SMART METERING IN EUROPE INDEX Index Table of Contents Table of Contents... i List of Figures...viii Executive summary...1 1 Electricity, gas and district heating distribution in Europe...3 1.1 Energy industry players...3 1.2 Electricity market...5 1.3 Gas market...10 1.4 District heating market...13 2 Smart metering...15 2.1 Introduction to smart grids...15 2.2 Smart metering...18 2.2.1 Smart metering applications...18 2.2.2 Smart metering infrastructure...22 2.2.3 Benefits of smart metering...25 2.3 Project strategies...27 2.3.1 System design and sourcing...27 2.3.2 Rollout and integration...28 2.3.3 Implementation and operation...29 2.3.4 Communicating with customers...29 2.4 Regulatory issues...30 2.4.1 Models for the introduction of smart meters...30 2.4.2 Standardisation initiatives...31 2.4.3 Individual rights issues...34 3 PLC and wireless communication technologies...37 3.1 PLC versus wireless communication...37 3.1.1 PLC point-to-multipoint...37 3.1.2 Wireless Mesh point-to-multipoint...38 3.1.3 Cellular networks point-to-point...40 STRATEGIC M2M RESEARCH SERIES i
INDEX SMART METERING IN EUROPE 3.1.4 Home area networking...41 3.2 PLC technology and vendors...41 3.2.1 Industry associations and standards...42 3.2.2 Tier one semiconductor companies...44 3.2.3 Advanced Digital Design...46 3.2.4 CURRENT...47 3.2.5 Power Plus Communications...47 3.2.6 Yitran Communications...48 3.3 Wireless technology and vendors...48 3.3.1 Industry initiatives and standards...49 3.3.2 Cinterion...52 3.3.3 Coronis...52 3.3.4 Develco...53 3.3.5 Ember...53 3.3.6 Radiocrafts...54 3.3.7 Sierra Wireless...54 3.3.8 Sigma Designs...54 3.3.9 Telit...55 4 Smart metering industry players...57 4.1 Meter vendors...57 4.1.1 Landis+Gyr...58 4.1.2 Itron...63 4.1.3 Elster...66 4.1.4 Aidon...68 4.1.5 Apator...68 4.1.6 Circutor...69 4.1.7 Diehl Metering...69 4.1.8 EDMI...70 4.1.9 EMH Metering...70 4.1.10 GE Energy...71 4.1.11 Hager...72 4.1.12 Iskraemeco...72 ii STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES
SMART METERING IN EUROPE INDEX 4.1.13 Janz...73 4.1.14 Kamstrup...73 4.1.15 Sagemcom...74 4.1.16 Secure Meters...75 4.1.17 Sensus...76 4.1.18 ZIV...76 4.1.19 ZPA Smart Energy...77 4.2 Smart grid solution providers...77 4.2.1 ADD Grup...77 4.2.2 Echelon...78 4.2.3 Embriq...79 4.2.4 Enel...80 4.2.5 ISA...80 4.2.6 Metrima...81 4.2.7 NURI Telecom...81 4.2.8 Remote Energy Monitoring...82 4.2.9 Sentec...83 4.2.10 Siemens...83 4.2.11 Silver Spring Networks...84 4.2.12 Smart Grid Norway...85 4.2.13 Trilliant...85 4.2.14 Tropos Networks...86 4.2.15 Tritech Technologies...87 4.2.16 Xemex...88 4.3 MDMS and middleware vendors...88 4.3.1 Ecologic Analytics...88 4.3.2 emeter...89 4.3.3 EnergyICT...89 4.3.4 Görlitz...90 4.3.5 Netinium...91 4.3.6 Oracle...91 4.3.7 OSIsoft...92 STRATEGIC M2M RESEARCH SERIES iii
INDEX SMART METERING IN EUROPE 4.3.8 Powel...92 4.3.9 Process Vision...93 4.3.10 SAP...93 4.4 System integrators and managed service providers...94 4.4.1 IT industry players...94 4.4.2 Telecom industry players...96 5 Market analysis...101 5.1 Market drivers and restraints...102 5.1.1 Macroeconomic factors...102 5.1.2 Regulatory environment...104 5.1.3 Competitive environment...106 5.1.4 Industry standards...107 5.2 Smart metering market forecast...108 5.2.1 Geographical markets...109 5.2.2 Capital expenditure forecast...111 5.3 Technology trends...114 5.4 Industry analysis...116 6 Market profiles: Northern Europe...119 6.1 Sweden...121 6.1.1 Electricity distribution industry structure...121 6.1.2 Metering regulatory environment...122 6.1.3 Smart metering market developments...123 6.1.4 The outcome of a regulation driven rollout...126 6.2 Denmark...128 6.2.1 Electricity distribution industry structure...128 6.2.2 Metering regulatory environment...130 6.2.3 Smart metering market developments...130 6.3 Finland...132 6.3.1 Electricity distribution industry structure...132 6.3.2 Metering regulatory environment...136 6.3.3 Smart metering market developments...136 6.4 Norway...138 iv STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES
SMART METERING IN EUROPE INDEX 6.4.1 Electricity distribution industry structure... 138 6.4.2 Metering regulatory environment... 139 6.4.3 Smart metering market developments... 141 7 Market profiles: Western Europe... 143 7.1 Austria... 144 7.1.1 Electricity and gas distribution industry structure... 144 7.1.2 Metering regulatory environment and smart metering market developments. 145 7.2 Belgium... 146 7.2.1 Electricity and gas distribution industry structure... 146 7.2.2 Metering regulatory environment and smart metering market developments. 147 7.3 France... 148 7.3.1 Electricity and gas distribution industry structure... 148 7.3.2 Metering regulatory environment and smart metering market developments. 149 7.4 Germany... 150 7.4.1 Electricity and gas distribution industry structure... 151 7.4.2 Metering regulatory environment... 153 7.4.3 Smart meter market developments... 154 7.5 Ireland... 156 7.5.1 Electricity and gas distribution industry structure... 156 7.5.2 Nationwide program for deployment of smart meters... 157 7.6 The Netherlands... 158 7.6.1 Electricity and gas distribution industry structure... 158 7.6.2 Metering regulatory environment and smart meter market developments... 160 7.7 United Kingdom... 162 7.7.1 Electricity and gas distribution industry structure... 162 7.7.2 Metering regulatory environment... 165 7.7.3 Plans for a nationwide smart metering system... 166 7.7.4 Early smart meter deployments... 167 8 Market profiles: Southern Europe... 169 8.1 Italy...170 8.1.1 Electricity and gas distribution industry structure... 170 8.1.2 Metering regulatory environment... 172 STRATEGIC M2M RESEARCH SERIES v
INDEX SMART METERING IN EUROPE 8.1.3 Smart metering market developments...173 8.2 Spain...174 8.2.1 Electricity and gas distribution industry structure...174 8.2.2 Metering regulatory environment...175 8.2.3 Smart metering market developments...176 8.3 Portugal...178 8.3.1 Electricity and gas distribution industry structure...178 8.3.2 Metering regulatory environment and smart metering market developments.179 8.4 Malta...180 8.4.1 Utility industry structure...180 8.4.2 National smart grid project...181 9 Market profiles: Central Eastern Europe...183 9.1 Bulgaria...184 9.1.1 Electricity and gas distribution industry structure...184 9.1.2 Metering regulatory environment and smart metering market developments.185 9.2 Czech Republic...186 9.2.1 Electricity and gas distribution industry structure...186 9.2.2 Metering regulatory environment and smart metering pilots...187 9.3 Poland...188 9.3.1 Electricity and gas distribution industry structure...188 9.3.2 Metering regulatory environment and smart metering projects...189 9.4 Slovenia...190 9.4.1 Electricity industry structure and metering regulatory environment...190 9.4.2 Smart metering projects...191 10 Case studies: Smart metering projects in Europe...193 10.1 Enel...193 10.1.1 The Telegestore project in Italy...193 10.1.2 The Meters and More initiative...195 10.1.3 Endesa s smart metering project in Spain...196 10.2 ERDF...197 10.2.1 The Linky Programme...197 10.2.2 System development and full-scale pilot...199 vi STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES
SMART METERING IN EUROPE INDEX 10.3 Iberdrola... 200 10.3.1 The PRIME project... 200 10.3.2 Smart metering projects in Spain and the US... 201 10.4 RWE... 202 10.4.1 Regional DSO operations in Germany... 202 10.4.2 The Mülheim Zählt project... 203 10.5 Fortum... 204 10.5.1 Smart meter rollout in Sweden... 204 10.5.2 Smart meter rollout in Finland... 206 10.6 Energa... 206 10.7 ESB... 208 10.7.1 Communication technology trials... 209 10.7.2 Consumer behaviour trials... 210 10.7.3 Cost benefit analysis... 211 10.8 Smart metering projects in the UK... 214 10.8.1 Ofgem s Energy Demand Research Project... 215 10.8.2 British Gas early rollout to residential customers... 215 10.8.3 Candidate technologies for the DCC s smart metering network... 216 Glossary... 219 STRATEGIC M2M RESEARCH SERIES vii
