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SMART METERING

HANDBOOK

FABIO TOLEDO



SMART METERING

HANDBOOK

FABIO TOLEDO



Disclaimer: Te recommendations, advice, descriptions, and the methods in thisbook are presented solely or educational purposes. Te author and publisher assumeno liability whatsoever or any loss or damage that results rom the use o any o the

material in this book. Use o the material in this book is solely at the risk o the user.

Copyright© 2013 by PennWell Corporation1421 South Sheridan Roadulsa, Oklahoma 74112-6600 USA

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Library o Congress Cataloging-in-Publication Data

oledo, Fabio.

Smart metering handbook / Fabio oledo. pages cm Includes bibliographical reerences and index. ISBN 978-1-59370-298-41. Electric meters--Handbooks, manuals, etc. 2. Smart power grids--Handbooks,manuals, etc. I. itle. K351.65 2013 621.37’3--dc23 2013007378

All rights reserved. No part o this book may be reproduced, stored in a retrievalsystem, or transcribed in any form or by any means, electronic or mechanical, includingphotocopying and recording, without the prior written permission o the publisher.

Printed in the United States o America

1 2 3 4 5 17 16 15 14 13



I dedicate this book to my beloved parents, Iara and Henrique, tomy loving wie, Erica, and to everyone who gave me valuable advice,understanding, patience, support, and who sacrificed their leisure time orthe benefit o this work. I also dedicate it to all the other members o myamily and riends and colleagues who directly or indirectly contributed tothe success o this book.



vii

Contents

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ixPreface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiiiAcknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xv

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Smart Metering System Projects: International View . . . . . . . . . . . . . .1Advantages versus Constraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Methodology and Structure o the Book . . . . . . . . . . . . . . . . . . . . . . . . .3Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Chapter 1: Energy Metering Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Electricity Measurements Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Energy Metering Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Prepayment Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39elemetry and elecommand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53

Revenue Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65

Chapter 2: Smart Metering Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67

echnical Architectures or Energy Smart Metering Systems . . . . . .69Communication echnologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115Data Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131Data Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136

Interoperability Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145



Smart Metering Handbook

viii

Chapter 3: International Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

International Benchmarking Exercise . . . . . . . . . . . . . . . . . . . . . . . . 148International Drivers and Opportunities. . . . . . . . . . . . . . . . . . . . . . 170

Innovative Rates and Payment Systems . . . . . . . . . . . . . . . . . . . . . . . 195Main Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209

Chapter 4: Building the Technical Solution . . . . . . . . . . . . . . . . . . . . . . 211

Gathering Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212Defining Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218echnical Evaluation Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223

Pilot Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233Procurement Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246

Chapter 5: International Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249

Streetlight Platorms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250Electric and Plug-in Hybrid Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . 257Smart Homes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266Smart Grids. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273

Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279

Smart Metering Progress: Te Big Picture. . . . . . . . . . . . . . . . . . . . . 279Defining the Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281What’s Next? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283List o Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307



ix

ForewordIn Brazil, there are only a ew active companies that are more than a

hundred years old. One o these is Light—the electric power company in Riode Janeiro. Light began as a private Canadian company and subsequentlybecame a Brazilian government–controlled entity. In 1996, Light wasprivatized, and control was acquired by the French utility company EDF.In 2006, Light became a private Brazilian company with shares traded onthe stock market.

Fabio oledo was 14 years old when he began working at Light. At thattime, the company was still state-owned. He went through all the stages o

the long process o proessional development, starting as an apprentice andeventually becoming the manager o the Metering Department (duringthe French administration), responsible or new technologies and revenueprotection or large accounts. He learned by practicing and studying—practicing and studying a lot!

Energy thef has been one o the aces o the decadence o Rio deJaneiro since the capital moved rom Rio to Brasilia in the early 1960s.Fighting this social plague then as well as now is a difficult and, in somecircumstances, dangerous task. In the early 2000s in Rio, the governmentound itsel upable to govern some o the poor areas o the city, known asFavelas, and criminal gangs took control o those areas. Some large energyconsumers were also stealing high volumes o energy rom the distributionnetwork, to the extent o hundreds o thousands o U.S. dollars per month.Light employees aced risky situations fighting energy thef. oday the riskis lower, but still present.

More than an economic challenge to receive air payment or goods andservices delivered, the challenge is also a social one. In the Favelas, where

the power utilities have the most problems with thef, there is also whateconomists call the “tragedy o the commons.” Tere, citizens eel the accessto the product is a social right and one that can be reely accessed withoutconcerns about costs or consequences to neighbors or society. When localinhabitants seek only their individual interests, perorming unauthorizedor illegal activities within the electricity distribution network, it contributesto a collective tragedy. In this case, energy services in areas affected by thissocial behavior are much worse than those in regularly serviced areas. In

the Favelas, where criminal gangs are dominant, there are requent and longoutages, ollowed by voltage fluctuations that damage electrical appliances.

Te electric company ound itsel engaged in a “guerrilla war” to reversethis situation. Fabio was continually ollowed by bodyguards to protect




x

him rom the wrath o those who elt harmed by the suppression o energythef. Tis protection was not enough to prevent an attack on Fabio’s car.Several shots hit the vehicle, but ortunately not him. Te French executives

o Light were understandably concerned about this event, and consideringFabio’s expertise acquired throughout his career at Light, they decided tosend him to Paris to work in the Research and Development Companyo EDF.

At EDF’s research and development division, Fabio had an opportunityto improve his skills and knowledge o the concepts o smart metering andlearned about a technological novelty—the smart grid, which appeared toattend to the specific needs o electric power companies in Europe, findingsolutions to accommodate new orms o renewable energy generation,mainly wind and solar. Tese orms o energy generation were eitherconcentrated in large production plants or scattered throughout theterritory within small consumer premises.

In this new reality, consumers also become producers, but are stilldependent on the electricity network, as both wind and solar sources areintermittent. o avoid affecting the reliability o the system, or each newkilowatt rom these new plants—which may or may not be producingdepending on weather—another kilowatt rom installed conventional

sources must unction as backup. From both an economic or operationalpoint o view, this is not an ideal situation.

In response to this problem, several solutions were developed to makethe electricity networks dynamic—networks with changing topologiesin real time depending on inputs rom energy generation and energyconsumption patterns. New concepts based on new techniques in thefields o electrical engineering, communication, and optimization ledto the automation o substations, allowing consumers to know in real

time the price o electricity, which can vary almost instantaneouslyaccording to the marginal cost o producing it. Tese include bidirectionalmetering to account or the power flow in consumer-producer units andremote command-and-control capabilities to allow remote connectionsand disconnections.

Fabio’s expertise in the themes and challenges encountered by EDFR&D in France led to assignments in other countries, including SouthArica. Tere, he was involved in the development o a technological

breakthrough o great interest or countries with large amounts o poverty,as in the case o Brazil: prepayment meters.

In 2009 Fabio returned to Brazil and to his ormer company as advisor tothe distribution board. I had the opportunity to talk with him and instantly



xi

Foreword

realized the immense potential o this young proessional to help solve thesame problem that had orced him to move away some years beore, butattacking on the other flank: technological advancement.

As president o Light, I promoted Fabio to chie technology officer andtasked him to create a comprehensive smart grid program within a budgeto R$36 million rom Light’s R&D. Te first and main step o this programwas to develop, within two years, a new metering system smart enoughto be competitive with those in Europe, one in which the managementcapabilities o energy consumption is o the utmost importance. But, aboveall, this could become an essential tool or fighting energy thef in Braziland in other developing countries, as it is economically viable, tamper-proo, and capable o remote command and control.

I had a responsibility to maximize the creative potential o Fabio andensure that he would have the reedom to reach the goals that we definedtogether. Te results we’ve achieved thus ar allow me to be very optimistic.

Jerson KelmanPresident o Light (March 2010 to July 2012)General Manager o ANEEL—Brazilian Regulatory

Agency or Electric Energy, January 2005–January 2009

General Manager o ANA—Brazilian Regulatory Agencyor Water, December 2000–December 2004



xiii

PrefaceEnergy suppliers and utilities throughout the world are making

decisions to deploy smart metering systems or their customers on a grandscale. Te drivers are global incentives or reduced energy consumptionand carbon emissions, opening o energy markets, strong pressure oregulators in several areas o energy management, and growing customerdemand or new metering system services.

Energy suppliers and utilities have an even stronger perceptiono their metering systems as necessary and strategic. Opportunitieswith these systems to retain existing customers and gain new ones are

increasingly evident.A smart metering system project requires multidisciplinary teams(marketing, regulation, metering, R&D, finance, etc.) who are well trainedand understand both local challenges and those aced by smart meteringdeployments throughout the world. Tis book aims to fill a gap in theavailable global literature on this subject and to meet the high expectationso these proessionals.

For this reason, the book uses language that is meaningul to all whomight develop or work on these systems. Nevertheless, the reader shouldhave a basic understanding o the energy market and the metering serviceso an energy utility, as well as I, telecommunications, and measurementsystems.

As such, the book is intended or a wide audience o proessionals whomay interact with the subject o smart metering and its opportunities—in universities, energy distributors, energy suppliers, research institutes,standard-setting bodies, laboratories, regulators, metering systemmanuacturers, suppliers o metering system equipment and components,

consulting firms, inormation system integrators, and other sectors. Mygoal is or this book to become recommended reading or:

• echnical and R&D managers

• Project managers

• Consultants

• Executives

• Researchers

• Engineers

• eachers




xiv

• echnicians

• Students

I must point out that although this book involves, in principle, both gasand electricity metering systems, its ocus is mainly on electricity metering,given its important role in smart energy metering systems. Hence, althoughother energy (e.g., heat) or nonenergy (e.g., water) metering systems coulduse some o the concepts in this book, they are beyond its intended scope.

Figures and related inormation in this book are or illustrativepurposes only, not or any comparison between different solutions andcompanies. Te same applies to any other inormation about companiesand deployments mentioned in this book. I do not intend to promote anycompany or solution. All the companies mentioned are somehow involvedwith smart metering projects. I or any reason their smart meteringsolutions (pictures, inormation, etc.) are not published in this book, thisdoes not mean they do not exist or that a particular company is less qualifiedthan another. Te same applies or any company not mentioned here.Because o the large number o companies involved with smart meteringprojects in the world, it is almost impossible to mention all o them.

It is also important to highlight that although the term smart metering iswidely employed internationally to reer to the central subject o this book,other terms may be used or the same purpose by different participantso the energy market throughout the world. Examples are the termscommunicating meters and advanced metering .

Also, I cannot assert that this work is complete, as international marketsand technology evolve quickly. I could add many other subjects. However,in my opinion, it meets what I intended it to achieve. I thank all mycolleagues or their interest and assistance, prior to publication.

Finally, it was a pleasure to write this book and I hope you enjoy it. Anyconstructive criticisms and suggestions will be grateully accepted.



xv

AcknowledgmentsWriting this book required a great deal o determination, dedication,

and energy, and its publication would have not been possible without thedirect or indirect contributions and/or encouragement o a large numbero individuals and companies.

I sincerely thank EDF R&D or the opportunity, contributions, andsupport, especially the members o the Edition Committee and to SylvieAnglade, Eric Schultz, Stanislas Iweins, and Sebastien Ruiz.

I equally sincerely thank EDF, Light, ERDF, EDF Energy, and EnBWor their direct or indirect support, contributions, and help throughout my

career, especially to Steve Hayfield, Ashley Pocock, Francois Blanc, GilbertCombe, Marco Donatelli, Maria Bernadette Alves, Martial Monort,Nickolas Slocombe, and Robert Gibbs.

I also sincerely thank all the advisors, reviewers, translators, and editorsor their contributions to this book, in particular Teophanis Calliacoudas,Flávia Gouvêa, Ana Paula Jansen, and Alan Knight-Scott, and all thecompanies that contributed with figures and inormation.

I also wish to acknowledge the support o all the other contributors whodirectly or indirectly contributed to the success o this work.

Finally, I would like to thank to Dr. Jerson Kelman or honoring me bywriting the preace o this book.



1

Introduction

Smart Metering System Projects:International View

Analysis o the global energy market, with its thousands o distributorsand suppliers and its millions o customers, suggests that it is difficult to

ensure proper management o all customers without a smart meteringsystem, whether it is a market open to competition (completely or partially)or not.

Until recently, almost all participants throughout the world managedmetering systems manually. Tis results in significant losses, particularlythose associated with incorrect customer billing, inefficient operationalmanagement o metering equipment, and underutilization o the unctionso these systems and associated opportunities.

Advantages versus ConstraintsSome o the problems that hinder the widespread deployment o

these systems by distributors and suppliers are related to the difficulty omaking these deployments profitable and selecting, among the availabletechnologies, the most appropriate technology or specific eatures o

the market.It would be tempting to imagine that the smart metering systems and

services that these systems can offer to customers are treated as one o thetop priorities o all o the world’s energy participants, but unortunately,this is not the reality.



SMART METERING HANDBOOK

2

Some energy participants believe their current manual meteringsystems are sufficient to ensure good management o the energy suppliedto their customers, even i they generate a high level o financial loss.

Tese losses vary depending on, among other things, the type o energysupplied, location and type o networks (overhead or underground lines),environment, management organization, and customers. Losses aregenerally caused by a lack o control, monitoring, and responsiveness.

Smart energy management, through effective deployment o smartmetering systems, can solve many o these problems. It is also importantto emphasize that the simple, widespread deployment o these systemswill not by itsel solve all o these problems. Smart energy managementand generated data must be used properly or the benefit o customers,regulators, and all o the market’s participants.

Certain suppliers also have a reluctant approach that ofen restrictsenergy to a single public utility that is unable to generate associatedservices. However, this view tends to ade with the emergence o the newneeds o energy market participants. Tese needs are nurturing a newway o viewing the subject and are driving the global industry to producenew, adapted technologies. Te main phenomena currently observed andproducing new needs are described in the ollowing paragraphs.

Te opening o markets to competition, ull or partial, has generatedthe need or new services to offer to consumers. Tese offers allow energysuppliers to retain their customers, gain new customers, and compete withnew market entrants. Global requirements to reduce energy consumptionand carbon emissions result in the need or effective management ocustomer demand and changing consumption patterns, as well as therequirements o regulators (regarding the quality o energy supply andthe reduction o transport prices). Te risks include poor earnings or

certain participants due to operational costs, losses, and uncontrolled debt.Other considerations include the emergence o new offerings by indirectcompetitors, even in closed markets, such as offers o decentralized energyproduction or services or energy management or end consumers; theemergence o new consumption practices, with different profiles andneeds, such as rechargeable electric and hybrid vehicles; aid, sometimesfinancial, rom governments so that network participants can deploy smartmetering systems to benefit their customers; and the recent energy supply

problems and the resulting demand control measures that have generateda need to bring the consumption curve (load curve) o customers into linewith the profile o production and the various associated production costs.



Introduction

3

Tese needs have been the drivers or suppliers and distributors tochoose mass deployment (or investigations into the possibility o doingso) o smart metering systems or millions o residential and business

customers. Tese energy participants have realized the strategic importanceo metering systems, which is reflected in the use o various technologiesand technical architectures or implementation worldwide.

Methodology and Structureof the Book

While this book deals with dual-energy systems (gas and electricity),its ocus is on electricity platorms because o their essential unctions inthis new environment o smart metering. Various topics relating to thisconcept are discussed in the chapters that ollow.

Chapter 1 provides a technical overview o concepts, meteringtechnologies, and their evolution over time. Te main processes are alsopresented, such as installation, nontechnical losses, payment methods, andinormation technology (I) inrastructure.

Once this basic inormation is acquired, chapter 2 addresses smartmetering systems, their technologies, and the technical architectureoptions. It examines the components o these systems in detail as wellas the challenges to overcome, such as interoperability, saety, anddata management.

Chapter 3 develops an international view o these platorms and thereasons why they have been implemented on a large scale throughoutthe world. Teir innovative products and services are presented in

addition to the main challenges and constraints acing the deployment othese platorms.

Chapter 4 provides the necessary inormation about implementingtechnical solutions and mitigating the risks associated with thesedeployments. A complete end-to-end view o this subject is given inthis chapter.

Finally, chapter 5 addresses compatibility with uture platorms to bedeveloped. It also discusses trends in these solutions in terms o integration

and technological change.




4

Summary Te motivations and profitability o the deployment o smart metering

systems vary rom one market to another, but this global analysis suggeststhat these systems are already an international reality. More and moredistributors and suppliers around the world are adopting smart meteringsystems to manage their millions o customers more effectively. Te newrequirements o these markets demonstrate more strongly than ever howstrategic a metering system becomes or participants.

Customers and various market participants can also enjoy the benefitsassociated with the deployment o these systems and related services i these

projects are properly deployed and i certain constraints are overcome.otal customer satisaction should be the main objective o theseprojects. As such, it is essential to understand the customers’ real needsand expectations. It is also essential that the interace with the customersbe simple and adapted to the environment and the customers’ real needs toensure their support or the project.

Te unctionalities and new services must also be made available tocustomers during the various phases o the project so that they can enjoyall o the benefits o the project.

Te deployment o these systems involves a change in organizationalculture, and the success o the projects depends on how this change isexecuted. Te company must thereore provide the necessary resourcesso that a training program and communications are established inaccordance with local laws, the needs o the companies, and the personnelinvolved so that they are motivated and take part in the cultural andtechnological change.

All o these topics are addressed in this book in order to help the reader

understand the environment o smart metering system platorms.



5

1Energy Metering Systems

Energy has always been present in our daily lives and naturally availableor our use. Early in human history, natural orms o energy, such

as lightning rom the sky, geothermal sources, and natural emissions odifferent kinds o gases awoke our curiosity about these phenomena. Wesoon realized the potential and opportunities associated with these energysources. Ever since, we have been trying to understand the different effectsand behaviors o energy when isolated or in contact with other materials.

Over the past hundred years, we have refined the methods or saely

capturing and profiting rom different kinds o uels. Electricity, gas, andother types o uels have become an everyday part o our lives, and wehave been become more and more dependent on them. Many companieswere created in order to explore energy and make it available or our use;however, some unintended consequences have also arisen. For example,investments should produce benefits or both business owners andsociety. Energy technology must be long-lasting and reliably availableto customers. We should also not orget that ossil uels, which are now

the primary energy sources most commonly used in some countries,are not inexhaustible and have a significant impact on the environment.Tis reinorces the need or better control o energy consumption. In thiscontext (economic, technological, environmental, and social), the need tomeasure energy has become a necessity.

Afer countless tests and much research effort, standard units wereestablished, measurement equipment was developed, and different marketrules were created in order to establish all the necessary parameters or

monitoring energy consumption. Meters became a core unction in thissystem. Tey are the main interace between customers and energy utilitiesthat accurately account or the amount o uel used by customers. Metersmust also control the use o energy along different stages o its production-to-consumption chain. For example, in the electricity domain, meters




6

are installed at strategic points within the electricity network to provideeedback about energy consumption during generation, transmission,and distribution.

It is clear how important meters are or both energy utilities andtheir customers. Because o its importance and complexity, this subjectdeserves deep study to understand how it works and the large numbero issues associated with metering systems. Tis chapter ocuses on someaspects o electricity and the gas meters, although the main emphasis ison the electricity meters due to their core role in smart metering systems.Inormation about their main eatures and services is presented, withan emphasis on how important these systems are or the energy marketand on the potential opportunities. Tis chapter provides the essentialbackground needed to better understand the scope o smart meteringsystems in subsequent chapters o this book.

Electricity Measurements Overviewo help the reader with basic understanding about the subjects to

be discussed within this chapter, we begin our study by recalling somehigh-level electricity principles. While an in-depth treatment o theseprinciples is beyond the scope o this book, i you would like to investigatethem in greater detail, see the bibliography at the end o the book.

Electric power

Electric power is the basis or electricity measurement because electricenergy can be defined as the quantity o power transerred in a circuit

during a specific time. In practical terms, one o the eatures o electricequipment is its specific value o power. Te consumption o electricequipment varies proportionally to its power and the amount o time itis used. Basically, a piece o equipment using higher power than anotherpiece o equipment consumes more energy over the same period. A pieceo equipment with power equal to another piece requires more electricityi energized or a longer period o time. For efficient use o equipment, twopoints should be taken into account: power and time.

In energy-efficiency terms, taking long showers using an electric waterheater should concern you more than using an electric shaver over thesame period. Tis is because the electric water heater uses several kilowatts(thousands o watts) o power, while a shaver uses just a ew watts. In this



Chapter 1 Energy Metering Systems

7

example, the water heater consumes many thousand times more energyover the same period.

Tere are two basic kinds o circuits in the electricity domain: direct

current (DC) and alternating current (AC). As a simple explanation, DCmay be employed or batteries used to supply a portable radios, and ACis generally used within the home or supplying appliances connected toelectric sockets.

AC electric power is classified as active, reactive, and apparent. Tepower triangle (fig. 1–1) expresses the relationship among them.

Fig. 1–1. Power triangle (S = apparent power; Q = reactive power; P = active power)

For practical purposes, or a single-phase AC circuit, it is defined that:

• Active power is the amount o power being used or the caloric

value dissipated in a circuit. It is the product o voltage, current,and cos φ and is expressed in watts (W). In a ully resistive circuit,ormed by resistive load only (e.g., a circuit that individuallysupplies an appliance), cos φ is equal to 1. It is also known asaverage or real power. Its basic ormula is

P = V × I × cos φ

where: P = electric power (watts) V = voltage (volts) I = current (amperes) φ = phase angle between V and I




8

• In reactive circuits composed o inductive or capacitive loads,such as appliances that contain coils or capacitors, reactive poweris generated. Tis is the power exchanged between the generation

and the load without being consumed. In practical terms, thisextra power is not used to provide energy to appliances but isstored in the magnetic circuits (transormers, electric motors)or electric fields (capacitors) and is returned to the power source(the grid) at each alternation (change o polarity) o the current.It is thereore power that permanently circulates between thesource (the grid) and load (equipment supplied) without everbeing consumed. O course, this power is undesirable becauseit is only an overcharge on the grid without ever constituting

useul power. Compensation measures are ofen necessary tominimize or even cancel out that power.

Reactive power is also the product o voltage, current, andsin φ. It is expressed in volt-amperes reactive (VAr). Reactivepower is also known as imaginary power. Its basic ormula is

Q = V × I × sin φ

where: Q = reactive power (VAr) V = voltage (volts) I = current (amperes) φ = phase angle between V and I

• Apparent or complex power is the vector addition between activeand reactive powers. Tis is the product o voltage and current.

It is expressed in volt-amperes (VA), and its basic ormula is

S = V × I

where: S = apparent power (VA) V = voltage (volts) I = current (amperes)




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According to the ormulas presented above, apparent poweris related to active and reactive power by the ollowing ormula(orthogonally between P and Q):

S² = P ² + Q²

Note: All ormulas presented above, based on trigonometricproperties, are valid or voltage and current that ollow asinusoidal shape, that is, in the absence o harmonics.

Given that the basic units defined by the International System o Units(SI) are sometimes unsuitable or expressing large values, we use kilo-units(1,000 units), mega-units (1,000 kilo-units), and higher orders successively.Tese are generally used or electricity bills.

Te wattmeter (fig. 1–2) is the device used to measure active electricpower. Based on the previous principles, in general, we need to have twocircuits in order to record active power: current and voltage. Te mutualinteraction between them (cos φ) produces the measurement in an activepower unit. For energy utilities, they orm the basis or the measuremento electric demand.

Fig. 1–2. Wattmeter diagram




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Electric energy

As mentioned, electric energy is the power available during a period otime. As such, it can be active, reactive, and apparent. Ten,

W = (P or Q or S) × t

Where: W = energy (kilowatt hour [kWh] or (kilovolt-ampere

reactive hour) [kVArh] or kilovolt-ampere hour[kVAh])

P or Q or S = power (kW or kVAr or kVA)

t = time (hours)

For practical illustrative purposes, assuming a ully resistive electricappliance, with load o 1 kW and uninterrupted energized load over aperiod o 2 hours, the energy consumed is

W = P × t = 1 × 2 = 2 kWh

For residential electricity billing purposes, in general, utilities all overthe world use the unit kWh. In some countries, specific types o customersmay have billing based on both kWh and kVArh.

Te equipment used or measuring electric energy is the electricitymeter, discussed next.

Electric demand

In terms o energy metering beyond electric energy measurement,

electric demand is another aspect to be recorded. Demand is the powermeasured within a predefined time interval. Te majority o countrieshave adopted the standard o quarter-hour or hal-hour intervals or theseregisters, and they are generally expressed in kilo-units.

Maximum demand is recorded within an established interval, orexample, one month. Demand is measured by utilities so they canaccurately build and maintain network inrastructures. Assuming twocustomers have consumed the same amount o energy in a given month,

the first customer may have used a maximum demand o 50 kW withinthis period, while the second used just 6 kW. Te first customer probablyhas used higher-power equipment in shorter periods o time comparedto the second customer. In other words, the first customer had peakso consumption higher than the second, which had a more regular




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consumption (smoother consumption profile). Even i both consumed thesame amount, the investment in the network or providing energy to thefirst would generally be more important than to the second in terms o

cables, metering systems, and other equipment. Tis illustrates why energyutilities need to measure maximum demand and try to associate the costo inrastructure to its specific users.

Energy Metering Systems

The history of gas and electricity metersTe gas industry was established early in the 19th century as a competitor

to oil. Initially, it was deployed to light the streets o urban areas or shortperiods. From that simple beginning, gas technology has evolved such thatefficient storage makes it possible to use gas or such various purposes ascooking, boiling water, and heating.

Samuel Clegg, chie engineer at the Gas Light and Coke Company inLondon, developed the first efficient gas meter in 1817. Since then mucheffort has been put into reducing the size o the meter, containing the cost,and addressing other associated issues.

In 1843, Tomas Glover invented the original diaphragm meter, and in1870, . S. Lacey invented the first gas prepayment meter (fig. 1–3).

Around 1870, patents or the first electricity meters were publishedaround the world. At that time, the main competitor o electricity was gas.Just as now, it was important to accurately measure electricity consumption.Although it is hard to determine who invented the first robust electricity

meter in the world, Tomas Alva Edison stands out among inventors.He was the first to register an ampere-hour meter or DC applications in1881, known as a chemical meter. Tis device was deployed in New Yorkaround 1882.

Meylan and Rechniewski built a watt-hour meter or measuring DCcircuits in 1886. In consecutive years many other innovative meters weredeveloped and issues resolved. An example o these improvements wasthe reduction o the amount o energy required by meters or measuring

purposes (sel-consumption). We could say that the older meters weremore energy hungry.




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Fig. 1–3. Example of prepayment coin-operated gas meter. (Photo courtesy of Actaris.)

wo different devices o measuring electricity were available:ampere-hour meters and watt-hour meters. Afer innumerable discussions,the second was established as standard or electricity measurement devices.

Another decision was also required because two different technologiesor energy generation were also available: DC and AC. Which one shouldbe chosen to become the standard around the world or residential and

other applications? As you know, AC was finally adopted or residentialand industrial implementations and DC only or specific applications.In 1889, the first meters or AC measurements were developed. Elihu

Tompson built a watt-hour meter capable o concurrently measuring DCand AC.

Olivier B. Shallenberger created a watt-hour meter as an upgradeto his original ampere-hour version. In 1896, he invented the firstpolyphase meter.

Over time, other inventions were developed (fig. 1–4) such as thefirst methods or reactive energy measurement and prepayment meters.Meters able to register electric power demand in kW, kVA, and kVArwere also important innovations, meant to meet the industry needs ormultiregister applications.




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Fig. 1–4. Examples of early electricity meters. (Photo courtesy Landis+Gyr.)

Several meter manuacturers have emerged whose technology hasevolved to meet industry requirements. Equipment using new technology isnow available, such as electronic energy meters and auxiliary measurementequipment, including instrument transormers.

New measurement devices have been appearing in the market, suchas orifice and ultrasonic meters or gas and shunt meters or electricity.Compensation methods and standards have been established, and

measurement and regulation guidelines devised.Nowadays, generally two kinds o meter technologies are available in

the market: induction electromechanical and static electronic. Both typeso meters are considered integrator devices, measuring the power andenergy consumed during a period o time.

In the past, meters were used mainly or billing and energy networkmonitoring purposes. Now, different customer needs such as energymanagement and cogeneration call or their use as submeters or

various applications in premises, such as or cogeneration monitoring,real-time energy management, load shifing, circuit supervision, demandorecasting, air conditioning and heating equipment monitoring, andindividual in-home socket measurement (smart plugs). Tey have alsobeen used by utility providers or network management as substation




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measurements, eeder load supervision, demand-side management,quality analysis, energy balance or transormers, special rates, demandorecast, eedbacks or monitoring centers, load curtailment, and, more

recently, smart grid applications.

Electricity measurement systems

Te measurement system is the main subsystem o the metering system.It is composed o different components (hardware and sofware), whichtogether are responsible or measuring, accumulating, and displayingenergy in meters and instrument transormers. When associated withcommunication, data management, billing, and other systems discussed in

this book, they orm the metering system.

Electromechanical induction meters. Te most common electro-mechanical meters are based on the Tompson design developed in1888. An electromechanical induction meter is comprised o electricaland mechanical components that work together to register energyconsumption. It may be single phase or polyphase. It is generally composedo the ollowing components (see figs. 1–5 and 1–6):

1. Base and meter cover

2. erminal connections and cover

3. Identification nameplate

4. Stator

5. Voltage circuit(s)

6. Current circuit(s) 7. Rotor disk(s)

8. Magnetic brake rotor

9. Pivot and spindle connected to a register

10. Calibration elements



Fig. 1–5. Exterior components of an electromechanical meter. (Photo courtesyof Actaris.)



Fig. 1–6. Interior components of an electromechanical meter. (Photo courtesyof Actaris.)




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A measurement element is composed o a voltage and current circuit.Te voltage circuit contains a coil that is connected in parallel with themain circuit. Te current circuit contains a current coil that is connected in

series with the load. Polyphase meters have more than one measurementelement, usually proportional to the number o phases. In general, single-phase meters have only one measurement element. However, special versions may have multiple elements. Single-phase multi-element metersare used when different circuits must be measured independently.

Te voltage coil collects the voltage reerence rom the line, while theother reerence is obtained rom the current that flows within the currentcoil. Tereore the meter works in the same way as an induction engine.Electromagnetic fields are generated in proportion to the voltage suppliedand to the current flowing through the meter. ogether they result in thedisk rotation.

Te disk rotation causes the pivot to rotate, and its spindle rotates thegears o the register display in proportion to energy consumption. Te gearsystem o the register display is composed o several cogs that are associatedwith subcounters that record total usage. Teir number depends on theutility specifications and on the meter manuacturer design. Generally,the register display is composed o our, five, or six subcounters, each one

corresponding to a digit. Tey are interconnected mechanically, and theymay show decimal or unitary units. Te register display may directly expressconsumption, or it may be necessary to multiply the values obtained romthe register by a coefficient.

Te magnetic brake rotor produces an opposite orce to the diskrotation that controls its speed in relation to the energy used. It eliminatesunnecessary acceleration or nonstop events associated with the inertiao the disk when the current increases or stops flowing. Te calibration

element screws are used to correct the accuracy o the meter i needed andare generally used during laboratory meter tests. Te base and its coverare either glued or screwed together. Connection terminals are also withincovers or saety reasons. Both meter and terminal covers are normallysealed to identiy when tampering has occurred. A label is added to themeter to provide inormation about its identification, main eatures, and aconnection diagram.

An electromechanical meter generally measures a single unit only.

I it is necessary to measure kWh and kVArh or a customer, it may benecessary to employ two separate meters. For generating billing invoices,the utilities collect the registers rom the meters over a defined period (orexample, monthly). Tey compare the current values to those rom theprevious month in order to calculate the customer consumption.




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Programmable electronic registers. Some electromechanical meters aredesigned to transmit pulses to other devices. Tey normally use a specialinrared device or counting the disk turns and transmitting equivalent

pulses to an embedded (fig. 1–7) or external source such as a programmableelectronic register.

Fig. 1–7. Example of programmable electronic register. (Photo by Photo Ludo, courtesyof Actaris.)




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Tis device is not considered a meter (it is not able to measure) butan electronic processor able to manage pulses rom different emitters andstore them in different channels. Te equipment has an embedded clock,

and its unctions are programmable. It is designed to work in tandem withelectromechanical meters or storing profile data and active demand usage,and also or providing hourly or seasonal rates or other clock- or calendar-dependent unctions.

Some o these devices can also produce standardized pulse output,which may be used by energy management systems and devices ownedby customers or demand management. Optionally, the basic pulses canbe provided to the customer via an optical isolator that duplicates thepulses so they can be simultaneously used by the electronic register andthe customer’s management device.

Nowadays, even with the availability of electronic meters, programmableelectronic registers are still common in utilities around the world.raditionally, the measurement system used by these meters has been usedor high-consumption customers based on hourly/seasonal rates. Ofen, inthis scenario, active and reactive electromechanical meters provide pulsesto a programmable electronic register. Note that this device is not energytotaling. It does not sum pulses generated by different meters. Instead, any

received pulses are stored individually in different channels.

Static electronic meters. Once used only or high-consumption customers,electronic meters are now massively deployed in all kinds o acilities. Teyare used or the majority o smart metering installations in the world.

In contrast to programmable electronic registers, static electronicmeters can measure energy, and they eliminate the need or anyadditional source o measurement by integrating all the unctions o the

electromechanical meters. Depending on specification, they can simulta-neously measure different energy units such as kWh and kVArh as wellas incoming and outgoing energy. Tey can provide the ollowing energymanagement unctions:

• Measurement o multiple energy units (energy, power, voltage,current, etc.)

• Rate calculations

• Operation o switches and contacts based on programmableunctions and events

• Monitoring o events and sending alarms




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• Load monitoring

• elemetry unctions

• Monetary conversions • Consumption orecasts

• Energy measurement analysis

• Storage o profiles o energy and other measurement units

Electronic meters can manage single or multiple rates. Advanced hourly/seasonal rates, associated unctions, and switching events may be provided

via an internal clock or external sources, such as clock, broadcast radiorequency, ripple control, local data concentrators, and remote servers.Tese external sources are not restricted to providing clock reerencesor rate period changes. Tey are also used to broadcast commands suchas load shifing management or strategic loads during peak time andaccording to rate arrangements.

A static electronic meter is comprised o electrical and electroniccomponents that work together to register energy consumption. Tismeter may be single phase or polyphase. It is generally composed o theollowing components (see fig. 1–8):

1. Base

2. Measurement board

3. Main printed circuit board

4. Identification nameplate

5. Main cover 6. erminal connections and cover

Similar to those o electromechanical meters, the operating principleso static electronic meters are based on voltage and current measurements.Tese measurements are obtained with high precision by internal sensorslocated on the meter circuit board. Tese inputs are internally processed,and the different energy units are incremented and recorded according to

standardized measurement algorithms.




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Fig. 1–8. Components of an electronic meter. (Photo courtesy of FAE.)

An interesting trend is the rise in importance o the electricity meteras more components and unctions are integrated. For example, due toutility needs, in the majority o smart metering deployments in the world,a load switch may be considered an integral part o a basic smart meter. Inother designs, integrated circuit breakers or saety operations or advancedunctions are provided. Functions may relate to management o homeautomation, local data management or in-home devices, and dual-uelarrangements (associated gas meter).

Tere are many different types o electronic meters. Te traditionalones (fig. 1–9) are built in a single module with all components embeddedand protected by a seal. I internal components need to be replaced(e.g., because o a switch ault), this can only be done in a laboratory

environment. For metering accuracy and saety reasons, there are onlya ew accessible components available during normal operation, such asconnection terminals and batteries.




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Fig. 1–9. Example of a traditional meter used in France. (Photo Courtesy of Sagem.)

Another common design is the modular meter. Tese are initially more

expensive, but may be advantageous or some metering architecturesbecause they are upgradable in the field. aking into account thatdifferent components have different lie spans, a modular design allowsthe replacement o targeted components rather than the whole device.Tis replacement may occur or different reasons such as communicationtechnology obsolescence, lie span being reached, or accuracy verification.

Te plug-in meter is an example o a modular meter; it is mainlydeployed in South Arica (fig. 1–10). Here, the base and terminals canbe unplugged rom the metrological part o the meter and switch. Tismay be worthwhile, because the base components have a longer lie spanthan the metrological part. It also improves meter installation time andassociated costs.




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Fig. 1–10. Example of socket (left) and plug-in meters (right). (Photo by Itron and BMSImaging, courtesy of Actaris.)

Socket meters are used in a similar way in North America (fig. 1–10).Tese differ only in base design and component locations.

Another interesting design is that o the rack meter, which is generally anindirect measurement system, used in panel arrangements or substations.Tis meter may be quickly and saely replaced in the field or differentpurposes. Its base normally has an internal mechanism to automatically

short-circuit the secondary current and open the voltage circuit in order toisolate the meter prior to removal.In general, modular meters offer more flexibility. Tey may allow the

replacement o components in the field, such as communication modemsand switches, through the use o ully isolated meter compartments. Tismay significantly reduce the cost o the field operations.

Direct and indirect measurement systems. Regarding the way theyare connected to the grid, meters can be classified as direct or indirectmeasurement devices. Teir application depends on the customer’s loadrequirement. Direct measurement meters are usually applicable orresidential customers, and indirect meters or bigger load customers.




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Both types o meters have two measurement circuits to register energy:current and voltage. In a direct meter all the load o the circuit flows directlythrough its current circuit. Te main supply cable provides both a voltage

and current reerence to register consumption. Tese circuits are ofeninterconnected inside the meter (fig. 1–11). When needed, it is possibleto separate them or laboratory test purposes. Tis is possible thanks to aspecific connection link in these circuits.

In case the customer load exceeds the limits o a direct meter (typicallyup to 230/400 V and 100 A in some European countries), or example, in anindustrial site, it is necessary to provide an indirect type o measurement.Te meter adopted is thus an indirect measurement meter. Instrumenttransormers are required to both connect the indirect measurementmeters to the grid and reduce the measured values to an acceptable limitthat can be directly supported by these meters. In these measurementsystems, voltage and current circuits are ully separated outside and insidethe meter (fig. 1–12). Tus, these meters have two ully independentcircuits, one or current and the other or voltage.

Fig. 1–11. Example of a direct meter circuit




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Fig. 1–12. Example of an indirect meter circuit.

Instrument transformers. Depending on the customer load and the meter’seatures, different types o instrument transormers can be used to provideinormation on the electricity meter. Tere are two different instrumenttransormers applicable or measuring systems: current (fig. 1–13) andpotential (fig. 1–14). Tey are associated with two circuits: a primary circuitthat reflects the real supply values and a secondary circuit that reflects thetransormed values or measurement purposes.

I the customer load can be met within the limits o a low-voltage eeder,

it will only be necessary to install current transormers. Te transormersreduce the current flowing on the primary circuit to an acceptable rangeo values to be measured. Te typical range o current is 0–5 amperes orindirect meters.

Instrument transormers are associated with coefficients (multiplicationactors) that reflect the transormation between their primary andsecondary environments. Tese coefficients can be used in calculationsto transorm the measurements obtained by meters rom secondary

measurements to final values, which reflect the real consumption o thecustomer. Instrument transormers are associated with a rated burden inVA or saety reasons. Te topology o measurement circuits differs romenvironment to environment and depends on the customer substationarrangements, manuacturers’ specifications, and utility preerences.




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Fig. 1–13. Examples of low (left) and medium (right) voltage current transformers. (Photo

courtesy of Seedel.)

Fig. 1–14. Examples of medium voltage potential transformers. (Photo courtesy of Seedel.)

Instrument transormers must be specified according to the eatures o

the measuring system. For example, the ranges o secondary voltage andcurrent vary according to utility needs. For specific applications, wherethe levels o current on the primary circuit are too small to be accuratelymeasured by the meters, current transormers are used to increase the




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levels o current, instead o reducing them. Te ollowing are importantparameters or instrument transormers:

• Primary and secondary voltage and current

• Number o secondary circuits

• Accuracy class

• Isolation class

• Rated burden (VA)

• Circuit topology

• Standards

• Any special requirements

Instrument transormers are generally installed in separate sealedcompartments. Tese compartments may be placed in a cabinet or in adedicated substation (common or medium-voltage-supplied customers).An important aspect on this kind o installation is its secondary circuit.Special precautions must be taken to clearly identiy, secure, and isolate all

cables. Te same is applied to conduits not only or saety reasons but alsoto avoid mistakes and tampering. Conduits are used to accommodate thesecondary circuits that connect instrument transormers to meters.

For accuracy verification in the field, appropriate test switches must bepart o secondary circuits, which are considered to be in an uninterruptedloop while energized. Inappropriate open-circuit procedures may createsaety risks and aults on the current transormers. Modern test switchequipment contains a semiautomatic mechanism used to short-circuit the

secondary current transormers in order to isolate parts o the circuit wheretechnicians need to work. Tis mechanism also opens the voltage circuitsto isolate parts where test procedures will be executed. For saety reasons,all the technicians must be thoroughly and continuously trained orthese procedures, as well as or any kind o procedure involving meteringmanipulations within energized environments. Saety must be paramountor metering specialists, managers, and the responsible companies.

aking into account all the other equipment in the measurement circuit,the meter cannot be seen as the unique device associated with metrologicalprocedures. It is just one o the components o the measurement system.Its instrument transormers and secondary circuits, and indeed all itscomponents such as connections and test switches, are also part o thismeasurement system. Instrument transormers are precision instruments,




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and thus they must conorm to accurate metrological standards andregulations. Metrological standards generally use parallelogramrepresentation or defining accuracy limits.

Compact indirect measurement systems. Manuacturers o instrumenttransormers take various needs into account such as accuracy, spaceconstraints, saety, time required or installation, and reduction onontechnical losses. In order to improve these actors, they have developedcompact integrated systems or indirect measurements (fig. 1–15) thatmay be applicable or low or medium voltage, ed by (up to) 36-kVlines. Because o their easy installation, these systems are applicable ornetwork, comparative, grid boundary, and other measurement purposes.Tis compact measurement system is comprised o an electricity meter, acustomer display unit, current transormers, potential transormers (whenapplicable), and a protection circuit.

Fig. 1–15. A compact integrated system for indirect measurements with a customerdisplay unit (right) for low- and medium-voltage (left) applications.

(Photo courtesy of Seedel.)




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raditionally, every measurement device used in the measurementsystem is tested and calibrated separately. Given that the total error o themeasurement system is the sum o all the individual errors, and taking

into account that these components are made by different manuacturers,sometimes the total error o the system is significantly higher thanits individual components. For compact integrated systems, i all themeasurement equipment is produced by the same manuacturer, and theentire system is tested together as a single module, this kind o measurementsystem generally has greater accuracy.

As a natural commercial response to the market, meter manuacturersare now developing new direct-measurement meters or low-voltage usethat are able to support electric current as high as 800 amperes or regularuse (fig. 1–16).

Fig. 1–16. An 800-A meter. (Photo courtesy of Nansen.)




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Energy totaling (summating). Customers ofen have special requirementsor totaling energy consumption. One example is a acility supplied byseveral meters where customers need a single-pulse signal or their local

energy management device. Complexity may be increased i quality andreserve meters are added to this scenario or backup purposes. Anotherapplication o these systems is or submetering, which measures differentparts o the customer’s business and provides real-time data. In bothcases, special methods must be used to summate the energy rom multiplemeasurement points.

One method uses an electronic totalizing register. Its unction is tosum the pulses or measurement data o different meters according toprogrammable unctions and provide centralized, advanced, real-timemanagement and analysis, such as a demand-exceeded signal. Tesedevices are also used to generate signals to customers’ energy managementdevices. Electronic totalizing registers may provide several additionalunctions such as the ollowing:

• Global Positioning System (GPS) clock synchronizationor local meters

• Centralized access to the meters locally or remotely

• Customer display units or advanced inormation

• Energy management

Another way o providing measurement aggregation in the field is to usea current addition method, which applies only to indirect measurementsystems. Tis method enables physical association o several secondarycurrent circuits in the field rom different measurement points. Tesecircuits are grouped and measured by a single meter common to themboth. Tis may be done either directly or indirectly:

• Direct aggregation is applicable to current transormers withthe same eatures. A common connection terminal joins similarphases o different related secondary circuits.

• Indirect aggregation is also used or similar current transormersbut with different transormation rates. In this case, theconnection between the different secondary circuits is provided

through extra autotransormers.

In both cases all phase reerences o potential must come rom the sametransormer and be the same or all the circuits.




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Although these systems are used by various utilities and may workproperly, there are disadvantages, including installation constraints due tothe distance between the instrument transormers and the common meter,

technical losses, voltage or current inversions, different levels o voltageoscillations or the individual circuits, and difficult maintenance and fieldinspections. Because o these problems, these systems are generally beingreplaced by individual meters combined with electronic totalizing registers.

Reactive energy measurement. Electromechanical or electronic metersare able to measure reactive energy. For this purpose we generally usemeters with eatures that are similar to those o meters used or measuringactive energy. Te main difference is in the measurement circuit where anangle shif is necessary between the current and the voltage.

For electromechanical meters, a special autotransormer is generallyintegrated into the circuit that is able to shif the electrical current and voltage by 90 degrees to enable the measurement o reactive energy. Withthis method the meter can be used or measurement purposes both whenthe circuit is capacitive and when it is inductive. Although theoreticallysuch a meter would be able to count in both directions and accumulatepositive or negative reactive energy (or inductive or capacitive circuits,

respectively), in practice there is little interest in it doing this. For thisreason, these meters usually employ a brake mechanism to prevent thedisk turning in a nonregular way. For this reason the meter normally stopswhen the circuit is capacitive. Tis brake is necessary to avoid mixing,on a single register, the consumption o capacitive and inductive reactiveenergy. Tus, this method works properly or calculating rates associatedwith measuring inductive energy only. It is not efficient or rates that needto measure capacitive energy or a period o time and inductive energy

or another.o minimize this problem, some utilities use a process called method Q.

Te circuit is arranged in order to provide a shif o 60 degrees between theangles o the voltage and the current. Optionally, a special autotransormermay also be used to provide the same shifing effect. In both cases the metermeasures a special unit called a kilo-quadergy hour (kQh). In a vectorialanalysis, the kQh is shifed rom the kVArh by 30 degrees (fig. 1–17).Using this measurement type, additional to the inductive energy, utility

companies are able to measure capacitive energy or a power actor up to0.866. For billing purposes, the conversion rom kQh to kVArh and vice versa is done using specific calculations.




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Fig. 1–17. kWh, kQh, and kVArh analysis

Although based on similar principles as those described earlier orelectromechanical meters, thanks to the combination o high-precision

sensors within electronic boards and efficient algorithms, electronicmeters are able to measure reactive energy more efficiently in terms ocost, space, and perormance. Tey also enable advanced unctions such astime-calendar-based treatments and load profile recordings.

Meter installation. Because o its associated costs and technical impacts,installation is an important consideration in metering systems and mustbe careully planned. Te metering location and all the processes andresources related to its installation must be wisely chosen.

Saety recommendations must be respected during the installationprocedure. Proper compartments have to be provided or mechanicalprotection or metering components (fig. 1–18), and they need to beproperly sealed to prevent any kind o unauthorized access. A commonexample or electricity meters is the connection terminal, where cables mustbe properly secured with the correct screw arrangements and covers inorder to avoid bad contacts in the connections. Saety must be paramount.Exhaustive training is important to mitigate the risks associated with

metering procedures. A proper protection system is also necessary. Forsaety reasons, protection inside and outside the components o the meteringsystems must be provided. In general, several protection mechanisms areused or this such as electronic components, circuit breakers, and uses.




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Some utilities make use o existing meter boxes, mounting rames, orassociated cabinets or installing these protection components.

Fig. 1–18. A meter installed in an exterior meter box. (Photo by Landis+Gyr.)

A proper commissioning procedure is also necessary to ensure that themeter is installed according to specifications and is operating correctly. Tis

is also a good opportunity or saety inspections and to train customers onhow to use unctions available on their meters.

Metering systems can be installed either internally or externally to thecustomer premises. When installed internally, they are located in specificrooms, substations, cabinets, or wall panels. External installation is doneor several reasons, depending on the different needs o the utilitiesand customers, such as reduction o operational costs or installation,maintenance and other field procedures, accessibility, and revenue

protection. Metering systems are installed in individual or collectivearrangements, grouped in the common areas o a building or in a specificroom designed or this purpose only, or installed on distribution poles.




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Gas measurement systems

Tis section provides a high-level overview o gas meter operations. Tisis useul or understanding smart metering concepts. A gas meter is a device

built to measure the flow o uel gases. Te measurement unit is generallycubic meters (m3). While some utilities apply the cubic meters unit orbilling purposes, others use defined conversion standards or transormingthe flow to kWh units. Based on physical principles, temperature and gaspressure values are undamental parameters or effective gas measurement.Tey are used to convert measurements obtained in the field into a billingstandard. Tese conversions can be embedded within gas meters orcalculated in the billing system.

Until recently gas meter design has been considered basic, but dueto technology and smart metering applications, it has become moresophisticated. Tis has resulted in improved visual appearance andadaptations or space constraints when installing these devices in the field.

Electricity meters may have a load switch or a circuit breaker; thegas meter optionally has a valve. Valves are useul or services thatdepend on gas flow interruption such as remote valve operation andprepayment. Saety must be ensured or measurement and valve operation

procedures. For example, when restoring gas flow, there must be no leaksor inadvertently opened valves. Te meter or the metering system mustprovide mechanisms to ensure that this procedure is saely executed in thefield. Examples are protection mechanisms, alarms, customer eedbackunctions, and the prompt interruption o the related flow when necessary.

