Smart Metering Migration Strategies for Energy & Utilities companies (Strategy Focus)

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • 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
• APPENDIX
  • Definitions
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Figures
    • Figure 1: Smart metering functions require an investment in metering assets and devices
    • Figure 2: Complexity in supplier business without data management system
    • Figure 3: Cost-benefit analysis of smart metering/AMI on individual operational area
    • Figure 4: Operational benefits of smart metering
    • Figure 5: Weighing net operational benefits against overall smart metering/AMI costs
    • Figure 6: Benefit of demand response programs
    • Figure 7: AMI Cost-Benefit Analysis for Southern California Edison
    • Figure 8: Three phases of the wider roll-out and adoption strategy and timelines
    • Figure 9: Penetration of smart meter deployment over 7 year strategy