Germany is falling well behind most European countries in the installation of smart electricity meters, raising concerns as the continent accelerates its transition toward renewable energy and more flexible power systems.

Smart meters have become increasingly important as Europe relies more heavily on electricity generated from wind and solar energy. Unlike traditional power sources such as coal, gas and nuclear plants, renewable energy production depends on weather conditions, making it more difficult for grid operators to balance electricity supply with demand.

The devices automatically transmit electricity usage data to energy suppliers, eliminating the need for manual meter readings while allowing consumers to monitor their energy consumption more closely. They also enable households to access time-of-use tariffs, which offer lower electricity prices during periods of lower demand or higher renewable energy generation.

Energy experts say smart meters can help reduce pressure on electricity grids by encouraging consumers to run energy-intensive appliances, charge electric vehicles or operate heat pumps when renewable power is abundant. This improves grid efficiency and reduces the need to curtail renewable energy production when electricity supply exceeds demand.

The International Renewable Energy Agency has also highlighted the growing importance of battery storage in supporting renewable energy, estimating that Europe will need to expand battery capacity tenfold to meet its 2030 climate and energy targets.

Despite these benefits, progress across Europe has been uneven. The European Union’s 2009 Third Energy Package called on member states with positive cost-benefit assessments to install smart meters in at least 80 percent of households by 2020. Six years after that target, overall deployment across the bloc stands at roughly 60 percent.

The European Commission has since proposed new targets calling for at least half of all consumers to have smart meters by 2030 and 65 percent by 2033.

Several European countries have already achieved near-universal coverage. Denmark has reached full deployment, while Estonia, Finland, Latvia, Luxembourg, Norway, Portugal and Spain each report coverage of around 99 percent. Italy, one of the earliest adopters, completed widespread installation more than a decade ago. France has reached 94 percent, the Netherlands 90 percent and Ireland 84 percent. Great Britain has installed smart meters in around 70 percent of households.

Germany remains the clear outlier. According to data from the EU Agency for the Cooperation of Energy Regulators, only about 2 percent of German households had advanced smart meters installed by 2024, the lowest rate among Europe’s major economies. Although the country introduced mandatory installation requirements for certain consumers in 2025, rollout has continued at a slow pace.

Analysts say wider adoption of smart meters could deliver significant savings for consumers while helping electricity networks manage growing demand from electric vehicles, home batteries and heat pumps. The technology is also expected to play a central role in supporting community energy projects and reducing the overall cost of integrating renewable energy into Europe’s power system as the transition to cleaner electricity gathers pace.