The role of smart metering and decentralized electricity storage for smart grids: The importance of positive externalities

► Smart meters and decentralized storages are important components of smart grids. ► Both components are widely seen as beneficial to society. ► Identification of the most important stakeholders and their investment incentives. ► Omission of societal desirable actions due to positive externalities. ► Measures to foster diffusion of smart grid key components.