Smart Meter
Enhancing Grid Capacity and Efficiency
Overview
A smart meter is a type of energy metering device that collects data from end-users’ devices and measures 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. Smart meters incorporate multiple sensors and control devices, supported by a dedicated communication infrastructure, to facilitate real-time data acquisition and transmission.
Benefits
- DER Integration: Smart meters facilitate the integration of distributed energy resources (DERs) by providing data on energy usage and generation, supporting better management and coordination of these resources within the grid.
- Outage Mitigation: Smart meters improve 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, smart meters contribute to maintaining grid stability, allowing for quick detection of anomalies and more effective responses to fluctuations.
Technology Readiness Level (TRL): 8
While there is a growing range of product offerings for smart meters in the industry, these technologies are still relatively new and have yet to see widespread adoption. As such there is room for product refinement which leaves the smart meters at a TRL 8.
Adoption Readiness Level (ARL)
Value Proposition
Delivered Cost
Low Risk
The life cycle cost of smart meters show cost advantages compared to conventional meters.
The hardware cost of smart meters is slightly higher with some sources estimating costs between $200-$500 compared to $50-$300 for 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 renewable 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 training will be required for technicians for installation but does not pose a significant barrier.
Market Acceptance
Demand Maturity/Market Openness
Low Risk
Significant investments by utilities in smart meter technology, indicating readiness and commitment.
Increasing consumer awareness and acceptance of smart meters and their benefits.
Significant adoption in many regions, particularly in developed countries, indicating 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
Significant investment from both public and private sectors is driving the development and deployment of smart meter technology.
Utilities are making large-scale investments in smart meter infrastructure and related technologies.
Favorable cost-benefit analyses support continued investment in smart meter technology.
Project Development, Integration, and Management
Low Risk
Utilities and technology providers possess significant experience and expertise in managing large-scale smart meter projects.
Infrastructure
Low Risk
Multiple communication technologies are available to make sure smart meter capabilities are 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 are affecting 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.
Companies involved in smart meter manufacturing have extensive supply chain networks to help source materials.
Workforce
Low Risk
The workforce needed to install and maintain traditional meters are skilled technicians that can be trained to remove old meters and replace them with newer smart meters.
License to Operate
Regulatory Environment
Low Risk
Regulation for utilities using smart meters does not change.
The Federal Energy Regulatory Commission (FERC) and relevant state public utility commissions are responsible for overseeing utilities interested in deploying smart meters.
Utilities may face added standards with regard to information security.
Policy Environment
Low Risk
Supportive policies at federal and state levels have fostered a conducive environment for smart meter technology, representing low risk.
Various Energy Policy Acts encourage smart grid technologies, including smart meters for improved electricity reliability and efficiency by providing funding.
Permitting and Siting
Low Risk
The smart meter is typically owned and installed by the utility company as part of the service they offer their customers.
If installation goes beyond the meter itself local regulations may require some form of building permit.
Environmental & Safety
Low Risk
Smart meters are designed to meet stringent environmental and safety standards and contribute to energy efficiency and reduced carbon emissions.
Community Perception
Medium Risk
Some community opposition to smart meters exists siting concerns about data security, privacy, and concerns about higher electricity bills.
More than 120 million smart meters have already been installed and the benefits are being publicized.
Case Studies & Implementation
Southern California Edison’s Smart Connect Advanced Metering Infrastructure
- Lessons Learned: Some features such as remote disconnect and time-varying rates have high potential of adverse impacts for low-income customers.
- Reference: Smart Meter System Deployment Case Study
Smart grid & smart meters: the results of Australia’s trial
- Lessons Learned: Leveraging Smart meter technology to alter electricity consumption patterns, thereby minimizing demand during peak times and decreasing long-term capacity needs.
- Reference: Smart grid & smart meters: the results of Australia’s trial
British Gas and Smart Meters
- Lessons Learned: Smart meters are key to smart homes and grids, optimizing UK energy management with decentralized energy, home automation, and electric cars
- Reference: Executive Summary British Gas and smart meters