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Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262

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Renewable and Sustainable Energy Reviews


journal homepage: www.elsevier.com/locate/rser

Smart meter communication standards in Europe – a comparison


Sabine Erlinghagen a,n, Bill Lichtensteiger b, Jochen Markard a
a
Department of Management, Technology, and Economics, Group for Sustainability and Technology, Swiss Federal Institute of Technology (ETH) Zurich,
Weinbergstrasse 56/58, 8092 Zurich, Switzerland
b
Member of the IEEE, 2001L Street, NW. Suite 700, Washington, DC 20036-4910, USA

art ic l e i nf o a b s t r a c t

Article history: Smart grids and smart meters are central for the integration of distributed, renewable electricity
Received 21 April 2014 generation. For smart grids to operate smoothly, technology standards are essential. In Europe, a
Received in revised form multitude of different standards have been developed, making standard selection a complex task for
2 November 2014
electric utilities. With this paper we make three contributions: firstly, we identify 17 wired and wireless
Accepted 8 November 2014
communication standards for smart metering in Europe. Secondly, we develop and describe a
comprehensive set of technical and non-technical criteria for standard selection. Finally, we compare
Keywords: the existing standards against these criteria. We find that none of the standards is superior in all aspects,
Smart meter resulting in major trade-offs for decision makers. Moreover, we reveal the competing nature and missing
Communication technology
interoperability of standards, which makes a seamless integration of smart grids across different regions
Standards
difficult and poses major challenges for the development of complementary smart grid technologies.
& 2014 Elsevier Ltd. All rights reserved.

Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2. Smart meter technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.1. Use cases of smart meters in smart grids. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2. Introduction to smart meter communication technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.3. Communication standards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.4. Status of smart meter diffusion in Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
3. Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
4. Criteria for standard comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4.1. Technical criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4.2. Non-technical criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5. Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5.1. Technical comparison of smart meter communication standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5.1.1. Narrowband PLC standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
5.1.2. Wireless standards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
5.1.3. Application standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
5.2. Non-technical comparison of smart meter communication standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
5.2.1. Current and expected installed base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
5.2.2. Standard openness and EU endorsement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
5.2.3. Ownership of communication networks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
5.2.4. Costs and mode of meter replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
5.3. Summary of comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
6. Discussion and conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Appendix A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

n
Corresponding author.
E-mail address: serlinghagen@ethz.ch (S. Erlinghagen).

http://dx.doi.org/10.1016/j.rser.2014.11.065
1364-0321/& 2014 Elsevier Ltd. All rights reserved.
1250 S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262

1. Introduction the identification of standards, the review of criteria and the


comparison of standards against these criteria. Section 4 intro-
Smart grids are a central element of the ongoing energy duces the criteria for the comparison. The results of the compar-
transitions as they facilitate the integration of distributed, renew- ison are described in Section 5. Section 6 discusses the findings
able electricity generation [1–3]. Smart meters are household and concludes.
meters with two-way communication technology. They are often
considered the first step in building a smarter grid [1].
For large numbers of smart meters to operate smoothly, 2. Smart meter technology
technology standards for data exchange are essential [4–7].
Standards can be expected to enable interoperability, reduce costs 2.1. Use cases of smart meters in smart grids
through economies of scale and create mass markets [6,8]. More
generally, common standards facilitate the diffusion of new The main purpose of household electricity meters is billing –
technologies and the development of entire technological fields meters are the cash registers for utilities. Smart meters are
[9,10]. Classical examples are technology standards for computers equipped with two-way communication technologies. In the first
[11] or mobile phones [12]. place, two-way communication enables automatic, remote
In emerging technological fields, it can be very challenging to (instead of manual) meter readings for utilities [21]. This saves
arrive at a common standard and the literature on standardization manual reading efforts and enables utilities to send regular (e.g.
reports many cases of firms and governments struggling about monthly) bills based on actual consumption rather than on
standards. The battle of VCR standards with VHS winning over estimates.
Sony's Betamax [13], the success of Blu-ray in the case of high Detailed information about electricity consumption from smart
definition DVDs [14] or the struggle of IBM, Apple and Sun for meters can also help utilities to identify and stop fraud (energy
dominance in the field of IT platforms [11] are prominent theft). Smart meters provide information on actual consumption
examples. in intervals between one day and 15 min. An analysis of this data
Also in the case of smart grids, different standards are asso- enables utilities to identify irregular consumption patterns [5] that
ciated with different strategic interests. Technology providers such are indicators for fraud [27]. Moreover, the two-way communica-
as Landis þGyr, Echelon or Connode, utilities such as Enel, ERDF or tion allows utilities to remotely disconnect meters [21,24] not only
Iberdrola and even governments are involved in standard devel- in cases of fraud or unpaid bills but also in emergency situations
opment [10]. Today, 17 different smart meter standards exist in (e.g. risk of a black-out).
Europe. What makes this situation even more challenging is that With the aid of smart meters utilities can also provide con-
the entire energy sector is currently changing – as a consequence sumers with real-time information on their electricity consump-
of market liberalization and the recent rise of renewable energies tion. This consumption data can be displayed on so-called in-home
in many countries. In fact, the ongoing transformation of the displays, consumer internet portals or mobile apps [28] that help
energy sector can be viewed as a sustainability transition [15], consumers to identify energy saving potentials [24]. Studies have
which depends on the simultaneous development of complemen- shown that consumers reduce their energy consumption by 5–15%
tary technologies, including new renewable energies, energy when they use such displays and portals [28,29].
storage, energy efficiency and smart grids. Beyond these consumer-oriented use cases, smart meters can
In this situation of general uncertainty about sector develop- also help utilities to integrate increasing amounts of distributed,
ment and many competing standards, utilities have a hard time renewable energy production in the electricity grid. Especially
choosing a smart meter standard. Standard selection depends on fluctuating electricity production can lead to imbalances between
the intended use of smart meters and on different criteria such as demand and supply. Utilities typically have little information of
costs, data rates, robustness or standard openness. what is going on in the distribution part of the grid. Smart meters
A comprehensive review of technical and non-technical criteria can help monitor and provide near-real-time information on
for smart metering and a comparison of standards against these actual distributed production and consumption [24].
criteria are still missing. So far, scholars have provided in-depth Moreover, smart meters can enable utilities to influence
analyses of the performance of individual standards such as demand as they allow introducing flexible tariff schemes or other
PRIME, G3, GSM, DLMS/COSEM or oneM2M [16–21]. Existing advanced demand response measures. Today, the electricity price
studies also discuss the applicability of standards from other for households is mostly the same every day and throughout the
domains for smart metering [21–23]. Other studies discuss the day. In some cases, a lower tariff applies during the night. With
opportunities and challenges of smart meters and smart grid smart meters utilities can change pricing schemes anytime and
communication in more general terms [24,25]. Existing reviews remotely [21]. In some cases, utilities might not want to rely on
take a broad perspective, comparing communication standards consumers' reaction to price incentives. Instead, they might seek
independent of their application. They survey communication to control industrial, commercial and household loads directly. For
standards used for several smart grid applications [5,7,26] and such demand response programs utilities need to know how much
they only focus on technical criteria. load is available for them to reduce and they need to verify the
In this paper we specifically focus on communication standards actual reduction of loads. Smart meters can provide this transpar-
used for smart metering and we compare them against technical ency and proof [24].
and non-technical criteria. In doing so, we make three contribu- Finally, smart meter communication can be used in even more
tions: firstly, we identify standards used for smart meter commu- advanced cases connected to other domains such as transport,
nication in Europe. Secondly, we provide a comprehensive review comfort, security or healthcare. The communication channel to the
of technical and non-technical selection criteria relevant for smart meter could be used to remotely manage heating or ventilation or
metering. Finally, we compare the identified standards against to send alarm signals in case of emergencies. Each of the above-
these criteria. The results provide utilities and other stakeholders described use cases has particular requirements in terms of
with greater transparency for standard evaluation and selection. quantity, speed, latency and reliability of data transfer. A central
This paper is structured as follows: we start by introducing the step when choosing a communication technology standard is
technological field, including a description of the main use cases. therefore to select and specify the applications for which smart
In Section 3, we then describe the methodological approach for meters shall be used.
S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262 1251

2.2. Introduction to smart meter communication technologies Smart Data


meter collector
Smart meter communication networks typically consist of two
types of communication links: the wide area network (WAN) and Application Application
the local area network (LAN).1 In some cases, a third type of Presentation Presentation
communication link is added, the home area network (HAN)
Session Session
[1,30]. The HAN enables communication from the meter into the
home, for example, to inform consumers about actual consump- Transport Transport
tion. The LAN establishes the communication link between the
Network Network
meter and a data concentrator, e.g., in a substation. The WAN is
used to transport the information from the data concentrator to a Data Link Data Link
utility back-end system (such as a billing system). The require- Physical Physical
ments for all three types differ substantially especially with
respect to the distances covered and the data volumes. Therefore
different technological options may be considered for each type of Fig. 1. OSI layer model for smart meter communication.
communication link. The most controversial debate around smart
metering concerns the LAN (and if needed the HAN) connection. A a central antenna or base station. This has implications for the
great variety of possible technologies and standards exist, each network design, as each meter has to be reached by an antennas or
with advantages and disadvantages. cellular base stations. For houses in remote locations and for
The LAN connection for smart meters can be established using meters in cellars of buildings this can cause problems.
wired or wireless technologies. Our review will include standards
for both. In terms of wired technologies, the focus lies on power 2.3. Communication standards
line communication (PLC) technology, the most widely used
technology for wired LAN connection of meters in Europe.2 Both, wired and wireless technologies have been specified
PLC technology uses the power line as communication channel, through standards. Standards can be defined as “rule(s) for com-
modulating the communication signal onto the power line in a mon and voluntary use, decided by one or several people or
defined frequency band. A dedicated PLC network needs to be organizations.” [32]. This broad definition includes both open and
established for smart metering. It consists of communication proprietary standards. Communication technology standards, in
modules that are typically integrated into the meters and data particular, define rules or conventions for the information
concentrators, typically installed in substations [21]. The data exchange between devices (here: meters and data concentrators
concentrator sends and receives communication signals from all or base stations) in a network. These rules include specifications of
meters connected to its substation. syntax, semantics and the synchronization of communication in
PLC technologies have an inherent trade-off between band- so-called protocols. Typically, such protocols contain rules for data
width and range. While broadband technologies achieve higher and address formats for data exchange, address mapping, routing,
data rates, they do not cover large distances. Additional repeaters detection of transmission errors, direction of information flow etc.
need to be installed to transport the signal over longer distances, Communication protocols need to be interchangeable to func-
which is costly. For the connection of smart meters in Europe, tion in diverse settings. For this purpose they are typically
narrowband PLC technologies are therefore typically chosen (for structured with layers. The open systems interconnection (OSI)
pilots with broadband power line communication see [31]). Other model is a widely used standard (ISO/IEC 7498-1) for structuring
wired technologies (such as optical technologies) are used only in protocols. The OSI model consists of seven layers (see Fig. 1). The
exceptional cases, as they require additional wiring or can be lower layers (physical and data link layer) specify signal modula-
disconnected by consumers too easily (e.g. by disconnecting the tion on the physical communication medium (fiber cable, power
internet router at home). line, radio frequency (RF), etc.), the upper layers (session, pre-
In terms of wireless technologies the review includes point-to- sentation and application layer) determine the functionality. The
point technologies (mobile communication), point-to-multipoint layers in-between enable the transport.
(star topology) and radio mesh networks. These technologies For a communication link to be established (e.g. between meter
modulate signals onto radio waves in defined frequency bands. and data concentrator) the entire OSI stack needs to be specified.
While point-to-point and point-to-multipoint technologies use This can be achieved in two ways: Either a standard specifies all
existing network infrastructures such mobile phone networks or layers or several standards, which each specify a subset of layers,
TV and radio antennas, radio frequency (RF) mesh networks are combined. Such combinations only work if the standards are
require dedicated, field-based infrastructure such as data collec- specified in a compatible way. For this review, a mapping of
tors or data concentrators. standards to the OSI model will allow us to identify competing
RF mesh technologies also differ from the other two wireless standards as well as complementarities.
technologies in terms of network topology. RF mesh technologies
form a network where meters route information to a neighboring 2.4. Status of smart meter diffusion in Europe
meter that is not necessarily directly connected to a data collector.
This is also referred to as dynamic multi-hop communication. Like The EU has set a goal to have 80% of European households
PLC technologies RF mesh technologies form a dedicated LAN, equipped with smart meters by 2020. But only few countries have
which is connected to the WAN through data concentrators. achieved this target so far. Italy was the first country to roll-out
In contrast, point-to-point and point-to-multipoint technolo- smart meters in 2001, even before the EU set its goals. Sweden
gies span the LAN and the WAN as each meter is directly linked to followed with its roll-out between 2003 and 2009. Malta and
Finland have finalized their roll-outs in 2013. Governments in
1
several other countries, including France, Spain, UK and Nether-
LANs are also referred to as neighborhood area networks (NANs).
2
Note that the actual performance of a communication link is driven by
lands, have set targets for the implementation of smart meters, but
general characteristics of the technology and on the particular specifications of the have not finalized the roll-out yet [33]. Germany has decided to
standard in a given geographical environment. install smart meters only in new or substantially renovated houses
1252 S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262

Fig. 2. Number of installed smart meters (vs. non-smart meters) in selected European countries (2012) based on [34].

as well as in high-consumption households. Germany is likely not Table 1


to realize a comprehensive roll-out. Again others (Belgium, Czech Standards included in this study.
Republic and Lithuania) have decided against a smart meter roll-
Type Standard name
out, based on a negative cost-benefit analysis [33]. Fig. 2 provides
an overview of the smart meter penetration in major European Wired (PLC) PLAN, AMIS, Meters&More, LON/OSGP, PRIME, G3, G.9902, 1901.2
countries in 2012. Wireless GSM/GPRS, UMTS, LTE, MeshNet3, Flexnet, KamstrupRF, 802.15.4
Typically, national regulation makes the distribution system opera- Application* DLMS/COSEM, oneM2M
tors (DSOs) responsible for metering and consequently also for the n
Standards that specify only the upper layer of the OS.
roll-out of smart meters. In exceptional cases, such as the UK, the
retailer is responsible for metering. Within the limits of government
mandates DSOs (or retailers) have to determine the functional and The analysis of secondary data was based on a comprehensive
non-functional (e.g. security) requirements for smart metering and document analysis. It included publications in peer-reviewed
select the communication standard. These requirements depend journals, academic conference proceedings, technical specifica-
among others on the targeted use cases as introduced above. tions of standards, web sites of standards developers and industry
reports.3 This analysis allowed us to establish a first list of criteria.
Moreover, it provided us with first information how the selected
standards compare against these initial criteria.
3. Methods In a second step, we conducted 14 interviews with experts,
who were involved in the development of the standards under
In order to identify the most relevant smart meter standards, analysis. We selected experts to have at least one interviewee per
we analyzed a comprehensive database containing information on standard, ideally two. Note that most experts were involved in
more than 200 smart meter projects in Europe. This database was more than one standard development committee (cf. Table 2).4
compiled in an earlier study (please refer to [34] for more detail on This multiple engagement of experts was also very helpful to
the data sources) and, among others, contained information on the compare standards directly. The informants worked for utilities,
standard(s) used in each smart meter project. This information technology suppliers, independent research institutes or consult-
allowed us to generate a list of all deployed standards. To include ing firms. The interviews were conducted between October 2012
only the most relevant standards, we limited the scope to and April 2013. They lasted 30–60 min and were conducted in
standards deployed (or to be deployed) in projects larger than person (9/14) where possible and by phone otherwise. Extensive
50,000 m endpoints. As a result we identified 11 standards in notes were taken during each interview.
scope of the study. Through a review of standardization activities
in major SDOs, we identified another six standards, which have
not been deployed in larger projects so far due to their novelty. 3
For the comparison of current and expected installed base (see non-technical
The 17 standards included in this review are of three types: criteria in Section 4.2), we analyzed project data in the above mentioned project
wired PLC standards (eight standards), wireless standards (seven database to determine the installed base in 2012 and the expected installed base in
standards) and standards that specify the application layer only 2020. For each project, the database contained information on the standard
(two standards). Table 1 provides an overview of the standards. deployed, the project end date, the total amount of meters and the meters installed
by 2012. Based on this information, we determined the number of meters per
Note that several PLC and wireless standards (i.e. Meters&More,
standard installed in 2012. To determine the expected installed base we assumed
LON/OSGP, Meshnet3, Flexnet and KamstrupRF) also specify the for each project that was not completed by 2012 that an equal share of the
application layer (cf. Table 4). remaining meters would be installed each year until the planned end date of the
To develop assessment criteria and to compare the standards, project. Since none of the projects had an end date later than 2020, this method
we proceeded in two steps: in a first step, we analyzed secondary could be applied for all projects.
4
This was true for all open standards that were developed collectively by
data to compile preliminary criteria and an initial comparison. In a several organizations. For the few standards that were developed by a single
second step, we gathered primary data through expert interviews, organization (e.g. Kamstrup RF) experts only participated in the development of
which helped us to validate the criteria and refine the comparison. their own standard.
S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262 1253

Table 2 The reach inside buildings and the achievable range are impor-
Overview of interviewed informants. tant criteria because they determine whether each node (here:
meter) can be reached. In Europe, meters are often located inside
No. Employer Interview focus
of buildings (often even in cellars) and might therefore be difficult
1 Technology provider CENELEC standards to reach, e.g., for weak radio signals. The range determines the
2 Technology provider Kamstrup RF maximum distance between sender and receiver (here meters and
3 Technology provider OSGP, LON data concentrators5) in a network. The network needs to be
4 Technology provider PRIME, G3, 1901.2
5 Technology provider MeshNet, IEEE802.15.4g/e
established in a way that each meter can be reached in a cost
6 Technology provider GSM, UMTS, LTE, oneM2M effective way [24]. If the communication standard covers a too
7 Technology provider AMIS short range, additional data concentrators or additional repeaters
8 Independent research institute CENELEC standards are required. Both substantially increase the costs for communica-
9 Independent research institute OSGP, LON
tion per meter. This distance between meter and substation can be
10 Independent consultant G3
11 Utility Meters&More very different, e.g., in rural and urban areas.
12 Utility PRIME Thirdly, communication standards have to work in frequency
13 Utility PRIME bands available to the utility. The usage of both power line and
14 Utility G3 radio frequency bands is regulated internationally. Some fre-
quency bands are reserved for specific entities (such as utilities
or police forces) whereas others are restricted to certain applica-
Each interview contained two parts, a general part about tions (such as low voltage network monitoring). Ideally, the utility
standard selection criteria and a specific part on the standard has the exclusive usage rights for the band they use for smart
(s) for which the interviewee possessed expert knowledge. After metering. Such exclusivity prevents congestions or interference
each interview we updated our comparison with the new infor- through other users and reduces sources for errors. But such
mation and took this as a basis for the next interview. If new exclusivity can come at high costs as substantial license fees can
information from an interview yielded contradictions, we went be involved (e.g. licenses for frequency bands for mobile phone
back by phone or email to previous interviewees for clarification. communication). Details on European frequency band regulations
These interviews enabled us to complement and triangulate for powerline communication are explained in Box 1, for radio
the preliminary findings from the document analysis. Not only did frequencies in Box 2 in Appendix A.
they allow us to fill remaining gaps, they also helped us to refine The fourth criterion concerns data rates and latencies. Data
our criteria and the assessment of standards against these criteria. rates are a measure of how much data can be transmitted
Experts mainly added information on technical characteristics of per second. Latencies describe the time between sending and
standards, especially in the case of proprietary standards. They receiving of a communication signal. With higher data rates,
also provided us with additional documents with technical stan- latencies decrease proportionally. A communication standard
dard specifications such as mappings to the OSI model. Moreover, should achieve sufficient data rates and latencies [5] to fulfill
they helped us to define the boundaries for the categories in the functional and non-functional (e.g. security) requirements. Differ-
overview table (cf. Table 4). Finally, the interviews were helpful to ent smart grid functions have different latency requirements,
clarify contradicting findings from the document analysis, e.g., on which will affect the choice of communication technology
achievable data rates or openness. deployed in the LAN (and WAN). Table 3 provides an overview of
To summarize our results, we aggregated the results of our some typical latency requirements for smart meter and grid
comparison in a table (cf. Table 9). Each standard was assessed applications. While requirements for billing only are not very high
relative to the highest and lowest empirically observed values for (1–2 kbps and 30 s), more advanced functional and non-functional
each criterion. We distinguished three categories: ‘ þ þ ’ for the (security) requirements need higher data rates and lower latency.
highest values ‘ þ’ for the values in the middle and ‘o’ for the Another important criterion for standard selection is robust-
lowest values. For the criterion ‘data rates’, for example, we ness. The communication to and from the node needs to be reliable
categorized data rates above 1Mbps as ‘þ þ’ and data rates below in order to transmit the data without errors [5]. This is already
10kbps as ‘o’. important when ‘only’ billing is concerned and it is even more
crucial for more advanced functionality. Especially, if meters are
used for real time functions like advanced demand response or
4. Criteria for standard comparison renewable integration, communication errors can result in lost
benefits, penalty payments or destabilized networks. Different
The choice of smart meter communication standards depends network architecture and modulation techniques have proven to
on technical and non-technical criteria. We identified seven be more or less robust. Mesh networks are typically more robust
technical and five non-technical criteria. While this classification than star networks as the signal can use multiple ways to reach its
might be debatable for some criteria, it highlights the relevance of destination. Modulation techniques contribute to robustness in
non-technical aspects in decision-making, which were neglected two ways: by reducing interference from side bands (esp. OFDM
in many previous studies. modulation) and by providing increased data rates allowing for
the specification of additional robustness techniques such as
channel encoding, interleaving or data repetition. Moreover, in
4.1. Technical criteria shared frequency bands, quality of data transmission is increased
when standards specify features for the coordination of multiple
The seven technical criteria include reach inside buildings, users (in the MAC layer of the OSI model).
range, frequency bands, data rates/latencies, robustness, intero- Utilities will also look for interoperability [30] in lower and upper
perability and semantics/data models. While the first five criteria layer standards. Three types of interoperability can be distinguished:
are relevant for lower layer standards (cf. OSI model), interoper-
ability is also important for application standards. The last criter-
ion, ‘semantics and data models’ is only relevant for application 5
In the case of point-to-point or point-to-multipoint networks the distance
standards. between meters and base stations/antennas.
1254 S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262

Firstly, interoperability between different versions of a standard to network requires internal resources and competences. Outsour-
ensure seamless replacement of old meters with newer versions; cing means relying on and managing the interface to a third party
secondly, interoperability between implementations of the same and to pay for the provided services.
standard by different vendors. Such interoperability assures seamless Finally, costs cannot be neglected as a criterion. Costs for
interaction between meters and communication modules from communication modules and for operation of the network can
different vendors in one network. It makes utilities less dependent differ. Module costs typically decrease significantly with large
on one vendor. Thirdly, interoperability can be achieved among market volumes (economies of scale, see above) and increase with
different standards. additional data rates.6 In addition, costs are influenced by the
Finally, the fulfillment of functional depends on the application mode of smart meter replacement (‘comprehensive roll-out’: all
layers (layers 5–7). The semantics and data models specified for the conventional meters in one geographical area are replaced by
application layer should be designed to allow for the implementa- smart meters at once or ‘selective exchange’: smart meters are
tion of all required functionality [20,30]. In the first place these use installed only in households that fulfill certain criteria such as high
cases will be electricity or energy specific, but in a second step electricity consumption). Technology options that can rely on
they might go beyond energy and also cover transportation (e.g. existing network infrastructure are often more cost efficient in
electrical vehicles) or even applications like health. case of selective exchange, whereas technology options that
require the establishment of dedicated communication networks,
4.2. Non-technical criteria typically yield advantages in comprehensive roll-outs.
Table 4 provides an overview of the above-described technical
We include five non-technical criteria in our review: The and non-technical criteria. For each criterion it shows the oper-
current and the expected installed base (2 criteria), the openness ationalization for distinguishing the three categories (‘þ þ’, ‘þ’
of a standard, the ownership of the network, and costs. and ‘o’). This operationalization is later used to aggregate the
A large installed base allows later adopters to benefit from findings of the standard comparison in one overview
experiences made in earlier installations. A standard with a large table (Table 9). Only for the two criteria ‘ownership’ and ‘cost
installed base can be considered field-proven and scalable. Beyond effectiveness in different replacement modes’ we distinguish only
this, the current and especially the expected installed base have two categories: “yes” or “no”, as the ownership of such a network,
crucial influence on which standard eventually becomes domi- for example, was either possible or not.
nant. A large installed base typically creates bandwagon effects In summary, we identified a broad range of different technical
leading new users to choose the standard with the highest and non-technical criteria. These criteria not only need to be
prospects of becoming dominant [35,36]. A large installed base carefully assessed, they might also be partly contradicting, result-
also creates economies of scale. Users can benefit from lower ing in trade-offs to be made in standard selection. Moreover, we
prices (see cost criterion below) and long-term security of supply. see that the relevance of these technical and non-technical criteria
The openness and EU endorsement of a standard is another depends on the targeted use cases (see also Section 6). Some
relevant selection criterion [35,37]. Proprietary standards entail ‘basic’ use cases such as daily meter readings can be realized with
the risk of high dependency on one vendor or even lock-in with a very low data rates for example, whereas more advanced use cases
single vendor. With open standards, many suppliers can offer the such as demand response, require higher data rates.7 For utilities
standard. Standards can be considered open, if (1) anybody can with clear strategic priorities and target use cases these criteria
contribute to the development and if (2) the standard can be provide a basis for standard evaluation and selection even beyond
implemented by anybody under so-called FRAND conditions (fair, the 17 standards we analyzed for this paper.
reasonable and non-discriminatory) [38,39] or even entirely
(license) free. Through the contribution of many parties in stan-
dard development, users (utilities) benefit from a broader knowl- 5. Comparison
edge base. Moreover, utilities might also want to consider EU
endorsement of a standard. Under the EU mandate M/441, Eur- The following comparison reveals the strengths and weak-
opean standardization organizations have specified a smart meter nesses of each standard with regard to the identified technical
reference architecture and framework. The EU requires standards and non-technical criteria. The mapping of standards to the OSI
to be open and compliant with this framework. Such EU endorse- model provides an initial overview and helps identify alternative
ments can increase legitimacy of a standard. This might be and complementary standards.
important, for example, for end-user acceptance.
Utilities might also have preferences with regard to the own- 5.1. Technical comparison of smart meter communication standards
ership of the communication network. Some might prefer to own
and operate the network, others might be happy to outsource The mapping of standards to the OSI layer model (cf. Section
both. For utilities, owning and operating a communication 2.3) not only allows us to distinguish application standards from
physical layer standards, it also helps to identify complementa-
Table 3 rities and alternative standards. Standards can be considered
Overview of typical latency requirements for different smart grid functionality. alternatives, if they specify the same layers.
Table 5 shows the mapping of all 17 standards to the OSI layer
Functionality Typical latency
requirement
model. We see that ten of the standards specify only the lower
layers (layer 1 and 2) that determine the physical communication
Service disconnect 1–10 min channel, two specify only the upper, application layers and five
Classical meter reading 10–30 s specify both.
Load control o5 s
Distriubtion automation 1–2 s
Substation protection and transformer o 5 ms 6
We reflected these two aspects, which are relevant to costs, in the criteria
monitoring
data rates and installed base (both current and expected). We did not consider
Voltage phasor measurement in generation o 1 ms
them in the criterion cost to avoid overemphasis.
7
An assessment of standards relative to each use case and strategic priority of
utilities is beyond the scope of this paper.
S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262 1255

Table 4
Categories for ranking of standards against technical and non-technical criteria.

