Intelligent measuring systems | Germany is not lagging behind: Why our smart meters are international role model

Smart metering systems: Germany's strategic advantage in digital electricity supply

Germany is on the cusp of a comprehensive transformation of its energy supply. At the heart of this digital revolution is the nationwide rollout of intelligent metering systems, commonly known as smart meters. These systems herald an era in which electricity is no longer simply consumed passively, but intelligently controlled and optimized. For a long time, Germany was criticized for its supposedly hesitant approach to smart meter implementation, while other European countries like Sweden, Denmark, and Italy have been relying on this technology for years. However, what at first glance appears to be a disadvantage, upon closer inspection, reveals itself to be a strategic advantage that could catapult Germany to the forefront of a new generation of smart grids.

Experts emphasize that the German approach, although launched later, offers crucial features and flexibility that many early systems lack. A smart metering system is far more than just a digital electricity meter. It is the core of a highly secure, bidirectional communication infrastructure that connects consumers, producers, and grid operators. The highest security standards, certified by the Federal Office for Information Security (BSI), play a central role in ensuring data integrity and privacy. This technology paves the way for dynamic electricity tariffs, optimizes energy management in homes and businesses, and enables future-oriented applications such as bidirectional charging of electric vehicles, where your EV becomes a mobile energy storage device.

With a clear rollout roadmap, which will become mandatory for many households and facilities from 2025 onwards, and an intelligent cost distribution system, Germany is preparing for a profound transformation in the energy market. This includes everything from the technical foundations and communication channels to the potential for a resilient and climate-neutral energy supply.

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A delayed start with a strategic advantage

While other European countries have been using smart meters for years, Germany lagged far behind. In Sweden, Denmark, and Italy, almost every household is equipped with a smart meter, while in Germany, currently less than five percent of all households have this technology. This delay, however, was not an oversight, but part of a carefully considered plan.

Ingo Schönberg, deputy chairman of the Forum Network Technology/Network Operation (FNN) within the VDE (Association for Electrical, Electronic & Information Technologies), sums it up perfectly: Germany may be late to the game, but it's bringing the right solutions. While other countries have been able to monitor consumption for some time, they lack the flexibility and controllability that the German system will offer.

The technical basis: More than just an electricity meter

An intelligent metering system consists of significantly more than a conventional digital electricity meter. At its core is the smart meter gateway, a highly secure communication unit that connects the meter to various systems. This combination of modern metering equipment and gateway enables bidirectional communication between consumers, producers, and grid operators.

The Federal Office for Information Security (BSI) plays a central role in this process. It not only certifies smart meter gateways according to the highest security standards, but also continuously develops the technical requirements. Currently, five independent manufacturers possess all the necessary certifications for the smart meter rollout.

Of particular importance are the so-called control boxes or CLS modules (Controllable Local Systems), which enable precise control of energy generation plants and consumption devices. These components have recently been certified by several manufacturers and allow both stepwise control via relays and stepless control via the EEBus standard.

Communication via various channels

Data transmission occurs via multiple communication channels. The backbone is a dedicated fiber optic network that connects all network connection points. Two main options are available for the smart meters in households: mobile networks and the 450 MHz frequency band, which is specifically reserved for the energy sector.

The 450 MHz network offers particular advantages due to its long range and good building penetration. This makes it possible to reliably reach smart meters even in basements or hard-to-reach locations. The Federal Network Agency has allocated these frequencies to 450connect GmbH until 2040, which has been driving the development of the nationwide network since 2021. The 450 MHz radio network is expected to be available nationwide from 2025.

The rollout roadmap: Structured introduction by 2030

The legal framework for the smart meter rollout was established with the Act on Restarting the Digitization of the Energy Transition. From January 2025, consumers with an annual consumption of at least 6,000 kilowatt-hours are required to install a smart metering system. The same applies to operators of generation plants with an installed capacity of seven kilowatts or more, as well as to controllable consumption devices.

The rollout program follows an ambitious timeline: By the end of 2025, 20 percent of customers subject to mandatory installation requirements should already be equipped with smart metering systems, which corresponds to over 2.5 million devices. By 2030, the rollout should be completed at least 95 percent of the time. Current figures from the Federal Network Agency show that by the end of 2024, 13.91 percent of customers subject to mandatory installation requirements had already been equipped with a smart metering system.

In addition, since 2025 all consumers have had the right to voluntarily request a smart metering system, regardless of their consumption. The metering point operator must comply with this request within four months.

Cost transparency and fair distribution

Since 2024, the costs for smart metering systems have been shared between consumers and grid operators. For most households, this amounts to annual costs of €20 (gross), while for controllable appliances such as wallboxes or heat pumps, the cost is €50 per year. Any costs exceeding this amount are borne by the grid operator, who benefits from improved grid status information through the smart metering systems and can optimize its grid operations.

However, the Federal Ministry for Economic Affairs and Climate Action is planning cost increases for voluntary installations. The one-time installation costs are set to rise from €30 to €100, and the annual operating costs by an additional €30. This increase has drawn criticism from consumer protection groups, as it could make participation in the energy transition less attractive.

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Flexibility through intelligent control

A key advantage of the new technology lies in its flexibility. Instead of direct interventions in individual systems, the system relies on defining corridors at the grid connection point. Within these upper and lower limits, end consumers can use or feed in their electricity according to their own needs. Control interventions only occur if these limits are exceeded.

This approach avoids the need to directly switch on private solar systems or wallboxes. Instead, bundling larger networks ensures local balancing before intervention occurs at the medium and high voltage levels. Once 80 percent of consumption points are reached, the remaining fluctuations can be balanced.

Modern control technology also allows for adjusting the output of production plants instead of shutting them down completely. The control limit for generation plants was raised from the original two to seven kilowatts to reduce the burden on smaller residential systems.

