The concept of smart grids in Europe is intertwined with an emerging vision for European industry and society over the next 40 years. Smart grids are seen as an enabler of a low-carbon Europe that, by 2050, will have reduced its greenhouse gas (GHG) emissions to 80% of their 1990 level and have almost completely ended its dependence on fossil fuels. In the process, Europe hopes to establish a leadership role in innovative energy technologies.

Today, much of the smart grid development in Europe mirrors the activity, drivers, and responses seen in North America and in other parts of the globe, but differences in priorities and emphasis exist. In particular, carbon reduction programs and energy efficiency are seen as primary drivers for smart grid and smart meter deployments. A program is taking shape that will take the use of smart grid technologies to another level over the next 5 to 10 years, linking them closely with the achievements of Europe’s 2020 goals.

The EU’s 20:20:20 program for 2020 – 20% reduction in GHG emission, 20% of energy provided by renewable sources, and 20% improvement in energy efficiency – is now enshrined in a wide range of national targets, laws, and regulatory orders. The importance of these targets should not be underestimated – they are providing common goals for government, utilities, service and technology providers across Europe.

This Pike Research report examines smart grid trends in Europe, and forecasts the size and growth of the market for smart grid technologies through 2020. It also forecasts smart meter deployments across Europe through 2020. The report examines the developments in European energy policy, the similarities and differences across European countries, national strategies for smart grids and smart meters, and specific European projects and pilots for smart grids. It also provides detailed profiles of ten major European countries and insight into several other key projects. The report analyzes the strategies of key players in the European market and the role of European standards bodies and other agencies promoting the adoption of smart grids.

Key questions addressed:

• What are the main market drivers and barriers for smart grid deployments in Europe?
• What are the key policy, technology, and economic issues that will influence the development of smart grids in Europe?
• Which smart grid technologies are having the biggest impact in Europe and how will they evolve?
• How do smart grid deployments differ around Europe?
• Who are the key players in the market and how do they relate to each other?
• How large is the European smart grid market opportunity, and how will it be segmented by application?
• What is the size of the smart meter opportunity in Europe?

Who needs this report?

• Smart grid hardware and software vendors
• Electric utilities
• Networking and telecommunications vendors
• Energy management hardware and software vendors
• Smart meter manufacturers
• Semiconductor and component suppliers
• Government agencies
• Investment community
• Industry associations and standards organizations
• Non-profit organizations and advocacy groups

Table of Contents

1. Executive Summary

1.1 Smart Grids in Europe: Enabling a Vision

1.2 Going Forward

1.2.1 Market Forecast

2. Market Issues

2.1 The Smart Grid in Europe: A Platform for 2020

2.1.1 The Challenge

2.2 European Energy Policy

2.2.1 Energy at the Heart of European Strategy

2.2.2 Sustainability and the 2020 Goals

2.2.2.1 The Shift to Renewable Energy

2.2.2.2 A Renewed Focus on Energy Efficiency

2.2.3 Competitiveness and the Internal Market

2.2.4 Security of Supply

2.2.5 Making it Happen: a New Energy Policy

2.2.6 Supporting European Large-Scale Infrastructure Projects: EEPR and EESII

2.2.7 The Wider Picture

2.3 Smart Grid Definitions

2.4 Smart Grid Applications in Europe

2.4.1 Helping Customers Monitor and Control Energy Use

2.4.2 Enabling Flexible Pricing Schemes that Reflect Real Cost of Energy

2.4.3 Dynamic Matching of Generation and Consumption Patterns

2.4.4 Net Metering for Solar and Wind Power

2.4.5 Improving the Efficiency of Network Operations

2.4.5.1 Utility Grid Outage and Fault Management

2.4.5.2 Improving Utility Operating Efficiency

2.4.5.3 Mobile Workforce Management for Utility Technicians

2.4.6 Supporting the Deployment of EVs

2.5 The State of Play: Smart Meter and Smart Grid Deployment in Europe

2.5.1 The European Smart Meter Program

2.5.2 The United Kingdom: A Different Approach

2.5.2.1 Outside the European Union

2.5.3 Communications Networks – the European Approach

2.5.4 HAN and IHD

2.5.5 The European Electricity Grid Initiative

2.5.6 Upgrading the Transmission Network

2.5.7 A Smart Grid Roadmap for Europe

2.6 Key Players in the European Smart Grid Market

2.6.1 European Utilities

2.6.2 Regulators

2.6.3 Technology, Equipment, and Service Suppliers

2.7 The Market Challenges

2.7.1 Funding Above All

2.7.2 From Pilots to Full-Scale Rollouts

2.7.3 Smart Meters – Enabler or Distraction

2.7.4 Consumer Backlash

2.7.5 Skills and Resources

2.7.6 Interoperability, Standards, and Future Proofing

3. Technologies and Standards

3.1 The Technical Challenges: A European View

3.1.1 SET-Plan

3.2 Smart Meters and Metering Standards

3.3 WAN Technologies in Europe

3.3.1 Power Line Communications

3.3.2 Broadband over Power Lines

3.3.3 Cellular/Wireless Networks

3.3.4 WiMAX

3.3.5 RF Mesh

3.3.6 RF Point-to-Multipoint

3.4 Home Area Networking Technologies

3.4.1 RF Home Area Networks

3.4.1.1 ZigBee

3.4.1.2 Other RF HAN Technologies

3.4.1.3 Power Line Carrier for HANs

3.4.2 Security and Privacy

3.5 Transmission and Distribution Efficiency Technologies

3.5.1 Sensor Networking Technologies

3.5.2 Advanced Transmission Systems

3.5.3 Distribution Automation

3.5.4 Substation Automation

3.6 Virtual Power Plants

3.6.1 Energy Storage

3.6.2 Electric Vehicle Charging Systems

3.7 European Smart Grid Projects

3.7.1 The OPEN meter Project

3.7.2 ADDRESS

3.7.3 MERGE

3.7.4 TWENTIES

3.7.5 INTEGRIS

4. Country Profiles

4.1 Austria

4.1.1 Summary

4.1.2 Overview

4.1.3 Smart Grid Initiatives

4.1.3.1 Smart Meters

4.1.3.2 Smart Grid Projects

4.2 Denmark

4.2.1 Summary

4.2.2 Overview

4.2.3 Smart Grid Initiatives

4.2.3.1 Smart Meters

4.2.3.2 Bornholm

4.2.3.3 R&D Investments

4.3 France

4.3.1 Summary

4.3.2 Overview

4.3.3 Smart Grid Initiatives

4.3.3.1 Smart Meters

4.3.3.2 Premio

4.4 Germany

4.4.1 Summary

4.4.2 Overview

4.4.3 Smart Grid Initiatives

4.4.3.1 Smart Meters

4.4.3.2 E-Energy Projects

4.5 Italy

4.5.1 Summary

4.5.2 Overview

4.5.3 Smart Grid Initiatives

4.5.3.1 Smart Meters

4.5.3.2 Enel’s Smart Grid Projects

4.6 The Netherlands

4.6.1 Summary

4.6.2 Overview

4.6.3 Smart Grid Initiatives

4.6.3.1 Smart Metering

4.6.3.2 Amsterdam Smart City

4.7 Russia

4.7.1 Summary

4.7.2 Overview

4.7.3 Smart Grid Initiatives

4.7.3.1 Smart Meters

4.7.3.2 Network Modernization

4.8 Spain

4.8.1 Summary

