Smart metering: Gaining momentum

The concept of smart metering is gaining acceptance in a big way in the country with the government support and the aggressive move of private utilities in replacing old electromechanical metering systems in the country with smart meters.  

With an aim to roll out large scale Smart Metering AMI projects across the country, the government has stressed on the need for deploying smart meters on a mission mode in the coming years, for the transformation of DISCOMs. This has given a significant push to the technology and motivated the DISCOMs to adopt smart meters. 

“EESL has completed the procurement process of 1.5 crore smart meters, till date,” says Animesh Mishra, Chief General Manager, Head (Sales & PR), Energy Efficiency Services Limited (EESL). Over 17 lakh smart meters have been installed across the nation in the state of Uttar Pradesh, Haryana, Bihar, Rajasthan, NDMC-Delhi and the UT of Andaman & Nicobar Islands.

An evolving concept

In India, electricity measuring was dominated by electromechanical meters before 2000. The automatic meter reading was added to electronic meters between 2005 and 2014, which was a huge accomplishment since it allowed the data to be sent in real time. It could, however, only enable one-way communication. This constraint was solved with the development of smart meters, which can communicate in both directions. “Smart meters, like electronic meters, can monitor all electrical characteristics and convey data in a useful way,” says Vinit Mishra, Director – Technology Consulting, Ernst & Young LLP.

Though smart metering is still at a nascent stage in India, where it is being tested and implemented by only a few utilities, the concept is picking up the pace in the country. According to Sunil Singhvi, CEO (Energy SBU), Secure Meters Ltd, under the smart meter national programme, over 1.9 million smart meters have been installed in the country till May 2021 and the installation process didn’t stop even during the second wave of this pandemic. Reports indicate that utilities are realising the improvement in billing and collection efficiency

“Because of our traditional product buying and installation thought process, we have been trying to commoditise each individual component of the smart metering system. This does not provide for a robust end-to-end system and realisation of benefits would be doubtful. Smart metering programs typically outsource many of the functions and responsibilities,” says Sunil.

According to Harmanjit Nagi, Managing Director, EDF India, the smart meter segment is estimated to grow to $39.20 billion by 2027 as the concept is rapidly picking up in India. 

Advantage smart meters

According to Sunil, AMI impacts the entire electricity value chain but with present scenario, the most frequently chased benefits are in distribution sector, particularly the core areas of improving meter reading, transparent and accurate billing, enhancing consumer service touchpoints through smart prepayment metering, facilitating renewable integration, better power procurement strategy etc. “To reap such benefits, it is important to closely monitor the implementation of the program,” he adds.

Harmanjit explains on the benefit, “It allows utilities to detect and restore service faster when an outage occurs, resulting in less disturbance to a customer’s home or company. On the whole, smart meters are essential tools to lower customers’ and utilities’  energy needs while helping India achieve its climate goals.” 

Animesh adds, Smart meters are the pathway to digitisation, obviating manual intervention and enabling digital payments. Smart meters showcased their utility during the lockdown as well, proving helpful to both DISCOMs and consumers in handling operations while maintaining social distancing. Going for smart meters is indeed a smart choice – for both the consumers and DISCOMs.

According to Vinit, categorising the benefits across the major stakeholders of the smart meter ecosystem to understand the most significant ones from the long list of benefits that it can offer. 

Policy support 

There is a very positive policy support for implementing smart prepayment metering in India, according to Sunil. He adds, “During the Union Budget speech for 2020, the Hon’ble Finance Minister announced that all conventional consumer meters would be replaced by smart prepayment meters by 2022. Subsequently, a scheme worth `3.05 lakh crore was announced in the Union Budget for Financial Year 2021-22 (FY22), which focuses significantly on smart prepayment metering along with other distribution automation aspects.” 

“The announcements in March 2020 by the Government of India for the installation of smart meters across the country have helped us to further accelerate the adoption of smart meters. The other state governments have also shown an encouraging response towards smart meters installation as well,” adds Animesh.

Technology trends

According to Animesh, the smart meters are made with the latest technology and are certified and type tested by the Bureau of Indian Standards (BIS) as per IS 16444 guidelines, which are followed and accepted globally. 

Sunil elaborates, “Multiple power system simulation and modelling tools are being developed which use the metering data from end consumers as well as multiple LV and MV network nodes like DT and feeders to better equip the distribution utilities’ business processes of outage management, opex reduction and capex planning.” 

Harmanjit adds, “EDF’s solution is offering analytics which is key to the new IT system in place. Daily we are securely gathering billing and load parameters from smart meters in every 15 minutes interval. With this huge quantum of data, analytics becomes a critical solution in order to make sense and enhance the consumer/discom experience of the deployed smart metering system.”

Outlook positive 

According to Vinit, the worldwide smart meter market is projected to expand at 4 percent CAGR in the period of 2020-30. The Indian government mandates and supports policies for smart meter installation throughout end-use sectors such as residential, commercial and industrial are credited to this increase. “The new horizons in smart metering technologies in the various categories are in communication (5G, 2. NbIoT, E-Sim), infrastructure and data analytics,” Vinit concludes.

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“Single-entity responsibility is best to work with innovative business models.” – Sunil Singhvi, CEO (Energy SBU), Secure Meters Ltd

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“The worldwide smart meter market is projected to expand at 4 percent CAGR in the period of 2020-30.” – Vinit Mishra, Director – Technology Consulting, Ernst & Young LLP

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“Smart meters are essential tools to lower customers’ and utilities’ energy needs while helping India achieve its climate goals.” – Harmanjit Nagi, Managing Director, EDF India

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“EESL has completed the procurement process of 1.5 crore smart meters, till date.” – Animesh Mishra, CGM, Head (Sales & PR), EESL