Smart Metering in the Energy and Utilities Sector (Review Report)

Table of Contents

• OVERVIEW
  • Catalyst
  • Summary
  • Methodology
• EXECUTIVE SUMMARY
  • Introduction
  • The impact of smart metering on the energy and utilities market (Market Focus)
  • Smart metering migration strategies for energy and utilities companies (Strategy Focus)
  • The future of metering technology (Technology Focus)
  • Smart metering forecast for North America and Europe, 2006-12 (Databooks)
• TABLE OF CONTENTS
• TABLE OF FIGURES
• TABLE OF TABLES
• THE IMPACT OF SMART METERING ON THE ENERGY AND UTILITIES MARKET (MARKET FOCUS)
  • Summary
  • Smart meters have moved beyond AMR and offer a wide variety of functionality
    • The introduction of solid-state meters led to the expansion of AMR
    • Smart meters offer a wealth of functionality that appeals to multiple stakeholders
    • Advanced Metering Infrastructure (AMI) supports the increased functionality of smart metering
    • Residential electricity metering is a priority
  • Legislation is driving implementation but more regulation is needed
    • Smart meter legislation is an important part of the solution to a variety of issues facing governments today
      • Energy Policy Act, 2005 - section 1252 (USA)
      • Energy Conservation Responsibility Act, 2006 (Canada)
      • Energy End Use Efficiency and Energy Services Directive, 2006 - Article 13 (EU)
    • Operational benefits and demand management are also key drivers for other energy stakeholders
    • Further regulation will be necessary to overcome smart metering challenges
      • Avoiding low-cost meters by standardizing assets
      • Ensuring interoperability to avoid ' stranded' assets
      • Regulation and help is on the way
  • Smart metering is expected to have a positive impact on carbon reductions
    • Nordics lead the way but North America is quick on the uptake
    • Evidence suggests that smart metering will help meet government goals
• SMART METERING MIGRATION STRATEGIES FOR ENERGY AND UTILITY COMPANIES (STRATEGY FOCUS)
  • Summary
  • The move to smart metering will involve a substantial overhaul of existing systems
    • New meter technology and hardware will be a significant outlay
      • Meter assets and meter devices
      • Hardware at supplier-end of value chain
    • Enhanced networking and communications will be necessary to deal with two-way communication
    • New software and integration will be crucial to meet the needs of multiple stakeholders
  • Developing an effective business case is fundamental to the adoption of smart metering
    • Developing a business case requires looking at different operational areas impacted
      • Cost-benefit analysis for individual operational areas is required initially
      • Operational benefits primarily accrue by reducing theft
      • Overall AMI costs typically outweigh the net operational benefits
    • Demand management benefits also need to be taken into consideration
      • Demand response programs deliver the main benefits of demand management
      • Benefits from supplier load management also
  • There are a variety of internal challenges that must also be addressed
    • Developing a wider roll-out and adoption strategy is vital
      • Planning
      • Procurement
      • Deployment
    • Marketing is another key challenge that needs to be overcome to ensure success is achieved
      • Marketing will be crucial
      • Full internal participation must be coupled with executive sponsorship of the migration process
      • Transparency and revisions are also essential
• THE FUTURE OF METERING TECHNOLOGY (TECHNOLOGY FOCUS)
  • Summary
  • Smart metering assets must be part of an in-home network
    • Smart metering supports functionalities that require networking with a number of peripheral assets
    • ZigBee has arisen as a key wireless networking solution for smart metering
  • Wider communications infrastructure is where most innovation is currently occurring
    • Traditional smart metering solutions rely on Power Line Carrier and Radio Frequency communication
    • A variety of other network communication possibilities are arising for smart metering
    • Optimal infrastructure will typically involve a blend of networks
  • Meter Data Management software is vital to meet the various end-user needs
    • Meter Data Management is a necessary interface between the AMI network and back-office systems
    • Installing MDM is a preferable solution to manually built alternatives
    • MDM has multiple benefits that will reduce costs
      • Case Study: Southeastern Utility, USA
  • Vendors must seek ways to be competitive in the smart metering market
    • Vendors need to ensure products are technologically future-proof and compatible with other vendors
      • Entering partnerships with other vendors is an attractive way to offer holistic solutions
