Tough carbon reduction goals in the European Union are expected to encourage speedy deployment of smart meter technologies in Europe over the next few years.
According to a recent report from Pike Research, cumulative investment in smart grid technologies within the region will total $80.3bn by 2020.
The maket analyst estimates that by 2020, 238.4 million smart meters will have been deployed across Europe.
“Smart grid development is really part of a unique transformation taking place across European energy networks, industry, and society over the next 40 years,” said senior analyst Eric Woods.
Depolyment currently varies across Europe, but his is likely to change over the next five years as political momentum builds behind plans for carbon reduction.
“The smart grid is at the heart of energy and environmental policies that cover 27 countries and 500 million people,” said Woods.
Germany, the largest electricity market in the EU, has smart meter pilot schemes, but no large-scale deployment.
Sweden in contrast seems to be playing a leading role in the overall European smart grid movement. The implementation of a continent-wide smart grid requires a systemic view that can grasp both interrelated technological and market issues and the challenges of integrating widely varying national systems.
One issue that needs to be addressed is the development of European standards for smart meters and smart grid deployments. There are are also privacy and security concerns.
Crucially, investment is needed along with national initiatives by industry regulators.
Pike Research’s report, Smart Grids in Europe, examines smart grid trends in Europe and forecasts the size and growth of the market for smart grid technologies through 2020.