# Implementing Smart City Technologies to Inspire Change in Consumer Energy Behaviour
## 2 EU and LAC Policy and Legal Context for Smart Cities  
European smart city policies are linked with ambitious energy and climate targets for 2030 [10] and long-term objective to reach climate-neutrality by 2050 [11; 12]. Specifically, the legislative framework \"Clean energy for all Europeans package\" (CEP) builds on the principles of \"energy efficiency first\" and a consumer in the centre of energy transition [11], both highly relevant to the smart city concept. Furthermore, it is obvious that advanced, interoperable ICT solutions are in the core of a smart city. Thus, smart city policies are also clearly linked with digital transformation in Europe [13]. The principle \"Energy efficiency first\" is embedded in multiple CEP's legislative acts [14; 15; 16; 17; 18]. It is clearly stated as one of the five pillars of Energy Union and is acknowledged as an energy source, representing the value of energy saved [19]. With the introduction of CEP, consumers have been put in the centre of energy system for the first time. By unlocking both technological and social innovation, the new rules aim at utilising all aspects of human potential to drive the energy transition [11]. Engaging consumers is not a simple task as consumer behaviours for energy efficiency solutions are highly complex with broad diversity in perceptions, attitudes and preferences [20]. Smart city solutions incentivise citizens to adopt smarter ways of living and transform them from users into city service providers [21]. Meanwhile, smart meters and in-home displays have a strong potential to raise consumer awareness on energy consumption patterns, energy management services cannot be enabled just by simply installing these devices. It appears that smart meters have not been as effective as originally intended mostly because consumer attitudes and opinions were not considered [22]. Hence, innovative software products and education programs are required to fully exploit smart metering potential contribution to energy efficiency and energy savings. As for large-scale roll-out of smart meters in Europe, Member States were required to ensure the implementation of smart metering under EU the Third Energy Package [23]: in cases where the cost-benefit analysis is positive, there was a roll-out target of 80% market penetration for electricity by 2020. The new electricity market directive [15] updates and complements those provisions. Now European countries are at different stages of deployment of smart meters for residential electricity customers. In EU, in 2018, 35% of all household electricity metering points were equipped with a smart meter [24]. By 2030, it is expected that almost 92% of European small-scale consumers (households and SMEs) will have a smart meter for electricity [24]. As for European countries involved in the ITCity project, the defined national target is 100% smart meters nation-wide in 2022 for Latvia and in 2024 for Romania [24] with the process being ongoing in both countries and with good results in large, developed cities. Specifically in Romania, the deployment of smart meters for billing purposes is ongoing. While the process is not as fast as first envisioned, since the market liberalisation the end users have been highly motivated to support it. In parallel, an increased number of households are being independently equipped with smart plugs, smart home applications and other IoT devices. This illustrates that even with the current flat rate for electric energy, the end users are aware of the significance of their consumption behaviour. Hence, there is a potential for implementation of energy efficiency programs and then, in the next stage, accelerating smart city initiatives. There is a broad range of established collaborations on smart cities in Europe. Major initiatives are Smart Cities Marketplace, The Covenant of Mayors for Climate and EnergyEurope and The European Energy Award (EEA).