Central & Eastern Europe Smart Metering Market To Reach $10.3 billion by 2023

News provided by

Apr 09, 2013, 04:57 ET

WASHINGTON, April 9, 2013 /PRNewswire/ -- Several Central & Eastern Europe (CEE) countries represent compelling opportunities for smart grid investments but are often overshadowed by their Western European neighbors. Smart meter spending alone in the CEE region will reach $10.3 billion cumulatively by 2023, with almost all electric utilities completing full smart meter deployments over that time period. A new study released today by Northeast Group, LLC – Central & Eastern Europe Smart Grid: Market Forecast (2013-2023) – forecasts the growth of advanced metering infrastructure (AMI), or smart metering, in ten CEE countries over the next decade. The study includes details on the already announced smart meter projects and the associated vendors, targets and deadlines set at the national and European Union (EU) level, and a forecast of annual deployment statistics across all ten countries.

"Central & Eastern Europe is the most advanced region among emerging market countries for smart grid and smart meter deployments," according to Northeast Group. "All ten countries covered in this study are expected to adopt EU smart meter regulations over the course of this decade, and some already have extensive smart grid roadmaps in place. At the same time, with lower electricity demand levels compared with Western Europe, it's not clear if all CEE countries will meet the EU targets. Each country's unique energy sector drivers are determining whether or not it will meet prescribed targets."

The European Union has mandated that all member states deploy smart meters to 80% of customers by 2020, if economically feasible. All EU countries were meant to complete smart metering cost-benefit analyses by September 2012, but fewer than half of the ten CEE countries have done so. Most CEE countries claim they intend to meet the EU timelines, but have not yet officially transposed EU regulations into their national legislation.

"The EU regulations are still the driving force in the region," continued Northeast Group. "The EU provides guidelines on setting roadmaps, creating interoperability standards, ensuring data protection, and establishing costs and benefits for all stakeholders. These are advantages that many countries in other emerging market regions do not enjoy. Some CEE countries may miss the EU 2020 deadline, but almost all CEE countries will have a nearly full deployment of smart meters by the end of our forecast period in 2023."

Indeed, several utilities across Central & Eastern Europe already have plans in place. Estonia plans to deploy smart meters to 100% of its customers by 2017, while utilities in Bulgaria, Poland, Romania, and Slovenia also have plans for full smart meter rollouts. In countries where cost-benefit analyses have been conducted, the result has almost always been positive. Once more of these analyses are completed, the EU mandate will begin compelling stronger regulatory action at the national level. This is expected within the next year or two.

"It is not surprising that most CEE countries find net positive benefits from their cost-benefit analyses," added Northeast Group. "Electricity prices are among the highest in the world, so customers can benefit from having greater control over their electricity consumption. Meanwhile, distribution loss rates are much higher and the duration of power outages in the CEE region are much longer compared with Western Europe, so utilities stand to gain from metering upgrades. Additionally, as these countries add greater percentages of renewable sources of energy, grid upgrades are necessary to handle the intermittency of these resources."

The quickly developing market has attracted a number of both local and international vendors. Northeast Group's study includes detailed assessment of vendors based in Central & Eastern Europe, as well as the regional market activity of the leading Western European, American, and Asian vendors.

Northeast Group's study forecasts five sub-segments of the AMI market, including meter hardware, communications, IT, professional services, and installation costs for ten countries across the CEE region. Countries covered include:

Bulgaria;
Czech Republic;
Estonia;
Hungary;
Latvia;
Lithuania;
Poland;
Romania;
Slovakia;
Slovenia.

The study also includes a discussion of recent smart grid activity and potential in Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro, and Serbia. In addition to AMI market forecasts, the study surveys activity in the other smart grid segments of distribution automation, wide area measurement, and home energy management.

