Smart Grids: Energy Rethink Requires Intelligent Electricity Networks

Abstract

An efficient grid infrastructure is a prerequisite for speeding up the integration of renewable energies into the electricity supply. As such, the German government’s energy concept agreed in autumn 2010 is pursuing the right approach. However, while the establishment of a European supergrid is likely to develop its own momentum, smart grids cannot achieve market success without stronger political support – whether that be via direct investment subsidies or statutory directives. In fact the potential savings for households often probably amount to a few euros, which calls for the ordinary citizen to be very passionate about the issue given the expenditure required.

Keywords: Energy, networks, smart grid, telecommunications, innovation, technology

JEL Classification: O3, O30, O31