While the repercussions of the credit crunch continue to be felt in the economy, some are saying that environmental issues should be placed on the backburner.  However, as Lord Stern stated in his 2006 report on the economics of Climate Change, we are dangerously close to the gpoint of no returnh where no matter what corrective action is taken irreversible damage will have been inflicted on the environment.

If Europe is to meet its 2020 goals to both increase energy efficiency and reduce greenhouse gases by 20 percent and increase the amount of renewable energy to 20 percent of the total energy supply than tough decisions will have to be made.  The UK has set an even more ambitious goal to reduce carbon emissions by 80 percent by the year 2050.
Essential steps key to the future of a sustainable power supply must be made today even though economic circumstances are not ideal.  The UK, along with the rest of Europe, can modernise the largely antiquated power grid and liberalise its supply to create economies of scale for renewable energy while promoting energy efficiency.

The first step to upgrading the power grid to a smart grid is to install smart meters.  Smart meters give consumers a clear picture of how much energy they are consuming and how much that energy costs.  Consumers have always known that turning off a light saves energy, but with a visual display they can see exactly how much less energy is used.  Without a smart meter consumers canft be expected to make a serious attempt at controlling their energy consumption.

Utilities also stand to benefit from the two-way data flow from smart meters that will give them the ability to manage usage more efficiently and eliminate estimated billing which has plagued the industry since its inception over a century ago.

As technology continues to progress and lawmakers become more receptive to the necessary legislative changes smart meter are expected to revolutionise how the energy supply is managed around the globe.

Smart meters alone could be responsible for delivering a 10 percent reduction in energy usage according to a recent study.  Another study claimed that if supply side management techniques possible through smart metering were enacted in the EU that electricity savings equivalent to the annual consumption of Germany and Spain together could be saved.

Obviously, the potential for the smart grid is enormous.  There are many more benefits in addition to enhanced efficiency.  As renewable energy becomes more viable we need a flexible, smart system that can manage the intermittent renewable energy sources such as solar and wind power and work them in with traditional, constantly available energy.

Italy, Sweden, Spain, and the Netherlands have already acknowledged these benefits to the smart grid and have introduced friendly legislation to help get the technology rolling.

Sweden has mandated monthly utility readings which has initiated a country-wide smart meter rollout.  The French utility EDF is conducting large-scale smart meter tests with the goal to deploy 35 million of the devices, the largest project of its kind in the world.

European Parliament has also mandated the introduction of smart meters while noting the importance of a dynamic and flexible power grid.

Despite the progress, the recent decision by Europefs Energy Council not to endorse Parliamentfs provisions within the Internal Market for Electricity Directive has stymied an EU-wide smart meter mandate.

The European Commission must recognise smart metering as an essential component to the future of European energy when it maps out the implementation of the 2020 goals.

The UK has signalled that it recognises the potential of smart meters.  Gordon Brown acknowledged the savings the devices could generate in his 2004 budget and Climate Change Minister Lord Hunt committed the government to installing a meter in every home at the end of October.

However, detail is still lacking as to how a roll-out will be implemented within the deregulated British energy market and who will standardise and pay for the cost.  The government seems to be on the verge of making these decisions with the Department for Energy and Climate Change set to announce a strategy shortly.

Smart metering alone wonft account for the 2020 goals, but none of the targets will be met without a functioning smart grid built upon smart metering technology.  The UK and Europefs energy challenges for an efficient and clean future loom large amid the global economic crisis.

EDF Group
22-30, avenue de Wagram
Paris, 75382
France
http://www.edf.com

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