Smart Metering in Power Distribution – Industry Profile – India

Electric utilities in Western Europe and North America began deploying Smart Metering or Advanced Metering Infrastructure (AMI) in the early 21st century. Today, over 1.15 billion smart meters are in operation globally. India is rapidly rolling out 250 million smart meters and can leapfrog to AMI 2.0 by leveraging global best practices.

Smart Meters
Smart meters eliminate manual readings, improving efficiency, accuracy, and cost savings. They record usage every 15 minutes and store data for 45 days, enabling real-time monitoring for consumers and utilities. Their ability to detect outages enhances grid reliability.

India has a national smart meter standard (IS:16444, IS:15959 Part-2) and over 80 BIS-certified manufacturers with an annual capacity of over 100 million meters. Competitive pricing and import restrictions limit foreign participation, ensuring domestic supply meets demand.

Communication System
AMI requires two-way communication between meters and utility servers. Globally, RF Mesh is widely used, while PLC and cellular networks are also popular. India primarily uses cellular technology, followed by RF Mesh and hybrid solutions.

AMI Software Solutions
Key AMI software includes the Head-End System (HES) for data collection and Meter Data Management (MDM) for processing and integration with billing and other utility applications. A single MDM per utility is recommended for cost efficiency, data consistency, and streamlined operations.

A Smart Meter Operations Centre (SMOC) enhances grid management through real-time analytics, demand forecasting, and asset optimization. Proper MDM selection, middleware integration, and cloud-based infrastructure are crucial for large-scale deployments, typically requiring 6-9 months for implementation.

Current State

In 2021, the Government of India (GOI) launched the world’s largest smart metering program under the Revamped Distribution Sector Scheme (RDSS) to replace 250 million electricity meters with smart prepayment meters across state-run Discoms. The rollout involves appointing an AMI Services Provider (AMISP) to implement and maintain the system for ten years, charging a monthly fee per meter based on service level agreements (SLAs).

GOI covers 15% of project costs as a grant to Discoms, passed on to AMISPs. Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) are the nodal agencies, each overseeing half of the Discoms. A standard bidding document (SBD) by REC mandates uniform procurement, and only empaneled AMISPs—51 as of September 2023—can bid, though most lack smart metering experience.

AMISPs must maintain the AMI system for 93 months post-commissioning, including meter replacements, connectivity upkeep, IT upgrades, and cybersecurity compliance. Steep penalties apply for SLA violations, requiring careful risk assessment in project budgeting.

This screenshot from NSGM website pretty much sums up the current state of smart meter deployment across India. Source: https://www.nsgm.gov.in/en/state-wise-map

Market Size

  • Under Revamped Distribution Sector Scheme (RDSS), Govt of India aims to install 250 million smart meters between by 2025-26. The opportunity is estimated to be worth USD 20-25 billion.
  • As of 15 August 2023, the nodal agencies have approved AMI projects for 230 million meters, with contracts awarded for 56 million, while the rest are in various tendering stages.

Key Trends

  • Smart Meter Deployment: Rapid expansion of smart meter installations across India.
  • AMI Integration: Adoption of advanced metering infrastructure for real-time data collection and analysis.
  • Prepaid Smart Metering: Increasing preference for prepaid smart meters to improve revenue collection.
  • IoT and Data Analytics: Integration of IoT and data analytics for grid management and consumer engagement.
  • Cybersecurity: Growing emphasis on cybersecurity measures to protect smart meter infrastructure.
  • Integration with Renewable Energy: Smart meters are playing a vital role in integrating distributed renewable energy sources into the grid.

Challenges

  • Infrastructure Gaps: Upgrading existing infrastructure to support smart meter deployment.
  • Financial Constraints: High upfront costs of smart meter implementation.
  • Interoperability Issues: Ensuring seamless integration of different smart meter systems.
  • Cybersecurity Risks: Protecting smart meter infrastructure from cyberattacks.
  • Skilled Workforce: Availability of skilled personnel for installation and maintenance.
  • Consumer Awareness: Educating consumers about the benefits of smart meters.
  • Regulatory Complexity: Navigating varying regulations across states.

Future Outlook

  • The Indian electricity metering industry is poised for significant growth, driven by government initiatives and technological advancements.
  • The focus will be on:
    • Nationwide smart meter deployment.
    • Enhanced data analytics and AI for grid management.
    • Robust cybersecurity measures.
    • Integration of smart meters with smart grids and distributed energy resources.

Key Players

  • Ministry of Power: Government of India https://powermin.gov.in/
  • Power Grid Corporation: India’s largest electric power transmission utility and a nodal agency for RDSS program https://www.powergrid.in/en
  • Rural Electrification Corporation: REC provides long terms loans and other financing products for creation of infrastructure assets in the country. It is also a nodal agency for RDSS program. https://recindia.nic.in/?lang=en
  • Power Finance Corporation: Provides financing for the Indian power sector. https://pfcindia.com/ensite
  • Genus Power Infrastructures Ltd.: A leading player in electricity metering solutions. https://genuspower.com/
  • HPL Electric & Power Ltd.: A major manufacturer of energy meters and related products. https://www.hplindia.com/
  • Larsen & Toubro (L&T): Involved in smart grid and AMI solutions. https://www.larsentoubro.com/
  • Secure Meters Ltd.: A prominent supplier of smart meters and energy management systems. https://www.securemeters.com/
  • Schneider Electric India: Provides smart metering and grid automation solutions. https://www.se.com/in/en/
  • Siemens India: A technology company focused on industry, infrastructure, digital transformation, transport as well as transmission and generation of electrical power. https://www.siemens.com/in/en
  • Fluentgrid Limited: Leading software product vendor and system integrator in the AMI space. https://fluentgrid.com/
  • Cyan Connode: World leader in the design and development of Narrowband RF mesh networks that enable Omni Internet of Things (IoT) communications. https://cyanconnode.com
  • IntelliSmart Infrastructure: India’s leading smart metering and digital solutions provider, a joint venture of the National Investment and Infrastructure Fund (NIIF) and Energy Efficiency Services Limited (EESL) https://www.intellismartinfra.in/
  • Kimbal Technologies: A technology company providing innovative solutions for utilities, focusing on advanced metering infrastructure, smart meters, and head-end systems. https://kimbal.io/

Key Personalities/Influencers

Industry Forums/Associations

  • India Smart Grid Forum (ISGF): A think-tank of global repute on energy transition, electric mobility and grid modernization. https://indiasmartgrid.org/
  • Indian Electrical & Electronics Manufacturers’ Association (IEEMA): Represents the Indian electrical equipment industry. https://ieema.org/

Standardization/Regulatory Bodies

  • Bureau of Indian Standards (BIS): which develops and enforces standards like IS 16444, and also adopted Wi-SUN Alliance FAN for smart meter RF communication. https://www.bis.gov.in/
  • Central Electricity Authority of India (CEA): Advises the government on policy matters and formulates plans for the development of electricity systems. https://cea.nic.in/
  • Regulations by the Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERCs): Govern various aspects of the electricity sector, including metering. https://www.cercind.gov.in/

Industry Standards

  • DLMS/COSEM: Standard protocol for smart meter communication.
  • Bureau of Indian Standards (BIS): IS 16444 (technical requirements for smart meters), IS 15959 Part-2 (data communication), and Wi-SUN Alliance FAN (Field Area Networks) specification (as included in IEEE 2857-2021) as the national standard for RF communication networks,

Policies/Programs/Schemes Affecting the Industry

Popular Industry Events

  • India Smart Utility Week (ISUW): India Smart Grid Forum (ISGF) has been organising its flagship annual event, India Smart Utility Week (ISUW) since 2015 and it is considered as one of the top international events on power distribution, utilities, Smart Grids, Electric Mobility and Smart Energy. The event was initially known as India Smart Grid Week – ISGW. https://www.isuw.in/
  • ELECRAMA: ELECRAMA is the flagship showcase of the Global Electrical Industry and the largest gathering of the power sector ecosystem in the world. From source to socket and all points in between, ELECRAMA unites the whole range of solutions that powers the earth. https://elecrama.com/
  • Distribution Utility Meet (DUM): DUM provides a platform for the DISCOM community to share each other’s experiences and efforts towards fast-track automation and digitalization. Towards this objective, ISGF has been organizing Distribution Utility Meet (DUM) since 2017. https://dumindia.in/
  • DISTRIBUTECH India: Stemming from DISTRIBUTECH International, and co-located with Bharat Electricity, POWERGEN India and Indian Utility Week, the event gives access to high-quality regional buyers across the entire end-to-end value chain of power generation, distribution and digital transformation. https://www.powergen-india.com/co-located-events/distributech-india
  • IT & OT in Power: Organized by India Infrastructure group. Annual event usually held in September in New Delhi. Covers generation, transmission and distribution. http://www.indiainfrastructure.com

 

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