An additional 100 million smart meters will be deployed across the European Union by the end of 2016, according to a study released by Boston-based GTM Research on Jan. 3. The experts say that the strong momentum behind the European smart grid revolution has been fueled by a mandate that 80 percent of EU households must have meters by 2020.

That directive was issued by the European Technology Platform for Electricity Networks of the Future, also called SmartGrids ETP, a Brussels-based group founded in 2005 for the purpose of promoting a vision and strategy for the future development of European electricity networks. SmartGrids ETP describes itself as “the linking glue” among EU-level related initiatives.

Under the mandate, each EU member nation has the individual authority to decide on the most efficient way to arrive at the 80 percent deployment target, but the goal is clear. As a result, individual countries within the EU will be aggressive in deploying smart grid pilots in the short-term.

Market conditions in 2012 also are favorable for a European smart meter spurt, maintains GTM Research. The metering market is due for a slowdown in the United States, now that the stimulus dollars have been allocated. Therefore, “Europe arguably [will be] the hottest market” for the next few years (although, of course, the industry should never underestimate China).

An estimated 42.3 million smart meters are installed in the EU today, mainly as the result of large rollouts in Italy, Sweden, Finland and Denmark. Although Europe is still reeling from financial turmoil, metering plans remain in place for many countries. In 2011, the French government announced plans for 35 million smart meters; and the United Kingdom has been aggressive about its metering goals, announcing contracts worth up to $7.5 billion. Indeed, the U.K. is gearing up to deploy 40 million dual (gas and electric) smart meters and the government also is encouraging energy efficiency retrofits.

However, it is unclear what the smart meter conversion will mean for household customers, according to Geert-Jan van der Zanden, author of GTM Research’s report, Smart Grid in Europe, 2012-2016. He notes that residential demand response programs will not have the same appeal in Europe as they do in North America, because average electricity usage in EU households is less than half what it is in the United States. But, he says, that doesn’t mean there isn’t fat to cut. Many Europeans don’t even see accurate monthly bills, and offering differentiated pricing and feedback on usage could generate savings.

The figure for Europe is good news for meter makers and their suppliers. It is also a more bullish prediction than some others have made. But van der Zanden forecasts that deployments in just a few European nations– France, Spain, Germany, and the U.K.—easily could boost the metering tally to 100 million by 2016.

 The GTM report offers strategic insight into the key drivers and barriers for growth in the region and examines the latest investment trends, providing a forecast of the market for AMI (advanced metering infrastructure), DA (distribution automation), electric vehicle (EV) integration technologies, and utility enterprise (IT systems). In addition, the report profiles the smart grid integration models and pilot projects of Europe's most active utilities, including EDF, ENEL, E.ON (News - Alert), GDF Suez, RWE, Iberdrola, Endesa, Centrica, Vattenfall, EDP, Dong Energy and Fortum. The Smart Grid in Europe, 2012-2016 also analyzes and compares smart grid positioning in Europe with that of utilities in the United States., Japan, and China.