An energy-poor country like India needs all the help it can get from emerging technologies. From generation to distribution to consumption, the energy chain in India is fundamentally flawed. Most users are not in the habit of paying for power, the market is not competitive and accumulated losses have resisted most efforts at reduction.
Measuring and managing power consumption is considered one of the solutions plaguing the sector. The rise of Internet of Things (IoT)-based meters is attempting to bring accountability in a poorly regulated sector.
The online dashboard of Energy Efficiency Services Limited (EESL) is open for public viewing. As of November, it shows that 1.4 million smart meters have been installed so far in about 10 states.
EESL’s Smart Meter National Programme has a target to replace about 250 million conventional meters with smart meters in India. “Smart meters are connected through a web-based monitoring system which will help to reduce commercial losses of utilities, enhance revenues and serve as an important tool in power sector reforms,” says EESL.
The programme is executed under a model where the investment and operating expenses are borne by EESL and the states/utilities are not required to invest upfront.
“Electric utilities across South Asia are forecast to invest $25.9 billion over the next decade in smart metering, grid automation and other smart grid market segments. India makes up the vast majority of the South Asian market and will represent $22.5 billion of the total investment,” says the market forecast by research firm Northeast Group.
A smart meter is connected from the user’s location to the service provider and can send data at 30-minute intervals. The service provider can get regular updates and manage its billing more efficiently. These IoT-based meters also generate data on peak and non-peak time usage at a very granular level. Electricity service providers can track consumption almost on an hourly basis for each neighbourhood. With improved regulation, service providers will be able to price power in a more dynamic manner to manage consumption. Such meters proved to be especially useful during the Covid lockdown months, where physical inspection of older meters was not possible.
A smart meter is connected from the user’s location to the service provider and can send data at 30-minute intervals. The service provider can get regular updates and manage its billing more efficiently
In the post-Covid environment, electricity consumption patterns have shifted to reflect the work-from-home environment. The consumption has shifted away from commercial areas to residential areas.
“Project slowdowns seem to have dissipated, and a slight uptick in meter deployments is forecast for 2021 and 2022 to account for lost 2020 deployments. Additionally, in the midst of a society under lockdown, the advantages of remote-controlled, two-way metering have become abundantly clear,” says the Northeast Group report.
The installation of smart meters has bought visible reduction in costs and losses. EESL has recorded billing efficiency improvement of 21 per cent and transmission loss reduction of 11-36 per cent in the regions with smart meters.
While about 10 states have adopted smart meters, many are yet to warm up to the idea. The national targets set by the ministry of power and EESL are pretty ambitious, but the rollout will have to be accelerated for a strong impact on the revenues of power utilities. The deployment so far has proven the efficacy and important of IoT-based smart meters.
Linking the use of smart meters to the Smart Cities project has helped. Here again, the pace of change needs a boost from state governments. Several states have warmed up to using artificial intelligence and blockchain-related applications for various governance measures. This should encourage them to use IoT-based meters, which can generate tremendous data to support energy policy.
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