Selection criteria Ranking


Categories

þþ þ o

Technical
1 Reach nodes inside buildings Always Generally yes Not always
2 Range 45 km 1–5 km o 1 km
3 Dedicated/licensed frequency band Dedicated license-free band Dedicated licensed band Shared, unlicensed band
4 High data rates/low latencies 41 Mbps 10–1000 kbps o 10 kbps
5 Robustness Robust architecture and protocol Robust architecture ( þ a) or None
Robust modulation/protocol ( þ m)
6 Interoperability Between different vendors Backwards interoperability Not interoperable
7 Horizontal data model/semantics Designed for many sectors Specific energy sector features Designed for energy sector

Non-technical
1 Current installed base 45mio Deployed Piloted/not deployed
2 Expected installed base 45mio Planned deployement known No deployment plans decided
3 Openness and M/441 EU endorsement Open and EU endorsed Open Proprietary
4 Ownership of the network Utility can own network Utility cannot own network
5 Cost efficient for selective replacement Mostly yes Mostly no
Cost efficient for comprehensive roll-out

Among the standards that specify the lower layers, eight technologies, PLC technologies also have advantages in reaching
specify standards for power line communication (depicted in the meters inside homes or even in cellars.
columns to the left of the table) PLAN, AMIS, PRIME or G3 are All of these standards work in CENELEC A (3–95 kHz) frequency
examples here. These standards compete not only among each band, which is reserved for distribution monitoring use (which
other, but they also compete with seven wireless standards includes metering) in Europe (cf. Section 4.1). In addition,
including, for example, MeshNet3, Kamstrup RF or GSM/GPRS Meters&More and G3 work in ARIB (10–450 kHz), the Japanese
(see columns to the right of the table). band and FCC (10–490 kHz), the US band. G.9902 also works
In terms of application standards (layer 7), AMIS, Meters&More in FCC.
DLMS/COSEM, LON/OSGP, oneM2M, MeshNet3 and Kamstrup RF In CENELEC A band, these standards achieve data rates
represent alternative solutions. While AMIS, Meters&More, LON/ between 1–100 kilobytes per second (kbps). Higher data rates
OSGP, Meshnet and Kamstrup RF are specifically designed to work can be achieved in the FCC band (up to 500 kbps). But using the
with their respective physical and data link layers (layers 1 and 2). FCC band might imply more interference through shared
DLMS/COSEM and oneM2M are designed to work with all lower band usage.
layer standards that use IPv4 or IPv6 as a protocol in the network The differences in data rates as well as differences in robustness
layer. These include all ten standards that specify only the lower are influenced by the different modulation techniques defined in
layers.8 the standards. PLAN uses Spatial Frequency Shift Keying (S-FSK)
In the following technical comparison we first compare PLC modulation and AMIS uses Differential Code Shift Keying (DCSK).
standards against each other (see Section 5.1.1), we then compare Both achieve lower data rates (up to 3 kbps), but are quite robust
the seven wireless standards, starting with point-to-point stan- and in case of S-FSK relatively easy and cost effective to imple-
dards, followed by RF mesh and point-to-multipoint standards ment. LON/OSGP and Meters&More use Binary Phase Shift Key (B-
(see Section 5.1.2). Finally, we compare the application standards PSK) modulation which achieve higher data rates (up to 57 kbps).
(see Section 5.1.3). In Section 5.2 we compare all standards against The remaining four standards (G3, PRIME, 1901.2, G.9902) use
non-technical criteria. OFDM modulation. In general, OFDM modulation is more complex
to implement, in return it is more robust and achieves higher data
rates [16]. Moreover, the increased data rates allow for the
5.1.1. Narrowband PLC standards specification of additional features that further increase robust-
PLC standards have a long history in smart meter communica- ness. These include techniques like channel encoding (e.g. forward
tion in Europe. The first generation dates back to the 1990s (P-LAN, error correction), interleaving and data repetition. In addition,
LON/OSGP and Telegestore now Meters&More9). The next genera- G.9902 and 1901.2 enable coherent modulation. “The choice
tion has been developed in the mid-2000s (PRIME, G3, AMIS, between coherent modulation and non-coherent modulation
G.9902 and 1901.2). G.9902 and 1901.2 are the most recently reflects complexity vs. performance tradeoffs.” [16].
finalized standards, released in 2012. For operation in shared (FCC) frequency bands, G3 and 1901.2
Using PLC networks for smart metering, implies using the same additionally specify co-existence or contention features (ISP in
grid for the transportation of electrons and data. No additional 1901.2 or CSMA in G3) that enable coordination between different
wiring is needed since the meter is connected to the grid in any users of a communication channel.
case. Therefore PLC systems are often considered a “cost-effective In general, newer standards achieve higher data rates. Analog to
and straight forward solution” [5]. When compared to wireless data rates, latencies (from backend system via data concentrator to
the meter) decrease with each generation of standards. They range
8
between approximately 20 s using PLAN and ten seconds for
Meshnet3 and PLAN do not use IP but they can also be used with DLMS/
COSEM via a specialized adapter.
newer standards. G3 is an exception, it ‘sacrifices’ higher data
9
Meters&More originated in the Telegestore project and was initially based on rates and lower latencies in favor of higher robustness achieved
LON technology. through multiple repetition of data transmission. Table 6 provides
1256 S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262

Table 5
OSI layer mapping of smart meter LAN standards.

an overview of the major technical differences between the PLC As in the case of PLC standards, different modulation techniques
standards. are used to achieve higher data rates with each new generation (cf.
Narrowband PLC standards do not greatly differ in terms of Table 7). GSM/GPRS achieves data rates up to 270 kbps and LTE
range. Distances of approximately one up to two kilometers reaches several hundred Megabytes per second. Overall these data
between data concentrator and meter can be covered. This is far rates are significantly higher compared to narrowband PLC standards
more than broadband PLC standards that typically cover only few (see Table 6). Accordingly latencies are significantly shorter (few
hundred meters in the low voltage network. The extended range milliseconds to 1 s) once the connection has been established.
of narrowband PLC standards (in comparison to broadband PLC The robustness of point to point mobile communication tech-
standards) comes at the expense of achievable data rates. nologies is determined mainly by the coverage of the network and
Finally, we find that the standards are compatible and interoper- the number of obstructions between base station and meter.10
able among different versions of the same standard. Moreover, PLAN, Lower speed GPRS technology is generally more robust than higher
LON/OSGP, Meters&More, PRIME and G3 have certification programs speed UMTS and LTE technologies. Lower frequency (e.g.
within their respective alliances with the aim of achieving interoper- 900 MHz) mobile networks enjoy better signal propagation and
ability between standard implementations of different vendors. How- penetration through walls and are generally more robust than the
ever, interoperability between different standards is not given. Only G3 higher frequency (1.8 GHz–2.5 GHz) networks.
is designed to co-exist with PLAN. Also in terms of ranges (here between base stations and
meters), point-to-point standards reach further than PLC stan-
dards. A signal can cover distances of 5–30 km depending on the
topography of the landscape.
5.1.2. Wireless standards Interoperability is an extremely important requirement in mobile
Wireless technologies generally perform better in outdoor communication standards. They have to be backwards compatible not
environments and are susceptible to signal loss in indoor environ- only within the same standard but also between different standards.
ments, because radio signals often have difficulties penetrating Moreover, interoperability between different vendors is also achieved.
building walls and reaching meters when mounted in cellars. This Otherwise newer end devices (such as mobile phones or meters)
problem can be mitigated through the use of external antennas, could not use older network infrastructure and equipment from
however at additional cost. different vendors could not be used in one network.
While point-to-point (mobile communication) networks and In terms of RF mesh standards three standards are compared:
RF mesh networks have been deployed for smart metering for Meshnet3, Kamstrup RF and 802.15.4g-e. Point-to-multipoint
many years, point-to-multipoint networks were only recently used standards have been even less present so far, recently however
for this purpose. In this section, we first separately compare point- the UK has decided to deploy a point-to-multipoint standard
to-point standards, followed by RF mesh and point-to-multipoint called Flexnet.
standards. RF mesh standards mainly differ in the frequency bands and
In terms of point-to-point networks we distinguish several power levels they use. Kamstrup RF operates in the unlicensed
generations of mobile communication standards. GSM and GPRS 433 MHz band and the licensed 444 MHz band at 10 and 500 mW
are typically referred to as 2nd generation standards, UMTS as 3rd respectively. Meshnet works in 869.400–869.650 MHz unlicensed
and LTE as 4th generation. These standards have been agreed band at 50 mW. 802.15.4g-e are designed for use in multiple
globally [36] and are deployed world-wide. The respective fre-
quency bands are exclusively reserved for mobile operators who
obtain licenses (cf. Table 6). The mobile operators can use them for 10
Generally speaking mobile networks are targeted at capturing frequent high
any kind of communication, the usage is not limited to a certain data users in dense urban areas and may therefore have poorer coverage in
domain (such as smart metering). rural areas.
S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262 1257

Table 6
Overview technical characteristics of PLC standards.

Standard Modulation Data rates Frequency band IP? Other features

PLAN S-FSK 200 bit/s–2.4 kbps CENELEC A


AMIS DCSK 600 bits/s–3 kbps CENELEC A
LON B-PSK 3.6–57.6 kbps CENELEC A
Meters&More B-PSK 4.8–57.6 kbpsn CENELEC A, ARIB, FCC
PRIME OFDM 21.4–128.6 kbps CENELEC A iPv4 Tree routing
G3 OFDM 2.4–33.4 kbpsn CENELEC A, ARIB, FCC iPv6 Robust mode, mesh routing
1901.2 OFDM Approx. 80 kbpsn CENELEC A, ARIB, FCC iPv6 Coherent modulation
G.9902 OFDM Approx. 80 kbpsn CENELEC A, FCC iPv6 Coherent modulation

n
In CENELEC A.

Table 7
Overview technical characteristics of wireless point-to-point standards.

Standard Modulation Data rates Frequency band IP?

GSM/GPRS GMSK/TDMA Up to 270 kbps 900–1800 MHz iPv4


UMTS CDMA 14.4–84 Mbps down 2110–2170 MHz downlink iPv6
5.75–22 Mbps up 1920–1980 MHz uplink
LTE OFDM 326–1000 Mbps down 800–2600 MHz iPv6
86–500 Mbps up

frequency bands world-wide (see [40] for an overview) including The analyzed RF mesh and point-to-multipoint standards are
863–870 MHz for Europe. In this band it operates with power generally not interoperable between different vendors. A certifica-
levels of 25 mW. tion program for 802.15.4 is currently being established though.
While Kamstrup RF and Meshnet3 only achieve data rates up to Table 8 summarizes the major technical characteristics of RF mesh
9.6 kbps, they achieve relatively long ranges of up to 10 km in rural and point-to-multipoint standards.
areas. 802.15.4e-g achieves higher data rates (up to 500 kbps)
through more advanced modulation techniques, but it only covers
5.1.3. Application standards
ranges up to 1 km. More specifically, 802.15.4 g proposes three
In terms of application standards we include seven standards in
alternative modulations for the PHY layer multi-rate frequency
our comparison, two that only specify the application layer i.e.
shift keying (MR-FSK) PHY, multi-rate orthogonal frequency-
DLMS/COSEM and oneM2M [20,21]; and five that have been
division multi-plexing (MR-OFDM) PHY, and multi-rate offset
developed in conjunction with the respective lower OSI layer
quadrature phase shift keying (MR-O-QPSK) [41]. MR-OFDM the-
standards: LON/OSGP, AMIS Meters&More, Meshnet, KamstrupRF.
oretically achieves the highest data rate of up to 800 kbps [40,41].
They are therefore mostly deployed as one stack with their
The mesh architecture11 makes these standards very robust
respective lower layer specifications. LON/OSGP could also be used
(if the network contains enough nodes). Communication can be
with other physical channels, but we have not identified a (larger)
routed through alternative paths in case of congestion or broken
deployment. DLMS/COSEM is used as application layer for several
communication links [7,42]. The network quality increases with
PLC standards including PLAN, PRIME and G3. Moreover it is used
each additional meter in the same area [7]. This then also
with mobile communication standards. DLMS/COSEM does not
reduces the risk of using non-exclusive frequency bands. Using
(yet) work with RF mesh standards, but there is a New Work Item
RF mesh can therefore become a challenge in very sparsely
Proposal (NWIP) within the responsible working group of IEC to
populated areas, where only few meters can form the mesh
close this gap.
network.
These application standards are generally not interoperable. The
Finally, Flexnet, the only point-to-multipoint standard included
DLMS/COSEM data model, for example, is very rich covering far
in this review, achieves data rates up to 172 kbps. It uses the UK
more classes, objects and attributes than are actually required in
licensed frequency band of 412 and 422 MHz. Higher power levels
many countries. Consequently different implementations of this
of typically 2 W in this band provide extra range (up to 30 km) and
standard may not be interoperable with one another because one
robustness.
implementation may have included items missing in the other
implementation. In order to achieve interoperability, a base set of
classes and objects would have to be specified in the interoper-
ability specification and implemented by everyone on a manda-
11
For this mesh architecture to be created it requires not only a standardized tory basis. LON/OSGP, Meters&More and IDIS12 (for DLMS/COSEM)
PHY/MAC such as 802.15.4 g and e (layer 1 and 2 of the OSI stack). It also requires therefore provide a certification that ensures interoperability
additional standards for neighbor discovery, networking, routing, transport, net-
between different vendors. Similarly, the PRIME and G3 standard
work management and security (layers 3 and 4). Meshnet3 and Kamstrup RF
therefore have specifically designed layers 3 and 4. 802.15.4g-e can be used with specify their own (country-specific) configuration of DLMS/COSEM
layer 3 and 4 standards defined by Internet Engineering Task Force (IETF) that are to ensure interoperability of their PLC networks.
known as RFCs. These include standards for the IPv6 network layer and associated
networking schemes, appropriate routing protocol (e.g. RPL) transport protocols (e.
12
g. UDP, TCP) and relevant security mechanisms. IDIS ¼Interoperable Device Interface Specifications Association.
1258 S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262

Most of these application standards use rather concrete, energy The standards in the scope of our study can be broadly
sector specific data models and semantics. As LON/OSGP has its categorized into three different patterns of standard development
routes in industry and building automation, data models and history. In a first group of standards, PLAN, DLMS, 1901.2 and
semantics are more abstract and better suited for cross-domain G.9955, have been developed within standard development orga-
usage. oneM2M uses the most abstract data models semantics nizations (SDOs) from the start. This implies that several parties
making it independent from any specific sector, explicitly targeting contribute to standard development and that the acceptance of
cross-domain usages [43]. The specification of oneM2M is driven standards is a result of majority vote (mostly 71% threshold).
by cellular operators, but it is not finalized yet. Moreover, it implies that standards can be implemented by any-
In summary, the comparison of wired and wireless standards body under FRAND conditions.
reveals major differences between standards and also inherent In contrast, G3 and PRIME have been developed as generally
trade-offs. None of the standards is per se superior from a open standards by a small group of firms that expanded to a
technical perspective. While, point-to-point (mobile) communica- formal industry alliances with increasing numbers of members.
tion standards achieve highest data rates, they work in non- Only in a later stage (in 2011) these standards were proposed to
exclusive, licensed frequency bands. In addition, they have chal- SDOs for acceptance.
lenges to reach meters inside buildings (esp. in cellars). In contrast, Again different, Meters&More (formerly Telegestore), LON/
powerline standards work in (exclusive) unlicensed bands. They OSGP, AMIS, Flexnet, Kamstrup RF and MeshNet3, have initially
reach meters in cellars without problems, but they only achieve been developed as proprietary standards by a single firm.
lower data rates. Meters&More, LON/OSGP and AMIS have later been published by
Overall, we can observe a trend towards increasing data rates these firms. While Meters&More and LON/OSGP have both formed
with each new generation of wired and wireless standards. But the alliances, only LON/OSGP has been proposed to SDOs for
interoperability and compatibility between different standards acceptance.
remains generally rather low, with the exception of mobile So far, only four PLC standards, namely Meters&More, PRIME,
communication standards. G3 and PLAN with DLMS/COSEM as well as all point-to-point
mobile communication standards have been accepted as being
conformant to the European M/441 criteria for open smart meter
5.2. Non-technical comparison of smart meter communication standards.
standards Jointly, the standard adoption pattern and the analysis of
openness show that standards that have been developed
5.2.1. Current and expected installed base and deployed in the early years (2001–2007) were mostly pro-
The most widely adopted standard in Europe until today is prietary. They only opened up in recent years. More recently
Meters&More or more precisely its predecessor Telegestore. The developed standards were open from the start. While older,
wide adoption was achieved thanks to the early smart meter roll- proprietary standards have achieved a large installed base, they
out of Enel in Italy in 2001. Beyond Italy, Meters&More will be have lower growth prospects for the future than newer more open
deployed by Endesa, a subsidiary of Enel, in Spain. LON/OSGP, standards.
MeshNet, Kamstrup RF, GSM/GPRS and PLAN have mainly been
deployed in the roll-outs in the Nordic countries between 2003 5.2.3. Ownership of communication networks
and 2011. The largest deployment of GSM/GPRS is planned for the PLC and RF mesh networks give utilities the choice to own and
central and southern part of the UK. The northern part will deploy operate the communication network or to outsource it to a third
Flexnet. AMIS has been deployed by some utilities mainly in party.13 This choice results from the fact that such networks
Austria. PRIME is currently being rolled-out by Iberdrola in Spain, require dedicated, field-based infrastructure such as data collec-
by EDP in Portugal and by Energa-Operator in Poland. G3 is the tors or data concentrators. Such LANs are mainly built and
standard of choice for ERDF in France. To our knowledge, UMTS, operated as private networks, often by the DSO itself.
LTE, 802.15.4, 1901.2 and G.9902 have not been deployed in Europe In contrast, the selection of point-to-point and point-to-
yet. Fig. 3 shows the current installed base of standards in 2012 multipoint networks for smart meter communication implies the
and a prediction for 2020 in Europe. outsourcing of network ownership and operation, because it uses
In summary, none of these lower layer standards has reached existing infrastructure. A dedicated network for smart metering
the installed base (430mio) of Meters&More until 2012. Looking would not only be cost prohibitive from an infrastructure per-
forward however, PRIME, G3 and GPRS/UMTS are likely to achieve spective, licenses for the required frequency band are also expen-
higher growth rates, reaching more than ten million meters sive and typically already awarded to communication service
by 2020. providers (such as Vodafone or Telefonica). As a consequence
Also in terms of application standards, Meters&More is also still utilities have to outsource ownership and operation of such
the most widely deployed standard. But DLMS is likely to overtake networks to cellular or Machine to Machine (M2M) service
Meters&More very soon. The actual and planned deployments of providers. This also implies that utilities have to share the network
PLAN, G3, PRIME and GPRS/UMTS all use a version of DLMS for the with other users [7]. This can be a concern, if continuous avail-
application layer. oneM2M has (to our knowledge) not yet been ability of communication is a priority (ibid).
deployed so far.

5.2.4. Costs and mode of meter replacement


5.2.2. Standard openness and EU endorsement The costs for smart meter communication chips and modules
Today, most standards claim to be open, but some differences mostly depends on two factors: The price increases almost
can still be observed. These differences, however, are not easy to proportionally with data rates (cf. technical comparison) and it
uncover [37]. As previously introduced (cf. Section 4.2), one way of decreases with large overall production volumes of communica-
judging openness is to identify how many parties have contributed tion chips and modules thanks to economies of scale. Therefore a
to the standard development and who can implement the stan-
dard. This can be done by tracing back the development history of 13
In cases where retailers are responsible for the smart meter roll-out, the
each standard. usage of PLC technologies is subject to grid access granted by the DSO.
S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262 1259

Table 8
Overview technical characteristics of wireless point-to-multipoint and RF mesh standards.

Standard Modulation Data rates Frequency band IP? Transmission power

Kamstrup RF Undisclosed Approx. 4 kbps 433 MHz unlicensed ISM band 10 mW at 433 MHz
444 MHz licensed band 500 mW at 444 MHz
MeshNet3 GFSK 9.6 kbps 869.400–869.650 MHz IPv4 50 mW at 869 MHz
802.15.4 MR-FSK; MR-OFDM; MR-O-QPSK MR-FSK: 10–400 kbps 863–870 MHz (for Europe) IPv6 25 mW at 863–870 MHz
MR-OFDM: 50–800 kbps
MR-O-QPSK: 12.5–500 kbps
Flexnet Undisclosed Up to 172 kbps 412/422 MHz UK licensed band IPv4 2 W at 412 and 422 MHz

and if meters are replaced in a comprehensive roll-out. While first


generation PLC standards benefit from the experience of a large
installed base, they are technically inferior (data rates and robust-
ness). More recently developed PLC standards in contrast are
technically more advanced but not (yet) field-proven.
RF mesh standards (Meshnet and Kamstrup RF) have similar
strengths as PLC standards. In densely populated areas, they
are more robust thanks to their mesh architecture. However,
they have challenges reaching meters in cellars and the
standards deployed so far are proprietary. In Europe, RF mesh is
likely to remain the exception, unless dedicated or more favorable
frequency bands or power levels are made available in the
Fig. 3. Installed base in Europe per standard in 2012 and projection of expected future.
installed base in 2020. Point-to-point and point-to-multipoint communication stan-
dards such as GSM and Flexnet generally show advantages
if meters are distributed over larger areas and if meters
large actual or forecasted installed base, contributes to decreasing are exchanged selectively rather than in a comprehensive
prices. Since some very large utilities decide about communication roll-out. In addition, point-to-point standards allow for
modules for millions of meters, a single utility can influence prices the realization of advanced use cases with very high data rate
significantly14. requirements (at the expense of higher costs). But these stan-
At least equally important than the price for communication dards do not leave the choice to own and operate the commu-
chips and modules, is the mode of smart meter replacement. nication network.
Technologies that require the establishment of dedicated LAN Overall, the table shows that, the comparison against both
communication infrastructures (PLC and RF mesh) are most cost technical and non-technical criteria reveals even more trade-
effective when smart meters are replaced in a comprehensive, offs. While, for example, early deployments are based on
regional roll-out. The installation of data concentrators pays off proprietary standards, we observe a trend towards open stan-
best, if all nodes in a geographical area are connected at once and dards. We also see that higher data rates typically come at the
many meters are connected to one data concentrator. expense of higher costs and in the case of mobile communica-
Since the selection of mobile communication and point-to- tion networks they automatically imply the outsourcing of
multipoint standards implies the use existing networks, they can ownership and operation of the communication network to a
be a cost effective option if the introduction of smart meters is third party.
done selectively, e.g., just for new buildings or for high consump-
tion households. In summary, the comparison of standards against
non-technical criteria shows further differences between the 6. Discussion and conclusion
standards.
In this paper we made three contributions. Firstly, we
5.3. Summary of comparison identified 17 standards for smart meter LAN communication in
Europe. The large number of alternative standards reflects the
Table 9 highlights the strengths and weaknesses of each nascent status of this technological field. Secondly, we provided
standard. It shows that some standards (e.g. G3 and PRIME) a comprehensive review of criteria relevant for standard selec-
achieve more favorable ratings than others. This does of course tion, which also remain relevant in the future, when existing
not imply that these standards should be automatically selected. standards change or new standards emerge. We highlighted that
Instead, it provides a first overview and framework to guide the the relevance of these criteria for each utility depends on the
standard selection process. On this basis, every utility will then targeted use cases and on the preferences regarding the own-
have to specify its individual use cases and the resulting weighting ership of communication networks. Finally, we compared the
of the criteria. standards against these criteria. The comparison has revealed
The table shows that PLC standards have advantages, if meters major differences between standards. None of the standards is
are mounted in cellars, if targeted use cases require low data rates superior in all criteria, which means that standard selection
involves trade-offs.
For an actual selection of a smart meter standard, utilities will
14
Several European utilities count more than ten million meters (up to 33 have to weigh the relevance of the different criteria for their
million) in their installed base. This volume is significant not only on a national
scale (where it represents up to 90% market share) but also on European level
specific situation. They need to analyze environmental factors such
where it represents up to 10% market share. In the interviews, large chip and meter as regulation or grid topology and they have to determine what
manufacturers confirmed that such large volumes substantially decrease unit costs. kind of functionalities ‘their’ smart meters will have to fulfill now
1260 S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262

Table 9
Overview standard comparison against technical and non-technical criteria.

and in the future. This is all the more difficult as future technology [8,9,49]. Shorter technology cycles and more frequent
requirements are still unclear: for example, does it make sense innovation is something the electricity sector still has to get used
to invest in higher data rates now, even though it is unclear to with its traditionally long lifetimes of technological infrastruc-
whether they might be needed later? What are the advantages ture (30–80 yrs). The ongoing integration of ICT in the energy
and disadvantages of owning and operating the communication sector, of which smart meters are but one example, is very likely to
network? Or what are the benefits of cooperating with third change many of the long established professional practices in the
parties such as mobile phone operators? A major challenge for sector [34].
utilities is that the electricity sector is changing fundamentally It is also important to note that the electricity sector currently
and that they have to develop new competences (e.g. in ICT) is in a very fundamental phase of transformation that very much
and launch new services and business models. Competition will exceeds smart grid technology and smart meter standards. This
intensify, new players enter the field [34], innovation cycles ‘energy transition’ also includes the development and diffusion of
may become much shorter than in former times and sectors innovations in renewable energy, energy efficiency and energy
may increasingly overlap (energy and ICT, energy and trans- storage and a substitution of fossil and nuclear fuels – at least in
portation). Smart grid technology is certainly a central element some countries [50,51]. Such broader transitions do not just
in this broader transformation and provides an opportunity to encompass a range of different technologies but also far-reaching
strategically experiment with new options and to learn about changes in the institutional and organizational structures of a
how to cope with higher degrees of uncertainty and more sector [15,52]. The development, assessment and selection of
dynamic market environments. technology standards are some of the many aspects actors have
Beyond strategic relevance for utilities, this study provides to deal with in such times of great changes.
insights into the development of smart metering and smart Of course, our analysis also has limitations. Firstly, not all
grids more generally. The pre-dominant use of narrowband PLC criteria were equally easy to operationalize and to assess. While
standards in Europe currently limits the use cases for smart some criteria (e.g. data rates) are well-studied and ‘straight
metering and the possibilities for leveraging this communica- forward’ to measure, others were less clear. Especially for the
tion infrastructure for broader smart grid solutions. The criteria robustness, openness and cost efficiency, we could rely on
preference of many utilities for low costs and ownership very few previous studies. In these cases, expert interviews helped
of the communication network may therefore create future us further operationalize and assess the criterion (e.g. for robust-
bottlenecks. Moreover, the high number of competing smart ness we distinguished robust architectures and modulation pro-
metering standards leaves economies of scale unrealized, cre- tocols). In these cases triangulation of different experts was of
ates a patchwork of different solutions and potentially results in crucial importance to achieve validity. Due to a lack of reliable
a lack of interoperability. Complementary products or services studies and possibility to operationalize based on expert state-
(e.g. one bill for charging of electric vehicles in different ments, we even had to exclude one relevant criterion, namely ‘data
electricity networks) might therefore be difficult to realize. This security’.
is a call for policy makers to set incentives for standard Secondly, some criteria are somewhat interdependent or show
convergence and to launch initiatives that facilitate coordina- a certain overlap, e.g., costs vs. installed base. To avoid over-
tion among key actors, including negotiation and potential emphasizing these criteria we carefully operationalized each
resolution of conflicting interests. The European Union mandate criteria. The criterion cost, for example, is limited to the cost
(M/441) to three standard development organizations (CEN, efficiency for certain roll-out types to avoid double counting cost
CENELEC and ETSI) to work towards harmonization of smart effects of current and expected installed base.
meter standards has certainly been a worthwhile endeavor in Thirdly, we used a relative ranking of each standard with an
this regard. equal weight for each criterion. In practice, however, utilities will
However, we also have to acknowledge that high levels of weigh the criteria according to their use cases and strategic
uncertainty, yet emerging applications, conflicting strategic inter- priorities. While beyond the scope of this study, a multi-criteria
ests, lack of guidance and struggles over standards are typical for decision making approach could provide an absolute ranking of
emerging technological fields [44,45] and broader socio-technical standards for a given preference of a utility.
transitions [46,47]. In the early years of mobile telephony several, Finally, our study aimed at providing a very comprehensive
for example, mostly national standards competed for almost two comparison of standards against technical and non-technical
decades and subsequent technology generations brought about criteria. This breadth automatically comes at the expense of depths
even new standards as well as changing alliances of promoters in the analysis of each criterion. Future studies should therefore
[36,48]. Similar standard battles and frequent standard changes as build on this work and provide in-depth analysis especially for
technology progressed have also been observed in information criteria that are less well studied so far (e.g. cost).
S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262 1261

Box 1–European frequency band regulations for powerline communication (based on [53]).

Box 2–European band regulation for radio frequency (based on [54]).

Appendix A EDP Energias de Portugal


ERDF Électricité Réseau Distribution France
List of abbreviations ETSI European Telecommunications Standards Institute
Abbreviation Full meaning FCC Federal Communications Commission (USA)
AMIS Automated Metering and Information System FRAND Fair, Reasonable And Non-Discriminatory
ARIB Association of Radio Industries and Businesses (Japan) GSM Global System for Mobile Communications
BPSK Binary Phase Shift Key HAN Home Area Network
CEN European Committee for Standardization IEC International Electrotechnical Commission
CENELEC European Committee for Electrotechnical IETF Internet Engineering Task Force
Standardization ISO International Organization for Standardization
COSEM COmpanion Specification for Energy Metering LAN Local Area Network
DCSK Differential Code Shift Keying LTE Long Term Evolution
DLMS/COSEM Device Language Message Specification MAC Media Access Control
DSO Distribution System Operator MHz Mega Herz
1262 S. Erlinghagen et al. / Renewable and Sustainable Energy Reviews 43 (2015) 1249–1262

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