The Easy Path to Digitalization

July 28, 2026

Source: E & M powernews

The coalition’s decision on a “Smart Meter Light” has fueled the debate over the “right” path to digitizing the energy sector.

Even experts were surprised by the coalition committee’s announcement that a “Smart Meter Light” is intended to accelerate the digitization of the power grids and the introduction of flexible rates. In their “Program for Economic Recovery and Employment,” the CDU/CSU and SPD had proposed a “cost-effective” and streamlined version of a smart metering system. It is intended to enable customers who are not subject to the mandatory rollout to optimize their electricity bills “cost-effectively and with cybersecurity.”

In doing so, the coalition leaders took up a discussion that has been simmering for some time. However, the “Simplify Smart Metering” initiative had already made it clear last year that control processes, in particular, must take place via secure channels. “Here, we consider the gateway (the smart meter gateway as part of the smart metering system; Ed.) as a given,” representatives of the initiative emphasized in a position paper. Therefore, their approach with a “Smart Meter Light” is not, as is sometimes mistakenly claimed, in competition with the smart metering system.

Rather, the initiators are focused on a “smart, modern metering device” to implement dynamic rates more quickly and easily and to handle optional installation scenarios. In addition, grid transparency could be increased through the rapid and widespread provision of 15-minute meter readings, potentially avoiding costly grid expansion.

Nevertheless, criticism of the coalition’s decision was not long in coming. In a position paper, the Forum Netztechnik/Netzbetrieb (FNN) and the German Commission for Electrical, Electronic, and Information Technologies (DKE) oppose the introduction of a standalone “Smart Meter Light.” The organizations—both under the umbrella of the VDE—warn against slowing down the ongoing smart meter rollout with an additional technology variant. While they support the goal of accelerating the rollout, they consider the creation of parallel structures to be the wrong approach, as it would require further standardization and regulation. As an alternative to a “Smart Meter Light,” the authors point to the so-called 1:n solution, which is already enshrined in law. In this solution, multiple electricity meters are connected via a shared smart meter gateway.

The 1:n Solution as an Alternative

Filip Thon does view a simple and accelerated smart meter rollout as crucial for harnessing the full potential of flexibility in the electricity system. However, it is questionable whether a “Smart Meter Light” is actually the necessary catalyst, according to the CEO of E.ON Energie Deutschland. “After all, while a ‘Smart Meter Light’ will give more households access to dynamic rates, it won’t ensure that the flexibility offered by customers with large shiftable loads—for example, from self-generation, smart energy storage, or electric mobility—is utilized more quickly within the power system,” says Thon. An intelligent metering system is still necessary for this. However, its rollout must be “straightforward.”

In this regard, he is essentially echoing the views of Markus Meyer, Head of Regulation and Energy Policy at Enpal. Meyer had already stated last summer that it is not the type of device that causes high costs, but rather the complicated processes and system-level requirements.

Against the backdrop of the efficiency debate, a recent study conducted by the consulting firm BET in collaboration with Stadtwerke Osnabrück is also coming into focus. In it, BET examines the rollout of smart metering systems primarily from the perspective of market roles—ranging from grid operation to meter point operation and distribution, all the way to retail and end customers.

The conclusion is clear: In the short term, the greatest potential often lies not in control systems, but in the digitization of energy industry processes—such as remote meter reading, meter readings accurate to the reference date, and cross-sector reading of electricity, gas, water, and heat meters. In contrast, grid-oriented control, virtual power plants, and the marketing of flexibility are classified as strategically significant but, in the short term, are assessed as having lower added value for regulatory and economic reasons.

Ultimately, BET recommends a “sales-optimized, expanded mandatory rollout” that taps into additional installation opportunities where high customer and process benefits arise.

Author: Fritz Wilhelm