A Significant Increase in Electricity Distribution Investments

23 May 2024

A data document on the operations of electricity distribution companies has been published on the website of the National Energy Authority. The document includes key information from the investment estimations of distribution companies for the years 2024 to 2028.  

Smart meter usage varies widely among companies, ranging from 1% to 91%. Smart meters are vital for cheaper nighttime electricity, energy efficiency, and market competition, thus making investments in smart meters crucial. 

Electricity usage is projected to increase by 35% by 2035. Three companies plan a 20-40% investment increase in the next five years, one anticipates nearly doubling investments, and another expects similar investment level as the previous five years. Investment typically does not impact tariffs beyond inflation if usage rises accordingly. 

Of the total investments, 11% are for energy transitions, and 37% for strengthening the network for these transitions. Smart meters are essential for efficient network use, addressing uneven load challenges from electric charging. Investment plans, submitted for the first time in February under new laws, will be updated biennially. Historical data from 2013-2022 on operations and revenue limits are also provided for analysis. 

Further information about the investment estimations of the DSO’s can be found here.