Northeast Group's Central & Eastern Europe Smart Grid: Market Forecast (2013 – 2023) study is approximately 180 pages in length with over 130 tables, charts and graphics. It includes a 14-page stand-alone executive summary for a quick synthesis, full regional and country-by-country forecasts including analysis of regulatory frameworks, drivers, and utility and vendor activity. The study also includes an extensive appendix including full EU regulations, examples of CEE cost-benefit analyses, details on electric vehicle and renewable energy metrics, and other dynamics driving the smart grid market in the region. To order a copy of the study, please visit the website at: www.northeast-group.com or email Ben Gardner at: [email protected]

ABOUT: Northeast Group, LLC is a Washington, DC-based smart grid market intelligence firm. Our research is focused on the smart grid opportunity in emerging market countries.

Key questions answered in this study:

How large will the smart meter market in Central & Eastern Europe become over the next decade?
What are the results of cost-benefit analyses conducted to-date in CEE countries?
Which utilities already have large-scale smart meter rollouts planned and when will they be complete?
Which countries have the most complete incentives for electric vehicles and distributed generation?
Who are the local vendors already active in the CEE smart grid market?

Unique characteristics of this study:

Full details of industry structure, regulatory framework, market dynamics, and utility activity for ten Central & Eastern European countries;
Section detailing size, partners, and activity of smart grid vendors based in the CEE region;
Full forecasts and datasets of five AMI market segments for ten CEE countries (2013-2023);
Comprehensive comparison of smart grid indicators throughout emerging markets;
Detailed analysis of multiple smart grid drivers including business cases built on distribution loss reduction, renewable energy incentives, and electric vehicle metrics.

Table of Contents
i. Executive Summary		1
ii. Methodology		15
1. Introduction		17
	1.1 What is smart grid?	17
	1.2 Smart grid's role in regional interconnection	23
	1.3 How has smart grid been used elsewhere in the world?	25
2. Central & Eastern Europe smart grid snapshot		30
	2.1 The region in comparison	31
	2.2 Regional drivers	33
	2.3 Regional challenges	41
	2.4 Most recent developments	43
3. Regional market forecast		45
4. Poland		50
	4.1 Electricity industry structure	52
	4.2 Smart metering regulatory environment	54
	4.3 Market forecast	57
	4.4 Utility activity	59
5. Estonia		62
	5.1 Electricity industry structure	64
	5.2 Smart metering regulatory environment	65
	5.3 Market forecast	68
	5.4 Utility activity	70
6. Slovenia		71
	6.1 Electricity industry structure	73
	6.2 Smart metering regulatory environment	74
	6.3 Market forecast	76
	6.4 Utility activity	78
7. Romania		79
	7.1 Electricity industry structure	81
	7.2 Smart metering regulatory environment	82
	7.3 Market forecast	84
	7.4 Utility activity	86
8. Hungary		88
	8.1 Electricity industry structure	90
	8.2 Smart metering regulatory environment	91
	8.3 Market forecast	93
	8.4 Utility activity	96
9. Czech Republic		97
	9.1 Electricity industry structure	99
	9.2 Smart metering regulatory environment	100
	9.3 Market forecast	102
	9.4 Utility activity	104
10. Slovakia		106
	10.1 Electricity industry structure	108
	10.2 Smart metering regulatory environment	110
	10.3 Market forecast	111
	10.4 Utility activity	113
11. Bulgaria		115
	11.1 Electricity industry structure	117
	11.2 Smart metering regulatory environment	118
	11.3 Market forecast	120
	11.4 Utility activity	121
12. Latvia		123
	12.1 Electricity industry structure	125
	12.2 Smart metering regulatory environment	126
	12.3 Market forecast	127
	12.4 Utility activity	129
13. Lithuania		130
	13.1 Electricity industry structure	132
	13.2 Smart metering regulatory environment	133
	13.3 Market forecast	135
	13.4 Utility activity	136
14. The rest of the region		137
15. Vendor activity		142
	15.1 CEE-based vendors	142
	15.2 International vendors active in smart grid in Central & Eastern Europe	149
16. Conclusion		154
17. Appendix		155
	17.1 List of companies covered in this report	155
	17.2 List of acronyms	156
	17.3 Renewable energy incentives in CEE	157
	17.4 Electric vehicle metrics in CEE	159
	17.5 Payback on smart metering from loss reduction in CEE	160
	17.6 Cost-benefit analysis examples in CEE	162
	17.7 Select EU smart grid regulations	164