Bidirectional charging and vehicle-to-grid

A particularly groundbreaking development is the bidirectional charging of electric vehicles. This technology, also known as Vehicle-to-Grid (V2G), enables electric cars not only to charge but also to feed electricity back into the grid when needed. This transforms the vehicle batteries into mobile energy storage units that can stabilize the power grid.

Bidirectional charging can absorb excess energy from renewable sources and release it again when needed. This contributes to grid stability and can reduce the costs of electric mobility. Although the technology is already available, currently mainly Asian vehicles with CHAdeMO connectors are equipped for it.

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Dynamic electricity tariffs: Prices follow the supply

With the introduction of smart metering systems, dynamic electricity tariffs are also becoming a reality. Since 2025, all energy suppliers have been required to offer such variable tariffs. These adjust hourly to the prices on the electricity exchange and allow consumers to benefit from periods of lower prices.

Dynamic tariffs work particularly well in combination with smart metering systems, as these enable timely recording and billing of consumption. Consumers can strategically shift their electricity consumption to times of lower prices, for example when charging electric cars or operating energy-intensive appliances.

Prices vary considerably depending on supply and demand. On sunny and windy days with high renewable energy production, prices can be very low or even negative, while they rise significantly when demand is high. These price signals help to better align consumption and generation.

Security and data protection are key priorities

Germany places particular emphasis on the security of smart metering systems. The BSI (Federal Office for Information Security) has developed comprehensive technical guidelines and certifies all components according to the highest cybersecurity standards. The smart meter gateways have standardized, integrated security modules that ensure trustworthy communication.

An important aspect is that there is no connection to the local IT system. Communication takes place via separate, secure channels to protect user privacy. The system is designed so that various associations are involved in its development and security.

Smart Grid and medium voltage level

The control of the smart grid primarily takes place at the medium and high voltage levels. Modern sensor technology makes it possible to intelligently monitor and control these grid levels as well. Innovative solutions such as integrated current and voltage sensors for medium voltage can be easily retrofitted into existing local grid substations.

These sensors continuously record network parameters and enable automated network monitoring. They form an important building block for future smart grids, which are characterized by intelligent systems for the recording, analysis, control, storage, and safe transmission of electricity.

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Blackout resistance and crisis resilience

A particular focus is placed on the system's resilience to blackouts. The Metering Point Operation Act stipulates that metering point operators can be obligated to use an uninterrupted, blackout-proof telecommunications connection. This is crucial for system stability, as the smart metering system is increasingly responsible for controlling decentralized systems.

The concept distinguishes between blackout resistance and blackout robustness. While blackout resistant systems continue to function even during a power outage, blackout robust systems are controllable again a few minutes after the mains voltage is restored. For most customer installations, a blackout robust design is considered sufficient, as it is significantly more cost-effective.

International role model

Although Germany started late, its smart meter system is becoming an international model. The Netherlands will implement a nearly identical system from 2027. While they are phasing out their existing net metering system, they are basing their approach on the German solution for intelligent metering systems.

A comparison across Europe reveals that different countries have chosen different approaches. Italy was a pioneer, introducing smart meters as early as 2001. Sweden also achieved near-complete coverage. However, these early systems focused primarily on consumption monitoring and did not offer the comprehensive control options of the German system.

Energy management for households and businesses

Smart metering systems enable a completely new approach to energy management for private households and businesses. By recording electricity consumption in detail, users can optimize their consumption patterns and save costs. The systems not only display current consumption but also provide a breakdown over different time periods.

It becomes particularly interesting when combined with decentralized generation systems such as photovoltaic systems. Households become so-called "prosumers" that both consume and produce electricity. The smart metering system automatically coordinates generation and consumption and optimizes the feed-in to the grid.

The role of fiber optic infrastructure

Fiber optic infrastructure plays a crucial role in smart metering. High-performance fiber optic networks provide the necessary bandwidth and transmission speed for real-time communication of intelligent metering systems. With the highest capacities, lowest latencies, and virtually complete immunity to electromagnetic interference, fiber optics is the ideal transmission technology.

Some energy providers are already using their own fiber optic networks for smart meter connections. This enables state-of-the-art, bidirectional data transmission without additional investment in the communications infrastructure. Deutsche GigaNetz, for example, is investing €1.5 million in retrofitting its distribution points with smart meters and solar panels.

Future prospects and potential

The smart grid is considered one of the key technologies for Germany's energy transition. It enables the optimal integration of renewable energies, which already cover 56 percent of Germany's electricity demand. The intelligent grid can react to the weather-related volatility of solar and wind energy and utilize it more efficiently.

The system's flexibility enables new business models to emerge. Energy companies can offer innovative services, and households with their own electricity generation can participate directly in the energy market. Energy management for businesses is also being revolutionized, as intelligent control systems help save energy and control costs.

The German government is massively promoting the expansion of smart grids. The goal is to increase the share of renewable energies in electricity consumption to at least 80 percent by 2030 and to achieve complete climate neutrality by 2045. The smart grid is an essential component for achieving these ambitious goals.

A well-thought-out path to the energy future

Germany may have started the rollout of smart metering systems later than other countries, but this apparent disadvantage is proving to be a strategic advantage. The German system offers not only consumption monitoring but also comprehensive control options that enable a flexible and efficient energy sector. With the highest security standards, sophisticated technology, and a clear rollout plan, Germany is poised to take the leap into a digital energy future that is attracting international attention and is already inspiring imitators.

Smart metering systems are more than just modern electricity meters – they form the basis for a completely new energy system that can respond flexibly to the challenges of the energy transition. From dynamic electricity tariffs and bidirectional charging to the integration of decentralized generation plants – the smart grid is making Germany fit for a sustainable energy future.

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