By year 2030 at least 27 % of final energy consumption in European Union (EU) should come from renewable energy sources. At the same time the renewable energy share in electricity generation would reach 50 % where increase mainly is expected from wind and solar energy. These sources of electricity production will significantly escalate both daily and seasonal fluctuations, as well as stochastic fluctuations of generation supply. Therefore, these factors will raise the value not only of electricity generation reserves but also solutions at customer side that will promote energy efficiency and also will unlock demand side flexibility and end user participation in electricity markets. Objective of the thesis is to analyse smart metering influence on end user energy efficiency in household sector, as well as assess the role of various factors in energy efficiency improvement. The analysis included evaluation of economic feasibility, potential of electricity consumption reduction and influence on climate change mitigation from energy efficiency due to smart metering implementation. Additionally, there were analysed factors influencing energy efficiency improvement dynamics by taking into account human behaviour aspects, role of innovation diffusion and influence of electricity market liberalization. The doctoral thesis has been created as a collection of scientific publications that have been written during doctoral studies. In the introduction the goal and underlying tasks are given followed by short description of scientific and practical significance. The first chapter presents the cost benefit analysis of smart meter rollout with an aim to justify the optimal implementation scenario. In order to validate the assumptions included in CBA, analysis of smart metering pilot assessing electricity consumption changes is carried out. In addition, analysis of reduction of CO2 emission is carried out taking into account significant structural change due to liberalisation of electricity market. The second chapter presents the analysis of factors that influence the energy efficiency decision of end users. That includes adaptation of goal-frame theory in analysing the motivation of end user. Two system dynamics models have been developed to analyse technology diffusion issues and forecast changes in electricity consumption of households. The thesis has been based on 10 scientific publications and presentations at 7 scientific conferences.