An assessment of the Italian smart gas metering program

The introduction of smart metering is one of the core elements in recent European policies targeting environmental sustainability and competitiveness of energy markets. Following the roll-out of smart electricity meters, in 2008 the Italian regulator designed an ambitious deployment program also for...

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Bibliographic Details
Published in:	Energy policy 2013-09, Vol.60, p.714-721
Main Authors:	Di Castelnuovo, Matteo, Fumagalli, Elena
Format:	Article
Language:	eng
Subjects:	Applied sciences Automatic meter reading Cost Cost benefit analysis Cost control cost effectiveness Economic data Electric power Electricity Energy Energy conservation Energy economics Energy efficiency Energy industry Energy policy Energy saving environmental sustainability Exact sciences and technology Fossil fuels and derived products Gas General, economic and professional studies issues and policy Italy Markets Saving Smart gas meters Studies Sustainability Sustainable development Western Europe
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Summary:	The introduction of smart metering is one of the core elements in recent European policies targeting environmental sustainability and competitiveness of energy markets. Following the roll-out of smart electricity meters, in 2008 the Italian regulator designed an ambitious deployment program also for smart gas meters, that was recently modified in both scope and timing. This paper assesses Italy's original and current deployment plans, with a specific focus on the results of its cost–benefit analysis. In light of the evidence derived from the literature, we observe that the case for the roll-out of smart gas meters in Italy was not supported by a strong emphasis on energy savings but rather focused on increasing efficiency of the Italian gas market; in this respect, we argue that options other than smart gas metering should also be considered. Moreover the Italian cost–benefit analysis, which mostly dealt with the potential cost savings for distributors and suppliers, led to ambiguous results in terms of net present values; thus, we believe that an updated assessment would be extremely useful. Finally, in terms of technological choices, our analysis positively evaluates the regulator's recent proposal to consider a dual-fuel solution for the mass market deployment. •This paper assesses Italy's original and current deployment plans for smart gas meters.•The plan was not supported by a strong emphasis on energy savings.•A focus on increasing efficiency of the Italian gas market appears only partly justifiable.•The business case for adopting smart gas meters should be updated.•Our analysis positively evaluates the a dual-fuel solution for the mass market.
ISSN:	0301-4215 1873-6777