4.8.2 Overview

4.8.3 Smart Grid Initiatives

4.8.3.1 Smart Meters

4.8.3.2 Malaga Smart City

4.9 Sweden

4.9.1 Summary

4.9.2 Overview

4.9.3 Smart Grid Initiatives

4.9.3.1 Smart Meters

4.9.3.2 Stockholm Royal Seaport

4.10 United Kingdom

4.10.1 Summary

4.10.2 Overview

4.10.3 Smart Grid Initiatives

4.10.3.1 Smart Meters

4.10.3.2 Smart Grid Pilots

4.10.3.3 The Local Carbon Network Fund

4.10.3.4 Regulatory Changes

4.11 Other European Countries

4.11.1 Ireland

4.11.2 Malta

4.11.3 Portugal

5. Industry Players

5.1 The European Smart Grid Ecosystem

5.2 Utilities

5.2.1 British Gas

5.2.2 EDF Group

5.2.3 E.ON AG

5.2.4 Enel Group

5.2.5 Iberdrola

5.2.6 Vattenfall

5.3 Technology, Application, and Service Providers

5.3.1 ABB

5.3.2 Alcatel-Lucent

5.3.3 Arqiva

5.3.4 Atos Origin

5.3.5 Current Group

5.3.6 Diehl Metering

5.3.7 Echelon Corporation

5.3.8 Elster Group

5.3.9 Iskraemeco

5.3.10 Itron

5.3.11 KEMA

5.3.12 Landis+Gyr

5.3.13 Logica

5.3.14 Power Plus Communications AG

5.3.15 SAP

5.3.16 Schneider Electric

5.3.17 Secure Meters

5.3.18 Siemens Energy

5.3.19 Vodafone

5.4 Standards and Industry Bodies

5.4.1 European Regulatory Organizations

5.4.1.1 ACER

5.4.1.2 ERGEG/CEER

5.4.2 European Standards Organizations

5.4.2.1 CEN

5.4.2.2 CENELEC

5.4.2.3 ETSI

5.4.3 Industry Organizations

5.4.3.1 DLMS User Association

5.4.3.2 ENTSO-E

5.4.3.3 ESMIG

5.4.3.4 Prime Alliance

5.4.3.5 Smart Grids European Technology Platform

5.4.3.6 The Smart Grids Task Force

5.4.3.7 ZigBee Alliance

6. Market Forecasts

6.1 Forecast Assumptions

6.2 Assumptions Underlying this Forecast

6.3 The European Market for Smart Grid Technology

6.4 Smart Grid Market by Application

6.5 Smart Meters

6.6 Western and Eastern European Markets

6.6.1 Western Europe

6.6.2 Eastern Europe

7. Company Directory

8. Acronym and Abbreviation List

9. Table of Contents

10. Table of Charts and Figures

11. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

• Total Smart Grid Revenue by Application, Europe: 2010-2020
• Total Smart Grid Revenue by Region, Europe: 2010-2020
• Total Smart Grid Revenue by Application, Europe: 2010-2020
• Cumulative Smart Grid Revenue by Application, Europe: 2010-2020
• Smart Grid Revenue by Application, Europe: 2015
• Smart Grid Revenue by Application, Europe: 2020
• Smart Grid Application Revenue Comparisons by Application, Europe: 2010-2020
• Installed Base of Smart Meters by Country, Europe: 2010-2020
• Annual Deployments of Smart Meters, Europe: 2010-2020
• Smart Grid Revenue by Application Category, Western Europe: 2010-2020
• Smart Grid Revenue by Application Category, Eastern Europe: 2010-2020
• Electricity Generation by Fuel from 2000 to 2030, in the EU 27
• Share of Renewables in Energy Consumption by 27 Countries: 2005 and 2020
• Average Amount in Euros per kWh of Electricity for Domestic Consumers in EU 27, November 2009
• EU 27 Imports of Natural Gas, Oil, and Solid Fuels as a % of Total Gross Inland Energy Consumption, 2007
• The European Smart Grids Technology Platform: Future Network Vision
• Smart Grid Components: The Pike Research Model
• The Proposed UK Model for Smart Meter Communications Services
• Desertec and the European Supergrid
• European Smart Grid Deployment Roadmap
• OPEN meter Project Scope
• A Smart Grid Roadmap for the UK
• Smart Grid Application Growth Rates, Europe: 2010-2020

List of Tables

• Total Smart Grid Revenue, Europe: 2010-2020
• Total Smart Grid Revenue by Application, Europe: 2010-2020
• Cumulative Smart Grid Revenue by Application, Europe: 2010-2020
• Cumulative Smart Meter Deployments by Country/Region, Europe: 2010-2020
• Annual Smart Meter Deployments by Region, Europe: 2010-2020
• Smart Grid Revenue by Application Category, Western Europe: 2010-2020
• Smart Grid Revenue by Application Category, Eastern Europe: 2010-2020