Smart Metering: To help Indian
utilities address the revenue
challenge
B. S. Babel - President, IEEMA
Indian Electrical & Electronics Mfg. Association
India’s energy scenario
For generation,
availability of fuel and
India is the 3rd largest producer renewable energy
of electricity in the world infusion has been
addressed. Additional
The world loses $89.3 billion
transmission capacity
annually through power theft
and inter regional
capacity is being
India loses US$ 10- 15 billion
addressed .
annually
240 million Indians live without The distribution
sector is struggling
access to electricity
Both central
& state
govt.
involved in
power Discoms
Energy accumulated
sector
produced losses
1200 Twh
70Billion$
Energy
240 million
shortage
consumers
1.0% Indian Power
Sector- an
Overview
Peak Very High
shortage losses 23-
1.5% 25%
Low
Load revenue
Growth /Per capita
6-8% use ~1010
kWh
Info. need for distribution management
Disconnections Transfers &
Customers & Reconnections Vacancies
Managing Customer
Accounting Credit Relationship
& Payments Collecting Revenue
Cash Protection
Readings Power
Customer Information through
Billing Quality
smart metering
Profiles ?
Tariff
Load
design
Forecasting
Geography
System System
Operation Expansion
Assets
Energy Distribution
Accounting Automation
Wires
System System
Losses Maintenance
Load
Control
Indian discom story
Positives: Early adapters of electronic meters for all
segments. Meters with high accuracy and tamper detection
capability
Could not appreciate
• Changes required in discom processes to convert data to
business decisions
• Many did not build computing and IT system and support team
• Indian power system conditions. Surges, spikes, over voltage,
high temperature, poor installation
• Social side of power theft
Lagging :Moving in circles on meter data collection
Impact
• No details around the drivers and variability of energy loss
• Outcome, no real benefits out of installing electronic meters for
several discoms
Metering Industry Status
At par with global technological developments. World’s first smart meter jointly developed in India in
1988
World leaders in addressing Tamper & fraud issues
Comprehensive design and manufacturing capability in India : Around 25-30 million per year.
Indian companies are ready with smart meters and have implemented AMI solutions in Developed
and Developing economies. Smart meters exported out of India
Around 1/3rd of global “Smart Meter”/Smart technologies design/Engg. is based in India.
Around 700k meters with switches deployed, began a decade ago in the country.
Around 5 million meters with various communication links working. Bulk supply
points success.
Discoms experienced mixed success. few really utilised the data. System integration
challanges faced
“What is SMART”today and in foreseeable future
What do we desire from a Smart meter
• Which provides desired results in quickest possible time deploying
appropriate technology at affordable cost for today and tomorrow
• Key business drivers today and in foreseeable future
• For Owner/Service provider and for end user
• What does it take to adopt and grow it . Change management issues
• System versus standalone equipment
• Smart meter to AMI to smart grid Journey
Smart meter records consumption in intervals of 30mins or less.
communicates information at least daily back to the utility for
monitoring and billing. enable two-way communication. Provides on
line update to the user through web or in home display to help
efficient energy usage and reduce bill. Sensor for smart grid..
24x 7
power
supply
Ma loa
na d renc y
gem a
nsp
en
t Tra
Key Drivers
-Smart Metering
in India
ith Re
d
w
o n le AT&uced
ati C lo theft
tegr wab sse -
In rene s
Improved
customer
services
Value delivery from smart meter
Adding communication and connect/ disconnect
Smart Reliabilit
Planning
Grid y
Operation ENGG. Data
efficiency Analytics
switch
Custom Asset Revenu Renewable
er Managem e
Integration
Service ent leakage
Field Crew Demand
Billin Meterin Billin Meteri Managem Managem
g g g ng ent ent
Utility operations benefited by Utility operations benefitted by adapting Smart
Walk by reading Metering
The key challenge for Indian discoms is
reducing AT&C losses
UDAY, innovative effort to address the problems faced by discoms.
It will address the issue of high interest burden and effective power purchase.
The elephant in the room is high AT&C losses. Increasing with increased
generation
“UDAY” has provision for smart metering and related IT support
Let’s talk about
the elephant in
the room
Understanding the root causes of AT&C
losses
Revenue Losses
Non-Technical Commercial
Technical
Losses Losses
Losses
Metering Commercial Debt
Related Other Unavoidable
Practice Management Losses
Errors & Unmetered Avoidable
Data Flows Won’t Pay Losses
defects supplies
Data Fraud Illegal Long Cash Can’t Pay
connections Cycle
Tamper
Smart Grid pilots experience
Smart Gird Pilots
• 2 years back 14 smart grid pilots started.
• Focus more on Smart metering
• RFPs floated for approx. 300k Smart meters
In FY 15-16
• Orders decided for approx. 150K Smart Meters.
• Unfortunately, revenue could only be recognized for 5k Meters
Issues / challenges
• Lack of standard specification of meter
• Selection of communication technology
• Regulatory support missing
• SLA not being achieved, field issues etc..
• All are new entrants.
Challenge with utilities: Complex meter design
• Support of various revenue protection
• Improve revenue and reduce losses :
features: High theft
Credit management
• Customization based upon utilities
• Load / demand side management
specific requirements
• Last mile (Distribution) is a constraint and
• L-1 buying low initial cost expected
many Discoms are loss making
Challenges in
Poor electrical system Indian Contexts
High ambient temperature
condition due to: Dusty and humid in many areas
● Geography & age of the network.
Poor installation practices
● Surges, spikes and voltage variations
Technology alone cannot solve problems
People, processes and technology must come together
Consider value delivered rather than cost alone
Technology
Cost effectiveness
Total cost of ownership Processes
People Sociology of technology
Dedicated IT team Simple & effective
People with good Transparency in service
analytical ability levels
Keeping abreast with Creating multiple
technology payment option
Customer education
Results
World wide smart metering projects
USA United Australia France
• Quantity 100 Kingdom • Quantity 2.9 • Quantity 35
million • Quantity 60 million million
• Around 100 million • 150-170 USD • 150-200 Euro
USD • Around 100
USD
Cost vs Volume
Key message
Act on the root causes of losses. Use cost effective, end to end systems /
solutions suitable for Indian conditions
Share experiences of successful implementations by various discoms. Use
best practice examples.
Consider outsourcing metering, billing and collection services where
appropriate
Procurement should be based on quality and cost after assessing the
capability of the vendors. Partner with India based vendors with domain
knowledge.
Before adopting a new technology address issues with people and
processes.
Create an organisation for effective revenue management. Create effective
engineering cells for monitoring, selecting the right technology to solve
the problems. Provide necessary training and exposure.
Launch a mass communication campaign against power theft.
IEEMA is committed to partner
• Must be socially and political acceptable by Indians
• Indian utilities must be able to run with the processes
• Must be cost effective
• Will not be instant or there will be no ‘miracle cures’.
• “Sociology of technology” is critical.
• We need to communicate with the masses
The solutions are available!
And are
Made in India