Tere are several different types o gas meters used to measure flow:

• Diaphragm meters (fig. 1–19) are most commonly used orresidential and some commercial applications, but were also

used in the past or commercial and industrial applications.Tese are volumetric meters with diaphragms that expand orcontract according to the gas flow. Tey can have a mechanicalor electronic display.

• Rotary meters (fig. 1–20) are generally used for high-consumptionapplications. Basically, rotary meters use impellers that turnwith the gas flow. Tey are volumetric meters and include twopistons, which, driven by the movement o fluid (gas) turn in

opposite directions, staying in contact with each other and withthe body wall o the meter. Te rotation o pistons defines the volume o gas moved through the meter. Te rotary movementis transmitted to a mechanical register or received by anelectronic display.



Fig. 1–19. A diaphragm gas meter. (Photo courtesy of Actaris.)

Fig. 1–20. A rotary gas meter. (Photo by Michael Hec, courtesy of Actaris.)




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• urbine meters (fig. 1–21) basically measure the speed o aturbine within the meter orced by the gas flow. Te turbine hasa counter that registers consumption.

• Orifice meters use an orifice and differential pressurecomparisons or measuring gas flow.

• Ultrasonic meters (fig. 1–22), as with turbine meters, measurethe velocity o the gas flow within the pipe but use sensors andelectronic components to perorm complex calculations. Tecalculations are based on measuring the speed o ultrasonicwaves propagated along the fluid flow; this difference is relatedto the velocity o the gas.

• Coriolis meters use calibrated pipes that vibrate accordingto the gas flow. Comparisons based on the requency o these vibrations allow the measurement o consumption.

Fig. 1–21. A turbine gas meter. (Photo courtesy of Actaris.)




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Fig. 1–22. An ultrasonic gas meter. (Courtesy of PRI.)

In terms o smart metering system, it is unlikely that the gas meter willadd to its current unctions o sel-management and flow measurement.Internal DC batteries are necessary to supply electronic components ogas meters. Tis precludes adding extra online services. In the majority opremises where gas meters are installed, there are also electricity metersthat are constantly AC supplied. In most smart metering architectures,the gas meter plays a secondary role. Its data are generally collected andmanaged by an electricity meter acting as an in-home metering gateway orby a separate, in-home gateway device. Even playing a secondary role, thegas meter is still an important element o dual-uel systems.

Dual-fuel metering systems

Many customers in the world are supplied by both gas and electricity,ofen provided by separate utility companies. In this scenario, customersmay find that managing their energy consumption is complicated. In orderto acilitate the energy management or dual-uel premises, utilities mayprovide comprehensive energy services instead o single-uel services. Tisoffers a single measurement o energy used by customers.

Although the physical combination o both flow measurements into asingle unit is only at the research stage, the logical combination o theseelements is a reality in several countries in the world. Combined energyrates, services, and demand controls would benefit customers, utilities, and




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the environment. Customers are more likely to understand and managetheir consumption i they receive combined energy inormation.

A common unit or gas and electricity meters is essential or dual-uel

measurement. Generally, the kilowatt hour (kWh) is used. Smart meteringsystems tend to convert this unit to a monetary value in order to acilitateenergy management by customers. It helps them to budget necessaryenergy usage and can be displayed using a common display unit. Dual-uelmetering systems is urther discussed in the next chapters o this book.

Metering systems based on the use of customer

display units

Customers are generally provided with details about their consumptionin their energy bills. However, it is important or the customer to have alocal and effective way o understanding their consumption. Tis appliesto single-uel metering systems, but is even more important or dual-uelsystems. Since meters can be read remotely and integrated with advancedI systems, utilities can provide customer inormation many ways:

• Customer display units: Electronic devices associated with thecustomer metering system that can be installed in a home.Teir level o complexity varies rom utility to utility, rom abasic consumption display to an advanced graphical displaywith in-home complex unctions like temperature controls(fig. 1–23).

• Mobile phones: Some customers are using their mobile phonesto access inormation about their consumption and newservices. Tis is implemented in different ways, such as via a

menu interace based on short message service (SMS), requentreports, or a specific web page specially designed or mobileInternet access.

• Automatic call centers: Customers are able to call a specificnumber, generally ree o charge, and get a report abouttheir consumption.

• Automatic reports: Customers can be provided with predefined

reports using e-mail, voice messages, and other methodso communication.

• Internet: A dedicated web page can be used to provide energyconsumption inormation and associated services to customers.




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• In-home devices: Appliances inside the home such as a television,an energy management system, or the customer’s computer canbe used or display purposes.

Tese displays create opportunities or utilities to interact with theircustomers. Tey are increasingly applicable to smart metering systems.

Fig. 1–23. A customer display unit. (Photo by Landis+Gyr.)

Prepayment Systems

Debit meters

Energy meters across the world may be technically classified accordingto their payment mode, either credit or debit. Credit mode was the firstpayment method implemented by utilities or billing purposes. It is basicallya postpayment mode o energy consumption. By contrast, using the debit

method, a credit is entered in the meter beore energy consumption. Teavailable credit is then decreased according to consumption. It is essentiallya prepayment scheme, and depending on the country, either the term debitmeter or prepayment meter is used.




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Te credit (or postpayment) method uses traditional meters orproducing energy bills based on readings collected over a predefinedcycle. Te bill is then generated and paid by the customer. Tis method

has several advantages, but also disadvantages; among them is the act thatthe customers only know, via the utility, the amount o energy consumedat the end o the billing cycle. Tis can result in late or nonpayment, whichis very difficult to manage between customers and utility companies.Nonpayment may result in disconnection o the customer supply by theutility. Poor management o energy—and associated budget problems—isone o the main reasons or supply disconnections.

Motivated to deal with this challenge, utilities have been increasinglyproducing packages o services and payment methods to be offered totheir customers. Tey also developed methods o assisting their customersto efficiently manage their energy consumption and associated budgetproblems. Te debit method is one possible solution. A debit meter maybe created rom a credit meter with an electricity load switch (or a valve ina gas meter) and extra processing or prepayment management purposes.Electricity debit meters are typically available in single-phase or polyphasedirect-meter models. However, modern implementations include productsor indirect meters.

With this method, as customers use their available energy credit, theycan receive ongoing eedback rom their meters. Tis means that they havea better understanding o their energy consumption, which in turn helpsthem to manage their consumption more efficiently. Several internationalcases demonstrate a significant reduction o energy consumption oncethese systems are deployed.

Tis flexible way o purchasing energy helps customers to adapt theirbudgets to their energy consumption and thus to pay their utility bills

more easily. Te bills may be divided into small, fixed payments to beprocessed at predefined times such as hourly, daily, or weekly. Tis methodhas been proven to be efficient; in international benchmarking exercises,credit purchase transactions are ofen done once or twice a week. Tereare also several cases o customers who purchase credits more than once aday. raditional examples are fishers and recycling proessionals in somecountries who receive their own income weekly, daily, or even severaltimes a day, and are thus more able to pay or their energy consumption in

smaller and more requent increments.Based on the budget and energy management methods o prepayment

systems, it is sometimes thought that prepayment is a service adaptedonly or customers with low incomes or or revenue-protection purposes.




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However, international experience rom countries such as the UnitedKingdom and South Arica shows this system is adaptable to anyonewho would like to better manage their budget, consumption, or carbon

emissions, or or customers with special energy consumption needs suchas vacation homes, tenants, and students. Energy prepayment systems canalso be thought o as similar to the prepaid services provided by manymobile telecom providers.

Since the end o the 19th century, a variety o prepayment productshave been developed around the world. Te first known prepaymentdevice effectively deployed was the coin meter. Afer this, several types odebit meters were developed and implemented by utilities. Because o theirwide variety, a benchmarking exercise is necessary in order to understandtheir eatures.

Now we can turn our attention to each technology and its associatedeatures. Each has advantages and disadvantages, and each is moreappropriate or a specific application. For this reason, this book does notsuggest the best technology, but instead helps you to identiy the mostrelevant technology or your needs.

Classes of prepayment systemsTe different prepayment technologies available in the world are

mainly differentiated by the way the customers interact with them. Teseinteractions happen principally when customers acquire credit, apply itto the meter, and use it. A prepayment system is comprised o not onlythe debit meter but also all its I systems. Tey are deployed or manyobjectives such as customer management, credit generation, and creditmanagement. Depending on the technology, more emphasis is given to

the I system or to the debit meter.

Coin meters. Many o the older coin meter models (fig. 1–24) were usedin the United Kingdom at the end o the 19th century. Even now someutilities around the world continue to use these mechanically operatedmeters.

As the name implies, once the coins are inserted in the appropriate sloto the electricity or gas meter, it enables an amount o credit to be used. Te

coins are stored in a specific compartment inside the meter, and they areperiodically collected by the utility.




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Fig. 1–24. An obsolete coin meter. (Photo by Landis+Gyr.)

In some countries, an interesting tendency was also observed. Coinmeters were used or saving money temporarily, as a kind o sae, to beused when necessary in the uture. Tis illustrates a trend utility companiescould capitalize on—assisting their customers with budgeting or bothenergy expenses and or other needs.

Te level o necessary I systems associated with coin meters is verybasic because most management is executed on the debit meter side. Tereis no need or selling credits, as the coins are a standard in the financial

market. Te main disadvantages observed by utilities are in operationalprocedures or collecting the coins in the field, tampering, vandalism,and thef. Another point is the complete absence o remote control orcredit management.

Some people consider coin meters an obsolete technology, but that isnot entirely true. New electronic modules, technologically upgraded, arecurrently available in the market as a new orm o coin meters, timers, orsockets used by utilities or or private purposes. Te coin meter remains a

useul device or isolated private applications.




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Token meters. Tis technology (fig. 1–25) is internationally known due toits application on payphones around the world. A similar technology hasbeen implemented or energy meters and operates in a comparable mode.

An energy credit is placed on a disposable card that can be read by theenergy meter. It allows the load switch to be closed or the duration o thecredit. Te cards, known as tokens, may be associated with kilowatt hoursor monetary values. Te credit associated with these cards generally comesin two orms:

• Customized meter-specific credit: Pay points are supplied withcard writer machines that can then encode the card with differentamounts o credits that apply to a specific energy meter.

• Noncustomized and non-meter-specific credit: Sets o cards withpredefined credits are generated and apply to any compatiblemeter within the utility. Te range o available credits mustbe careully studied because no customized credit purchaseis allowed.

Fig. 1–25. A token meter. (Photo by Landis+Gyr.)




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An advantage o preset value cards over customized cards is thatcustomers can purchase these cards in different locations such as gasstations and supermarkets; no other control on the credit that is being used

by a specific customer is required. Other eatures o prepayment tokensystems include the ollowing:

• Simplicity o utilization and technology maturity

• Emergency credit available

• Relatively low-cost technology (despite the extra operationalcosts associated with the use o disposal cards)

In contrast to coin meters, disposable cards have created an interesting

phenomenon. At the end of the credit period, when the credit on a disposablecard is used up, collectors keep the cards, because, as with telephonecards, they have intrinsic value due to their different graphic designs. Tisopens up possibilities such as using metering devices or accessories ormarketing purposes.

Generally, the I payment system may manage the levels o creditpurchased per customer and better understand related customer behaviors.Tis is clearly an evolution with respect to the coin meter class.

Even with this eature, the technology is classified as unidirectional.Te credit is remotely generated (and optionally meter-specific), but noremote data retrieval or meter management is possible. For example, it isimpossible to know i the credit was effectively applied to the meter withouta visit in the field. Another challenge is the operational cost generated bychanging meter parameters, such as rates.

Te main market or this technology was in South Arica, althoughthe cards have gradually been replaced by keypad technology and others

meter types. An open standard or generation o these tokens has beendefined by the standard transer specification (SS) and is ollowed byseveral meter manuacturers and I system providers. Tis standard hasbeen converted to an International Electrotechnical Commission (IEC)standard. Other countries such as the United Kingdom and Australia havedeployed token technology.

Smart card meters. Smart card meters (fig. 1–26) represent a natural

evolution o the token meter. Tis technology is also internationallyrecognized and used in several areas, such as the restaurant industry. Tetechnology works in a similar way to token meters, although the cards arereusable and are always meter-specific. For credit purchases, the customersmust carry their smart cards with them.




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Fig. 1–26. Smart card meters. (Photo by BMS Imaging, courtesy of Actaris.)

An interesting development is that this card, in addition to sending thecredit generated in the pay point to the meter, is also able to collect datarom this device. When the card is inserted into the meter slot, it updatesthe customer’s credit and simultaneously stores, on the card, metering datasuch as energy consumption, alerts, or even energy profile data. When thecustomer purchases more credit and it is added to the card, the meteringdata are collected and transerred via the I system to a central databaseto be analyzed. Te data can also be transerred rom the I system to the

meters when changing parameters such as rate. Because o these eatures,this technology is called two-way technology.

Extra eatures include the ollowing:

• Extra protection against raud (smart cards)

• Local debt and fixed-charge management

• Disconnection profile and multirates associated with time, date,and emergency credit

Tis technology is mature and currently used or energy suppliers indifferent countries in Europe and Arica.

One o the technology limitations is the requency o data update.Te periods o data collection or parameterization depend on customer




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behavior in terms o credit purchase. Based on this, the data synchronizationis the time elapsed between two credit purchases. Other limitations aresmart cards management and customer dependence on the pay points to

purchase credit. Problems may also occur with card management, such ascard errors or lost or stolen cards, and must be promptly solved in orderto preserve a good relationship with customers. It is also important toremember that, in general, technologies related to card readers are highlyexposed to vandalism.

Key meters. Key meters (fig. 1–27) use technology similar to that osmart cards but customized or the energy sector. Key meters have beenavailable on the market since around 1990. Instead o a card, they use a keyembedded with a chip that stores and transers meter data in the same wayas a smart card.

Fig. 1–27. A key meter. (Photo by BMS Imaging, courtesy of Actaris.)




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International benchmarking exercises show that competitive energymarkets may produce additional challenges or this technology. Multipleenergy suppliers’ arrangements may entail extra costs because o

sophisticated I systems and operational procedures or credit managementand financial reconciliation, assuming a common pay point inrastructureshared with different utilities.

Difficulties may arise because customers change their energy providersrom time to time, and ofen they keep their old keys (rom the previoussupplier). However, i a customer uses an old key to purchase electricityrom a new supplier, the credit will be incorrectly associated with theprevious supplier instead o the current one, and the credit must bereallocated aferwards. Despite this complication, this technology wassuccessully deployed, in large scale, in the competitive energy market inthe United Kingdom and in relatively low scale in other countries.

Keypad meters. In this system, meters are equipped with a keypad as asubstitute or a card reader or coin slot. Te keypad is used to downloadcredit or parameters to the meter. Tese credits and parameters aretranserred to the meters via encrypted codes known as tokens. Whencustomers purchase credit, they receive a code. When typed into the

keypad, the meter decrypts the code and updates its credit level. Tistechnology is classified as one-way, although extra devices are availableto transorm it to two-way. Tese devices can communicate via local orremote communication media, such as low power RF (radio requency) orgeneral packet radio service (GPRS).

Comparable to token meters, keypad meters use an open standardto define the codes. Tis standard, defined by SS and IEC, defines thealgorithms and rules or the prepayment environment and is ollowed by

several meter manuacturers and I solution providers. Te credits, whichare meter- and utility-specific and are used just once, are transerredto the meters in kilowatt hours. Any calculations or rate conversionand payments such as taxes, fixed charges, debts, and extra services areperormed in the I system. As a result o market or metering supplychoices, other standards are used or producing similar codes.

In operational terms, with credit purchase, the customer provides hisor her meter number and pays an amount o credit. Once the I system

receives the payment amount and meter number, the value is credited tothe customer’s account, and the net credit is converted to a kWh credit.A code is delivered to the customers, which is then entered on thekeypad meter.




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Because it does not depend on any card or key to transport creditor related pay points, this is a very flexible technology in terms o saleschannels. Tis is an important eature that permits the purchase o credit

remotely, additional to the pay point option. Examples o remote channelsdeployed around the world are the ollowing:

• Scratch cards: Tese cards are available in predefined monetary values at different sale points such as gas stations, supermarkets,and utilities. Beore being attributed to a specific meter by thecustomer, the credit is meter-neutral. Afer purchasing a scratchcard, the customer may associate it to a specific meter. For this,the customer must scratch the card and provide both the secret

code and meter number. Tis can be via SMS using a predefinedmessage ormat, the Internet, or by dialing into a call center.Te monetary value, at this stage, is transormed into a meter-specific kWh credit. A corresponding code is delivered to thecustomer, automatically using SMS, web, or phone ormat. Tecustomer then types it into the keypad meter.

• Wireless application protocol (WAP) or Internet: Credit cardinormation is stored in the I system, and then an identification

number and password are given to the customers, who maythereby purchase credit remotely.

• Automatic profile: Similar to WAP, the credit card inormationis stored in the I system, but the customer sets a quantity ocredit to be automatically purchased at set intervals, such asonce a week. Te credit code is sent to the customer via differentmedia, such as secure links using e-mail or SMS.

• Automatic call center: Similar to automatic profile, but using anautomatic call center to provide the customer with the code by voice message on the phone.

• Automatic teller machine (AM): Special terminals allow thecustomer to provide a meter number and pay or energy by cashor card.

• GPRS terminals: Tese devices are installed in sale points suchas gas stations or credit purchase.

• Virtual private network (VPN): A VPN is installed in placessuch as supermarkets by the energy supplier and a partner; thecredit can be purchased by customers in these locations.




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Keypad meters are available in three different designs:

• raditional single-phase or polyphase meters are built as a singlemodule (fig. 1–28).

• Plug-in meters are installed inside the customer’s home andprovide easy maintenance. Tese meters have two parts:

• Base: the wires and terminals

• Measuring device: the meter and switch or circuit breaker

• Split meters have a display separate rom the meter itsel. Temeter is then installed outside the customer premises suchas in special boxes on distribution poles or on the ground.Te customer display unit is installed inside the customer’shome. Split meters may be interconnected by a wired network,low-power RF, or power line carrier (PLC). Among severalother applications, the split meter may be an interesting optionor revenue protection actions.

Fig. 1–28. A traditional keypad meter. (Photo by Landis+Gyr.)




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At this time, South Arica is the largest market in the world or keypadmeters. Tey are also deployed in several locations in the world includingSouth America, Europe, and Oceania.

Remotely managed meters. Te remotely managed meter class representsa natural evolution rom the previously discussed types. Tis meter isbasically a debit meter with a wide area network (WAN) communicationdevice, although it can use different communication techniques.

In contrast to the technologies that require tokens, cards, or keys ordata transportation, this prepayment system requires no extra action romcustomers. As in the keypad model, the customer is able to purchase creditat a distance via different sales channels. aking into account the WANcommunication capability o the meters, once the customer purchaseselectricity, the credit is automatically transerred rom the I system andupdated at the meter. Te same procedure applies to updating parameters.

A remotely managed meter can be provided with a physical keypad(fig. 1–29) or a virtual keypad controlled by buttons. In order to dealwith communication ailures, as with keypad meters, some systemsprovide 20-digit codes to use or credit purchase, as a backup method.I communication ails, customers may optionally type the code on the

keypad meter, and the credit will be locally updated.

Fig. 1–29. A remotely managed meter. (Photo courtesy of Iskraemeco.)




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Credit and other prepayment data management can be accomplishedtwo different ways:

• Locally in the debit meter: As with key meters or smart card

meters, the monetary credit is locally managed, and anyconsequential taxes or ees are managed by the meter itsel.

• Remotely in the I system: Meters are connected to the serverin an online mode. Credit management and any other datamanagement are executed remotely by the I system andrequently displayed in the meter. A typical credit meter may bealso used or offering prepayment services, with all calculationsand management centralized in the I system.

Several technologies are being used to provide this kind o prepaymentsystem, such as SMS or GPRS meters. Tey are being implemented in manycountries. Tis technology provides a very advanced level o prepaymentservices. Tis kind o technology, its potential services, and other uture-proofing services are essential in smart metering systems.

Emergency credit and social disconnection

Prepayment systems are recognized as a way to avoid local interventionsor energy supply disconnection, as debit meters can sel-disconnect theenergy supply. But, as with any other service, it can always be improved.In order to help their consumers with financial difficulties, research anddevelopment departments o utilities and solution providers are workingtoward creating new services and opportunities or customers.

Emergency credit was the first known initiative in this direction. Whenthe meter credit reaches zero, customers may activate an emergency credit.

In other words, an emergency credit level can be added once the previousone has been exhausted. Tis is common or avoiding disconnectionsduring nights, weekends, or holidays. Similarly, some energy suppliersaround the world, ofen subsidized by local governments, offer monthlyree energy credits to their customers.

Tis solves some problems, but can also generate new debt to consumersthat will have to be managed in the uture. Te energy supply may still becut off once the emergency credit ends. Some utilities in the world have

implemented social disconnection services to deal with this challenge. Withthe social disconnection method, an initial emergency credit is offered tocustomers. While this credit lasts, energy demand is ully available or thecustomers’ consumption, without any power limitation. When this credit




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limit is reached, instead o disconnection, new emergency credits areoffered, but they are associated with power limitation.

Tese limitations tend to reduce the power supplied to a premise to a

level that provides only basic needs. Local government authorities usuallydetermine those amounts. As soon as a predefined amount o credit isused, the limitations come into effect. In this way, both a ull disconnectionevent and the creation o nonpayable debts are avoided. Afer a definedperiod under minimum power limitation, the consumer may be ullydisconnected or subsidized by government or charity associations.

In order to better understand the concept, consider the ollowingexample: A premise is regularly supplied with less than 6 kW o maximumallowed power. Te first emergency credit amount may be associatedwith this value. When it is reached, another amount is offered, but nowassociated with a power limitation o 3 kW. At its end, this level could benow reduced to just 1 kW. Afer a predefined time elapses, this customercan be optionally ully disconnected. In this scenario, a more flexible way oproviding emergency credit is associated with monetary amounts, powerlimits, and predefined time periods.

Energy package ratesSome utilities are testing products related to an energy package rate.

Tis kind o package is similar to that o mobile telecom providers in whichcustomers may contract monthly packages or Internet use, calls, and SMS.Tis system works in different modes:

• Advisor mode: Customers establish usage targets based ontheir number o credits contracted or a predefined period. Forexample, a customer who contracts or 900 kWh per month

could set a flat profile o 30 kWh per day. Once the daily value isreached, customers are inormed via alert events. At this stage,they are able to analyze their consumption and adapt theirbehavior i necessary. Tis profile may be more sophisticated inorder to include eatures such as hourly/seasonal profiles.

• Curtailment mode: Customers are given a power limitationprofile. Tey are temporarily disconnected when a specificamount o energy consumption is achieved within a predefinedtime. Tis cutoff can take only a ew seconds. Tis mode is akind o a drip-in system. For example, customers may contractor a monthly package o energy and divide their available creditinto small blocks o energy. Let us assume here a flat division




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in amounts o 10 watt hours (Wh) per minute. In this case themeter would authorize an average use o 10 Wh every minute. Ithis amount is not ully used, it will accumulate in the meter or

the next period. When this accumulated amount is exhausted,the meter is disconnected until a new energy block is available.In this scenario, consumers would wait or one minute. Aferthis time elapses, the meter is saely allowed to reconnect andpermits the use o the next credit block.

One o the several advantages o these services is that the customers ofenknow how much they are supposed to pay or energy in a period o time.Tis may help them learn how to manage their consumption. Tis may

prevent problems o debt and delinquent payment. Tis service is normallyassociated with a prepayment service. Tus, i the customers decide to usemore energy in a specific period than their energy package allows, theycan just add a new credit to their meters. Tis avoids renegotiating theircontract arrangements or temporary requirements.

Telemetry and Telecommand

elemetry and telecommand methods allow device data collection,parameterization, and controls to be remotely executed. In the meteringdomain, these techniques can be classified in two categories. Te firstuses a local area network (LAN) technology to provide remote access tothe devices within a short range. Tis was the first technology that wasavailable in the market. Te second uses an additional WAN technology toprovide access ully remotely.

Short-range techniques

Concentrated access points. Tis was probably the first network to beused or metering purposes. It normally uses a wired LAN. Meters areinterconnected via a defined medium, based on a specific standard. Alocally concentrated access point is available in order to provide individualaccess to them. Tese networks are limited to a fixed number o devices.

Tere are several recognized standards available in the market and used

by manuacturers and solution providers o metering systems. Examples othis kind o network standard are the Meter-Bus (M-Bus) and the EURIDIS.

Te concentrated local access point can use different technologies, suchas a magnetic plug or a traditional serial port. Energy management or




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display devices could be connected to it in order to provide a centralized view o the devices in this network. Tey execute advanced analysis such aslocal demand management or energy balance or transormers. Handheld

units can also be connected to these ports and may be used or centralizeddata collection or parameterization purposes.Te disadvantages o these arrangements are the networks’ operational

costs or installation and maintenance and the need to regularly sendtechnicians onsite or data collection and parameterization purposes. Tetime elapsed rom an event recorded and its data collection in the field mayalso be too long and produce undesirable delays. A clear example o thisis reporting a meter ault or a tamper. A vast number o tampers occur bymanipulation events (devices are constantly installed and removed), andby the time an inspection takes place in the field, the raud device may havealready been removed.

An advantage is the reduction o operational costs, or example, becauseutilities no longer need to access their meters individually. Tese costsbecome significant when meters are installed in customers’ premises.

Independent access points. Unlike concentrated access points, theselocal networks do not require any centralized point o access. A classic

example o independent access points is ound in short-range, low-powerRF networks. In this case, handheld units and meters are both equippedwith an RF module that is used or data transer events. Meters may thenbe individually managed.

Interesting services may be employed, such as data transer events usingwalk-by or drive-by services. A handheld unit is connected to a special RFmaster and is embedded with sofware that is responsible or managinglocal automatic data collection and parameterization. Tis device is given

to a technician (fig. 1–30), who walks close to the premises (walk-by). It canalso be installed in a vehicle that is driven next to the targeted consumers(drive-by). Te available range o the communication technology useddefines how close it must be to the meters.

When the meters are detected, they automatically send their meteringdata such as registers and alarms to the handheld units. Simultaneously,these devices are updated with new parameters, like change o rates, irequired. When the vehicles or the technicians return rom the field to

their utilities, the collected data are then transerred to a central databaseor urther processing.




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Fig. 1–30. A special handheld unit used for walk-by services. (Photo Courtesy of Actaris.)

In the drive-by mode, it is very common to employ public service vehicles such as reuse collection trucks. Tese are constantly drivenaround a specific region, and given that the data transer service is ullyautomatic, the extra operational cost required is minimal. Te timerequired or data gathering is relatively short. Similar to the concentratedaccess point method, one o the disadvantages o this system, is relatedto the time elapsed (even i reduced) between the event record and itscollection rom the field.

Wide area techniques

Because o several needs, such as those associated with more requentremote data transer events, short-range techniques were upgraded withWAN devices and complex management systems. Tere are many termsassociated with methods o remote data transer and management, andnew terms are created every day. Specialists still disagree about what exactly

these terms mean and their boundaries. It is more important, however, tounderstand the opportunities and challenges o wide area techniques. Alltheir eatures and unctionalities combined are part o the technology usedin smart metering implementations.




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Among these methods, the first that appeared on the market wasautomatic meter reading (AMR), a technique to remotely collectmetering data and associated parameters. Afer AMR, automatic meter

management (AMM) came on the scene. It includes the unctionalitieso AMR deployments and offers extra capability or management o data,services, and devices. Metering data are recognized and prioritized inorder to generate benefits to those in the energy market. Bidirectionalcommunication is essential or AMM technologies.

Another concept is advanced metering inrastructure (AMI), whichcontains all the unctionalities o AMR and AMM implementations andalso addresses some other areas, such as interoperability, data security,scalability, and uture-proofing integrations. AMI is considered the mostcomplete technology or advanced metering systems.

In terms o data transer, wide area techniques can be organized intwo ways:

• Individual device management: Using this method each deviceis connected to an individual WAN modem. Tus, they are ableto communicate directly with the I system without any otherauxiliary device. An example o a device using this technology isa GPRS meter.

• Concentrated device management: Devices are grouped in thefield via data concentrators. Tey are able to centralize andmanage a number o points in the field and link them to theWAN. Tey provide the bridge between the devices and theirrespective I system. PLC is an example o this technology.

Data management and integrationAn important concept or metering systems is data management.

Different devices are able to remotely communicate with I systems.However, they are only able to deliver benefits to utilities i associatedwith an advanced I metering system that efficiently analyzes the dataand consequently produces strategic inormation to several participantswithin the energy market, such as customers, regulators, energy serviceproviders, and utilities. Data integration is another essential aspect because

sometimes the data can only become valuable inormation i associatedwith other data sources like external databases and systems. An exampleis the association between data rom the energy network platorms andmetering systems.




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Many systems interact with metering systems or depend on them. Tus,it is important to have a platorm or all data management transactions.Te platorm is generally responsible or managing the metering devices

in the field and their data. It is also responsible or data collection, dataintegration, and events like alarms and logs.Te most important I system to be integrated with metering platorms

is billing, which plays a key role in revenue collection or utilities. Inmetering terms, billing is responsible or linking the registers (originatedby the meters installed in the field) to complex rates and other billingparameters such as taxes and energy prices. It is also responsible orgenerating and managing utility bills and payments. Meter inormationcan be easily shown on utility bills. Historically, these bills are one o themain channels o relationship between customers and suppliers.

It is essential that the meters and the billing system are ullysynchronized. Problems o coordination between them are requentlyresponsible or revenue losses within energy utilities. Other systems can beintegrated with metering platorms, such as payment and energy networkmanagement applications.

In the smart metering world, the I metering platorm is crucial.Several eatures can be incorporated in this system because o its key role

in management and integration. Tis system is known as middleware.Middleware is a primary ocus o smart metering implementations.

In practice, the most important component related to a meteringsystem is I. It is very important to optimize integration among I systems,meters, and associated inrastructures in the field. Historically, specialistsrom the metering department were responsible or managing their isolatedand dedicated metering sofware, while specialists rom the I departmentwere responsible or managing the complex corporate systems. Tis kind

o structure worked properly until metering became more strategic and itssystems more complex. Now, these two groups o specialists work togetherin order to provide an optimized platorm to the utilities and the market.Te difficulty is, as they did not work together in the past, metering and Idepartments still tend to work in an isolated way. Te relationship betweenthese two groups is sometimes nonexistent and difficult to improve.

Te opportunities around metering system implementations canonly be met i both groups work in a ully integrated way. It is important

to realize that this new environment may require some corporatereorganization, governance structures, training, efficient projectmanagement, communication, and other advancements.




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Revenue ProtectionRevenue protection means reducing losses, whether they are classified

as technical or nontechnical. echnical losses are involuntary, naturallygenerated, and related to the energy environment, such as losses producedby the Joule effect on electrical cable. Nontechnical losses may be voluntaryor involuntary and due to mistakes, excessive delays to treat aults, or illicitactions; in other words, energy effectively delivered to the customers butnot properly billed.

Tis section provides an overview o losses because one o the mostimportant motivations or international deployment o projects involving

metering systems is to prevent loss. Financial losses are a challenge ormany utilities in the world, their customers, and other participants in theenergy market. Tere are three causes or losses:

• Mistakes may happen in the field, in work done by meteringspecialists, or in the I system within the customer or billingdatabase. Tey are involuntary but may generate losses whenthey occur. Examples are inversion o cable polarity during ameter installation process, an inaccurate collection o registers,

and an active customer in the field but not shown in thebilling system.

• Faults are normal operational problems that may occurin several components o the metering system, such as aninstrument transormer.

• Tampering is deliberate action in the field or corporate meteringenvironment to generate reduction in customer billing.Examples are meter bypasses or illicit change o actors relatedto indirect meters within the billing system.

Te most essential part o a revenue protection service is its proessionalstaff. Based on the required technologies, expertise, level o actions in various sectors, and the investment necessary to achieve the utility targets,a project should be specially set up or this purpose. Smart meteringprojects seem to represent key opportunities or utilities that would like tocombat their nontechnical losses.

Smart meters are essential in assisting utility companies both toachieve their revenue protection goals and create new opportunities ortheir customers.




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Technical losses

echnical losses can be produced by several components o an energynetwork and, in metering systems, apply only to electricity meters. Gas

meters have to be battery powered, whereas electricity meters are, ocourse, powered by the grid. Te energy that electricity metering systemsthemselves use is considered meter sel-consumption and the consumptiono its associated devices such as instrument transormers.

Regarding operational aspects, however, technical losses apply toboth gas and electricity metering systems due to associated auxiliarycomponents, or example, a WAN modem.

Meter burdens are generally based on international and local standards,

but efforts are made to reduce losses. Manuacturers are designing thesedevices with more and more aggressive loss goals. Utilities must alsospeciy their standards and specifications in order to meet their differentobjectives related to revenue protection, energy consumption reduction,and carbon emission targets.

Tese losses are sometimes ignored by some utilities due to the lowlevels o consumption in a single metering system. However, takingaccount o other actors such as the entire lie span o these platorms and

the total number o installations, technical losses may become a significantamount o energy consumption and consequent revenue loss.For illustration purposes, let’s consider a residential park o single-

phase electricity meters without any auxiliary devices. Te ollowing isadditional inormation:

Quantity of meters 5 million

Total individual meter consumption 1 watt

Life span per meter 20 years (about 175,000 hours)

Assuming that meters are installed or their ull lie span, an individualmeter will consume around 175 kWh, and the entire metering park850 GWh in this period. Considering monetary conversions and financialaspects, a significant amount o revenue loss to the utilities could result.

Statistical reports, energy balance in the energy network, and preventivemaintenance are important tools or utilities to use to reduce their level

o technical losses. Actions taken to reduce nontechnical losses may alsoinfluence technical ones, such as changing the electrical cable structure toreduce energy thef, which will also result in an improvement in the qualityo the grid.




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Nontechnical losses

Several actors influence nontechnical losses in many countries. Teselosses are sometimes controlled, and sometimes they are not. Tey affect

the utility practical processes in an end-to-end way. Tese actors aregenerally related to the ollowing:

• Inefficient utility processes: unbilled energy, meter datacollection, invoice delivery and collection, bills paid late, andunpaid bills

• Utility environment and market behaviors: cultural, legislation,regulation, and social

Considering these actors, savings will not be achieved i technicalactions in the field are disconnected rom the environment and marketbehavior aspects. Sometimes, cultural actions and education campaignsare necessary or changing established views. For example, i eitherdue to impunity or lack o inormation, some consumers believe thatenergy thef is not a crime. Some utilities encourage conservationby distributing electricity-saving light bulbs and bonus vouchers topurchase energy-efficient appliances. Tese programs demonstrate the

importance o optimizing energy consumption and help to lower costs orlow-income consumers.

Nontechnical loss levels are also based on ully dynamic conditions,and because o this, continuous actions need to be implemented in severalsectors. It is important to prevent and reduce the level o losses, but it isalso essential to educate customers on how to use their energy efficiently.However, utilities still need to assist customers with their budget andpayment behaviors with respect to their consumption.

An end-to-end utility process map and analysis are recommended.All processes should be careully analyzed because sometimes indirectprocesses may affect utility losses, or example, ault-related losses. Devicescan develop aults, and metering system components are no exception tothis rule. Faults in metering system components may produce incorrectmeasurement o energy consumption. As these are hard to identiy, theyeventually stay in the field or a long time until identified and corrected.Immediate detection o and solutions or problems in the field may

significantly reduce the level o losses.Another interesting example is related to public streetlights. In somecountries they are billed by utilities based on average orecasts, althoughseveral actors may influence these orecasts and they are unlikely to beprecise. Seasonal parameters affect daylight time and respective energy




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consumption. It is also hard to synchronize the utility database with theones rom public lighting service providers. Uncontrolled installations,maintenance, and upgrades may occur. Average payment structures are

common. Tis method o billing does not stimulate reduced levels olosses in their networks. echnical losses may additionally occur i theyuse private circuits or inefficient equipment, which is then unbilled. Withnontechnical losses it is no different; clandestine connections may be madein these streetlight circuits that are hard to find.

echnical action is necessary to assist utilities to reduce their levels onontechnical losses. A nontechnical loss is a complex subject and a growingchallenge or some utilities in the world.

Intelligent analysis. Administrative mistakes are a common source olosses or utilities. Te majority o them are in utility database registersand controls. Unmeasured energy sometimes comes rom clandestineconnections, but it is also related to database mistakes or inefficientupdates. Te inputs and outputs o these databases are other sources olosses when badly managed. Incorrect meter data collection, invoicedelivery, and billing collection are common examples.

One o the first actions that utilities should take is to analyze and update

their databases. Analysis tools are important platorms to be used in revenueprotection. Another important aspect is the change o organizationalstructure. For utilities with a serious problem o nontechnical losses, it isessential to create an intelligence center exclusively or this purpose. It mustprovide dynamic controls on the losses and eedback on actions to reducethem. It is important that they will be able to control the level o losses ordifferent network boundaries, such as grid transormers and eeders orelectricity grids. Tis may be achieved with the installation o meters at

strategic points or energy balance (fig. 1–31). Due to the dynamics o thelosses, these analyses should be graphical, based on a profile. Periodicalbalances that are not based on load profiles are inefficient or revenueprotection actions. For example, a level o 10% o nontechnical losses in amonth may have no bearing on revenue protection actions. Tis percentagemay reflect different events such as tampers or aults that are still in placeor were detected and already corrected.

Te center should be provided with a great level o detail on metering

such as logs, alarms, and advanced inormation, such as phase vectors orelectricity meters. As much o the analysis provided by this center as possibleshould be online to improve efficiency o the revenue protection service.




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Fig. 1–31. Example of an energy balance graph

It is hard to imagine that utilities responsible or millions o meterscould execute manual and individual analysis o their metering systems.

Analysis systems must be deployed in order to provide requent automaticanalysis and eedback about the metering park. Important elements to beexplored are load curves and other energy profiles. Intelligent and dynamicalgorithms should be used, as well as automatic workflows, to ensure thatall detected irregularities are treated in the field.

Support technologies for revenue protection. Metering circuits have tobe well protected to prevent illicit activity—tampering and vandalism.

Proper boxes and conduits should be deployed to avoid energy thef andto permit easy detection o tampering. Reinorced cabinets and boxes alsoprotect metering systems against vandalism and tampering.

One o main issues associated with tampers and manipulation is thelack o legal evidence. Tat is why utilities are sometimes able to detectirregularities but not to recover their losses. Seals and security labels areimportant ways to preserve tamper evidence. Tey provide clear supportto prove that manipulation occurred or was even attempted. It is alsoimportant to provide enough proo to distinguish between illicit accessand legal actions such as mistakes made by a utility company duringinstallation and commissioning processes.

Seal and label technologies are internationally available rom basicmodels to high-tech ones. Te utility should choose the model most




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adaptable to its business. For proper evaluation, it is vital that a number oeatures are in place. Seals and labels must be at least:

• Saety proo. For example, special attention to specifications and

training should be ocused on any material that could conductelectricity in order to avoid accidents.

• Utility specific and individually identifiable and traceable.

• Resistant enough to avoid alse detection but able to producelegal evidence o illicit manipulation. Physical evidence isessential even i digital alarms are present.

• Usable once only and noncloneable.

• Customizable and adjustable to the environment.

An I management system or seals is also important. For example,control is essential to know where, when, and by whom seals were installed.Te lack o control and tracking methods is a common problem amongenergy companies and may generate huge financial losses. Tere is noadvantage in installing seals i they are not properly managed.

amper detection is a undamental problem, but there are also problems

associated with costs and procedures to recover past losses. Because o this,several utilities have invested in research to develop technologies that areable to prevent tampering. Several manuacturers claim to have antitampermeters and instrument transormers. Tere are even manuacturers thatclaim they can produce meters capable o compensating or different kindso nontechnical losses. Tese meters would have the capability o detectingtampers, understanding the level o measurement error produced bythem, compensating or it, and keeping the meter itsel within a specified

metrological class.In some situations, enorcing the security o the metering system is

not enough. Tese are cases where energy networks should be upgradedto enable the required level o tamper protection. In electrical terms,there are several grid arrangements in the world designed specificallyto avoid tampers. Some manufacturers also claim they can produceantitampering cables that are designed to prevent and detect clandestineconnection attempts.

Technical inspections. Tere are basically two kinds o metering systeminspections that can be executed in the field. Tey can be visual or technical.As the name suggests, visual inspections produce a visual overview onthe metering installations and detect related irregularities. echnical




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inspections should be preceded by a visual inspection. Tese inspectionsconsist o the execution o the technical metering tests themselves usingappropriated tools and equipment (figs. 1–32 and 1–33).

It is essential that specialists are correctly trained. Saety must still beparamount or any metering action. Saety equipment, metering tests,diagnostic equipment, and tools should be provided to specialists.

Te inspection criteria are ofen based on standards and regulations.Utilities may use these inspections to interact with customers. Tis wouldbe an opportunity to provide saety analysis on the customer’s meteringpremises, training the customers, and resolving any customer concerns.

Fig. 1–32. Example of a metering test device. (Photo courtesy of Iskraemeco.)




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Fig. 1–33. Example of a data collection and analysis device for metering purposes.(Photo courtesy of Iskraemeco.)

ConclusionMetering systems have been evolving since their conception early

in the 19th century. Since that time, several technologies have comeinto the market, thanks to research and development projects andconsequent innovations.

Gas and electricity meters are available in many models and use differentmethods or measurement purposes. Tese methods change according todiverse parameters, such as the needs related to the customers’ loads and

utility strategies.Meters separate the home environment rom the utility environment.Tis boundary eature makes it an important element in providing arelationship between the utilities and their customers. Based on thiscore unction, new payment methods have been emerging that can help




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customers to adapt their budgets to their energy consumption needs.Tey enable consumers to better understand their uel usage by providinginteraction with a number o different sales channels and also with

customer display units. Tese technologies are quickly becoming essential.Meters are more and more resembling computers. Tey are remotelymanaged using different techniques such as AMR, AMM, and AMI, andgenerate a great deal o data to be treated centrally by energy utilities. Teyare thus not isolated devices but part o a system: the metering system.

Metering systems have become increasingly complex and provide moreopportunities to different market participants. As consequence o this, Iand metering groups must now work in better cooperation. All the utilitystakeholders should also work together to enable their metering systems tobecome smart applications or their companies. Efficient communicationand training are important tools in this endeavor.

Te majority o smart metering projects in the world have as one otheir objectives reducing operational losses, due to their cost to energycompanies. Te challenges o nontechnical and technical losses aredifficult to solve, but great progress is being made with the appropriatetools and technologies.

Smart metering is not a trend but is a real solution that opens up new

opportunities to utilities.



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2Smart Metering Systems

In chapter 1 we discussed basic energy metering systems, theireatures, and auxiliary components. Tat inormation provides a solid

background or understanding the concepts involved in smart meteringsystems presented in this and later chapters.

Tere is much to discuss about these systems, and there are differentways to interpret their eatures, unctionalities, and opportunities.Practically speaking, a smart metering system is an advanced, flexible,interoperable, uture-proofing system. Te first three terms suggest a

system that interacts with others, and this capability enables the ourtheature, uture-proofing. Interoperability may also generate a practicallyunlimited number o service opportunities. A smart meter combinesthese eatures to provide innovative customized services and unctionsor different participants in the energy market such as customers, utilities,and regulators.

In another words, the benefit is all these associated systems caninteract with other system inrastructures to generate new opportunities.

In contrast, a single system can be limited by its predefined scope. Whenintegrated with systems that have similar objectives or configurations,new opportunities may appear, such as cost reduction using commoncomponents or interdependent services.

Flexibility is equally important, because smart metering systemimplementation varies rom environment to environment and is directlydependent on the needs o the parties responsible or its deployment, suchas utilities and regulators. Implementation is generally customized; it is

unusual to find one system implementation identical to another in thereal world.

In the past, metering system components such as electricity or gasmeters were seen as technical elements. Tis was probably due to the




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complexity o the early systems. Engineers built them based on technicalobjectives and the technology available at the time. Te design and locationo the electromechanical electricity meter are classic examples. Its register

display ormat is not as customer riendly as could be designed today.Sometimes they are located outside customer premises. Te question is,does this really enable customer interaction? We can easily see the answerto this question by asking another one: How many o us bother to monitorour consumption on a daily basis?

A customer display is a special part o the meter because it can providethe interaction between customers and their utility providers. Te designmust be adaptable to customer needs. For example, perhaps it would beeasier or users to understand their consumption i it was provided as amonetary value. Meters may not be the best devices to act as customerdisplays, unless designed with that purpose in mind (fig. 2–1). Displaysinstalled inside customers’ homes offer opportunities or customers tobetter understand their energy consumption and the benefits availablerom new services.

Fig. 2–1. Example of electromechanical meter registers versus a modern customerdisplay unit. (Photo courtesy of Yello Strom.)



Chapter 2 Smart Metering Systems

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Te term interoperability , with respect to metering systems, generallyreers to technology, but not necessarily. In order to make good use oall available metering advantages, customers as well as other market

participants must interact with these devices. Te customization that asmart metering system brings is an important tool to achieve this objective.We used the meter register display and locations as simple examples,

but there are several hidden opportunities. We will discuss some o them inthis book. A study o these aspects will enable you to understand not onlywhat a smart metering system is but also what it is capable o in the uture.

Beore adopting any solution, legal aspects must always be analyzed suchas patents, intellectual property rights, regulatory requirements, and severalother areas. Tis is valid or all the technologies, technical architectures,solutions, services, communication methods, and opportunities studied inthis chapter and or any decision involving smart metering projects orenergy utilities.

At this stage, let’s explore the smart metering system concepts andcomponents by analyzing the environment, related components, andunctionalities. echnical architecture connects them all.

Technical Architecturesfor Energy Smart Metering Systems

A technical architecture is a logical structure that provides ways orphysical and logical components to interact with each other as well as withclients or providers, such as users and associated I systems. Private andpublic standards are responsible or providing the rules o interaction or

these components.Tere are different architectures or smart metering systems, offered by

solution providers and manuacturers and implemented in utilities aroundthe world. o analyze them, it is necessary to establish a common design.Let’s first look at an advanced architecture that reflects some o the mainsystems that may be associated with smart metering (fig. 2–2). Severallayers that interact with each other in different ways orm this architecture.




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Fig. 2–2. Architectural environment diagram

Tese architecture layers include the ollowing: • System integration: the environment that integrates smart

metering middleware with other systems. Tis integration isimplemented with external and internal systems such as Isupervisory control and data acquisition (SCADA), billing, andcustomer relationship management (CRM) applications. Teobjective is to provide output and receive input data rom and tothe middleware.

• Middleware: a system o I sofware applications and databases.Its main responsibility is to manage the smart metering devices,data, and unctionalities, as well as to provide integration withother I platorms. Middleware is ofen housed on servers inthe corporate I inrastructure.

• WAN: wide area network communication devices responsibleor providing remote access to metering systems orm this

layer. It can be a single medium or a group o media in a hybridarchitecture. WAN modems can be embedded in meters,external gateways, data concentrators, external hotspots, andother devices.




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• LAN: generally present where smart metering architecturesmake use o data concentrators. In this case, the in-homemetering gateways are part o the LAN (local area network)

environment, using a LAN modem to obtain access to a WANthrough a data concentrator.

• In-home metering gateway: provides interaction o the smartmetering devices through different network layers such asWAN, LAN, and HAN (home area network). It is also ofenresponsible or managing the data traffic in the WAN or LANand HAN environments.

• HAN: the environment or devices installed in the customer’shome such as meters, small and large home appliances,and motion sensors or in-home automation. In someimplementations, HAN communication media may be the sameas those used or LAN technology, but are generally differentrom WAN media.

• Customer displays: may be available or customers throughdifferent sources such as in-home display devices; existing

devices in their premises such as personal computers, handhelddevices, home automation panels, mobile phones, andtelevisions; call centers (customers could call these services orinormation on their meter and credit transactions); and webinteraces on Internet or intranet environments (e.g., in-homemetering gateways with embedded web servers).

We discuss the individual components in this chapter. At this stage,beore studying these layers in more detail, it is important to understand

the way they are architecturally organized. Basic inormation about theabove layers will help you to understand the architectural organization.

Architectural organization

Several architectures are available or smart metering systems. Giventhat there is no perect architecture, they may be adapted to differentenvironments and needs. Architectures define the way the devices are

managed and interact, and how the processing is divided in the differentlayers. Due to the number o possible architectures and the complexityo their system arrangements, this section ocuses on just a ew o themain options.




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Data management. A middleware system is generally organized inmodules. A module contains a range o similar unctionalities. Examples omiddleware modules are task scheduling and data security management.

Tese modules are organized in a centralized or decentralized way.In a centralized mode, a variety o modules and unctionality areconcentrated in a single middleware system. Te middleware is installedon a server or cluster o servers, and all the user and system accessesare centralized. Te main advantage associated with this method is datamanagement. Te reduced cost o maintenance is another valuable aspect; itis not necessary to synchronize data in middleware. A centralized databasemanages data collection with a global view and processing o data. It alsoacilitates system integration or data import and export. Te data access view in middleware can give an individual data view per region even istorage and management are centralized. Te downside to this method isthe complexity o the middleware. Te association o several modules in asingle global system may add management risks.

Te alternative is to decentralize management. One possible view isto organize middleware modules in a regional deployment arrangement.Tis method is sometimes used by utilities that serve a large area andnumber o customers. In this case, deployment is divided into regions,

not necessarily related to political or geographic arrangements, and eachregion is individually managed. It provides the possibility o customizeddeployment per region. Tis strategy can be more adaptable to customersand their specific needs. Another interesting option is to deploy a hybridoption in which part o the middleware arrangements, generally the coreones, are centralized, and part are decentralized.

