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Going Green: Smart Grid Drivers and Challenges for Deployments in Europe

Governments, energy providers, and technology developers in many countries around the world are actively participating in the development of smart grids. In its most complex form, a smart grid consists of two-way communicating meters, measuring devices, communication networks, energy data management systems, home area networking (HAN) platforms, and energy management programs.

The smart meter is the key base component of smart grids and the first step towards full-scale smart grid deployments. Smart meters are capable of recording and reporting usage data hourly, and when equipped with proper user interfaces, they allow customers to make informed decisions in response to real-time power consumption data. They can also enable home automation control features, such as optimised use of lighting, HVAC, and appliance controls, and energy-efficiency features.

Common Drivers and Challenges

As more governments set ambitious goals to address climate change concerns, advance metering infrastructure (AMI) is often seen as an important element of energy policies. One of the energy-efficiency programs with the largest reach and visibility is the EU action against climate change, setting ambitious targets for 2020:

* Cutting greenhouse gases by 20%.
* Reducing energy consumption by 20% through increased energy efficiency.
* Meeting 20% of the EU's energy needs from renewable sources.

These are often referred to as EU 20-20-20 targets. Many European governments are using smart meter deployments as a tool to meet these objectives mandated by European regulators.

While each country is faced with cultural, geographic, and socioeconomic peculiarities, there are several common drivers and challenges associated with the deployment of smart meter installations.

From the article, "Going Green: Smart Grid Drivers and Challenges for Deployments in Europe" by Pietro Macchiarella, Research Analyst, Parks Associates

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