INDEX SMART METERING IN EUROPE Index List of Figures Figure 1.1: Top 25 energy companies, by turnover (EU23+2 2010)...4 Figure 1.2: Electricity generation and consumption data (EU27 2010)...5 Figure 1.3: Electricity market statistics (EU23+2 2010)...7 Figure 1.4: Top 25 electricity DSOs (EU27+2 2011)...9 Figure 1.5: Gas market statistics (EU23+2 2010)...11 Figure 1.6: Top 25 gas DSOs (EU27+2 2010)...12 Figure 1.7: District heating market statistics (EU23+2 2007)...13 Figure 2.1: Plug-in hybrid electric vehicle...21 Figure 2.2: Smart metering infrastructure...23 Figure 2.3: Examples of smart electricity meters...24 Figure 2.4: OPEN Meter project partners...33 Figure 3.1: PLC point-to-multipoint communication infrastructure...38 Figure 3.2: Wireless Mesh point-to-multipoint communication infrastructure...39 Figure 3.3: Cellular point-to-point communication infrastructure...40 Figure 3.4: Selected members of ZigBee Alliance by industry...50 Figure 4.1: Energy meter vendor company data (World/Europe, FY2010)...58 Figure 4.2: Landis+Gyr smart metering product portfolio (Europe 2011)...59 Figure 4.3: Itron smart metering product portfolio (Europe 2011)...64 Figure 5.1: Household power consumption and retail prices (EU23+2 2010)...103 Figure 5.2: Mass rollout period for smart electricity meters by country...105 Figure 5.3: Smart meter shipments and penetration rate (EU23+2 2010 2016)...108 Figure 5.4: Smart meter shipments by region (EU23+2 2010 2016)...110 Figure 5.5: Smart metering capital expenditure forecast (EU23+2 2010 2016)...112 Figure 5.6: Estimated capital cost for some smart metering projects in Europe...113 Figure 5.7: Breakdown of costs for smart metering projects in Western Europe...114 Figure 6.1: Smart meter contracts by country (Northern Europe 2010)...119 Figure 6.2: SM-contracts in the Nordic region by meter supplier and contractor (2011)...120 Figure 6.3: Top 10 electricity DSOs (Sweden, 2011)...122 viii STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES
SMART METERING IN EUROPE INDEX Figure 6.4: SM contracts awarded by top 10 DSOs in Sweden... 124 Figure 6.5: SM vendor selection of medium sized DSOs in Sweden (2009)... 125 Figure 6.6: Features of smart meters in Sweden... 126 Figure 6.7: Communication technologies of smart meters in Sweden... 127 Figure 6.8: Top 10 electricity DSOs (Denmark, 2011)... 129 Figure 6.9: Major SM projects in Denmark (June 2011)... 131 Figure 6.10: Top 10 electricity DSOs (Finland, 2011)... 133 Figure 6.11: Top 50 SM contracts in Finland (June 2011)... 134 Figure 6.12: Top 10 electricity DSOs (Norway, 2011)... 139 Figure 6.13: Major SM projects in Norway (June 2011)... 142 Figure 7.1: Major smart electricity metering projects in Western Europe (June 2011)... 143 Figure 7.2: Top 10 electricity and gas DSOs (Austria, 2011)... 145 Figure 7.3: Electricity and gas network operators (Belgium, 2011)... 147 Figure 7.4: Top 50 electricity DSOs (Germany, 2011)... 152 Figure 7.5: Major smart metering projects in Germany (2011)... 155 Figure 7.6: Electricity and gas DSOs (Netherlands, 2011)... 159 Figure 7.7: Electricity DSOs (UK, 2011)... 163 Figure 7.8: Gas DSOs (UK, 2010)... 164 Figure 7.9: Domestic electricity and gas retailer market shares (UK, 2010)... 164 Figure 7.10: Key milestones for the UK smart metering programme... 167 Figure 8.1: Major smart electricity metering projects in Southern Europe (June 2011)... 169 Figure 8.2: Top 20 electricity and gas DSOs (Italy, 2011)... 171 Figure 8.3: Major electricity and gas DSOs (Spain, 2011)... 175 Figure 8.4: Top 5 DSOs (Portugal, 2011)... 179 Figure 9.1: Smart electricity metering projects in Central Eastern Europe (June 2011)... 183 Figure 9.2: Electricity DSOs and smart meters under contract (Bulgaria, 2011)... 185 Figure 9.3: Top 5 DSOs (Czech Republic, 2011)... 187 Figure 9.4: Electricity DSOs (Poland, 2011)... 189 Figure 9.5: Electricity DSOs (Slovenia, 2011)... 191 Figure 10.1: Telegestore annual operational data (Italy, 2010)... 194 Figure 10.2: Conceptual system architechture for ERDF s smart metering system... 198 Figure 10.3: Estimated cost of Energa s smart metering project... 207 STRATEGIC M2M RESEARCH SERIES ix
INDEX SMART METERING IN EUROPE Figure 10.4: Comparision of data collection performance for PLC/RF/GPRS...210 Figure 10.5: Calculated NPV for smart metering rollout options in Ireland...211 Figure 10.6: Estimated cost for smart electricity meters and network equipment...212 Figure 10.7: Estimated overhead costs for smart metering in Ireland...213 Figure 10.8: Estimated capital cost for a smart metering rollout in Ireland...214 x STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES