Smart meters provide real-time data that helps both utilities and consumers reduce energy waste, cut emissions, and support the integration of renewables. In the EU, where climate neutrality by 2050 is the goal, one which cannot be reached without a just, green energy transition, smart meters are already delivering measurable benefits. They help people become more aware of their energy use, which leads to lower consumption. Studies show up to 9% less electricity use in homes with smart meters and in-home displays. This awareness also allows users to shift their usage to off-peak times, reducing the need for fossil-fuel backup plants and making it easier to use more solar and wind power.
Operational and climate benefits
For utilities, smart meters can mean fewer technical losses, and less need for manual meter readings, which cuts operational emissions and costs. They also provide the data needed for better grid management and planning, which is essential as more renewables come online and the grid becomes more complex. Companies like Iskraemeco are advancing this technology further, designing solutions that enable grid flexibility, which is crucial for the green energy transition. Additionally, their smart meters are developed according to ecodesign principles: they use less energy over their lifetime, are built for long-term use, and come with environmental product declarations so customers can understand their full impact. The environmental and climate benefits of smart meters can be calculated through so-called Scope 4—avoided emissions. This calculation methodology considers electricity savings for households from smart meters and results in CO2e avoided by the company. For example, in 2024, Iskraemeco helped avoid 3.45 million tonnes of CO2e with their smart meters.
Supporting regulation and building trust
New EU regulations like the Corporate Sustainability Reporting Directive (CSRD) are making it mandatory for companies to track and report their energy use and emissions, and smart meters make this process much more accurate and transparent. As well as complying with ever-changing regulations, the benefits of smart meters help build trust with customers and investors and demonstrate real progress on the green transition. However, this progress should be supported by customer-friendly applications and portals, which would incentivize end-users to lower their electricity use.
In summary, smart meters are are a foundation for a cleaner, flexible, more efficient, and more resilient energy system. They empower consumers, support the growth of renewables, and help utilities manage the grid more effectively, all of which are essential for decarbonization. As more countries and companies adopt smart metering, we move closer to a future with lower emissions and a healthier planet.
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Disclaimer: This is a blog space for debate where ESMIG members share their thought leadership. All opinions expressed are the author’s. The content of this article is not an official position paper endorsed by the association.