List of Figures, Boxes, and Tables

Central & Eastern Europe smart grid: key takeaways	3
EU smart grid-related regulations	4
20-20-20 targets for CEE countries	4
Smart grid drivers and barriers in Central & Eastern Europe	5
Renewable energy potential and incentives in CEE	6
Distribution losses and power outages in CEE	6
Smart metering cost-benefit analyses completed in CEE	7
Announced smart meter deployment plans in CEE	7
Leading smart metering vendors in CEE	8
CEE-based smart grid vendors	8
AMI forecast by country	9
CEE smart meter penetration rate	9
AMI forecast data by country	10
Figure 1.1: Smart grid value chain	17
Figure 1.2: Smart grid model	18
Table 1.1: Benefits of AMI in Central & Eastern Europe	20
Table 1.2: Electric vehicle subsidies in CEE	21
Table 1.3: Demand response options	22
Figure 1.3: Transmission interconnections in CEE	24
Figure 1.4: Smart grid activity in emerging markets	26
Figure 2.1: Emerging markets smart meter potential	31
Figure 2.2: Per-capita electricity consumption	32
Figure 2.3: Per-capita CO2 emissions	32
Figure 2.4: Projected GDP growth	33
Box 2.1: EU Directive 2009/EC/72	34
Figure 2.5: CEE compliance with EU smart meter regulations	35
Table 2.1: European Commission recommendations for smart meter requirements	36
Figure 2.6: Electricity prices in emerging markets	36
Figure 2.7: Electricity prices in the EU	37
Table 2.2: 20-20-20 targets for CEE countries	37
Figure 2.8: Renewable sources of energy in CEE	38
Figure 2.9: Distribution losses in CEE	39
Figure 2.10: Annual minutes lost to power outages	39
Table 2.11 Smart grid market drivers and barriers in CEE	40
Figure 2.12: Average annual GDP growth in CEE	41
Figure 2.13: Status of planned smart meter rollouts in CEE	43
Figure 3.1: Timeline of smart grid developments in CEE	45
Figure 3.2: AMI forecast by country	46
Table 3.1: AMI forecast data by country	46
Figure 3.3: CEE smart meter penetration rate	47
Figure 3.4: Annual AMI deployments in CEE	47
Figure 3.5: Planned, forecasted, and targeted smart meter deployments in CEE	47
Figure 3.6: AMI cost breakdown	48
Figure 3.7 Per-endpoint smart meter cost estimates	48
Figure 3.8: AMI forecast by segment	49
Figure 3.9: AMI forecast data by segment	49
Table 4.1: Poland key data	50
Figure 4.1: Poland AMI penetration rate	50
Table 4.2: Smart grid indicators in Poland	51
Figure 4.2: New and decommissioned generation in Poland	52
Box 4.1: Political risk in Poland	53
Table 4.3: Poland's 2011 smart grid roadmap	55
Figure 4.3: Poland AMI forecast	58
Table 4.4: Poland AMI forecast data	58
Table 4.5: Smart meter deployments in Polish utilities	59
Figure 4.4: Energa's planned deployments	60
Table 5.1: Estonia key data	62
Figure 5.1: Estonia AMI penetration rate	62
Table 5.2: Smart grid indicators in Estonia	63
Box 5.1: Political risk in Estonia	65
Figure 5.3: Estonia's E-mobility operating model	67
Figure 5.2: Estonia AMI forecast	69
Table 5.3: Estonia AMI forecast data	69
Table 6.1: Slovenia key data	71
Figure 6.1: Slovenia AMI penetration rate	71
Table 6.2: Smart grid indicators in Slovenia	72
Box 6.1: Political risk in Slovenia	74
Figure 6.2: Estimated monthly power bills in CEE	76
Figure 6.3: Slovenia AMI forecast	77
Table 6.3: Slovenia AMI forecast data	77
