Second-generation smart meter roll-out in Italy: a cost-benefit analysis

Between 2001 and 2011, Italy deployed about 36.7 million smart meters. As the older meters approach the end of their 15-year long life, a campaign has been started to replace them with second-generation smart meters. This paper performs a cost-benefit analysis of the roll-out program, considering both the costs and the potential benefits (including a more efficient use of energy, load-shifting, and the reduction of CO2 emissions). Benefits are likely to exceed the costs, but that depends on the actual use of the meter-generated data, the cost of carbon allowances, and the discount rate.