The Central and Eastern Europe (CEE) region is still behind western countries when competing to meet EU’s energy targets to be achieved by 2020. There are trials and pilot projects being carried out by several utilities, but the number of installed points is very low. The smart metering installations account for about 0.1 million units.

Neha Vikash from Frost & Sullivan states: “Among the CEE countries most advanced one is Estonia, with two percent of its end-users having smart meters. From other countries only a few like Czech Republic, Poland, Estonia and Slovakia are working on the essential local regulations to meet the EU targets.”

Some countries lack regulation and political will. There is no activity of roll out in Hungary and Luxemburg. Hungary expects smart metering pilot projects to start by 2011. Estonia foresees a mandate for roll out in the short term, and Hungary and Czech Republic in the mid term. “Government mandate is crucial for CEE region, without which it would be difficult for participants to exploit opportunities and avoid paying penalty fee for not meeting the EU deadline,” adds Neha Vikash. Local regulations to fulfill EU requirements will enable growth in demand and revenues. In parallel, the market will also experience intensified competition.

Competition is high in the European smart meter market and is expected to increase along with new players entering the market. Chinese and other Asian companies are expected to enter the market in the short to medium term.

The chart attached in a separate file depicts the level of smart meter implementation in Europe in 2010.

Smart Meter operation depends on the network architecture and protocols. Lack of standardization in communication protocols leads to problems of interoperability.

Neha Vikash explains: “Manufacturers, utilities, network companies, ICT firms, retailers and remote monitoring and automation companies await standardisation in communication protocols. The standardisation is expected to come into effect by 2012, following which the industry is expected to grow rapidly. The scenario in Europe is that some countries are bordering on completion (e.g. Denmark and Finland), while some are slow to realize nationwide meter deployment. Some countries have no mandatory regulations. The contrast in the level of smart meter deployment between various European states begs the question as to who should be responsible for smart meter penetration: the government or the industry”.