Net metering is significant for our energy security

Increased use of smart meters will aid in strengthening DISCOMs and play a vital role in moulding
our country’s energy security posture.

India has a target renewable energy capacity of 500 GW by 2030. Smart meters will enable the transition and integration of renewable energy sources from conventional sources. Thus, net metering may be crucial for India to achieve the goal of energy security. With consumers consuming and producing electricity through roof-top solar panels, bidirectional net metering will allow them to credit the extra energy back to the grid.

The country is moving at a moderately increasing acceptance rate of the smart metering program, with approximately 50 lakh smart meters installed. The utilities that embarked on the smart metering journey have seen the benefits of their financial and operational efficiency improvements and the various other benefits that consumers receive. The other stakeholders of the solution, like meter manufacturers, cloud services, telecom services, etc., have also responded well.

India faces the dual challenge of closing the energy gap while also transitioning to low-carbon energy systems. In 2016, India decided to embrace renewable energy as the predominant energy source in the long run by ratifying the Paris climate agreement. This pursuit of building a decarbonised grid with a large renewable penetration in the energy mix  brings issues of intermittency and unpredictability of energy flows, which in turn risks the grid’s  reliability.

Creating a digitalised and interconnected energy system capable of handling variability emerging from the higher share of renewable sources is imperative for a sustainable future. Advanced Metering Infrastructure is the foundational block of a smart grid that facilitates bidirectional data and energy flow between consumers and utilities. Integrated with Advanced Distribution Management Systems (ADMS), capable of enhancing the utility’s network and outage management capabilities, Discoms can further narrow their commercial inefficiencies.

Distribution Companies(DISCOMs)
The smart meter roll-out is a boon to distribution companies as it reduces AT&C losses by improving billing and collection efficiency. This is mainly through the removal of manual intervention and early detection of meter tampering through installing Smart Meters. Moreover, the pre-paid smart metering mandated by MoP helps DISCOMs with upfront consumer payments for better revenue reconciliation.

Consumer centricity is a vital component for DISCOMs to focus on. With the advent of smart metering, real-time data analytics serves the purpose of solving consumer grievances faster. Here, asset mapping can help with efficient energy accounting by detecting failures, improving efficiency, and managing operational costs by reducing breakdowns and costly asset replacements. This is possible by adopting big data and AI/ML analytics through smart metering data available to DISCOMs. So DISCOMs are positively taking this scheme.

Connectivity
The last-mile connectivity for electricity in remote locations is still an obstacle in India. Mini-grid and microgrids may be cost-effective and game-changing solutions. A microgrid powered by solar panels with smart pre-paid meters for each household. With suitable consumer awareness programs for prepayment benefits, it will help remote locations adopt smart meters. Smart meters will also help utilities recover revenue from these locations by monitoring pilferage and tampering.

Also, smart meters are part of the overall Advanced Metering Infrastructure solution (AMI) that measures and records consumers’ electricity use at different times and sends this information to the energy supplier through GPRS technology. So increased internet penetration will make the adoption easy and seamless, even in remoter areas.

Government schemes and other initiatives
Over 3.3 million smart meters are currently installed in India, and over 100 million are to be commissioned and installed by 2023. The latest scheme introduced by the government, known as the Revamped Distribution Sector Reform Scheme (RDSS), is a government grant-based program for electricity distribution network investments. The RDSS scheme and the Standard Bidding Document (SBD) in place issued by REC, AMI system integrators, and implementation agencies are encouraged to participate.

Sharing his views, Praveen Mishra, Sr. Consultant, Technology, Ernst & Young LLP, sharing his thoughts, stated, “Utilities are comfortable with the TOTEX model and Per Meter Per Month (PMPM) mode of payment. Therefore, as society is gradually recovering from the inertia of accepting smart metering, there will be faster commissioning and implementation of the smart metering system in the upcoming years.

Consumer engagement and empowerment have been challenging due to numerous barriers to accepting smart meters. Health and privacy issues were at the top of the list. Consumer confidence in smart metering must be built to ensure a successful smart meter roll-out. “

Challenges
As per the industry expert, the magnitude of the task of installing 250 million smart meters by 2025 will not be easy. The only way to accomplish this feat would be by driving wide-scale adoption across the nation. For this to happen, the focus has to be multi-fold.

Regarding the industry’s challenges, Ratna Garapati, Managing Director & CEO, CyanConnode India, says, “Taking into consideration the versatility of pre-paid smart meters, the real challenge seems to lie in ensuring widespread acceptance and large-scale implementation. The current deployment of smart meters in states like MP, Rajasthan, Bihar, UP, and Haryana has raised consumer awareness of energy consumption while priming them to guide more
prudent and responsible behaviour. The benefits and success stories of Smart Meters need to be communicated on a large scale, and there needs to be a national campaign similar to Ujala & Ujjwala.” DISCOMs, traditionally the weakest link in the electricity value chain, are plagued by low collections in utilities. He added, “Smart metering is a win-win solution for them, and they should keep aside all their apprehensions and adopt this technology.”

Smart meter manufacturers and communication service providers must provide future-proof, seamless connectivity for their meters, according to strict Service Level Agreements (SLAs). Another important factor is supply chain predictability. The OEMs (Original Equipment Manufacturers) must be ready and in a position to meet the government of India’s vision.

Smart Grids
With consumers consuming and producing electricity through roof-top solar panels, bi-directional net metering will allow them to credit the extra energy back to the grid. Even as EVs are rising, with the country’s target of 65% EVs by 2030, charging stations are increasing. There will be a time when many such injections and consumption points into the grid might also disrupt the stability and power quality. So, smart grids’ balance of energy flow may be managed more efficiently throughout the grid.

So, with the help of smart meters, it will be easier to identify voltage drops, frequency changes, power demand surges, and outages in real time. The demand supply system adaptability will lead the system to stability. Moreover, as more customers are adopting renewables, utilities are starting to rethink their netmetering policies, as it is also hampering their revenue streams. Utilities may allow regulatory provisions for consumers to pay for the system’s strengthening.

Future forecast
As renewable energy is set to be an integral and dominant part of India’s energy mix, it is safe to say that it will be one of the building blocks of the smart city mission.

Manoj Kumar Modi, Chief General Manager (Head Operations), Energy Efficiency Services Limited, said, “Smart meters, as an enabler of renewable power, and thus gain even greater significance. By enabling energy reliability, accessibility, and sustainability, smart meters are a vital component of India’s Smart Cities mission. By facilitating the formation of the smart grid, they will be at the core of delivering the promise of the Smart Cities– as providers of a more comfortable, sustainable, and energy-efficient way of life.

Smart meters have the potential to make the power sector increasingly resilient, transparent, digitised, and accountable. A seamless and consumer-focused energy ecosystem is the way forward, and we must encourage the adoption of smart meters across the country.