electricity, gas, water and heat. Project participants aim to complete their work by the end of June 2011. As of 2010, the EU is also requiring all newly built homes to be equipped with smart meters. In the UK, utilities, smart metering companies and other stakeholders were awaiting the July 1, 2010, release of a smart metering prospectus being developed by Ofgem, Britains oil and gas markets regulator. That document was expected to provide more details on the planned regulatory and commercial framework for the smart meter rollout, and should make standards clearer for companies eyeing the UK metering market. The UK government estimates it will cost about 7 billion to install some 26 million smart electricity meters, along with around 22 million smart gas meters.
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The lack of comprehensive standards until now hasnt deterred some European utilities from conducting smart metering trials or even mass commercial installation programmes. Among the larger projects already completed or under way are:
Denmark
Austria
S tarting in 2010, Siemens will begin installing 100,000 automated metering and information system (AMIS) electricity meters for customers in upper Austria served by the utility company Energie AG. A ustria-based utility EVN is evaluating different smart metering systems in a pilot project. And the countrys Energie Steiermark is this year launching a 400-person smart meter trial with the goal of making all meters smart by 2020.
Denmarks SEAS-NVE plans to begin rolling out smart meters to customers in Lolland and Falster in 2010. The company first ran a trial with 1,050 customers in 2006, and expects to replace meters for all its 375,000 member customers (it operates as a cooperative) between now and 2011. EnergiMidt, which serves 176,000 customers in Denmark, is now under way with a smart meter deployment to all 172,000 of its customers in central Jutland. The rollout is scheduled to be completed in 2011. Energi Fyn began the first phase of its smart meter upgrade in 2006. With the early stages now completed, the utility expects to have smart meters installed for all 81,000 of its customers in 2010.
Belgium
I n March of 2010, Belgiums Eandis announced it was installing 4,200 smart electricity and gas meters from Elster as part of the countrys largest integrated smart metering pilot project.
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Finland
I n 2009, Vattenfall completed installation of automatic meter reading systems although not fully smart meters for all its electricity customers in Finland. First launched in 2003, the rollout affected some 360,000 customers in Finland. F ortum, the largest utility company in Finland, is rolling out smart meters from Echelon to 550,000 customers. Large-scale deployment is set to get under way in 2011, with the project expected to be completed by 2014. F inlands Kemin Energia is installing smart electricity meters from Landis+Gyr for 15,000 customers, with deployment set for completion in 2014.
Germany
Germanys Technische Werke Friedrichshafen began rolling out about 1,000 smart electricity meters, called CleverZhler, to households in Friedrichshafen in 2009. In Germany, EDF subsidiary EnBWs Meregio project in Baden-Wrttemberg aims to create a model region with minimal emissions. By 2013, it plans to have in place an intelligent electrical supply network that links home-based microgeneration sources of electricity with communications and energy storage to help reduce emissions efficiently across the region. Eventually, the network is envisioned as connecting 100,000 retail and business customers. As of 2010, the government has mandated that smart meters must be installed in all new buildings.
France
E RDF, a subsidiary of the utility company EDF, is currently working to prepare for its Linky project, which aims to replace 35 million electricity meters in French households with smart meters. Once completed, it would take Enel Spas existing title for largest smart meter rollout to date (27 million meters in Italy between 2000 and 2007). A pilot installation for the Linky project was set to begin in March 2010 and be finished later in the year.
Hungary
E.ON Hungria Zrt., one of the countrys largest utility firms, upgraded its industrial energy metering system by working with Landis+Gyr. The data acquisitions systems overhaul features more than 19,000 new meters at various metering points.
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Ireland
E nergy Minister Eamon Ryan launched the National Smart Meter plan in 2008, with the goal of installing a smart meter in every household within five years. As of January 2010, 6,500 electricity customers (5,700 households and 800 businesses) were taking part in a smart meter trial set to run through to the end of the year. The results of that pilot programme will be used to determine the plan for a full-scale deployment across the country.
Netherlands
In the Netherlands, the utility Oxxio began rolling out smart meters in 2005. As of March 2009, the company had equipped more than 100,000 households with one or two smart meters for electricity and gas 180,000-plus meters in total. (The Dutch government had first suggested mandatory smart metering for the country, but has since reversed that decision to make the rollout voluntary.)
Poland
Italy
E nel Spa of Italy deployed Echelon smart meters to more than 27 million customers the largest rollout yet between 2000 and 2005.
In 2009, Vattenfall completed installation of automatic meter reading systems although not fully smart meters for industrial customers in Poland.
Spain
Malta
A s part of a pilot programme, Enemalta began deploying 5,000 smart meters across Malta in 2009. Working with IBM, the electricity and water company expects to replace a total of 250,000 electricity meters by the end of 2012.
Spain In July 2009, Enel and Endesa (a utility in which Enel acquired a 25.01 per cent stake in 2009) announced plans to install 13 million smart meters in Spain as part of the Cervantes project.
Sweden
In 2009, Vattenfall completed installation of automatic meter reading systems although not fully smart meters for all its electricity customers in Sweden. Launched in 2003, the rollout affected some 900,000 customers.
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UK
T he UKs First Utility became the countrys first energy company to begin offering free smart meters to all its customers, starting with households in the East and West Midlands. As of October 2009, more than 30,000 customers had signed up for the service. I n March 2010, British Gas chose Landis+Gyr to help it roll out the countrys first commercial-scale smart meter deployment. The project calls for installation of up to one million smart dual fuel electricity/gas meters. British Gas says the meters could eventually help customers save more than 200 million in energy costs by 2020.
OnStream, National Grids metering business, plans to launch a smart electricity/gas meter pilot project in 2010. Working with utility companies npower and Scottish and Southern Energy, OnStream expects to install some 2,000 meters during the summer. Starting in April 2010, a government-funded year-long trial got under way through a partnership between the sustainability group Sustainable Blacon and home energy management service provider AlertMe. The trial involves 150 households: 50 will receive AlertMe energy management systems, another 50 will use passive energy monitoring systems and the final 50 will have no energy monitoring.
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Status Review on Regulatory Aspects of Smart Metering (Electricity and Gas)
European Regulators Group for Electricity and Gas: Status Review on Regulatory Aspects of Smart Metering (Electricity and Gas) (Oct. 2009)
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Market Drivers
