New Regulations Propel German Smart Grid Market into Growth Phase

WASHINGTON, Sept. 28, 2016 /PRNewswire/ -- Germany is the largest market in Europe but has lagged behind its neighbors in deploying smart grid infrastructure in its power sector. This is now set to change after new regulations passed in July 2016. These regulations should spur a market that will include 44m smart meters by 2026 and a total of $23.6bn invested in smart grid infrastructure, according to a new study published today by Northeast Group, LLC.  

"Germany is finally providing some clarity regarding its intentions for smart grid infrastructure investment," said Ben Gardner, President of Northeast Group. "In July the country passed its Act on the Digitization of the Energy Transition which calls for the deployment of smart meters. This will lay the foundation for much needed investment in smart grid infrastructure required to integrate the country's growing supply of intermittent renewables."

The recent smart metering legislation is the next step in the country's broader transition to a low-carbon and energy efficient energy economy known as the Energiewende. Despite ambitious renewable energy targets, Germany has lagged behind its European peers­–many of whom will reach 80% penetration by 2020­–in meeting smart metering targets. Starting in 2017, select customer classes will begin receiving smart meters. Germany aims for full deployment by 2032 but Northeast Group is forecasting that it will achieve this sooner once the benefits of smart metering become clear.

In addition to smart metering, Germany will also invest in other smart grid infrastructure segments. Over the next decade, the country will invest $14.1bn in advanced sensors, communications and software for its distribution grid and in battery storage. Investment will be undertaken by the country's four largest utilities–RWE, E.On, EnBW, and Vattenfall–as well as the numerous Stadtwerke, or municipal utilities.

Several leading global vendors including ABB, Aclara, Elster (Honeywell), GE, Itron, Iskraemeco, Kamstrup, Landis+Gyr, Schneider, Siemens, and others will all be vying for a piece of the German market. The large market should provide ample opportunities for a significant number of vendors.

Germany Smart Grid: Market Forecast (2016-2026) is 44 pages long and includes a dataset in Excel with quantitative forecasts. To order a copy of the study, please visit: www.northeast-group.com

ABOUT: Northeast Group, LLC is a Washington, DC-based smart infrastructure market intelligence firm.

SOURCE Northeast Group, LLC

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