A different view or centralized management is the possibility ousing existing applications as part o the smart metering deployment. In

this scenario, some o the unctions, commonly executed by middlewareapplications may be provided by other I systems. Tis may be a verycost-effective option but can generate more complexity or data integrationprocedures. Examples o platorms that can be integrated are SCADA, CRM,Geographic Inormation System (GIS), data mining, and data security.

Data processing. Smart metering system processing may be implementedin different layers. Te division depends on several aspects such as

communications technology and I systems. How these systems areimplemented may influence what unctionality is offered and the speed oglobal response.




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Fundamentally centralized processing. Tis arrangement does not meanall system processing is centralized, but only the majority o its coreunctions. Te idea is to concentrate these unctions in the middleware.

In other words, we remotely manage the majority o meter unctions. Tis varies rom a simple on-demand task management organization, up to aull online environment. An example o an on-demand environment iswhen the data collector module, located in the middleware, starts the datacollection procedure.

Te other extreme could be a prepayment system where creditmanagement, in special decremental tasks, is centralized in themiddleware. In this case, we requently collect register inormation romthe metering system and calculate credit levels in the middleware. Temeter then receives requent credit updates and acts as a display only(fig. 2–3). In the event o credit purchases, we calculate all related fixedcharges, ees, and other financial charges in the middleware. Te credit isthen periodically updated, taking into account divided amounts such asees and fixed charges.

Fig. 2–3. Example of prepayment using centralized processing




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An advantage o this arrangement is that it significantly reduces thelevel o complexity o field metering system equipment. Te meters andassociated devices can then have a low level o extra processing (not related

to its main metrology unction). We carry out advanced unctions, ornon-metering-related unctions, in the middleware.Disadvantages o this option are heavy reliance on centralized

processing and ull dependence on WAN communication media. Failuresin communication may produce credit management problems, such asinefficient updates or debt generated by disconnection due to insufficientcustomer credit.

Fundamentally decentralized. In this option, most main tasks are executedlocally in the metering system devices. Te meters are ully smart andexecute complex calculations and unctions such as monetary operations,credit management, consumption orecasts, energy efficiency unctions,and carbon emission estimation.

Assuming the same prepayment example as above, all creditdecrementing would be ully executed in the meter itsel. Te meter is alsoresponsible or managing payment o any periodic charges like ees andfixed charges (fig. 2–4).

Fig. 2–4. A prepayment scenario using decentralized processing




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Tis provides a reduction in middleware processing as the meteringdevices will process part o the tasks. An advantage is low dependence onthe communication media. A disadvantage may be too many unctions

managed by the energy meters. Tis may result in problems in the coremanagement unctions o these devices. Tis risk can be reduced byimplementing an embedded but ully separated management module.

Hybrid processing. Tis combines both o the previous cases. Some o theunctions are centralized and others decentralized. Tis configurationseems to be the most appropriate or the majority o smart meteringdeployments. It assumes that nonmeasurement modules implementedin the metering devices are completely separated rom the measurementmodules. A common implementation is an energy meter associatedwith an in-home gateway. Tis gateway is a ully separated device thatinteracts with the energy meter. It can be externally located or embeddedin the meter.

Another example o hybrid processing would be to purchase creditlocally and allow the middleware system to manage the total amount due.

Communication Networks—Logical and Physical Arrangements.

Network topology is an important aspect o smart metering systems dueto its interaction with the services a utility may offer. Te topology choicemay influence several aspects o the system such as communications,network robustness, and availability. A communication technology maybe dependent on a specific topology.

Te ollowing sections describe some o the topologies internationallyavailable or smart metering systems. As there is no perect solution, theutility should carry out laboratory and field tests on technologies and

related network arrangements, in order to identiy the most appropriateone or its needs. Hybrid options are generally recommended to reduceassociated systemic risks.

Mesh networks. Tis is an interesting arrangement or smart meteringsystems. It may offer many advantages to utilities such as communicationreliability, availability, and cost o modems. Mesh networks are a maturetechnology deployed in many industries, which is why utilities have opted

to deploy smart metering systems based on this kind o network topology.In this configuration, nodes connect to as many neighboring nodes

as possible during the connection procedure (fig. 2–5). Tis may happenseveral times, such as the first time a device is connected to the networkor during reconfiguration (due to node removal or constant intererence).




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Fig. 2–5. Node arrangements in a mesh network

Data can transer between two points by different routes at differenttimes. Tis is because data are always routed the best available way. Teroute can change with temporary conditions on a network.

Tese networks can eed data concentrators or head-end devices. Tesesupport local data connection in the LAN network and route data in theWAN environment communicating with middleware. Te mesh permitsa node to be connected to more than one data concentrator or head-end

when different routes are used. Because o these eatures, these networksare generally highly reliable and highly available or use.

In this arrangement, we normally need two modems per meteringgateway: one or the LAN and another or the HAN. Tis is ofen due toactors such as incompatibility o the targeted media with some devicessuch as gas meters and appliances or because some standards limitcommunication inside or outside the home. In this arrangement, in-homedevices such as customer display units are dependent on a meter or external

gateway device to communicate with data concentrators or head-ends.However, with a mesh environment a second modem or HAN devices

may not be necessary because the same medium is ofen appropriate orboth LAN and HAN. In this case, the data concentrators or head-ends are




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able to communicate with both meters and in-home devices. Tis can be a very cost-effective arrangement.

One o the disadvantages o these arrangements is the effective range

o communication. For example, in RF (radio requency) environments,line-o-sight signal propagation may be reduced or several reasons,such as building arrangements in urban areas, material penetration, andintererence. Sometimes, this range is insufficient to orm an efficient mesharrangement. ZigBee and Z-Wave are examples o technologies that usethis kind o topology.

Point-to-point concentrated networks. In this network arrangement,nodes link to a central data concentrator responsible or collecting dataand routing it rom the LAN to the WAN environment, connecting withmiddleware. Te range o coverage is usually restricted, between a hundredyards to a ew miles. Te technology is mature and is currently deployedin several countries or smart metering projects. Physically, the nodesmay be connected to data concentrators using different topologies suchas bus, tree, and star. PLC (power line carrier) and Wi-Fi are examples otechnologies based on this concept.

Examples o bus networks are deployments based on wired networks

(fig. 2–6). Tey are sometimes an interesting option when the nodes areclose together, or example, in office or apartment buildings that groupmeters in special rooms or when gas, water, and electricity meters are closeto each other.

Fig. 2–6. Node arrangements in a bus network environment




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An example o star applications consists o hot-spot structures that areable to provide communication to meters and other devices inside thehome (fig. 2–7). In this specific arrangement, as in the previous topology,

a single modem may be used or both smart meters and in-home devices.Data concentrators and head-end devices play an important role here,because thousands o these devices are necessary or large deployments omillions o meters.

Fig. 2–7. Node arrangements in a star network environment

Among the advantages are the simplicity o use, range o technologiesavailable around the world, and distributed processing arrangements.Disadvantages are extra maintenance points and complex managementdue to the inclusion o intermediary devices such as head-ends and dataconcentrators. Other points to note are the strong dependence o a commonnode, or concentration purposes, as a single point to communicate withmiddleware and the possible reduction o perormance rom use o thiskind o intermediary device.

Virtual point-to-point networks. In this scenario, the telecom inrastructureis invisible to energy utilities because it is usually owned, managed, andmaintained by third parties. In these networks, depending on the physical




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topology selected, a virtual point-to-point environment is establishedbetween middleware and the devices in the field. Examples o technologiesusing this arrangement are SMS- and GPRS-based metering systems

(SMS = short message service and GPRS = general packet radio service)(fig. 2–8). In this case, data traffic between the middleware and devices is via Global System or Mobile (GSM) communications.

Fig. 2–8. A virtual point-to-point arrangement

Another common example uses an in-home metering gateway toprovide a network address translation (NA) service or communicationsbetween the middleware and other HAN devices such as gas meters andin-home displays. It is usually a hybrid topology because the HAN network

may use several types o physical and logical topologies.For short deployments, modem-to-modem dial-up applications are

commonly used. Tis may be an interesting solution or trials that arenot testing technology and or low-scale deployments, although it is notadvised or medium and large smart metering rollouts.

An advantage o this topology is the simplicity o access romthe middleware inrastructure to the devices in the field. One o thedisadvantages is the dependence on a single route or communications.

Tis problem can be mitigated by use o other media-related protocolsor backup purposes with different eatures related to the signal strength,such as a GPRS meter that uses SMS and circuit switched data (CSD) assecondary communication options.




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Broadcast networks. Tis arrangement is similar to the point-to-point concentrated networks, but the main difference is the range ocommunication. In this case, the range o communication is tens o miles

(fig. 2–9). Tis technology is commonly used or signal diffusion ortelevision systems. Examples o implementations in the energy sector arethe ollowing:

• RF controlled systems: Tis is the case in the United Kingdom,where a signal is transmitted to the receiver by the transmitterbroadcasting on BBC 4 long wave (198 kHz) throughoutthe country.

• Ripple controlled systems: Tis is the case in France but also

in other European countries (Germany, Switzerland, Finland,UK, Greece, and others), Arica (unisia, South Arica), andAustralia, where a low-requency signal (175 Hz in France)is injected onto the medium voltage network and broadcastto receivers installed on the meter rame o the subscriber (orintegrated into the customer’s meter).

Fig. 2–9. A broadcast arrangement



Broadcast networks have been historically used by utilities as amethod to provide a signal to change rates in meters or to command loadmanagement switching in the field. Tese networks traditionally used

one-way media, but several technologies are now available with two-waycapability.An advantage o this technology is the reduction o deployment and

maintenance costs, due to the low need or telecom masts to cover a utilityarea. A disadvantage may be low bandwidth provided by technologies thatuse this kind o arrangement.

Architecture layers analysis

Now that we’ve covered the layers o an advanced smart metering systemand their main definitions we can discuss the layers and components inmore detail (fig. 2–10).

Fig. 2–10. Global architectural environment diagram




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System integration. Interoperability with other I systems is a undamentaleature o smart metering systems. It is generally provided via a specificintegration module in middleware (fig. 2–11).Tis module provides

options or uture upgrades and other opportunities or both internalclients and other market participants. A good integration specification isalso important in order to reduce implementation risks and unnecessarycosts, or example by avoiding acquisition o duplicate modules thatprovide unctions already available in the existing corporate I systems othe utility.

Fig. 2–11. Architectural environment diagram—system integration

It is also important to mention that data integration ofen providesadvantages or both systems. Tis can be achieved in several ways such asdata input, monitoring, eedback, and updates.

Challenges and risks. Even with the clear importance o system integration,we can still find serious problems in systems deployed around the world.Tere are many reasons or this, but mainly the problems concernproject specification, implementation, or acquisition o platorms that are

inadequate or the utility needs. Sometimes these inadequate systems areimplemented due to imprecise benchmarking exercises and consequentdeployment o a project that is unable to meet the level o customizationneeded by the utility.




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At this stage, we should reiterate that it is very rare that a smart meteringsystem would be used by more than one utility without some degree ocustomization, including integration. It is important that the utility, the

new integration solution provider, and the provider responsible or theexisting legacy system (under replacement) must participate together inintegration planning. Unortunately, there are still cases where only the newsolution provider and the utility work together to plan the procedures ointegration. Tere are several reasons or this, such as competition amongI solution providers. Tis exposes the utility to integration problems andrisks, such as additional setup costs or an unusable platorm. In addition,more human resources may be needed to enable interoperability betweensystems with extra I tools or even to manually enter the data and transerit rom one I system to another (fig. 2–12).

Fig. 2–12. Example of an integration problem

Integration issues can raise challenges or corporate I departments,especially when improvised I tools and resources are used. Tese tools maybe designed to be temporary answers to specific integration problems, but

they can become a persistent source o problems or utilities, such as breacho data security, bad data synchronization, and inability o data traceabilityand consequent detection o responsibility or integration problems. Evenworse, when integration problems are not totally solved, they may generate




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the need or more and more associated data reconciliation, acquisitiontools, and resources.

Integration advice. It is clear that system integration may be a seriouschallenge to utilities. It must be well planned rom project design toimplementation. Efficient project management and scope definition areessential to deal with this problem.

It is also undamental to implement a uture-proofing integrationmodule in middleware. Tis module should use a proper integrationlanguage standard, and provide a customized data exchange compatiblewith existing and uture systems. Tese systems may be located inside oroutside the corporate utility environment. Te integration module shouldallow enough flexibility to the utility or its representative in order to avoidunnecessary extra costs or uture upgrades.

Another point is the selection o a solution provider or dataintegration. It is advisable that selected providers have extensiveexperience and understanding o data integration. Meter manuacturersare not necessarily solution integrator providers; similarly, integrationproviders are not necessarily metering specialists. A solution or reducingthis risk is to careully define the parties responsible or smart metering

implementation. Specialists in areas such as in-home automation,metering, communications, and integration may need to work togetherin partnership. Te utility itsel must not only speciy but also activelyparticipate in the implementation process. A ull production environmentmust also be set up or tests prior to any upgrade to production mode.

It is also necessary to understand that migration rom the oldmiddleware platorm responsible or managing the old metering systemsto the new one will be a progressive process. While new smart meters

are being installed in the field, the old meters must continue operatingnormally.

Integration problems must be avoided. Emergency procedures mustbe established in order to deal with an eventual integration crisis. Backupresources in terms o systems and people must be available and tested inthe business case to avoid unnecessary risks. Utilities are likely to pay amore expensive price or ailing to mitigate integration risks.

Corporate integration is a challenge, but external aspects may provide

additional challenges to the utility. Tis is mainly due to data ownershipand responsibility. An example is the definition o integration proceduresinvolving important real-time unctions such as transactions involvingfinancial payments. In this case, there are generally at least three parties:the utility, the integration provider, and a bank. Strong traceability and




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acknowledgment controls should be in place, as well as efficient real-timeunctions such as making financial commitments. It is also important todefine the responsibilities o all the integration partners during exceptions,

such as temporary communications problems.For external integrations, utilities should use an integration hub(fig. 2–13). Tis must be done to ensure that the required separation ismade between the external and corporate environment or data security,and it also creates extra traceability between both systems. All the corporateprocedures and necessary I inrastructure or data exchange processesmust be in place, such as security policing and data security devices.

Fig. 2–13. Example of an integration platform

Although uture-proofing is an essential eature o data integrationmodules, it is important to clearly define the scope o initial integration.External and corporate processes must then be mapped in detail. All thismust be part o project conception.

Common targeted systems. Several systems may be targeted or integrationdepending on utility needs, although there are some procedures that are

always recommended. As smart metering systems generally aim to billand provide a better relationship with utility customers, it is necessary tointegrate smart metering systems with the utility CRM and billing systems.o avoid uncontrolled duplication and responsibility, data ownershipmust be well defined, generally in the scope o the system. For example,




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logical data such as rates would be owned by the billing system, and dataon customer identification and behavior would be owned by CRM. Tisdoes not eliminate the need or middleware to use these data, but the

system would manage it. Te middleware in this case would be a simpleclient o these external systems and would have read rights only. It must beready to execute commands and acknowledge orders generated by thesesystems, such as a remote disconnection o energy supply or delivery o acustomized message to a customer.

Smart metering systems regularly provide sophisticated online services,so the related data must be manageable in an online computer environment.A clear service level agreement (SLA) must also be in place to ensure thatsolution providers properly perorm predefined requirements. It is logicalto use a supervisory control and data acquisition (SCADA) platorm tomanage these devices in the field and to manage the related data traffic.Among other responsibilities, these platorms are normally responsibleor online device monitoring, supervising, statistical reports, data trafficproblem detection, human–machine interaces such as synoptic diagrams,event management, and other important sources o eedback to utilities.

Ofen, these platorms are also integrated to workflow systems that areable to automatically select exceptions to be dealt with in the field, as well

as to provide eedback on respective maintenance. Tis integration may beprovided directly via the middleware or the SCADA system, depending onthe implementation strategy. Automatic workflow tools are essential to thesuccess o smart metering implementations due to the volume o eventsand transactions.

Smart metering systems are also designed to improve processes withinthe utility company and reduce losses. However, there is a risk that existingnontechnical losses will not be corrected, or even that new sources o losses

may be created during meter replacement. Bad asset management, orexample with respect to the meter’s location and status problems, normallyincrease this risk. Because o this, it is important to integrate smartmetering systems with geographic inormation system (GIS) platorms inorder to identiy the point o connection to devices. Tey may be updated via eedback during meter replacement, or example, using a handheldunit with a Global Positioning System (GPS) module.

Several other systems may be integrated with smart metering systems

such as web platorms or customers, network management systems likesmart grid platorms, remote maintenance tools or I, data mining,and systems rom providers o additional services such as demand sidemanagement platorms.




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It is clear that middleware plays an important role in integration. Itmust provide all the unctions necessary to achieve its dependent goals via internal applications or by integration with other compatible systems.

Middleware. Te middleware platorm (fig. 2–14) manages smartmetering devices in the field and provides the interace between them andutility applications. In another words, it lies between the devices installedin the field and management applications in the utility. Te middlewareplatorm is responsible or several tasks related to data management suchas data security, event management, scheduling services, and data traffic. Itmanages execution o orders generated by external applications such as abilling or CRM platorms. It basically centralizes and manages any ordersassociated with interaction with devices in the field.

Fig. 2–14. Architectural environment diagram—middleware

Middleware is normally a modular system composed o several differentmanagement modules that interact together. Te number o modules varies according to energy market needs. Tere are many examples omodules and unctional arrangements that make up a middleware system.Depending on the solution provider and on the utility’s needs, differentmodules and unctions need to be implemented using strategies that maybe adopted according to the energy market environment.

Te integration management module (fig. 2–15) is generally linked todiverse agents that interact with different systems using many standards.Tese standards ofen contain detailed specifications or data transer, suchas data exchange ormats and protocols. Different agents are sometimes




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used because o need or specific customization or interacting withdiverse systems. For example, interaction with the billing system may beprovided by “agent 1” using “standard 1,” while the interaction with an

SCADA platorm may use “agent 2” given the need to use another standardor this purpose.

Fig. 2–15. Integration module view

Another common module is in charge of the tasks and event management.It is responsible or managing internal and external middleware tasksaccording to a set o predefined priority rules. Tese tasks may coverdifferent orders such as data collection, device parameterization, and ratesignals. Teir unctions may be integrated in a single module, be built inseparate modules, or be part o other middleware modules, depending onthe implementation strategy.

Let us assume that an order o energy supply disconnection is generated

at the same time as an order or changing a rate. In this case, the middlewaremanages both tasks and ensures that they are treated according to theirmanagement profiles. It also monitors the task execution in its end-to-endprocess. It may then provide acknowledgments, task cancellations, rollbackprocedures, data recovery procedures, and other associated tasks.

Tis module is responsible or managing the events related to itsenvironment and, interacting with the integration module, may provideeedback to systems such as SCADA or revenue protection platorms.

Tese events may include different types o alarms such as saety, tamperdetection, and diagnostics. Tis module also manages the event flag statusand log registers.

A urther module is asset management. It manages the operationalaspects o its associated devices like parameterizations, firmware upgrades,




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and clock synchronization. It also interacts with other corporate platormssuch as GIS and billing in order to obtain the necessary data to managerelated assets in the field and provide respective eedback. An additional

eature o this module is the ability to interact with external maintenanceplatorms. Asset-related diagnostics are analyzed by SCADA managementplatorms. Tis automatic process helps to ensure minimum finance orservice-related losses, because problems are handled as they are detectedin the field.

Data management is another unction usually processed in a separatemodule. It is responsible or managing security, traffic, storage, traceability,and other logically related data unctions. Because o data volumes,middleware generally uses a data warehouse and smart achievement tools.Assuming, or example, that energy data are collected each quarter o anhour or millions o devices, it is necessary or these data to be efficientlystored. Because o data volumes, perormance tools are generally used tocompress data and to archive inactive data in compact data ormats.

Data processing is also an essential module. Tis module may beembedded in middleware or offered as an external platorm. Data volumesmust be analyzed, validated, and corrected i necessary in order to provideefficient eedback to utilities. Tis strategic eedback is undamental

to audits and decisions-making processes. Statistics, reporting, anddata-mining applications are also crucial to efficiently manage these data.

What about the interaction between middleware and its manageddevices? Another module manages this. Te communication module(fig. 2–16) ensures uture-proofing and the capability or hybridcommunication with the middleware. It interacts with different WANcommunication media via agents using different media standards. Teseagents are responsible or translating the middleware orders in a device-

specific ormat. Tanks to this module, middleware communication maybe media-agnostic, thus ully compatible with different WAN technologies.For example, middleware would be able to simultaneously communicatewith devices based on GPRS or Internet broadband WAN in the field.

It is rare, or even maybe unachievable, to implement a smart meteringsystem based on a single communication medium. Tis is mainly due tothe different environments in a utility delivery area and media availability.Tis communication-agnostic capability is a key actor in the success o

smart metering projects.It is hard to orecast the uture o communication technologies. Extra

costs related to the replacement o middleware inrastructure as a resulto media update in the field illustrate that middleware is a significant




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financial investment or the utility. It must be uture-proo and work withthe evolution o communication technologies. Utilities may pay a largeprice i this capability is not provided.

Fig. 2–16. Communications module view

In order to comply with the uture-proofing requirement, middlewaremust be able to be upgraded with new communications agents. Tese

modules may be built according to a predefined standard. It is betterto invest in building these agents than to be orced to invest in a ullmiddleware replacement due to obsolescence.

WAN. Te WAN environment is an important element in the interactionbetween middleware and associated devices. WAN is the first layer ocommunication between middleware and the metering system. It ensures,depending on architectural eatures such as technologies and scope, direct

or indirect communication with the equipment in the field. Differentmedia may be used in this environment such as GPRS, medium voltagePLC, and Internet broadband.

In a hybrid environment, some devices may communicate directly via the WAN, and others indirectly via LAN and/or HAN. Tis layer isgenerally composed o WAN devices such as meters, in-home meteringgateways, and optionally intermediary devices such as data concentratorsand head-ends.

Intermediary devices are needed when the implemented technologynecessitates the use o an extra LAN environment. For example, narrowbandPLC technologies generally use data concentrators, and broadband PLCtechnologies ofen use head-ends to provide links or managed equipmentwith the WAN environment (fig. 2–17).




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Fig. 2–17. Architectural environment diagram—WAN

WAN connections may be installed in our locations (fig. 2–18):

• Built-in WAN devices: In this scenario, the WAN device isembedded in the in-home metering gateway. An in-homegateway is able to provide WAN communication to dependentdevices, such as meters and displays, without using any extra

auxiliary device.

• Data concentrators: For technologies using this structure, theWAN connection is at the data concentrator. Tis equipmentnormally ully manages tasks sent to the dependent devices.It does not work as a simple router but as a data concentrator.It receives tasks, executes them, and provides eedback to themiddleware. It is also responsible or pooling all dependentdevices and manages its network or all levels, such as data trafficand priority controls. When associated with these devices, thein-home metering gateway only provides connection betweenthe HAN and LAN.

• Head-end devices: Similar to data concentrators, but insteado requiring that all transactions are executed by it, a head-enddevice works as a communication router only. It routes datapackages, providing a connection between the WAN and LAN.

• In-home modems: Homes around the world are increasinglyequipped with broadband Internet access. Service providersor cable television and security alarms make use o thisinrastructure to avoid unnecessary costs and complexity;




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similarly, smart metering systems can also use home broadbandsystems. Even with the restrictions that come with these services,they may still provide valuable services to customers in some

energy markets, such as device monitoring, online load profiles,and low-cost customer retention.

Fig. 2–18. WAN connection diagram

LAN. Some communication media require the use o the LANlayer, sometimes because the media are not able to provide directcommunications through the WAN, or because o the cost reductionthanks to the concentration o multiple nodes on a single WAN channel.Examples o technologies using this configuration are PLC and low-powerRF. Data concentrators or head-ends are necessary devices in this layer.Tey manage their associated LAN layer and devices as well as to provideconnectivity to the WAN. Tey may also be responsible or advanceddevice management and supervisory unctions such as data collection androuting, clock synchronization, and local firmware upgrade management.Local area networks are undamental elements or this architecture.

In classical implementations using LAN (fig. 2–19), such as animplementation based on narrowband PLC or electricity meters only,




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the LAN devices are the last point o communication. In this case dataconcentrators centralize all advanced tasks or management o local nodes,although other advanced scenarios are possible.

Fig. 2–19. Architectural environment diagram—LAN

Assuming that gas meters are added to the above scenario, electricitymeters, acting beore as simple connection nodes, would now also becomegateways (fig. 2–20). Tereore, they would be embedded with additionalin-home metering gateway unctionality. Tey would then be able toprovide data management or both electricity and gas meters, and wouldbe managed by data concentrators. Te local intelligence would be sharedbetween both data concentrators and in-home metering gateways.

Tese electricity meters would thereore be responsible or managing

their HAN layer and connecting their devices to the LAN. O course, theywould still be responsible or their own unction o measuring electricity.Te data concentrator would then be the final link with the WAN. In thisexample, data sent by the middleware could be then transerred throughdifferent devices in the WAN, LAN, and HAN to reach its final destination.

With head-ends, or example, in a broadband PLC implementation,the previous example can be managed even more easily. Given that thesehead-end devices generally act as routers in applications or electricitymeters only, the intelligence is generally shared between the middlewareand the meter itsel. When gas meters are added to these scenarios, theelectricity meter becomes an in-home metering gateway, which thencentralizes the local management unctions and associated intelligence. In




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such as low-power RF. Te utility would have to retrofit its existing meterswith in-home metering gateways or replace them with a new model withembedded eatures. Tis could ruin the utility’s business model.

A solution or this could be to install bridge devices (fig. 2–21). Teycould be strategically installed at different points on the customer premisesby the gas utility during the replacement o their gas meters without anyneed or direct intervention on the electricity meters. Tese devices wouldprovide the liaison between the PLC network and the low-power RFnetwork. In this case, they would be PLC-RF devices.

Fig. 2–21. Architecture combining bridge devices and data concentrators

Assuming that they have spare processing capability, the dataconcentrators could also be used to directly manage the gas meters. Terecould be an opportunity to use these bridge devices to connect data

concentrators to other devices in the home, such as customer display unitsand smart plugs. In this case, the data concentrator would be a wide-scalemultihome metering gateway. Tis global gateway unction might beinappropriate or some applications using many online or real-time servicesbut could be appropriate or several others. Tis would normally yield cost




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savings due to the low complexity and cost o these bridge devices. Tiswould also provide or uture-proofing o existing single-uel architectureswithout in-home metering gateways.

Reasons to deploy a LAN infrastructure. Up to this point, you may perceivethis extra LAN layer as extra complexity in architectural terms. It clearlygenerates some complexity or utilities, although other technologies,such as WAN only, also produce complexity. Te main concern is not thetelecom inrastructure, because it will always be needed, but other aspectssuch as the ollowing:

• Should energy utilities deploy a new inrastructure or use the

existing inrastructure offered by telecom providers? • I an energy utility decides to deploy this inrastructure, should

utilities manage it or leave it to telecom experts?

• Should the utility share this inrastructure or use it exclusively?

• I the utility decides to share this new inrastructure with others,what are the associated opportunities?

Tese questions depend on the strategy o the utility and marketarrangements. Smart metering project teams should answer these questionsusing tools such as business cases, benchmarking exercises, and technicalreports. Te ollowing chapters o this book provide some o the key risksand opportunities or smart metering projects and project managementadvice that may assist you and your team.

LAN and the smart grid. In the electricity domain, the smart grid is a keypoint. Smart grids are now being implemented around the world. Teyocus on, among other aspects, the use o grid sensors, switch devices,and automation and optimization o grid operations or energy utilities.Tis subject is discussed in more detail later in the book, but or now, it isimportant to understand that smart grid implementation strongly dependson the choice o technical architecture.

Smart grid devices may benefit rom using a smart meteringinrastructure, providing a more cost-effective deployment. Tedecision to use the LAN layer could be very important, or example, inimplementations o smart metering systems based on low-power RF mesharchitectures. In this case, smart metering and smart grid devices could usethe same inrastructure (fig. 2–22). In terms o total costs or the utilities,the impact o reusing the telecom inrastructure might be significant.




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Fig. 2–22. A smart grid scenario

It seems hard to imagine the implementation o smart grid projects orenergy utilities without the use o LAN networks. Tis is because energynetworks not only have centralized points such as electricity substationsbut also contain a vast number o isolated points on the grid such asboundary energy points, automatic grid switches, transormers, and gridsensors. Te LAN decision may be a key strategic actor or energy utilities.

It is clear that smart metering projects are not isolated rom other utilityor energy market projects. Tey may generate impacts on several other

segments and initiatives. Inrastructure decisions may create additionalcomplexity in regard to deployment and utility management, but alsoopportunities.

Because o the costs associated with changes to the physical architecture,it is important to the utility to carry out robust uture-proofing evaluationso new strategic services and opportunities beore making the decisionsabout the most appropriate architectural design. It is better to choosecorrectly than to regret it in the uture.

In-home metering gateway

Electricity meter evolution and new concepts. Te next layer to examine isthe in-home metering gateway, but beore discussing this gateway, we need




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to understand why it has been recognized as essential. Tis will help usunderstand the concept behind it and its opportunities.

For many years, it was very common in metering systems to use the

electricity meter simply as measurement equipment with a communicationdevice. As a communicating device, it could be remotely set and providedata to an I application. Tis pull scenario may work or some deviceswith simple configurations, but it is unlikely to work or complex scenariosinvolving millions o online devices. Tis also created a dependence onutilities with proprietary solutions and sometimes caused the prematurereplacement o metering technologies.

Te first initiatives to create a more intelligent and manuacturer-independent device were with meters used or measuring industrial andother high-energy-demand customers. Tere were ewer o these meters,but they were more expensive and had more eatures.

Tis market competition generated new requirements and opportunitiesor utilities as a result o competitor initiatives, increased customer needs,and regulatory goals. Energy utility decentralization programs were alsointroduced and, with this, branch independence, such as energy, business,and network branches. Because the branches were ully independententities, different needs per branch also emerged in the energy utilities. Te

utilities needed to provide new services to their customers, because eventhough they were ewer in number, they represented a big share o theirenergy bill. Tis level o consumption per customer helped the utilities toinvest in research and development to build robust meter platorms thatwere able to offer more innovative eatures.

An example o meters built or this market is currently in use by EDFin France to measure customers with contracted power above 250 kVA(fig. 2–23). Tis meter is known as Interace Clientèle Emeraude (ICE).

Tanks to its flexible operating system and to a customized interacedeveloped by EDF, the ICE meter is able to manage rate-based applications.Tis sofware interace is known as PRISME, and thanks to it, these devicesare interoperable and uture-prooed, and application updates can beremotely downloaded to them, such as or rate and display management.Tis concept differentiates the hardware base o the meter rom its unctionsprovided via its ully programmable sofware environment. Also, the meteris able to manage advanced unctions such as:

• Harmonic analysis

• Power quality monitoring

• Load profiling




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• Open protocol

• Advanced measurements and metrology

• Backup management

Fig. 2–23. ICE meter concept in use by EDF in France

Among other eatures o this type o meter, one o the most importantis the capability to ully separate measurement eatures rom thenonmetrological unctions. Tey could then be certified by the governingauthority but allow some reedom or other nonmetrological services to beoffered, giving supplier differentiation in the energy market.

Meters with embedded interoperable operating systems began to look

more like computers. Tis innovative concept spawned two importantdivisions: one between the metrological firmware and the applicationsenvironment, and the second between the meter and the meteringgateway. Te metering gateway became a separate component with ullyseparated unctions but located in a very strategic device, the electricitymeter. I deployed in the residential market, these gateways and theirrespective applications could be used or different purposes such asmanaging appliances, in-home automation, energy efficiency services, and

product rates.Te electricity meter is possibly the most strategic in-home device

available worldwide. Tey are present in every location a utility companyprovides service. Tey are nearly always supplied by alternating current




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(AC) and operate through the direction o the utility company, completelyindependently o customers or end-users. Tis independency allows theutility to temporarily disconnect service due to nonpayment or or other

purposes. Different service providers around the world invest billionsevery year to install equipment in homes, but electricity meters are alwaysthere, and by using the right technology could provide additional servicesin the home.

Understanding the device and its different layers. In-home metering gatewaysare devices that are customized or complex in-home architectures and areable to offer necessary interoperability with other in-home applications.Tis integration eature is a key actor or the longevity o these systems inthe field, and it negates boundary or scope limitations as technology andmarket needs evolve over time.

Te in-home metering gateway is one o the most important devices ina smart metering system and it is generally embedded in or ully connectedto electricity meters. It is responsible or managing the HAN layer andprovides its associated devices with connection to the WAN. In-homemetering gateways may also be the connection between the LAN andHAN environments or some architectures that depend on LAN media,

such as low-power RF.An in-home metering gateway has very similar unctions (fig. 2–24) to

those o middleware, although its unctions are proportional to its level oresponsibility. While middleware may be responsible or millions o devicesinstalled or millions o customers, it is unlikely that an in-home meteringgateway would be responsible or more than tens o devices or a singlecustomer. Tis device is a key component o the in-home environment andensures the uture-proofing o smart metering architectures.

Assuming the existence o a high level o processing and intelligence inmiddleware, why share this in the home? Tere are several reasons: amongthem, speed in managing in-home services such as alarm systems. Anotherencompasses individual customer needs in competitive markets. Customersare naturally different. Tereore, the way one group o consumers reactsto energy-saving programs may be very different rom how others react.Understanding these differences is challenging or utilities, but they are keypoints or customer retention. In addition, who better than the customers

to understand their own needs? Te in-home metering gateway allowsmaximum flexibility o customer-targeted services.

Tis device is embedded in an operating system and the utility is ableto download applications to it (fig. 2–25). Tis capability o managing




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applications is essential or flexibility, integration, independence, anduture-proofing.

Fig. 2–24. Architectural environment diagram—in-home metering gateway

Fig. 2–25. Potential applications for use in an in-home metering gateway

Another point, slightly different rom middleware unctionality, is thecapability to manage real-time services. Saety and health are paramount.Tey cannot wait! Given that all energy-related services require saetyprocedures, sofware applications in the in-home metering gateway mustbe able to count on real-time support o their service tasks. ransactionsmust also be the most user-riendly and intuitive possible; task speed issometimes key in this process.




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As in middleware, data processing plays an important role. Intelligent validation algorithms can be built to diagnose problems and enableautomatic solutions when possible. Remote intervention is also vital. Tis

equipment is basically a computer, and computers in a network must bemanaged remotely by specific maintenance protocols, I tools, and helpdesk specialists. Due to the associated costs, it is essential or utilities tominimize field visits. Remote I maintenance, device sel-diagnosis, anddevice sel-correction are indispensable eatures. Tis is a new era orutility companies, requiring new corporate organization and vision i theywant to survive in competitive energy markets.

Computer applications sometimes crash due to exceptions. In-homemetering gateways are also susceptible to crashes, and every precautionmust be taken to avoid them. I this happens, it can cause several problems,such as extra cost rom site visits and a low level o service quality. Watchdogevents and intelligent correction algorithms must be implemented.Computational crash events must not happen!

Several devices in a home can be integrated with these gateways. Forexample, televisions and local computers may be used as in-home displayunits. Te majority o customers use them daily. Heating and cooling systemscan be controlled using rates and carbon emission targets. Appliances such

as washing machines may also be controlled. Avoidable standby loads canbe reduced or several other devices via automated processes.

It is clear that we need an efficient integration module and interoperability(fig. 2–26) approaches or current and uture devices. For uture devices,agent arrangements are essential, similar to the role middleware plays.Agent arrangements provide customization o in-home devices orintegration. While one agent might provide standards or integration witha television, another could provide this integration with a computer via a

security dongle device.It is important that this device offers secure integration ports or

uture use so that it can be locally upgraded with new modules such ascommunication modems or memory sticks. Tis is needed because othe evolution o technologies and needs. Te communications module(fig. 2–26) is thereore essential because it allows interaction with newtechnologies. It also uses agent arrangements such as those in middleware.While one module provides the communication standards or a Wi-Fi

device, another can provide it to an in-home ZigBee device.




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Fig. 2–26. Example of integration and communication module

ask management, event management, and data management are othermodules. Te volume o in-home transactions is very high as a result othe level o updates and transactions. For example, in-home displays,connected to energy meters via the HAN, are generally updated every ew

seconds. Tese management modules must provide online analysis andreports to the smart metering system.

Asset management has additional unctions in relation to middleware.In the HAN several devices must somehow join the network. Because ocomplexity and risks such as data security, this joining process requiresclose attention. Te module must have appropriate allowance levels orcompatible and permitted devices. Disallowed devices will then be rejected.Local assets must also be locally managed by the in-home metering

gateway, in addition to management already provided by middleware.Given that middleware and the in-home gateway sometimes play similar

roles, it is important to allocate appropriate bounds and responsibilities.Tey must operate in partnership and be complementary, with division oresponsibility or individual tasks. Unnecessary duplication o tasks mustbe avoided.

Installation strategy. An in-home metering gateway may be located in

many places (fig. 2–27), although some are not recommended or someservices a utility would like to offer its clients.




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Fig. 2–27. Potential locations for in-home metering gateway

For example, installing this kind o device in a gas meter is not

recommended because a gas meter is usually powered by its DC battery.Tere are also saety-related risks not yet solved.Another possible location or an in-home metering gateway is inside

the home (fig. 2–28), separate rom the electricity meter but connected toit on the load side. Tis is used in some countries or specific deploymentsrestricted to services that do not involve electricity switching services.Tis restriction is due to problems caused by the reconnection oelectricity supply. For example, in the event o a disconnection generated

by middleware or by the meter itsel, the gateway would be without ACsupply. Even when a battery is used as backup, there is a cost.Based on this, the best installation or this device seems to be embedded

in the electricity meter or connected to it rom the power supply side. Whenembedded, it is important that both metering and gateway unctions areprovided by two ully logical and physical separated devices, even i sharingthe same box. I fitted in the same box, there may be reduction o costs; orexample, there is no need or an extra compartment or the gateway device.It is also important to ensure sae, robust, and antitampering connectionsbetween both devices. A single in-home metering gateway per premise isrecommended (fig. 2–29), even or dual-uel customers. Tis can reducethe risk o local interoperability issues, unnecessary duplicated controls,and the extra costs o using more than one device or the same unction.



Fig. 2–28. In-home metering gateway separated from meters

Fig. 2–29. Example of in-home architecture environment with single in-homemetering gateway




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Even though a good option, an in-home metering gateway may be aproblem or gas suppliers due to its dependence on the electricity meter.An example is an energy supplier owning only the gas meter in a dual-uel

premise. In this case, that supplier becomes dependent on a competitorallowing connection through its electricity meter.Another potential architecture may use more than one metering

gateway provided by different suppliers in a home (fig. 2–30). It is thennecessary to ensure minimal interoperability between both systems. Tisis important, or example, to avoid extra costs with change o supplier, orto provide a single energy display to customers.

echnically speaking, in-home metering gateways are not mandatoryor all smart metering architectures, although the absence o thiscomponent puts at risk the uture-proofing o the system in relation tonew services, opportunities, interoperability, I upgrades, integration, andseveral other aspects. Tus they are highly recommended components o asmart metering system.

Fig. 2–30. In-home architecture environment with multiple in-home metering gateways

HAN. Tis layer (fig. 2–31) comprises the HAN inrastructure and alldevices managed by smart metering systems such as energy meters,other meter types such as water meters and submeters, handheld units,




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sensors, home automation devices, appliances, and customer display units.Interoperability becomes a primary eature, with clear need or integration.

Fig. 2–31. Architectural environment diagram: HAN

A single medium does not necessarily provide the networkinrastructure part o this layer. On the contrary, it tends to be composed oa hybrid combination o media. Tis is due to the difficulty o orecastingcommunication technologies to be used by different market segments thatmay be integrated such as appliances, meters, and in-home automation. Itcan be expected that an in-home metering gateway provides interoperabilityusing different HAN media. Te media devices embedded in it do notneed to be part o its initial deployment. Depending on the businesscase, this capability may be upgraded or specific targeted customers thatthe utility would like to offer a specific group o advanced services. For

example, assuming a HAN using one medium was massively deployedto all utility customers, they could be offered a package o services. Tequantity o services could be then limited by the interoperability thismedium is able to provide. Available compatible devices would definethis boundary. When it becomes necessary to provide a new package oservices to a market segment or niche customers, these targeted devicescould be physically and logically upgraded with a new HAN using a second,different medium. New agents and applications could then be downloaded

to enable interoperability with the new scenario. Tis kind o segmentedoption is sometimes important to business cases and to the customizationo solutions according to individual customer needs.




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Sensors are important devices in this layer, too. Tey can be used inthe home to provide eedback to smart metering systems. Interoperabilityis also essential or these interactions because sensors are normally used

by several systems simultaneously. Tis is important in terms o projectcosts but also to reduce complexity o the system by avoiding unnecessaryduplication in the home. For illustrative purposes, assume temperaturesensors are installed inside the home in order to provide temperatureeedback per home environment or a heating system. Assuming they areinteroperable with the smart metering system, we can avoid duplicatingthese devices i the utility decides to offer an automatic heating controllerservice via its smart metering system. In this case, these sensors couldalso provide the new in-home controller with temperature eedback. Tiscontroller and its respective valve devices could then be managed accordingto environmental heating needs, the best rate options, and defined loaddistribution criterion. Te controller could also interact with the existingcustomer display unit, thus avoiding installation o a new device.

Processes can be ully automated. Clearly, machines are better atperorming repetitive tasks than humans. An example is energy-savingdevices. A smart plug application should have the ability to work based onpredefined profiles. Assuming, or instance, that a customer usually wakes

up every working day at 6:30 a.m. and goes to bed at 10 p.m., the energy-efficiency application running in the in-home metering gateway shouldbe programmable according to this profile. In this case, the standby loadsconnected to these devices could be eliminated, at least or this period.Assuming that these devices have a basic measurement capability, theymay automatically turn off unnecessary standby loads. In the event o anexception, the customer may opt, via simple keypresses on the display unit,to keep these devices in operation or a while. Tis is the kind o process

that requires automation because it is unlikely customers would rememberto disconnect all the unnecessary standby loads every night and reconnectthem every morning.

Te media used in in-home devices should be evaluated orsel-consumption. For example, some chips enable internal energy countersto analyze consumption generated or communications.

Several other in-home devices may also interact in the home, but atthis stage it is important to understand the undamental needs o the HAN

layer to provide required levels o interoperability, speed, and flexibility tosupport the in-home applications and devices.

Handheld units. Providing site visits to customers’ homes is somethingall utilities would like to avoid because o the associated costs and the




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inconvenience to customers. When field maintenance or installations onew smart meter devices are required, it is essential to make site visits withthe lowest possible impact or all the market participants, both customers

and utilities. Several aspects can be optimized such as installation time,data recovery, ault correction, efficient commissioning, meter location,and remote access in the field. All these points may be directly dependenton efficient field service tools such as handheld units.

Handheld units are undamental or field services such as installationand maintenance procedures. Tey can be linked to other systems anddevices, such as GPS systems and inrared readers. Tese interactionsreduce installation time and reduce risks o unnecessary duplicatedcommissioning processes, which may be caused by devices installed inwrong locations. Tese handheld units are important not only or HANdevices but also or interacting with other inrastructure components inother network layers such as data concentrators.

raditionally, these devices communicate using a local metering HAN,based on traditional ports such as flag ports or cabled networks. Mediamay not be a problem since they are adapted to the challenges o thisnew smart metering environment. O course, these ports may have beenbuilt according to different needs, and associated specifications may not

be compatible today or or uture environments in the device lie span.For example, these ports should not add additional risks o data securityand tampering.

I the utility already owns assets on the network, it may be an appropriateoption to adopt the media. An alternative option would be to use the localmetering HAN or this purpose. It can generate several benefits such asreduction o local system complexities and costs related to additionalcommunication ports.

In this scenario, the handheld unit would be simply another devicein the HAN, but with temporary data access rights and different accessauthorization levels. In this case, the handheld unit should always bepresynchronized with the middleware, then import the task, executeit in the field, and resynchronize it with the middleware or eedback.Tis synchronization can also be executed in the field. Tese units maybe equipped or WAN communication, so or both daily operations andor exceptions, the administrator may easily generate new tasks or the

technician to execute in the field.Independent o the utility choice o strategy or media maintenance,

middleware will always manage all the tasks o the smart meteringenvironment in order to ensure synchronization settings in the field andother aspects such as data security and tamper proofing. Problems o




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synchronization between middleware and device settings in the field cancause high-impact risks or smart metering systems and must be avoided.Te same applies or tampering and data security breaches.

Smart meters. Smart meters are the next generation o meters. Even i parto the home intelligence is attributed to the in-home metering gateway,meters in the home will continue to be smart. Tey will continue to beefficient sources o measurement inormation in smart metering systems.Customer display units are optional in some architectures, and smartmeters can also play a role as customer displays. In this case, the displayand design must be adapted to customer needs.

New user-riendly designs are undamental or smart meters to enablecustomer interactivity. Tis interactivity is key to enable new opportunitiesor utilities. O course, the new designs must take into account all thespecifications, tests and certifications regarding saety, metrology, andother criteria. For example, Yello Strom, a wholly owned subsidiary oEnBW Energie Baden-Württemberg AG, which itsel is held in part byEDF Group, has been deploying an innovative and modern smart meter(in terms o design and technology) in Germany (fig. 2–32).

Fig. 2–32. Example of a new smart metering design in use in Germany. (Photo courtesyof Yello Strom.)




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Customer displays. Tis is the layer or the customer relationship(fig. 2–33). Customer displays are not necessarily physical devices ownedby the energy utilities, but can also be incorporated into existing equipment

owned by the customer. Te ultimate goal is to allow customers to interactwith services provided through smart metering systems.

Fig. 2–33. Architectural environment diagram

Customer interaction is essential, so it is important that customers wantto interact with smart meters. It would be even better i this interactionhappened instinctively, voluntarily, and positively. Why not use existingequipment in the home or in the customer’s daily lie? Customers interactdaily with some equipment such as televisions, mobile phones, andcomputers, which can also be used or smart metering applications. Tis

would save money and would also be a guarantee o at least customerinteroperability with the tool acting as a customer display. For example,EDF Energy, a wholly owned subsidiary o the EDF Group, has beendeploying a television-based display on a smart metering trial. Customerscan interact, using their V remote controls, with this user-riendlyapplication to better understand and manage their consumption.

Utilities can also use a customized display unit (fig. 2–34). Tere areseveral opportunities here, although this decision can entail costs, not onlyor technology acquisition but also or other aspects such as marketing,research and development, surveys, and education campaigns. Using anexisting platorm ofen generates costs related to integration, developmento customized applications, marketing campaigns, and the like. Review o aull business case is recommended in order to cover the risks and benefits o




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this decision per utility and per market segment. Te decision or using anexisting or new platorm varies rom utility to utility and market segmentto segment.

Fig. 2–34. Example of a customized display device. (Photo courtesy by GreenEnergy Options.)

When defining the customer display in a smart metering architecture, itis necessary to take into account the opportunities afforded to it. Excludingtechnical, financial, and other aspects, some customer-associated questionsseem to be essential to define a customer display such as:

• How should inormation be displayed to the customers?

Graphically? Synoptically? extually?

• Should audible and textual alarms be provided?

• Should we have special interaces or special customer needs,such as displays or sight-impaired people?

• Should it support financial transactions?

• Is online interaction necessary? I yes, via text chat

or video conerence?

• What are the customization needs? How can consumersconfigure its appearance and behavior to their specific needs?




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• Will this be used as a marketing tool? I yes, by the utility onlyor also by partners?

• Should it be used to manage other devices?

• Should it be used to manage applications?

Te management o requirements, opportunities, costs, and otherelements, as in any project, must be prioritized, including what will not bein scope. Customer displays must support these requirements.

A display may provide eedback on achievement o energy efficiencyand carbon emission goals. Tis is possible due to its ability to providestatistical inormation, alarms, and orecasts in different ormats, such as

monetary and graphical. It may assist customers to better understand theirconsumption, budgets, and goals or rational use o energy.

Displays can also provide in-home automation commands. Tis couldbe important or rate services such as heating control, load shifing, andhome automation.

Tere is a trend toward dual-uel rates, and customer displays areessential to help to understand both uels. Interaction with both meter typescan bring several opportunities. Opportunities or remote management o

devices are becoming more interesting to customers. An example is theability to securely and saely manage loads via web browsers. Tis could beprovided on-demand or via scheduled services. Tis interesting elemento climate control options or smart homes can be provided via a smartmetering system. Tere is clearly a relationship between smart meteringsystems and smart home platorms.

Tere are also some options or in-home metering gateways offeringweb server management. In this case, customized pages can be provided

to give customers local online inormation through ransmission ControlProtocol /Internet Protocol (CP/IP) using a normal browser and a HANdongle device. It may be a good option to integrate this with privatedemand management platorms.

Te number o new services to be offered seems almost unlimitedbecause, with technology evolving, new displays appear every day, andeach display seems to be more appropriate than the last one. A package ohybrid display solutions is recommended or a technical architecture. For

example, Internet-based tools allow more customer interaction. Websitesare sometimes better display tools or complex inormation such asgraphics and analysis. Paper or electronic reports may also be good optionsor targeted customer eedback. Display devices can be a good option oronline inormation such as rate changes, online energy monitoring, and




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in-home controls. Computer-based widget or messenger tools are alsobeginning to provide online interaction with customers. It is common orpeople to use these tools or online inormation about weather orecasting

and public transportation or to communicate with riends. Smart meterscould soon be another service or riendly interaction.Finally, there is no best solution, just the most appropriate package o

display options or the needs o a particular market. Tere are no limits tothese services and opportunities.

Communication TechnologiesA good choice o communication media can help to achieve the goals o

an energy utility, but a bad choice may produce serious consequences orthe project scope, opportunities, and perormance. Tereore, we need todiscuss some o the concepts behind communication technologies.