Across Europe, there is growing pressure to reduce carbon dioxide emissions to minimise climate change. That pressure is one of the key drivers behind the push for smart metering and, ultimately, a fully smart grid. In the UK, for example, the Low Carbon Transition Plan aims to cut carbon emissions by 34 per cent by 2020. The plan also calls for Britain to derive 40 per cent of its electricity from low-carbon sources by that time. Smart metering is seen as a way to reduce energy consumption, which is otherwise projected to keep growing across the continent over the next two decades (although not as rapidly as expected in developing countries). Its also aimed at improving efficiency, not just at the household level, but utility-wide. For energy providers, smart meters promise to slash uncertainties in electricity consumption data and billing, eliminate the cost of manual meter readings and alert utilities to problems and outages more quickly and effectively.
For consumers, Smart Meters provide
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1. 2. 3. 4. 5.
0 kWh
Greater control over energy consumption bills Faster, easier change in energy services and suppliers Greater potential for microgeneration Quicker (real-time) and more accurate meter readings The ability to shift energy use to lower-cost, off peak times
(Source: Greenbang)
Smart metering is aimed at improving efficiency, not just at the household level, but utility-wide
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Market Drivers
An infrastructure with smart meters will also be better able to manage the changing conditions brought by a growing supply of intermittent, renewable energy sources like wind and solar power. In 2008, for example, utilities in Texas were able to keep the lights on even when low winds reduced turbine output to near nothing because smart demand response enabled them to automatically and temporarily reduce energy consumption by devices like refrigerators that dont require continuous power to function. Another factor driving the European smart meter market is one noted earlier in this report: dwindling fossil fuel production amid rising global demand. Initiatives across Europe are launching to respond to such concerns by reducing transports dependence on oil and moving toward electric cars. However, that raises the need for a more modern and resilient electrical grid, one in which energy and data can flow both ways so cars can charge during times of low demand or act as energy sources at peak demand. A smart grid like that cant exist without smart meters. Another trend making smart meters more important is the expansion of microgeneration small, household-based solar panels or wind turbines. Aiming to boost energy security, governments are encouraging microgeneration efforts via subsidies and feed-in tariffs. But small-scale energy production can only be effective at the large scale if, again, energy and data can travel both ways on the grid. Bringing smart meters to Europes energy grid is also a necessary part of updating an infrastructure thats well past its prime. Both the electricity generation and distribution systems are in need of upgrade and replacement anyway, and smarter technologies will be vital to meet tomorrows energy needs.
Dwindling fossil fuel and increasing global demand is driving the European smart meter market
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Benefits expected from a rollout in smart meters
European Regulators Group for Electricity and Gas: Status Review on Regulatory Aspects of Smart Metering (Electricity and Gas) (Oct. 2009)
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Obstacles
While government and industry support for smart metering is strong, a number of significant hurdles remain to be overcome before the first chapter of the smart grid dream becomes reality. How to pay for the transition, in particular, is a great concern. Ultimately, the cost of a smart meter rollout will be borne by the customers whose households receive the new technology although proponents insist that expense will be easily offset by improved efficiency and, ultimately, lower energy bills. In todays early stages, though, utilities and government agencies must dig into their own pockets or find funding elsewhere to support pilot projects and larger deployments. And smart metering companies must hope not only that that funding is found, but that it makes it into their accounts rather than a competitors to help pay for further research and development. A lack of standards and an overall framework for smart metering and, ultimately, a smart grid, also stands in the way. However, that could soon change if the efforts now under way in both the UK and Europe bear fruit as hoped. The European Commissions OPEN meter project expects to complete a set of standards for the industry by the end of June 2011. And Ofgem, Britains oil and gas markets regulator, is set to release its recommendation for smart metering even sooner: on July 1, 2010. Such standards will likely make the path forward clearer, but they could end up favouring some smart metering companies technologies over others. That could lead to some shaking up of the sector as it now stands, with ultimate winners and losers becoming more apparent over the next few years.
Smart metering companies must use funding for further research and development
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ERGEG draft guidelines of good practice on regulatory aspects of smart metering
European Regulators Group for Electricity and Gas: An ERGEG Public Consultation Paper on Draft Guidelines of Good Practice on Regulatory Aspects of Smart Metering for Electricity and Gas (June 2010)
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Obstacles
Another potential obstacle to a mass smart meter deployment is resistance by end users. Companies looking for a piece of the European smart metering pie will need to avoid the mistakes of earlier meter rollouts in places such as the US, where some customers have complained that smart meters dramatically increased, rather than decreased, their energy bills. The risk here, if not properly managed, goes beyond mere bad PR: some complaints in the US have already led to lawsuits, which are certainly an undesirable expense for any organisation. Utility customers and some industry professionals as well have also expressed concern about smart meterings potential data security risks. In the Netherlands, for example, officials decided not to make smart meters mandatory after hearing objections from groups worried about consumer privacy. Beyond overcoming customers doubts and reservations, utilities and metering companies will also have to educate people about how best to take advantage of smart meters benefits. Smart metering cant achieve its goals if households dont act on the new levels of energy-use (and cost) intelligence they gain. From the standpoint of smart metering companies and utilities, the issue of scalability could also prove a challenge. Rolling out trials for 5,000 or 10,000 households is one matter; equipping an entire continent with well over 100 million meters in the next 10 years is an entirely different one. Managing a smart-metered infrastructure will also take more advanced communication, data and control technologies for utilities, along with ample and adequately trained personnel to handle them. Theres also the challenge of making the first-stage technology from meters to data management sufficiently flexible so it can be easily and cost-effectively upgraded to support more advanced phases of a smart grid. And, of course, implementing a fully smart grid will take even more investment than a smart meter rollout alone.
Smart metering cant achieve its goals if households dont act on the new levels of energy-use (and cost) intelligence they gain
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Privacy and security issues

European initiatives to install smart meters and, ultimately, even more advanced smart-grid energy management technologies in homes and businesses inherently raise a host of privacy and data security concerns. For example, its clear that switching from a system in which a human visits a home every six months or so to read an electricity meter in person, to a system in which an automated reading of energy consumption is generated every 15 minutes, provides far more information about homeowners daily habits and whereabouts. Such prospects have raised considerable concern amongst consumer and privacy groups across the EU with varying results. In the Netherlands, for instance, authorities backed down from their initial attempts to make smart metering mandatory after vocal pushback by some segments of the public. Officials and industry leaders say standardisation of smart metering technology will eventually help address and resolve some of consumers privacy and data security issues. The establishment of best practices is also aimed at reducing such concerns. In its draft consultation on smart metering good practices, for example, the European Regulators Group for Electricity & Gas (ERGEG) recommends that outside of a utilitys need to use consumption data for billing and other regulated purposes access to such data must be controlled by the customer. A similar guideline is proposed in the July 2010 smart metering prospectus released by the UKs Department of Energy and Climate Change (DECC) and energy market regulator Ofgem. Such a standard, effectively communicated to customers, is vital in light of studies that have shown most consumers believe they should have control over the details of their energy usage patterns. A smart grid survey in the US by EcoPinion, for instance, found that nearly two-thirds of consumers said their energy consumption data belong to them. It is always the customer that chooses in which way metering data shall be used and by whom, the ERGEG advises, adding that any uses beyond regulated ones must first receive a customers approval. It is of the utmost importance that the customers opinions of the smart metering system are positive, and not a source of anxiety. Thats an objective that some early implementers of smart meters have fallen down on in the past. In the US, for instance, Pacific Gas & Electrics smart meter rollout led to widespread customer uproar that continues to have negative repercussions for the company. European utilities would be wise to pay heed to such previous experiences and avoid repeating them.
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The lesson to be learned is that implementation of smart metering is more than a technical/technological issue its also one that requires proper customer education, public relations and genuine two-way dialogue. Such a lesson will prove particularly important in energy markets such as the UK, where customers are free to switch from one provider to another. Utilities that prove less than effective in their smart metering campaigns could ultimately see those failings reflected in dwindling bottom lines, while more savvy providers will have the opportunity to gain market share. The Major Economies Forum on Energy and Climate Change has said that utilities should also define security controls for each element within their systems including smart meters with the exchange of information from one element to another guided by proper risk assessments, company policies and legal requirements. Utilities implementing consumer technologies, offerings and services within a smart grids environment that fails to address these issues will encounter consumer and political opposition, restricting their ability to realise the economic promise of smart grids technologies, stated the forums December 2009 Technology Action Plan on smart grids. They may face angry regulators and customers as well as liability issues.
The Technology Action Plan adds, Consumer-based smart grids technologies put privacy interests at risk because a core purpose is to collect information related to a particular household or business. Meters already collect a unique meter identifier, timestamp, usage data and time synchronisation every 15 to 60 minutes. Soon, they will also collect outage, voltage, phase and frequency data, and detailed status and diagnostic information from networked sensors and smart appliances. These data show directly whether people were present, when they were present, and what they were doing. In many ways, the privacy and security issues arising with the rollout of smart meters are similar to those that appeared with earlier technologies such as the internet and mobile phones. As with these technologies, smart metering is also likely to eventually be comfortably accepted by consumers. However, it bears repeating that utilities and smart metering companies can do much to speed that acceptance along through proper communication and implementation programmes.
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Opportunities
The widening rollout of smart meters across Europe over the next 10 years presents a variety of investment opportunities. In fact, the opportunities extend well beyond smart metering technologies themselves into many other spaces, both product - and service-oriented. One unique aspect of the investment potential in the smart metering space is that the technology is not only expected to be widely deployed across the EU, but in many regions is mandated to be. The breadth of that deployment 80 to 100 per cent of households also distinguishes the smart meter market from many other cleantech initiatives that might be far more narrowly implemented (think a few hundred wind turbines at most at any particular site). While the meters themselves might be small, their impact overall will be mighty. Its worth noting that the firms that take the lead in Europes rollout of smart meters also stand to extend their reach as various markets move on to implement smart gas and smart water meters. The latter could prove an especially promising market, as after energy water is likely to be the next key resource in need of careful management and control across the continent. The installation alone of smart meters represents a large service market as deployments take place in the different European nations. After that, the market for maintenance services and upgrade management as new applications become available is also likely to grow ... another investment opportunity. Furthermore, the smart metering market is unique because it is not a standalone sector but an integral element of the eventual smart grid connecting millions of networked homes and smart appliances. In that regard, smart meters are not simply a one-time investment but a long-term piece of the smart grid puzzle that will be in continual need of upgrading, refinement, maintenance and eventually replacement. In addition, a whole suite of services will be needed to manage the communications technologies and vast quantities of data that will be part of any smart-metered region. That opens up additional investment opportunities for ICT firms, software management companies and other services and consultancy providers.
Smart meters are not simply a one-time investment but a long-term piece of the smart grid puzzle
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Opportunities
As Europe builds out its smart meter and smart grid infrastructure, the market opportunities for keeping that infrastructure up and running not to mention continually upgraded are also likely to stay strong. Its hard to imagine, except under the most exceptional of circumstances, the technologies being switched off or abandoned once they are in place. In this respect, smart meters are a far less speculative than, say, carbon capture and storage projects or algae-based biofuels, which are many years away from commercial development. So, beyond the metering firms themselves, the ongoing rollouts of smart meters across Europe will open up investment opportunities for a whole host of related products and services. These could include: Hardware and software developers Networking services and technology providers Value-added resellers Silicon chip companies IT and systems integrators Energy efficiency solutions providers Research, development and engineering firms Utilities A glimpse at the list of partners for many smart metering companies gives an indication of the investment market potential: A ccenture (management consultancy partnering with Itron) British Gas (Landis+Gyr UK utility partner) Disenco (Sentec partner specialising in micro-combined heat and power systems) Diversified Power Solutions (Echelon partner specialising in energy efficiency) Eandis (Elster Belgium utility partner) Helen Electricity Network (Landis+Gyr Finnish utility partner) Integr8 (Itron UK renewable energy company partner) Logica (IT software and systems integrator partnering with Itron) Magyar Telekom (telco partner of AlertMe) OnStream (National Grid metering company and Sentec partner) SAP AG (Landis+Gyr business software partner) Siemens IT Solutions and Services (Landis+Gyr IT solutions and services partner)
Smart meters will open up investment opportunities for a whole host of related products and services
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Opportunities
S tark Software (data collection software partner of Iskraemeco) StreamServe (sofware applications provider partnering with Itron) TEC Systems (Echelon partner and systems integrator) T-Hrvatski Telekom (telco partner of AlertMe) Unitronics (Echelon partner specialising in the IT and communications market)
Clearly, the influence of the burgeoning European smart meter market extends far beyond the providers of the meters themselves and will continue to do so for years to come.
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Key influencers of the smart metering market

