A Comparative Study of Smart Grid Development in Developed and Developing Countries

During recent years, there has been an increasing interest in the potential opportunities that can be attained with the use of smart devices in order to gather data or automate processes. This type of communications between devices with minimal human intervention is referred to as Machineto-machine (M2M) communications that can be applied to optimize resources and improve service delivery applications. Smart Grid is one of the M2M communications applications that is attaining more attention during recent years, because of its potential to change the complete energy ecosystem; going from a unidirectional system to a bidirectional one where customers will have an important role in the ecosystem. Depending on the country and its characteristics and situation, Smart Grid development can be very different. This article identifies commonalities and differences in Smart Grid communication development considering the current status in developed and developing countries. The process is done by evaluating the following techno-economic aspects: Technology development, Public initiatives, Regulator policies and Economic situation/Business perspective of the country. The article is concluded by showing that regulator policies regarding the level of liberalization in the energy market are a key element when defining business strategies and different stages of Smart Grid communications development has a critical influence in the definition of business models, as it defines the key activities, partners and value proposition for the business.