Smart Metering - Europe June 2009

Executive Summary SAMPLE Market Drivers & Challenges Opportunities & Benefits Competition Total XX mn installed in Europe in 20--; Expected to reach YY mn by 20-- a% of European consumers are expected to have smart energy meters installed in their homes by 20-- Smart metering initiatives are more advanced in Western Europe and Nordic region Full compulsory SM roll out policy in country U,V and W Utilities: Reduces operational costs, control levels during peak demand, easy identification of faults, demand side management and forecasting additional generation levels Manufacturers: Favorable government policies and expected standardization of technology Government and Public: Improve energy efficiency and facilitating micro-generation ICT: Demand for enhanced M2M communication and demand for consulting services There exists a large number of players across the value chain focusing largely on country specific growth due to varied government regulations and the lack of standardization Drivers: EU directive and energy conservation goals Liberalization of energy market in Europe Cost benefits leading to favorable market conditions Demand side management Challenges: Huge investment required Lack of standardization Security issue L ack of acceptability among small consumers Company A, B, C IT Firms Company X,Y,Z Manufacturers Company U,V,W Utilities

Total XX mn installed in Europe in 20--; Expected to reach YY mn by 20--

a% of European consumers are expected to have smart energy meters installed in their homes by 20--

Smart metering initiatives are more advanced in Western Europe and Nordic region

Full compulsory SM roll out policy in country U,V and W

Utilities: Reduces operational costs, control levels during peak demand, easy identification of faults, demand side management and forecasting additional generation levels

Manufacturers: Favorable government policies and expected standardization of technology

Government and Public: Improve energy efficiency and facilitating micro-generation

ICT: Demand for enhanced M2M communication and demand for consulting services

There exists a large number of players across the value chain focusing largely on country specific growth due to varied government regulations and the lack of standardization

Drivers:

EU directive and energy conservation goals

Liberalization of energy market in Europe

Cost benefits leading to favorable market conditions

Demand side management

Challenges:

Huge investment required

Lack of standardization

Security issue

L ack of acceptability among small consumers

Introduction Market Overview Drivers and Challenges Opportunities & Benefits Key Players Key Developments Appendix

Introduction

Market Overview

Drivers and Challenges

Opportunities & Benefits

Key Players

Key Developments

Appendix

Smart Metering industry in Europe is expected to boost with increasing focus on efficient energy consumption SAMPLE Source: 2011 Y 2012 Z 2013 a% U 2008 V 2009 W 2010 X mn Market Overview Installed base of smart electricity meters in Europe is expected to reach XX mn by 20-- a% of European consumers are expected to have smart energy meters installed in their homes by 20- - Activity focused on Electricity Smart Metering (SM) Gas tends to follow, with some minor activity in Water and Heat Smart metering initiatives are more advanced in Western Europe and Nordic region Full compulsory SM roll out policy in U,V,W Recent EU joiners tend to have no formal policy of legislation in place for SM Trials are underway in many of these countries, even if only small scale Countries with partial SM policy X,Y,Z Market Size New installations will reach a rate of ZZ mn units annually in these countries by 20--

Installed base of smart electricity meters in Europe is expected to reach XX mn by 20--

a% of European consumers are expected to have smart energy meters installed in their homes by 20- -

Activity focused on Electricity Smart Metering (SM)

Gas tends to follow, with some minor activity in Water and Heat

Smart metering initiatives are more advanced in Western Europe and Nordic region

Full compulsory SM roll out policy in U,V,W

Recent EU joiners tend to have no formal policy of legislation in place for SM

Trials are underway in many of these countries, even if only small scale

Countries with partial SM policy

X,Y,Z

Italy and Sweden are leading the adoption of smart meters in Europe, with others planning on large scale implementation SAMPLE Source: 2009 2015 2018 2020 2012 Timeline A The government plans to make the installation of smart meters in all homes compulsory by 20-- B Spain to replace all meters <u kW by Smart Meters by 2018 D Regulatory authority proposes replacement to be concluded by 20-- E Finland requires that utilities install smart meters for v% of Finnish homes by 20-- F France replace X mn meters starting 20-- G y% installation by 20-- H z% installation by 20-- C Netherlands plans on installation of smart meters and replace existing meters by 20--

Drivers and Challenges Drivers EU Directive and Energy Conservation Goals Liberalization of Energy Market in Europe Cost benefits leading to favourable market conditions Demand Side Management Security Issue Challenges Huge Investment Required Lack of Standardization Lack of acceptability among small consumers

Competition – Utility Firms (1/2) Source: Note: This list in not exhaustive SAMPLE Investment of USD YY bn is planned in 20-- - -- towards maintenance, replacement of existing infrastructure and expanding generating and network capacity By 20--, plans on generating u% of energy from renewable sources By 20--, plans on reducing the amount of carbon dioxide emitted by v% A global investor-owned power and gas companies operating across the value chain Other than Europe, operations have expanded to Russia and North America Approximately, a GW of installed generating capacity In 20--, revenues amounted to USD XX bn C Expanding into wind power generation Initiatives have been taken through its French subsidiary Z adding X MW capacity By 20--, total investment of USD YY bn expected towards developing new technologies World's largest smart meter deployment was undertaken by U Between 20-- - -- it deployed smart meters to its entire customer base with Capgemini as its main partner It has a generation capacity of V MW In 20--, revenues amounted to USDW bn B Plans full rollout of its smart grid project - Inovgrid Project involves the upgradation of the company's a km fibre–optic network, b telemeters, and c mn meters Focuses on the Portugese market, owns approximately a% of the electricity distribution networks in mainland Portugal A Business Overview Future Outlook Company

Investment of USD YY bn is planned in 20-- - -- towards maintenance, replacement of existing infrastructure and expanding generating and network capacity

By 20--, plans on generating u% of energy from renewable sources

By 20--, plans on reducing the amount of carbon dioxide emitted by v%

A global investor-owned power and gas companies operating across the value chain

Other than Europe, operations have expanded to Russia and North America

Approximately, a GW of installed generating capacity

In 20--, revenues amounted to USD XX bn

Expanding into wind power generation

Initiatives have been taken through its French subsidiary Z adding X MW capacity

By 20--, total investment of USD YY bn expected towards developing new technologies

World's largest smart meter deployment was undertaken by U

Between 20-- - -- it deployed smart meters to its entire customer base with Capgemini as its main partner

It has a generation capacity of V MW

In 20--, revenues amounted to USDW bn

Plans full rollout of its smart grid project - Inovgrid

Project involves the upgradation of the company's a km fibre–optic network, b telemeters, and c mn meters

Focuses on the Portugese market, owns approximately a% of the electricity distribution networks in mainland Portugal

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