A number of companies are influencing the ideas behind smart grid in Europe and how technology should be adopted. Several have taken a particularly prominent position through their involvement with some of the more extensive smart metering implementations that have already occurred in countries like Italy and France. Echelon, for example, worked with Enel Spa on the largest metering rollout to date: 27 million units installed in Italy between 2000 and 2005. (And Enel is now planning to deploy another 13 million smart meters in Spain.) And then theres Landis+Gyr, which enjoys wide recognition in the utility markets in the US and is rapidly expanding its reach in Europe. Its taken the lead in helping to create a new smart metering industry association to advance interoperability standards and recently partnered with the giant Siemens to launch an integrated, end-toend smart metering offering. Landis+Gyr is also part of a consortium set to work with EDF/ERDF on a 35-millionmeter project launching in France. Sentec, meanwhile, is keenly focused on the UK as the country prepares for its massive launch into smart metering. It has the advantage of being based in the UK, as well as having a working partnership with National Grid, one of the nations largest utilities. Company profiles Listed below are profiles of the smart grid-focused companies that have already established a leading foothold in parts of Europe, along with emerging firms that are likely to capitalise on planned rollouts across the EU27. They are ranked according to the breadth and depth of their Europe-focused partnerships, with the top 10 influencers in the sector being: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Echelon Landis+Gyr Itron Iskraemeco Sentec OnStream Tendril Silver Spring Networks Elster AlertMe.
Extensive smart metering implementations have already occurred in countries like Italy and France
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1. Echelon
While its headquartered in San Jose, California, Echelon is exerting considerable influence on the European smart metering market. One of its key achievements to date was helping Enel Spa of Italy roll out smart meters to more than 27 million of the utilitys customers between 2000 and 2005 the largest deployment of smart meters yet. Outside of the US, Echelon markets its Networked Energy Services (NES) system primarily through value-added resellers (VARs) such as E.ON ES in Sweden. Other energy companies that Echelon has worked with include SEAS-NVE, Energi Midt and NRGi (Denmark); Vattenfall and E.ON (Sweden); Linz (Austria); and Fortum (Finland). Over the past three years, the majority of Echelons revenue has come from six key customers: utilities EBV Electronik GmbH, Enel Spa and Duke Energy; and VARs Eltel Networks, Telvent Energia Y Medioambiente and ES Elektrosandberg. The partnership with Eltel generated a full quarter of Echelons revenue in 2009.
Contact details
Postal Address: Telephone Number: Email: Echelon Corporation, 550 Meridian Avenue, San Jose CA 95126, USA 408 938 5200 lonworks@echelon.com
On its own or through its VARs, Echelon is currently working with more than 100 utility firms on pilot metering projects or deployments around the world. Globally, the company has so far distributed more than 2 million NES smart meters, and its technology underlies the 27 million smart meters deployed across Italy.
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2. Landis+Gyr
Headquartered in Zug, Switzerland, Landis+Gyr operates in 30-plus countries. It shipped its 2 millionth FOCUS AX smart meter late in 2009. Landis+Gyr has partnered with a consortium working with EDF/ERDF to deploy project Linky, which aims to roll out 35 million smart meters in households across France between 2012 and 2017. The project would be the largest smart metering deployment in the world to date. (Other members of the consortium, which is managed by Atos Origin, include Actaris (Itron) and Iskraemeco.) The company also recently announced it would work with British Gas to deploy the first commercial-scale smart meter deployment in the UK. Having widely deployed meters on both sides of the pond, Landis +Gyr enjoys solid name recognition in the utility sector. Its also taken on the role of an industry leader by joining with fellow smart metering firms Iskraemeco and Itron to form the Interoperable Device Interface Specifications (IDIS) Industry Association. The organisations aim is to promote open standards and specifications to make interoperability a reality in the smart metering industry.
Contact details
Postal Address: Telephone Number: Email: Landis+Gyr AG, Feldstrasse 1, CH-6301 Zug +41(0)41 935 6000 info@landisgyr.com
The company has moved aggressively this year, rolling out a new end-to-end smart metering solution with the giant Siemens IT Solutions and Services. And in late June, it also announced it had signed an agreement with the Finnish utility Helen Electricity Network to deploy 200,000 smart meters and metering services in that country. Landis+Gyr is earning a high profile in the UK, where it recently announced it would provide up to one million smart electricity/gas meters as part of British Gas/Centricas first commercial-scale smart metering deployment in that country. Other key partners include SAP AG, Cisco, Microsoft (Microsoft Hohm), Vattenfall Lmp, Tendril, Kemin Energia and E.ON Hungria Zrt.
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3. Itron
Based in Liberty Lake, Washington, Itron has a second headquarters in Luxembourg, where it operates under the name Actaris. It provides smart metering, data collection and software for more than 8,000 utilities delivering energy and water services around the globe. So far, it has deployed more than three million pay-as-you-go smart meters in the UK. Together with Landis+Gyr and Iskraemeco, Itron is one of the founding members of the Interoperable Device Interface Specifications (IDIS) Industry Association. Its also working with the same two partners in an Atos Origin-managed consortium to help EDF/ERDF roll out 35 million smart meters in France. Itron also has active working relationships with Iberdrola, Eandis, Elster, Ambient, Cisco, GE, Trilliant and Tendril.
Contact details
Postal Address: Telephone Number: Email: 2111 N Molter Road, Liberty Lake, WA 99019, USA (509) 924 9900 support@itron.com
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4. Iskraemeco
Slovenia-based Iskraemeco, founded in 1945, serves a global market and distributes devices for measuring electricity, gas, heat and water. Its mission is to enable utilities and industry to improve performance while lowering environmental impact. It currently has metering devices in more than 100 countries. In May 2010, Iskraemeco began operating a new manufacturing facility in Sarajevo thats expected to produce around 50,000 smart meters a year. The utility firm Elektroprivjeda BiH plans to roll out those meters to its 700,000 customers over the next 10 years. Iskraemeco has also taken the lead in working with both Landis+Gyr and Itron (Actaris) to launch the Interoperable Device Interface Specifications (IDIS) Industry Association and plan for a mass rollout of smart meters in France.
5. Sentec
Founded in 1997 and based in Cambridge in the UK, Sentec is a technology consulting firm that develops products for the smart metering and energy management industries. It has licensed meter designs for electricity, gas and water measurement. So far, the company claims to have five million of its meter designs most of them smart electricity meters in operation. Sentec has served markets in the UK, North America and Asia, and has seen rapid growth in its business over the past two years, with turnover increasing by 150 per cent. Most recently, Sentec has partnered with OnStream (National Grid) to together develop a custom smart electricity meter designed specifically for the UK market. The two companies plan to launch a trial of the meters in the summer of 2010, and aim to gain the business of at least some of the other big six utilities in the UK (with the exception of British Gas, which has already hooked up with Landis+Gyr). Other Sentec partners include Onzo, Polysolar and Sensus Metering.
Contact details
Postal Address: Stanton House, 49-51 Stanton Road, Ilkeston, Derbyshire, DE7 5FW Telephone No: Email: +44 (0) 1159 445544 sales@iskraemeco.co.uk
Contact details
Postal Address: 5 The Westbrook Centre, Milton Road, Cambridge, CB4 1YG Telephone No: Email: +44 1223 303800 info@sentec.co.uk
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6. OnStream (National Grid)

OnStream, National Grids metering business, installs, maintains and/or provides readings for around 20 million household, business and industrial meters in the UK. Its developed a dual-fuel smart metering system to measure both electricity and gas consumption, and has installed around 27,000 such meters so far. OnStream has a long-term contract with British Gas, and is trialing smart meters with both npower and Scottish and Southern Energy. It has also partnered with smart metering firm Sentec to develop a meter specially developed for the UK market.
7. Tendril
Based in Boulder, Colorado, Tendril provides products and applications for two-way communication between utility companies and their customers. The companys suite of offerings includes in-home energy monitoring displays, smart thermostats, load control switches for supply and demand management and IP gateway devices for data delivery. Tendril has partnerships with many smart grid-focused organisations, including Elster, GE, Itron, Landis+Gyr, Silver Spring Networks, IBM, the CURRENT Group, Intel, Accenture, Capgemini and Navigant Consulting.
Contact details
Postal Address: OnStream, 35 Homer Road, Solihull, West Midlands, B91 3QJ Telephone No: Email: 0845 757 3212
salesandmarketing.contact@onstream.co.uk
Contact details
Postal Address: 5395 Pearl Parkway, Suite 100, Boulder, CO 80301, USA Telephone No: Email: 303-951-4360 sarah@parsonspr.com
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8. Silver Spring Networks

Headquartered in Redwood City, California, Silver Spring Networks is a smart grid-focused company that works to help utilities improve efficiency, reduce emissions and enable customers to monitor and manage their energy usage. It provides utilities with both hardware and software, as well as the services needed to deploy smart energy management offerings. Silver Spring has worked with a number of utility companies, including Pacific Gas & Electric, Florida Power & Light, Pepco Holdings, Jemena Electricity Networks and United Energy Distribution. Its also partnered with Landis+Gyr, GE Energy, Itron, Elster, Tendril, Cisco, Onzo, eMeter, GridPoint, Oracle and Invensys.
9. Elster Group
Based in Germany, the Elster Group lays claim to one of the most extensive installed meter bases in the world. It says it has deployed 200 million-plus metering devices globally over the past 10 years. Recent company acquisitions have helped to boost Elsters profile in the European metering market. EnergyICT, a Belgian-based company acquired by the Elster Group in 2009, is currently working with the Belgian electricity and gas utility Eandis on a 4,200-unit smart meter rollout thats one of the countrys largest pilots to date. The Elster Group also provides meters for water utilities, and acquired the SmartMeter and Ajusta businesses from the UKs Severn Trent Services in 2009. It operates testing facilities in France, the UK, Spain, Germany, Slovakia, Benelux and Turkey, among others.
Contact details
Postal Address: Silver Spring Networks, 555 Broadway Street, Redwood City, CA 94063 Telephone No: Email: 650-298-4200 info@silverspringnetworks.com
Contact details
Postal Address: 130 Camford Way, Sundon Park, Luton, Bedfordshire, LU3 3AN, UK Telephone No: Email: +44 (0)1582 846400 sales@elstersmartmeter.co.uk
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10. AlertMe
Based in Cambridge in the UK, AlertMe provides a variety of home energy management products and services, including meter readers, smart plugs and online/mobile energy monitoring services. It also enables online management of home heating and security. Founded in 2006, AlertMe markets its products and services directly to consumers and through partnerships with telcos and other service providers. It has teamed up with organisations as diverse as Google PowerMeter, British Gas, Magyar Telekom of Hungary and T-Hrvatski Telekom of Croatia.
11. GE
With its headquarters in Fairfield, Connecticut, global technology, finance and media giant GE is developing a variety of smart grid-enabling technologies as part of its ecomagination initiative, which aims to solve the worlds biggest environmental challenges while driving profitable growth for GE. Among the leading organisations participating in ecomaginations advisory board are Climate Change Capital, the Pew Center on Global Climate Change, Khosla Ventures, World Resources Institute, Ceres, University College London, the Massachusetts Institute of Technology and Google. In April of 2010, GE opened a new Smart Grid Technology Centre of Excellence in Atlanta, Georgia. The centre is partnering with the Georgia Institute of Technology to develop and test new smart-grid technologies for improved energy efficiency, renewable energy management and consumer control of power usage.
Contact details
Postal Address: AlertMe.com Ltd, Compass House, 80 Newmarket Road, Cambridge, CB5 8DZ Telephone No: Email: +44 (0)1223 222150 info@alertme.com
Contact details
Postal Address: GE Energy, No2, The Arena, Downshire Way, Bracknell, Berkshire, RG12 1PU, UK Telephone No: Email: +44 (0)1344 460500 tbc
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12. Sentilla
Based in Redwood City, California, with offices in Reading, UK, Sentilla provides a platform for demand-side energy management in data centres and commercial and industrial facilities. The platform tracks and analyses energy consumption in real time using a web-based interface. Sentilla has partnered with a number of companies to develop and distribute its energy-management products, including IBM, Cisco, SAP, Sun Microsystem and various reseller partners.
13. Oxxio
Based in the Netherlands, Oxxio buys electricity and natural gas from energy wholesalers and resells those services to more than 600,000 customers. It started up its smart metering business to boost its service offerings and to gain independent and more detailed access to data about its customers energy consumption. The company also expects to begin producing its own energy in 2010 with a new power plant in Rotterdam. Oxxio based its automated meter management system on the one developed by Enel Spa in Italy, and enlisted IBM to develop and operate the metering and data-management infrastructure.
Contact details
Postal Address: 400 Thames Valley Park Drive, Reading, RG6 1PT, UK Telephone No: Email: +44 (0) 118 963 7780 sales@sentilla.com
Contact details
Postal Address: Marathon 5, Hilversum, Noord Holland, 1213 PC Netherlands Telephone No: Email: +31 (0)356 265800 tbc
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Analysis
The next two to three years will be critical ones for the smart metering sector for several reasons Firstly, they will finally see definitive standards and frameworks for the industry released by both the UK and the rest of the EU. Secondly, those standards could exert a significant impact on which metering firms come out on top. And, thirdly, to meet their goals of 100 per cent and 80 per cent smart meter coverage by 2020, Britain and the remainder of Europe respectively will need to begin the process for massive deployments shortly. Enel Spas experiences with its large-scale rollout in Italy will provide instructive lessons for the future, as will ERDFs move forward with its planned installation of 35 million meters in France by 2017. Enel Spa and Endesa have also begun planning a 13-million-meter rollout in Spain. Such plans indicate Italy, in particular, but also France and Spain are maturing markets for smart meters or will be in the near future. Finland, Denmark and Sweden are also well on their way toward implementing next-generation metering, meaning smart meter and smart grid companies will soon have to focus on growth in other regions that today remain behind the pack. Thats where the opportunities will be, if those remaining European countries hope to meet the EU goal of 80 per cent smart meter penetration by 2020. As the overview table of smart metering rollouts across Europe indicates, those countries include Austria, the Czech Republic, Denmark, France, Germany, the UK, Ireland, the Netherlands, Norway, Poland, Portugal and the Slovak Republic. However, as noted previously, EDF/ ERDF has plans to deploy 35 million meters across France between 2012 and 2017. Three of the remaining potential markets are also among Europes most populous, suggesting they are due to have an outsized impact on the smart meter market over the next 10 years, They include: Germany, with 38.9 million households as of 2010; the UK, with 27 million households; and Poland, with 14.7 million households. With minimal smart metering coverage so far, these three nations could if they aim to achieve EU efficiency targets comprise more than half of the new smart meter market.
Massive smart meter deployments required to meet the UK goal of 100% coverage by 2020
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Analysis
With its goal of 100 per cent smart metering by 2020, the UK is poised to make the next big splash in implementation. With the recent DECC-Ofgem release of a prospectus outlining proposed frameworks for the industry, smart meter companies now have a clearer path forward. After that, the UK should expect to see metering pilots and rollouts begin to accelerate across the country. Germany will then probably be the next large market to appear in the industrys cross-hairs. Although less than 1 per cent of all electricity meters in the country were smart as of 2008, more advanced metering is now required for all new construction. Furthermore, Germany is already a leader in renewables development and efforts to integrate electricity-based transport into the national grid. Smart metering will be a necessary addition to such a system sooner or later. In addition, green and efficiency-minded Germans indicate theyre ready to see smart meters in their homes. A survey of more than 1,000 utility customers in early 2010 found that eight out of 10 see smart metering as a way to reduce energy bills and manage appliances to run when electricity costs are lowest. While most of the top German utilities are already testing some smart meters, though, their customers appear to be waiting to see more incentives for adoption, whether through better communication of benefits, low-cost or free smart meters and clearer price differences between peak and off-peak consumption. Poland will probably be the last of the three populous late adopters to take the smart meter plunge. However, one of the countrys largest energy companies (Polska Grupa Energetyczna) is now conducting a pilot rollout of some 800,000 smart meters in Warsaw nearly one-sixth of its total customer base. And plans now under way to privatise the energy sector will also likely clear the way for accelerated investment in smart metering. The success of metering goals will also depend on the effectiveness of industry-wide efforts to promote interoperability, scalability and flexibility. All these will be vital for ensuring the technologies deployed over the next several years can be easily and cost-effectively upgraded to deliver more advanced smart grid applications in the future.
Success of metering goals depends on the effectiveness of industrywide efforts to promote interoperability, scalability and flexibility
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Analysis
New organisations such as the Interoperable Device Interface Specifications (IDIS) Industry Association recently established by metering firms Landis+Gyr, Iskraemeco and Itron will play an important role in this regard. While the mechanisms for paying for the widespread rollout of smart meters across Europe remain to be finalised, consumers are expected to ultimately foot a large balance of the bill. The key for winning their acceptance of this fact will lie with utilities and smart metering firms effectively conveying the message that smart metering will over the long term save households money especially as energy and carbon prices rise over time. In the meantime, both the European Commission and UK government are making significant investments in smart metering research, development and pilot projects. Europes Electricity Grid Initiative, for example, budgets 1.9 billion for such activities between 2010 and 2018, although just a portion of that is directed specifically at smart meters. The UKs Ofgem has also established a Low Carbon Networks Fund of up to 500 million to support electricity distributors test new technologies, including demand-side management and smart metering. Projects selected for funding are scheduled to be announced in December of 2010. Venture capital will also continue to play a large role, as many investors see smart meters as a key efficiency technology with a solid and short-term potential for returns on investment. In just six months time (between November 2009 and April 2010), for example, smart metering firm Landis+Gyr successfully raised $265 million in capital to help pay for its ongoing growth and operations. Utilities, too, are investing with an eye toward not-toolong-term paybacks. Consider OnStream (National Grid), which over the past three years has invested 384 million to build its metering business.
Projects selected for funding are scheduled to be announced in December of 2010.
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Analysis
The planned continent-wide rollout of smart meters over the coming decade will probably lead to some shakeout in the sector, with clear winners likely to emerge over the next few years. However, smart metering firms with lotterywinning technology interoperable, scalable and flexible enough to accommodate future smart-grid upgrades can expect significant market opportunities as the EU moves forward to achieve its 2020 goals. That market could include as many as 133 million to 145 million smart electricity meter installations. With major initiatives already completed in Italy, and now getting under way in France and Spain, the next key markets will probably be the UK, Germany and Poland, in that order. Both Germany and the UK, in particular, have made smart metering a key element of their carbon reduction goals and the fact that they are now playing catch-up with early adopters like Italy and the Nordic countries makes them both poised to dominate the smartmeter market over the next 10 years. Several smart meter companies appear most likely to capitalize on this coming growth: Echelon, which has already established itself as a huge player through its work with Enel Spa in Italy; Landis+Gyr, which along with Atos Origin, Actaris and Iskraemeco are set to launch the mass rollout of smart meters in France; and Sentec, which has its foot in the door with National Grid/OnStream in the UK market. In particular, its likely that Sentec will switch into high gear once Ofgem gives its direction for the UK smart metering rollout. It should also probably come as no surprise that these three companies Echelon, Landis+Gyr and Sentec are also performing relatively well in the market right now, despite ongoing economic challenges. Over the past year, Landis+Gyr has raised some $250 million in funding to support company growth and project development, while Sentec has more than doubled its turnover over the past two years. And, although Echelon reported a decline in revenues in 2009 compared to 2008, it has recently inked some strong new partnerships, in particular, a long-term agreement with Duke Energy, the third-largest electric utility in the US.
The market could include as many as 133 million to 145 million smart electricity meter installations.
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Recommendations
Government
E U: Act as a central clearinghouse for information on standards and projects for all stakeholders (countries, local governments, utilities, tech firms, service providers, new businesses and consumers) N ational: Communicate and coordinate with utilities, consumers and other stakeholders for consistency and clarity on rollouts L ocal: Engage both utilities and consumers, along with any other relevant stakeholders, to ensure local transparency and community involvement
Business
U tilities: Pay heed to the mistakes made by other utilities in earlier rollouts and take the steps necessary to leapfrog them; involve and communicate with consumers from the start; launch active education campaigns that are transparent about potential consumer concerns such as data security T ech companies: Keep technologies scaleable and upgradeable; participate in standards initiatives S ervice providers: Communicate with utilities and consumers to address evolving service needs and develop new services to meet changing demands N ew businesses: Keep abreast of ongoing projects and developments with an eye toward new business product/ service opportunities; communicate with stakeholders to assess evolving needs
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References
Please note: References in this section have live website links. AlertMe AlertMe AlertMe: AlertMe now available in Croatia through T-Hrvatski Telekom AlertMe: AlertMe now available In Hungary through Magyar Telekom British Gas Center for International Relations Smart Grid Development in Poland (pdf) Department of Energy and Climate Change (DECC) Appraisal of Costs & Benefits of Smart Meter Roll Out Options (pdf) Dong Energy 2009 Annual Report Eandis Eandis signs contract to supply smart energy meters (pdf, Dutch only) Echelon EDF Environment - Climate Change EDF Managing Energy Demand The Elster Group eMeter Germany -- Like Others -- Want Smart Meters EnBW AG Annual Report 2009: The smart grid Enel Enemalta Energie Steiermark Big turnout on Smart electricity meters: 400 customers searched for test (German only) Energy Regulatory Office Towards Smart Grid in Poland Energy Regulatory Office Consumers Educational Programs as the Key Factor of Smart Grid Development Energy.eu Alcatel-Lucent and Deutsche Telekom Launch Web User Interface for Smart Metering Trial in T-City Friedrichshafen Energy.eu Key elements of the Internal Energy Market Package as proposed by the Commission on 19 September 2007 (pdf) Energy.eu Gas and electricity market statistics (pdf)
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References
Energy.eu A European Strategy for Sustainable, Competitive and Secure Energy: What is at stake - Background document (pdf) Energy.eu European Energy and Transport E.ON Energy 2009 Annual Report European Energy Regulators European Environment Agency About household consumption Eurostat Electricity consumption of households Eurostat Number of households Fast Company Germanys Got Tweeting Smart Meters Federation of German Consumer Organisations Smart Metering Abstract (pdf) First Utility Leading the way with smart meters in the UK Fortum Fortum invests EUR 170 million in automatic meter management in Finland Fraunhofer Institute for Wind Energy and Energy System Technology GE IBM IBM Poland IBM Poland and WINUEL Develop the First Polish Smart Metering Software Package Iskraemeco Itron Landis+Gyr Landis+Gyr Vattenfall creates central Europes largest GPRS-based meter data reading system MeRegio: Smart Grids National Grid National Institute of Standards and Technology (NIST) Smart Grid Collaboration Site nrc handelsblad Smart energy meter will not be compulsory
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References
ODYSSEE MURE Energy Efficiency Trends and Policies in the Household & Tertiary sectors in the EU 27 (pdf) Ofgem OnStream Open Gateway Energy Management Alliance (OGEMA) OPEN Meter Oxxio Prask energetika Group (PRE) About us Sentec Sentilla Siemens Sustainable Buildings - Smart Meters Silver Spring Networks Smart House/Smart Grid Smart Houses for a Smart Grid (pdf) Tendril UK Industry Taskforce on Peak Oil and Energy Security The Utility Connection Vattenfall 2009 Annual Report (pdf)
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About us
What is Greenbang? Greenbang is an independent, award-winning company that provides research and publishing on sustainability, energy, investment and technology. Its writers have written for the Financial Times, the Economist Group, the Telegraph, ZDNet, The Register, silicon.com plus a number of technology and business publications dotted around the globe. The Greenbang team every day talks to leaders behind planet-changing innovation and business models. Its mission is to provide easy-to-understand information on business and technology that can help humankind achieve a low- carbon, sustainable and profitable future from macroand-micro-economic perspectives. Greenbang is read monthly by more than 130,000 people. Its reports are read by people in large organizations, such as the UN, to smaller start-up companies looking for their first investment. Dan Ilett CEO and Editor in Chief Shirley Siluk-Gregory - Editor David Geere - Creative Director Raphael Raggatt Researcher Andy Driver - Designer Greenbang.com would like to thank all the organisations and people who participated in this research.
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Coming next from Greenbang

Greenbang Researchs next report examines how realistic widespread use of electric cars really is in terms of Europes energy infrastructure and investment requirements. The study analyses the potential impact of electric cars on peak energy demand and grid management as the EU proceeds with efforts to reduce carbon emissions, increase the contribution of renewables and build a smart grid infrastructure. The report seeks to provide critical intelligence for policymakers at every level, as well as for energy utilities, investors, car companies and technology firms. It answers such key questions as: What can Europes energy infrastructure handle? H ow much investment will be needed to drive widespread electric car use, and who will pay? What are the main drivers and obstacles? W hich primary influencers will likely affect developments over the next 40 years? Who needs to read this report? Business people/investors Utility companies Car companies Technology firms Government and policy makers
Contact: reports@greenbang.com for more information
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Smart Meter Outlook 2020

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Europes Smart Meter Outlook for 2020 Copyright Greenbang.

com Ltd 2010

Europes Smart Meter Outlook for 2020: A $25 Billion market

The State of Play Today

Status Review on Regulatory Aspects of Smart Metering (Electricity and Gas)

For consumers, Smart Meters provide

Benefits expected from a rollout in smart meters

ERGEG draft guidelines of good practice on regulatory aspects of smart metering

Privacy and security issues

Key influencers of the smart metering market

6. OnStream (National Grid)

8. Silver Spring Networks

Projects selected for funding are scheduled to be announced in December of 2010.

Coming next from Greenbang

Contact: reports@greenbang.com for more information

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