AMI 2.0
Page last updated 09/26/2025
Overview
Advanced Metering Infrastructure (AMI), or Smart Meters, are energy metering devices that collect data from end-users’ devices and measure their energy consumption in real-time. This data is then transmitted to the utility company and/or system operator, providing superior quality information for grid operations and system planning. AMI 2.0 incorporates multiple sensors and control devices, supported by a dedicated communication infrastructure, to facilitate real-time data acquisition and transmission.
Benefits
- Inverter-Based Systems Integration: AMI 2.0 facilitates the integration of inverter-based systems by providing data on energy usage and generation, supporting better management and coordination within the grid.
- Outage Mitigation: AMI 2.0 improves restoration efforts by providing real-time information on outages and consumption patterns, enabling faster responses to faults and better situational awareness for utility operators.
- Reduced Grid Stability: By offering real-time monitoring and data analytics, AMI 2.0 contributes to maintaining grid stability, allowing for quick detection of anomalies and more effective responses to fluctuations.
Technology Readiness Level (TRL): 9
Meters, sensors, and communication infrastructure to support AMI 2.0 exist on the commercial market.
Adoption Readiness Level (ARL)
Value Proposition
Delivered Cost
Low Risk
The life cycle cost of AMI 2.0 shows cost advantages compared to conventional meters.
The hardware cost of AMI 2.0 is slightly higher with some sources estimating costs between 2 and 4 times higher than traditional meters (analog or digital).
Functionality Performance
Low Risk
High accuracy and real-time data capabilities suggest a high level of maturity.
Enhanced outage management and restoration efficiency are key performance indicators.
Effective integration with variable energy sources and grid stability support indicates advanced functionality.
Ease of Use/Complexity
Low Risk
User-friendly interfaces for consumers to monitor real-time energy usage and manage consumption.
Remote operation of the meter does not require technicians to physically visit the meter.
Some additional installation training is required for technicians but does not pose a significant barrier.
Market Acceptance
Demand Maturity/Market Openness
Low Risk
Significant investments by utilities in smart metering technology, indicating readiness and commitment.
Increasing consumer awareness and acceptance of AMI 2.0 and its benefits.
Adoption in many regions, particularly in developed countries, indicates high demand maturity.
Market Size
Low Risk
In the U.S. nearly 120 million smart meters have been installed as of 2022 with a potential to serve 145 million customers.
Smart meter usage is projected to hit 93% between 2021 and 2027.
Downstream Value Chain
Low Risk
Presence of established manufacturers with robust supply chains ensuring consistent quality and supply.
Availability of professional services for installation and integration, ensuring efficient deployment.
Resource Maturity
Capital Flow
Low Risk
Investment from both public and private sectors is driving the development and deployment of AMI 2.0.
Utilities are making large-scale investments in metering infrastructure and related technologies.
Favorable cost-benefit analyses support continued investment in AMI 2.0 technology.
Project Development, Integration, and Management
Low Risk
Utilities and technology providers possess significant experience and expertise in managing large-scale metering projects.
Infrastructure
Low Risk
Multiple communication technologies are available to make AMI 2.0 capabilities accessible.
The large market penetration that has occurred shows infrastructure constraints are not a barrier to deployment.
Manufacturing and Supply Chain
Low Risk
Some supply chain disruptions have delayed deployment in recent years although those disruptions affected advanced manufacturing more broadly.
Recent disruptions were associated with the COVID pandemic.
Materials Sourcing
Low Risk
Many large electronics manufacturers are involved in smart meter production.
Manufacturing companies have extensive supply chain networks to source materials.
Workforce
Low Risk
Existing technicians can be trained to remove old meters and replace them with newer meters with AMI 2.0 capabilities.
License to Operate
Regulatory Environment
Low Risk
Regulation for utilities using existing smart meters does not change.
Federal and relevant state public utility commissions are responsible for overseeing utilities interested in deploying AMI 2.0.
Utilities may face added standards regarding information security.
Policy Environment
Low Risk
Supportive policies at federal and state levels have fostered a conducive environment for AMI 2.0 technology.
Various Acts encourage smart grid technologies, including AMI 2.0, for improved electricity reliability and efficiency by providing funding.
Permitting and Siting
Low Risk
The AMI 2.0 is typically owned and installed by the utility company as part of the service offered to customers.
If installation goes beyond the meter itself, local regulations may require some form of building permit.
Environmental & Safety
Low Risk
AMI 2.0 is designed to meet environmental and safety standards and contribute to energy efficiency.
Community Perception
Medium Risk
Some community opposition to smart metering exists, siting concerns about data security, privacy, and concerns about higher electricity bills.
Case Studies & Implementation
Study of Smart Meter System Deployment
The Division of Ratepayer Advocates, an independent division within the California Public Utilities Commission (CPUC), published a study on Southern California Edison’s smart meter program.
https://docs.cpuc.ca.gov/PublishedDocs/EFILE/EXP/163180.PDF
Smart grid & smart meters: the results of Australia’s trial
Published results from the “Smart Grid, Smart City” commercial-scale trial of smart meters in Australia.