Abstract

The continued growth of Energy Information Networks (also known as “smart grids”) represents an innovative step forward for the whole energy system. This step forward promises significant opportunities to protect the environment, and benefit Germany's economy. Smart grids create new opportunities for manufacturers to offer new products and for system service providers to offer new services. Smart grids will lay the foundation for a competitive business environment. Just as renewables were in the past, smart grids have the potential to become an engine for job growth in Germany.

Similar to all innovations to a system, smart grids create unique risks, particularly in the fields of IT security and privacy. Against this background, an innovative transformation of distribution networks towards smart grids must keep the long-term benefits to society in mind. It also has to balance the various interests of customers and network operators. As a result, the legal framework has to provide efficient incentives to further develop smart grids and simultaneously reconcile the innovation process with constitutional requirements (i.e., IT security and privacy).