Smart Grid comes costly for households in Germany

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For now, the consumer bears all the cost but barely any benefit from the smart meter revolution. Two studies, as analyzed by the magazine Spiegel, calculated that a German household could save electricity costs of 21.50 euro per year, or 9 to 42 euro. The federal regulator (Bundesnetzagentur) is a bit more optimistic and expects savings of 12 to 50 euro per year.

To get these savings, consumers need to pay a smart meter service fee to their utility company of 60 to 240 euro. The online meter itself costs 35 to 100 euro. The installation of smart meters can even increase electricity consumption, if the household didn't have an always on internet connection already: A DSL internet connection consumes more electricity than an energy efficient German fridge. The top 5 most energy efficient fridges in a test are all "made in Germany", with the best model by Miele only using 76 kilowatt hours per year, and a fridge with ice box, also from Miele, using just 110 kWh. The fridge on place 8 from Siemens uses 98 kWh - and thus less than the 105 kWh that are used by devices that use 12 watts constantly, like a DSL-modem and a wireless router.

These recent experiences in Germany are similar to the disappointment of consumers in other countries, such as the United States. The much hyped smart grid is still in an early phase, and while it seems realistic that it could make the electricity grids gradually more efficient by allowing over-capacities to be reduced, and expensive peak-production to be shorter and lower, it will take many years to realize these benefits and eventually filter through to the consumers. This reality should be reflected in the communications about the smart grid advantages, but especially in less aggressive smart meter installation programs by utilities and governments.