German telecom companies compete for the "smart grid" market

Deutsche Telekom and energy providers (such as RWE, Eon, EnBW, and Vattenfall) have entered into a dispute over the benefits of the smart grid in this one million market. Reinhard Clemens, a member of the telecommunications board of directors, said that the future energy market will be an important part of Deutsche Telekom’s new strategy. Telecommunications must establish links between smart meters and the power grid, and even the Internet and appliances. In the course of a day when the price of electricity is constantly changing to reach the optimal price, the smart meter allows home appliances to run on electricity. Electricity still comes from energy suppliers, and telecommunications manages demand.

According to Arthur D. Little, a telecommunications company consultant, under the development of the smart meter business, Telecom expects the total global turnover to exceed US$42 billion in 2014. Telecommunications issued official information that it is impossible to establish partnerships with energy suppliers in this area.

According to reports, in 2020, smart meters will be installed in each basement of every German household. The smart meter continuously transmits the power required by the household and the information transmitted from the rooftop solar power generation device to the grid to the grid operator. Individual appliances that do not continuously supply power are also controlled by smart meters. For example, when the price of electricity is high, the smart meter can stop it for one hour and ensure that the temperature inside the freezer is not too high. Suppliers can rationally deploy power stations to generate electricity from data counted from numerous homes.

Deutsche Telekom conducted a simulation test on the feasibility of smart meters in Friedrichshafen. RWE Power invests 30 million euros in Mühlheimander Ruhr, which is expected to install a new smart meter for 100,000 homes by the end of 2011.