AMI rollout strategy and cost-benefit analysis for India

Abstract

This Paper examines, in detail, all aspects related to rollout of Advanced Metering Infrastructure (AMI) in India. It covers key issues such as smart meter standards and specification, testing of smart meters, retrofitting of existing meters, communication technology options, procurement strategy and business models for AMI rollout. Under the UDAY program, Government of India plans to deploy smart meters for all customers with monthly consumption above 200 kWh by December 2019. Distribution Companies (DISCOMs) have the responsibility of choosing the most optimum deployment strategy. While the traditional AMI approach proposes deployment of smart meters for all customers on a feeder, another option is to deploy only for customers having monthly electricity consumption greater than 200 units. Part A of this Paper presents a detailed cost-benefit analysis which strongly advocates deployment of smart meters for all customers on a feeder primarily because of the potential to reduce Aggregate Technical and Commercial (AT&C) losses and the substantially lower cost for the last mile communication network when the full feeder is covered. Part B of this Paper covers a set of recommendations for AMI roll out in India.