The smart metering industry has been growing steadily and is expected to be boosted by favourable government policies. The EU directive towards energy conservation is one of the primary reasons for future growth. Countries across Europe have adopted varied forward looking policies towards making the switch from conventional meters to smart meters. The report begins with an overview of the industry including market size and growth. The policies towards implementation of smart meters in European countries have been highlighted. An analysis of drivers explains factors contributing to the huge potential based on EU directive and energy conservation goals, liberalization of energy market in Europe, cost benefits leading to favourable market conditions and demand side management. The key challenges identified include huge investment requirements, lack of standardization, security issues and lack of acceptability among small consumers. The opportunities and benefits accruing to utilities, manufacturers, government and public, and ICT’s have been discussed. The major players across the value chain have been identified segregated on the basis of geographical presence. A snapshot of each company, including an overview as well as the business outlook, has been provided.

1. Smart Metering - Europe
June 2009

2. Executive Summary
Total XX mn installed in Europe in 20--; Expected to reach YY mn by 20--
a% of European consumers are expected to have smart energy meters installed in their homes by
20--
Market Smart metering initiatives are more advanced in Western Europe and Nordic region
Full compulsory SM roll out policy in country U,V and W
LE
Drivers: Challenges:
EU directive and energy conservation goals Huge investment required
Drivers &
Challenges
P
Liberalization of energy market in Europe
Cost benefits leading to favorable market
conditions
M
Lack of standardization
Security issue
A
Lack of acceptability among small
Demand side management
S
consumers
Utilities: Reduces operational costs, control levels during peak demand, easy identification of
faults, demand side management and forecasting additional generation levels
Opportunities
Manufacturers: Favorable government policies and expected standardization of technology
& Benefits
Government and Public: Improve energy efficiency and facilitating micro-generation
ICT: Demand for enhanced M2M communication and demand for consulting services
There exists a large number of players across the value chain focusing largely on country specific
growth due to varied government regulations and the lack of standardization
Competition Utilities Company U,V,W
Manufacturers Company X,Y,Z
IT Firms Company A, B, C
SMART METERING – EUROPE.PPT 2

3. • Introduction
• Market Overview
• Drivers and Challenges
• Opportunities & Benefits
• Key Players
• Key Developments
• Appendix
SMART METERING – EUROPE.PPT 3

4. Smart Metering industry in Europe is expected to boost with
increasing focus on efficient energy consumption
Market Overview Market Size
• Installed base of smart electricity meters in Europe is
expected to reach XX mn by 20--
• a% of European consumers are expected to have mn
smart energy meters installed in their homes by 20- - 100
LE
• Activity focused on Electricity Smart Metering (SM) Z
80 a% Y
Gas tends to follow, with some minor activity in Water and
Heat
• Smart metering initiatives are more advanced in
MP 60
40
U
V
W
X
A
Western Europe and Nordic region
S
Full compulsory SM roll out policy in U,V,W 20
• Recent EU joiners tend to have no formal policy of
legislation in place for SM 0
Trials are underway in many of these countries, even if 2008 2009 2010 2011 2012 2013
only small scale
• Countries with partial SM policy
X,Y,Z
New installations will reach a rate of ZZ mn units annually in these countries by 20--
New installations will reach a rate of ZZ mn units annually in these countries by 20--
Source:
SMART METERING – EUROPE.PPT 4

5. Italy and Sweden are leading the adoption of smart meters in
Europe, with others planning on large scale implementation
Timeline
2009 2012 2015 2018 2020
A The government plans to make the installation of smart meters in all homes compulsory by 20--
B
PLE
Spain to replace all meters <u kW by Smart Meters by 2018
C
D
20--
SAM
Netherlands plans on installation of smart meters and replace existing meters by
Regulatory authority proposes replacement to be concluded by 20--
Finland requires that utilities install smart
E
meters for v% of Finnish homes by 20--
France replace X mn meters
F
starting 20--
G y% installation by
20--
z%
H
installation
by 20--
Source:
SMART METERING – EUROPE.PPT 5

6. Drivers and Challenges
Challenges
Huge Investment Required
Drivers Lack of Standardization
EU Directive and Energy Conservation
Goals Security Issue
Liberalization of Energy Market in Lack of acceptability among small
Europe consumers
Cost benefits leading to favourable
market conditions
Demand Side Management
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7. Competition – Utility Firms (1/2)
Company Business Overview Future Outlook
A • Focuses on the Portugese market, owns approximately a% of • Plans full rollout of its smart grid project - Inovgrid
the electricity distribution networks in mainland Portugal • Project involves the upgradation of the company's a
km fibre–optic network, b telemeters, and c mn
meters
B • World's largest smart meter deployment was undertaken by • Expanding into wind power generation
U • Initiatives have been taken through its French
• Between 20-- - -- it deployed smart meters to its entire subsidiary Z adding X MW capacity
customer base with Capgemini as its main partner • By 20--, total investment of USD YY bn expected
• It has a generation capacity of V MW towards developing new technologies
• In 20--, revenues amounted to USDW bn
C • A global investor-owned power and gas companies operating • Investment of USD YY bn is planned in 20-- - --
across the value chain towards maintenance, replacement of existing
• Other than Europe, operations have expanded to Russia and infrastructure and expanding generating and network
North America capacity
• Approximately, a GW of installed generating capacity • By 20--, plans on generating u% of energy from
• In 20--, revenues amounted to USD XX bn renewable sources
• By 20--, plans on reducing the amount of carbon
dioxide emitted by v%
Note: This list in not exhaustive
Source:
SAMPLE
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8. Thank you for the attention
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