Strategic Choices for Sustainability at EU Regional Level - The Sustainability of Renewable Energy in Europe - page 103

smart electric meters and the request to EU member states to achieve by 2020
a share of smart meters 80 % of the total, after verification that the related long-
term benefits outweigh the costs, i.e., cost-benefit analysis. 2 The implementation
of intelligent metering systems designed to ensure long-term benefits to consum-
ers. The third energy package does not set a specific goal for the implementation
of intelligent metering systems in the gas sector, but the interpretative note on the
retail markets indicates that it should be made within a reasonable time. A report
of the European Commission in June 2014, “Benchmarking smart metering de-
ployment in the EU-27 with a focus on electricity,” (COM (2014) 356) has mea-
sured progress made in the implementation of smart meters in the EU 27 for the
electricity sector; the analysis shows that considerable progress has been made.
According to the report, as a result of positive cost-benefit analysis for the elec-
tricity in more than two-third of cases, member states are now committed to pro-
ceed with the introduction of smart meters (or have already completed). Nearly
45 million smart meters have already been installed in three member states (Fin-
land, Italy, and Sweden), which represent 23 % of the installations planned in the
EU by 2020. Below are the results of the cost benefit conducted by member coun-
tries with reference to the introduction of smart meters. In the electricity sector,
16 member states (Austria, Denmark, Estonia, Finland, France, Greece, Ireland,
Italy, Luxembourg, Malta, the Netherlands, Poland, Romania, Spain, Sweden,
and the UK) proceed or have already introduced large-scale smart meters by 2020
or earlier. In Poland and Romania, the cost-benefit analysis has produced positive
results, but they have not yet adopted official decisions for the introduction. In the
other EU countries, the cost-benefit analysis has failed or has yielded no effect.
However, in the majority of EU countries, there is legislation in the field of smart
meters for electricity, which establishes a legal framework for the introduction
and its discipline specific issues such as the timetable for introduction, or fixed
specifications for meters, etc. As regards the gas sector, only five member states
(Ireland, Italy, Luxembourg, the Netherlands, and the UK) have decided to intro-
duce smart meters by 2020 or earlier. Available data reported in the COM (2014)
356 indicate that a system of smart metering could cost an average of € 200 to
€ 250 per consumer and the smart metering systems should bring overall benefits
to consumers amounted to € 160 for gas and € 309 for electricity, accompanied
by energy savings of 3 %. The most challenging feature to be implemented refers
to the frequency with which consumption data can be updated and made avail-
able to consumers and third parties acting on their behalf. This feature will help
to provide consumers with information on the direct costs, which enables them
to make informed choices about their consumption patterns and facilitates the
development of new services and retail products.
2 The approach recognizes that the impact of smart grid projects goes beyond what can be cap-
tured in monetary terms, and then it integrates the economic analysis with a qualitative analysis
approach that includes a nonmonetary approach in terms of externalities such as impacts social
(Joint Research Centre, European Commission, 2012).