Smart electricity grids: A very slow deployment in the EU

The Royal Institute for International Relations is an independent think-tank based in Brussels. Its interdisciplinary research is conducted in a spirit of total academic freedom. Drawing on the expertise of its own research fellows, as well as that of external specialists, both Belgian and foreign, it provides analysis and policy options that are meant to be as operational as possible.As of early 2015, the European electricity sector was forecast to have to deal with a huge challenge in the following decades. On the one hand, electrical power was increasingly substituted for other forms of energy. It had been forecast that electricity demand would increase in the future (notably because of new needs in transport and heat sectors), although it was stagnant at the time, mainly because of the economic crisis. Unless a major alternative energy source was discovered, electricity would become the central energy pillar in the long term. On the other hand, electricity production remained uncertain and was dependent on numerous factors: the growth of renewable energy and decentralized energy, the renewal of old power generation capacities, increased external dependency, CO2 charges, etc. This increased the demand for electricity networks that were more reliable, more efficient, and more flexible. Europe’s electricity networks of the time were ageing, and, as indicated by the International Energy Agency, many of them needed to be modernized or replaced in the following decades. Finally, the growing impact of energy trading also needed to be taken into account.

The paper begins with a description of the EU definition of the term ‘smart grid’ and of the body in charge of advising the Commission. The EU legal framework applicable to smart grids is also detailed. It is a rather complex domain, connected to various regulations. The paper then examines three critical factors in the development of smart grids (and smart meters as a precondition). Standardization is quite complex, but absolutely essential. Innovation is not easily put into action. Finally, as digital insecurity worsened dramatically in the years leading to 2015, the security of electricity networks, and especially their multiplied electronic components, was set to become increasingly important. Lastly, the paper provides a concise overview of the progress of smart grids in the EU before 2015. In a nutshell, the conclusion is that progress was quite slow, many obstacles remained, and, given the appearance of many new regulatory problems, it would be useful to organize a review of the present EU strategy.

ESO: Key Source: Website: Smart Grids and Meters http://www.europeansources.info/record/website-smart-grids-and-meters/

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