Smart Metering in Western Europe – 6th Edition

Smart Metering in Western Europe – 6th Edition

Summary:


Metering is a fundamental enabler for the utilities industry. At the beginning of 2009, there were approximately 253 million electricity meters; 109 million gas meters and 3 million district heating meters in EU23+2. Electricity reaches virtually every household and business in the whole of Europe, while gas is most widely used in the Netherlands, the UK, Italy, Germany, France and Poland. District heating is a significant energy source in the Nordic countries and Central Eastern Europe. The residential sector is the second largest final user of energy, accounting for about 30 percent of consumption.

As part of the efforts to build a sustainable energy system, the traditional mechanical utility meter must be replaced by a smart device. These so called smart meters are a core element in the vision for smart grids - intelligent energy networks that contribute to improved efficiency and reliability in energy distribution and better optimisation in allocation of resources and utilisation of assets. Smart metering solutions may incorporate a wide range of applications in the fields of remote meter reading, customer relationship management, demand-side management and value added services. Remote meter reading is the core application, providing the data recorded by the meter to the metering system operator, which could be the DSO or an independent party. Smart metering solutions can also be used to support customer relationship management and demand-side management (DSM), as well as enable various value added services in for instance home automation.

The adoption of smart metering in Europe is to a large extent driven by regulations. A majority of the countries in Western Europe have adopted a policy of regulation-driven introduction of smart meters.

Sweden was first, followed by the Netherlands, Ireland, Norway, France, Italy and Spain. The UK and Finland were the latest countries to announce regulated rollouts in October 2008 and February 2009 respectively and Denmark seems likely to move in the same direction. Furthermore nationwide projects led by publicly owned energy companies are underway in Portugal and Malta. Except for Italy where the rollout is already almost complete,the larger countries have long timeframes. France and Spain have deadlines at the end of the 2010s, while the UK has set the target date to 2020. The common energy policies of the EU, based on the 20/20/20 targets, play an important role in this development. The 3rd Energy Package, approved by the European Parliament in April 2009, proposes that - subject to an economic assessment - 80 percent of all electricity customers should have smart meters by 2020. Furthermore it defines guidelines for supplier-changes, energy consumption information and service quality level monitoring which are very difficult to meet without smart meters. Italy was the first European country where smart meters were deployed at a massive scale in the first half of the 2000s. By 2011 all Italian electricity customers will be covered by the technology. Sweden however became the first country to achieve 100 percent penetration in July 2009 following a regulation driven rollout. The other Nordic countries are following with Finland and Norway looking to introduce smart metering legislation by 2013, while Denmark has seen strong uptake of the technology without any regulatory requirements. Spain and Ireland are expected to display high volumes from 2011, with France and most likely Portugal following in 2012. By 2013 these countries alone will account for more than 70 percent of total shipments. Elsewhere in Europe the market prospects are more uncertain. The UK is likely to see the start of large-scale deployments of smart meters within the next five years given that no unexpected events cause delays. The Netherlands appeared to be on track for a nationwide rollout starting already in 2010 but with the recent political setbacks the implementation of smart meters is now delayed until 2013 by the earliest. Germany is not likely to see any major market developments in the short term but it appears likely that some of the large DSOs will go ahead with large-scale installations by the mid-2010s, regardless of the regulatory situation. The market prospects in Central Europe are uncertain, but there are good reasons to believe that the pilots and early deployments seen today will evolve into major projects by the mid-2010s.

Highlights from the sixth edition of the report:

- Case studies of smart metering projects by the leading
energy groups in Europe.
- In-depth market profiles of fourteen countries in
Western 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 2014.
- Summary of the latest developments in the European
energy industry.

Smart Metering in Western Europe is the sixth 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 160 pages of unique business intelligence, including 5-year
industry forecasts, expert commentary and real-life case studies
on which to base your business decisions.

List of Figures


Executive summary
1 Electricity, gas and district heating distribution in Europe
1.1 Energy industry players
1.2 Electricity market
1.3 Gas market
1.4 District heating market
2 Smart metering
2.1 Smart grids and intelligent meters

2.1.1 Smart metering applications
2.1.2 Smart metering infrastructure
2.1.3 Benefits of smart metering

2.2 Project strategies

2.2.1 System design and sourcing
2.2.2 Rollout and integration
2.2.3 Implementation and operation

2.3 Regulatory issues

2.3.1 Models for the introduction of smart meters
2.3.2 Standardisation
2.3.3 Individual rights issues

3 PLC and wireless communication technologies
3.1 PLC versus wireless communication

3.1.1 PLC point-to-multipoint
3.1.2 Wireless Mesh point-to-multipoint
3.1.3 Mobile networks point-to-point

3.2 PLC technology vendors

3.2.1 Advanced Digital Design
3.2.2 Analog Devices
3.2.3 CURRENT
3.2.4 Maxim
3.2.5 Power Plus Communications
3.2.6 STMicroelectronics
3.2.7 Yitran Communications

3.3 Wireless technology vendors

3.3.1 Cinterion Wireless Modules
3.3.2 Coronis
3.3.3 Ember
3.3.4 Radiocrafts
3.3.5 Sierra Wireless
3.3.6 Sigma Designs
3.3.7 Telit
3.3.8 Trilliant
3.3.9 Tritech Technology

4 Smart metering industry players
4.1 Meter vendors

4.1.1 Landis+Gyr
4.1.2 Itron
4.1.3 Elster
4.1.4 Aidon
4.1.5 Circutor
4.1.6 Diehl Metering
4.1.7 Entity Group
4.1.8 Iskraemeco
4.1.9 Janz
4.1.10 Kamstrup
4.1.11 Sagem Communications
4.1.12 ZIV
4.1.13 Asian vendors

4.2 Smart metering solution providers

4.2.1 ADD Grup
4.2.2 Echelon
4.2.3 Enel
4.2.4 ESCO Technologies
4.2.5 Founter
4.2.6 ISA
4.2.7 Metrima
4.2.8 NURI Telecom
4.2.9 Policom
4.2.10 Siemens Power Distribution
4.2.11 Telenor Cinclus
4.2.12 Xemex

4.3 MDMS and middleware vendors

4.3.1 EnergyICT
4.3.2 eMeter
4.3.3 Ericsson
4.3.4 Görlitz
4.3.5 Netinium
4.3.6 Oracle
4.3.7 Powel
4.3.8 SAP

4.4 System integrators
5 Market forecasts and trends
5.1 Market drivers and barriers

5.1.1 Macroeconomic factors
5.1.2 Regulatory environment
5.1.3 Competitive environment
5.1.4 Technology development

5.2 Smart metering market forecast

5.2.1 Capital expenditure forecast
5.2.2 Geographical markets

5.3 Impacts of smart metering on the European wireless M2M market

5.3.1 GPRS technology market
5.3.2 Wireless Mesh technology market
5.3.3 The future role of wireless communication providers in metering

6 Market profiles: Northern Europe
6.1 Sweden

6.1.1 Electricity distribution industry structure
6.1.2 Metering regulatory environment
6.1.3 Smart metering market developments
6.1.4 The outcome of a regulation driven rollout

6.2 Denmark

6.2.1 Electricity distribution industry structure
6.2.2 Metering regulatory environment and smart metering market developments

6.3 Finland

6.3.1 Electricity distribution industry structure
6.3.2 Metering regulatory environment
6.3.3 Smart metering market developments

6.4 Norway

6.4.1 Electricity distribution industry structure
6.4.2 Metering regulatory environment
6.4.3 Smart metering market developments

7 Market profiles: Western Europe
7.1 Austria

7.1.1 Electricity and gas distribution industry structure
7.1.2 Metering regulatory environment and smart metering market developments .

7.2 France

7.2.1 Electricity and gas distribution industry structure
7.2.2 Metering regulatory environment and smart metering market developments .

7.3 Germany

7.3.1 Electricity and gas distribution industry structure
7.3.2 Metering regulatory environment
7.3.3 Early pilot activities

7.4 Ireland

7.4.1 Electricity and gas distribution industry structure
7.4.2 Nationwide program for deployment of smart meters by

7.5 The Netherlands

7.5.1 Electricity and gas distribution industry structure
7.5.2 Metering regulatory environment
7.5.3 Smart metering market developments

7.6 United Kingdom

7.6.1 Electricity and gas distribution industry structure
7.6.2 Metering regulatory environment
7.6.3 The UK government's proposed rollout model

8 Market profiles: Southern Europe
8.1 Italy

8.1.1 Electricity and gas distribution industry structure
8.1.2 Metering regulatory environment
8.1.3 Smart metering market developments

8.2 Spain

8.2.1 Electricity and gas distribution industry structure
8.2.2 Metering regulatory environment
8.2.3 Smart metering market developments

8.3 Portugal

8.3.1 Electricity and gas distribution industry structure
8.3.2 Metering regulatory environment and smart metering market developments .

8.4 Malta

8.4.1 Utility industry structure
8.4.2 National smart grid project

9 Case studies: Energy group strategies for smart metering
9.1 Enel

9.1.1 The Telegestore Project
9.1.2 Marketing to external customers

9.2 ERDF

9.2.1 The ERDF smart metering project
9.2.2 Atos Origin selected as information architect and lead manager for pilot

9.3 E.ON

9.3.1 Experiences from the Nordic market
9.3.2 Projects in Western and Central Europe

9.4 RWE

9.4.1 Regional DSO operations in Germany
9.4.2 The Müllheim Zählt project

9.5 Iberdrola

9.5.1 The PRIME project
9.5.2 Smart metering rollout plans for Spain and other markets

9.6 Vattenfall

9.6.1 Group smart metering initiatives
9.6.2 Smart metering projects in Sweden and Finland

9.7 Three regional Nordic DSOs

9.7.1 Göteborg Energi - Sweden
9.7.2 Helsingin Energia - Finland
9.7.3 SEAS-NVE - Denmark

Glossary
Index


List of Figures



Figure 1.1: Top 25 energy companies, by proforma turnover (EU23+2 2008)
Figure 1.2: Electricity generation and consumption data (EU27 2007)
Figure 1.3: Electricity market statistics (EU23+2 2008)
Figure 1.4: Top 25 electricity DSOs (EU23+2 2009)
Figure 1.5: Gas market statistics (EU23+2 2008)
Figure 1.6: Top 25 gas DSOs (EU23+2 2009)
Figure 1.7: District heating market statistics (EU23+2 2007)
Figure 2.1: Smart metering infrastructure
Figure 2.2: Examples of smart electricity meters
Figure 3.1: PLC point-to-multipoint communication infrastructure
Figure 3.2: Wireless Mesh point-to-multipoint communication infrastructure
Figure 3.3: GPRS/HSPA point-to-point communication infrastructure
Figure 4.1: Meter vendor company data (2007/2008)
Figure 4.2: Landis+Gyr smart metering product portfolio (Europe 2009)
Figure 4.3: Itron smart metering product portfolio (Europe 2009)
Figure 4.4: Echelon NES VAR partners
Figure 4.5: Examples of system integrators active in smart metering
Figure 5.1: Household power consumption and retail prices (EU23+2 2008)
Figure 5.2: Final year for deployment of smart electricity meters by country
Figure 5.3: Smart meter shipments and penetration rate (EU23+2 2008-2014)
Figure 5.4: Smart metering expenditure by activity (EU23+2 2008-2014)
Figure 5.5: Smart meter shipments by region (EU23+2 2008-2014)
Figure 5.6: Mobile connections used for smart metering by operator (2009)
Figure 5.7: GPRS device shipments and installed base, smart metering (2008-2014)
Figure 6.1: Smart meter contracts by country (Northern Europe 2009)
Figure 6.2: SM-contracts in the Nordic region by meter supplier and contractor (2009)
Figure 6.3: Top 10 electricity DSOs (Sweden, 2009)
Figure 6.4: SM contracts awarded by top 10 DSOs in Sweden
Figure 6.5: SM vendor selection of medium sized DSOs in Sweden (2009)
Figure 6.6: Installed base of smart electricity meters (Sweden 2005-2009)
Figure 6.7: Features of smart meters in Sweden
Figure 6.8: Top 10 electricity DSOs (Denmark, 2009)
Figure 6.9: Major SM projects in Denmark (June 2009)
Figure 6.10: Top 10 electricity DSOs (Finland, 2009)
Figure 6.11: Major smart metering projects in Finland (June 2009)
Figure 6.12: Top 10 electricity DSOs (Norway, 2009)
Figure 6.13: Major SM projects in Norway (June 2009)
Figure 7.1: Major smart metering projects in Western Europe (June 2009)
Figure 7.2: Top 10 electricity and gas DSOs (Austria, 2009)
Figure 7.3: Top 50 electricity DSOs (Germany, 2009)
Figure 7.4: Electricity and gas DSOs (Netherlands, 2009)
Figure 7.5: Electricity DSOs (UK, 2008)
Figure 7.6: Gas DSOs (UK, 2008)
Figure 8.1: Major smart metering projects in Southern Europe (June 2009)
Figure 8.2: Top 20 electricity and gas DSOs (Italy, 2009)
Figure 8.3: Top 5 DSOs (Spain, 2009)
Figure 8.4: Top 5 DSOs (Portugal, 2009)
Figure 9.1: Telegestore annual operational data (2007)
Figure 9.2: Overview of ERDF’s planned smart metering system
Figure 9.3: E.ON electricity and gas distribution markets overview (2009)
Figure 9.4: SM contracts awarded by E.ON Nordic (2005-2007)
Figure 9.5: E.ON smart metering projects in Western and Central Europe (2009)
Figure 9.6: SM systems in Vattenfall Nordic Distribution Business Unit (2009)
Figure 9.7: Smart metering contracts awarded by Vattenfall Nordic (2002-2007)