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Second-generation smart meter roll-out in Italy: a cost–benefit analysis

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  • Carlo Stagnaro

    (Istituto Bruno Leoni)

Abstract

Between 2001 and 2011, Italy deployed about 36.7 million smart meters. As the older meters approach the end of their 15-year long life, a campaign has been started to replace them with second-generation smart meters. This paper performs a cost–benefit analysis of the roll-out program, considering both the costs and the potential benefits (including a more efficient use of energy, load-shifting, and the reduction of CO2 emissions). Benefits are likely to exceed the costs, but that depends on the actual use of the meter-generated data, the cost of carbon allowances, and the discount rate.

Suggested Citation

  • Carlo Stagnaro, 2025. "Second-generation smart meter roll-out in Italy: a cost–benefit analysis," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 52(1), pages 201-220, March.
    • Handle: RePEc:spr:epolin:v:52:y:2025:i:1:d:10.1007_s40812-024-00324-1
    DOI: 10.1007/s40812-024-00324-1
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    References listed on IDEAS

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    1. Silvia Vitiello & Nikoleta Andreadou & Mircea Ardelean & Gianluca Fulli, 2022. "Smart Metering Roll-Out in Europe: Where Do We Stand? Cost Benefit Analyses in the Clean Energy Package and Research Trends in the Green Deal," Energies, MDPI, vol. 15(7), pages 1-20, March.
    2. Mack, Birgit & Tampe-Mai, Karolin, 2016. "An action theory-based electricity saving web portal for households with an interface to smart meters," Utilities Policy, Elsevier, vol. 42(C), pages 51-63.
    3. Feuerriegel, Stefan & Neumann, Dirk, 2016. "Integration scenarios of Demand Response into electricity markets: Load shifting, financial savings and policy implications," Energy Policy, Elsevier, vol. 96(C), pages 231-240.
    4. Lee, Dasom & Hess, David J., 2021. "Data privacy and residential smart meters: Comparative analysis and harmonization potential," Utilities Policy, Elsevier, vol. 70(C).
    5. Kris Kessels & Carolien Kraan & Ludwig Karg & Simone Maggiore & Pieter Valkering & Erik Laes, 2016. "Fostering Residential Demand Response through Dynamic Pricing Schemes: A Behavioural Review of Smart Grid Pilots in Europe," Sustainability, MDPI, vol. 8(9), pages 1-21, September.
    6. Michalec, Aleksandra & Hayes, Enda & Longhurst, James & Tudgey, David, 2019. "Enhancing the communication potential of smart metering for energy and water," Utilities Policy, Elsevier, vol. 56(C), pages 33-40.
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    More about this item

    Keywords

    Smart meters; Smart grid; Regulation; Competition; Power systems;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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