Smart metering can bring in multitude of benefits

In an interview with EPR Magazine, Sunil Singhvi, CEO (Energy SBU), Secure Meters Limited, shares more on how is smart metering enhancing the whole power distribution system.

How is the concept of smart meters picking up in India? 

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. 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. 

Smart metering is a system with combination of meter, communication network, head-end-system (HES) and meter data management system (MDMS) which provides a sea of possibilities in streamlining and advancing our energy infrastructure. This amalgamation of IT components into electrical ecosystem through smart metering makes its business case broad and complex, as the technology has the potential to impact the entire electricity system, from generation investment and dispatch, through network optimisation, all the way to retail operations and beyond into the consumer home. Therefore, to realise the full potential of smart metering, utility shall think of their respective use cases and objectives which they want to achieve from this rollout.

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. 

Although it relieves the utility from carrying out such large projects, a big drawback of this model is that the overall task is divided between multiple parties; as a result, it is very likely to have missing links and lack of expertise to deliver the success in endto-end responsibility. Single-entity responsibility is best to work with innovative business models; which encompasses asset supply, installation, system operation, data distribution and value-added services to utility, for an allocated administrative area.

There is a logical combination of different AMI pieces and forms two components. One is operational piece; (Meter + Communications + HES) and another is business strategic piece, meter data management system. These two components can be integrated through common data interface. This two-component approach can simplify the procurement and rollout of smart metering for utility. 

Here, single party shall be responsible for meter provisioning, communications network availability and HES provisioning. Also, would be accountable for the upkeep of all these three pieces and SLAdriven contract will ensure timely data delivery to MDM for the entire tenure of operations. By doing the above, utility would be able to successfully rollout smart metering services without getting confused with the issues of technology selection, obsolescence etc. This will also ensure faster rollout along with maximum innovation and efficiency for the utility. 

What are the major advantages of using smart meters? 

Smart metering can bring multitude of benefits both for the utility and consumers. But for the sustainable benefit realisation and making smart metering future-ready from design to deployment, following are few critical success factors which utility needs to be mindful of – 

• Consumer and the community-centric design: One of the key success factors is to develop and communicate a compelling consumer value proposition. Utility shall think of achieving behavioural change in consumer through proper plan of knowledge dissemination and make them feel that the solution has been designed for their benefit. One of the core drivers for behavioural change can be savings and control in their monthly electricity expenditure. This can be apparently achieved through right prepayment implementation. 
• Focusing on the people and process: Generally, while deploying technology, we discount or ignore the fundamental changes required in our people and processes to reap maximum benefit from the technology. Smart metering is far more than the traditional asset replacement or standalone IT program within utility premises. Operating the change management program in a manner that emphasises the new capability requirements and ways of working would support benefit realisation. Talent management is critical area to focus upon to provide new skills and behaviours. Nearly all public sector processes, including utilities, are based on public distrust and the need to justify actions many years later. That said, processes can still be simplified, but this will only work after a process for change is established. The key difference in the private sector is that neither of the above are reasons for processes to exist. Therefore, processes are simpler.
• Well managed deployment: Smart metering rollout is transformational change which will impact almost every part of the utility business, starting from procurement process, human resource recruitment to the delivery of services. Therefore, appropriate leadership and good coordination across roles and metrics within utility landscape would be very important to manage the complexities of deployment. 
• Future ready technology: Remote meter reading and timely consumer billing are very basic purposes of metering or smart metering and these are relatively mature. The use cases like renewable integration, net metering, EV charging, network asset optimisation, demand side management programs etc, are still evolving in our country. Communication technologies are changing and some smart metering benefits are constantly evolving. Utilities shall be mindful of these concerns and hence shall focus on service delivery approach rather asset procurement so that AMI landscape in their area will be flexible enough to change with use case evolution. 
• Effective use of data: In order to unlock the full value of AMI, utilities will need to make full use of data coming from every node. Effective analytics will generate new customer insights, can manage and even prevent outages, can help utility to size distribution assets, implement preventive maintenance techniques, forecast and build predictive models for demand program planning, develop new rate plans and services for customers etc. It is meter data analytics that will pave the way to a more engaged – and profitable – relationship with energy consumers. 

How do you look at the policy support for the promotion of smart metering in India?

There is a very positive policy support for implementing smart prepayment metering in India. 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. 

Under the Smart Meter National Program (SMNP), which is steered by the Government of India owned Energy Efficiency Services Limited (EESL), 1.9 million smart meters have already been installed in various states. While the SMNP aims to replace 25 crore conventional meters, electricity distribution companies (DISCOMs) are pushing for smart metering as well. The tenders coming up around the concept of Advance Metering Infrastructure Service Provider (AMISP), for which the standard bidding document have been derived by National Smart Grid Mission (NSGM). However, they are missing the fundamental aspect of complete end-to-end metering for an administrative area. AMISP is a managed services approach, PPP model led by SLA to fulfil various smart metering use cases and handles the operational aspect of AMI. 

How are smart meters supporting smart electricity initiatives in the country? 

Smart metering will be the fundamental technology piece which will help to collate data from all the new nodes getting introduced in the electrical system along with the older nodes. Therefore, when we are indicating ‘smart’, it means the technology which is helping us to efficiently utilise our resource to the maximum benefit of the society as a whole in the least cost. So, utility shall always consider technology best suited to its need and respective smart electricity initiatives like smart prepayment metering or standalone prepayment metering. Appropriate solution will help to make grid greener, stable and flexible at the same time.

What are the new solutions offered in smart meters? 

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. Internationally, smart metering has been a proven IoT technology which helps with data-driven decisions to reduce cost, improve efficiency and reliability and help in energy efficiency and sustainable environment.