Smart meter deployment worldwide

The deployment of smart meters is being done throughout the world, pushed by the European Union Directive 2009/72/EC that establishes that energy utilities should install smart meters in 80% of EU energy consumers by 2020 and by the $8 Billion pack from the Obama administration to update the U.S. electricity grid. Smart meter deployment will allow for a twofold approach to energy reduction by providing real-time information about all nodes in the network to utilities and improve grid management; and by exposing end energy consumers to their on-time consumptions and costs that will in the long run foster a change in consumption behavior.

Smart meters will provide real time information about the aggregate electricity consumption and this is expected to lead to substantial gains in the electricity systems efficiency. By itself, the information provided by smart meters is not sufficient for residential consumers to understand how they can be more efficient.

If electricity providers know which and when appliances are used in each home, they can help consumers by suggesting specific tailor made measures that will yield benefits for all stakeholders.

Links:
McKinsey on Smart Grid: Maximizing value from smart grids
McKinsey on Smart Grid: How Europe is approaching the smart grid