Table 7.1: Romania key data	79
Figure 7.1: Romania AMI penetration rate	79
Table 7.2: Smart grid indicators in Romania	80
Box 7.1: Political risk in Romania	82
Table 7.3: Romania's smart grid roadmap	83
Figure 7.2: Romania AMI forecast	84
Table 7.4: Romania AMI forecast data	85
Figure 7.3: Enel AMI deployments in Romania	86
Table 8.1: Hungary key data	88
Figure 8.1: Hungary AMI penetration rate	88
Table 8.2: Smart grid indicators in Hungary	89
Box 8.1: Political risk in Hungary	91
Figure 8.2: Hungary's smart meter deployment plan	92
Table 8.3: Modified regulations for Hungary's smart meter rollout	93
Figure 8.3: Public support for smart metering in Hungary	94
Figure 8.4: Hungary AMI forecast	95
Table 8.4: Hungary AMI forecast data	95
Table 9.1: Czech Republic key data	97
Figure 9.1: Czech Republic AMI penetration rate	97
Table 9.2: Smart grid indicators in Czech Republic	98
Box 9.1: Political risk in Czech Republic	100
Table 9.3: Wind and solar feed-in tariffs in CEE	101
Figure 9.2: Planned renewable energy development in the Czech Republic	102
Figure 9.3: Czech Republic AMI forecast	103
Table 9.3: Czech Republic AMI forecast data	103
Table 10.1: Slovakia key data	106
Figure 10.1: Slovakia AMI penetration rate	106
Table 10.2: Smart grid indicators in Slovakia	107
Box 10.1: Political risk in Slovakia	109
Figure 10.2: Slovakia AMI forecast	112
Table 10.3: Slovakia AMI forecast data	112
Figure 10.3: Slovakia's positive smart metering cost-benefit analysis	113
Table 11.1: Bulgaria key data	115
Figure 11.1: Bulgaria AMI penetration rate	115
Table 11.2: Smart grid indicators in Bulgaria	116
Box 11.1: Political risk in Bulgaria	118
Table 11.3: Ease of business rankings	119
Figure 1.2: Bulgaria AMI forecast	120
Table 11.3: Bulgaria AMI forecast data	121
Table 12.1: Latvia key data	123
Figure 12.1: Latvia AMI penetration rate	123
Table 12.2: Smart grid indicators in Latvia	124
Box 12.1: Political risk in Latvia	126
Figure 12.2: Latvia AMI forecast	128
Table 12.3: Latvia AMI forecast data	128
Table 13.1: Lithuania key data	130
Figure 13.1: Lithuania AMI penetration rate	130
Table 13.2: Smart grid indicators in Lithuania	131
Box 13.1: Political risk in Lithuania	133
Figure 13.2: Renewable energy goals in Lithuania	134
Figure 13.3: Lithuania AMI forecast	135
Table 13.3: Lithuania AMI forecast data	135
Table 14.1: Key indicators from other CEE countries	137
Table 14.1: EBRD smart grid loans to former Yugoslav countries	139
Figure 15.1: Leading smart grid vendors in CEE	142
Figure 15.2: Leading emerging market-based smart grid vendors	143
Figure 15.3: Cities with leading smart grid vendors in CEE	144
Figure 15.4: Number of CEE-based vendors by size and segment	145
Table 15.1: Additional smart grid vendors based in CEE	149
Table 16.1: Next steps and necessary actions	154

SOURCE Northeast Group, LLC

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED

Browse News Releases

News Releases Overview

Multimedia Gallery

Multimedia Gallery Overview

Trending Topics

Central & Eastern Europe Smart Metering Market To Reach $10.3 billion by 2023

News provided by

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

Contact PR Newswire

Products

About

My Services