Market Research Report
Central & Eastern Europe and Turkey Smart Grid: Market Forecast (2017 - 2027)
|Published by||Northeast Group, LLC||Product code||268974|
|Published||Content info||262 Pages
Delivery time: 1-2 business days
|Central & Eastern Europe and Turkey Smart Grid: Market Forecast (2017 - 2027)|
|Published: September 27, 2017||Content info: 262 Pages||
Countries in the Central & Eastern Europe (CEE) region are leaders for their smart grid and smart metering potential among emerging market nations. By 2027, ten of the 12 key countries in this study (all except for Croatia and Lithuania) will have completed smart meter deployments of at least 80% and many will have deployed other advanced smart grid infrastructure such as distribution automation, home area networks, distributed renewable sources of generation, and electric vehicle charging infrastructure. Overall, the smart grid market represents $28.6 billion of investment over the next ten years.
Volume III of this study covers 12 CEE countries in depth, as well as six additional countries. It includes the 11 countries in Central & Eastern Europe that are now part of the European Union but until the early 1990s were Communist states, as well as Turkey, Albania, and the remaining former Yugoslav countries. These countries have all undergone radical industry restructurings over the past two decades, and in some cases are still in the process of full liberalization. In most countries, the state still plays a role in one or more segments of the electricity industry. Overall power infrastructure is in many cases outdated and not compatible with a fully integrated European power market. The CEE electricity market is therefore undergoing changes, which present utilities with opportunities to invest in smart grid infrastructure in the process of upgrading their grids.
Most of these countries must also meet EU regulations, and non-EU countries are following similar guidelines. EU Directive 2009/72/EC requires that all EU states conduct a cost-benefit analysis (CBA) for smart metering and that, if reaching a positive outcome, countries deploy smart meters to 80% of households and businesses by 2020. Most Western European countries have found net positive benefits from smart metering and launched smart metering programs to meet (or attempt to meet) EU targets. The case is less clear in the CEE region. Many countries have not officially decided, and with just three years to go, most CEE countries are expected to miss the EU target. But the EU is encouraging countries with negative CBAs to re-assess their smart meter potential in the next few years as costs come down and underlying conditions improve. Therefore, it is still likely that most CEE countries will begin large-scale deployments in the next few years.
Beyond regulations, the CEE region's core market conditions support smart meter deployments. Per-capita electricity consumption is higher than in most other emerging markets. Consumption is lower than in Western Europe but is growing faster. Meanwhile, the CEE region has stronger historic and economic ties with Russia, and recent aggressiveness from Russia has increased the importance of energy independence in the region. Finally, T&D losses and power outages are a much larger concern than in Western Europe. In some CEE countries, utilities can justify smart meter deployments through immediate loss reduction benefits, with other benefits serving as an added bonus.
The CEE region also benefits from knowledge spillovers from Western Europe. Many utilities in CEE are owned by French, German, and Italian utilities that already have experience in deploying smart grid infrastructure. Almost all of the major smart grid vendors already have a presence in CEE countries, giving them a better grasp of regulatory conditions. EU-based vendors in particular face few barriers due to the common market. Additionally, many local vendors are already active across the region, which will help drive new market segments.
Most CEE countries have not yet transposed EU smart metering regulations into national law or accepted the EU smart meter mandate. Therefore, some uncertainty still remains in the market. Still, CEE countries have conditions that support smart grid development, willing stakeholders, and well-developed pilot projects-including large-scale rollouts in some cases. The CEE smart grid market is poised for significant near-term growth.
Key questions answered in this study: