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TABLE OF CONTENTS
Introduction ........................................................................................3
Smart Metering Market Facts .............................................................4
Smart Metering Implementation – Key Focus Areas ...........................5
Role of System Integrator ....................................................................6
Conclusion .........................................................................................11
Appendix ...........................................................................................12
References .........................................................................................12
About the Author 12 .................................................................................
Role of Systems Integrator in Smart Metering Implementation
Smart Metering has become the latest buzzword world over for all, including Governments, Utilities and Regulators owing to
significant benefits achieved by its implementation. Due to continuously evolving technology and lack of global standards,
there lie immense challenges in Smart Metering Implementation for System Integrators.
This white paper focuses on various implementation challenges faced by System Integrators (SI) in terms of choosing right
technology, processes and approach owing to constraints in cost, market structure and size of Utilities..
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IntroductionToday, Smart Metering is no more an “if” but a “when.” Governments, Utilities and Regulators world over understand the
benefits they may get with Smart Metering implementation.
An efficient implementation of Smart Metering can transform the Utility to an entirely new, higher plateau of business
performance and in order to achieve this, IT Systems Integrator (SI) play a pivotal role.
Studies show that as many as 80% of projects fail to meet their technical, cost, or schedule objectives. Some 30% of projects are
cancelled and approximately 50% exceed their original cost estimates. Advanced Metering Infrastructure (AMI) programs are not
immune from these metrics. This white paper outlines the current smart metering market position, key focus area and typical
role of an SI in implementing a Smart Metering Solution.
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Smart Metering Market Facts
Figure 1: Findings from ABI Research
Following graphs show the Smart Metering implementation growth in Europe & in the US from 2006 through 2012 and Smart
Meters installation and expected evolution in Electricity sector in Europe.
In such a rapidly growing AMI market, SI’s play a pivotal role in Smart Metering implementation. Before we see the various roles
that an SI can play, let us see the key focus areas for an SI during a Smart Metering implementation.
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Smart Metering Market Facts
WIPRO TECHNOLOGIES
Role of Systems Integrator in Smart Metering Implementation
The Smart Metering subset isexpected to show a muchhealthier 24% CAGR through2013.
Smart Metering wouldexperience a 24% annualgrowth rate through 2013.(Although world markets forelectric, water and gas metersare increasing at a compoundannual growth rate (CAGR)of only 2%)
By year 2013, 28% of electricmeters are expected to be"smart."
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Role of Systems Integrator in Smart Metering Implementation
Due to the evolving nature of AMI Technology and Mergers & Acquisitions within Utilities, SI's face an ever increasing
challenging situation in any Smart Metering implementation. Utilities expect SI's to have vertical industry experience where in
the SI has complete knowledge of the industry, local/federal regulations, market trends and solutions. It is very essential that an
optimal program approach is taken for any Smart Metering implementation. The key areas where SI's should focus are –
Business Process Assessment, Technology Assessment, Solution Implementation and Benefits Realization
Business Process Assessment: AMI will fail if “Smart Meters” and “Smart System ” are implemented without “Smart Processes”
to support them. Hence it is essential to assess the existing business processes, gaps and AMI regulatory requirements before
arriving at a TO-BE Business process.
Technology Assessment: Technology in AMI is still evolving and arguably in infancy stage. Therefore selecting the right
technology is a big challenge for any SI. Choosing the right vendor for metering products, Meter Data Management (MDM)
solution, communication network and softwares for integrating the various IT systems is very important.
Solution Implementation: Solution Implementation strategy would be different for different Utilities. A smaller Utility may opt
for SaaS Solution. A larger Utility may first want to go for Pilot implementation to verify the proposed business benefits before
taking a Big-Bang approach.
Benefits Realization: What next once “Smart Meters”, “Smart Systems” and Smart “Processes” are put in place? Utilities would
then like to see the ROI of their colossal investments in Smart Metering. Smart Metering implementation promises a lot of
benefits to the Utility. The ultimate success of an SI depends on the Benefits Realization which it can offer to the Utility through
their implementation.
Smart Metering Implementation – Key Focus Areas
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Role of Systems Integrator in Smart Metering Implementation
Today Systems Integrators are capable of playing a wide spectrum role in Smart Metering implementation. With their vertical
industry knowledge they position themselves as an expert. Utilities may want SI’s to not only focus on Assessment, Solution
Implementation and Benefits Realization; they may also want them to play an imperative role in the Business Case
Development. Typically SI’s would perform following roles in any Smart Metering Implementation.
Business case for a Smart Metering implementation is quite well established. Everybody
understands the benefits of transformation from a “dumb” to a “smart” grid. However, if a Utility engages an SI for Business
Case Development, the prime focus for an SI should be to identify the key drivers and challenges of the Utility for Smart
Metering implementation and ascertain a roadmap with clear visibility of Benefits Realization. Once the Business Case and
funding for the proposal is approved by the Utility, it’s time for the SI to walk the talk!
A detailed Business Process and Technology Assessments are required before the Solution options are placed
before the Utility.
• SI should carry out a detailed study of the existing business process and plot the AS-IS
Business Process Map. Some of the Utilities may already have the AS-IS Business Process Map. In such case SI should
verify the AS-IS process before taking the next steps. A To-Be Business Process Map should be plotted based on the
Utility requirements, features of the products selected and industry best practices to arrive at the Gaps. SI should
keenly focus on ensuring that the Gaps are filled as they implement the solution as it is a very essential parameter
measured during Benefits Realization.
• Success of an AMI program largely depends on the technology assessment, which includes
selecting the right products, fit for purpose, from a vendor who has strong market credentials. Technology assessment
should mainly include a feasibility study of the product against the Utility requirements. Currently, there is no
universally adopted AMI specification. Hence, the functionality that is required within the AMI solution needs to be
carefully defined by the SI. Following are the basic requirements of an AMI Solution which an SI should evaluate during
the Technology Assessment.
Business Case Development:
Assessment:
Business Process Assessment:
Technology Assessment:
Role of System Integrator
?An with open standard technology for interfaces and data to prevent the solution from being locked
into a single vendor.
? A which can ensure protection of customers’ personal information in accordance with the legal
and regulatory requirements.
?A secure, open standard, scalable for data exchange.
?A having the ability to remotely energize/de-energize, upgrade the
metering settings, firmware which should be reversible if not successful and can operate in both credit and debit mode.
?Meter which is capable of recording and over configurable time periods enable Time of Use metering and
can record bidirectional energy flow so that customers are encouraged for micro-generation or distributed generation.
?Meter with the ability to for a for any diagnostic purpose, can self locate using GPS and
can act as a gateway for devices connected to the meter at customer end.
?An AMI Solution with robust capabilities having the ability to remotely diagnose meters, network
components and detect & repair (Self Healing) network problems.
? An intelligent AMI solution where it can , can or of meter.
? An which is capable of furnishing following data requirements for different
market players.
Table 1: Application of data obtained by MDM solution
? As part of the Technology Assessment being done for the solution provided by vendor, a thorough Vendor Assessment is
also required about their credentials like – market presence of their product, total cost of ownership, integration ease,
future offerings from the vendor and most importantly, their delivery capabilities.
Interoperable Solution
Secure Metering Solution
two-way communication network
remotely programmable and controllable meter
demand usage
store data configurable duration
network management
detect outages detect theft tampering
MDM Solution
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Role of Systems Integrator in Smart Metering Implementation
Parties Involved Use of Data
DSO (Systems Operator)
Generation (distributed)
Third Party (ESCOs)
Supplier
Customer
Government Body or Regulators
Grid operation, billing, forecast, loss detection, customer service,process automation, customer switching, power quality monitoring
Plant operation
Energy efficiency measures, Input to home and building automation
Billing, Tendering, Forecast, Trading
Decision making
Power quality monitoring, Statistics
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Role of Systems Integrator in Smart Metering Implementation
Solution Implementation: Implementation Approach aspects of Solution Delivery are two important aspects of
Solution Implementation
?Implementation Approach would primarily depend on the Utility requirement and to some extent the size in terms of
customer base of the Utility too. Implementation Approach options should be given due consideration and should be discussed
with the Utility before finalizing the recommended approach.
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Role of Systems Integrator in Smart Metering Implementation
Solution Delivery: is another important aspect of Solution Implementation which includes System Engineering, Testing
and Management.
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Role of Systems Integrator in Smart Metering Implementation
Deployment:
Benefits Realization:
Deployment of Smart Metering Program is very different and challenging from any other Utility systems
integration program. This is mainly attributed to its complexity. Three main challenges in Smart Metering deployment are given
below.
What after Smart meters, Smart Systems and Smart Processes are deployed? Utility would want to
evaluate the ROI which the SI had shown during the Business Case Development. Benefits Realization primarily depends on
how rightly the solution was implemented for the Utility. SI should also be providing solutions for continuous improvement for
the Utility and show them a clear path for reaping more benefits.
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Role of Systems Integrator in Smart Metering Implementation
Smart Metering implementation definitely is not ‘One Size Fits All’. Hence, such implementation requires a lot of due diligence
so as to arrive at an acceptable and customized roadmap. A few utilities may opt for some services under SaaS model. Due to
the colossal investment cost associated with such a program, a Pilot implementation would be a good fit in today’s scenario so
that the performance, customer satisfaction and ROI can be measured faster and learning from the last implementation can be
put in the next implementation.
Political Leaders world over are worried about the energy losses and global warming. They see Smart Metering implementation
as one step in the movement towards minimizing energy losses, which opens up an ocean of opportunities for Smart Metering
System Integrators.
Conclusion
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References
About the Author
• [2007]. Factiva, Accenture Research analysis. Smart metering in the Energy and Utilities Sector, Datamonitor.
• [2007]. ERGEG. Smart Metering with a Focus on Electricity Regulation.
• [2008]. Ketchledge, James. Electric Energy T&D Magazine. Challenges of Implementing AMI.
• Gentry, Malinda; Lich, Joshua. Advanced Metering Infrastructure: The Case for Transformation,
Utilities Project.
• Utility AMI High-Level Requirements Revision 2.7
Bebin Thomas is a Senior Consultant working with Wipro’s Energy & Utilities Domain consulting group. He has been a part of
various large Systems Integration programs in WAM & CIS domain. He can be reached at [email protected].
Appendix
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Role of Systems Integrator in Smart Metering Implementation
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ABOUT WIPRO TECHNOLOGIES
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Role of Systems Integrator in Smart Metering Implementation