Media deployment can be regulated by local telecom authorities as wellas by regional and national laws or rules. Te right technology use can vary according to several aspects such as country or regional regulations

and concession agreements o energy utilities. Similar to standards, orexample, the requency o the signal to be used by a narrowband PLC inEurope may be different rom that in the United States. It is important thento study all the applicable laws, standards, rules, regulations, and other legalaspects beore deciding on implementation o any media. Some services,architectures, and technologies are subject to local laws and regulations,and companies must comply. Similarly, patents and intellectual propertyrights must be respected.

Tere is no perect network technology, only the one most adaptable toyour needs in a specific region. A hybrid communications environment isofen advisable (fig. 2–35). Different products may be deployed or differentcustomers. Te scope o targeted services could be different depending oncustomer segment or deployed area.

In the architecture analysis, we mentioned some communication mediaor WAN, LAN, and HAN. Now it is time to discuss some o these media inmore detail. Tere is a great deal o available detailed literature on telecoms,so the idea here is to discuss the subject at a high level only, in order to

help you to understand the eatures o some telecom technologies. Teobjective o this section is not to cover all the existing media that could beused or smart metering applications, but only some o the most common.




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Fig. 2–35. Example of architecture based on hybrid media. (Illustration courtesyof Iskraemeco.)

Power line carrier (PLC) technologies

PLC technology uses the electricity grid to transmit data. It superimposesa high-requency signal on the existing electrical signal o 50 or 60 Hz. Tissuperimposed signal is transmitted in kilohertz or megahertz. It can bepropagated in an electrical cable and decoded by receivers. All receivers inthe targeted electrical cable can then read the signal.




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Tere are open and private international standards available orthis purpose. As standards may directly influence the success oimplementations, the choice o the most appropriate requires a serious

technical analysis by energy utilities.Tis technology can be used by utility applications but can also be usedin the home, although the signal requency may be necessarily differentdepending on the standard used and market rules. International standardsare available or the use o technology in both environments. PLC technologycan transmit data over low- and medium-voltage energy networks.

Electrical grids were built to deliver energy, not telecom signals. It is anunnatural environment or data transmission. Tere are several actors totake into account such as the number o spurs to supply homes, networkimpedances, grid reconfiguration events, and intererence caused byelectrical appliances. Tese electricity grid eatures may cause problemsor data transmission such as attenuation, noise, and eedback. In thecustomer’s premises the environment may also cause similar problems. Asin any other telecom technology, measures need to be taken to minimizedata transmission problems. Manuacturers provide research anddevelopment resources to optimize the perormance o their technologies;perormance can thereore vary rom constructor to constructor. Because

o this, as with all other telecom media, an efficient technical evaluationprocess is necessary. Laboratory and field tests are essential to evaluatethese technologies and to ensure achievement o utility objectives.

Narrowband PLC. Tere are many versions o this technology on themarket, using different modulations. Bandwidth varies according to themodulation technology used and implementation strategy. It varies rom aew hundred bits per second (bps), such as versions using requency shif

keying (FSK) modulation, up to hundreds o kilobits per second (kbps)in new versions using orthogonal requency division multiplex (OFDM)modulation. As bandwidth and speed o communication may notnecessarily be dependent, these narrowband technologies are sometimesadequate or the needs o an energy utility in terms o the services theywould like to offer their customers.

Perormance can also be optimized by using different I techniquessuch as data compression. Using this method, some narrowband PLC

systems are able to significantly improve perormance o data transmission.Tese technologies require data concentrators (fig. 2–36) that concentratethe tasks in their LAN. Tey provide the connection rom the WANenvironment to their managed devices. Tere may be WAN costs with




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data concentrators. Even i narrowband PLC uses the electricity cableinrastructure, data must still be transmitted rom data concentrators tomiddleware (fig. 2–37). Tis may involve costs i, or example, mobile

technology is used, although there are other options.

Fig. 2–36. A meter using a PLC narrowband and data concentrator. (Photo by Ludo,courtesy of Actaris.)

It is common in some utilities to have an existing communication linkat their substations. In this case, this inrastructure may be used to reduceassociated costs. Another option is the use o PLC technology over themedium-voltage network. In this case, special coupler devices are used

to provide a physical connection to the network. Tey may be capacitiveor inductive. In this case, as high-voltage substations are sometimes usedas a corporate telecom inrastructure, the deployment may be executedwithout any permanent costs or data transmission in the WAN.

Data concentrators are essentially pooling mechanisms. Based on this,data concentrators generally always initiate the communication process,although some constructors have implemented mechanisms to enablepush communication or diverse tasks such as alarm management andautomatic detection o devices during installation processes.

Data concentrators are ofen installed in each distribution transormer,but in low-voltage interconnected grids, with a cluster o a ewtransormers, one data concentrator may be able to cover more than onetransormer. Te quantity o nodes covered varies depending on actors




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such as grid topology, distance between nodes, quantity o supply spursper transormer, technology modulation, and implementation method.It may vary rom several units to hundreds o nodes. Data concentrators

are generally installed in substations, directly connected to distributiontransormers, although due to the inconvenience or utilities during theinstallation process, some manuacturers have also developed solutionsthat enable installation o data concentrators at the meter level.

Fig. 2–37. Narrowband PLC architecture. (Illustration courtesy of Iskraemeco.)




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Generally, the electricity meter (see fig. 2–36) itsel acts as a repeaterin the grid. However, sometimes, due to problems such as impedance anddistance, it is common to use additional repeaters in the grid.

In terms o interoperability, gas meters are generally managed at thein-home metering gateway level, via the use o other HAN media. Anotheroption is the use o bridge devices, as discussed previously.

Among the advantages o using this technology are the use o the existingelectricity cable inrastructure o electricity utilities and signal propagationalong the entire grid once the technology is deployed, excluding exceptions,o course. Te first point is interesting in terms o cost o installation andmaintenance. Te grid is already an asset maintained and managed by theelectricity company. In this case, the impact on telecom management maynot be as big as when deploying other technologies such as low-powerRF. In relation to signal propagation, the grid generates an opportunity toshare the smart metering inrastructure with other projects such as smartgrids. Energy network devices in the uture may be deployed and managedby data concentrators. Other advantages are less dependence o theenergy utility on telecom providers and signal penetration independent obuilding construction.

As with any other technology, narrowband PLC may introduce some

disadvantages to energy utilities, such as the inability to offer differentiatedservices in competitive markets, the need to maintain telecominrastructure, and problems o data traffic interruption due to intererence.It is also extremely important to identiy problems o intererence withexisting devices in the home. For example, test results have demonstratedthat some types o in-home PLC technologies potentially interere with theway light touch sensors work. A touch sensor is a device that turns on andoff and changes lighting intensity with a touch on its surace. When both

technologies share the same environment, this kind o light sensor may notbehave well. Among other anomalies, PLC may change the intensity andstatus o the light successively without any human intervention.

Broadband PLC. Tis technology differs rom narrowband mainly withrespect to its bandwidth and signal. While narrowband technologies usehundreds o kilohertz to propagate their signals on the grid, broadbandtechnologies generate signals in megahertz. Bandwidth may ofen vary

rom tens o megabytes to hundreds o megabytes. As with narrowbandPLC, broadband PLC can be used inside and outside the home underspecific standards (fig. 2–38).




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Fig. 2–38. Example of product using broadband PLC to communicate online withmiddleware through Internet modems of customers. To achieve this, a broadbandPLC modem is embedded in the electricity meter, and another is connected tothe Internet modem of the customer. (Illustration courtesy of Yello Strom.)

Bandwidth can provide an opportunity to electricity utilities to offerInternet services to their customers directly or via a partnership. Someenergy utilities around the world offer related services such as voice overInternet Protocol (VoIP) and video offerings. Tis bandwidth also opensup opportunities or new customer relationship services such as videoconerencing and data download via the in-home metering gateway.

Since the start o broadband Internet deployments around the world,the “last mile” has always been a problem or telecom providers. Tereare many issues involving the physical deployment o this medium.Rural deployment o broadband Internet is one challenge or telecomcompanies that broadband PLC may be able to answer; however, sufficientcable inrastructure may not be installed in customer premises. Anotherchallenge is that wireless modems do not always provide coverage toall parts o the home. Tis is inconvenient or clients and may affect themarket share o telecom providers.

Based on these problems, telecom companies around the world have

studied the benefits o broadband PLC to provide their last mile. Tismay result in beneficial partnerships between energy utilities and telecomcompanies with common interests. Utilities benefit i they do not have thetelecom expertise and would like a minimum WAN bandwidth availability




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Depending on the distance between customers, sometimes the costo data concentrator devices can be shared among nodes. For example,assume that a data concentrator costs 200 dollars and nodes cost 20

dollars, so in an arrangement o 100 nodes, assuming the need or onlydata concentrator and the meters, the cost per node would be 22 dollars.In another scenario involving only 10 meters in the coverage area o thedata concentrator, this cost would reach 40 dollars. Because o this, somesolution providers developed low-concentration data concentrators. Teyprovide the same range o radio coverage but less processing capabilityand unctionality. Teir cost is usually lower than a conventional dataconcentrator and may be an interesting solution in rural arrangements orareas where the distance between customers is outside o acceptable levelso nodes concentration.

Another procedure generally used to improve the concentration levelo these solutions is to optimize the position o data concentrators andantennas. Sometimes, however, this is not possible due to, or example,use o nonutility premises, urban building topology, the absence o placesto strategically install it in a targeted premise, and extra costs or rental oplaces to install these devices. Given the difference between theoretical planand actual practice, these costs should be included in the business model.

We can reduce dependence on data concentrators with mesh topology,which provides additional hops in the RF network. Tese hops may useseveral nodes to communicate, depending on the technology used. Meshtopology expands the coverage o the network, although the addition oextra hops may imply a reduction in RF network perormance, dependingon how they are organized.

Tese networks provide several opportunities. As with narrowbandPLC, there is the possibility o uture integration with other projects such as

smart grids. Tis may be an interesting uture-proofing eature or utilities.Another opportunity may be to use mesh RF media or both last mile andHAN environments. Tis can eliminate extra complexity and costs o extralocal media in the in-home metering gateway and its HAN. In addition,problems related to intererence and the building environment may affectperormance. As in all implementations, technical and financial studiesmust be done case by case.

Mobile

A variety o mobile technologies are available around the world,such as time division multiple access (DMA), code division multipleaccess (CDMA), and several others, although the most common or




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smart metering implementations is currently GSM. For this reason, thisdiscussion ocuses on GSM. O course, any other mobile technology couldbe used in your deployment using similar principles. Te choice o the

most appropriate one depends on evaluation processes in the energy utility.Tis solution provides WAN directly to in-home metering gateways(fig. 2–39). elecom providers ofen own the entire telecom inrastructure.Tese networks offer opportunities or mass rollouts, but the mediumalso presents an interesting opportunity or segmented rollouts becauseit does not depend on new concentrated inrastructures. Tis may bewhy energy utility pilot projects around the world try this technologyfirst to understand the behavior o their customers in different areasand segments.

Fig. 2–39. A product using a GPRS metering gateway. (Illustration courtesy of PRI.)

Mobile operators usually offer VPN (virtual private network)arrangements or energy utilities. In this case, a secure link is establishedbetween the utility’s middleware and its gateway devices in the field.

Because the telecom inrastructure already exists, devices can beinstalled more quickly in the field. Coverage may still be an issue in somecountries due to the fixed location o devices in a customer’s premises. I

your mobile phone does not work in a specific location in your home, youcan ofen move to another room or better reception. Tis is not possible ormeters; once installed, they usually stay in the same location. Contractualarrangements ensuring coverage and the use o external antennas are someo the procedures used to mitigate reception problems.




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Another point is the dependence on a single mobile operator.Multioperator subscriber identity module (SIM) cards may help to mitigatethis problem. Roaming services can also be another interesting solution.

Tese arrangements may depend on telecom market rules and need to bestudied case by case.Communications technology lie span is another disadvantage. As

with any technology, it can become outdated. Tis kind o issue can alsobe reduced by well designed contracts with telecom providers and goodevaluation processes. Tis risk may also provide an opportunity to energyutilities. When a new mobile technology is deployed, telecom providersmay offer contractual arrangements to enable the use o old technology ora defined period at cheaper costs.

Ofen when these technologies become mature, the inrastructure hasalready been partially or ully paid or. Because o this, lower prices arebeing offered by telecom providers to encourage continued use o thesetechnologies. Another cost reduction actor is concentration o the majorityo tasks in off-peak periods o data traffic. Agreements setting ees relatedto data volume instead o per node may also contribute to savings. akinginto account the level o savings offered and that there is no requirementto maintain these networks, this could provide a cost-effective solution to

energy utilities or mass rollouts.Tis technology can also be used or WAN connectivity to data

concentrators. It is important then to evaluate this technology as anisolated medium as well as a WAN medium or other concentration-basedtechnologies.

As observed, there are several points to be considered in a business caseanalysis. Because technologies are not easily compared, we need to defineefficient technical and financial comparison criteria when perorming

business studies or evaluations.

Internet broadband piggybacking technologies

As with mobile technologies, this technology can be used not onlyto connect isolated points directly via WAN but also to provide WANconnectivity to data concentrators. Although some technologies such asmobile and broadband are able to offer broadband Internet, the objective

o this section is to consider other technologies that may offer the samecapability, such as cable Internet, xDSL (digital subscriber lines), satellite,and others. Tere may be additional opportunities to consider withthese technologies.




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An interesting point, as briefly discussed in other sections o thisbook, is the possibility o using the customer’s Internet to provide WANconnectivity to in-home metering gateways. Although we have previously

discussed disadvantages with the use o this technology and restrictiono services it may cause, it is still an interesting option to deploy in somecases. Tere is a trend or other solution providers in nonenergy marketsto use it.

A key point o Internet piggybacking technologies used by customersis customer choice. Tey should not just agree on the use o the Internetbut also realize there is added value rom the services to be offered to themthrough this medium. In addition to legal agreements, this seems to be themost efficient way to ensure that this medium is always available or energyutilities to use.

It is also important to set boundary responsibilities around the use oshared media, such as data security and aults. For example, a customermay blame energy utilities or aults caused by their equipment or breacheso data security. Responsibilities have to be clearly defined.

Sometimes, ironically, energy-efficiency advice may become a problemor utilities. For example, ollowing utility energy-efficiency advice, in orderto avoid standby load, some customers commonly disconnect their in-home

Internet modem at night and when away rom home. Tis procedure mayproduce telecom service interruptions to smart metering systems. Actionis required to mitigate this risk, such as efficient data recovery processes,education campaigns, and legal agreements to be able to offer some onlineservices based on clear rules and predefined limitations.

As people become dependent on the Internet, more Internet servicesare being deployed around the world. In some countries, the majorityo households are already covered by broadband services. Clearly, there

is a trend that most premises around the world will soon be covered bysome source o broadband Internet service. Tis trend and the absence opiggyback communications or customer services make this medium veryattractive despite its disadvantages.

Another opportunity is to share the use o wireless inrastructureprovided by these modems, such as Wi-Fi. Tis may yield a low-costsolution to utilities, as modern modems usually offer this capability. Ocourse, there is a setting dependence, because the gateway must know the

security access key (e.g., wired equivalent privacy, or WEP) used by thecustomer. Another alternative to nonwireless modems, or to avoid thissetting dependence altogether, is to opt or dongle bridge devices. Tese aregenerally connected to the existing Ethernet port o Internet modems. By




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using the Ethernet port, connectivity is provided to the in-home meteringgateway using technologies such as in-home broadband PLC. Despite thedisadvantages caused by physical constraints, another alternative is to

use Ethernet networks to connect the in-home metering gateway to theInternet modem.

Public switched telephone network (PSTN)

PSN is possibly the most mature method o communication ormetering systems. Utilities first began using this medium to providetelemetry services to enable communication to their private meters inenergy networks and or industrial customers.

Implementation o PSN requires modems or similar devicesconnected to or embedded in the electricity meter. Modems are installedin field devices, and a group o modems is installed by the utility. Dataare transmitted rom the field to the utility via modem-to-modemconnections. Sometimes, the existing line o the customer is used. Teutility then establishes one or several time windows, or example, twicea day, to collect meter data. Te advantage is that the PSN is using thecustomer telephone line or “ree.”

Disadvantages could arise, such as the number o modems to be installedin a patch to enable requent data collection, requent communicationsinterruption, and the absence o online communications. In an event o analarm, or example, communication problems may be an issue.

Another orm o connection is the use o Internet dial-up processes ordata transer. Te disadvantage is that this connection is susceptible to allthe known constraints o dial-up connectivity.

Because o these issues, a common view is to regard this PSN as

obsolete, but this is not true. For example, remember that xDSL technologyuses this medium to provide Internet broadband to customers. Severalother technologies may be used or the same purpose.

Despite the strong penetration o mobile networks around the world,PSN still provides service to energy utilities and generates interest bytelecom regulation authorities in several countries around the world.Some authorities are conducting studies into uture international in-homeinteroperability. One o these studies looks at the use o these media by

nontelecom companies in a ully competitive environment. Tis couldbe an opportunity or smart metering deployments and several otherin-home services.




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Another common use o PSN is coverage exceptions. Tanks tostrong penetration, PSN lines are almost everywhere and can efficientlycover remote exceptions. Tis could apply to data concentrators and

isolated nodes.

Licensed RF

RF broadcast technology is ofen able to broadcast a signal or severalmiles. Tere are various radio technologies available around the worldwith different telecom eatures. One example is use o very high requency(VHF) technology. Te first versions were implemented as one-waytechnologies and offered only a ew bps o bandwidth. New versions offer

two-way capability and up to tens o kbps o bandwidth.A clear advantage o broadcast technologies in relation to others

is coverage. A ew telecom masts may cover an entire energy utilityarea. Another is that this medium may act as a WAN, LAN, and HAN.Depending on the targeted services, it could enable in-home serviceswithout additional HAN devices. It also provides an opportunity orsharing telecom inrastructure with other networks such as smart grids orsmart metering or water companies.

Potentially covering the HAN, RF broadcast technology is ofenunlikely to be compatible with devices such as gas meters and in-homeappliances. Tis incompatibility is due to several actors, such as trendsin home automation, the high transmission power o this technology, andhigh consumption o these devices. Another aspect is the size o antennasor these devices and sometimes the devices themselves. Tey may beincompatible with existing applications and built-in designs and requirethe use o separate gateways.

Tis produces a centralization o processing o all devices in middlewaremanagement. Tis may be compatible with some services but may be anissue or online and real-time local services.

Despite the benefits in a private network, such as legal reedomrom intererence due to temporary band concession and opportunitiesafforded by sharing the inrastructure or competitive energy marketenvironments among different energy suppliers, there are disadvantageswith the management o telecom inrastructure. Because this management

is more complex than the management o low-power RF systems andrequires more specialized people to manage it, these kinds o deploymentsare normally executed in turnkey arrangements that generally includenetwork maintenance.




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Emergent RF telecom media

elecom providers are actively studying RF telecom media to upgradeexisting mobile and broadband Internet media. Several telecom authorities

are providing more consultations, test authorizations, and concessions ortelecom providers to use these technologies.

Tese technologies may offer an opportunity or in-home meteringgateways to be used as in-home Internet hotspots or emtocells, which aresmall cellular base stations used by telecom providers to extend the useo Internet indoors. Tese potential applications may enable partnershipsbetween telecom companies and utilities that have common pointso interest.

wo examples o emerging media are worldwide interoperability ormicrowave access (WiMax) and LE (long-term evolution). Tese mediacould potentially be used in smart metering deployments.

In-home RF media

Some o the media options discussed here may also be used or in-homeapplications (e.g., HAN), although there are others that are ofen used

and designed or this purpose. Examples o these are Z-Wave, ZigBee,Bluetooth, Wi-Fi, and several other private and open technologies.Our objective here is not to compare these technologies. Tis is a task

or utilities in their evaluation processes. Instead, we describe some othe issues and advice or deployment o RF technologies in an in-homeenvironment.

Te home can be a difficult environment or RF media. Because o this,it is important to ensure that the selected medium is able to communicatein the majority o an energy utility’s installation environments.

It is important that signals be able to penetrate not only the materialsinside the home but also those used in its construction. o accomplishthis, it may be necessary to propagate the signal rom inside to outsidethe home and vice versa, depending on the location o the meter. Tus,an electricity meter could be located inside the home and the gas meteroutside. Different RF technologies can provide different penetration levels,depending on the materials they ace in the home. Examples o thesematerials are metal objects, structures and rames, concrete walls, double-

glazed windows, and roofing shingles.Sometimes meters are installed in metal-ramed cabinets, and special

solutions need to be considered in order to avoid the signal-blocking effecto a Faraday cage. Another point to consider is intererence. Several pieces




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o equipment in the home can cause intererence to some RF technologies,such as microwave ovens and broadband Internet wireless modems.Coexistence is also a undamental consideration, not just to avoid being

affected by other networks but also to avoid intererence with other devicesin the home.Tere are several solutions to mitigate these problems, such as the use o

low-noise amplifiers, mesh capability, and automatic changes o requencychannel. Te chosen solution must be implemented according to regulatoryrules and standards. Legal aspects may also apply to some media in someregions, as well as regulatory rules i there is communication rom onehome to other.

Examples o criteria to take into account or in-home media evaluationprocesses are:

• Plug-and-play installation capability

• Presence o international standards

• Methods to deal with intererence, such as multichannelcapability and related automatic channel change

• Effective speed o transmission

• ransmission range

• Data security mechanisms

• Future-proofing

• Robustness

• Cost

• Maturity

• Use in smart metering implementations

• Use in other potential industries such as home automationor appliances

• Support or remote firmware upgrades

• Media-related energy consumption (especially important or

non-AC supplied devices such as gas meters)

• Interoperability capability and uture-proofing

• Data management methods




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Te majority o these criteria apply in the evaluation processes orany communication media. Many other telecom and nontelecom aspectsmust also be taken into account when looking or the most appropriate

in-home communications technology or your environment, such asdata transmission, saety, laboratory tests, legal, I, and several others.A utility company must consider all these actors in order to perorm anaccurate evaluation.

Tere are opportunities or individual media. For example, Bluetooth iscurrently used or the majority o mobile phones. Tese devices can act aslocal displays with no additional communications costs, and they are useddaily by consumers.

Several other challenges need to be addressed or in-home and otherutility environments and must be reviewed in the selection process. Tisbook is not meant to be a comprehensive reerence on the subject ocommunication technologies, as there is much literature already available.Instead, it presents some o the challenges o this subject and stresses theimportance o the media evaluation process as essential to the success oyour smart metering project.

Data Security In traditional metering systems, meters were completely decentralized

devices or measurement management. ogether with billing systems, theywere the most important element or billing customers. In smart meteringsystems, they are simply elements o a more global system. As with anyelement o the system, they are important and carry out their tasks, but theull achievements come rom the system as a whole.

Focusing on the system leads us to look at enhancing the systemglobally, not just some isolated elements. For example, in the scenario withisolated meters, i someone wanted to interere with billing, the easiestway was to try to tamper with the meter installed in a specific premise.I someone with bad intentions wanted to cause a local blackout, the bestpoint o action would be a substation. In this new scenario, it is different.Device management is ully centralized, and it enables new risks o illicitsystem intererence. Changing data could interere with several meter

registers at the same time. Broadcast commands generated by a hackercould also cause a blackout. Tis is a new world where metering is nowpart o an interconnected, computer-based environment, and this requiresmore attention and compatible action. Tis does not mean automation




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processes should not happen, but that they must be properly implemented.Te financial world is an example. Billions o dollars circulate around theworld in short periods even i treaties exist. Data security and validation

policing must be implemented to ensure that transactions are done withthe lowest possible risk. Similarly or metering systems, taking into accountthe different risks, proper actions must be taken.

Associated with data security, data validation is also key. asks shouldbe controlled by intelligent algorithms, and incoherent tasks must bepromptly treated, blocked i necessary, and properly investigated.

We do not intend to teach data security and validation here, as there ismuch other detailed literature available, but to draw your attention to thissubject and the required attention it needs in this new metering environment.

It is necessary that metering specialists and I specialists, whosometimes worked in completely isolation, now work together to achievethe common objectives o an energy utility’s smart metering projects. Itis also important that the company is ully engaged as a whole with thisprocess because data security is not just related to data managementtasks. For example, confidentiality is an important element. Managingconfidentiality is impossible without a total company strategy andcooperation. Tis problem not only affects the utility, but it also may affect

several participants in the energy market, because these are public services.Other participants such as local legal authorities should also be involvedactively to help to mitigate these risks.

Data security analysis

One o the first actions in any data security analysis should be todefine the scope o the project. For example, what types o transactions

is the system able to deal with, and what types will be excluded? Are theyfinancial, confidential, or saety related? A well-defined scope is always agood first step in any project.

We should identiy the threats in the environment we are dealing with.By taking the metering environment in isolation, rather than consideringall the in-home and other integrations, it is easy to identiy several threats.Among others, we could identiy these:

• Hacker attacks in the several layers o the system such as I

systems, WAN, LAN, HAN, and in-home metering gatewayand devices

• Cloned devices—a real risk or smart meters i we take thetelecom environment as an analogy




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• Confidentiality breach

• Unauthorized data access

• Reverse engineering • Illicit applications and firmware interventions

• Mistakes made by untrained people or illicit tasks executedby ill-intentioned users

• Stolen devices

Several other threats may be also identified (fig. 2–40). Tese are just

a ew examples. Utilities must carry out efficient analysis with smartmetering system providers and other participants in the energy market.

Fig. 2–40. High-level threats diagram

Once threats are identified, their associated risk must be properlymapped. Risk analysis and logs must be created and maintained withrequent reviews and updates. Treats and risks are not static, so reviewsand updates are essential to an efficient process o evaluation. Tese risksmust be analyzed, taking into account different levels such as saety,finance, and company reputation.

Corporate data security and confidentiality policies should be reviewedin order to comply with this new environment. Data security actions




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must be taken, such as VPN implementations, dynamic data encryption,intelligent algorithms or action to be taken in real time during attackevents such as port lockouts, requency hopping, efficient authentication,

logs and alarms, virus detections and corrections, reverse-engineeringshields, resilience to noise and intererence sources, illicit device removaldetection, illicit parameters, firmware and application update attempts,data integrity management, real-time monitoring modes, efficientmaintenance protocols and ports, backup and data recovery management,clock synchronization, access management, and refinement o firewallrules. In summary, all the traditional I procedures apply (fig. 2–41).

Related training and education campaigns are equally essential or thesuccess o projects. Tis should be applicable not only or users but also orall who directly or indirectly interact with these systems.

Fig. 2–41. A corporate IT environment. (Courtesy of Iskraemeco.)




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Products should also be properly evaluated. For example, computingpower and media technology should be appropriate to the required levelso data security. Encryption procedures must also be investigated, because

solution providers may claim to implement encryption but in reality, they just encode data (data confidentiality is not ensured).Another point is traceability, which is essential or identiying and

mitigating detected problems. It is hard to audit and investigate what isnot traceable. ransactions should execute only once, should be device-,task-, and utility-specific, and they should have a period o validity. Ininternational metering standards, different parameters are used, togetherwith proper security keys as part o dynamic encryption procedures. It isimportant to ensure that even i an encryption process is breached or onetransaction, it will not be reproduced in other tasks.

Te company crisis management procedure should be updated, takinginto account this new environment. Utilities should address potentialexceptions with prompt, predefined, and efficient action.

Action must not only be taken in the corporate environment and inmiddleware, but it also should be taken in all the different layers betweenmiddleware and devices. For example, the in-home metering gatewaysplay an important role in data security and saety. Lockout actions may

result rom real-time tasks in these devices related to, or example, attackdetection. Meters and other devices also have roles to play. For example,i abnormal behavior o consecutive switching orders is detected, theorder must not execute and the anomaly should be immediately reported.I caused by external orders, a port lockout could be activated during apredefined time window, without waiting or any external commands. Teend-to-end environment must be reliable, secure, and sae.

Tese are just a ew examples o data security. Utilities, their partners,

and other participants will also be involved to ensure that a secure andreliable environment or smart metering systems exists.

Finally, data security must be implemented in an end-to-end VPN basis,not just to the point o the metering gateway. It must be simple, efficient,well understood, flexible, and proven, but also innovative. It is thus a clearchallenge to be properly investigated and efficiently achieved.

Data and task validation

aking into account the number o transactions smart metering systemsgenerate in short time intervals, data integrity must be ensured. Intelligent validation algorithms are used to detect and correct irregularities andanomalies. Even with traditional data security procedures in place, several




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exceptions may still occur, such as errors and illicit behavior by users.Proper filters should be in place to help mitigate these potential problems.

Using the same example as above, consecutive orders o connection and

reconnection o electricity supply in a short time period are tasks worthyo analysis and investigation in the middleware side, too. I the numbero orders and elapsed time between them does not all within definedparameters, they should not even be sent to the devices. Registers couldalso be analyzed, and inconsistencies should be identified and treated.Tese consecutive orders may be the result, or example, o a hacker attackor a meter ault.

An in-home metering gateway could be a source o intelligent validation.It should diagnose abnormal events and data and take real-time action.Te devices themselves should also provide some validation. Validation isan end-to-end process.

Inconsistent data should not be managed together with real data in thesystem. Management tools must be dedicated to this analysis. For example,diagnostics must be managed by workflow tools to ensure that correctiveactions are in place. For illustrative purposes, imagine a customer wasincorrectly billed due to a ault occurring exactly at the end o billing cycle,and the bill was generated uncorrected. Several actions must take place. Te

old bill must be cancelled, a new bill promptly generated, and algorithmcorrections must be made so that this problem will not be repeated.

With the advance o artificial intelligence, several universities andresearch centers are currently working on sel-learning data validationalgorithms. Because these validations usually vary rom environment toenvironment, research and development partnerships with these groupsare essential to developing efficient tools. Although these tools can helpavoid the eventual consequences and risks o bad validation procedures,

even with sel-learning algorithms, nothing can substitute or humanability. Human resources must be engaged in this process. I validationsystems should only be auxiliary tools or people, not the opposite. Properstaffing o a smart metering project is paramount to its success. Te peopleinvolved must be trained, motivated, and ully engaged with the projectand company objectives.

Data ProcessingMore important than the entire smart metering inrastructure are

the benefits utilities can obtain rom the best data processing. Because




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o this, it is common or these projects to accumulate vast amounts odata. Tis sometimes requires several I resources such as applications,inrastructure, and people to manage data storage. However, large amounts

o accumulated data do not necessarily produce benefits to the utility.Isolated, data have no significance! Data have to be processed andtransormed into useul inormation or energy utilities. Applying thisinormation within the knowledge base allows the organization andproessionals to become wise. Tere are several concepts and challengesbehind the gradual process o transorming data into wisdom. Te intentionhere is not to explain all these concepts, as there is much available literatureon it, but simply to help you realize the importance o data processing andalso that stored data must coner benefits to the company, not just occupyspace and generate costs.

Tus, beore discussing data processing, the utility should initially workon requirements and specifications related to data generation and dataacquisition strategies. Being obsessed with data is sometimes a challengeto overcome in strategy-building processes.

Simple questions may help you to deal with these strategy definitionssuch as: What? Why? Who? Where? When? How? How long? How much?Based on this, there are several related questions such as:

• What kind o data are we talking about?

• Why do the data need to be generated by the devices?

• Who owns the data?

• Who needs the data?

• Is all the added-value data being generated by the devices?

• What financial and nonfinancial values may be associatedwith the data?

• Must all the generated data be stored? I yes, where?Locally at the devices? In a proper database?

• For how long do the data need to be stored in primary media?

• Does these data need to be archived and or how long?

• When will the data be needed?

• Are there any legal requirements associated with the data?




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• What kind o inormation can be obtained rom the data nowand in the short, medium, and long term?

• What are the criteria o success related to data processing?

• Does the utility have enough internal knowledge and resourcesto process the data properly?

• What are the risks o processing or not processing these data?

• What is the cost o data processing?

Once the data generation and acquisition strategies are defined, it isnecessary or the utility to process the data. A common mistake in data

processing is thinking that nonspecialized people can do this work or thatmanual tools and instinctive analysis can generate expected results. Teseattitudes must be overcome. Tere are several types o proessionals whocan contribute to this analysis, such as statisticians, inormation managers,and inormation architects. Tey must participate in the smart meteringteam in order to help define tools and methodologies that will help energyutilities achieve their goals.

A clear example o value-added data is load profile. I correctly

processed, the load profile should help utilities to understand theircustomers’ behavior. Tis may help customers to achieve better results inseveral areas such as rational use o energy, coordination o their budgetwith their consumption, efficient use o microgeneration methods, and rateadvice. Based on this, a visionary utility is also able to create competitivedifferentiation like new customized products and rates, efficient use othe different generation sources, achievement o regulatory goals such assupply quality and carbon emission reduction, reduction o nontechnical

losses, process optimization, and reduction o operational costs.In addition to individual analysis, there are also several methods o

comparison related to different measurement curves. Based on the useo intelligent algorithms, customers with similar behavior may be easilygrouped together. Individual profiles may also be compared to grouptrends and to standard profiles or different purposes. Logical onlineprocessing may also be used. Te opportunities around this subject arealmost unlimited.

In order to better understand these opportunities, let us define anenvironment to study. Assume an electricity utility installs a meterconnected to a distribution transormer. Its data are properly acquired,along with every other customer’s meter, every 10 minutes. Among severalother purposes, online data analysis is generated or nontechnical loss




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evaluation. Suppose that every 10 minutes the system provides an onlineanalysis between the energy supplied by this transormer and the sum oall related meters. Now we can build some scenarios.

In a first scenario, we assume that during the current month, theenergy discrepancy obtained by the online analysis is on average 2%.Assuming this value is optimal or this circuit, i in the next interval thecollected data show the discrepancy is now 5%, the system could easilygenerate several automatic investigations. Let us assume one would bethe automatic comparison o all individual load profiles to a set o rulessuch as abnormal seasonal consumption reduction and comparison tocustomized standard curves. Assume that these filters show five customerswith a high probability o being the cause o this anomaly. I one o thesecustomers produced a meter ault or tamper alarm, this would immediatelygenerate a field inspection work flow order or this customer and onlinemonitoring up to the correction o the anomaly in the field. Assuming aparallel scenario where the meter reported a ault alarm and generated afield investigation. Tis scenario could also be analyzed at other levels likeenergy balancing on individual medium voltage circuits, substations, andtotal energy balance.

Assume that it had generated an inspection and the discrepancy

disappeared during the field investigation. I the tamper alarm suddenlyreappeared hours afer the technician lef the premises, it would deserveadditional investigation or the treatment o a more complex situation. Wemay be dealing with an illegal measurement system manipulation.

Another interesting eature o data processing is the ability to cross-reerence sources o data. For example, online load profiles comparedwith online weather measurements and orecasts could result in anefficient tool o energy management. Tis would be important or demand

orecasts and avoiding energy blackouts, with preventive actions such asload curtailment commands, network reconfiguration, rate-related loadshifing instructions, and distributed energy storage management. Withmass deployment o smart metering and smart grid projects, it would beeasy to imagine energy predictions and actions when online inormationwas analyzed, such as energy requests in a spot market.

Data processing is also a continuous learning process. Analysiseedback is important to improve the accuracy o the rules and related

data management tools. An intelligence center should be dedicated to thisin different areas o the business such as marketing, field services, energygeneration, business, and retail.

echnology advance is a reality and should be recognized by energyutilities. Utilities must invest in efficient I systems and inrastructure or




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data processing purposes. I teams must also actively participate in thisprocess. Data processing is an art, and as with any art, it has its associatedprice. Efficient financial analysis is needed to measure the impact o

investments and the potential benefits they can generate.Tis is only one part o a vast theme; connected aspects not covered here,such as business intelligence management and data quality management,should also be considered.

Interoperability Challenges

Interoperability is one o the biggest challenges to be aced by smartmetering projects. It can help projects to succeed, but it can also causethem to crash. We have briefly discussed this subject in previous sectionso this book, but what is interoperability?

Definitions o interoperability depend on the source. Tese sourcesinclude international experts who participate in projects and initiativesabout interoperability, supported by different market participants suchas governments, research entities, universities, solution providers,

and utilities. Some specifically deal with smart metering and in-homechallenges, such as Te Application Home Initiative (AHI) in the UnitedKingdom. Its mission is accelerating the adoption o connected homes. Itaims to acilitate change and create alliances to ensure that smart homesare ully connected and will deliver beneficial services. AHI definesinteroperability as “the ability o two or more entities to communicateand cooperate despite differences in the implementation language, theexecution environment, and/or the model abstraction.”

AHI’s definition o interoperability demonstrates how big thischallenge may be. o better understand it, the reader should understandwhat may not be defined as interoperability:

• Coexistence: the ability o two parties to exist together. In asmart metering environment, this could mean the ability o twoor more devices, applications, or communication media to sharethe same environment. However, these differing entities may beunable to communicate to one another. Further, the operationo each device should in no way disturb the others.

• Interconnectivity: the ability o two different entities to connectone with the other. In this case, these different entities are morethan to be able to coexist; they are able to communicate. However,this does not yet provide the required level o interoperability.




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It does not provide other eatures needed to achieve this level,such as the ability o cooperation between these different entitiesand all its related opportunities. Synergies may not necessarily

be created by generating extra opportunities. Interconnectivityis then just one challenge to be aced to achieve interoperability.

Using these concepts, we can say, or example, that ZigBee and Wi-Fidevices are able to coexist on the same requency o 2.4 GHz, but thesedevices are not able to directly communicate with each other. Similarly,two different Wi-Fi devices may be interconnected through a Wi-Fi routerproviding Internet access to their different applications. However, thesedifferent applications are not necessarily interoperable.

As with data processing, interoperability requires ull investigation andanalysis. An efficient interoperability strategy must be defined by energyutilities in order to set the scope o the project. It would not be logicalto enable interoperability to every possible entity without analyzing thebenefits to be obtained. Interoperability also has a cost, which must beanalyzed in relation to the benefits and opportunities it can generate toenergy utilities.

How can interoperability be related to smart metering systems? Tere

are many different ways. For example, in the home environment, one o thekey devices that aim to provide interoperability is the in-home meteringgateway. Tis gateway could interconnect different systems, includingdevices that can use different media, and translate different languages,ormats, and concepts to orm a common basis. It also aims to providecooperation between different services and resources. Tis would enablesynergies to be created by generating extra opportunities or both systems via the amplification o their related scope. It should also be a uture-

prooed device, to help the utility benefit rom the existing inrastructureby providing potential uture integration with other systems such aswater meters.

Middleware plays its role, too. It provides interoperability between thesmart metering systems and other system platorms inside the energyutility’s corporate environment and with its utility partners. It equallyprovides interoperability between this system and its users.

Customer displays also play a undamental role. Tese provideinteroperability between smart metering systems and their customers.Tis interoperability is vital or customer satisaction.

Finally, nowadays, much equipment is installed in homes withoutany interaction. For example, televisions do not talk to mobile phones,which do not talk to Internet modems. Tis offers an opportunity to




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in-home metering gateways to act as an integration platorm or severalin-home applications.

echnical aspects o interoperability have already been discussed in

the technical architecture section o this chapter concerning middleware,in-home metering gateways, integration environments, and customerdisplays. Te other key elements that should be considered are customersand users.

Human interoperability challenges

Interoperability is a concept related to technology, is it not? I so,why are we talking about systems interacting with users and customers?

In act, interoperability between customers and technology is vital orthese systems.

Let’s reflect a little more on this. Maybe an energy utility sends youseveral letters each year. Do you even read them? I you do read them, doyou read them in detail or just superficially? I you read them ully, do youtruly understand them? Some o this correspondence could be or billingo the services they provide you. Do you ully understand this entire bill indetail? Do you really understand how to benefit rom rates and services?

Do you really know all your available services? Maybe you do—but doyou think all the customers do? Maybe the utility is not interacting wellwith its customers. Maybe interoperability between their systems andtheir customers has ailed. Tis may be due to several actors such as thecommunication language used, the difficulties o interoperating with energymeters, lack o customized services, and not listening to customer needs.

It is common to use the term “mandate.” Tis term is sometimes notconducive to enabling interoperability between the customers and their

utilities and systems. Sometimes utilities mandate services, solutions,and interaces to be used by customers without really listening to theirneeds. Listening is not just asking or eedback through surveys, butunderstanding it and finding the most appropriate way o implementingeedback i easible.

Te concept o interoperability itsel also applies to relationshipsbetween technologies and people. Tese two different entities shouldeffectively communicate and cooperate despite their different language,

environment, and conceptual models.Can a system really be interoperable among all these different entities

such as people, devices, and applications? Yes, i it has been developed orthis purpose and the customers’ needs and wants have been taken intoaccount. First, customers must eel part o these systems rom the start.




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It is important that customers eel comortable enough to voluntarily usethe systems. Tey must eel they are owners o technology, not slaves toit. Tey must also realize the benefits they can receive. Selling services is

a challenge, as it is difficult to achieve a level where customers realize the value o intangible products such as energy. Te challenge is even biggeror public services, which may sometimes be seen as a ree entitlement.

In order or utilities to readily interact, customers must be understoodnot as a group but as individuals. O course, these individual needs may ormgroups o common services, but even so, there should be some personaldesign. Simple customization can sometimes make a big difference, suchas simply changing the screen background and other personal settings inpersonal computers.

It is then important to consider other aspects such as culture, ethnics,customs, social aspects, and belies. Tis kind o interoperability isobtained in gradual steps. Some customers, or example, have an aversionto technology. Ofen, the first reaction to innovation is rejection. It is upto the energy utility to persuade their customers. From an interoperabilitypoint o view, it seems reasonable to use existing, mature, and recognizedmedia to act as interactive points between customers and technology, suchas televisions used as customer displays. raining and education campaigns

are essential or customers to understand this new environment.Services should also be offered in stages. oo many new services and too

much innovation at the same time will only serve to create more problemsor customers and utilities.

Users should also be considered, taking into account their differences,and interactions should be tailored to the audience. For example, as smartmetering projects are essentially ormed o multidisciplinary teams,interaction with engineers should be different rom interaction with

marketing people. Despite differences, they must also cooperate or thebenefit o the utility.

Documenting processes also helps this challenge. Specific guides,norms, standards, and specifications must exist to ensure that the systemmeets all predefined requirements. Documentation is generally the basis oprocurement, but may also apply to other procedures such as training and validation o product development.

Norms, standards, and specifications

Standards and norms are usually guidance documents published byorganizations such as the IEC (International Electrotechnical Commission),European Committee or Electrotechnical Standardization (CENELEC), or




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American National Standards Institute (ANSI). Specifications are generallysets o requirements based on standards and norms used or differentpurposes, such as procurement processes and product development.

Standards and norms are very important or defining interoperabilityin smart metering systems. Tey are necessary in several different layerssuch as communication and system integration. Tey are also necessary toensure interoperability between different entities in a market. An exampleis their applicability to industry data flows used by energy suppliers tomanage change o suppliers by customers in competitive markets.

Standards and norms may cover many documents, defining severaldifferent points such as rules, protocols, and data exchange ormats. Teyare used to ensure a common understanding or the different partiesinvolved in a system and to solve disputes between them. Tey may involvediverse areas such as system communication, operational rameworks, andlegal arrangements.

In general, standards may be classified as public or private. Tere areseveral aspects related to this choice. Open encryption algorithms, orexample, may be seen as more advantageous because they provide reedomto utilities. On the other hand, they can create risks o breach o I security,depending on the way they are written, their availability, and management.

Choosing between public and private standards is difficult or utilities anddependant on their specific needs, thereore utilities must ully understandthese standards. It is also recommended that these standards ensurethat utilities are neutral about some components o the system, such ascommunication and meters.

In terms o smart metering interoperability, important aspects to beconsidered in specifications are protocols and data exchange ormats. Inrelation to protocols, new development can create extra risks to the project,

such as bugs and incompatibilities. As utilities are ofen risk-adversecompanies, it seems sensible to adopt available, recognized, and matureoptions. An example o existing protocols is CP/IP, which is a maturecommunication technology or computer-based applications and has beenadapted to the metering environment. Although mature, it is important thatuture-prooed developments are included in the platorm such as InternetProtocol version 6 (Ipv6). Tis is adequate to provide interoperability in allthe different communication layers o smart metering systems. It is also a

compatible approach or the different types o devices to be used, such assmart meters, smart grid devices, appliances, and gateways.

In relation to data exchange ormats, there are several current ormatsavailable in different standards in the market. Sometimes they are notully adequate or utility needs, although they can always be adapted via




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standards review or related specifications. It is important that competitorsin the market work together in order to build benefits or the energyindustry as a whole.

Several interoperability-related norms and standards are available inthe market, and new ones are being or will be written. It is up to the utilityto provide a ull evaluation exercise in order to obtain the best benefits interms o interoperability and other aspects or their systems.

Conclusion

Tis chapter covers technical and nontechnical concepts relating tosmart metering systems, such as technical architecture, communicationmedia, data security, data processing, and interoperability challenges.

Te objective was to provide some background on smart meteringsystems, their components, main challenges, risks, benefits, and some othe opportunities.

Te importance o data security or smart metering systems nowseems clear, based on the threats and risks present in its environments.

You probably also realize that the choice o communication media andarchitectural aspects sometimes defines the limits o the projects as wellas its related uture-proofing capability and connected opportunities. Dataprocessing was presented as a key aspect, but beore defining its strategy,it is necessary to provide analysis in order to cover several criteria such ascosts, benefits, risks, and opportunities. An efficient data processing systemcan provide several benefits to energy utilities, as good data are importantto these systems. You probably now understand how a well-definedinteroperability strategy can enable you to maximize or ampliy the scopeo your projects. It also helps utilities to obtain extra opportunities thatmight not be possible with smart metering systems as an isolated platorm,but can be achieved when associated with others. Integration was alsodiscussed as an essential element and how important customers andusers are or interoperability, due to their requent interaction with smartmetering systems.

You should now realize how analysis o these individual smart meteringcomponents is crucial to the total success o these systems.

Te next chapter provides even more details of the opportunitiessmart metering systems present. We discuss some o the innovativeproducts being provided and discover why more and more utilities aroundthe world are investing in mass rollouts o these systems.



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3International Analysis

We can now analyze the reasons why smart metering systems arebeing massively deployed around the world. Te chapter starts with

a general view on these deployments internationally as well as the mainchallenges. We then discuss different rates and payment methods. Finally,we explore the importance o these implementations or the differentparticipants in the energy sector.

Motivation or deployments has already been briefly analyzed inthe previous chapters, but this chapter provides much more detail. Te

main reasons or energy distributors and retailers to develop smartmetering systems are to improve management o energy networks,enable differentiation in competitive market environments, and provideinnovative services such as in-home automation.

For distributors specifically, in addition to enabling smart grid projects,smart metering systems themselves can provide energy networks withseveral benefits such as energy quality. Tey can also be sources o energymanagement through load switch devices and services such as load

limiting and curtailment.For retailers, new products can attract new customers and ensure the

loyalty o existing customers. Examples are new rates, payment structures,energy-efficiency services, and meteorological updates via customerdisplay units.

Other market participants, such as customers and energy marketregulators, can profit rom implementations. Te environment is ofena beneficiary o implementations through the rational use o energy.

Tis may create a reduction o the total energy supplied by the utilityand consequent reduction o CO

2 emissions. Tese levels generally vary

according to the energy matrix o the country and period o consumption.




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Despite these common motivations, there are many actors that affecta company’s decision to massively implement these platorms. It maydepend on the environment where implementations are located and

specific conditions. For some, the main incentive can be revenue protectionprograms aiming at reduction o levels o nontechnical losses. For others,these rollouts are essential or the utility to survive in an increasinglycompetitive environment.

Challenges must be aced or these companies to obtain the benefits osmart metering. Risks must be managed. Because o the international trendo massive installations, it may be difficult to find qualified proessionals toinstall these devices in the field. It could be equally difficult to efficientlycontrol the quality o device production in the manuacturing chain. Tishappens when there is a huge increase in the production line and shorttime scales required by massive deployments. It may be necessary toengage new proessionals to work in some industrial sites who do not haveenough time to achieve required levels o skills and proessional maturityto properly deal with these unctions. Risks are similarly created due toimpulsive action taken by manuacturers to win bids. Tese initiativescan result in a lack o quality in electronic components used in meteringdevices caused by the need or reduced production costs in order to remain

profitable or at least to reduce related losses. Energy companies must beattentive to these risks.

In order to start our analysis, an international sampling o these projectsollows. Tis study is based on my personal international experience duringbenchmarking exercises in several countries by chairing sessions, givingpresentations, participating in collaboration efforts and workgroups,and visiting utilities, manuacturers, solution providers, and standardsinstitutes around the world.

International Benchmarking ExerciseBenchmarking exercises are essential to energy utilities to speciy their

smart metering projects. We are able to learn rom eedback provided byother implementations. During this process, investigations o achievementmay help companies to estimate opportunities, but error analysis is equally

important. For example, this could alert enterprises to unknown problemsup to this stage. Understanding these points is an important way to avoidwasting money and time.



Chapter 3 International Analysis

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Te benefits to be achieved seem clear, but it is still necessary to dispelother misconceptions. Tere are still some organizations and managerswho believe that the costs o these exercises are a waste o money,

resources, and time. O course, benchmarking exercises requently requiretravel to meet with key people and to analyze the targeted systems andproducts working in the field. ravel budgets can be abused, though, andas with any other budget, they must be properly monitored and the resultsefficiently measured.

It is crucial to note that benchmarking exercises reflect ongoingscenarios. Tey should be updated ofen in order to identiy changes and toconfirm predefined assumptions. In addition, other interesting tools mayassist in providing cost efficiencies. For example, Energy UK (ormerlycalled the Energy Retail Association), which is composed o the mainenergy suppliers in the UK, maintains an interesting benchmarking toolon its website (http://www.energy-uk.org.uk/policy/smart-meters.html).Tis web page was created and is regularly updated under the auspices othe Supplier Requirements or Smart Metering (SRSM) Project.

Te Energy UK benchmarking exercises provide inormation on spotmarket situations, behavior, decisions, and trends o projects. Utilities andother market participants continuously update these exercises. Tey are

important sources o knowledge.Based on its importance, the ollowing sections provide an international

view on smart metering implementations, arranged here by continent. Teobjective is to offer you a brie overview on deployments around the world.It will be presented at a high level, although or your own exercises, you willneed detail at the lowest possible level, or example, precise inormationabout specific areas o a utility. Tis is necessary because companies maydiffer even in the same political or geographical environment. Te same

could be true or internal areas.

Africa

Africa is a very interesting place for benchmarking. Exploring itsdifferent countries and regions, we can find utilities using everything rombasic electromechanical meters, manually managed, to very impressivesmart metering platorms. Tere are offline vending stations or prepayment

and sophisticated payment modes that use SMS (short message service)based on scratch card vouchers or credit purchase purposes.

Among other initiatives to develop smart metering platorms aroundthe world, some important ones are currently happening in South Aricaand are mainly ocused on the electricity market. Tis country sometimes




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acts as a kind o incubator or the Arican continent in terms o emergingtechnologies. Successul metering systems and payment methods naturallyspread to other countries on this continent once they have matured in

the South Arican market. Tis does not mean that the other countriesdo not develop innovative technologies. Many interesting creative andhigh-tech initiatives are being seen all over Arica. However, even with theull independence o the other countries and their recognized skills ordeveloping new solutions, South Arica is the ocus o this benchmarkingexercise because their technology at this time represents the smart meteringtrends in this continent.

Updating existing platforms. South Arica, apart rom being a ascinatingand beautiul country with regard to their people, culture, nature, andinternationally renowned figures such as Nelson Mandela, is also a placewith different social environments. Tese situations differ drastically rompoor townships to rich regions in Cape own.

Everything indicates that South Arica has the highest number o electrickeypad prepayment meters in the world. Other countries in Arica, likeSudan, Senegal, Mozambique, and several others, have similarly adoptedthe same technology. As discussed in previous chapters, these meters

can be installed either inside or outside customer premises, in specialcabinets or on top o posts. For external meters, consumers are providedwith a customer display unit to update their energy credit and monitortheir consumption.

Tey also have very sophisticated and mature payment platorms orkeypad prepayment meters. Tese systems were installed or differentutilities and are probably the best implementation or this purpose in theworld. Tese technologies use codes typed on the meter keypads in order

to transmit commands to it. Tis code is locally called a token. Whenpresented with this special token, these meters can also behave as creditmeters. Meters are thus already able to switch rom credit to debit mode,and vice versa. Teir systems are also built to support this unctionality.For these reasons and many others, they seem to be the natural precursorsto smart metering systems.

Massive marketing campaigns have helped to establish prepaymentmeters as a standard in South Arica, and they are used by people o

different social levels, regions, and belies. Endorsements by well-knownpersonalities were used during these campaigns with the objective odisseminating the use o prepayment technology in the energy market, andgood results seem to have been achieved.




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Tus, they give utilities the reedom to use interoperable solutions rommany meter manuacturers and solution providers in their installed base.

Based on this, these systems are likely to be converted to smart

metering platorms in the uture. Te main difference is that the tokens,at this stage, are automatically sent to the meters via communicationmedia instead o being transmitted by typing codes on keypads. Utilitiesare also able to retrieve data rom the meters without the need o sendingtechnicians to the field with radio-equipped or PLC-based handheldunits. Tese systems need only to be provided with a two-way wide areanetwork (WAN) technology to have some new eatures implemented andadapted to this new environment. Te SS/IEC standards also meet smartmetering requirements.

In practical terms, there is much work to be done because o somespecific issues related to smart metering implementations. However,part o the way has already been paved. For example, SS organizationshave been working or a while in this direction because local utilities,manuacturers, solution providers, and other SS members understoodboth the international trend as well as other market needs such asgeneration capability issues.

Several existing eatures o these standards can add value to smart

metering systems. An example is the use o tokens or credit managementand respective processing algorithms such as token validation in themeter and respective logs. During this validation process, the code may beaccepted, corrected, or rejected by the meter. For example, the code maybe rejected due to an incorrect ormat, its validity is expired or it is alreadyused, it is the incorrect meter, or the meter is programmed with an incorrectrate type and rate. Tis advanced processing on the meter side may addmany advantages to the systems. In the smart metering world, tokens may

continue to be given to customers in order to be used as a contingencyoption. Tey could be adopted in the event o a communication ailure. Inthis case, the customer could type the code into the meter or in a customerdisplay unit. I the code was already sent by the middleware, it wouldbe rejected; otherwise, the meter would process it. Customers wouldthen be provided with proper eedback and credit updates even duringcommunication ailures.

As communication ailures are sometimes unpredictable events,

contingency action is important to ensure customer satisaction. In orderto illustrate this need, imagine an extreme scenario where customers are onthe limit o their emergency credit. Tis credit is enough only to continue tosupply their premises with energy or 5 minutes beore sel-disconnection,and the customer purchases extra energy credit at the last moment. At this




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stage, a communication ailure can happen between the middleware andthe meters. I its duration is more than 5 minutes, the customer can bedisconnected because o this lack o credit update. Tis could be a high risk

or utilities. I at the moment o credit purchase customers were providedwith a token and instructed on its use, this situation could be avoided or atleast minimized by the customers themselves by typing their codes on themeter’s keypad.

A physical keypad is a necessity. ouch-screen interaces or even simplearrangements o just two buttons—the option present in the majority ometers—could be used. Tus, this unctionality can be implemented orutilities at very low cost.

Reasons to deploy smart metering systems in South Africa and proposed

solutions. Natural evolution o the existing platorms and standards arenot the only reason that encourages South Arica and others countriesin Arica toward smart metering. Recently, the country has experienceda number o blackout events. Te main problem appears to be limitedgeneration capability, insufficient to meet the increasing demand. Newinvestments in generation have been made, but these initiatives generallytake a long time to be ully implemented. Smart metering systems

can be a potential solution to deal with this problem in the short andmedium terms.

Among other drivers, improvements in energy efficiency management,reduction o energy consumption especially during peak times, loadcurtailment and limitation management, improvements in the qualityo electricity supply, demand-side management, demand response rates,and grid management are the main reasons or massively deploying smartmetering systems in this market. Recent announcements demonstrate that

authorities are deciding to move in this direction.New laws and market rules have been enacted requiring energy-

efficiency action in South Arica to deal with a potential energy crisis.Tese initiatives strongly recommend the use o smart metering platormsthat can optimize energy consumption, or example, through heatingcontrollers and pumps or swimming pools (fig. 3–2).

Many market participants demonstrate a desire to manage appliances inhomes. Customers, or example, would be able to choose what appliance to

turn on and off during different periods o the day. Tis can be configuredaccording to sets o automatic rules that define priorities among thedifferent devices. Tey can be related to rates and other products. Switchingevents can also be manually executed i desired by the customers.




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Fig. 3–2. Relays for demand-side management deployed in South Africa. (Photo byDorthe Gaardbo-Pedersen; courtesy of Develco.)

Advisory systems can be implemented to assist customers with energy-efficient actions. For example, with the agreement o customers and subjectto legal requirements, these platorms could inorm customers when they

were using more electricity than other customers with similar habits andpremises. Action can then be proposed according to intelligent analysis otheir load profiles.

Te main energy utilities in the South Arican market have alreadyannounced their intention o installing millions o smart meters in thenext ew years. Everything indicates short- and medium-term trends omassive deployments in the country, at least in the electricity market. Tiswill soon be disseminated to other countries on the continent.

North and South America

North America, together with Europe, orms part o the largestdeployment o smart metering systems in the world. Tis is not the onlypart o the continent where these rollouts have been taking place. Atlower scale levels, but with similar importance, these systems have alsobeen installed in Central and South America. In general, smart metering

systems in North America are being developed or multiuels. Tey aredriven by different actors depending on specific needs.

United States and Canada. Te United States and Canada are usuallyrecognized or their high-tech initiatives and strong action on research and




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concentrators should be shared per node. For this reason, RF technologieshave been widely used in the United States and PLC in Europe. O course,there are some exceptions; or example, there are utilities using narrowband

and broadband PLC in the United States as part o their smart meteringstrategy, and vice versa or Europe in terms o RF technologies.In 2005 the U.S. Congress passed the Energy Policy Act, which put in

place ederal action to enable demand response management services.Strategies toward smart metering systems seem to be the logical way togo, although it is up to individual states to implement them. In 2009,U.S. President Barack Obama, via the American Reinvestment RecoveryAct, announced a public investment o $3.4 billion in smart grids (totalprivate–public investment estimated at $9.3 billion). States and energyutilities have been making different decisions related to technologies andimplementation strategies.

Some utilities are investing in very sophisticated demand responserates, others are more ocused on the load management, and others aremaking good use o the opportunity to implement broadband technologiesthat enable the ability to provide innovative services such as broadbandInternet access and voice over Internet Protocol (VoIP) to their customers.

Another common objective is the reduction o operational costs and

reduction in the price o energy purchased by utilities rom generators. Forexample, costs are generally higher during peak times, and reduction opeak load can contribute to reduction o the total energy price.

In terms o supplying remote areas under extreme conditions, Alaskais a good example. Alaska is the largest state by area o the United States.Although there are difficulties in supplying energy to this region, dueto its large geographical area and extreme cold weather conditions,smart metering systems have been successully deployed by the Alaska

Village Electric Cooperative (AVEC). AVEC, according to its website,is a non-profit electric utility, owned by the people. It serves 53 villagesthroughout interior and western Alaska. In act, the AVEC service area isthe largest o any electric cooperative in the world. Tis is a clear exampleo how robust a smart metering solution can be and how large the range obenefits can be.

In Canada, a directive requires the installation o advanced meters. InOntario, authorities are actively participating in the design o the smart

metering platorms and deployment strategies. Beyond these similaritieswith the United States, Canada has been using time-o-use prices toencourage changes in customer behavior. Tese prices take into accountwhen and how much electricity has been consumed by customers. Tus,




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prices vary during the day, based on production costs. Tey are equallydependent on seasons and specific periods when energy is consumed.Different rate periods have been defined such as “on-peak” when energy

is more expensive; “mid-peak,” less expensive than peak; and “off-peak,”the most cost effective o all. Tis scheme can be very advantageousor consumers.

Tere are good opportunities or utilities to reconcile the cost oenergy and its price. Energy is purchased by utilities at several differentprices during the day. Basic rates are unlikely to provide the requiredreconciliation between loss and beneficial margins to utilities, dependingon the time energy is used. On average, this margin tends to be positive,but schemes need to be optimal or these companies and their customers.Government is also engaged with renewable energy action, and demandresponse management is compatible with this policy.

Central and South America. Central and South America have similarneeds as North America, yet sometimes associated with social andeconomic problems. Despite natural beauty, culture, diverse people, andseveral other positive aspects o different environments in parts o thecontinent, some utilities suffer with high levels o nontechnical losses, late

payment, and nonrecoverable payments.Energy thef is a challenge aced by many utilities in South America.

Revenue protection action has been taken to try to counteract this, butit is mostly ineffective because o other aspects such as technical ratherthan social activity, difficulty in targeting the losses, and a lack o necessarytechnology. Tere is also a trend in some countries o moving meters tooutside a house or reconfiguration o network topologies, among otheractions, to acilitate management o revenue protection.

Te same challenges apply to debt management. Prepayment metershave been installed in several utilities in these regions to try to mitigatethese problems. Some actions are successul, although the cost to maintainthese technologies is sometimes prohibitive.

Smart metering systems can provide effective solutions to deal withthese problems, thanks to the level o technology and business intelligencetools. Advanced pay as you go (PAYG) unctions can help customers tomeet their budgeting needs (see the section on PAYG in this chapter or

more inormation). Energy displays encourage customers to gain a betterunderstanding o their related demand. Benchmarking exercises tend toencourage a reduction o consumption when these devices are installed.




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aking into account the levels o associated financial loss, these rolloutscan pay or themselves. It is also important that these projects are part oa social strategy to ensure that the envisaged results are obtained in all

targeted areas. Although the benefits in terms o business cases are high,projects should not be restricted to revenue protection action. Customersatisaction must always be the priority. Other benefits should also beconsidered or all o the market participants, such as energy efficiency andcarbon reduction initiatives.

Many smart metering project initiatives can be ound or customerswith high energy demands (fig. 3–3). Tey use online intelligent systemsand algorithms to deal with revenue protection and add value or customerssuch as energy quality improvements, rate advice, new web-based displays,and demand-side management. Among other initiatives, Light, one o themain electricity utilities in Brazil, has built a smart metering monitoringcenter that can manage hundreds o thousands o its customers online.

Fig. 3–3. A metering gateway device in Brazil for customers with high energy demand.(Photo courtesy of CAS Tecnologia.)

Tere are some massive implementations in these regions involvingremote management o metering systems or residential customers.

However, they do not necessarily bring together all the opportunities andunctionalities that smart metering platorms can offer due to differentaspects such as lack o specific rules and regulations (under preparation)or some countries. Regarding joint smart grid programs, there is still a longway to go or many o the participants o this market, particularly in the




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residential market. Tere are a ew notable exceptions, or example, Lightand Cemig, together the largest energy utilities in Brazil, are responsibleor providing energy or more than 10 million customers in Rio de Janeiro

and Minas Gerais. In September 2010, they started one o the largest andcomprehensive R&D smart grid programs in the world. In general, though,many challenges and limitations must still be overcome to enable thesedeployments. Specific regulation and directives are equally necessary to setthe terms or these potential rollouts. Because o this, most activity in thisarea is still in the initial phases and implemented in low-volume programssuch as pilots, research and development, metrological evaluation, andregulatory analysis. For example, the regulatory authority in Brazil, AgênciaNacional de Energia Eletrica (ANEEL), has organized a public orum onthe installation o smart meters (potentially 56 million customers) and hasissued a resolution that contains the minimum unctional requirementsor smart meters. Tis is an important step toward smart metering systems.

Asia

Tis continent contains the largest population o all and thus thebiggest potential volume opportunities or smart metering deployments.

Tis region is equally recognized or high-productivity capability in thetechnology sector. Millions o devices are produced every month in thisregion. Asia is also amous or research and development o high-complexitytechnologies.

Due to their capacity and the low cost o metering devices in produc-tion, a large share o the smart meters to be installed around the worldwill probably come rom this market. During my visit to this continent,I saw promising eatures o productivity, technology, and research

and development.Despite this promising environment, the extent o nontechnical losses,

in some Asian countries and regions, is the highest in the world. Levelso tamper sophistication are also impressive. Tere are similar problemsin debt management. In order to address debt, utilities have used revenueprotection and prepayment schemes, but still suffer problems similar tothose in South America.

Losses are one potential driver or smart metering deployments

in these regions but not the only one. Energy efficiency is another. Teregion is already one o the most advanced in this aspect in the world; orexample, the advances made in Japan are impressive. Many advances havetaken place in this area o the world over several years. Devices such asrerigerators, air conditioners, and washing machines contain intelligence




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or optimizing sel-energy management and being interoperable withother devices and systems in the home. Similar work has been developingor light bulbs and water heating.

Smart metering systems give an opportunity or these platorms to beintegrated with the metering environment. Tey can provide intelligentrates and other products to be offered to consumers by energy utilities and/or their partners.

Energy consumption management is another reason or imple-mentation o smart meters. Despite the unbelievable investments andachievements in terms o energy production that enable new power plantsto be built in this market every year, generation capability is unlikely tosupport the growth o their population. Because o this, action on therational use o energy and reduction o peak loads are welcome and needed.

Tere are opportunities or these deployments to integrate existing andnew smart displays, home automation devices, and advanced gatewayswith high interoperability levels. For example, innovative technologyresearch has been done on this continent such as data transmission usinghuman interaction. Tis method can saely enable communication withdifferent devices, or example, using a handheld computer as a display unit.Data could be transerred rom a home gateway to this device (assuming

that it is somewhere near the customer, inside a pocket, or example)when the customer touches sensors located in the home, such as on entrydoorknobs. Tis method presents several opportunities to many marketparticipants, including energy utilities.

In addition, there are various types o intelligent metering technology,such as meters with embedded intelligent algorithms and smartmeasurement circuits (such as those used in India), which are able todetect and compensate or several types o tampering. Tis means that even

during tampering this meter can maintain its measurement accuracy. Tiseature, with a smart metering system, can add implementation benefitsor revenue protection.

Some utilities have already announced potential deployments ohundreds o millions o smart metering systems over the next ew years,using different technologies. Although the majority o utilities still seemto be in a phase o research and development and low-volume pilotsin the field, there are some smart metering initiatives in this continent.

For example, in Korea hundreds o thousands o smart meters based oncode division multiple access (CDMA) technology have been deployed atindustrial sites by local utilities. China has also announced the intention oreplacing hundreds o millions o meters in the coming years.




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Original equipment manuacturer (OEM) providers located in thiscontinent are also working with some key international smart metermanuacturers in order to design and produce the potential millions o

devices that will soon be needed in the world. Proper procedures mustbe in place to ensure the international required levels o demand areachieved, such as saety, socially responsible policies, metrology, andquality. Tis strategy seems to be an international trend, illustrated by theact that Asian manuacturers are currently responsible or providing tenso millions o advanced metering devices used or the biggest AMM andAMI deployments in the world.

EuropeIn terms o the number o deployed solutions and initiatives, countries

involved, and diversities o deployments, there is no doubt that Europeis currently one o the biggest environments worldwide or smartmetering systems.

Te drivers to deploy smart metering platorms differ rom countryto country, according to their specific needs and market organization. Insome regions, or example, these platorms have been deployed to enable

competition in energy markets. Sometimes these rollouts are executed aspart o the process o opening the market or competition. For existingcompetitive markets, these deployments have been used to increase thepackage o products offered to customers in avor o more aggressivechurn rates. Tus, it is clear that these platorms are crucial to enabledifferentiation among energy companies in order to increase their marketshare and to ensure customer retention.

Revenue protection is another driver or some deployments in Europe.

Even i nontechnical loss levels in this continent are not as high as in someregions o the world, controlling loss can still offer important financialreturns to business cases.

In other regions, smart metering implementations seem to be inresponse to authorities’ requests, white papers, or directives such asestablished obligations to reduce estimated bills.

Te main reasons or these initiatives can differ but, in general,they share some common drivers, or example, reduction o total

consumption (mainly during the peak times), quality o energy supply,energy management, carbon emission targets (ofen based on the KyotoProtocol), change o customer behavior in avor o their energy efficiency,social responsibility goals, and encouraging the deployment o renewablesources o microgeneration.




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ens o millions o multiuel meters have been installed in Europe(fig. 3–4). However, there is still a potential to implement even more in thenear uture by different utilities. In countries like France, energy distributor

companies are responsible or metering; in other countries, such as theUnited Kingdom, energy suppliers handle the metering. Tese differentbusiness ownerships are due to specific market organization, policies, laws,strategy, and regulation.

Fig. 3–4. An example of a smart metering system deployed in Europe. (Illustrationcourtesy of Actaris.)




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A vision per country. Te first massive implementation in the energysector in Europe was in Italy by ENEL, Italy’s largest power company.Around 30 million electricity meters are in this AMM deployment in an

investment evaluated in billions o euros. ENEL claims to have obtainedpositive results in this initiative.Markets have been organizing in different ways to execute these rollouts,

depending on local strategies and market organization. In some countries,such as in the United Kingdom, suppliers are joining orces on a commonproject to avoid the need to replace meters when customers change energysuppliers. A common specification was developed by Energy UK throughthe SRSM project. Tere are similar developments o common standardsto ensure smart metering interoperability in other countries, such asthe Netherlands.

Scandinavia is currently responsible or a large share o the massiverollouts in Europe. It has been installing millions o smart meters in thefield. Different utilities in this region have adopted their own strategieso deployment, making this probably the most hybrid deployment onthe continent. Some utilities, or example, invested in PLC architecturesassociated with low-power RF solutions. Other energy companies aredeploying RF mesh solutions or Global System or Mobile (GSM)–based

ones. In Sweden and Finland, massive deployments are at an advancedstage. Highlights in this region are the massive rollouts by Vattenall andGothenburg Energi, two o the main local energy companies.

Other utilities have decided to adopt a rollout strategy based ontargeting specific segments o customers instead o a massive deployment.An example o this scheme can be currently seen in Denmark. DONGEnergy, one o the main local energy utilities, is responsible or an advancedtargeted rollout that offers home automation unctions to their customers,

such as remotely commanded smart plugs and security alarms, throughtheir smart metering platorm. However, massive deployments appear tobe a trend in Europe. Massive rollouts can offer customization levels percustomer segment, but they also enable all the customers o an energyutility to make use o the benefits offered by smart metering systems.

In France, ERDF, the energy distributor part o EDF Group, has beendeploying a large pilot project of smart metering called Linky, whose objectiveis the replacement of the 34 million residential meters in France. Te Linky

project is based on a three-layer architecture—I, data concentrators, andmeters—and is focused on the metering goals of ERDF. Te meter containsinterfaces that enable the different energy suppliers to offer different types ofservices (information, demand-side management, etc.).




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ERDF is also developing a third-generation PLC technology thatwill allow a tenold increase in communication bandwidth betweendata concentrators and meters, compared to the currently available PLC

technologies. Tis technology, based on OFDM (orthogonal requencydivision multiplex), will ensure that the system is uture-proo.Spain has also worked in this domain. Iberdrola, one o the largest

energy companies o Spain, has is developing a technology called PRIMEthat is based on OFDM.

In Germany, some utilities decide to opt or what could be classifiedas an aggressive technological strategy, in the best sense o the word. Forexample, Yello Strom, part o the EDF Group, is installing meters basedon Internet data exchange with a very high-tech design. Te meteringindustry is definitely experiencing a revolution. Tis system has beenproviding home automation, such as automated light bulbs, and offeringonline load profiles via a web-based platorm. Tis initiative also includesuture integration with advanced high-tech displays such as modernmobile phones (fig. 3–5) and Chumby devices (fig. 3–6). Chumby is acompact Wi-Fi device that displays useul and entertaining inormationrom the web.

Other countries in Europe have been developing smart metering

technologies in pilots or medium-volume implementations o tens othousands o meter points. Te UK is also responsible or technologypilots to prepare or a potential massive rollout. EDF Energy, part o EDFGroup, in association with the local government, universities, innovationcompanies, and other energy suppliers, is part o this initiative. Teir pilotprojects include advanced interaction with customers using complex homeautomation systems, such as heating controllers integrated with smartmetering gateways. It also offers interactive channels such as television,

customized customer display units, web pages, advanced reports, andsmart payment platorms such as PAYG.

Finally, many other utilities in Europe, such as Endesa, a leader utilityin Spain and Eletricidade de Portugal (EDP), the biggest electricity utilityin Portugal, are looking toward smart metering.

Common features. Meters, in general, should be able to measure incomingand outgoing energy in order to comply with renewable energy strategies

such as decentralized microgeneration. Meters should also enable submeterarrangements or measuring total micro-generation gains. Reactive energymeasurement is also an option in Europe.



Fig. 3–5. A smart metering system integrated with a modern customer displays on amobile smart phone. (Photo courtesy of Yello Strom.)

Fig. 3–6. An example of a smart metering system integrated with modern customerdisplays on a Chumby device. (Photo courtesy of Yello Strom.)




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Tanks to HAN capability, dual-uel arrangements are commonlydeployed by utilities that provide both gas and electricity to theircustomers. Displays are used or both uels to provide customers with a

total energy view. Sometimes monetary conversions and financial orecastsare also supported.Some utilities are making good use o smart metering platorms to

provide interoperability with in-home devices such as smart plugs andmovement sensors. Services such as security monitoring, demand-sidemanagement, and reductions o standby consumption or some types oequipment have been piggybacked with in-home metering gateways.

Displays appear to be a trend in some countries. Tey vary romcustomized basic devices to complex devices and widget interaces. Tereis a high degree o confidence in some countries that the use o displaydevices is essential to changing customer behavior. Tus, they are essentialto utilities, government, regulators, and other market participants inachieving their targets, such as reduction o energy consumption andcarbon emissions.

Smart thermostats, heating controller systems, and water heatingstorage have been part o several pilots involving better management oheating systems rates. Another trend is load shifing, which may also be

the uture or intelligent appliances.Some markets, such as the United Kingdom, have a high share o

prepayment meters. Tey were generally seen as having high costs omaintenance and management. However, the ability o the meters to switchrom credit to debit mode reduces these costs significantly and offers evenmore efficient payment methods. Tus, this enables more opportunities toutilities and customers in competitive markets.

Data transmission and technical architecture vary rom implementation

to implementation in Europe. Some utilities are investing in onlineinrastructure where customers are provided with local updates every ewseconds on their display units and every quarter o an hour on a web pageinterace. Tere are also other applications moving toward load profileupdates only once a day and restricting online services or high-prioritymessages such as alarms and rate signals.

Te authorities, in general, seem to be actively participating in theseprocesses. In some countries, working groups were created to discuss the

subject, and investments have been made by some governments that willpartly or ully finance deployments and pilot initiatives.

As you can see, the strategies to implement smart metering systems inEurope vary according to local requirements, but they are definitely not a




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trend but a reality, given that tens o millions o devices have been installedin the field and are being managed by complex I platorms. Tey areadditionally integrated with advanced in-home platorms, which expand

the opportunities or their customers. However, this is just the beginning,and there is still much more to come. ens o millions more meter pointsare due to be implemented in the next ew years.

Oceania

Oceania is a continent composed o mainly islands. Tis kind oterritorial arrangement provided an ideal opportunity or smart meteringsystems. Because some o these islands have difficult access and low

population, utility companies can see efficiencies in managing theirmeasurement devices remotely. Te main initiatives in this continent orsmart metering deployments are located in Australia and New Zealand.Recent announcements by some local utilities estimate the potentialdeployment o millions o smart meters in both countries in the nextew years.

Major drivers or these projects are reduction o peak energyconsumption, energy efficiency, promoting competition, improving price

signals, enabling demand-side management, and offering other innovativeservices to the energy sector.

Improvements in the price signal mechanisms seems essential to theirdeployments because it can enable customers to manage their demand andcost o energy better through the day. Customers can receive price signalswith different user-riendly graphical ormats, such as color schemes.Tese ormats help customers to understand their consumption and adapttheir behavior to these innovative rates.

Optionally, an automatic load-shifing service can be in place. Forexample, a water heating storage system can be controlled via HAN bythe in-home metering gateway. It could be controlled different times aday, depending on customer needs and on the price o energy. Te tankcan conserve hot water or many hours thanks to its insulation level. Incase o an emergency need, the user can manually control the system.Similar unctionality can be implemented or appliances such as washingmachines. Te machine can be loaded any time o the day, but it would be

automatically controlled by the in-home metering gateway when the rateis more economical to the customer. O course, ull interoperability withthe device is necessary or the smart metering system to receive eedbackon the periods when demand-side management could be executed. Forexample, laundry cycles should not be interrupted in some stages.




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Another important eature provided in the project is the capabilityto measure import and export energy. Tis enables compatibility withinthe deployment or distributed renewable microgeneration sources.

Customers may receive different financial incentives depending onthe energy source used (e.g., photovoltaic, wind-based, and others) onrenewable certification programs. Given that one metering element shouldapply to each source, submeters are necessary. In the UK, instead o usingsubmeters or measuring renewable energy (as in Europe), or single-phaseinstallations, multi-element smart meters have been used. Tis eliminatesthe use o extra space in customer premises or these applications. Teyhave been developed and are wired so that the first element is dedicatedto measuring main consumption (net between import and export), andthe others are dedicated to measuring locally generated renewable energy.Te same principle can be used or plug-in electrical and hybrid vehicles,i desirable or the utility or necessary, depending on the rate structure andincentives involved in the implementation.

Highlights or these projects are advanced displays (fig. 3–9). Beyondrate price signals, they are able to reflect instantaneous consumption levels,represent historical consumption in graphical orms, provide monetaryconversion, and offer several other eatures to help customers efficiently

manage their energy budgets.

Fig. 3–9. A smart customer display unit deployed in Oceania. (Photo courtesy ofLandis+Gyr.)




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Several pilot programs have been conducted to enable local utilitiesand authorities to understand customer reaction to different technologiesand services. Tese initiatives were split into different phases. During

this process, the benefits to the different participants o the local energymarket were measured. Deployments take into account this eedbackin order to achieve the required level o customer satisaction and othermarket targets.

International Drivers

and OpportunitiesDuring an efficient benchmarking exercise, it is common to identiy

the potential opportunities and challenges a utility can deal with, based onexperiences with similar projects. Even i projects vary depending on theparticular implementation aims, synergies are likely to be identified.

In this section discuss some potential opportunities and driversassociated with the deployment o ocused technology. We discuss, orexample, some natural actors that almost require pilots and deployment

o smart metering systems. Some can be used in business cases andtechnical viability studies and analysis. Tese points are discussed at a highlevel only. Investigating these topics in details and providing continuousupdates should be a goal o the market participants.

Natural drivers to deploy smart metering systems

Building a smart metering project is sometimes very arduous because o

the analysis necessary to ensure the success o the project. Environmentalanalysis is one o the most important to identiy opportunities andchallenges or smart metering projects. It is essential to define the entitiesaround this project and also the risks, challenges, drivers, opportunities,and other aspects that can influence the deployment decision.

Incentives to deploy these systems can emerge rom different entitiesand stakeholders, including meter manuacturers, universities, technologyresearch institutes, governments, customers, and others.

Local authorities. Local authorities have been studying smart meteringin many countries. Te energy supply service affects the population atseveral levels, such as comort, satisaction, lie, and health. It can alsoaffect carbon emissions, changes in the environment due to the need to




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build new power stations, and many other actors related to the publicinterest. However, other aspects can be considered such as developmento direct and indirect employment; avoiding natural market trends; global

warming; and improvements in diverse economic sectors, renewableenergy, and innovation.For these reasons, authorities sometimes move beyond their standard

market responsibility to legislate and regulate energy utilities in order toprovide incentives and assistance to them to develop these projects. Tisactive participation is important to ensure that these projects meet all theneeds and interests o all the participants o the energy market. Assistance varies rom providing specialized resources to organizing working groupsto partially or ully sponsoring research and development projects, fieldtrials, and deployments.

O course, authorities also require targets to be achieved and continuousaudits to ensure that the investment is being properly applied or thepopulation, the environment, and other applicable areas. Tis potentialdriver can help utilities to develop these technologies properly and toensure that their social and environment commitments are achieved. It isalso important to mention that some authorities in the world are studyingmethods that could actively help to reduce carbon emissions resulting rom

energy use. Although energy utilities have been trying to move demand totimes when energy is cheaper, the network is less loaded, and less pollutionis generated, the budgetary aspects sometimes do not incentivize customersbecause the financial values are not large enough. In several countries,taxes are a large part o the rate, irrespective o the period energy is used.o deal with this challenge, studies have been perormed to apply different values to taxes depending on the time electricity is consumed. Tis may bein important driver or smart metering systems and may produce benefits

or all the market participants and the environment.

Mass technology effect. Smart metering systems are a reality in somecontinents, not just a trend. Several rollouts o these technologies areunderway around the world with tens o millions o meter points. Itis not an exaggeration to say that hundreds o millions o points will beimplemented internationally over the next 10 years.

As with any other technology, the mass technology effect creates a

reduction o costs. Tese reductions have already been observed in themetering market over the past ew years, and costs will continue to go downeven more aggressively. Tis trend applies not only to all the devices in themetering system inrastructure but also to other related components, suchas I sofware licenses and telecom costs.




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Some markets are also mobilizing themselves to increase this effecteven more. Utilities are organizing grouped offerings based on commonminimum specifications. Customizations to enable differentiation can be

achieved at the in-home metering gateway level. New applications canbe built by utilities or third parties to be downloaded onto this gateway,because o the flexibility o this technology.

Partnerships. Participants such as telecom providers, customers, anduniversities, are very interested in this market. Based on common interests,the inrastructure can be developed at very low cost or even where thebenefits outweigh the costs. For example, i a broadband PLC system isused, a third party can offer Internet service to utility customers. Commontechnology research is another way to save money as a result o potentialcommon institutional interest. Another point is the ability to provideconnectivity to smart metering systems by piggybacking Internet accessthrough the customer’s existing broadband modem. Tis could bring asignificant reduction in communication costs or utilities.

Universities have a special interest in smart metering. Millions odifferent devices, operating in complex environments and interacting inthe field, ace challenges such as interoperability, data security, and data

management. Research and development at the university level could be aunique opportunity or doctoral candidates, and the universities could reapfinancial rewards in the orm o product development, patent publicationswith associated royalties, and marketing opportunities. Universities couldparticipate in the design o solutions and pilots at low cost or utilities, oreven without any direct cost.

Periodic asset acquisition processes. Energy utilities ofen buy meters or

new installations as the population grows and to replace aulty meters. Tequantity o meters purchased varies rom utility to utility but is generallyin hundreds o thousands per year. Utilities can make good use o theseregular meter acquisitions to promote smart metering projects. Teseconventional costs can be deducted rom the costs o new smart meters.Business cases should consider these scenarios to reduce the costs otechnology field trials and deployments.

Beyond acting as a driver o progress, when smart meters are purchased

instead o traditional ones, they also provide an opportunity or energycompanies to amiliarize their customers with the new technologicalenvironment. Smart meters can act as a research platorm to impart abetter understanding o the needs o consumers and to guide massiverollout strategies.




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It is also an opportunity or other market participants, such as localauthorities, to gain a better understanding o the effect o these technologiesand the ability to achieve their goals. Tis can guide mass deployments,

define targets, and analyze governance and regulatory rules needed toensure efficiency.Clearly, smart meters are more than a simple driver to utilities and

other market participants. We explore this in more detail below.

Opportunities with smart metering deployments

Now that we understand the drivers, we can study some opportunitiesor these deployments. In this section we won’t explore every opportunity

but will address some o the most common ones.Energy utilities should create and maintain ull logs and analyses.

Benefits realization criteria must be associated with these opportunities,with continuous updates during different stages o the project.

As these projects could affect different market participants, it isnecessary to discuss some o them individually. Te list o participantsconsidered here is not exhaustive but rather the minimum necessary to callyour attention to the effect o these projects on different market entities.

Tere may be several opportunities considered or one marketparticipant that may also, directly or indirectly, apply to others. An exampleo this is, o course, the utilities themselves. We will look at the majorityo opportunities in this section with a utility perspective, because energyutilities are ofen responsible or implementations. However, that doesnot necessarily mean that a utility gains more benefits than other marketparticipants. Tus, many opportunities may equally apply to customers,local authorities, and several other market participants.

Te individual opportunities to be discussed here are not necessarilyapplicable to your specific environment; their applicability should becareully analyzed case by case.

Customers. Te opportunities smart metering systems can offer tocustomers are numerous, although it is not always obvious what benefitscan be realized. Efficient deployments can encourage customers to seethis system not only as a cost but also as a service with opportunities and

benefits. Improved customer relations because o better communication isthe first benefit these projects can offer.

Smart displays can improve the relationship between consumers andenergy suppliers. As discussed, this efficient communication channel givescustomers a better understanding o their consumption and budgeting.




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consumers when meters are installed inside their homes. Someone mustbe at home to provide readings, and when this is not possible there canbe problems with estimated bills. Another potential problem is imposters

with malicious intentions pretending to be utility employees.For these reasons and others, smart metering platorms offer importantopportunities to customers i they actively participate during the entireproject rom conception to postimplementation. Customer eedbackis crucial.

Utilities. Different branches in a utility can make good use o manyopportunities in different ways; however, all perspectives are not necessarilytreated in this section. Tus, it is important to ensure that all thesebranches actively participate to the process o gathering requirements andopportunities. Tis is crucial to guarantee that all benefits are achievableand included in the project.

Due to the quantity o utility opportunities, we will only discuss the top10 here.

Energy-efficiency advice. Energy suppliers can offer intelligent advice totheir consumers in terms o energy efficiency (fig. 3–10). Smart metering

systems can advise customers by providing an analysis o their behaviorrelated to energy profiles, rates, and other aspects. Other systems, such asmeteorology processing, are able to provide external online inormation.Tese data can be matched to utility data and enable prompt advice toconsumers. Weather conditions such as temperature are strongly relatedto consumption. Online advice, orecasts, and demand-side managementproducts can make good use o this correlation.

Cross-analysis with personal customer data offers more opportunities.

Consumers may want to invest in products that provide energy savings,but they need detailed inormation beore making decisions. For example,what would be the best investment: to improve insulation levels in thehome in order to increase efficiency o their heating systems or to changetheir incandescent light bulbs to energy-saving ones? Te answer varies,depending on the type o property and consumption behavior.

In order to assist consumers, some utilities benefit rom smart meteringplatorms by offering energy-efficiency advisory tools. Tese products

match customer-load profile inormation with personal inormation.Private data can be obtained, or example, rom a ew key questions askedo consumers through channels such as websites or in-home displayunits, taking into account the legal requirements and the agreement othe customers. Tese questions are usually about the home’s construction,




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customer behavior, and related topics. Te questions should be able tobe answered in only a ew minutes so as not unduly delay consumers.Tereore, the questions must be structured.

Fig. 3–10. An energy-efficiency advice platform integrated with smart metering systems.(Photo courtesy of Yello Strom.)

Relating these questions to energy-load profile data could resultin customized energy-efficiency recommendations with financial

implications. Tis report would inorm customers o the more appropriateaction to be taken. Te recommendations should be ordered according togreater investment returns. Te document should detail the investmentsneeded (taking into account cost o capital and other financial parameters),the time required to realize savings, and a list o proessionals able todeliver these services, i required. Tese recommendations could vary inways such as the ollowing:

• Replacing light bulbs

• Purchasing energy efficient appliances

• Installing additional insulation

• Rate advice




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• Changing behavior (or example, running appliances at nightwhen rates are lower)

• Demand-side management propositions

• Relocating appliances or improved efficiency (or example, inareas with low temperatures, moving equipment such as a waterheater rom a cold external location to inside the home)

• PAYG

Currently, there are companies that provide these services to customers;however, energy utilities seem to be much better placed or the job.

Intelligent data analysis can lead to key opportunities in this vein. Utilitiescould also partner with energy-efficiency companies, consultants, in-homeservice providers, and appliance manuacturers in order to serve customers.Different kinds o businesses can be set up with these enterprises. It isa win-win—the customers would gain because the recommendationscould easily benefit them financially, and the utilities could benefit rompartnership agreements.

It is also important to mention that energy efficiency is more than justreducing energy demand. Te tendency to return to high energy usage, inanother words returning to the old habits o energy consumption, shouldbe avoided. Consequently, actions to change habits should be implementedin a way that customers truly understand and become committed to.Otherwise, the demand could quickly revert to its original state. Forexample, it is common to see customers engage or an initial period whensmart meters are applied, but afer some time their energy-efficiencyactions lapse. o make a health-related analogy, we are not talking about adiet but a nutritional reeducation. Because o the presence o temptations,

it is ofen harder to maintain reduced weight than to lose it initially.Similarly, technology involves comort temptations. For example, energysavings could be replaced by increased heating consumption. I customershave a habit o adjusting their thermostats to levels that save energy,reduced rates might tempt them to increase or decrease the temperatureby a ew degrees, which would increase energy usage. It is not a mattero teaching customers how to spend their money, but explaining to themhow this action would affect the objectives o reducing consumption and

consequently helping the environment and society as a whole.Tis education process should involve all o society—including children.

Energy-efficiency programs at schools are very helpul here. For example,there are utilities in Europe offering awards to students and teachers whoreduce their energy consumption.




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Opportunities seem to be innumerable in this area. Creativity andintelligence are essential to maximize benefits to utilities and othermarket participants.

Reduction of operational costs. Normally, utilities have difficulty identiyingwaste. Tis could be due to their lack o process automation, such asmetering. Smart metering implementations can help identiy losses indifferent areas such as revenue protection and field operations.

Operational works are an example o these challenges or utilities.Besides producing technical benefits or enterprises, the reduction orelated costs ofen provides benefits to other participants like employeesand customers. For example, employees could obtain financial gains suchas increased bonus related to a company’s production or a reduction inprice o energy.

Smart metering systems can help utilities to reduce costs in severalareas, such as site visits. One site visit to read a smart meter located insidea customer’s home might cost more than the device itsel. With thesedeployments, as meters are remotely managed, utilities do not need to visitconsumers to carry out the ollowing activities:

• Meter readings or billing cycles and other needs such as changeo supplier

• Simple meter tests

• Extra appointments, or example, due to meters installed insidethe home and absence o the consumer when needed

• Installing power limitation devices or uses. Local authoritiessometimes require these so that consumers are not immediately

cut off or nonpayment. Replacement o uses is requentlyneeded when consumers exceed their limits o allowed demand.Tus, these costs could be significant as a result o manysite visits.

However, these procedures could be remotely executed and their costsully eliminated. Tere are urther points where the need or visits and theassociated time can be reduced, consequently yielding savings:

• Local work to execute remote disconnection andreconnection events

• Work on remote consumer premises on islands, in orests,and rural areas




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• Local readings or rebills

• Optimization o field visit time, or example, elimination o timewaiting or customers to come back home or an appointment

or to authorize technicians to execute work

Smart meters are able to operate switches remotely or different needs,such as when current levels are incompatible with a predefined profile, orto execute remote disconnections. Tis would significantly reduce costs.

Another area o savings is the call center. Reduction o calls is expecteddue to new unctions that smart metering platorms can offer. For example,complaints about energy quality and outage alarms can be transmittedthrough the metering system, eliminating the need or customers to call.Customer display units also offer new channels to schedule appointmentsor field services.

Tese platorms add opportunities or managing customer surveys,electronic bills, and delivery o customized messages. Tis could reduce,or example, the number o outsourced services or fieldwork andcorrespondence delivery. Indirect costs related to these procedures, suchas invoice printing, could also be reduced.

Functions that monitor energy quality, like flicker and harmonics,can aid preventive network maintenance and management. Meter burdencould also be reduced and consequently the level o technical losses andassociated costs.

Prepayment service upgrade to PAYG tends to reduce costs relative toinrastructure such as reduction o pay points, eliminating the need orcard or key management.

Tere are many other ways to reduce costs or energy utilities, whichwill be studied later in this chapter. Tey are not explored here because

they relate to other benefits that need to be highlighted and studiedin detail. Examples are reductions o revenue protection costs andnetwork management.

Reduction of peak consumption. Tis is another big area o opportunity.Te daily consumption profile o energy utilities around the world is notflat. Consumers have different needs during different times o the day. Teconsumption pattern is usually predictable but becomes a problem when

there is a huge difference compared to the average.Peak points are common in a daily profile. Te challenge is to try to

reduce the differences o energy consumption between high, middle,and off-peak periods. o achieve this, load management is paramount.




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Sometimes, despite the energy-efficiency actions previously described,demand does not decrease by itsel. Tus, peak times can represent a realrisk o energy collapse and blackouts. Unortunately, or emergencies, it

may be necessary or the distributor to promptly reduce demand. Tis canbe part o rate arrangements or required due to an emergency via a codered or similar alarm. Smart metering systems offer different ways to do thison the utility side o the load, such as:

• Load curtailment: In this service, the distributor can send ordersto groups o meters to enable disconnection and reconnectionat a defined time. Tese orders are normally executed graduallyalong the network under broadcast commands. Reconnection

procedures must be saely executed. • Power limitation: Smart meters are able to offer power

limitation capability. Tis can be part o a rate or be used duringa network emergency. Once a predefined profile is established,the customer could be advised via alarms about exceedingconsumption. Consumers then intervene to reduce their load.I the demand is kept at the same level, during a defined period,the customer is temporarily disconnected. Once a time window

is passed, reconnection is saely enabled by the metering system.

Tese methods can produce efficient results or distributors andsometimes to suppliers, although they might be avoided due to the aggressiveway that orders are commonly executed. Tus, it is recommended that theybe used only as last resort. For more advantageous results or all the marketparticipants, demand-side management is the best way o providing thenecessary reductions. Efficiency is achievable because o the deliberateagreement o customers to participate in these programs and gain benefits.

Beyond providing benefits to utilities, they reduce energy bills and haveseveral other advantages to consumers and to the environment. Tis isdiscussed in more detail in the next section.

Demand-side management. Energy demand has been steadily increasingbecause o higher demand or appliances or comort, status, and otherreasons. People sometimes have five televisions in their home, or example.Tis behavior is good or business interests but has increased energy

consumption in the world to unmanageable levels. Something must bedone about the quantity o energy demanded by society in order to avoidcatastrophe. Beyond manuacturers taking action to reduce unnecessaryconsumption, such as standby and other loads, demand-side managementseems to be an efficient way to deal with this challenge. It gives the ability




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to reduce demand at the source. Tere are many products that deal withdemand-side management. An interesting one is load shifing.

Load shifing allows appliances and other in-home devices to be

allocated special rates. Equipment can be switched on or off in definedtime windows during the day. Many devices can be part o this scheme,such as electrical heating systems and boilers, and they can be switchedon and off using different methods. In the past, one-way ripple controlsand RF broadcast devices were used or this purpose. Nowadays, smartmetering systems make this solution easier and enable more efficient andflexible management. For example, a utility can stipulate that rate signalswill be sent to the meter rom 1 a.m. to 7 a.m., and during this period,the energy price will be reduced or our hours. During this seven-hourwindow, rate orders could be sent at different times over several shortperiods that would add up to our hours per day. Using these signals,an in-home metering gateway would be able to command external orintegrated contacts. Tey can switch through a boiler controller andenable it to switch on or off according to the energy product. Everythingis done automatically to decrease energy prices to the customers withoutinterering with their comort.

Smart plugs are an example o state-o-the-art technology (fig. 3–11).

Simple versions that are available on the market are commonly run by atraditional remote control device. In this case, a simple press o a buttonenables smart plugs to be turned on or off locally by consumers. Tis is anopportunity or customers to reduce their demand manually, via their ownmanagement device. However, it seems impractical or the consumers todeal with this task every day. A more practical solution is to integrate theselocal smart plugs with smart metering systems.

Fig. 3–11. A smart plug. (Photo courtesy of PRI.)




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In this scenario, smart plugs could work similarly, but based onrate signals. Tus, they become communicating plugs with embeddedswitches, and sometimes with an additional internal submeter, able to

be commanded by an in-home gateway such as one designed or smartmetering purposes. So, a metering gateway can command these smartplugs according to a specific rate or network condition. Additionally, theycan be used to avoid standby loads or devices such as transormers orrecharging mobile phones and video games. Sometimes, these are lefpermanently connected in the electrical sockets without any purpose. Ocourse, even without a transormer charge, they are consuming electricityrom the grid.

For even more customer convenience, smart plugs, and consequentlyany connected appliances, can be remotely switched on or off via aweb-based platorm. Tus, a consumer would be able to turn on appli-ances such as heating systems beore arriving at home rom a computer orsmart phone. Tis is an improvement over traditional heating controllers,which operate according to a preprogrammed schedule. Tis can reduceunnecessary energy use on days when we arrive home later than usual,or example. Te possibility o turning devices on or off remotely cansave significant amounts o energy, taking into account the act that some

devices require high levels o consumption. Saety, o course, must be aprimary concern or these options.

Home automation panels can offer similar opportunities. ouch screenscan give local orders to these devices. Mobile phones and similar devicescan be used similarly or this purpose. Te association o automatic tasksand manual operations can help customers deal with exceptions and to putin practice new ways to save energy that, i proven successul, can be thenimplemented as an automatic task or rule.

Because o interoperability eatures, appliances themselves can be directlycontrolled by smart metering systems and be switched in accordance withrates. Tey can be turned on when energy rates are cheaper.

All these methods are associated with real-time prices. In this case,options could be given to customers to accept a temporary instantaneousrate in avor o a reduced price or a defined period. Acknowledgment o thisservice could be made via the display interace. Tis rate could be enableddays or even hours beore it effectively applies. Tese arrangements could

be used or different reasons such as networks needs and better energyprices available on the spot market.

Display interaces can also help. Tey could offer customersconsumption orecasts, monetary dual-uel inormation, synoptic analysis




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about rate price and consumption, and energy comparisons. Tey can offerconsumers the possibility o locally configuring demand-side managementparameters such as data security, times when devices will be turned on and

off, as well as priority rules or disconnection o appliances in the event oa rate signal request.Another opportunity is distributed energy storage. Batteries are

provided to offer energy storage during off-peak periods, to be usedduring peak times. Tis method can be implemented in several ways romproviding installation o new devices or DC-AC conversions in the hometo using existing sources o battery storage, such as plug-in vehicles.

Renewable sources o microgeneration could also be used during peaktimes. Smart metering systems can optionally manage these devices orsimply enable integration with energy utilities by measuring import andexport energy and reactive energy and by providing interoperability withsubmeters. Tese options, beyond optimizing network consumption,help utilities to achieve energy targets o improved renewable generationsources. Other indirect action can be taken, such as installing heat pumpsin order to optimize the use o thermal energy in the premises andconsequently reduce energy consumption.

Optimization of network management and quality of supply. Smart gridsprovide services such as network sel-reconfiguration, automatic aultisolation, ault detection, and sensors to detect maintenance needs. Smartmetering systems can also provide many interesting opportunities heresuch as basic network management. Both can help utilities reduce theiroperational costs.

Electricity meters can offer diagnosis and reporting o outage events.Intelligent algorithms can help to determine the area affected by blackouts

and guide corrective action. Tis can reduce the time needed to solveproblems in the field and also reduce the number o calls. Automatic voicemessages can be promptly activated in call center systems beore customerscall to complain. Voice messages would inorm the consumers that theutility is aware o the problem and has already begun efforts to solve it. Inthis case, the calls would be initially held by an automatic answer system,avoiding the need or staff intervention, except when really needed. Inthe gas utilities, network pressure management could also be optimized

through these deployments.Anomalies on the grid can also be promptly detected and corrected to

avoid affecting premises, such as over- or under-voltage events. Tis processcan reduce costs to energy utilities, such as or correcting equipment aults




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rom network anomalies, as well as avoid fines charged to utilities orailing to meet regulatory targets or the quality o energy supplied.

Power actor correction can be identified via intelligent analysis o

profiles rom customers and meters. Tis could enable the installation ospecific equipment along the grid to correct these levels, such as capacitors.Another potential solution is the possibility o applying special rates toeducate customers about these problems. Rates related to reactive powerhave been implemented by different countries around the world. Teyenable customers to improve their individual power actor. Values below apredefined threshold can result in penalty fines and higher energy bills toconsumers. Tese actions are essential to reduce costs related to networkinvestments necessary to deal with these challenges.

Another point is saety. Tis paramount requirement can be improvedwith implementations o smart metering systems. For example, gas leakdetections are possible. Tis unctionality alerts customers and isolatesthe gas supply when these problems are detected, or example, due topeople orgetting about an open valve on a cooker. Tis service is ofenavailable or reconnection events, but it can also be offered or normaldaily operations via the installation o interoperable gas detector sensors.In case o detection, the meter valve is opened promptly, and afer a

predefined time, consumers can saely reconnect their supply (or a limitednumber o attempts). Automatic reconnection is not recommended.Tus, this procedure is only possible via local acknowledgments on themeter or on customer display units. Te consumers could be warned bydisplay messages with basic inormation about how to deal with this eventand, i necessary, told to contact the technical call center where availablespecialists could advise them on how to solve the problem. For example,consumers could be asked to close any open valves in their premises, such

as in their cookers, and then retry a supply reconnection. I problemspersist, meters would block the reconnection unction and require a visito technical expert to the premise. It could only be reconnected afer aninspection by the energy utility. Saety aspects must be taken into accountduring all related procedures and advice in order to ensure zero risk tocustomers and their properties.

For electricity grids, sae reconnections are undamental too. Meterscan receive customer acknowledgments, beore being reconnected,

in order to avoid risks to consumers and their premises. As or gas,customers can enable reconnection events via meter buttons or using theirdisplay interaces.

Another point is dispatch o energy. Load simulation and emulationsystems can be used to provide load analysis via energy profile data rom




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customers. Online analysis o load profiles can identiy points o problemson the grid or prompt or uture correction. Tis could result, or example,in temporary network reconfiguration or managing transormer overloads

during peak times.

Reduction of nontechnical losses. Although this is extensively discussedin chapter 1, we are going to study some extra opportunities that smartmetering platorms can offer to deal with this challenge. Tis area is usuallythe main payback input or deployment business cases.

Smart metering rollouts can assist utilities to identiy their levels onontechnical losses individually per substation eeder. Once a challengeto distributors, this is now possible with the installation o energy balancemeters to measure substation eeders or individual power transormers.During meter installation, i all the premises supplied by transormershave smart meters installed approximately at the same time, then onlinenontechnical loss analysis can be done. Tis is crucial to ensure that thereare no abnormal losses associated with the transormer when the fieldinstallation is complete. I any irregularity is identified, it is promptly fixedwhile the technicians are still there, avoiding the unnecessary cost andinconvenience o revisiting premises. Te system is configured with the

values o technical losses related to the circuit. Tereore, it automaticallydetects anomalies i higher values o losses are detected. Tese values mustbe careully investigated and defined, case by case, as circuit levels can be very different. Tis procedure also reduces technical losses, or example, via replacement o cables and connection terminals i necessary duringinstallation. Periodic energy balancing should thereore be carried out,or example, our times a day. Tese analyses generate field inspections iirregularities are detected.

Flexibility is paramount. Systems should be able to provide customizedbasic calculations o load profiles and meter registers. For example, a systemuser could request sofware to sum the curves o 100 customer meters andsubtract this result rom the curve registered on an energy balance meterconnected to the transormer that eeds all those premises. Tis wouldcreate a loss energy profile, which could then be converted to a percentagei needed. Tis flexibility o adjusting the curves using settable parametersand mathematical operators is essential or revenue protection action and

can be achieved thanks to smart metering platorms.Besides detecting tampers, online analysis helps to eliminate them

quickly in the field. Tere are costs associated with energy recoveryprocedures and loss prevention activities, or example, or the resourcesnecessary to calculate penalty fines, manage appointments, and negotiate




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Note that there are also some innovations in this area that could beassociated with smart metering systems to reduce nontechnical losses.For example, in Brazil some utilities have tried a new power transormer

with integrated measurement (fig. 3–12). Its primary side is connected tothe medium-voltage network, as usual; however, its secondary side is ullymeasured by a fiscal meter (energy balance). Additional specific meters alsomeasure the low-voltage distribution cables used to supply the individualcustomer homes. Tus, all measurements occur at the transormer level,which limits the access o people who may want to tamper. Customers cancheck their consumption inormation through a display installed insidethe home. Te specific compartments where the meters are located aremade o resistant material and monitored online using special-purposesensors. Tus, any intervention could be promptly communicated tothe middleware.

Fig. 3–12. A power transformer with integrated measurement. (Photo courtesy of Seedel.)

Financial management. Financial management can produce savingsor energy utilities by optimizing cash flows. Although the majority ocustomers pay their energy bills on time, late payments are common.

Tis creates monetary problems or utilities and extra costs or rebilling,field visits or disconnection and reconnection, and legal procedures thateventually become necessary to recover these amounts. Sometimes, thecosts outweigh the value to be recovered. When allowed to accumulate,they create a debt management need that can involve appointments,




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negotiations, and other actions to the point that they are unlikely to bepaid by customers, even i divided into regular payments.

Among the other solutions that can be offered by smart metering

systems, PAYG seems to be the best one to help customers to be betterprepared to ace these problems. PAYG also improves the existingprepayment system, or example, by avoiding the costs o reconciliationin competitive markets. Tese systems offer flexible channels and paymentmethods to prevent accumulated debts by customers. I necessary andunavoidable, meters can also be disconnected remotely, which eliminatesthe cost o site visits.

Another point is ending estimated bills. As already mentioned, apartrom creating cash flow problems, they create debt due to unexpected,expensive bills.

Bad decision making generally creates financial problems, and goodinormation is needed in order to make wise financial decisions. Forexample, utilities can be aced with questions that in theory are easilyanswered, but harder in practice due to absence o decision tools and goodinormation. Te ollowing are examples o these questions:

• For which customers would it be more beneficial to invest inrevenue protection: residential or industrial?

• Where are the biggest levels o nontechnical losses? Whatregions would provide the most benefit?

• Is it better to invest in revenue protection, differentiationservices, or PAYG?

• What are the services that customers would pay or?

• What are the real levels o nontechnical losses in relation tototal losses?

• What are the values or energy balancing that bring promptaction in the field?

Data-mining systems can work through smart metering data warehousesto provide inormation to be used or analysis o investments and help withdecisions. Queries could also be used, in association with field research, totarget products according to customer needs and added-value perception.

Smart metering platorms are important tools that can improve financialmanagement in energy utilities.




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Customer retention and competitive differentiation. Retaining a customeris much more economical than attracting a new one. Losing customers,in addition to effects on market share and sales, leads to costs to acquire

new customers to cover the gap. Tus, improving loyalty levels is key orutilities operating in a competitive market.Loyalty is ofen connected to customer perception o value or energy

services. Energy price is important, but other parameters exert a greaterinfluence on customers, like good service, innovative products, and trust.Smart metering platorms offer opportunities to customers to interact withtheir energy utilities in a different way. Tey enable energy to be considerednot only as a simple commodity but also as an added-value service.

Innovative products, technology, and efficient strategies, together withother benefits that smart metering platorms can offer, are key to thisevolution. Energy-efficiency action could also contribute to this process,i well implemented. Afer all, who would not like to have their energy billreduced? I someone could provide this benefit or you, and i you were surethis benefit would be sustainable, would you change suppliers? What aboutthe goodwill these successul actions create? Word-o-mouth marketing isstill the most efficient and economical way o attracting new customers.In summary, customers perceive these products as added value and want

to continue with their energy supplier. Beore investing in creating newconsumers, utilities must ensure that their customers are satisfied. Beyonddifferentiation, even though smart meters enable customers to changesuppliers more easily, smart metering can also promote customer loyalty!

Providing new services is important to utilities to survive in aggressivemarkets and improve customer satisaction. Despite customer retentionstrategies, increasing marketing share is ofen a major target, too. Smartmetering platorms can provide the necessary products to enable utilities

to achieve this target. Differentiation services can be offered via the largenumber o eatures this system enables but also through integration o thisplatorm with other products. Te ollowing are examples o opportunities:

• In-home automation like lighting controls and smart locks

• Remote command o smart plugs and appliances via the web,based on both scheduled and on-demand orders

• Existing in-home display interaces

• Home saety services like flood, smoke, and gas leak detection

• Integration with cooling systems and heating and hotwater controllers




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• Weather orecast displays and analysis

• Internet, video streaming, and VoIP services

• Creation o energy service companies (ESCOs) • New income streams rom partnerships

• Health care devices like HAN-based diabetic testing,panic buttons, automatic blood pressure monitors, andelectrocardiogram routers

• Home security

Te above opportunities can be customized according to the utilityenvironment. While in some countries peak consumption is mainly relatedto the use o heating devices, in others these levels could be related to airconditioning or even to both systems, depending on the season. Despitethese customizations, these products enable utilities to change customerperception o their capabilities. Energy suppliers now sell energy efficiencyand comort to their consumers. Improvements in reputation and companyimage are an indirect benefit o this perception.

Partnership resources should be used or services not related to corebusiness o utilities in order to ensure optimum perormance o productsoffered. Use o specialists can be more appropriate because o theirexpertise and experience.

Customer relationships have entered a new era with the use o innovativedisplay channels. Marketing can be improved through these displays.Utilities can now profit rom these devices to deliver messages to theirconsumers or different purposes, such as offering new products. Subjectto legal requirements, these services could also be offered to partners such

as insurance and energy-efficiency companies. Advertisements and othermarketing tools could also be offered in a similar way.

Another point o improvement is optimization o customer relationshipmanagement (CRM) platorms. Tis new display channel can enablereduction o costs and opportunities or different related unctionalitiessuch as:

• Multilanguage interaces

• More requent customer surveys

• Local energy credit acquisition or PAYG services

• Advisory services or customers




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the world adopt this regime to enable competition in these market areas,among other reasons.

In this scenario, suppliers purchase the energy they offer to their

customers rom generation companies. Te price o energy purchased varies according to the time it is needed, the source o generation used,and other aspects. In order to negotiate these contracts, utilities need toestimate their energy demands. Simulation and orecast tools are usedor this purpose. Detailed analysis allows these companies to understandmarket change in consumption. Nowadays, these orecasts are basedon total measurements, previous negotiations, assumptions, and otherparameters. Sometimes, because o a lack o available inormation, thesenegotiations are inefficient and create prejudice o energy suppliers.For example, too much energy can be purchased. Te opposite can alsohappen. Te narrower the margin between energy demand and supply,the better its cost and financial benefits. Tus, taking into account thatthey are generally negotiated as medium-term packages, utilities can payan expensive price or mistakes. In summary, this can oblige utilities topurchase expensive extra energy on spot markets or to deal with enormousmargins o idle energy.

Smart metering systems provide data to optimize energy simulations

with customer profiles and associated products that can be used to avoidmistakes in demand orecast. Tey can offer energy-efficiency products,such as demand-side management rates, which can enable these companiesto postpone purchasing extra energy. Tus, market demand can beadapted to energy acquisition strategies and current contracts, rather thanthe opposite!

During peak times, in general, more expensive generation sources areused. Additionally, the extra production plants, necessary to supply the

needs during this period, usually use sources that produce more pollutionsuch as carbon emissions. As demand is higher during these periods,this price can be significant in terms o the total energy package offeredto consumers and harm to the environment. Tus, reduction o peakconsumption potentially reduces energy costs or utilities, usually or theirconsumers, and potentially or the environment. Efficient managementenables, at least, prioritizing or more economic benefit and less pollution.

Other issues must also be addressed. Sometimes, the spot energy

market is only used by energy suppliers in case o an emergency, orexample, where there are inefficient contract arrangements with maingeneration companies. However, with online rates and demand-sidemanagement, smart metering systems can present opportunities. Idleenergy is sometimes offered at low prices in this market. Depending on




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laws and market rules, this energy can be purchased by energy suppliersto offer temporary instantaneous rates to their customers. Tis aggressivestrategy can bring several benefits to different market participants and

enter a new era or competitive markets.Finally, the benefits that smart metering platorms can provide toutilities and ultimately to their consumers and other entities o the marketsare innumerable. Tese opportunities should be evaluated along with thefinancial analysis in order to guide the implementation o this technology.O course, energy company strategies must also be respected and takeninto account.

Efficient maintenance and installations. Installation and maintenance mustbe efficiently executed in the field. Plug-and-play installation is a useulmethod o reducing time such that even complex systems do not necessarilyrequire a significant amount o time to implement. Intelligent systems mustenable automatic discovery processes or installation devices and mustallow or simple and secure connection procedures to associate devices inthe smart metering HAN. Sel-diagnostic tests and configurations must beautomatic and quickly executed. Te use o inrared scanners and othertechnologies potentially also reduces the length o time spent during field

visits. Tese procedures can link to GPS devices in order to improve assetmanagement. In summary, in order or to these systems to be truly smart,the need or device field intervention and related time spent should belower than or traditional metering platorms.

Predictive maintenance offers opportunities in addition to remotemaintenance procedures. For example, power transormer aults are ofendue to overloads during peak times or problems o load balancing acrossdifferent electric phases. In act, even i these problems are seen as simple,

the majority o utilities are unable to identiy them due to lack o inormationand automation. Smart metering systems, or example, enable online fiscalmeters to be connected to power transormers or measurement. Tesemeasurements can be as simple as active and reactive energy only orprovide complex quality analysis involving harmonics. Tese meters canbe temporarily or permanently installed on the grid, according to utilitystrategy and business cases. In both cases, they contribute to promptlyidentiying and correcting grid irregularities. Energy consumption and

other measurements can be individually recorded per phase. Abnormalenergy profiles can produce grid reconfigurations and demand-sidemanagement action. Te sustainability o these achievements can laterbe monitored by these systems. Te predictive maintenance that these




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Innovative Rates andPayment Systems

Beyond opportunities and drivers with international deployments osmart metering systems, innovative rates are one o the main reasons orrollouts. O course, their implementation depends on legal requirements.In some regulated markets, local authorities can be responsible orestablishing rate prices and/or structures. Even in these cases, technologiesoffer, at least, tools that utilities can use to offer innovative products toconsumers. As the global trend goes toward ully competitive marketsor energy, these platorms could create many opportunities to customers

around the world. In existing competitive markets and others in theprocess o opening up competition, these systems offer immediate benefitsto all the market participants.

Regulated markets commonly have simple rate structures or creditand prepayment customers. A single energy register is built into metersto show accumulated consumption. Te related readings are linked to asimple rate and to other financial aspects like local taxes and fixed charges.Tis basic scenario was imposed in the past due to the limits o the first

electromechanical meters. Nowadays, innovative rates can be offered tocustomers, providing the flexibility this new technological era requires.

In the electricity domain, these opportunities are promptly realizedby utilities and put into practice once smart meters are deployed. In thegas sector, because o different actors such as time-o-use rates, someutilities do not apply innovative rates. Energy suppliers can make gooduse o the opportunities or modern rate profiles or gas. Te cost o gas isalso affected by consumption peaks, price variation according to time, and

other characteristics that could be improved with these new measurementsystems. We should not orget the indirect costs involved. Electric pumpsare ofen necessary to enable gas distribution. Consumption costs varyaccording to the time o day and thus can be optimized. Energy companiesshould produce financial analyses and benchmarking exercises to put thisinto practice or, at least, to hold discussions with authorities to allow it inregulated markets.

New rate profiles are crucial to energy suppliers to survive in competitive

markets. Several structures could be supported by smart meteringplatorms. Te ollowing sections cover some o them.




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Pay as you go (PAYG)

Te PAYG structure is the natural evolution o prepayment systemsand energy package rates. It can group the best unctionalities o existing

products and create even more opportunities due to its association withother products and benefits provided by smart metering systems. Teseplatorms have the flexibility to change the payment mode remotely onmeters. Tis means that utilities can use the same device or both creditand debit and switch between the two remotely. Until recently, when usingtraditional electronic meters, utilities were required to replace the meterin the field to provide this flexibility. Te majority o traditional models oprepayment devices cannot be used or postpayment applications. Even

when they are, there are usually intrinsic limitations. Tus, this flexibilityreduces the cost o these implementations.

Additionally, although some data processing is still done in meters orin-home metering gateways, they are not ully centralized in these devicesanymore. Data processing becomes more centralized in the middleware.Tis is possible because meters are now part o an online environment.Actions such as disconnection due to insufficient energy credits can beordered remotely instead o locally, and the same is true or other innovative

and/or process-intensive actions. I real-time tasks are necessary, themiddleware can count on the in-home metering gateway, its “managementarm” in the field.

Another point is that PAYG services are not necessarily prepaymentservices anymore. Tey are much more flexible. For example, energy andrelated taxes can be paid in advance while other charges, such as fixedones, could be paid later. Tese charges could be paid at the next creditacquisition procedure, taking into account the time passed between the

previous purchase and the new one.Tus, this method destroys some concepts associated with prepaymentsystems, or example, that these payment methods could offerdisadvantages to uel-poor customers because they must pay their energybills in advance. Tese devices are now able to communicate remotely withmiddleware systems at regular intervals and provides or the possibility ointegrating these platorms with other systems and different services likecable V. Initially, you could imagine these companies would never havea relationship with energy utilities, although now, subject to contractualarrangements, smart metering systems could be used to collect chargesor these services. Tese charges could be collected in advance or afer use,in order to help customers with their budgets. Among other benefits, thiscould avoid the creation o debt to these service providers or the costs o




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implementing complex customized systems. Depending on the agreements,energy companies could receive ees per transaction or other gains. Tesecompanies could legally trade this service with the partial use o the cable

media band to enable communication or smart metering devices. A virtual V channel could also be assigned to energy suppliers to be usedas customer displays and provide consumers with inormation about theirenergy consumption and several other services via a simple touch on theirV remote control. Messages and alerts, when required, could also bedisplayed on the television and allow local action or acknowledgment. Tiswas just an example o many other win-win partnerships that could beestablished via PAYG arrangements. Note that they must respect financialrules and other legal requirements like the ones related to taxation oservices and proper invoice arrangements among partners.

PAYG systems offer even more flexibilities such as when combinedwith advanced rate structures and load management. ime-o-usearrangements can be associated with this payment method. Tus, creditwould be decremented under different rates depending on the energy priceactive at the period the consumption occurs. In terms o load management,prepayment systems usually offer this unctionality via a power limitationunction, but even i it is able to enable some opportunities, it can be

criticized or the inconvenient way it is provided to consumers. Forexample, it can interrupt the supply o energy to customers or temporaryperiods when power limits are exceeded. With smart metering systems,demand-side management can be provided with PAYG and offer even moreopportunities than when in credit mode. Subject to legal requirements,these could be reverted to energy credit bonuses to be used by consumers.Another option is the accumulation o points with marketing promotions.Accumulated points could be used with partnership networks with

supermarkets, appliance stores, airlines, hotels, and other businesses.Similar unctions could be enabled with micro-generation incentives.Te smart meter could measure the energy exported to the electricitygrid, while the total energy created by the customer would be measured via submeters. Tese devices could be connected to the metering gatewaythrough the HAN.

Dual-uel arrangements are another area o opportunity. Generally,debit customers, when supplied by both gas and electricity, have two

different meters and related registers. Tis is hard to manage or bothcustomers and utilities. For saety reasons, it is unlikely that both meterswill be physically integrated, but they can be logically integrated toacilitate a consumer’s needs. For example, a common energy credit could




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be provided integrating both electricity and gas. Tis energy credit couldbe distributed online between these single uels or separately managedi desired by consumers. In the second case, even i separately managed,

the customer could be provided with a virtual combined view. When themanagement o the energy credit is ully integrated, customer displayswould continue to show inormation related to the individual uels so thatcustomers could react to uel-specific energy efficiency targets. Automaticadvice could ollow in the same way.

Payment channels are also even more flexible. Display interaces couldbe used to enable energy credit payment and also payments or nonenergyservices on behal o potential partners like insurance companies, waterutilities, and other enterprises.

Smart meter arrangements with PAYG enable even more flexibilityin terms o rate profiles, associated devices, and many other points. Forexample, subject to local metrological rules, smart plugs with built-inmeasurement and switch capabilities could be additional applicationsor smart meters. Tey would enable similar rate discounts per electricalsocket, depending on the load connected to them and the time they areused. O course, due to all the flexibility these systems can offer, the numbero rate-related opportunities is innumerable.

In summary, clearly prepayment and PAYG are two very differentservices. PAYG incorporates prepayment and is only enabled via smartmetering platorms. It combines the best unctions o debit and creditmodes with different energy products to create new opportunities orcustomers and utilities.

Advanced rates

Different rate structures can be created in smart metering systems,bringing together customer needs and energy prices. Both parameters canbe combined by energy utilities with energy costs and uel availability ordifferent periods o the day. Tese rates can also be combined with bonusesand discounts. Tey are not restricted to a specific arrangement, so they canapply to many rate profiles i desirable and legally authorized. In general,they can be managed by billing engines and apply to any one o the existingstructures we discuss next. In a similar way, multiuel arrangements can

also apply to the large majority o rate structures. Let’s now discuss someo them.

Time-of-use rates. Tis structure is commonly used around the worldto bill large, medium, and small businesses. Te trends indicate that all




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customers, including residential, will be charged using these structuressooner or later. Electronic meters and registers have made this possibleor quite some time, and in some countries they have been adopted orresidential customers. Different prices are associated with different timesin this rate structure (fig. 3–13). For illustration, three peak times could beestablished during the day. Nonworking days and holidays could be treatedas off-peak periods. Te three peak periods could have single or differentprices and a different price or off-peak. In this case, or metrologicalpurposes, one individual register must be dedicated per rate. o offer evenmore flexibility, the holidays and weekends could be rated differently romthe off-peak periods during the week. Middle-peak rates could also applyin a similar way to provide even more flexibility.

Fig. 3–13. An example of simple time-of-use arrangement

Clock settings are vital accuracy requirements or hourly seasonalrates because charge rates are associated with time. Adjusting clocks orthese meters has been a nightmare or energy utilities that employ thetraditional electronic meter with a built-in clock. In this case, techniciansmust regularly set these parameters in the field and or special events suchas daylight saving time changes. Tese interventions are very expensive.Some other utilities have opted or using meters without internalclocks. Ripple control or RF broadcast system are normally used to send

commands during predefined intervals throughout the day to switchregisters and the associated rates in meters. Even i this method does notrequire interventions in the field or clock-setting purposes, it still createsmuch inconvenience to utilities such as the costs to maintain these servicesin operation and technology limitations on the number o commands




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utilities can send to the meters and the respective rate arrangementsthat can be used. With these technologies, clock synchronization cannow be remotely set with smart metering systems. Tus, smart metering

platorms enable these rate arrangements more naturally and easily or allthe involved parties. It is possible to interact with customers because ooptimizations through two-way communication, remote upgrades, andinnovative methods.

Fixed charges, like maximum demand customer allowance, can bemanaged by these profiles. Different taxes can apply to these chargesand to energy consumption and be related to municipal, state, and othercollection entities. Because o the level o complexity, these rates areofen managed by billing systems in the corporate I environment, andtraditional meters do not usually provide customers with the details theyneed on these rates. Local management carried out by meters generallyrequires requent reconciliation with these systems, which is difficult toensure without online interactions. Tis can be more easily carried outwhen using smart metering platorms.

Tese structures can be set or seasonal pricing, as rate levels are directlytied to generation costs, which can be affected by seasonal conditions. Tedifferent rain levels that occur in dry and humid periods, or example,

directly affect hydroelectric power stations. Tese time periods then relateto different rates.

As mentioned, sometimes the demand achieves critical levels innetworks. In order to help utilities ace these challenges, time-o-use ratescan be associated with these emergency periods. Price-signal events areassociated with different periods o the year and different times o theday. Tese seasonal periods can be assigned colors or other graphicalormats and be posted online using the display channels offered by smart

metering systems such as wall panels, e-mail, I messenger tools, webwidgets, multimedia message service (MMS), and short message service(SMS). Consumers usually receive rate plan documentation that explainsthese periods in detail. Consumers are inormed, via rate signals, daysor hours prior to the change o rate. Metering gateways can efficientlymanage devices such as smart plugs and heating systems according to thecurrent rate.

Say a customer has a time-o-use rate, and every day the periods rom

10 a.m. to 12 a.m. and rom 5 p.m. to 8 p.m. are considered to be peak, andthe other times off-peak. In terms o seasons, our colored annual periodscould be defined:




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•From July to August would be the yellow period.

• From December to March:

• Te first hal o the month would be the orange period.

• O the last hal, five days could be chosen to be part o thered period, depending on the utility needs.

• During the other months, the period would be green.

Respectively, the green period would be cheaper than the yellow one.Te orange would be more expensive than the previous one, and the redthe highest price o all. Te red rate signals would be sent according to

critical consumption periods on the network. Tis is necessary to balancethe demand with available energy generation capabilities. Te yellowand orange periods could be or generation cycles or seasonal stations.Customers would receive alerts, eight hours beore events, on their displayunit, web page, and optionally via SMS, MMS, or e-mail. Different colorswould be displayed on these interaces according to the period. Te smartmetering gateway could also be programmed to manage customers’ loadlocally via the external HAN controllers.

Maximum demand allowances can be associated with these rates;thus different values could be allowed depending on the period o theyear. I not respected, they can result in fines paid by consumers thatcan vary according to the period such as peak, off-peak, specific days, orannual seasons.

Several other rate structures are possible, depending on the marketmodels and creativity o energy utilities. Efficient communicationcampaigns, registers, channels, and interaces should be used to avoidmisunderstandings and allow customers and utilities to obtain the

best benefits.

Flash rates. Flash rates are temporarily applied or customers dependingon specific conditions and customer contracts. Tese conditions can varyaccording to idle or on-sale energy on the spot market, network conditions,or contracted packages. Tey are dependent on local laws. For example,consumers could receive a message related to a sale to take place later thatnight. Te discounted rate could be or a six-hour duration during the

off-peak period. Different online display channels could be used or thispurpose. Tis option could be included in the contracts o customers andtheir energy suppliers. It could also be used or some specific periods othe year.




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Large companies are already able to participate directly in energy auctionmarkets in some countries or medium- and long-term arrangements.Based on this, it is reasonable to imagine that, with smart metering systems,

online short-term auction markets could be directly available to mediumand small business and even to residential consumers in the uture. Tesecould be associated with annual, monthly, daily, or even hourly-basedcontracts. For example, a consumer could purchase 1 MWh to be usedduring the ollowing week.

Smart metering platorms play a core role in these innovative offers.Online communication capability and display interaces are essential orthese services to be offered to customers and to improve differentiation incompetitive markets.

Reactive energy based rates. Reactive energy is sometimes a seriousproblem or network management. It requires expensive correction acrossthe grid, such as installation o capacitor banks. For this reason, manyutilities around the world offer rates that associate energy bills or largebusiness with the power actor conditions o their premises. For example,a power actor o 0.92 can be established as the limit o capacitive andinductive energy in the grid. When the fixed limits are exceeded, the

customers must pay a penalty. Tese rates are currently being extended tomedium and small business and sometimes even to residential customersas reactive equipment in these premises becomes more common.

It is common or these consumers to install capacitor banks to enablepower actor correction. Tis equipment can have different values ocapacitance depending on load conditions during a period. Tey can bemanaged by smart metering systems according to online measurementsand contracts.

Green rates. Green rates are becoming commonly available or consumers.Tey are sometimes meant or external renewable generation sources oror local microgeneration. Tus, a renewable source can offer energy tothe market; utilities purchase these packages and make them availableto consumers.

Tis energy is generally offered at higher prices than the traditionalones but with a positive effect on the environment. Renewable generation

sources are also unlikely to offer an efficient financial payback to consumers.It is more a social and environmental responsibility than an improvemento budgetary commitment. Due to these financial aspects, utilities andauthorities can offer different ways o encouraging and supporting these




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Te costs related to these innovative products will be directly orindirectly borne by the customers, so it is important that they provideadded value. Benefits and opportunities must be properly demonstrated

by the utilities, instead o just reerenced. Customization can help inthis process.Te customers are now ree to decide on the product proposition.

Even where a government mandate exists, the customer can decide not tocooperate. Tis can make things difficult or energy utilities and must beavoided i possible. Tus, i all the related work was properly carried outby the utility, the customer would probably realize the associated benefitsand decide in avor o installing this new technology. However, even inthis case, this is only the beginning, as customers will also need continualsupport to achieve their desired result.

Utilities should ensure services, display interaces, and communicationchannels maintain customer privacy. While these methods can be used ormarketing purposes and to send messages to consumers, customer privacymust be respected. Communication should not be used or undesirablee-mails, spam, or telemarketing calls. Tis would potentially irritateconsumers instead o attracting them and ensuring their loyalty.

Some research demonstrates that a large number o customers still do not

realize the opportunities to be gained by smart metering implementations.Tis demonstrates that this challenge must be seriously aced by energyutilities and other market participants involved with these deployments.

Mistakes like bugs and aults, or example, can halt or delay projects andaffect the reputation and image o the utilities. Proper tests and internalpilots must be in place prior to any customer installations. Customersatisaction must be at least reached, but it would be better still i itwas exceeded.

Customers could have additional concerns, even afer agreeing on theproject to be deployed, such as:

• Is the communication medium sae? When RF technologiesare used, special attention should be taken with tests to makesure that the customers suffer no ill effect. Some customerscan have concerns about this, and these concerns must beproperly managed.

• Will I be able to use this system? echnophobia is anothercommon problem. Some customers do not enjoy technologyand do not want to deal with it. User-riendly utility interacescan help consumers ace this challenge.




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• Resistance to innovations. Science and psychology explain ourresistance to everything that is not inside our comort zone.When the challenges are managed and success is achieved, then

technology enters our comort zone and becomes part o ourlie. Otherwise, it can create a barrier that will be even moredifficult to cross in the uture.

• Who pays or it? Tis is another aspect to ace. Customerssometimes see these projects as ways or utilities to increasetheir energy bills. Good communication and transparencyare needed.

• As with many products, smart metering systems are normallyimplemented in layers. For example, the basic product couldbe offered to consumers at no cost. Advanced packages wouldrequire a charge to be paid. But what would customers pay or?Answering this question is essential to build these projects andrelated propositions. Proper research must be made to provideanswers or each piece o environment.

• Should I allow utilities to use my private devices? When an

energy utility uses customers’ broadband Internet modemsto piggyback communications or smart metering devices,it should take even more care. For example, customers couldblame energy companies i their modems are aulty, even i dueto obsolescence o the equipment. Efficient contractual clausesand communication process should be in place.

Finally, i concern and other challenges happen, utilities must be ableto ace them.

Production chain and future-proofing capability

Producing millions o devices is clearly not the same as producingthousands. Tese projects can cause manuacturers to restructure theirproduction chain to meet utility requirements and timescales. Utilitiesmust ensure that solution providers respect proper quality and socialresponsibility procedures and policies. Saety is paramount and quality o

products is usually associated with it. Utilities must equally avoid any kindo inappropriate employment rom their contractors and partners such asbelow minimum wage standards, and so orth. Audits must take place toensure that all the requirements are met and policies ully respected byall parties.




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Apart rom quality, other problems can also affect products installed inthe field over time. Non-uture-prooed specifications are the main causeo these premature replacements. Tis can generate extra costs or the

utilities and possibly destroy business cases. Good design, interoperability,and upgrade capability are essential to ensure an efficient deployment.In-home metering gateways must be able to download and run new

applications and interact with other systems to ensure the uture-proofingo these implementations. Middleware should ollow similarly. Efficientspecification is a critical actor or these projects.

An end-to-end analysis rom the project beginning up to its ull liespan needs to be careully carried out. Te success o projects also dependson this.

Business model

Tere are several reasons why projects do not succeed. One o theminvolves problems with the development o business models.

Sometimes opportunities and benefits are assumed without havingbeen based on proper customized studies. It is unortunately common thatmany projects do not recover investment in a reasonable period. Tis can

happen, or example, because some o their benefits were not ully realized.Ofen the blame alls on excessive optimism and bad benchmarkingexercises. Assumptions taken rom other projects cannot apply rom oneto another, even i they are similar. However, it does not mean that wehave to be pessimistic. Excessive pessimism can prevent good projectsrom getting started. An equilibrium point between both seems the bestapproach. Te message is, excesses must be avoided.

False promises are another common problem. Never promise anything

you cannot deliver, as this can create several problems or the utility in termso project reconciliation and its image. Expectations must be properly set.

Note also that sometimes it is better to stop a project while there is stilltime rather than continuing and generating uture problems or companies.Correctly halting or cancelling a project is not a cowardly action buta responsible one, i carried out or the right reasons. For example, thesmart metering project many not be financially beneficial i deployed as amassive rollout. Sometimes targeted deployments are more advantageous.

Another point is that one project should not be analyzed in isolation. Forexample, a massive smart metering deployment on its own may not be a justifiable investment, but could be i associated with smart grid or billingreplacement projects.




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Further advice: Do not necessarily believe all you hear, or example,when someone would like to sell you a solution. Unortunately, this ofenhappens during benchmarking exercises. Some utilities would preer not

to demonstrate a ailure in their deployments. Reports o benchmarkingexercises require attentive study and reasonable analysis. Te same appliesto in-person demonstrations. Everything must be properly investigated andtested. Other views can also help, such as those o customers, regulators,other solution providers, and other participants. Energy utilities mustexecute their own analysis to make sure that their deliverables are effectivelyachievable. Tey must do this with transparent and realistic analysis.

Legal requirementsNot all products a utility would like to implement can be effectively

deployed. Tis is a reality to be aced. Legal barriers block several services.It does not mean that you should give up, but that proper studies andcooperative action should be carried out beore decisions are made.

Creating and participating with working groups is a common wayto enable cooperation. Active participation o legal specialists rom theproject conception is undamental to identiy risks and issues that can

affect the success o a project. Resistance should be dispelled with acts.Participation in tests and pilots generally assist the project team to gain abetter understanding o the projects and the environment. Remember thatsometimes people resist the unknown. Tey must be provided with goodlevels o inormation in order to make them comortable with the projectsand regulations that have to be established.

Authorities and other market entities need to organize transparentdiscussions around the market model they must adopt. Te chosen model

and smart metering platorm must enable benefits and opportunities orall the market participants. Tus, with this collaboration, the market candeal effectively with these challenges.

Asset ownership is sometimes another challenge. Meters can be ownedby the customers, by the energy supplier, or by the distributor, and this can vary according to country. Each case requires a different approach and canentail a number o specific challenges. For example, i the suppliers own themeters and they are responsible or smart metering systems, it is unlikely

they will use the cable inrastructure with a PLC-based technology in aully competitive market (unless required by authorities). Tis is becausethe energy distributors ofen own the grid and have to provide an equallevel o opportunity to all the suppliers, and rom a technical point o view,it is unlikely that different PLC technologies will run simultaneously in




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the same physical environment. A solution could be that the distributorplays a role with data access. However, this can create other problemslike adding limits or differentiation and competition, legal requirements,

and dependence.Specialized lawyers should be associated with smart metering projectsto ensure that these implementations are carried out according to alllegal requirements.

Collaborators

People with different specializations and interests should activelyparticipate in these projects so that all the branches o a utility can benefit.

A lawyer does not necessarily understand smart metering systems. Tesame can apply to marketing proessionals. All o these people shouldbe provided with at least a basic level o technical inormation aboutthe projects.

As in any automation process, utilities must deal with job securityconcerns. People sometimes believe that they or their colleagues will belaid off when an existing unction like meter reading is eliminated. It isimportant that utilities adopt a transparent policy by properly reassigning

people to new areas like monitoring centers, field marketing, meterinstallation, and saety inspections at customer premises. I necessary tomake job reductions, this must be carried out in a way that minimizestrauma or the employees. Prioritizing reductions, or example, can bebased on already-scheduled retirements. Efficient communication is again vital or this process.

ConclusionInternational benchmarking demonstrates the different needs o

smart metering projects around the world. Te time necessary to buildthese platorms and prepare the environment or this new scenario also varies. Te different participants must actively work on these projects romconception. Customers play an important role in all this, as targets canonly be achieved with their cooperation.

Drivers and opportunities surrounding these projects are innumerable,although they must be properly investigated and evaluated in order to helpthe different parties to extract the best value rom each. Different aspectscan be associated with each; or example, energy costs and prices can be




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potentially reduced, network management improvements are achievable,and demand in terms o energy consumption can be optimized in relationto available offers.

Rates offer opportunities to all participants. Complex structures andprofiles can now be offered to consumers. raditional views have also beenupgraded; or example, a meter is now able to switch rom debit to creditmode, and vice versa. Prepayment services can now become PAYG andenable even more opportunities.

International experience shows that these projects are likely to succeed,but this depends on the way they are designed, implemented, and updatedduring the lie span o their components.

As with any other project, challenges must be aced. Systems mustbe uture-prooed to enable business case assumptions to be effectivelyachieved, or example, in relation to lie span in the field. Risks should beproperly identified, mitigated, and monitored.

Te next chapter discusses some actions utilities can take whiledeveloping solutions to reduce some o the risks and achieve successwith deployments.



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4Building the Technical Solution

The previous chapters discussed the need to reduce the risks osmart metering projects. Tese risks are mainly about the challenge

o defining a technical solution. While the technical team is usuallyresponsible or this part o the project, they should not work in isolation.Ensuring the strategic objectives o the company are met or the specifiedproduct requires the cooperation o other areas o the business. All teamsreport to the overall project leader and are all subject to company rulesand methodologies. Tus, other tasks may be executed in parallel with the

technical ones. Different workgroups are ofen created to deal with specificproject management topics, such as defining strategies or marketing,finance, legal, communications, and regulation. Tis chapter is dedicatedto the different aspects o building a technical solution, because o its corerole (fig. 4–1). A bad choice at this stage could affect the strategy o thecompany and the benefits to be achieved.




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Fig. 4–1. Building a technical solution—stages diagram

Gathering RequirementsBeore defining the technical architecture, we must understand

the requirements o the company and transorm business needs into

specifications. Te technical team is essential or achieving this objective.It is generally composed o proessionals rom different areas o thebusiness, such as research and development specialists (social, metering,I, standards, generation, energy efficiency, and several other areas), fieldoperations, corporate I, and business specialists rom different branches.Te members o this team need a technical background as well as theability to listen to the clients o the project. Tis is very important becausethe technical specifications must reflect the requirements o the business.Unortunately, this is not always the case. Sometimes these teams try toimpose predefined solutions available in the market, not necessarilycompatible with the needs o the utilities. As we are dealing with a newenvironment, existing products may not deliver the differentiation levelsrequired by companies to survive in a competitive market. A bad choice



Chapter 4 Building the Technical Solution

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can limit the opportunities or the project. Tat is why specialists romdifferent branches must be present and participate to provide the liaisonwith their own businesses and needs.

Te process o gathering requirements is composed o different stages: • Collect ideas rom brainstorming sessions.

• ransorm them into initial business requirements.

• Conduct requirements analysis.

• Refine them with others rom internationalbenchmarking exercises.

• Define application scenarios and products. • Map and model business processes.

• Perorm data traffic analysis.

• Manage documentation.

All o the assumptions and associated risks should be regularly loggedduring the entire project rom its conception. Te project team should

conduct financial analyses o the risks and develop mitigation plans toaddress any problems that might occur.

Brainstorming exercise

During this first process o gathering requirements, a undamental toolis brainstorming (fig. 4–2). As the name suggests, experts rom differentareas o the business gather ideas collectively. Tis exercise collectsimportant requirements or the project and motivates people, but it mayproduce a negative result i badly managed. For example, i someone’s ideaswere exposed to public criticism, this could end the person’s motivation toparticipate or have worse consequences. Tereore, it is crucial that theexercises be led by proessionals with extensive experience. Tat is whyspecialized consultants are ofen engaged or this purpose.

Brainstorming exercises involve people both within and outside thecompany. Several sessions are ofen necessary, and when these exercisesinvolve customers, they should be separate rom those attended by

corporate and internal specialists.




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Fig. 4–2. Brainstorming exercise diagram

Te ollowing are some simple recommendations:

• Objectives. Te goals must be ully defined to avoidnonproductive discussions.

• Environment. It is advisable to use an neutral location,preerably outside o the company premises.

• ime. Long exercises exhaust people and do not producegood results.

• No censoring or hierarchies. Everyone needs to be able to

express their ideas with reedom. Tere are no ridiculous ideasand no bosses during these sessions.

• Organization. Everyone talking at the same time does notproduce effective results.

• ake notes. All ideas must be ully explored and recorded.

Once collected, these ideas should be transormed into requirements.Te team should group them, eliminate duplications and unachievabletargets, and provide strategic analysis. Tis filtering process should beindividually executed per requirement. Different aspects should betaken into account such as saety, finances, technology, uture-proofing,and risk analysis. External views are also welcome; requirements rom




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benchmarking exercises may be used to complete and refine the list. Teresult o this overall process will produce the initial draf o the businessrequirements. All the branches must then review and approve this

document so it can used as guidance or the project. Note that these arenot the technical requirements yet; they are intended to reflect the visionand the needs o the business.

Mapping processes

Te processes involved in smart metering projects should be ullyidentified and mapped. Te requirements gathered should be taken intoaccount during this exercise. It is common or these projects to produce

modifications in the way utilities execute some tasks. Te processes shouldbe mapped, taking into account the way the tasks are currently executedand the necessary changes. External entities and relationships must alsobe considered.

Several methodologies can be used. Unified Modeling Language(UML) is a commonly used method. It is a graphical method or modelingprocesses and data treatment. Beyond being an efficient technical tool,UML produces user-riendly documentation, such as sequence diagrams,

use cases, and actor maps. Because multidisciplinary teams make upsmart metering projects, the use o UML is strongly recommended; at aminimum it should be used as a basis or the process modeling.

Use cases are employed or mapping processes. Tey group different,detailed processes that together define system behavior. Use cases mayinteract with each other or different purposes. Tus, they may be groupedas part o application scenarios (fig. 4–3). For example, a data collectionuse case may be used simultaneously or different applications such as

displaying online load profile via web interace, conducting nontechnicallosses analysis, and perorming load simulations. Tus, applicationscenarios essentially reflect utility operational unctions or products andservices to be offered to consumers.

During this stage, new requirements can be identified and must bepromptly gathered. Te gathering exercise should be continuous duringthe project.




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Fig. 4–3. An example of application scenarios

Application scenarios as well as their associated use cases and processesshould now be transormed to data tasks and data transer processes. Tisis essential to define some aspects such as communication media, topology,and processing distribution, as well as to develop service level agreements(SLAs). All processes related to data flows should be identified (fig. 4–4)and analyzed (fig. 4–5). Several related aspects should be documented:

• Data package attributes (e.g., task ID, meter number, date andtime, and targeted parameter)

• Data package size in bytes

• Frequency o transactions (e.g., daily, monthly)

• Direction o traffic (e.g., upload or download)

• Origin and target o task (e.g., origin: middleware, target:

gas meter)

• Priorities and SLAs

• Data profile (e.g., predominantly peak or off-peak timeo communication or WAN)

Afer being identified and mapped, a data traffic study should be doneto analyze several technical I aspects, such as data storage, net datatraffic needs, negotiation o eventual communication costs or WAN, andpotential idle traffic to be negotiated in uture with partners, i desired.Tis can also be used to refine and update the previous analysis.




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Fig. 4–4. A data traffic map

Fig. 4–5. Graphical data traffic analysis

All this detailed inormation should be documented; classifiedaccording to priorities and probability; and reanalyzed under financial,legal, saety, and other applicable criteria. Afer being reviewed by all thebusinesses, new versions o the requirements, strategic views, and productpropositions should be created. Tey are essential or the next step:transorming the company needs into technical specifications.




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Defining SpecificationsNow it is time to refine these requirements according to technical aspects

and easibility criteria. Efficient analysis is essential at this stage because,unortunately, some products are not technically easible. Tis can be dueto several aspects such as saety recommendations and metrological rules.

Te defined specifications will orm the basis or building the appropriatetechnical architecture or the project. It is important to cross-reerence thespecs against existing standards and norms to identiy synergies or newrequirements, such as saety, metrology, data security, data exchange,and communications.

All the studies’ criteria and analysis must be specified, includingtopologies; comparison o communication options or WAN, LAN (localarea network), and HAN (home area network) unctions; and distributedprocessing in the different components o the metering system.

Another point to be careully determined is data security. For example,data flows should be classified as confidential, financial, private, restricted,etc. Interoperability and integration aspects should be defined, taking intoaccount the strategic objectives o the company.

All o the initial analyses should be reviewed and updated withparameters obtained rom the technical choices. For example, the netdata traffic previously defined will be associated with protocol overheads,acknowledgment messages, repetition profiles, maintenance andsupervisory controls, and data exchange ormats. Te business case shouldbe revisited and updated with any relevant inormation.

Tis is an important period to start the validation process o all theassumptions. For example, all the assumptions related to the technicalarchitecture must be proven. o meet this requirement, appropriate

tools must be in place such as laboratory installations and I simulatorsand emulators.

Building simulators and emulators

During the process o building technical specifications, it is importantto define criteria to compare the different technical options in terms ocommunications, I, and architectural designs. Simulators are interesting

applications to ulfill this need. Tey are usually I applications designedto analyze scenarios that could happen in reality but are unlikely to bephysically reproduced in a production environment. For example, anexception like the ailure o package deliveries is a process that could be




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simulated. A communication problem could reeze a server or an in-homemetering gateway due to the volume o accumulated tasks to be processedat the same time. Questions or other scenarios to be simulated include

the ollowing: • What would be the impact o a general blackout i all the

electricity meters generated outage alarms at the same time?

• How much data will need to be stored in the smart meteringsystem over 20 years? How will the data storage be managed?

• What is the impact in terms o I and communications i adecision is made to collect energy profile data rom millions o

meters every 10 minutes instead o once a day? • In terms o distribution o processing, memory, and tasks over

the smart metering system (e.g., servers, gateways, and meters),what is the most appropriate architecture or the type o servicesthe utility would like to offer?

Simulation tools are also used or technical evaluation processes in orderto compare propositions rom different solution providers in relation to

required levels o SLAs, data traffic, processing, real-time tasks, and manyother eatures. When customized products are developed, manuacturersand solution providers use simulation tools to execute validations andcorrections during the design process or hardware and sofware.

Many simulators are currently available in the market. Tey are ableto execute simulations or network, communications, and other purposes.Examples o these tools are QualNet and Jade. raditional programminglanguages such as Java-based platorms could also be used to developpersonalized simulators or specific needs.

Emulators are other interesting tools or comparison. Tey arecombinations o hardware and I applications that can reproduce commonsituations in the field and are used to compare different solutions in anenvironment close to reality. Tey can be used to reproduce global scenarioscombining physical samples and I systems using statistical principles. Forexample, the network perormance associated with sending load profiledata rom 100 meters to an I system could be simulated with a sample o just 10 meters (fig. 4–6), related sofware, and laboratory emulators such as

impedance and noise generators.




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All o these tools are undamental or smart metering evaluations.Scenarios could be simulated and then emulated in order to identiy andavoid problems that would be reproduced in the field. Te findings rom

these procedures can result in changes o architectural designs, review oI inrastructure, and redefinition o I management methods.

Laboratory tests

Beyond simulation and emulation tools, a modern and efficientlaboratory is crucial or urther testing. All solutions must be ully testedin a lab environment prior to installation in the field, even or small pilotprograms. Tere are many aspects to be analyzed physically and logically

in the solutions like saety and metrological tests, data security, andcommunication robustness evaluation.

Laboratories must be well maintained and certified by the relevantauthorities. Proessionals must be continuously trained. Metrologicalcalibration, I test sets, and other equipment must be properly managed.Labs must also be regularly upgraded in order to produce optimal results.

For smart metering projects, ull environments should be provided inorder to test all the different components, or example:

• Devices such as meters, customer display units, and gateways

• Communication evaluations (e.g., robustness to intererence)

• Protocol analysis

• I analysis tools (e.g., or data security and datamanagement analysis)

• Interoperability and integration tests

Once the system is ully deployed, it must also be continuously evaluated.For example, samples rom different meter amilies should be periodicallyremoved rom the field or metrological, saety, and other testing purposes(fig. 4–7).

Samples should be taken rom the equipment purchased or laboratoryevaluation prior to installation in the field. Tis is necessary or differentreasons. For example, manuacturers could change electronic components

inside the devices without previous consultation and evaluation by theutility company. One o the common drivers is reduction o productioncosts. Simple changes can have significant impacts on products, includingtheir saety. Utilities must be attentive. Tus, laboratory premises andqualified proessionals are vital or the success o smart metering projects.




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• Preproduction: Tese urther investigations are normallyexecuted or solutions chosen during procurement processes.Tey ofen incorporate changes rom the previous versions and

allow an evaluation procedure to be done under all conditions,including nontechnical ones.

• Production series: Tese are the final approved solutions.Additional tests are necessary to ensure that customizationrequested during the preproduction evaluation has beenincorporated and that the required levels o quality are ully metby the industrialized sets o devices.

Fig. 4–8. An evaluation sequence

As observed, it is essential that tests be consecutively carried out to ensure

that high-quality products that comply with specifications are deployed inthe field. In terms o sofware, the procedure should be similarly executed.Databases are virtually populated, and events, like communication ailuresand outages, are generated to simulate daily operations and exception cases.

In both hardware and sofware cases, ull test specifications must beefficiently prepared in order to understand all possible exceptions orsmart metering systems beore a rollout. Tus, they are used to ensure thatthe system is ready to be deployed.

Hardware

Beyond metrological components, other aspects, such as load switches, valves, and communication devices are needed. Because o these new




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eatures, a series o tests needs to be planned. Standards should be updatedto conorm to this new environment and to the related legal and regulatoryconsiderations.

A ull range o tests should be provided or smart metering systems andtheir individual components (fig. 4–9). Here are some examples:

• Functional tests should be conducted at this stage, in whichthe main unctions o equipment are verified according tospecifications. Teir behaviors within normal and abnormalenvironments are evaluated such as sel-consumption profiles,starting current, switch operations, terminal screws resistance,modem operations, acknowledgments, rates, parameterizations,

sel-diagnostics, messages, alarms, and exceptions. • Electromagnetic compatibility testing to evaluate impacts

provoked by natural phenomenon or normal field conditionslike lightning and radio-electric disturbance.

• Electrical influences testing related to the electrical environmentlike overvoltage, overcurrent, impact o network aults, externaland internal short-circuits in the meter, and intererencesnaturally generated by the operation o medium-voltageswitches on the network.

• Isolation tests to analyze different isolation levels in themeter such as between different phase terminals, local wiredcommunication and phase connections, meter rames andterminals, and access to live parts o terminals.

Fig. 4–9. A test diagram




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• Field proofing tests o meters in the environment, which presentschallenges depending on where meters are installed. Examplesare humidity levels, heat and cold, ultraviolet effects, vibration,

shaking, rain effects, and mechanical impacts. • Resistance to heat and fire is tested, covering criteria such as

sel-extinguishment, flammability, and toxicity conditions.

• Environmental saety o components and materials is essential.Products such as batteries and electronic components should beless hazardous to the environment.

• Metrological accuracy tests are done under different

environmental and electrical conditions, such as different levelso current, temperature, and humidity.

• Data treatment and memory are crucial or smart meters. Meterresets could be triggered, or example, to simulate the use o noiseor electromagnetic-field-generation devices by ill-intentionedpeople. I registers are restarted, the meters could be vulnerableto nontechnical losses. In this case, the readings would return tothe values registered during the last integration process. Tus,

i they are registered once a day, up to 24 hours o consumptioncould be lost. It would then be preerable to use meters that areable to register these values in small windows, every minute, orexample, and resistant to tamper. Data security is paramount, asalready mentioned. Local data management is also essential toensure security. Embedded gateway unctions increase this needeven more. Full tests should be done.

• Switch-specific devices entail specific tests. For example, it isnecessary to ensure that the number o switch operations arecompatible with meter lie. Coordination with circuit breakers isalso essential to ensure efficient saety unctions. Short-circuit,overcurrent, and differential protections must be provided bycircuit breakers without any intererence by switch operations.Another point is customer acknowledgment or reconnectionevents. Except or outage events, it is unadvisable to reconnectthe home without consumer awareness (acknowledgment).

• Auxiliary low-power circuits are sometimes present, as whenmeters use low-power contacts to control consumer load. Itis thus important that these circuits have the required level o




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anomaly is via customer eedback or when technicians visit consumers’homes.

Fig. 4–10. An example of display failure

Many methods are employed to avoid this. A simple but efficient wayis turning off LCDs when they are not in use. Assuming that customers

interact with their meters only a ew times a day, LCDs could be turnedoff more than 98% o the time in a sleep cycle, which could improve LCDlie radically. Sel-diagnosis could also be used to identiy when displayproblems occur.

It is important to carry out aging tests. Component tests must be done toavoid premature meter replacements in the field, and preventive solutionsmust be planned. Methods are continuously improved to identiy urther vulnerable points to be treated and to improve meter lie. Tis criterionsignificantly affects business case analysis. A simple improvement rom 15to 20 years on the lie span o devices can make the difference between lossand profit.

Production chain. Beyond tests in utility laboratories, inspections omanuacturers’ sites contribute to assuring quality o production. Audits atthese sites are advisable in order to anticipate problems and identiy risks.Random samples should be taken directly rom the production line ortesting procedures. Several criteria could be used during this evaluation

process. Repeatability, or example, measures the quality o manuacturingor metering systems (fig. 4–11). Let us assume a meter specification thatrequires an accuracy class on the order o 2%. Assuming that 10 metersare taken rom the production line and the percentage o errors is around




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–1%, with variation ranging only rom –0.9% to –1%, it can be assumedthat these devices have almost the same behavior. However, a range o +1%to –1%, indicates that something could be wrong with the manuacturing

process. Tus, at least a quality inspection would be recommended.Another concern is interchangeable parts. Tere are many componentsthat should produce the same behavior i a meter is replaced by anothero the same model, such as load switches, terminal arrangements, andsome electronic boards. I you cannot exchange them between a sample ometers, this could be a signal o poor quality and should be investigated.

Audits in situ are essential to avoid rejection o entire lots o devicesand recall procedures afer they have been delivered. Tus, identiyingproblems in the production lines can save costs or the different participantsin smart metering projects, both or utilities and manuacturers. For thisreason, these audits should not be seen as a negative point o view ormanuacturers but as opportunities to avoid unnecessary costs such asshipping and rebuilding products.

Fig. 4–11. A repeatability analysis helps measure the quality of manufacturing

for metering systems.




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Communications

Most o procedures we have discussed or testing smart meters alsoapply to communications, although extra tests are required. As discussed,

selecting communication media is not an easy task. A bad choice canrestrict the services an energy utility could provide to its customersand opportunities or smart metering deployments. Tus, ully testingcommunication media is essential. Te environment where these tests areexecuted and the inrastructure used or this purpose are also undamental.

Each medium has its own specialties, and its evaluation processshould take that into account. For example, with radio requency (RF)communication, line o sight is a common reerence to determine

communication range. However, it does not take into account dailyoperational aspects such as reflection and absorption. A test usingidentical devices could produce different results i executed in differentenvironments, such as near a river or in an open field. Tus, althoughthis parameter is useul, it is unlikely to be used in isolation or mediacomparison purposes. Realistic field tests or emulations must be used.

With power line carrier (PLC), the situation is similar. Manuacturingspecifications ofen say that PLC is able to communicate over ranges o

miles without using repeaters. However, do these data really mean anythingin isolation? In terms o real utilization, it is necessary to associate, orexample, inormation related to impedance on the grid and attenuationo specific environments o an energy utility. Depending on these values,miles can easily become only tens o yards.

Another medium option is mobile communications. Coverage is usuallythe key point or selling these services (fig. 4–12). elecom companiesofen claim great coverage levels over utility territories, although they

usually reer to mobile phones. It is important to understand that mobileand fixed devices have different eatures and behaviors. For example,how many times have you tried to make a call rom below a stairway orwithin a metal enclosure? In some countries, meters are ofen located insuch places. I you cannot talk in the kitchen using your phone, you willprobably move yoursel to the living room i you know there will be bettersignal penetration. Meters are unlikely to be relocated or this purpose,and even so, as signal penetration can change over time due to differentactors, several replacements would be required.

All other communication media have similar problems. Tus usinglaboratory testing is essential to assure compliance with norms andstandards and to provide required simulations and emulation o differentsituations that could be ound in the field. For example, different sources




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o disturbance should be generated in order to evaluate the behavior o thesolution under intererence. O course, health-related tests must also berun to ensure that there will be no effect on humans.

Finally, testing communications media requires experience, theappropriate technology, and a high level o attention in order to applyrelevant criteria.

Fig. 4–12. Mobile coverage within a home can have blind spots.

Systems

Different I systems are used to support smart metering platormslike operating systems and applications or in-home metering gateways,firmware or devices, and modular sofware and agents or middleware.Based on this, in order to deal with this technological world, a testenvironment is essential or certiying versions beore their effective use

(fig. 4–13). In addition to the usual tests executed by solution providers andprogram developers, simulation and emulation tools should be developedor test purposes, as previously discussed. Scenarios composed o a largenumber o rules should be created to analyze all the unctions, behaviors,parameters, and exceptions or every version o purchased products. In




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this way, it is possible to confirm that no regressive or collateral effects weregenerated rom one version to another.

est scenarios are also necessary because the main opportunities

generated by smart metering systems are or new applications such as rates,display inormation, and integrations. Downloading a new application toa large number o in-home metering gateways without ull test procedurescould cause many uture problems or utilities, including damage to thecompany’s reputation and increased costs or support and maintenance.Significant costs can apply due to the increased number o visits in the fieldto reset units i conflicts cannot be managed remotely.

Smart metering systems are essentially composed o logical components,and they must be adequately tested. I the company has no specialists todeal with these components, it will need to hire or contract with outsideproessionals. Alternatively, the scope o the project would have to bereduced to a simpler environment, although this would compromise theopportunities related to these platorms.

Fig. 4–13. The process of new application deployment is created in a test environment.




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Pilot ProgramsField pilot programs are usually the step that immediately ollows

laboratory tests. Tey are essential to any massive installation in customerpremises. Among their advantages, they can gauge the reaction oconsumers to new technologies. Sometimes, a technology suitable orengineers and marketing specialists is not necessarily adapted to customerneeds. Tus, this step is a listening opportunity. Feedback provided bycustomers is essential to refine smart metering products and to producesolution corrections to designs and specifications.

Tere are also opportunities to evaluate the challenges or deployments

in relation to installation, maintenance, and daily operations. Assumptionsshould be confirmed and extra recommendations produced to improvefield operations.

Initial technical eedback o experiences and benefit-realizationexercises are ofen made at this stage to confirm assumptions about thesedeployments. Cost estimations and risk logs should now be reviewed, aswell as lists o opportunities.

More than just a learning exercise or all the different participants,it is a key moment o decision or the project. Pilot programs can haltimplementations because o poor business model reviews, but can alsoidentiy new opportunities not previously seen. Te next sections studythese opportunities.

Technical architecture

In addition to opportunities or defining the best products to be offeredand ways to interact with customers, pilots are also an opportunity to

challenge the technical architecture o a project.It is recommended that all the potential communication technologies

or WAN, LAN, and HAN be tested in the field. Results o tests in the fieldcan differ rom those executed in a laboratory environment. Tus, trialsshould be provided to ensure that practical and theoretical analyses arealigned (fig. 4–14). For example, a material can have different absorptioneatures or RF waves, depending on its age and condition. A wet orhumid wall produces a different effect or RF emissions than a dry one.

Sometimes, it is not possible or energy utilities to simulate and emulateall the field possibilities in the laboratory, due to cost effectiveness andeasibility. Natural phenomena are very hard to reproduce in a lab. Rainand snow events can significantly affect RF transmissions and can ofenonly be ully evaluated in pilots in the field.




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Fig. 4–14. A diagram illustrating environmental analysis during field trials

It is thereore important that all situation changes and effects be recordedduring these tests. While smart metering devices were once commonly

used as the only measurement devices in these evaluation processes, thismethod has proven to be ineffective. Several other devices should beused to ully map the field environment where these tests are carried out.Conditions in the natural environment cannot be controlled or as in alaboratory. emperature and humidity cannot be controlled in the field.Any occurrences such as variation in weather conditions, network quality,seismic events, network reconfigurations, and physical damage caused byevents like vehicle collisions with electricity cable boxes or posts should

be monitored in detail, at least or an initial period. Tese data should becross-reerenced with smart metering data to identiy any collateral effectsthey can produce.

Te number o devices used during a trial is also important to produceuseul orecasts, which should be defined through statistical criteria. An




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expert in this area should participate in designing the field trials. Forexample, a test o a dozen meter points is unlikely to statistically representone million customers. Te quantity should be at least enough to produce

the corporate changes required or this new technology, enable a ullreview o business case assumptions, and engage the organization romthe start o the project.

A unctional test is also essential. Even i some unctions are notnaturally reproduced, they should be tested to emulate an occurrence.Remote connection and disconnection, or example, cannot be reproducednaturally or a customer segment. Legal arrangements should be in placewith customers to enable all the unctions to be ully reproduced in thefield, with as many exceptions as possible. Planned, brie communicationailures could be reproduced to confirm simulation and emulationassumptions. It is better to produce these events at this stage than to dealwith these problems later with millions o consumers. Some companiesuse their own sites in these pilots, because o legal and ethical concerns, toavoid conducting emulations in customers’ premises.

Finally, no architecture should be defined without ull tests in the field.ests are the only accurate way o confirming assumptions and technologypromises and to emulate the corporate changes required or the deployment

o these projects.

Reaction to products

Different opportunities are afforded by smart metering systems. Temajority are or new products and services offered in a specific market.Demand-side management is an example o an innovative service. It is a very important tool to achieve energy efficiency targets, but it needs to

be ully defined according to consumer and utility needs. Affects on thecomort o customers should be minimized, so, it is very important tolearn lessons rom pilot programs that will contribute to improvement.

While solutions must be flexible, providing too many options canconuse rather than help customers. Pilot programs are a good opportunityto group them in efficiently targeted options. As it is a learning exercise, atleast in the beginning, regular exchanges with customers are encouragedto ensure that energy consumption behavior is changing. For example,

customers might decide that standby loads should be switched on everyday at 6:30 a.m., but then realize that on weekends this time should be 8:30a.m. Tey could also experience difficulty reconnecting the device whentheir schedules require a change rom the regular programmed time. Inaddition, they may need to either raise or lower the thermostat setting.




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Customers may need advice about new rates. Color codes associatedwith rates may be conusing at first. I a rate is or demand-side managementoffers, customers may require advice rom energy utilities regarding

priorities or their different loads and or power limitation purposes duringpeak hours.Generally, once the initial settings are made, everything tends to be

easier, automatically managed, and transparent to customers. However,due to problems during initial settings, customers can resist using thesetechnologies. It is then vital that energy utility staff be available orconsumers during this period. Attentive listening and prompt correction are very important. Feedback with no correction or ull answer can discouragepeople rom actively participating in the process. Efficient communicationis undamental now. Consumers must trust this new technology and theenergy utilities, and realize that together both consumers and utilities canachieve their targets. However, achieving this level o confidence requireshard work, dedication, and patience.

On the utility side, it is also important to reduce risks in business models.Among other advantages, smart metering platorms enable utilities to offeraggressive energy-efficiency propositions or their consumers (fig. 4–15).Sometimes these products create risk in contracts. Tey are offered to

residential customers but also to medium and large businesses. Tus, thefinancial risk varies widely. For example, some energy utilities currentlyoffer to finance the deployment o specific energy-efficiency solutionswithout any starting cost or their customers. o understand this option, acase study ollows.

Assuming a supermarket chain would like this service, the utility couldsend energy-efficiency specialists to their premises. Te utility careullystudies the supermarket chain’s installations, consumption habits, and

other parameters to decide the best offer to propose. Te utility can alsoinstall advanced submetering devices and devices that measure energyquality to make a detailed analyses o consumption per subsegment (e.g.,bakery, offices). At the end o the process, business case studies would beprepared to study different energy-efficiency options. At this point, thecustomer could be offered a price reduction o $400,000 or the next yearbased on current consumption levels. All the required equipment to enablethese savings would be installed on a turnkey basis at no initial expense to

the customer. An annual payment o $250,000 would be required at theend o year one, but only i the target savings was achieved at this point.

Similar services can also be proposed to residential customers viaintelligent algorithms and tools, analyzing the data generated by smartmeters compared against other external databases.




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Fig. 4–15. Aggressive energy-efficiency proposals

Te opportunities or these proposals are very interesting, not onlyfinancially but also in terms o reputation, marketing, building the trusto customers, and other indirect aspects. However, the risks are quite high.Tus, companies should be sure about their ability to achieve results beoreproposing these services. Pilot programs are essential to test, develop, andmature proposals. Products could even be offered or ree as a way to testassumptions and methodologies.

Communication channels

Communicating with customers is a core requirement o smart meteringprojects. I the customers interact directly or indirectly with the utilitythrough a given channel, communications must be defined according totheir needs. Pilot programs are good opportunities to test concepts.

Payment methods. For services like pay as you go (PAYG), it is importantto ensure that customers have the most efficient payment options. Tereare many technological alternatives or consumers to make payments.

Tey can be as high-tech as using short message service (SMS) media orthis purpose or traditional methods where cash or credit transactions takeplace in pay points such as partners’ stores. Hybrid options could be testedduring this period.




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Due to cost, ofen an automatic and electronic method is preerredor energy utilities rather than local payment with cash. Reduction osecurity and financial management costs are generally strong reasons,

among others. Not only should business model analysis be considered, butalso consumer demand. Some people are not still confident with moderntechnology. For others, such as those on fixed incomes or people whonormally receive their payments in cash and do not have a bank account,payment in cash is the only choice. Tereore, the implementation oautomatic support technologies is necessary, but different customer needsmust be taken into account.

It is common to ocus attention on the payment interaction itsel andorget about other media. In addition to the payment method, there isanother important communication channel—the receipt. It is sometimestreated as just a piece o paper, but it is a core report that can help avoidunnecessary costs. A large share o call center contacts is caused bymisunderstandings, ofen about complex and low-value billing reports.Tus, receipts must be careully designed to provide all inormation in auser-riendly and understandable manner. Tis is even more importantwhen receipts are used to demonstrate other transactions, including thepayments o debts and non-energy-related services. Tus, different receipt

ormat options should be part o the pilot program’s scope.

Display interfaces. Tere are many display options available, and somecan be more suitable or particular consumers than others. For example,students may preer to use mobile SMS, while stay-at-home parents mightpreer in-home display panels or televisions. Pilot programs are goodopportunities to test such assumptions.

Different technologies should be available or customers in the same

market segment to test assumptions. Utilities should also try to use existingdevices such as televisions as customer display units to avoid unnecessaryconsumption rom customized devices. However, i utility-customizeddisplay panels are identified as essential during these pilots, these panelsshould not add new power consumption to the homes, or they should usethe lowest possible amount o power. Environmental impact must also beinvestigated. Tus, energy utilities should make sure customers are awareo these issues and offer options. For example, some utilities are deploying

solar-powered in-home display units supplied by embedded photovoltaiccells and batteries, which requires no extra energy or operation.

Several parameters can be evaluated (fig. 4–16) such as user-riendlydesign. Tese interaces are commonly able to log the number o customer




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interactions, provide comparisons, and evaluate media acceptance. Parallelto this process, efforts should be made to quickly gather user eedback.

Customer privacy must be ensured. Products that are considered

invasive during these exercises must be reviewed and corrected to avoiduture rejection. For example, too many alerts can be seen by customers ascommands rather than helpul advice.

Fig. 4–16. A channel evaluation comparison

raining and education campaigns should help consumers deal withnew services and technologies. Te ull potential o these tools should beused. For illustration, many people now have modern “smart” microwavesand washing machines in their homes. However, how many use even

20% o these smart appliances’ capability? Tis is generally a result o badcommunication, in which customers have to learn about these technologieson their own with no support.

Other methods of communication. Smart metering projects enablethe use o different methods or energy utilities to communicate withcustomers. Tere are a large number o options, some o which we havealready studied. Tis section explores a ew others.

One o these methods is through reports. Many different types oreports can be tested in this phase, as well as the way they are deliveredto consumers, such as by correspondence or ace-to-ace interactions.Electronic methods are preerable to paper communication with respectto environmental riendliness.




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Tere are many types o reports commonly used, including:

• Billing invoices

• Press communications

• Marketing messages

• Appointment tools

• Interactive applications

• User guides

• Brochures

Te communications package should be careully built and tested.Unortunately, many communication methods ail because customerseither do not use the products at all or use them or only a short period.Some questions could be posed: How many people ully read user guides?Assuming they read these guides, do they ully understand them? Howmany marketing letters do people read beore discarding them? Careulmarket research is required to maximize efficient communication choices.

Surveys. Surveys can be efficient way to gather customer eedback andproviding necessary corrections in products and services. Te first aspectsto be defined are what questions need to be asked o consumers. Althoughnew questions can appear, as a consequence o field deployments, at leasta minimum scope should be established prior to beginning trials in thefield. Tus, a list o questions should be careully prepared and validatedbeorehand. Sometimes, poorly ormulated questions can produceerroneous results and can result in extra costs and additional research.

Methodologies need to be established too. Tere are two main types osurveys (fig. 4–17):

• Quantitative surveys are ofen based on statistical monitoringparameters and are converted into data or companies. Tey canbe targeted to a large number o people. Examples are Internetand telephone quality-o-service monitoring.

• Qualitative surveys are much deeper and are carried out or just

a ew targeted people. Tey have detailed questions and provide voluntary eedback. Tey can be used to validate and refinequestions rom quantitative surveys.




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Fig. 4–17. Quantitative versus qualitative surveys

Te most adaptable methods should be defined depending on needs.For example, questions related to display interaces could require detailedeedback (qualitative analysis), while perception o reduced consumption

afer the project is deployed can use direct questions (quantitativeanalysis). Analysis o results is a crucial point or understanding eedbackand ensures that the correct approaches were in place.

Due to complexity, specific expertise is needed to elaborate and executethese exercises. It is also important that results are completely impartial.Based on this, external specialized companies are usually hired.

Business model reviews

Pilot periods should also be used to validate business model exercisesin ull, when possible. For example, some planned opportunities cannot beachieved i customers do not use a specific product or do not see any addedbenefits in paying or a specific advanced service. Financial analysis shouldbe based on field proven exercises, not just theoretical ones.

Benefit realization analysis should start during the pilot period ratherthan afer massive rollouts (fig. 4–18). Tis anticipation o results can providemarket participants with a more robust concept o the achievements to be

obtained and related cost adjustments. Tis methodology reduces the risk oinvesting large amounts o money purely on theoretical analysis. It reducesthe risk o unrecoverable investments and can trigger strategic reviewssuch as an early halt to the project or financial share redistribution among




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Quality analysis

Quality o products can affect deployment o technologies, generatecosts or replacements, and impact company image. Tese actors should

be ully measured and transormed into costs to be part o the financialanalysis o a product. Comparison must be done under a common basis. obetter understand this aspect, let us assume that a specification establishesa minimum o 15 years or a device lie span. During laboratory tests, itwo devices comply with the specification, then they would be approvedusing this criterion. However, as these devices are not equal, they havedifferent behaviors. Te first device can last or exactly 15 years, whereasthe second may have 25 years o estimated product lie. In this case, their

costs are completely different or the energy utility. Te additional 10years significantly change business case analysis because o the productreplacement cost o the 15-year product in the field.

Tereore, the price o a product is not only composed o financial valueo acquisition but also to the costs related to its ull lie, rom its conceptionto its removal rom the field. For urther analysis, let us assume anotherscenario. Battery lie is undamental or gas meters. One product caninitially be more expensive than another, but i the more expensive product

has double the battery lie as the cheaper product, its total price could belower. In this case, it would be advisable to buy the more expensive productinstead o the initially cheaper one.

Meter ault levels are another interesting quality criterion. It wouldbe unair or a device with annual reliability values o around 0.5% to betreated the same way as another with 1%, even i the base requirement is1%. I manuacturers ocus on aggressive targets, this should be taken intoaccount during procurement process.

Accuracy is another point. A meter that can ensure ±0.2% o metrologicalerror cannot be compared with one that is offering ±1%.Note that most technical aspects are likely to be transormed into

financial values. Tus, they should be considered in procurementprocesses. O course it is also important that rules be well defined or allthe participants in a procurement exercise. echnical and procurementspecialists should work together to define compatible test methodologies,evaluation tools, conversion parameters, contract arrangements, andother related actors to ensure that an efficient, sustainable, ethical, andtransparent process is implemented.

Contract arrangements should be audited with continuous reviews toguarantee that all the claimed costs are being maintained. For example,ault levels can be defined and any excess above a defined limit converted




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in a compensation fine commensurate with the impact on the business. Inthis case, an extra penalty could be in place or serious nonperormance.Another example is that testing should be done at various stages o

equipment delivery in order to detect any variations in quality. Similarfines should apply here. Tese procedures are necessary to ensure thatproduction devices are delivered with the same eatures as those initiallytested. A combination o procedures is needed or comprehensive testing.

Technical losses

Another criterion is the power consumption o equipment wheninstalled in the field and thereore connected to the grid. As different

products have different levels o consumption, a measure o their electricityuse should be part o the financial consideration.

As an example, take two specifications or a common electricity meterwith a maximum burden o 1.5 W per measurement element (fig. 4–19).Let us assume the price o Product 1 is 5% lower than Product 2; let usassume Product 2 costs $30. We could initially conclude Product 1 is moreadvantageous, but is it really? I Product 1 consumes 1.3 W and Product 2consumes 0.8 W, we would not be so sure anymore. In this case, Product 2

will consume 0.5 W less than Product 1. Assuming 20 years o meter lie,this difference could represent around 86 kWh. aking into account thata utility could be selling this energy in the residential market or $0.12per kWh (e.g., without considering the capital costs over the period andother advanced finance analysis), we can easily gain more than 30% o thepotential acquisition price o a smart meter device with high volumes. Iadded to the acquisition price, it is clear that Product 2 is a better returnon investment than Product 1. A mistake resulting in the acquisition o

Product 1 could cause serious problems or business models consideringthe millions o meters to be deployed.

Penalties should be in place or noncompliance with contracts. Forexample, assuming that a sample o meter prototypes were evaluated with0.9 W on average but during the delivery o the production devices, theywere ound with 1.2 W, an audit process must start. I the meters were notimmediately replaced, the costs o the consumption o 0.3 W or all theproducts, taking into account their expectation lie, should be converted

into a compensation fine. Tis cost should also be added to a penaltyfine to be paid by the manuacturer. Investigation procedures are alsorecommended to understand the root cause o the problem. Dependingon the conclusions, these could result in additional penalties or sanctionsto the solution provider.




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Fig. 4–19. A diagram illustrating the use of total price method instead of acquisitionprice only

Different profiles o consumption should be considered or smartmeters, such as when they are on standby or communication mode, andwhen communicating under repetitive intererence situations. Scenariosshould be developed to make this analysis as accurate as possible. Tesescenarios could also be used or other purposes, such as to measure the

battery lie o gas meters. Note that this criterion also applies to auxiliarydevices such as instrument transormers, modems, and gateways.

Te customers should also obtain extra benefits rom these evaluations.Assuming battery-powered in-home display units with different levels oconsumption, the lower consumption would impact the customer less interms o battery acquisition (assuming that the customers are responsibleor battery replacements per legal agreements). However, the energysupplier’s image o being responsible could also be affected, or it could be

responsible or providing the batteries or replacements. A display unitsupplied by photovoltaic cells could be more advantageous i comparedoverall to units containing replaceable batteries.

Smart procurement

It seems clear then that smart metering projects require new methodso procurement. Te acquisition price o metering products should

be associated with operational costs to enable an overall analysis orprocurement. Tis new environment requires changes to traditionalapproaches and different teams working together to maximize the benefitsor energy utilities. Prior to smart metering systems being deployed,




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the same procedures could equally apply to the purchase o traditionalelectronic and electromechanical meters to reduce costs or utilities.

ConclusionWell-defined requirements are essential to the success o any smart

metering project. Te requirements-gathering stage can be a challenge orutilities. Due to the complexity, specialists must careully undertake this.Afer filtering and analysis, this data will orm the basis or business models.

When gathered, requirements need to be converted into technical

specifications. Tey establish the initial basis or technical evaluation andprocurement to take place.A modern laboratory inrastructure is absolutely necessary to ensure

that the specifications are ully met by the products developed anddelivered by solution providers. Continuously trained specialists who canassist in the choice o the right technical solution to be deployed are alsoessential to maximizing the opportunities or all market participants.

Perorming pilot programs in the field is critical beore making mass

rollout decisions. Different solutions must be evaluated according totechnical and customer-related aspects. Strategy can be confirmed orchanged during this stage, depending on the results obtained during thesetrials. Listening to the customers and providing necessary corrections arekey to building the right products to be offered by a utility.

Smart procurement is essential. Operational aspects related to the lie othe products in the field, such as the consumption o energy meters duringtheir lie span, should be converted into costs. Tey must then be addedto the acquisition price o metering devices or ull comparison purposesduring procurement exercises. Tis is important to understand the realtotal costs o these products. Tus, a more expensive device in terms opurchase price is not necessarily less attractive in overall financial terms.For example, technical advantages could compensate or even outweighfinancial differences. Among others, these products could have an extendedlie span, require less energy consumption, and be o higher quality, thusrequiring less maintenance costs.

Te requirements, specifications, business cases, and strategy must be

continuously reviewed during the entire project lie to produce refinementsand corrections. Tis is crucial to ensure that these platorms are ullydeployed and all their opportunities and targets are effectively achieved.Te project team, using a structured project management methodology,



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5International Trends

Customers are becoming more sophisticated and energy marketsmore competitive. Tese require innovation o the products and

services that energy utilities intend to offer their customers. Utilitiesare not limited to their core business; instead, they continue to extendinto other areas according to their needs and as technology evolves. Asa natural consequence, win-win alliances may be developed, targeted toboth business-to-business (B2B) and business-to-client or -consumer(B2C) strategies.

A smart metering system offers numerous opportunities because oits capability or expansion o the scope o services and products energyutilities can offer their customers. As discussed, this is possible thanks tothe ability to integrate with other external platorms. Many platorms mayinteroperate with these systems now and in the uture. A smart meteringplatorm is usually installed or more than 15 years. Tus, to maximize itsbenefits, a utility should comply with the short-, medium-, and long-termstrategies o different market participants. Although some o these aspects

have already been superficially discussed, this chapter expands on thetrends related to these systems and explores urther opportunities tointegrate with other systems.




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Streetlight PlatformsPublic lighting is a problem that challenges many energy utilities

around the world. Although managing this service may appear basic, it isar rom an easy task. Te service providers responsible or public lightingace many challenges, including:

• Vandalism

• Flickering bulbs

• Bad contacts producing lamp sparking

• Faulty lamps

• Failures o photoelectric receptors

• Ballast ailures

• Lie span and preventive maintenance management

• Consumption monitoring

Even though privatization or decentralization decisions have shifed

the responsibility or this service away rom energy utilities, it continues togenerate problems or these companies. Tus, many challenges are acedby these enterprises, such as:

• Difficulties o maintaining an efficient asset database(e.g., quantity and location o lighting assets)

• Uncontrolled replacement o lamps and associated devicesthat require higher energy consumption

• Clandestine connections within networks

• echnical losses on dedicated circuits and transormers

• Lighting turned on during the day

• Uncontrolled power actor o lighting ballasts

• Changes o consumption due to seasonal amount o daylight(e.g., in some seasons, lamps stay on longer than in others)

As you probably now realize, although streetlights may generate someinconvenience to utilities, they can also generate many opportunities opartnerships between energy utilities and lighting service providers.



Chapter 5 International Trends

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Smart metering systems may enable these companies to work together orcommon benefits.

Additionally, benefits or both companies can go even urther. For

example, as these assets are everywhere, they may be strategic or smartmetering deployments. Streetlight electrical boxes may be strategic pointsor the installation o low-power radio requency (RF) repeaters to builda local area network (LAN) environment (fig. 5–1). Tus, these nodes canbe used as repeat signals or many communication media. Sometimes thecost o repeaters significantly affects smart metering business cases. Forexample, it can be difficult to find places to install RF technology devices,and even when ound, leases must be negotiated and paid. Streetlights offerperect opportunities because o their height and distribution along streets.

Fig. 5–1. A scenario using repeaters installed on streetlights

Tus, an obvious trend or smart metering systems is the creationo alliances between energy utilities and lighting service providers toenable a more cost-effective deployment o these platorms or sharingopportunities and benefits.




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A smart metering inrastructure could be used to deal with thischallenge. For example, assuming a narrowband power line carrier (PLC)network, the data concentrator, in addition to its meters, could be used to

command streetlights (fig. 5–3). A PLC device with an embedded switchcould be connected to the lighting points and remotely commanded.Tereore, the data concentrator could send broadcast orders to commandall the points simultaneously. Tese orders could be based on, among othersources, photoelectric sensors, timers, intelligent algorithms, or externalinormation provided by weather orecasts. Middleware could scheduleevents or all the data concentrators according to the needs o the differentareas. Note that the PLC medium was used only as an example. OtherLAN communication technologies may also present the same potential orautomation, such as low-power RF.

Electricity

meter

Gas

meter

Data

concentrator

Fig. 5–3. Example of automated streetlights




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Additionally, measurement circuits can be installed on these PLCdevices. Apart rom their switching abilities, this equipment could be usedto measure streetlights individually, which is important or generating

accurate billing data. As this equipment does not need to be individuallyread by customers, it is unlikely there will be any need or individualdisplays. Tus, the measurement circuit used or this purpose is generally very simple and inexpensive. Basically, it is a single board, size-reducedand without some common hardware used or electronic meters installedwithin customer homes such as liquid crystal display (LCD), connectionterminals, covers, and so orth.

echnical and nontechnical losses associated with these circuits canalso be reduced with the installation o meters. Beyond contributing torevenue protection, this can also improve saety or people and equipment.Individuals involved in illegal connections can be hurt or even killed, andthese clandestine connections can damage both the grid and electricaldevices due to bad electrical connections.

With existing grouped switch panels, a single electric smart meter oreven a more simplified low-cost device could be installed in locations tocommand all the associated streetlights simultaneously. Tis would savecosts or the number o devices needed to remotely manage public lighting,

avoiding the need or reconfiguration o existing grid topology.Assuming a more complex scenario, the deployment o smart metering

systems may enable opportunities or a smart grid inrastructure or lightingcircuits. For example, outage alarms could be generated, cross-reerencedwith other inormation, and analyzed. Tus, the service providersresponsible or managing these circuits could benefit rom automaticdiagnostics about potential causes o aults and their locations. Many otherlighting device aults could be easily detected or preventive and corrective

maintenance purposes, such as flickering. Extra devices could be installedto automatically isolate aulty points and make prompt corrections.

Smart analysis may orecast the best time or replacements based ondata such as lamp consumption over time, estimated lie, and temperature variations. Te same applications could be used to analyze load profilesto detect transitory aults such as bad contacts or lamps unexpectedlyor briefly switched off (fig. 5–4). Tese unctions are very useul orpreventive maintenance.

Intelligent algorithms can optimize asset management. For example,specific lots o lighting equipment may present generalized anomaliesthat can result in extra costs. Asset databases and maintenance could be




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With this LAN expansion, security and health care services could alsobe offered in public areas. For example, panic buttons could be installed atstrategic points in streets, stores, or devices carried by technicians in the

field. raffic lights could benefit rom this larger coverage and be monitored via the same data network. Electric and hybrid plug-in vehicles could alsouse these networks to communicate, as lighting points are likely to beinstalled in streets near parking locations (fig. 5–5). For example, driverscould be reminded o saety recalls and any other necessary maintenanceby vehicle manuacturers or o recharging rate offers by utility companies.

Fig. 5–5. A vehicle sharing the smart metering infrastructure with streetlight automations

Definitively a trend

Based on all this, there is a clear trend to deploy smart meteringsystems with lighting automation. Synergies between energy utilities andthese public service providers are numerous and may generate interesting

alliances. As mentioned, the association o both platorms potentiallyincreases opportunities and reduces risks through collaborative proceduresand cost sharing. Utilities throughout the world are currently deployingpilots, and they tend to be upgraded quickly to become massive rollouts.




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Electric and Plug-in Hybrid VehiclesElectric and plug-in hybrid vehicles seem to be the way orward or

sustainable transport because o the potential reduction in CO2 emissions,depending on the energy matrix o the country. Te more renewablesources are used, the larger is the potential to reduce pollution levels.Electricity is appearing in the vehicle industry as an alternative to the uelscurrently available in the market such as gas and diesel. Electric vehiclesare ully independent alternatives, while hybrid plug-in vehicles combinetraditional uels with electricity.

Both types o vehicles can connect to AC sockets or recharging

purposes. Beyond potential benefits to the environment, they offeropportunities to consumers in terms o transportation costs. Electricitytends to be cheaper than other available uels in many countries. Tesavings may be even higher or customers i the recharging procedures areused during off-peak times. Energy is ofen cheaper and associated withlower sources o pollution at off-peak times.

Electric vehicles have been available or a long time, although problemspersist such as the relatively short distances a vehicle like a car can be drivenper recharge. Plug-ins represent the evolution o current nonrechargeablehybrid vehicles and could present solutions or this limitation. Tus, inaddition to the electricity generated by the vehicle, the rechargeable versionuses an extra, external AC source to supply power. Tese vehicles are alsomore economical than other conventional hybrid models in terms o uelconsumption and have extended range o use, as once the battery power isexhausted the internal combustion engine takes over.

Plug-in hybrid vehicles may create less CO2 emissions than traditional

vehicles and nonrechargeable hybrid vehicles. ests on these vehicles began

in 2007 in countries such as the United Kingdom, France, Belgium, Japan,and United States. Currently, these solutions seem to be more appropriateto urban rather than rural areas. Tese vehicles are currently able to runor 20 to 40 miles without recharging. Tey usually recharge in a ew hours,and depending on the distance to be covered daily, more than one rechargemay be needed during per day. Because o this, even i their adoption isbecoming a reality, widespread use depends on energy utilities deployingmore recharging stations. Although plug-in hybrids may be recharged via

in-home sockets, public stations are needed as well. Tus, utilities shouldbe ready to ace this challenge, and smart metering platorms seem to beappropriate tools or this purpose.




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Both types o vehicles may also provide very good opportunities orregenerating the automotive industry (fig. 5–6); this industry has beenaffected by the worldwide financial crises and the rise in oil prices. Te

new generations o plug-in vehicles could present a perect opportunityto stimulate demand by replacing existing vehicles with this potentiallygreen means o transport. However, there could be a serious collapse ithis energy requirement is badly managed. For example, assuming 10%o vehicles in the market are recharging at the peak time, blackoutsmay occur. Contrary to expectations, CO

2 emissions may even increase

depending on the sources o generation used to cover the deficit oelectricity during this period o the day. Tus, demand-side managementproducts that smart metering systems provide are essential to enable thesecure entry o these new mobile consumers in the market.

Fig. 5–6. Potential drivers for deployment of electric and plug-in hybrid vehicles

Opportunities and driversElectric and plug-in hybrid vehicles offer opportunities or the

environment, vehicle industry, and utilities. Some experts believe thatmillions o these types o vehicles will be deployed all over the world.Potentially, they could individually use hundreds o kilowatt-hours permonth. Internationally, they could easily justiy the building o new powerstations to support consumption requirements.

Plug-in vehicles are potentially new sources o not only energy

consumption but also distributed storage (fig. 5–7). Tus, they couldactually be used to reduce peak consumption o electricity. Tey couldstore energy during off-peak periods and make it available to the grid whendemand is highest. For example, early in the morning, customers coulddrive to work, where their vehicles could be recharged. Back at home, they




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could promptly plug their vehicles into electrical sockets, but delay therecharge (automatically) until later at night during off-peak periods. Inthe meantime, the remaining energy in the batteries could be converted

to AC and used to supply the home during peak times. With this service,peak consumption on the grid could be significantly reduced. Te extento reduction depends on the number o vehicles deployed and availableor this purpose within a utility area. In the uture, with the evolution onew batteries or vehicles, more energy can be stored and later exported tothe grid. Tus, these vehicles could become microgeneration sources onthe grid.

Fig. 5–7. Plug-in vehicles as electricity consumers and for distributed storage

In addition to benefiting rom reductions in the price o uel, customershave profited rom many incentives provided by local governments.In Europe, or example, due to renewable targets driven by the KyotoProtocol, some councils are providing ree city parking in recharging areasand reducing taxes or these vehicles.

Challenges

Battery technology has been a constant challenge or vehiclemanuacturers. For example, the cost has been a problem, although it isgetting close to resolution and has been decreasing every year. Despite

this good news, battery size and storage capability are still a challenge. Forexample, currently plug-in hybrid vehicle models are only able to provideelectricity to drive 20 to 40 per recharge. Tis seems to be compatiblewith urban area requirements but is unlikely to enable its ree use or




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all applications. Despite this, technology is moving quickly, and morepowerul and size-adapted batteries may soon be available on the market.

Another point is the availability o recharging stations. For the success

o these implementations, recharging stations need to be widely available.As with other uels, investors have already taken the lead to build chargingstations in several countries. Despite this, energy utilities could playan important role here. In addition to the main stations, others couldbe available:

• Collective garages: While sockets located in private garages aregenerally supplied by the customer’s meter, in collective garagessuch as in office and apartment buildings, they are generally

provided via collective installations. Here, all the occupants, viathe building rentals, would be sharing payment or the energyconsumption required by these vehicles. Tus, it is necessary orutilities to provide ways or consumption related to rechargeso vehicles to be attributed to the energy account o the vehicleowner, even i initially counted by another meter than the oneowned by the customer.

• Public parking (fig. 5–8): In these areas, local authorities will

offer technology compatible with the street environment andchallenges such as vandalism and exposure to weather.

Fig. 5–8. Potential public parking configuration for electric vehicles usingrecharging stations




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• Private parking: Special arrangements may be offered abovethe requirements o traditional private parking arrangements.For example, one multisocket station can be centrally located

to supply our vehicles. Similar to the collective garages, thiselectricity could be attributed to the account o the consumer.

• In-home: Although electrical sockets are available in homes,plug-in hybrid vehicles require specific saety measures. Forexample, or recharging purposes, the ground cable mustalways be plugged in to avoid sparks and other problems relatedto static energy and isolation aults. Although many differentmechanisms can be used or this purpose, these technologies

are not available in the sockets currently installed in customerpremises.

Saety procedures must also be developed. I poor arrangements are inplace, the cables connecting the vehicles to recharging stations could createrisks in public parking. Someone distracted could stumble on the cableand all down. Tus, these arrangements must be deployed with efficientsaety policies.

Integration with smart metering systems

Recharging systems include more than just meters. Tey contain othercomponents such as circuit breakers, recharge devices, I platorms orenergy management, and potentially HAN/WAN communication media.Analyzing these entities, the similarity with smart metering platorms isevident.

Smart metering systems offer a core role or these deployments. Tey

can be integrated with vehicles, or example, to identiy the users andredirect the energy consumed to their home accounts, independentlyo where the vehicle is recharged (fig. 5–9). Nowadays, vehicle keys andonboard computers store much inormation. Tey use industry standardsand protocols to provide data exchange within the vehicles. An example othis is the controller area network (CAN) bus. CAN is a communication busdesigned or industrial applications and deployed or vehicles since 1980. Itis present in the majority o modern models. Experience demonstrates thatCAN is easily integrated with external devices, including smart meters.




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Fig. 5–9. Potential integration between smart metering gateways and plug-inhybrid vehicles

Tere are several options to enable integration in the field betweensmart metering systems and these sorts o vehicles. For example, smartmeters could use HAN technology adopted by vehicle manuacturers.RF Bluetooth is currently been installed in many vehicles or integrationwith the external environment. Another option is to install smart bridge

devices in vehicles to make them interoperable with the HAN managed bysmart meters.

Tis integration enables continuous data exchange between vehiclesand smart metering systems, at least during recharge events, or differentpurposes. Partnerships between vehicle manuacturers and energyutilities have already been established internationally to integrate bothplatorms. Integration enables recharges everywhere, under saety rules,and it amplifies the scope o opportunities or both energy utilities and

vehicle manuacturers.Logical integration could also be implemented in many ways (fig. 5–10).

For example, the customer could create a vehicle account with their energysupplier. Tis account could then be linked with the customer’s main




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previous arrangement, smart meters would update the customer’s credit withconsumption generated by multiple meters during recharging processes.Tis could enable an end-to-end integration starting in the vehicle, passing

through the in-home metering gateway and middleware, and finishing inthe energy utility applications. Te opposite flow, rom utility applications tothe vehicle, would work as well. Scratch cards and Internet browsers couldbe interesting alternatives or credit purchase too. Green rates could beassociated with this in order to help reduce CO

2 emissions.

Te telecom link between vehicles and smart metering systems mayalso enable continuous saety checks while recharging (fig. 5–11). I anyanomaly is detected (e.g., grounding interruption), the energy supplywould immediately be stopped. Inormation monitored during this dataexchange process could include connectivity to the ground, overcurrentand overvoltage detection, and other alarms.

Fig. 5–11. A fully integrated recharging procedure for an electric vehicle

Data exchange can also direct recharging events to start and finishonly afer receiving orders directly rom the vehicle. Te vehicle’son-board computer could manage this procedure. Te recharging processwould only start afer saety checks were conducted internally by the vehicle and externally by the utility recharging station; an allowance or

recharging would be given by the energy supplier (e.g., enough credit in aPAYG account).During recharging procedures, a lock mechanism could be used to

block the plugs at both sides. Any plug removal would only be possiblei the meter had already interrupted energy and there was no voltage




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on the recharging cable. Both cars and stations could also use sensorson their sockets to detect abnormal plug removals and quickly open therecharging circuit. Tis could be useul or reducing risks o vandalism

and would avoid any kind o external electrical sparking produced duringrecharging procedures.It would also be useul to know the status o the battery. When it is ully

charged, a report could go to the meter that could promptly interrupt theflow o energy. Te cable would remain plugged in but not connected to voltage to avoid energizing circuits when not in use.

A ully integrated scenario would allow vehicles to use all the resourceso smart metering systems. For illustration, i at this stage a smart meteringplatorm is integrated with the customer’s television, the vehicle could alsouse it as a display. Tus, consumers could ollow the recharging progress otheir cars via their television. In the same way, they could receive messagesand alarms such as marketing messages and alerts when their energy creditwas low.

In addition, the vehicle manuacturer could use HAN interaces or aninterace within the vehicle to communicate with drivers. Tese interacescould alert drivers to the ollowing:

• Saety recalls • Alarms (e.g., or abnormal plug removal)

• Preventive maintenance appointments or recommendations

• Marketing messages or messages rom partners such asinsurance, tire manuacturing, or maintenance companies

• Condition o vehicle components such as tires, oil filters,and wiper blades

Many other opportunities arise. Imagine the integration o thesesystems with a massive deployment in the streetlight industry; vehiclescould be monitored and communicate with relevant companies almosteverywhere. However, there are still challenges to be aced by energyutilities and vehicle manuacturers. Hard work is required or many marketparticipants. Despite these challenges, these participants have enoughexpertise to overcome them.

Clearly, there are vehicle trends as well as strategic alliances betweenenergy utilities and vehicle manuacturers. Energy utilities need to beready or them and prepared to maximize potential opportunities.




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Occupation management and safety

Assuming truly interoperable smart homes, sensors rom differentsystems can be efficiently used to detect home occupation and saety to

command in-home devices when necessary (fig. 5–12). For example,security platorms may use this inormation to automatically activatealarms when needed. Windows and doors could be then closed and locked,and premises-monitoring tasks activated. Water or gas leak detectionsand fire or smoke alarms could also be tuned to the maximum level osensitivity. In case o a home invasion, local actions may be carried outsuch as lock reinorcement and alarm notifications. Tis platorm couldalso promptly notiy the police, security-monitoring companies, and

consumers. In case o a fire, sprinklers could be activated, and firefighters,insurance companies, and clients would be promptly notified.

Fig. 5–12. Occupation management diagram—shared tasks

In more straightorward strategies, energy utilities could use theirin-home metering gateway to provide the services described above.Otherwise, they could at least use this inormation to activate energy-efficient actions according to predefined profiles. I the security systemdetected that no one was home, lighting could be turned off. Te samecould apply to some appliances such as televisions and radios. Load-shifingservices could be even more active during this period, too. In case a gas leak

was detected or a stovetop burner had been lef on, the gas supply couldbe switched off. Some actions could be perormed afer the customer wasnotified. Others, depending on the urgency, could be promptly executedollowed by a report message. I needed, customers could confirm or reject




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orders rom practically anywhere, with any source o WAN connectivitysuch as a mobile phone. In case o alse notifications artificial intelligencecould allow a system to learn rom errors and avoid a repetition o the

mistake in the uture.

Comfort and entertainment

Internet Protocol (IP) seems to be the trend in the medium- andlong-term strategies o many authorities and telecom providers aroundthe world. Tis is necessary internationally to provide increased comortand to present opportunities or market differentiation through innovativeoffers to clients. It is also necessary to improve productivity. Globalization

makes connectivity paramount; or example, it is now more common orpeople to work rom home.

For these reasons, billions o dollars have been invested internationallyin IP. Intensive research and development is being carried out to developthe best technical architecture design to achieve the best perormance andmaximize opportunities.

Beyond providing basic services, home entertainment providers areworking with telecom and utility industries to offer combined services to

provide more comort. Sound and video streaming should to be availablethroughout the home and be controlled automatically according tocustomer needs (fig. 5–13). For example, wake up alarms can be integratedwith news, weather orecasts, and traffic inormation streamed to V, radio,or mobile devices. Plug-in vehicles could also be charged and available oruse. When back home rom work, both text and voice messages would bereproduced in audio orm. Heating and cooling o the home could alsobe regulated according to a defined profile. Lighting scenarios could be

defined according to different needs throughout the day and music setaccording to preerences. Doors and windows could be locked accordingto time and event settings, and electrical curtains could operate accordingto preerence rules. Health care services could also be configured accordingto the residents’ needs.

aking into account the above scenarios, there are many opportunitiesor energy utilities. Interaction with these different systems would helpenergy utilities to understand consumer habits and apply energy-efficiency

actions. Rates could be defined to match these behaviors according to theprice o uel and grid demand. Price signals could produce automatictasks such as load shifing without strongly interering with the levels ocomort required by customers. Potentially many new display interacescould also be used. Different sources o in-home connectivity could enable




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utilities to piggyback metering and other relevant inormation usingthese inrastructures.

