Smart Meters: Measuring, Monitoring, and Managing Electricity - Smart Grid (R) Evolution: Electric Power Struggles - page 110

have been installed in more than 90 percent of households in Italy, driven largely by
the state-controlled power provider Enel's effort to reduce illegal and informal grid
connections, or electricity theft. Italy spent 2.1 billion euros on installing 36 million smart
meters from 2001 to 2008. In Italy, regulators supported smart grid development with a
special tariff which provides innovative smart grid investment with an additional 2 percent
rate of return for utilities. Sweden's investment of 1.5 billion euros to install 5.2 million
meters from 2003 to 2009 was driven by a desire to create a green and sustainable energy
system and develop a clean tech industry, while helping energy consumers; however,
integration of data management systems remains a barrier to this last goal. By early 2014,
Finland had exceeded its smart meter installation target: close to 100 percent of homes now
have smart meters (Electric Light & Power 2014 ) . Other countries have also committed to
full smart meter rollouts: France, Spain, and the UK have committed to full smart meter
penetration by 2017, 2018, and 2019 respectively. However, some EU countries, such as
Belgium, the Czech Republic, and Lithuania, are not pursuing national rollouts, and eleven
other member states have not reached any official decision on smart meters and smart grid
development (JRC Scientific and Policy Reports 2013 ) .
Based on the EU countries that have developed roadmaps for full deployment of smart
meters, projections estimate 60 percent penetration (170 million smart meters) by 2019
(M2M Research 2013 ) . The EU has established an ambitious goal of installing smart
meters in 80 percent of households by 2020, but Germany's decision to opt out because
it would be too costly for consumers has reduced the likelihood that this goal will be met
(Johnston 2013 ).
When considering how, when, and why smart meters are being installed, there is great
heterogeneity and variation. While EU installations are being promoted as part of an
EU-mandated goal of 80 percent of households having smart meters by 2020, installation
in the United States has been shaped by state policy, PUC decisions, and individual utility
initiatives, with different levels of deployment across communities and regions. In the
United States, many utilities must have projects approved by the state PUC or similar
state-level regulatory authority to secure cost recovery, so the existing technologies, price
of electricity, projected demand, energy markets, and many other factors determine the
attractiveness of smart meter investment.
While much of the recent media coverage surrounding smart meters has focused on
residential electricity use, sophisticated metering has already been used extensively in
many industrial facilities and commercial businesses. Industrial electricity customers are
often subject to different rates structures than residential customers, which often include
a demand charge as well as charges for electricity used. Many also have interruptible
power contracts which allow utilities to suspend service in emergency situations. Also,