Europe the Front-runner at Copenhagen in the Smart Grid Space, Asserts Frost & Sullivan

LONDON, December 9 - The increasing cost of electricity and the perennial need for efficient
energy management solutions have given rise to smart meters. Their ability to
communicate energy usage data in real time opens up numerous lucrative market
opportunities.

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"Smart meters form an integral part of a smart grid," notes Frost &
Sullivan Research Analyst Vikas Ravindran. "Moving forward, complete
automation of the grid is set to become the norm with real-time information
at the customers' fingertips."

New analysis from Frost & Sullivan (www.energy.frost.com),
European Smart Meter Markets, estimates the markets to reach US$11 billion by
2015. The study covers automated meter infrastructure (AMI), IT systems and
communication technologies.

Members of the Smart Green Grid Initiative (SGGI), which includes the
heavyweights General Electric, Landis+Gyr, Echelon and Google to name a few
are expected to hold smart grid focussed events at the UN talks in
Copenhagen. Europe being a front-runner in the smart grid space with Italy
leading the way since 2005 has seen continuous development. Denmark currently
generates close to 20 percent of its electricity from wind power. It has
developed the most intelligent grid to manage this clean power load. The
government is also simultaneously working on strategic alliances with major
firms towards building better infrastructure for smart grid. The country is
sure to act as an important case study for most of the investors and venture
partners.

Smart meters represent the first step towards energy management. The
European smart meter markets have experienced significant progress over the
last few years when compared to those in the rest of the world, and they are
now moving towards total grid automation.

However, challenges such as interoperability and data security are
restraining the markets' growth. Another issue is the lack of clarity
regarding their business case, which causes utilities to delay investments
and large-scale deployments.

"Communication is the backbone for a smart grid operation and to have
interoperable solutions is of paramount importance," explains Ravindran. "A
system which runs on multiple standards is one of the best ways to
distinguish one's product over the competition."

As competition intensifies, it is important to have high product
differentiation. The business case would need to traverse the range from
product- to service-based benefits, thereby achieving a competitive edge.

"Smart meter manufacturers need to move from a product- to a
services-based model," advises Ravindran. "Investments in meters alone will
not yield higher returns. In order to rapidly gain market share,
manufacturers need to customise their entire AMI solution for consumers."

If you are interested in more information on this study, please send an
e-mail to Chiara Carella, Corporate Communications, at
chiara.carella@frost.com , with your full name, company name, title,
telephone number, company e-mail address, company website, city, state and
country.

European Smart Meter Markets is part of the Energy & Power Growth
Partnership Services programme, which also includes research in the following
markets: European Nuclear Power Sector, Strategic Assessment of the European
Market for Alternative Fuel Gensets, Assessment of Opportunities in European
Micro CHP Markets and Cogeneration in Europe - A Strategic Assessment. All
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                          European Smart Meter Markets
                                      M448

    Contact:
    Chiara Carella
    Corporate Communications - Europe
    P: +44-(0)-20-7343-8314
    M: +44-(0)-753-3017689
    E: chiara.carella@frost.com

www.frost.com

Chiara Carella, Corporate Communications - Europe of Frost & Sullivan, P: +44-(0)-20-7343-8314, M: +44-(0)-753-3017689, chiara.carella at frost.com