      • Mergers and acquisitions are another important way of expanding vendors' solution sets
      • Vendors need to remain alert to regulation and legislation
• SMART METERING PENETRATION FORECAST FOR NORTH AMERICA, 2006-12 (DATABOOK)
  • Introduction
  • Smart meter penetration in North America, 2006-12
  • Smart meter penetration in Canada, 2006-12
  • Smart meter penetration in United States, 2006-12
  • Smart meter penetration in US-Northeast, 2006-12
  • Smart meter penetration in US-Midwest, 2006-12
  • Smart meter penetration in US-South, 2006-12
  • Smart meter penetration in US-West, 2006-12
• SMART METERING PENETRATION FORECAST FOR EUROPE, 2006-12 (DATABOOK)
  • Introduction
  • Smart meter penetration in Europe, 2006-12
  • Smart meter penetration in ' Big 5' , 2006-12
  • Smart meter penetration in ' Big 5' , 2006-12
  • Smart meter penetration in Benelux, 2006-12
  • Smart meter penetration in Nordics, 2006-12
  • Smart meter penetration in Rest of Western Europe (RoWE), 2006-12
  • Smart meter penetration in New EU-10 (NEU10), 2006-12
  • Smart meter penetration in Rest of Europe (RoE), 2006-12
  • Smart meter penetration in Austria, 2006-12
  • Smart meter penetration in Belgium, 2006-12
  • Smart meter penetration in Bulgaria, 2006-12
  • Smart meter penetration in Cyprus, 2006-12
  • Smart meter penetration in Czech Republic, 2006-12
  • Smart meter penetration in Denmark, 2006-12
  • Smart meter penetration in Estonia, 2006-12
  • Smart meter penetration in Finland, 2006-12
  • Smart meter penetration in France, 2006-12
  • Smart meter penetration in Germany, 2006-12
  • Smart meter penetration in Greece, 2006-12
  • Smart meter penetration in Hungary, 2006-12
  • Smart meter penetration in Ireland, 2006-12
  • Smart meter penetration in Italy, 2006-12
  • Smart meter penetration in Latvia, 2006-12
  • Smart meter penetration in Lithuania, 2006-12
  • Smart meter penetration in Luxembourg, 2006-12
  • Smart meter penetration in Malta, 2006-12
  • Smart meter penetration in Netherlands, 2006-12
  • Smart meter penetration in Norway, 2006-12
  • Smart meter penetration in Poland, 2006-12
  • Smart meter penetration in Portugal, 2006-12
  • Smart meter penetration in Romania, 2006-12
  • Smart meter penetration in Russian Federation, 2006-12
  • Smart meter penetration in Slovakia, 2006-12
  • Smart meter penetration in Slovenia, 2006-12
  • Smart meter penetration in Spain, 2006-12
  • Smart meter penetration in Sweden, 2006-12
  • Smart meter penetration in Switzerland, 2006-12
  • Smart meter penetration in United Kingdom, 2006-12
• APPENDIX
  • Definitions
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: New communications infrastructure is driving new AMR opportunities
    • Table 2: Smart meter penetration in North America, 2006-12
    • Table 3: Smart meter penetration in Canada, 2006-12
    • Table 4: Smart meter penetration in United States, 2006-12
    • Table 5: Smart meter penetration in US-Northeast, 2006-12
    • Table 6: Smart meter penetration in US-Midwest, 2006-12
    • Table 7: Smart meter penetration in US-South, 2006-12
    • Table 8: Smart meter penetration in US-West, 2006-12
    • Table 9: Smart meter penetration in Europe, 2006-12
    • Table 10: Smart meter penetration in Big 5, 2006-12
    • Table 11: Smart meter penetration in Benelux, 2006-12
    • Table 12: Smart meter penetration in Nordics, 2006-12
    • Table 13: Smart meter penetration in RoWE, 2006-12
    • Table 14: Smart meter penetration in NEU10, 2006-12
    • Table 15: Smart meter penetration in RoE, 2006-12
    • Table 16: Smart meter penetration in Austria, 2006-12
    • Table 17: Smart meter penetration in Belgium, 2006-12
    • Table 18: Smart meter penetration in Bulgaria, 2006-12
    • Table 19: Smart meter penetration in Cyprus, 2006-12
    • Table 20: Smart meter penetration in Czech Republic, 2006-12
    • Table 21: Smart meter penetration in Denmark, 2006-12
    • Table 22: Smart meter penetration in Estonia, 2006-12
    • Table 23: Smart meter penetration in Finland, 2006-12
    • Table 24: Smart meter penetration in France, 2006-12
    • Table 25: Smart meter penetration in Germany, 2006-12
    • Table 26: Smart meter penetration in Greece, 2006-12
    • Table 27: Smart meter penetration in Hungary, 2006-12
    • Table 28: Smart meter penetration in Ireland, 2006-12
    • Table 29: Smart meter penetration in Italy, 2006-12
    • Table 30: Smart meter penetration in Latvia, 2006-12
    • Table 31: Smart meter penetration in Lithuania, 2006-12
    • Table 32: Smart meter penetration in Luxembourg, 2006-12
    • Table 33: Smart meter penetration in Malta, 2006-12
    • Table 34: Smart meter penetration in Netherlands, 2006-12
    • Table 35: Smart meter penetration in Norway, 2006-12
    • Table 36: Smart meter penetration in Poland, 2006-12
    • Table 37: Smart meter penetration in Portugal, 2006-12
