Deploying smart meters, remedial measures for DISCOMs

Key to energise the DISCOMs is to facilitate them to take up a well thought of AMI program and support them.

In discussion about different aspects and approaches to improve the focus supply with Bipin Chandra, CEO, Esyasoft expects the government to let the DISCOMs choose the right approach and methodology for taking up smart metering program and support them with reasonable financing.

Moving away from power generation and focusing on supply. Your take?
The generation and transmission segments in India have already reached reasonably high levels of operational efficiency, primarily due to the adaptation and implementation of advanced monitoring and control technologies such as SCADA, GMS and EMS. It is the last mile in this chain link; the distribution segment needs more focus than ever. Highest levels of inefficiencies are embedded in the distribution sector.

Maximum benefits can be expected if the government tries to further analyse and understand the issues in the distribution sector, and bring in remedial measures. The losses in the distribution are a major concern touching over 20 per cent average. The high losses in the distribution chain are primarily due to poor billing coverage, and electricity theft due to meter tampering and unauthorised connections.

Government has to give improved push and support for the smart meters’ deployment with directives and financial support since the smart metering can very effectively address the above. Another aspect to touch upon is the need to study, if the utilities are operating efficiently? Are there enough tools provided to utilities personnel for the doing things more efficiently which can reduce the operational cost. It has to be noted that a consumers electricity bill not only covers his energy charges, but also the operating cost of the utility which is hidden. By adopting IOT based technology solutions and IT tools such as smart metering, meter data management and advanced analytics, utilities can reduce their operating costs apart from increasing their revenue, which straight goes into reducing the cost burden of the energy consumers by way of reduced energy bills. An out of box thinking is required to focus and improve the operational efficiencies in this sector.

What policy or tariff changes are you expecting to come under the UDAY 2.0 as it is supposedly aimed at improving operations of the DISCOMs?
Government has to take a peek into the utilities that are deploying smart metering with a confident approach in extracting all the advantages such a system will bring in. You can take example of MP Indore DISCOMs experience, it has taken up deployment of about 150000 smart meters for covering feeders end to end which have been generating high losses and saddled with under recoveries. Within a period of 8 to 10 months of implementation, they have been able to turn around the revenue per feeder from an average from baseline 65 per cent to 98 per cent, apart from many other benefits accrued such as reduction in arrears collection, fixation of contractual demand, identification of theft cases with proof from smart meter alerts and providing better customer services in terms of proper billing. Esyasoft is happy to be a part of this success story by providing high end meter data management and analytics software solution to Indore DISCOMs. With the right approach and meticulous implementation of smart metering, the Indore DISCOMs has shown the stake holders that the smart metering investment has a Return of Investment upto 2.5 years. This is being presented by the DISCOMs in several utility and government forums. Any program of mass smart meter deployment thrust by the Centre on the DISCOMs may have limited results as we are seeing today.

DISCOMs are facing one of the greatest threats of cyber attack. On the wake of this, how is an efficient supply possible?
This threat is for real and should not be taken lightly. Newer techniques are being adopted by hackers to get into the power network. Adequate security has to be put in place to prevent cyber attacks. Efficient supply does not mean to compromise security. My understanding is that adequate security measures introduced will not affect the supply efficiency.

Adoption of rooftop depends heavily on net-metering. However, why do you think it is still a big challenge in urban areas?
While net metering is required for rooftop generation, non-availability of the same has not been a deterrent. Rooftop success depends on the government policies of what an average rooftop producer can gain out of this. Many utilities provide energy banking facilities for the producers. That is they let the producers pump surplus solar energy to the grid and draw them when they require, thus getting billed for net energy only. This policy needs to be made more attractive and should be adopted by all DISCOMS. The present day cost economics do not permit a consumer to invest in solar rooftop, sell it to utility and get an RoI. However deployment of smart meters can increase the consumer’s interest in becoming a rooftop producer as well due to the built in feature of net metering.

Why do you think the state DISCOMs see that as threat to their business?
As you can see the high intermittent nature of the Solar energy can create a lot of stress on the DISCOMs network and operations. The rooftop generation is certainly not a threat to the DISCOMs as the consumer needs maximum energy when the Sun is not shining and depends on the DISCOM. Further the DISCOM having invested in the network may have to charge the producer a certain portion towards the network usage. Until the storage options become more flexible and cost effective this will not be a threat to Discoms.

Can smart meters re-energise India’s crumbling power distribution companies?
My answer is definitely a big YES. Until now the DISCOMs thought that it was a luxury to have smart meters for their consumers which can cost upwards of 5X of their normal meter cost. But practical experience from successful deployments of smart metering has changed everything. Today DISCOMs have a few references where this has given results and helped them to solve their major challenges and get a ROI in less than 3 years. A meticulous approach thought of by taking all DISCOM stakeholders into consideration is the key for a successful Smart Meter program deployment and getting benefits. Key to energise the DISCOMs is to facilitate them to take up a well thought of AMI program and support them.

What kind of metering infrastructure should be in place for an efficient supply?
India has a well defined smart metering standard defined through CEA and BIS. While many countries still in the standardisation process we have efficiently rolled out lakhs of smart meters, adopting standards which have proven successful. A smart metering system/program comprises of three major components, (i)The smart meter – which many metering companies have started manufacturing and deploying as per defined standards. (ii)The communication infrastructure – RF (radio frequency) communications media has proven to be quite successful and very effective in getting a near 98 per cent meter data reads. However, for covering less population in rural areas, GPRS communication media can be utilised. With a 90 per cent RF + 10 per cent GPRS media, a very effective AMI system can be deployed. (iii)The meter data management (MDM) application with IT infrastructure is a major force in making this program a success. Esyasoft has been highly successful in deploying MDM in the Indian DISCOMs and presently covers the largest installed smart meter base in India.

Bipin Chandra,CEO,Esyasoft