How Can Smart Meters Save Europe €120 Billion?

October 13, 2009 at 3:57 pm

October 12, 2009: In the packed King Harald Board Room at the Naval and Military Club in St. James Square, London, today, Ahmad Faruqui and Dan Harris explained to an elite group of industry experts how rolling out smart meters in Europe can save  €6 billion per year, or  €120 billion ($175 billion) over the meters’ 20-year life.  The means is demand response via smart, dynamic prices.  Dr. Faruqui and Mr. Harris are principal consultants with the Brattle Group and made their presentation in the eMeter-sponsored event that included Chris King’s update on the PowerCentsDC smart grid project.

Faruqui and Harris explained to the group of government officials, academics, electricity retailers, and industry consultants (and Nissan, who sees a strong link between smart prices and electric car charging) how they applied Brattle’s econometric model to Europe.  The model includes 49 results from pilots throughout North America and a few from Australia and Europe.  The consultants adjusted their results for Europe to account for much lower air conditioning usage, pulling from pilot data in places like the State of Washington, the San Francisco Bay Area, and Ottawa, Canada, where air conditioning use is also very limited.  They analyzed the UK wholesale market and other European electricity markets in assessing the value.

The presentation was important for two reasons.  Of course, €120 billion in consumer savings is important, period.  In addition, however, this seminar and others like it are highlighting both the importance of the consumer and the benefits to the consumer of smart meters in Europe.  So far, consumers are seeing relatively little benefit from the nearly 50 million smart meters deployed in, primarily, Italy and Scandinavia.  Brattle advocates that all those consumers have the chance to sign up for voluntary smart prices – TOU, CPP, or Peak Time Rebate – so they can start going after some of that €120 billion!

– Chris King

Entry filed under: Chris King, consumer benefits, Energy regulation, European Smart Grid regulation, Smart Grid, smart grid benefits, Time of Use (TOU) prices. Tags: , , , , , , , , , , .

Smart Meter Europe: Spain Jumping Ahead ENEL Responds to My Status Request


October 2009
« Sep   Nov »


Twitter Updates

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

%d bloggers like this: