Globally the investment required in the energy sector between 2003-2030 has been estimated to be $16 trillion, according to the International Energy Association (IEA).  Transmission and distribution will account for more than half of this
investment.

Europe’s electric power system currently supports 430
million people, with 230,000 km of high voltage transmission lines
(220kV to 400 kV) and 5,000,000 km of medium and low voltage
distribution lines. Total generation capacity is 560 GW (3rd General Assembly ETP SmartGrids.)   The total investment in the existing European electricity grid exceeds € 600 billion or €1,500 per citizen.  A significant proportion of the European electricity grid is over 40 years old.

The European Commission’s SmartGrids European Technology Platform for Electricity Networks of the Future began its work in 2005.   The objectives (European Technology Platform SmartGrids Strategic Deployment Document) of the European smart grid are

• 1) Pan-European supergrid that will support a decentralized, market-based treatment of electric power flows,
• 2) Upgrading (not simply replacing) existing infrastructure,
• 3) Integrating renewable (“large scale intermittent”) generation such as off-shore wind, 
• 4) Leveraging IT technology
• 4) Active distribution grids (called self-healing grids in North America), and
• 6) Customer focus. 

 According to the International Energy Agency (IEA), European electricity
consumption is projected to increase at an average annual rate of 1.4%
up to 2030 and the share of renewables in Europe’s electricity
generation will double; from 13% in 2008 to 26% in 2030.

The goal of the European SmartGrids initiative is to upgrade Europe’s electricity grid to provide reliable, secure, efficient and environmentally gentle power to the citizens of the EU while creating the foundation for a world competitive European power industry.  It is estimated that to do this will require an investment of over €500 billion in European smartgrids between now and 2030.