SMART METERING IN EUROPE INDEX Index Table of Contents Table of Contents... i List of Figures... x Executive summary... 1 1 Electricity, gas and district heating markets in Europe... 3 1.1 Energy industry players... 3 1.2 Electricity market... 5 1.3 Gas market... 13 1.4 District heating market... 16 2 Smart metering solutions... 17 2.1 Introduction to smart grids... 17 2.2 Smart metering... 20 2.2.1 Smart metering applications... 20 2.2.2 Smart metering infrastructure... 24 2.2.3 Benefits of smart metering... 27 2.3 Project strategies... 28 2.3.1 System design and sourcing... 29 2.3.2 Rollout and integration... 29 2.3.3 Implementation and operation... 30 2.3.4 Communicating with customers... 31 2.4 Regulatory issues... 31 2.4.1 Models for the introduction of smart meters... 32 2.4.2 Standards and guidelines... 33 2.4.3 Individual rights issues... 36 3 IoT networks and communication technologies... 37 3.1 IoT network technologies... 37 3.1.1 Network architectures... 37 3.1.2 Unlicensed and licensed frequency bands... 41 3.2 PLC technology and standards... 42 STRATEGIC M2M RESEARCH SERIES i
INDEX SMART METERING IN EUROPE 3.2.1 International standards organisations... 44 3.2.2 G3-PLC... 46 3.2.3 PRIME... 49 3.2.4 Meters & More... 51 3.2.5 OSGP... 52 3.2.6 Netricity... 53 3.3 3GPP cellular and LPWA technologies... 54 3.3.1 2G/3G/4G cellular technologies and IoT... 54 3.3.2 The role of cellular networks in smart meter communications... 56 3.3.3 NB-IoT and LTE-M network deployments in Europe... 56 3.3.4 LoRa... 57 3.3.5 Sigfox... 59 3.4 RF technology and standards... 60 3.4.1 IEEE 802.15.4... 60 3.4.2 Wi-SUN... 61 3.4.3 ZigBee... 61 3.4.4 Proprietary IPv6 connectivity stacks based on 802.15.4... 62 3.4.5 Wireless M-Bus... 63 4 Smart metering industry players... 65 4.1 Meter vendors... 65 4.1.1 Landis+Gyr... 66 4.1.2 Itron... 68 4.1.3 Honyewell Elster... 70 4.1.4 Aclara Technologies... 71 4.1.5 ADD Grup... 71 4.1.6 AEM... 72 4.1.7 Aidon... 72 4.1.8 Apator... 73 4.1.9 Circutor... 74 4.1.10 Diehl Metering... 74 4.1.11 EDMI Meters... 75 4.1.12 Elgama Elektronika... 76 ii STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES
SMART METERING IN EUROPE INDEX 4.1.13 EMH Metering... 76 4.1.14 Flonidan... 76 4.1.15 Hager... 77 4.1.16 Hexing Electrical... 77 4.1.17 Iskraemeco... 78 4.1.18 Janz... 79 4.1.19 Kaifa Technology... 79 4.1.20 Kamstrup... 80 4.1.21 Linyang Energy... 80 4.1.22 MeteRSit... 81 4.1.23 Networked Energy Services... 81 4.1.24 Pietro Fiorentini... 82 4.1.25 RIZ... 83 4.1.26 Sagemcom... 83 4.1.27 Sanxing Electric... 84 4.1.28 Wasion... 84 4.1.29 ZIV... 85 4.1.30 ZPA Smart Energy... 85 4.2 Communication solution providers... 86 4.2.1 AP Systems... 86 4.2.2 Corinex... 86 4.2.3 CyanConnode... 87 4.2.4 Devolo... 88 4.2.5 NURI Telecom... 88 4.2.6 Ormazabal... 89 4.2.7 Power Plus Communications... 89 4.2.8 Sensus... 90 4.2.9 Silver Spring Networks... 90 4.2.10 Trilliant... 91 4.2.11 Xemex... 92 4.3 Software solution providers... 93 4.3.1 Cuculus... 93 STRATEGIC M2M RESEARCH SERIES iii
INDEX SMART METERING IN EUROPE 4.3.2 Enoro... 94 4.3.3 Ferranti Computer Systems... 95 4.3.4 Görlitz... 95 4.3.5 Kisters... 96 4.3.6 Oracle... 96 4.3.7 Powel... 97 4.3.8 SAP... 97 4.3.9 Telecontrol STM... 98 4.4 System integrators and communication service providers... 98 4.4.1 Arqiva... 99 4.4.2 Atos Worldgrid... 99 4.4.3 Capgemini... 100 4.4.4 CGI... 101 4.4.5 Ericsson... 101 4.4.6 IBM... 102 4.4.7 Kapsch... 102 4.4.8 LG CNS... 103 4.4.9 Schneider Electric... 103 4.4.10 Siemens... 104 4.4.11 Telefónica... 105 4.4.12 Telekom Austria... 106 4.4.13 UtilityConnect... 107 4.4.14 Vodafone... 107 5 Market profiles... 109 5.1 Regional summary... 109 5.1.1 EU smart metering policies... 109 5.1.2 Top smart metering projects in EU28+2 countries... 113 5.2 Austria... 115 5.2.1 Electricity and gas distribution industry structure... 115 5.2.2 Metering regulatory environment... 116 5.2.3 Smart metering market developments... 117 5.3 Belgium... 120 iv STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES
SMART METERING IN EUROPE INDEX 5.3.1 Electricity and gas distribution industry structure... 121 5.3.2 Metering regulatory environment and smart metering market developments. 122 5.4 Bulgaria... 123 5.4.1 Electricity and gas distribution industry structure... 123 5.4.2 Metering regulatory environment and smart metering market developments. 124 5.5 Croatia... 125 5.6 Cyprus... 126 5.6.1 Electricity distribution industry structure... 126 5.6.2 Metering regulatory environment and smart metering pilots... 127 5.7 Czechia... 128 5.7.1 Electricity and gas distribution industry structure... 128 5.7.2 Metering regulatory environment and smart metering pilots... 129 5.8 Denmark... 130 5.8.1 Electricity distribution industry structure... 130 5.8.2 Metering regulatory environment... 131 5.8.3 Smart metering market developments... 132 5.9 Estonia... 134 5.9.1 Electricity distribution industry structure... 134 5.9.2 Metering regulatory environment and smart metering market developments. 135 5.10 Finland... 136 5.10.1 Electricity distribution industry structure... 136 5.10.2 Metering regulatory environment... 139 5.10.3 Smart metering market developments... 139 5.11 France... 141 5.11.1 Electricity and gas distribution industry structure... 141 5.11.2 Nationwide program for smart electricity metering... 142 5.11.3 Nationwide program for smart gas metering... 143 5.12 Germany... 144 5.12.1 Electricity and gas distribution industry structure... 144 5.12.2 Metering regulatory environment... 148 5.12.3 Technical standardisation of smart meters... 149 5.12.4 Smart metering market developments... 151 STRATEGIC M2M RESEARCH SERIES v
INDEX SMART METERING IN EUROPE 5.13 Greece... 154 5.13.1 Electricity and gas distribution industry structure... 154 5.13.2 Metering regulatory environment and smart metering pilot program... 155 5.14 Hungary... 156 5.14.1 Electricity and gas distribution industry structure... 156 5.14.2 Metering regulatory environment and smart metering market developments. 157 5.15 Ireland... 158 5.15.1 Electricity and gas distribution industry structure... 158 5.15.2 Nationwide program for deployment of smart meters... 159 5.16 Italy... 161 5.16.1 Electricity and gas distribution industry structure... 161 5.16.2 First wave of smart metering 2001 2013... 163 5.16.3 Second wave of smart metering 2014 2023... 164 5.17 Latvia... 166 5.17.1 Electricity and gas distribution industry structure... 166 5.17.2 Metering regulatory environment and smart metering market developments. 167 5.18 Lithuania... 167 5.19 Luxembourg... 168 5.19.1 Electricity and gas distribution industry structure... 168 5.19.2 Metering regulatory environment and smart metering rollout plans... 169 5.20 Malta... 169 5.20.1 Utility industry structure... 170 5.20.2 National smart grid project... 170 5.21 Netherlands... 171 5.21.1 Electricity and gas distribution industry structure... 171 5.21.2 Metering regulatory environment... 172 5.21.3 Smart metering market developments... 173 5.22 Norway... 175 5.22.1 Electricity distribution industry structure... 175 5.22.2 Metering regulatory environment... 177 5.22.3 Smart metering market developments and tender results... 178 5.23 Poland... 180 vi STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES
SMART METERING IN EUROPE INDEX 5.23.1 Electricity and gas distribution industry structure... 180 5.23.2 Metering regulatory environment and smart metering projects... 181 5.24 Portugal... 183 5.24.1 Electricity and gas distribution industry structure... 183 5.24.2 Metering regulatory environment and smart metering market developments. 184 5.25 Romania... 185 5.25.1 Electricity and gas distribution industry structure... 185 5.25.2 Metering regulatory environment and smart meter market developments... 186 5.26 Slovakia... 187 5.26.1 Electricity and gas distribution industry structure... 188 5.26.2 Metering regulatory environment and smart meter market developments... 188 5.27 Slovenia... 189 5.28 Spain... 190 5.28.1 Electricity and gas distribution industry structure... 190 5.28.2 Metering regulatory environment... 191 5.28.3 Smart metering market developments... 191 5.29 Sweden... 193 5.29.1 Electricity distribution industry structure... 193 5.29.2 First wave of smart metering 2003 2009... 194 5.29.3 Second wave of smart metering 2015 2024... 196 5.30 Switzerland... 198 5.30.1 Electricity distribution industry structure... 198 5.30.2 Metering regulatory environment and smart meter market developments... 199 5.31 United Kingdom... 200 5.31.1 Electricity and gas industry structure... 200 5.31.2 Metering regulatory environment... 202 5.31.3 Great Britain s planned nationwide smart metering system... 204 5.31.4 Pre-DCC smart meter deployments... 206 5.31.5 Smart metering in Northern Ireland, the Channel Islands and Gibraltar... 207 6 Case studies: Smart metering projects in Europe... 209 6.1 Enel... 209 6.1.1 Enel Open Meter and the second generation rollout in Italy... 210 STRATEGIC M2M RESEARCH SERIES vii
INDEX SMART METERING IN EUROPE 6.1.2 Endesa s smart metering project in Spain... 211 6.1.3 Smart meter rollout plan for Romania... 212 6.2 Enedis... 212 6.2.1 The Linky Programme... 212 6.2.2 System development and large-scale pilot... 214 6.2.3 Full-scale rollout plan... 215 6.3 E.ON... 216 6.3.1 Sweden... 216 6.3.2 Germany... 218 6.3.3 United Kingdom... 219 6.3.4 Central Eastern Europe... 220 6.4 Iberdrola... 220 6.4.1 The PRIME project... 221 6.4.2 Smart meter rollout in Spain... 221 6.5 Current smart meter projects in Scandinavia... 222 6.5.1 RADIUS (DONG Energy)... 222 6.5.2 Hafslund... 223 6.5.3 Ellevio... 224 6.6 Smart gas meter rollouts in France and Italy... 225 6.6.1 GrDF... 225 6.6.2 2i Rete Gas... 227 6.6.3 Unareti (A2A)... 228 6.7 Smart meter communication platforms in Germany and the UK... 228 6.7.1 Germany... 229 6.7.2 United Kingdom... 230 6.8 Smart metering in Russia & CIS and the Balkans... 233 7 Market forecasts and trends... 235 7.1 Market trends... 235 7.1.1 Mass-rollouts ramp up to volume in Western Europe... 235 7.1.2 Mixed outlooks in Germany and Central Eastern Europe... 236 7.1.3 Second wave rollouts begin in Italy and Sweden... 237 7.1.4 PLC smart meter shipments will peak in 2017... 238 viii STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES
SMART METERING IN EUROPE INDEX 7.2 Smart electricity metering market forecast... 239 7.2.1 Capital expenditure forecast... 242 7.2.2 Communication technology market shares... 245 7.3 Smart gas metering market forecast... 246 Glossary... 249 STRATEGIC M2M RESEARCH SERIES ix
INDEX SMART METERING IN EUROPE Index List of Figures Figure 1.1: Top 25 energy companies, by turnover (EU28+2 2016)... 4 Figure 1.2: Electricity generation and consumption data (EU28 2016)... 5 Figure 1.3: Electricity market statistics (Europe 2016)... 7 Figure 1.4: Top 25 electricity DSOs (EU28+2 2016)... 10 Figure 1.5: Top 25 electricity DSOs (Southeast and East Europe 2016)... 12 Figure 1.6: Gas market statistics (EU28+2)... 14 Figure 1.7: Top 25 gas DSOs (EU28+2 2016)... 15 Figure 1.8: District heating market overview (EU28+2)... 16 Figure 2.1: Smart metering infrastructure... 24 Figure 2.2: Examples of smart electricity meters... 26 Figure 3.1: Standard model for smart grid communication networks... 39 Figure 3.2: Alternative model for smart grid communication networks... 40 Figure 3.3: Unlicensed and reserved radio frequencies available for wireless IoT... 41 Figure 3.4: Technical comparison of key PLC technology standards... 43 Figure 3.5: Members of the G3-PLC Alliance by industry... 48 Figure 3.6: Members of the PRIME Alliance by industry... 50 Figure 3.7: Members of the Meters & More Association by industry... 