London, United Kingdom: According to the latest report from GlobalData, a research and consulting firm, the European Union (EU) is aiming to replace at least 80% of electricity meters with smart metering systems by 2020, which could reduce emissions across European states by up to nine per cent and cut annual household energy consumption by similar amounts.

The company’s report states that the Security of Electricity Supply (2005/89/EC) directive kick-started the EU’s drive towards smart metering, declaring that member states should take appropriate measures to safeguard the balance between electricity demand and generation-capacity availability. Following this, the company said, the EU energy package came into force in September 2009, which aimed at producing an integrated Europe-wide energy market that would encourage the adoption of smart grid technology.

The company added that a number of social and economic benefits will also come about with the introduction of smart grids, such as creating a huge number of new jobs and new electricity markets.

“Smart grids facilitate the incorporation of renewable energy sources into the power system in a stable manner,” said Harshavardhan Reddy Nagatham, GlobalData’s Analyst covering Power. “This will help many countries to achieve their targets and meet domestic power requirements using clean power sources.”

The use of smart grids, he explained, will enable customers to purchase cleaner power with lower carbon emissions and receive data on when it is least expensive to use electricity, allowing them to adjust their usage accordingly. “This will improve the utilisation of existing power plants and reduce the amount of fossil fuel capacity required, limiting harmful emissions,” he added.

Furthermore, Nagatham said: “Stakeholders will be able to create niche markets using distributed generation, storage, demand response and other programs and services, which will lead to new opportunities for revenue generation. In the long term, with the implementation of advanced meter infrastructure, demand response programs and customer side systems, savings through electricity systems will increase, benefitting stakeholders.”