Advanced Metering Infrastructure and Smart Grid Bring Intelligence to Electricity
Advanced Metering Infrastructure (AMI) and the Smart Grid are redefining another form of energy efficiency, and this Market Outlook covers the prospects for these new technologies exclusively, rather than combining them with legacy technologies such as electromechanical or solid-state metering and Automated Meter Reading.AMI is a technology for automatically collecting interval energy consumption data, managing this data, and making it available to the business processes of the utility and also to the energy consumer. AMI provides consumers with the ability to use energy more efficiently and provides utilities with the ability to transform many of their existing business processes and thus to operate their electric systems more effectively.
The Smart Grid is a network serving electricity transmission and distribution that uses robust two-way communications, advanced sensors, and distributed computing to improve the efficiency, reliability and safety of power delivery and use. This evolving intelligent power network facilitates demand response, the connection and integration of distributed generation resources (including plug-in hybrid vehicles and small solar systems), and the full inclusion of residential utility customers and their home appliances as participants in the economic and stable operation of the electric grid.
The AMI networks between the smart meters and utility business systems allow collection and distribution of energy information to customers, suppliers, utility companies, and service providers. This enables a change in energy usage patterns � either in response to changes in price or as incentives designed to encourage lower energy use at times of peak-demand or higher prices, or during periods of stress and low operational grid reliability.
Strategic Issues
Both regulators and the electric utilities are exhibiting a cautious optimism, and the current approach is to work with the suppliers to develop a roadmap and pilot projects before undertaking an implementation that might require several years and millions of smart meters. Nevertheless, the industry as a whole believes this is a necessity. In order to create momentum, suppliers must increase their value proposition to utility customers.
- How can suppliers increase their value?
- Are different strategies required for different customers?
- Are additional strategic partners necessary?
- How risky are large multi-year contracts?
- What will be the role of the various standards during these long AMI implementation phases?
- When and how will AMI and Smart Grid systems fully adopt the Internet protocols?