52 Figure 3.8: Selected members of the OSGP Alliance by industry... 53 Figure 3.9: Comparison of LTE MTC enhancements in 3GPP Release 13... 55 Figure 3.10: LoRa network operators Europe (Q2-2017)... 58 Figure 3.11: Sigfox network partners in Europe (2017)... 59 Figure 4.1: Energy meter vendor company data (World/Europe, FY2016/2017)... 66 Figure 5.1: Regulatory policies for smart meter rollouts, by country (EU28+2 2017)... 112 Figure 5.2: Top 25 smart metering projects in EU28+2 countries (Q3-2017)... 114 Figure 5.3: Top 12 electricity and gas DSOs in Austria... 116 Figure 5.4: Major SM projects in Austria (2017)... 119 Figure 5.5: Electricity and gas network operators in Belgium... 121 Figure 5.6: Electricity DSOs in Bulgaria... 124 x STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES
SMART METERING IN EUROPE INDEX Figure 5.7: Top 5 DSOs in Czechia... 129 Figure 5.8: Top 10 electricity DSOs in Denmark... 131 Figure 5.9: Top 15 smart metering projects in Denmark... 133 Figure 5.10: Smart metering projects in Estonia... 135 Figure 5.11: Top 10 electricity DSOs in Finland... 137 Figure 5.12: Top 25 SM contracts in Finland... 138 Figure 5.13: Smart metering projects in France... 143 Figure 5.14: Top 40 electricity DSOs in Germany... 145 Figure 5.15: Electricity DSOs in Germany by size... 146 Figure 5.16: Germany s smart meter rollout plan... 149 Figure 5.17: Top 5 DSOs in Hungary... 157 Figure 5.18: Top 10 electricity DSOs in Italy (2016)... 162 Figure 5.19: Top 15 gas DSOs in Italy (2016)... 163 Figure 5.20: EIB loans for smart meter deployments in Italy... 165 Figure 5.21: Electricity and gas DSOs in the Netherlands... 172 Figure 5.22: Smart electricity meter installations in the Netherlands (H1-2017)... 174 Figure 5.23: Top 12 electricity DSOs in Norway... 176 Figure 5.24: Top 10 smart metering projects in Norway... 179 Figure 5.25: Electricity DSOs in Poland... 181 Figure 5.26: Major smart metering projects in Poland... 182 Figure 5.27: Top DSOs in Portugal... 184 Figure 5.28: Top 5 DSOs in Romania... 186 Figure 5.29: Major electricity and gas DSOs in Spain... 191 Figure 5.30: Smart electricity meter installations in Spain (Q2-2017)... 192 Figure 5.31: Top 10 electricity DSOs in Sweden... 194 Figure 5.32: Major first wave smart metering contracts in Sweden... 195 Figure 5.33: Second wave smart metering tenders in Sweden (Q3-2017)... 197 Figure 5.34: Top 10 electricity DSOs in Switzerland... 199 Figure 5.35: Electricity DSOs in the UK... 201 Figure 5.36: Gas DSOs in the UK... 202 Figure 5.37: Estimated electricity and gas retailer market shares in the UK (Q1-2017)... 203 Figure 5.38: Installed base of smart energy meters in the UK (Q2-2017)... 206 STRATEGIC M2M RESEARCH SERIES xi
INDEX SMART METERING IN EUROPE Figure 6.1: Enel Open Meter second generation smart meter... 210 Figure 6.2: Conceptual system architecture for Enedis smart metering system... 213 Figure 6.3: SM contracts awarded by E.ON Sweden (2005 2007)... 217 Figure 6.4: GrDF s smart gas metering cost benefit analysis... 226 Figure 6.5: Smart Meter Gateway (SMGW) network interfaces... 229 Figure 7.1: Electricity smart meter shipments and penetration rate (EU28+2 2016 2022)... 239 Figure 7.2: Electricity smart meter shipments by country (EU28+2 2016 2023)... 240 Figure 7.3: Electricity smart meter installed base by country (EU28+2 2016 2023)... 241 Figure 7.4: Electricity smart metering capital expenditure forecast (EU28+2 2016 2023)... 242 Figure 7.5: Estimated capital cost for some smart metering projects in Europe... 243 Figure 7.6: Breakdown of costs for electricity smart metering projects in W. Europe... 244 Figure 7.7: Smart meter shipments, by communication technology (EU28+2 2016 2022). 245 Figure 7.8: Gas smart meter installed base by country (EU28+2 2016 2022)... 246 Figure 7.9: Gas smart meter shipments by country (EU28+2 2016 2022)... 247 xii STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES