Smart Metering: To help Indian

utilities address the revenue

challenge

B. S. Babel - President, IEEMA

Indian Electrical & Electronics Mfg. Association
Indias 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

access to electricity sector is struggling
 Both
central &
state
govt.
involved Discoms
Energy in power accumulat
produced sector ed losses
1200 Twh
70Billion$

240
Energy
million
shortage
consumer
1.0% Indian Power s
Sector- an
Overview

Peak Very High

shortage losses 23-
1.5% 25%

Low
Load revenue /
Growth Per capita
use
6-8% ~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 Quality
Billing
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. Worlds 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 SMARTtoday 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
 24x 7
power
supply

Ma lo ncy
na a d ar
e
ge sp
me an
nt Tr
Key Drivers
-Smart Metering
in India

n R
a tio th edu
gr h eft c
e e
Int wit able los - AT d
se &C
n ew s
re
Improve
d
custome
r
services
Value delivery from smart meter

Adding communication and connect/ disconnect

Planni Smart Reliabi
ng Grid lity

Operati
Data
on ENGG.
efficien Analyti
cy cs
switch Custo Reve Renewa
Asset ble
mer nue
Manage Integrat
Servi leaka
ment ion
ce ge
Field Deman
Billi Mete Crew d
Billi Meteri
Manage
ng ng ring Manag
ng ement ment

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

Lets 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 Wont Pay Losses
defects supplies

Data Fraud Illegal Long Cash Cant 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
Improve revenue and reduce
protection features: High theft
losses : Credit management
Customization based upon
Load / demand side management utilities specific requirements
Last mile (Distribution) is a L-1 buying low initial cost
constraint and many Discoms are expected
loss making
Challenges
in Indian
Poor electrical system High ambient
Contexts
condition due to: temperature
Geography & age of the Dusty and humid in many
network.
areas
Surges, spikes and voltage
variations Poor installation practices
Technology alone cannot solve problems
People, processes and technology must come together

Consider value delivered rather than cost alone

Technology
Cost
effectiveness
People Total cost of Processes
Dedicated IT ownership Simple &
team Sociology of effective
People with technology Transparency in
good analytical service levels
ability Creating multiple
Keeping payment option
abreast with Customer
technology education
Resul
ts
World wide smart metering projects

USA United Australia France

Quantity Kingdom Quantity 2.9 Quantity 35
100 million Quantity 60 million million
Around 100 million 150-170 150-200
USD Around 100 USD Euro
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