Smart Grids (Communication)

By means of modern information and communication technologies (ICT) “smart grids“ are to coordinate the behaviour of all grid users in order to ensure an economically efficient power system. The Commission wishes to draw up “appropriate measures” to expedite the set-up of such grids by the end of 2011.

cepPolicyBrief

With smart grids, the demand for electricity can be better coordinated to align with power generation. The standardisation mandated by the Commission helps prevent expensive parallel developments. Many electricity consumers, however, will probably only switch to cheaper prices in exchange for greater flexibility in their consumer behaviour if data protection issues are dispelled. Investment costs should not be covered by regulated tariffs of network operators but through the profits power producers make from selling electricity.