EMH Metering

2025-10-01 VDE dialog

Smart Meters ROLLOUT: Season 1

For a long time, it looked as if the smart meter rollout in Germany would never get off the ground. Now things are speeding up. The thorough planning seems to be paying off. The smart grid is within reach. But not all obstacles have been removed yet.

By Eva Augsten

Streaming platforms have mastered the art of keeping us hooked with their series. Just when you think the story is wrapping up, a twist appears out of nowhere. Germany’s smart meter rollout has felt a lot like that. Here’s a recap of the episodes so far and a teaser for the second season.

Episode 1: The EU comes up with a plan

Europe is rapidly expanding wind and solar power. Green electricity is getting cheaper – but only when the wind blows or the sun shines. To help consumers benefit from low-price periods, the EU decided in 2009 that 80 percent of households in member states should have smart meters by 2020.

The Swedish government had already decided to roll out smart meters in 2003 and had completed the process by 2009. In Italy, around 36 million smart meters had been installed by 2011.

Episode 2: Is it worth it?

In Germany, bearing in mind issues such as critical infrastructure, consumer protection, data security and 800 distribution network operators, it is easy to reach the conclusion that smart meters are a complex issue. And is it even worth the effort? In 2013, Minister for Economic Affairs Phillip Rösler from the FDP looks into the matter. The verdict is that smart meters should only be installed in certain households – for example, where consumption exceeds 6,000 kWh or where solar systems feed electricity into the grid. This means a dramatic reduction in the number of smart meters that are required.

Episode 3: Better safe than sorry

When it comes to critical infrastructure, the German state prefers to play things extra safe. The Federal Office for Information Security (BSI) is therefore tasked with developing a strict security standard together with all parties involved. This includes a strict division of tasks for the hardware: the modern metering system does the counting, the smart meter gateway takes care of communication. The first part of the security regulations becomes available in February 2015. Frank Borchardt, Senior Project Manager at VDE FNN sums it up: “The smart meter gateways are protected at intelligence service level, better than any bank account.”

An intelligent measuring system (iMSys for short): the modern measuring unit is a digital electricity meter with additional functions. The smart meter gateway is connected to a standardized interface.

| Dietrich Schmidt

Episode 4: The law enters the plot

The Minister for Economic Affairs, now Sigmar Gabriel of the SPD, launches the Metering Point Operation Act. This gives rise to a new application for smart meters, allowing grid operators to use them to manage certain consumers and producers in the event of imminent grid overloads. There’s a catch, though: the devices must first be certified according to the BSI specifications. Only when three devices have completed this process will the BSI give the go-ahead for the rollout.

Episode 5: A plot twist

The BSI certification process proves to be a marathon. It is not until 2020 that three manufacturers make it through.

The BSI gives a green light – but the rollout is interrupted shortly afterwards. A competitor of the certified manufacturers sees itself at a disadvantage and takes the matter to court, which orders the rollout to be halted in March 2021 in expedited proceedings. Just over a year later, the BSI has drawn up a transitional regulation. However, with the main proceedings still underway, metering point operators are uneasy and decide to wait and see.

It is difficult to say how quickly things would have progressed without this incident, as COVID-19, supply chain problems and a shortage of skilled workers were also slowing down the global economy.

Episode 6: The reboot

The Minister for Economic Affairs – now Robert Habeck from the Green Party – wants to pick up the pace and presents the “Act to Restart the Digitalization of the Energy Transition”. This withdraws the requirement to have at least three competing manufacturers at the start. There is a new roadmap – stipulating that 20% of the mandatory installations should be achieved by 2025, 50% by 2028 and 95% by 2030. In May 2023, it seems that the rollout can really begin.

In this episode, grid operators also see one of their wishes granted. In 2024, Section 14a of the Energy Industry Act gives them permission to prevent local grid overloads by restricting wallboxes or solar power feed-ins if necessary.

Frank Borchardt, Senior Project Manager at VDE FNN

| VDE FNN

Episode 7: Flashback and a change of perspective

In the penultimate episode of season 1, the smart meter rollout enters the home straight. By the end of 2024, almost 14 percent of the required devices have been installed; by the end of March 2025, the number hits 15 percent mark and climbing.

Looking back, we can see why other countries were so much faster. Take Italy, for example, where the grid operator Enel Distribuzione began installing smart meters in 2001 to prevent rampant electricity theft. In 2017, the country had to switch to a new generation of meters because the previous devices did not comply with EU data protection regulations. Sweden also rolled out new smart meters in 2020. The devices initially installed sent consumption data only once a month – far too infrequently to meet the EU’s requirements for “near real-time” communication.

The EU is now using the German standards for security and compatibility as a model in its Cyber Resilience Act. Germany may have taken longer, but is now making greater strides. “We solved many problems on paper before we even picked up the first screwdriver,” Borchardt concludes.

Episode 8: The cliffhanger

The rollout is moving, but challenges remain. While most large network operators are making rapid progress, many of the smaller ones are struggling. Often they simply lack the staff to handle organization or installation.

In addition, smart meter gateways can receive information about the market and grid, but cannot yet send control commands to wallboxes, heat pumps or inverters. There are several options here. One possibility is an additional piece of hardware called an FNN control box. Standards have been defined and the first devices have been certified, but there is no widespread rollout as of yet. If this happens quickly, grid operators will be able to manage consumers and generators from 2026.

While the grid operator specifies the maximum values for feed-in or withdrawal at the connection point, “home energy management systems” (HEMS) are responsible for actually controlling wallboxes, heat pumps or inverters. Such HEMS are already available from many manufacturers. Almost all of them are connected to a cloud. Weather data, generation profiles, market prices and updates buzz through the ether. The smart meter gateway is secured like a safe – but the back door is still wide open. VDE FNN and other organizations have already addressed the issue, but there are no clear regulations yet. So there is plenty left to do. Therefore, what grid and metering point operators want above all else at the moment is to work in peace – an almost audacious wish in these times.

What’s next?

Will the 2026 rollout milestones be met? Or will new political ambitions throw another wrench in the works? Will it be possible to get the customers on board – or will electric vehicle drivers slam the door on the installers because they fear that the grid operator will cut their power off? Will it be possible to eliminate all the weak points in the many different energy management systems? What role do fear-mongers and fake news play in this?

A good plan is worth a lot, but you just can’t plan everything ahead. So grab a bowl of popcorn. Season 2 of “Smart Meter Rollout” promises to be just as exciting.