    • Table 38: Smart meter penetration in Romania, 2006-12
    • Table 39: Smart meter penetration in Russian Federation, 2006-12
    • Table 40: Smart meter penetration in Slovakia, 2006-12
    • Table 41: Smart meter penetration in Slovenia, 2006-12
    • Table 42: Smart meter penetration in Spain, 2006-12
    • Table 43: Smart meter penetration in Sweden, 2006-12
    • Table 44: Smart meter penetration in Switzerland, 2006-12
    • Table 45: Smart meter penetration in United Kingdom, 2006-12
  • List of Figures
    • Figure 1: Key functionalities associated with smart metering
    • Figure 2: The benefits of smart metering accrue across the whole value chain
    • Figure 3: A simplified view of Advanced Metering Infrastructure
    • Figure 4: Percentage of smart meters shipped in 2001
    • Figure 5: Drivers facilitating governmental adoption of smart metering legislation
    • Figure 6: Using Critical Peak Pricing (CPP) to help reduce loads at peak times
    • Figure 7: Smart metering penetration in North America and Europe, 2006-2012
    • Figure 8: Case Study: Enel, Italy
    • Figure 9: Reductions in carbon emissions as a result of smart metering introduction
    • Figure 10: Smart metering functions require an investment in metering assets and devices
    • Figure 11: Complexity in supplier business without data management system
    • Figure 12: Cost-benefit analysis of smart metering/AMI on individual operational area
    • Figure 13: Operational benefits of smart metering
    • Figure 14: Weighing net operational benefits against overall smart metering/AMI costs
    • Figure 15: Benefit of demand response programs
    • Figure 16: AMI Cost-Benefit Analysis for Southern California Edison
    • Figure 17: Three phases of the wider roll-out and adoption strategy and timelines
    • Figure 18: Penetration of smart meter deployment over 7 year strategy
    • Figure 19: Wireless networking solutions for in-home smart metering devices
    • Figure 20: In-home network for smart metering assets
    • Figure 21: Using a Power Line Carrier (PLC) network to transfer smart meter data
    • Figure 22: Wireless mesh network for smart metering
    • Figure 23: MDM system
    • Figure 24: Smart meter penetration in North America, 2006-12
    • Figure 25: Smart meter penetration in Canada, 2006-12
    • Figure 26: Smart meter penetration in United States, 2006-12
    • Figure 27: Smart meter penetration in US-Northeast, 2006-12
    • Figure 28: Smart meter penetration in US-Midwest, 2006-12
    • Figure 29: Smart meter penetration in US-South, 2006-12
    • Figure 30: Smart meter penetration in US-West, 2006-12
    • Figure 31: Smart meter penetration in Europe, 2006-12
    • Figure 32: Smart meter penetration in Big 5, 2006-12
    • Figure 33: Smart meter penetration in Benelux, 2006-12
    • Figure 34: Smart meter penetration in Nordics, 2006-12
    • Figure 35: Smart meter penetration in RoWE, 2006-12
    • Figure 36: Smart meter penetration in NEU10, 2006-12
    • Figure 37: Smart meter penetration in RoE, 2006-12
    • Figure 38: Smart meter penetration in Austria, 2006-12
    • Figure 39: Smart meter penetration in Belgium, 2006-12
    • Figure 40: Smart meter penetration in Bulgaria, 2006-12
    • Figure 41: Smart meter penetration in Cyprus, 2006-12
    • Figure 42: Smart meter penetration in Czech Republic, 2006-12
    • Figure 43: Smart meter penetration in Denmark, 2006-12
    • Figure 44: Smart meter penetration in Estonia, 2006-12
    • Figure 45: Smart meter penetration in Finland, 2006-12
    • Figure 46: Smart meter penetration in France, 2006-12
    • Figure 47: Smart meter penetration in Germany, 2006-12
    • Figure 48: Smart meter penetration in Greece, 2006-12
    • Figure 49: Smart meter penetration in Hungary, 2006-12
    • Figure 50: Smart meter penetration in Ireland, 2006-12
    • Figure 51: Smart meter penetration in Italy, 2006-12
    • Figure 52: Smart meter penetration in Latvia, 2006-12
    • Figure 53: Smart meter penetration in Lithuania, 2006-12
    • Figure 54: Smart meter penetration in Luxembourg, 2006-12
    • Figure 55: Smart meter penetration in Malta, 2006-12
    • Figure 56: Smart meter penetration in Netherlands, 2006-12
    • Figure 57: Smart meter penetration in Norway, 2006-12
    • Figure 58: Smart meter penetration in Poland, 2006-12
    • Figure 59: Smart meter penetration in Portugal, 2006-12
    • Figure 60: Smart meter penetration in Romania, 2006-12
    • Figure 61: Smart meter penetration in Russian Federation, 2006-12
    • Figure 62: Smart meter penetration in Slovakia, 2006-12
    • Figure 63: Smart meter penetration in Slovenia, 2006-12
    • Figure 64: Smart meter penetration in Spain, 2006-12
    • Figure 65: Smart meter penetration in Sweden, 2006-12
    • Figure 66: Smart meter penetration in Switzerland, 2006-12
    • Figure 67: Smart meter penetration in United Kingdom, 2006-12