Fig. 5–13. Comfort and home entertainment diagram—lighting scenarios.(Illustration courtesy of Echelon Corporation.)

Smart communicating appliances

New appliances with embedded HAN capability are currentlyavailable on the market (fig. 5–14). Examples are video games, televisions,rerigerators, and washing machines. Expansion or other types oappliances and mass deployment are just a question o time. Differentmarket entities are defining an interactive environment where thesedifferent appliances could be integrated. In the integrated scenario, differentapplications could interact to improve overall perormance in homes andreduce costs. For example, a television may act as a display device used tocommand washing machines and ovens. Appliances could be switched onand off by scheduling events or on-demand orders. Tese tasks could belocally or remotely managed via secure web-based applications.




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Fig. 5–14. Smart appliances diagram—shared tasks

Energy utilities could make good use o these structures. elevisionscould be turned off when the room is vacant or a defined amount o time.Washing machines could operate when the price o energy and carbonemissions are lowest (fig. 5–15). Rerigerators could be switched on andoff according to load-shifing arrangements. In summary, demand-sidemanagement would become more efficient and cost-effective. Utility

gateways could interact directly with controllers and switches embedded inthese appliances. Apart rom cost improvements, energy-efficiency actionswould take place according to authorization given by the appliance. Forexample, perhaps a device should not be switched off at a specific timebecause an important internal task is being executed. An external switchwould be unlikely to know this.

Smart metering integrationAnalyzing the trends and the utility opportunities, smart metering

systems are likely to be integrated with smart home platorms. Energyutilities should be prepared to consider this trend in their potential strategyplans and business cases because o its associated benefits.

Home environments need a device manager. It must supervise andcontrol all the in-home applications and provide interoperability amongapplications based on different standards and media. It should also link

with the WAN or flexibility within the home. As you are now aware,smart metering system platorms could potentially provide a device withull controls, depending on how it is specified. Tus, in-home meteringgateways can play an important role in this integration process. Due tothe gateway’s strategic position within the home, partnerships with home




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Fig. 5–16. Potential integration of smart metering systems with in-home applications

Tis integration offers the possibility o sharing inormation andinrastructure with components in the home. It makes lie easier orutilities because o the possibility o interventions directly at the loadsource. Sharing these components also means using consumer interacesalready consolidated with other applications.

Te smart home is a concept that consumers find ascinating, but ideasare sometimes not put in practice because o the costs involved. Tis barrier

could be mitigated by the savings rom sharing inrastructure and theopportunities o deploying both platorms together. Te smart home wouldconsequently reduce the risks o implementing smart metering projectsbecause o the added unctionality value or customers. Home automationhas demonstrated that customers are prepared to pay or it i the cost is airand the benefits meet expectations. Te expense could at least be partiallyfinanced by customer savings rom reduction o consumption and bettermanagement the customer’s budget. Tus, the smart home seems to be an

irresistible model, and or this reason, energy utilities around the worldhave been promoting it in competitive markets.




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Smart GridsSmart metering systems can be stepping stones to smart grid projects.

Tey offer the opportunity to share inrastructure and reduce the cost osmart grid projects. For example, electricity meters may act as sensors onthe grid because o their capability or advanced quality measurements andonline eedback.

The challenge

Te grid is one o the main assets o electricity utilities, but managing itwithout automation is a challenge. Tis is due to many actors:

• Diversity o environments, such as undergroundand aboveground eeders

• Variations o population density

• Size o service areas

• Areas that are difficult to access

• Number o consumers • Weather conditions

• Distance between operational centers and cities

• Susceptibility to environmental intererence, such as contactbetween eeders and tree limbs or roots, and traffic accidentscausing damage to power poles and the grid

• Te need or corrective and preventive maintenance in the field

• Dependence on customer eedback to identiy specific types oaults on the grid

Even with this evidence, ew networks in the world today are ully oreven partially automated. Cost is generally the main obstacle or thesedeployments. Among others, communication inrastructure may be veryexpensive given the locations o the targeted devices around the utilityarea. Ofen, these points are not centralized, which increases the costs todeploy telecom inrastructures. Additionally, telecom coverage may notbe adequate to provide connectivity to all the strategic devices, or mightbe completely unavailable in some areas. Because o this, despite thebenefits, it is unlikely that these projects will be economically justifiable by




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• Enable renewable and distributed generation. Smart managementallows the energy matrix to be cleaner due to reduction opeak consumption and mass deployment o renewable micro-

generation sources and less dependence on high-pollutionpower plants. Distributed storage points could also be installedaround the network to optimize daily consumption curves.

• Improve dispatch. Online monitoring and sel-reconfigurationare likely to help utilities optimize their dispatch tasks.

• Prepare the grid or the next century. Asset modernization andautomation are necessary to enable utilities to handle challenges,including the trends o increasing demand. Otherwise, thesedemand levels can reach a point where the amount o energyrequired is more than what can be generated. Tis could causeblackouts or whole cities and states. Some utilities are alreadysuffering rom this problem.

• Improve quality o supply. Voltage regulation, reactive energy,harmonics management, and phase balancing are just someexamples o the opportunities these projects may offer to

improve quality o supply. • Improve reliability and reduce outages. Tese platorms enable

grids to offer better perormance or utility consumers. Damageto the grid caused by downed trees and tree limbs is one o themajor contributors to outage events in some countries. Teseplatorms enable maintenance teams to strategically plantree pruning.

With the integration o these platorms and smart metering systems,meters can act as sensors and switches or the grid. However, otherdevices also need to be installed, or example, deect-detector sensors andautomated high-power switches. Tese devices can be used to automaticallyidentiy and isolate aults on the electricity network.

In an unautomated environment, where a ault creates a networkprotection operation, and consequently a local outage event, techniciansmust go into the field. Tey need to run through the entire network toidentiy the problem, open switches at different locations to isolate the

ault, and reestablish unaffected points. Tis procedure may take hoursand affect consumers or a longer period than it should. In an automatedenvironment, the problem may be identified and isolated in seconds, with




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automatic network reconfiguration (fig. 5–17). Tereore, technicianscould go straight to the points where corrections are needed.

Fig. 5–17. Example of fault isolation

Preventive maintenance and other actions could also be based ondata generated by smart meters. Tis provides the opportunity to sendeedback to the network operators or outage detection and energy-qualitymonitoring. Te analysis o these data could be even more beneficial iassociated with other strategic devices, or example, rom fiscal metersinstalled at power transormers. Tis could help avoid uture costs o aultsoriginated by poor management o load on these transormers. Instead,detection by smart devices o abnormal phase balancing, peak overloads,and general overcharges makes it possible to take preventive action beorea ault or outage occurs. Many other optimizations could be acilitatedby integration between the smart grid and smart metering platorms,depending on the specific needs o energy utilities.

Smart metering systems: The port of entry for

smart grid

It is unlikely that smart grid systems will be deployed in isolation.Tey are likely to be deployed by piggybacking on a smart meteringinrastructure to enable devices to communicate and interact. But there




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will be challenges to ace. For example, standards need to be created toacilitate interoperability.

Given available synergies, both platorms are likely to be integrated to

ampliy their scope. For example, demand-side management systems couldbe associated with demand-response programs based on grid needs. Teopposite is also true; energy balancing rom meters measuring substationeeders and power transormers may also help metering initiatives, such asrevenue protection programs. Integration is beneficial or both sides.

Te integration o both platorms is already becoming a reality or someutilities around the world. Teir integration and massive deployments arebecoming a trend in the medium and long term.



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Conclusion

Smart metering platorms are no longer a trend, but a reality across theworld. Although there are still some challenges and new methodologies

ahead, most have been mastered by energy companies.Tese technologies will be, sooner or later, massively deployed

worldwide. It is just a question o time, as these systems offer many benefitsto customers, energy utilities, environment, local authorities, and othermarket participants.

Te integration capability o these platorms amplifies the potential scope

o business or energy utilities and transorms energy into more than justa commodity; it is also a source o profits rom new products and servicesoffered to customers. Tese profits could also come rom optimization oexisting operational processes and the consequent reduction o expensesand overhead. Tese are only some examples; the benefits these platormscan offer are unlimited.

Many drivers and opportunities come with these initiatives. Teseaspects should be studied in detail or each market. Business models and

evaluation exercises should take each available opportunity into accountwhen investigating the potential benefits or all market participants.

Smart Metering Progress:The Big Picture

aking into account an international market with hundreds o millionso customers, it is difficult to imagine efficient management o all theseconsumers without smart metering platorms. Competition in energymarkets is also becoming more aggressive, with potentially millions ocustomers changing energy suppliers every month internationally.




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Tese are some of the reasons why many energy utilities aroundthe world are massively deploying smart metering systems. Othersare preparing their requirements and investigating the potential or

generalizing these platorms. A ew have not yet woken up to this reality,but sooner or later they will realize that smart metering is inevitable.Hundreds o millions o smart meters are expected to be introduced to theresidential market within the next 10 years across all continents.

International benchmarking demonstrates that the way these rolloutswill be organized depends on different aspects, mainly related to the localenvironment and strategies o the different market participants involved.In order to determine the best strategy to be implemented, some questionsshould be answered:

• What do customers think about smart metering? Are theycurrently interested in these platorms?

• How can customer behavior be influenced throughthis technology?

• How do customers benefit rom this technology? Do theyunderstand the benefits?

• What obstacles need to be overcome or these platorms tobe delivered?

• Is there a commercially viable business case or all the marketparticipants and segments?

• What are the opportunities these platorms offer to a specificregion or range o customers?

• How difficult is it to integrate these platorms with others inorder to expand benefits and opportunities?

• Will governments and other local authorities incentivize andencourage this new technology?

• How can a smart metering rollout be implemented in a ullycompetitive market and be used by all energy suppliers withoutextra operational costs, such as meter changes every time acustomer changes supplier?

• Can all the different energy suppliers o a competitive marketwork together to provide a common ramework? How willthe regulatory agency or government view this with respectto competition?



Conclusion

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Tis book provides inormation that may help you deal with thesequestions and many others about the deployment strategy of smart meteringsystems. All these aspects must be careully considered by project teams,

along with their requirements, strategies, and background. Te technicalteams o energy utilities and other specialists in the market are certainlyable to deal with these challenges as well as the potential opportunities.

Defining the SolutionDefining a technical architecture is undamental to the success o smart

metering systems. Apart rom the need to saely and securely speciyhardware and sofware, a technical architecture is necessary to enableintegration with other platorms and interoperability between all thedevices within its scope.

Experience rom past initiatives should be the basis or innovation. Itis important to understand the evolution o metering systems over timeand their purpose. Tis experience will help you develop robust platorms.Benchmarking exercises are undamental or this learning exercise, but

there is no single solution. In general, some customization is needed orany implementation.It is also important that a smart metering system will be comprised

o a complete, interoperable, and open platorm in terms o meters,communications, systems, and protocols that can be used by the differentmarket participants and ensure uture-proofing or customers, marketneeds, and trends.

For this reason, interoperability eatures must be well established,allowing relationships among the different devices in the field, such as gasmeters, electricity meters, customer displays, other devices, and their Imanagement platorms. Tis concept is not restricted to technology. Forexample, customers should also actively interact with the technology. Teirparticipation is crucial to achieving the objectives o these projects. Teireedback should be taken into account to acilitate the rollout o efficientautomatic products and services by energy utilities and to help customersrealize their savings goals.

Different solutions are available in the market that claim to be smart

metering systems. Tey offer different unctionalities and use differenttechnological options such as communication media, protocols, andmeasurement methods. Te chosen technology must be ully compatiblewith the utility strategy, customer needs, local laws, and regulatory policies.




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Tat is why, although there are a large number o offers available in themarket, it is hard to find a product that is completely compatible withspecific market needs and requirements.

Different standards have also been implemented across the world,based on local needs, laws, and regulations. Various participants havetried to integrate these standards and customize them into specific marketrequirements. Te success o smart metering deployments is directlydependent on these specifications.

Data security, data management, and other I parameters are alsonecessary or these implementations. Policies must be reviewed in regardto these parameters. Additionally, saety and legal criteria are paramount.

For all these reasons and many others discussed in this book, energyutilities must take special care when building these solutions. Te cycleo transorming requirements into technical solutions is complex butachievable i the correct methods are used.

What’s Next?

Smart metering teams should closely watch market trends. At theleast, integration with other platorms can ampliy the range o benefitsto be achieved. Tere are also other projects that could only be justified iimplemented in association with smart metering systems, such as smartgrid platorms. Tereore, a global view is necessary to realize all thebenefits and opportunities or the different market participants.

Although this book predicts some trends, what is next depends on youand other parties directly or indirectly involved in projects. Continuousevaluation is necessary as trends evolve.

Finally, I hope this book offers you some elements to help you deal withsmart metering systems in a better way. I hope you make good use o thisbook, and I hope to meet you personally, someday, somewhere—maybe inone o the many orums around the world, to discuss this theme. ogetherwe can help to build the uture. Tus, it would not be appropriate to saygoodbye; instead I say: ’bye or now, hope to see you soon.



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Glossary

List of AcronymsA ampereAC alternating currentAMI advanced meter infrastructureAMM automatic meter managementAMR automatic meter readingANSI American National Standards InstituteATM automatic teller machine

B2B business to businessB2C business to client or consumerbps bits per second

CAN controller area network CDMA code division multiple access

CENELEC European Committee for Electrotechnical StandardizationCRM customer relationship managementCSD circuit switched data

DC direct current

EEPW EDF Energy Project Way EDF Électricité de France

EPRI Electrical Power Research InstituteERA Energy Retail AssociationESCO energy service company

GIS Geographic Information System



Glossary

285

TCP/IP ransmission Control Protocol/Internet ProtocolTDMA time division multiple access

UML Unified Modeling LanguageUSB universal serial bus

V voltVA volt-ampere

var volt-ampere reactiveVHF very high frequency VoIP voice over Internet Protocol

VPN virtual private network

W wattWAN wide area network WAP wireless application protocolWiMax worldwide interoperability for microwave access

Definitionscompetitive. Possessing the necessary capabilities to compete.

fossil fuel. Fuel (as coal, oil, or natural gas) formed in the earth from plantor animal remains.

high voltage. Called high-voltage B (HB in France), high voltage isdefined as the voltage range used for the transportation of electricity. Itis between 50,000 and 400,000 volts. More specifically, the range between

225 kV and 400 kV is called very high voltage (H in France). Tese values and nomenclature vary depending on country standards.

low voltage. Between 230 and 400 volts.

maintenance. All operations required for support, verification, and repair.

medium voltage. Called high-voltage A (HA in France), medium average voltage is defined as the voltage range used for the distribution of electricity.It is between 1,000 volts (1 kV) and 50,000 volts (50 kV). Tese values and

nomenclature vary by country, depending on national standards.nonrenewable energy. Energy generated from a resource that is fixed orlimited (e.g., oil, coal, gas, and uranium).




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photovoltaic. echnology that enables the production of electrical energyfrom solar radiation.

power. Energy produced per unit of time. Power is measured in watts.

pressure. Force exerted by a substance (liquid, solid, gas) on another indirect contact with it.

renewable energy. Energy derived from resources that are renewedcontinuously in nature (e.g., water, wind, sun).

voltage. Potential difference between the positive terminal and negativeterminal of an electrical device. Voltage is measured in volts witha voltmeter.



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De Medeiros Filho, S. (1997). Medição de Energia Elétrica. Rio de Janeiro,Brazil: Livros Técnicos e Cientificos.

Deteccao de Fraudes em Medição Indireta. Rio de Janeiro, Brazil: Centrode treinamento Operacional Engenheiro Edmilton Zaroni.

Di Jora Guedes, C. A história dos Medidores de Energia Elétrica.Rio de Janeiro, Brazil: Light Serviços de Eletricidade.

Edison Electric Institute. (2002). Handbook or Electricity Metering (10th ed.). EEI Publication.

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Miller, R. W. (1996). Flow Measurement Engineering Handbook.New York: McGraw-Hill.

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Chapter 2Akass, C. (2007). “Smart Meters Could Bring Free Home Hubs.”

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Forouzan, B. A. (2006). Comunicação de Dados e Redes de Computadores.Porto Alegre, Brazil: Bookman.

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Series of articles presented by the author and by third parties at differentinternational technical congresses organized by Spintelligent and/or

Synergy-events available at www.metering.com listed below: • Metering Latin America, 2005, 2006, 2007, 2008, 2009, and 2010

• South Africa Pre-payment Week, 2006

• Metering, Billing and CRM Asia-Pacific, 2006

• Metering Europe, 2008, 2009

• Grid Week 2010, United States of America

• IRIS 2010, Renewable Energy Storage Conference, Germany

• Smart Grid Brazil Forum 2010



Bibliography

289

• Smart Electricity World Latin America 2011

• Cidades Verdes 2011, Brazil

Chapter 4Baker, R. C. (2000). Flow Measurement Handbook: Industrial Designs,

Operating Principles, Perormance, and Applications. Cambridge,England: Cambridge University Press.

Edison Electric Institute. (2002). Handbook or Electricity Metering

(10th ed.). EEI Publication.Miller, R. W. (1996). Flow Measurement Engineering Handbook.

New York: McGraw-Hill.


Series of articles presented by the author and by third parties at differentinternational technical congresses organized by Spintelligent and/or

Synergy-events available at www.metering.com listed below: • Metering Latin America, 2005, 2006, 2007, 2008, 2009, and 2010

• South Africa Pre-payment Week, 2006

• Metering, Billing, and CRM Asia-Pacific, 2006

• Metering Europe, 2008, 2009

• Grid Week 2010, United States of America

• IRIS 2010, Renewable Energy Storage Conference, Germany

• Smart Grid Brazil Forum 2010

• Smart Electricity World Latin America 2011

• Cidades Verdes 2011, Brazil



291

Index

A

accuracy, 226, 243

acquisition price, 244–246

active power, 7, 9

advanced metering. See smart metering

advanced metering inrastructure (AMI),56, 66, 155, 161

advisor mode, energy package rates and,

52

advisory systems, or energy efficiency,

154

Arica, 45, 80. See also South Aricasmart metering systems in, 149–154

Agência Nacional de Energia Eletrica

(ANEEL), 159

Alaska, smart metering systems in, 156Alaska Village Electric Cooperative

(AVEC), 156

alternating current (AC)active, 7, 9adoption o, 12apparent, 7, 8–9meters or, 12power triangle or, 7reactive, 7, 8, 9use o, 7

American National Standards Institute

(ANSI), 144

American Reinvestment Recovery Act,156

ampere-hour meters, 11, 12

apparent power, 7, 8–9

appliancesload-shifing services and, 174

management o, 153perormance integration o, 269–272remote command o, 182

Te Application Home Initiative (AHI),

140

architectural organization, 71communication networks and, 75–81data management and, 72data processing and, 72–75

architecture layers, 81customer displays as, 71, 112–115HAN as, 71, 106–110in-home metering gateway as, 71,

97–106LAN as, 71, 92–97middleware as, 70, 87–90system integration as, 70, 82–87WAN as, 70, 90–92

Asia, smart metering systems in, 159–161

auditsat manuacturers’ sites, 206, 228–229o solution providers, 223

Australia, 44, 80, 168

authorities. See local authoritiesautomatic call centers

consumption inormation and, 38credit purchase and, 48

automatic meter management (AMM), 56,

66, 151, 161, 163

automatic meter reading (AMR) systems,56, 66, 155

automatic profile, remote credit purchase

and, 48

automatic reports, customer inormation

and, 38




292

automatic teller machine (AM), remote

credit purchase and, 48

average power. See active power

B

batteriesdemand-side management and, 183electronic gas meters and, 194plug-in vehicles and, 259–260

benchmarking exercises, 148–149, 208,

209. See also specific continents

billingelectricity and, 10

late payments and, 187–188losses and, 60, 61metering platorms’ integration with,

57, 85–86public streetlights and, 60–61, 254tampering and, 58traditional metering systems and, 131uncertainty and, 174

blackouts, 139, 258, 275

Bluetooth, 129, 131, 262

brainstormingconsultants and, 213customers in, 213environment or, 214idea refinement in, 214–215objectives definition or, 214recommendations or, 214requirements rom, 214–215

Brazil, 158, 159, 187

bridge devices, 94–96, 166broadband power line carrier, 93

beneficial partnerships and, 121–122broadband Internet deployments and,

121head-ends and, 122Internet services and, 121narrowband contrasted to, 120risks o, 122WAN and, 90

broadcast networks, 81arrangement o, 80communication range or, 80RF controlled systems and, 80ripple controlled systems and, 80

budgeting, 65–66coin meters and, 42debit meters and, 40–41

bus networks, 77

business modelchallenges and, 207–208review and validation o, 241–242

business-to-business (B2B) strategies, 249business-to-client (B2C) strategies, 249

C

Canada, smart metering systems in,

154–157

capacitive energy, 31cards

customized, 43, 44

disposable, 43–44preset value, 43, 44scratch, 48, 149, 264smart, 44–46

Cemig, 159

Central America, smart metering systems

in, 154, 157–159

challenges, 148business model and, 207–208collaborators and, 209

customer engagement and, 204–206uture-proofing and, 207legal requirements and, 208–209production chain and, 206

chemical meter, 11

China, 160

Chumby devices, 164, 165circuit switched data (CSD), 79

circuitscurrent, 17direct meter, 24indirect meter, 24, 25measurement, 24, 25, 254primary, 25secondary, 25, 27 voltage, 17

clandestine connections, 252, 254

Clegg, Samuel, 11

clock settings, 199–200CO

2 emissions, electric and plug-in hybrid

vehicles and, 257, 258

code division multiple access (CDMA)technology, 123, 160

coexistence, interoperability and, 140, 141

coin meters, 41–42

collaborators, 209



Index

293

communicating meters. See smart

metering

communication channelsdisplay interaces as, 238–239

or payment methods, 237–238reports as, 239–240surveys as, 240–241

communication ailures, 152–153

communication networksbroadcast, 80–81mesh, 75–77, 122, 123, 163, 255point-to-point concentrated, 77–78 virtual point-to-point, 78–79

communication technologiescomparisons o, 218

hybrid environment and, 115, 116in-home RF media as, 129–131Internet piggybacking as, 125–127low-power RF as, 122–123mobile technologies as, 123–125, 230power line carrier as, 116–122, 155–

156, 230public switched telephone network,

127–128regulation o, 115RF broadcast technology as, 128RF telecom media as, 129selection o, 230–231

communicationscustomer, 239–241laboratory tests and, 230–231

compact indirect measurement systemsaccuracy and, 29applications o, 28components o, 28

competitive, 285

competitive differentiation, 189–191complex power. See apparent power

concentrated access points, 53–54

consultants, 222, 232

consumers. See customers

consumption. See energy consumption

contracts, 243, 244controller area network (CAN) bus, 261

coriolis meters, 36

cost savings, 272

credit method, 39, 40, 111PAYG and, 196, 198

credit purchase. See also prepayment

systemsremote, 48, 50

current addition method, 30

current circuits, 17

current transormers, 25, 26–27

curtailment mode, energy package rates

and, 52–53customer display units, 38, 39

as architecture layer, 71Chumby devices as, 164, 165as communication channels, 238–239consumption understanding and, 68customer behavior change and, 167customer interaction and, 112, 174customer relationships and, 190–191customized, 112–113demand-side management and,

182–183dual-uel rates and, 111, 114energy efficiency goals and, 114existing equipment as, 112interoperability and, 141mobile smart phone as, 164, 165in Oceania, 169package o options or, 114–115PAYG and, 197, 198questions in defining, 113–114remote management and, 114smart meters and, 110, 111television-based, 112time-o-use rates and, 200–201 virtual V channel as, 197

customer loadcurrent transormers and, 25direct measurement meter and, 23, 24indirect measurement meter and, 23,

24

customer relationship management

(CRM) platorms, 70, 72, 85–86,190–191

customersbehavior change o, 156–157, 167, 177,

235brainstorming and, 213concerns o, 205–206consumption inormation or, 38–39consumption management by, 37–38,

40–41, 53, 174education campaigns or, 60, 239energy-efficiency advice or, 175–178energy-efficiency propositions or,

236–237engagement with, 204–206, 236eedback o, 233, 235, 240–241




294

with high energy demands, 158inspections and, 64interoperability and, 142–143, 281load profile and, 138, 151, 175–176mobility o, 263needs o, 4, 13, 100new services and, 2, 4nonpayment and, 40opportunities or, 173–175prepayment and, 39–41price signals and, 168privacy o, 204, 205, 239relationships with, 85–86, 190–191responsiveness to, 236retention o, 189–191

social assistance or, 191

D

data and task validation, 135–136data collection and analysis device, 65

data concentratorsbridge devices and, 95in Europe, 166handheld units and, 109

in-home metering gateways and, 93,94

LAN and, 92, 93low-concentration, 123low-power RF technology and,

122–123mobile technologies and, 125narrowband power line carrier and,

117–119, 253platorm updating and, 151WAN and, 90, 91

data exchange ormats, 144–145data integration, 56–57

data management, 56–57, 72

data ownership, system integration and,

84, 85, 86

data processing, 72, 89, 145benefits rom, 136–137comparison methods in, 138cross-reerencing eature o, 139energy discrepancy and, 139

undamentally centralized, 73–74undamentally decentralized, 74–75hybrid, 75individual load profiles and, 138intelligence center or, 139investment in, 139–140

PAYG and, 196proessionals and, 138strategy definitions and, 137–138

data security, 85, 135, 218, 226

confidentiality and, 132data validation and, 132illicit system intererence and, 131–132

data security analysisencryption procedures and, 135end-to-end environment and, 135I procedures and, 133–134risks and, 133threat identification in, 132–133traceability and, 135

data traffic analysis, 213, 216, 217

debit meters, x, 39–41, 157, 167debit method, 39–41, 111

PAYG and, 196, 198

demand-side management, 180, 197appliances and, 182batteries and, 183customer display units and, 182–183load shifing and, 181rates and, 182–183smart plugs and, 181–182South Arica and, 153, 154

Denmark, 163

diaphragm meters, 11, 34, 35differentiation. See competitive

differentiation

digital subscriber lines (xDSL), 125, 127

direct current (DC), 7, 12

direct measurement systemscustomer load and, 23, 24800-A meter and, 29measurement circuits o, 24

disconnectiono energy supply, 40, 51, 52social, 51–52

displays. See customer display units

distributed storage, 258–259

DONG Energy, 163

drive-by services, 54, 55

dual-uel metering systems, 3, 37–38, 106customer display unit in, 111, 114Europe and, 167

PAYG and, 197–198



Index

295

E

EDF Energy, 112pilot projects o, 164

EDF Group, 110, 112, 163–164Interace Clientèle Emeraude and,

98–99Light and, ixresearch and development division

o, x

Edison, Tomas Alva, 11

education campaigns, 60, 239800-A meter, 29

electric and plug-in hybrid vehicles, 169alternating current conversion rom,

183, 258–259batteries and, 259–260CO

2 emissions o, 257, 258

deployment o, 257–259recharging o, 257, 258–259, 263–265saety checks or, 264smart metering systems and, 262–265 vehicle on-board computer and, 264

electric demand, 10–11

electric energy, 10electric power, 6–9

electric vehicles. See electric and plug-in

hybrid vehicles

Electrical Power Research Institute (EPRI),

274

electricity meters, 65dual-uel inormation and, 111early examples o, 12, 13evolution o, 97–100history o, 11–14in-home metering gateway and, 93, 94,

97–100, 104, 106narrowband PLC technologies and,

118, 120new technology and, 13

electricity usage measurements, 244

electromechanical induction meters, 13,

195components o, 14, 15, 16, 17customer consumption and, 17measurement element o, 17

programmable electronic registers and,18–19reactive energy measurement by, 31register display o, 17, 68replacements o, 186

electronic meters. See static electronic

meters

electronic totalizing registers, 30

Eletricidade de Portugal (EDP), 164

emergency credit, 51–52, 152–153

emulators, 218pre-deployment testing by, 220–221solution comparison with, 219–221test environments or, 220

EnBW Energie Baden-Württemberg AG,110

Endesa, 164

ENEL, 163

energy companies’ exploration o, 5

human history and, 5nonrenewable, 286renewable, x, 169, 183, 202–203, 275,

286

energy balance, 61, 62, 185, 187, 193, 276

energy consumptioncontrol o, 4, 160customer displays and, 68customer inormation on, 38–39debit meters and, 39–41electromechanical meters and, 17

management o, 37–38, 40–41, 53, 174maximum demand and, 10–11meter sel-consumption and, 11, 59,

111, 227monitoring o, 5–6price signals and, 168profiles o, 245reduction o peak, 179–180, 258, 259totaling, 30–31

energy costs, reduction o, 191–193

energy demand, 158, 180–183

energy distributors, 147, 208–209

energy efficiency advice on, 175–178advisory systems or, 154Asia and, 159–160customer display units and, 114proposals or, 236–237in South Arica, 153, 154

energy package rates, 52–53

Energy Policy Act, 156

energy prices, reduction o, 174Energy Retail Association. See Energy UK

energy retailers, 147

energy summating. See energy totaling

energy suppliers, 149, 163




296

asset ownership and, 208–209customers and, 2, 4needs o, 2–3organizational culture and, 4requirements or, 2risks or, 2

energy thef, 62Favelas and, ixsmart grid and, xiin South America, 157

energy totalingcurrent addition method and, 30customers’ special requirements or, 30electronic totalizing register and, 30problems in, 31

Energy UK, 149, 163energy utilities. See utilities

environment, 5, 147

environmental analysis, 233–234

ERDF, 163–164

EURIDIS, 53

Europe, x, xi, 24, 45, 50, 80data concentrator deployed in, 166data transmission and technical

architecture in, 167

PLC systems and, 155, 156PLC-RF bridge device deployed in, 166smart meter deployed in, 166smart metering systems in, 161–168

European Committee or Electrotechnical

Standardization (CENELEC), 143

evaluation sequence, 223–224

F

aults, 243isolation o, 275–276losses and, 58, 60

Favelas, energy thef and, ix

Finland, 163

fiscal meters, 187, 193, 276flash rates, 201–202

ossil ueldefinition o, 285energy consumption control and, 5

France, 80, 162ERDF and, 163–164

requency shif keying (FSK) modulation,

117

uture-proofing, 67, 207

G

gas, rates and, 195

gas leak detection, 184Gas Light and Coke Company, 11

gas measurement systems, 34–37

gas meters, 65coriolis, 36design o, 34diaphragm, 11, 34, 35dual-uel systems and, 37–38electronic, 194history o, 11–14in-home metering gateway and, 93,

104, 106

LAN and, 93–96measurement conversion and, 34measurement unit o, 34narrowband PLC technologies and,

120new technology and, 13orifice, 36rotary, 34, 35saety and, 34sel-management and, 111smart metering systems and, 37

turbine, 36ultrasonic, 36, 37 valves and, 34

gas prepayment meter, 11, 12

gateway. See in-home metering gateway general packet radio service (GPRS), 47,

48, 51, 56, 79

Geographic Inormation System (GIS)

platorms, 72, 86

Germany, 110, 164

Global Positioning System (GPS), 30, 86,193

Global System or Mobile (GSM)

communications, 79, 123–125, 163

Glover, Tomas, 11

Gothenburg Energi, 163

green rates, 202–203, 264grid. See smart grid

GridWise Alliance, 274

grouped rates, 203, 262–263

grouped switch panels, 252, 254



Index

297

H

HAN (home area network)

communication technologies, 71, 106,110Europe and, 166, 167field tests or, 233handheld units and, 108–109network inrastructure o, 107–108process automation and, 108sensors and, 108smart metering systems and, 262–263,

265handheld units, 54, 55

communication and, 109

data concentrators and, 109field services and, 108–109middleware and, 109–110

hardware, tests or, 223, 224–229

head-endsbroadband power line carrier and, 122LAN and, 92–94WAN and, 90–92

health-related tests, 205, 231

high voltage, 285home area network. See HAN

communication technologies

home devices. See in-home devices

homes. See smart homes

hybrid vehicles. See electric and plug-in

hybrid vehicles

I

Iberdrola, 164

illicit activity. See also tampering; vandalismdata security and, 131–132

imaginary power. See reactive power

independent access points, 54–55

indirect measurement systemscompact integrated systems or, 28, 29current addition method and, 30customer load and, 23, 24instrument transormers and, 24, 25

measurement circuits o, 24, 25inductive energy, 31

in-home devicesconsumption inormation and, 39in-home metering gateway and, 102interoperability with, 167, 267–272

in-home metering gateway, 71, 94, 172,

196, 200, 201, 207applications and, 100–101, 231, 232asset management module o, 103

communication module o, 102, 103computational crashes and, 102customer display units and, 114data security and, 135data validation and, 136electricity meters and, 93, 94, 97–100,

104, 106gas meters and, 93, 104, 106HAN media and, 107high energy demand and, 158hybrid processing and, 75

in-home devices’ integration with, 102installation strategy or, 103–106integration module and, 102, 103interoperability and, 141, 142, 266–267load shifing and, 168, 181locations or, 103–104, 105management modules o, 103middleware and, 100, 103multiple, 106real-time services and, 100reasons or, 100

as recommended component, 106remote intervention and, 102role o, 100single, 104, 105smart plugs and, 182 virtual point-to-point networks and,

79WAN and, 91

inspectionso manuacturers’ sites, 206, 228–229technical, 63–65 visual, 63, 64

installation. See meter installation

instrument transormers, 25–28integration, end-to-end, 264

intelligence center, 61, 139

IntelliGrid, 274

interconnectivity, interoperability and,

140–141

Interace Clientèle Emeraude (ICE), 98–99International Electrotechnical

Commission (IEC), 44, 47, 143,

151–152

International System o Units (SI), 9

Internet, 264broadband power line carrier and, 121




298

credit purchase and, 48energy consumption inormation and,

38

Internet broadband piggybacking

technologies, 125–127, 172, 206Internet Protocol (IP), 268Internet Protocol version 6 (Ipv6), 144

interoperability, 67, 69, 145, 281analysis and, 141Te Application Home Initiative’s

definition o, 140Asia and, 160coexistence and, 140, 141customer displays and, 141customers and, 142–143, 281

with in-home devices, 167, 267–272in-home metering gateway and, 141,

142, 266–267interconnectivity and, 140–141middleware and, 141research and development in, 274standards and norms and, 144, 145system integration and, 82

I department, metering department and,

57, 132

I systems. See systemsItaly, 163

J

Jade, 219

K

key meters, 46–47keypad meters, 50credit purchase and, 47–48designs o, 49in South Arica, 150–153

kilo-quadergy hour (kQh), 31, 32

kilo-units, 9

kilowatt hour (kWh), dual-uel

measurement and, 38Korea, 160

Kyoto Protocol, 161, 259

L

labels, tamper evidence and, 62–63

laboratory tests, 221–222, 230–231Lacey, . S., 11

LAN (local area network) communication

technologies, 71bridge devices and, 94–96data concentrators and, 92, 93deployment o, 96Europe and, 166field tests or, 233gas meters and, 93–96head-ends and, 92–94services expansion through, 255–256

smart grid and, 96–97streetlight radio requency repeaters

and, 251streetlights and, 253telemetry and telecommand methods

and, 53legal requirements, 69, 208–209, 223

lie span tests, o smart meter components,

227–228

Light, ix, xi, 158, 159

lighting automationasset optimization through, 254–255grouped switch panels or, 252, 254measurement circuits in, 254smart metering trend in, 256

lighting service providers, 250–251

Linky project, 163

liquid crystal displays (LCDs), ailures in,

227–228

load curtailment, 180load profile, 184–185

credit and register history in, 151energy-efficiency advice and, 175–176eedback rom, 191as value-added data, 138

load shifing, 168, 174, 181

local area network. See LAN

communication technologieslocal authorities, 170–171

long-term evolution (LE) media, 129

losses, 1, 2

ault-related, 58, 60measurement circuits and, 254mistakes and, 58, 61nontechnical, 58, 60–63, 157, 159, 161,

185–187tampering and, 58, 62, 63



Index

299

technical, 58, 59, 185, 244–245

low voltage, 285

low-power RF technology, 163as communication media, 122–123

data concentrators and, 122–123requency bands and, 122HAN and, 166LAN and, 92mesh network and, 122, 123opportunities o, 123telecom opportunities with, 255in United States, 155, 156

M

maintenance, 285handheld units and, 109predictive, 193–194preventive, 254, 276remote, 194

manual metering systems, 1, 2

mapping processes, 215–217

mass technology effect, 171–172

measurement circuits, 24, 25, 254

measurement element, 17measurement system

components o, 14, 27direct, 23, 24, 29indirect, 23, 24, 25, 28, 29, 30total error o, 29

medium voltage, 285–286

mega-units, 9

mesh networksadvantages o, 75communication range and, 77

eatures o, 76modems and, 76node arrangements in, 75–76RF technology and, 77, 122, 123, 163,

166, 255

meter acquisitions, by utilities, 172–173

meter ault levels, 243

meter installationarrangements o, 33compartments and, 32, 33

efficient, 193–194external, 33handheld units and, 109internal, 33protection components and, 32–33saety and, 32–33

Meter-Bus (M-Bus), 53

metering department, I department and,

57, 132

metering gateway. See in-home metering

gateway metering systems, 67–68

dual-uel, 37–38inspections o, 63–65manual, 1, 2measurement system o, 14traditional, 131

metering test devices, 64, 65

meters. See also electricity meters;

electromechanical induction meters;

gas meters; metering systems; smartmetering; smart meters; staticelectronic metersampere-hour, 11, 12chemical, 11coin, 41–42customer needs and, 13800-A, 29energy consumption monitoring by,

5–6fiscal, 187, 193, 276

Interace Clientèle Emeraude, 98–99key, 46–47keypad, 47–50, 150–153modular, 22, 23multiuel, 162plug-in, 22, 23, 49polyphase, 12, 17, 49prepayment, x, 39–41, 157, 167rack, 23remotely managed, 50–51, 66sel-consumption in, 11, 59, 111, 227

single-phase, 17, 49smart card, 44–46split, 49submeters and, 169, 197token, 43–44utility providers’ use o, 13–14watt-hour, 11, 12

method Q, 31metrological standards, 28

Meylan, 11

microwave access (WiMax) media, 129middleware, 151, 196, 203, 207, 264

asset management module o, 88–89centralized processing and, 73communication module o, 89, 90data concentrator scheduling by, 253




300

data management and, 72data management module o, 89data processing module o, 89decentralized processing and, 75definition o, 57, 70event management module o, 88handheld units and, 109–110in-home metering gateway and, 100,

103integration management module o,

87–88interoperability and, 141as modular system, 87role o, 87system integration and, 86, 87

task management module o, 88upgrading o, 89–90mistakes, financial losses and, 58, 61

mobile phonesconsumption inormation and, 38smart metering system integration

with, 164, 165mobile technologies, 231

cost reduction and, 125coverage o, 230data concentrators and, 125

Global System or Mobile, 79, 123–125, 163

liespan and, 125reception problems and, 124single mobile operator dependence

o, 125types o, 123–124

modems, in-home, 91–92

modular meter, 22, 23

Mozambique, 150

multi-element smart meters, 169multiuel meters, in Europe, 162multimedia message service (MMS), 200,

201

multimeter account, 263

N

narrowband power line carrieradvantages o, 120

bandwidth variation o, 117bridge devices and, 94–95broadband contrasted to, 120data concentrators and, 117–119disadvantages o, 120

electricity meter and, 118, 120gas meters and, 120perormance optimization o, 117touch sensors and, 120WAN and, 90

National Institute o Standards and

echnology (NIS), 274Netherlands, 163

network address translation (NA), 79

network topology. See communication

networks

New Zealand, 168

nonrenewable energy, 286nontechnical losses, 58, 60–63

in Asia, 159Central and South America and, 157in Europe, 161reduction o, 185–187

norms, 143–145

North America, smart metering systems

in, 154–157

O

Obama, Barack, 156Oceania, 50, 168–170

operational costs, 44, 55, 156, 274, 280network management, 183, 193–194reduction o, 178–179smart procurement and, 245–246

opportunities, 147–148, 279competitive differentiation as, 189–191customer retention as, xiii, 189–191or customers, 173–175demand-side management and,

180–183efficient installations as, 193–194efficient maintenance as, 193–194energy cost reduction as, 191–193energy-efficiency advice and, 175–178financial management improvement

as, 187–188network management optimization as,

183–185operational costs reduction as,

178–179peak consumption reduction as,179–180

supply quality optimization as,183–185

orifice meters, 36



Index

301

original equipment manuacturer (OEM),

161

orthogonal requency division multiplex

(OFDM), 117, 164

P

partnerships, 121–122, 172, 262

pay as you go (PAYG), 157, 164, 174, 179,

237, 263–264data processing and, 196dual-uel arrangements and, 197–198flexibilities o, 196, 197, 198prepayment systems and, 188, 196, 198

payment methods, 65–66. See also creditmethod; debit methodcash, 238communication channels or, 237–238consumer demand and, 238electronic, 238receipts and, 238

penalties, contracts and, 243–244

photoelectric receptors, 252

photovoltaic cells, 238, 245, 286

pilot programs, 246assumption confirmation in, 233benefit realization analysis in, 241–242customer eedback in, 233customer interaction in, 235–236device quantity used in, 234–235unctional test in, 235options in, 235

PLC-RF bridge devices, 95, 166

plug-and-play installation, 193

plug-in hybrid vehicles. See electric and

plug-in hybrid vehiclesplug-in meter, 22, 23, 49

point-to-point concentrated networksadvantages o, 78bus networks and, 77disadvantages o, 78node arrangements in, 77, 78star networks and, 78

polyphase meter, 12, 17, 49

Portugal, 164

potential transormers, 25, 26power, 286power limitation, as smart meter

capability, 180

power line carrier (PLC), 49, 56, 77, 230.

See also broadband power line carrier;

narrowband power line carrierdata transmission and, 116–117ERDF and, 164

Europe and, 155, 156LAN and, 92Scandinavia and, 163streetlights and, 253United States and, 155, 156

power transormersenergy balance meters and, 185, 187,

193with integrated measurement, 187

power triangle, 7

prepayment meters, x, 39–41, 157, 167

prepayment systemscentralized processing and, 73, 74coin meters as, 41–42components o, 41decentralized processing and, 74key meters as, 46–47keypad meters as, 47–50, 150–153objectives o, 41PAYG and, 188, 196, 198remotely managed meters as, 50–51,

66smart card meters as, 44–46token meters as, 43–44

preproduction, evaluation sequence and,

224

pressure, 286

price signals, 168primary circuits, 25

PRIME, 164

PRISME, 98, 99

privacy, 204, 205, 239

procurement, smart, 245–246

procurement analysisacquisition price in, 245consumption profile in, 245indirect costs in, 242non-perormance penalties in,

243–244participants in, 243price criterion in, 242total price method and, 245

product evaluationpreproduction and, 224production series and, 224prototype in, 223test quantity in, 224

product lie, 243




302

production chain, manuacturing site

inspections and, 206, 228–229

production series, 224

programmable electronic registers, 18–19

project leader, 211protocols, 144

prototype tests, product evaluation and,

223

public lightingautomation o, 252–255challenges or, 250service providers’ challenges and, 250

public streetlights. See streetlights

public switched telephone network

(PSN), 127–128

Q

quality analysis, 243–244

QualNet, 219

R

rack meter, 23radio requency. See RF

rates, 210, 236, 268clock settings and, 199–200customer displays and, 114demand-side management and,

182–183electronic meters and, 20energy package, 52–53flash, 201–202gas and, 195

green, 202–203, 264grouped, 203, 262–263PAYG and, 196–198power actor correction and, 184, 202reactive energy based, 202in regulated markets, 195time-o-use, 195, 197, 198–201time-o-use prices and, 156–157

reactive energy measurement o, 31–32

rates and, 202reactive power, 7, 8, 9

real power. See active powerreceipts, 238

recharging stationscollective garages as, 260

in-home, 261private parking and, 261public parking and, 260

recharging systems

distributed energy and, 259–260payment methods or, 263–265 vehicle on-board computer and, 264

Rechniewski, 11

remotely managed meters, 66communication and, 50credit purchase and, 50data management and, 51

renewable energy, x, 183, 275definition o, 286green rates and, 202–203

measurement o, 169repeatability analysis, 228–229

reportsautomatic, 38as communication channel, 239–240

request or inormation (RFI), 222–223

requirements gathering process, 212brainstorming and, 213–215mapping processes and, 215–217stages o, 213

research and developmentat EDF Group, xin interoperability, 274at universities, 172

revenue protectionanalysis systems and, 61–62databases and, 61energy balance graph and, 61, 62Europe and, 161inspections and, 63–64intelligence center and, 61

nontechnical losses and, 58, 60–63,157, 159, 161, 185–187

proessional staff and, 58seal and label technologies or, 62–63in South America, 157technical losses and, 58, 59, 185,

244–245

RF, 47. See also low-power RF technology bridge devices and, 94–95, 166communication with, 230repeaters or, 251, 255

RF broadcast technology, 80, 181, 199advantages o, 128disadvantages o, 128incompatibility o, 128

RF controlled systems, 80



Index

303

RF environments, mesh networks and, 77

RF mesh technology solutions, 163, 166,

255

RF networks, 54, 255

RF technologiesin-home deployment o, 129–131saety o, 205United States and, 155, 156

RF telecom media, 129RF transmission, rain and snow events

and, 233

ripple control, 20, 80, 181, 199–200

rotary meters, 34, 35

S

saety electric vehicle recharging and, 264gas leak detection and, 184gas meters and, 34in-home metering gateway and, 101instrument transormers and, 27manuacturers’ changes and, 221meter installation and, 32–33

at recharging stations, 261o RF technologies, 205tests and, 226, 227

Scandinavia, 163

scratch cards, 48, 149, 264

seals, tamper evidence and, 62–63

secondary circuits, 25, 27security

data, 85, 131–135, 218, 226home, 267

Senegal, 150

sensorsgas detector, 184HAN and, 108smart homes and, 267touch, 120

service level agreement (SLA), 86, 216

Shallenberger, Olivier B., 12

short message service (SMS), 48, 51, 149,

200, 201, 237customer consumption inormation

and, 38 virtual point-to-point networks and,

79signal penetration, 230

simulators, 218–219, 221

single-phase meters, 17, 49

smart analysis, 254–255

smart card meterseatures o, 45

limitations o, 45–46token meters and, 44as two-way technology, 45

smart gridautomation costs and, 273–274benefits o, 274–276Brazil and, 159energy thef and, xiault isolation in, 275–276LAN and, 96–97Light and, xi

management challenges o, 273preventive maintenance in, 276renewable energy and, xsmart meter integration and, 276–277solutions or, xUnited States and, 156

smart homesautomation trends towards, 266cost savings in, 272device management in, 267–268,

269–272

smart metering and, 114, 270–272smart metering drivers, xiii, 2–3

local authorities and, 170–171mass technology effect and, 171–172partnerships and, 172periodic asset acquisition processes

and, 172–173

smart metering inrastructuresmart grid integration with, 276–277streetlight command by, 252–255

smart metering systems, 1–3, 67, 281–282.See also challenges; opportunitiesin Arica, 149–154in Asia, 159–161asset ownership and, 208–209auxiliary circuits tests or, 225, 226–

227in Central America, 154, 157–159controller area network bus and, 261data treatment and memory tests or,

225, 226

electrical influences tests or, 225electromagnetic compatibility testing

or, 225environmental saety tests or, 225, 226in Europe, 161–168field proofing tests or, 225, 226




304

unctional tests or, 225, 235gas meters and, 37HAN technology and, 262–263, 265in-home integration by, 270–272isolation tests or, 225I systems and, 231–232metrological accuracy tests or, 225,

226mobile phones’ integration with, 164,

165modem-specific equipment tests or,

225, 227modern customer displays’ integration

with, 164, 165multimeter accounts in, 263

in North America, 154–157in Oceania, 168–170operating system tests or, 225, 227organizational culture and, 4plug-in hybrid vehicles and, 262–265public lighting automation by, 252–255recharging stations and, 262–265resistance to heat tests or, 225, 226smart homes and, 114, 270–272in South America, 154, 157–159strategy determination or, 280

switch-specific devices tests or, 225,226

testing scope or, 221tokens and, 152–153traditional metering and, 131

smart meters, 58customer display units and, 110, 111electronic components’ ailures in,

227–228in Europe, 166lie span tests o, 227–228

liquid crystal displays’ ailures in,227–228

manuacturers’ changes and, 221multi-element, 169new designs o, 110sel-consumption in, 111, 227sel-management o, 111streetlight control by, 254

smart plugs, 174, 181–182, 198

smart procurement, 245–246

social disconnection services, 51–52social responsibility, 191socket meters, 23

solar-powered in-home display units, 238

solution providersaudits o, 223

or data integration, 84request or inormation and, 222

South Arica, 22, 41, 44, 149–154

South America, 50, 154, 157–159

Spain, 164specifications, 143–145

cross-reerencing o, 218defining, 218–223review and update o, 218

split meters, 49

standard transer specification (SS), 44,

47

standard transer specification/International Electrotechnical

Commission (SS/IEC) standards, 44,47, 143, 151–152

standards, 28, 143, 282concentrated access points and, 53interoperability and, 144, 145keypad meters and, 47power line carrier technology and, 117public and private, 144standard transer specification/

International ElectrotechnicalCommission, 44, 47, 143, 151–152

token meters and, 44star networks, 78

static electronic meters, 13component and unction integration

in, 21components o, 20, 21deployment o, 19energy management unctions o,

19–20measurements and, 20modular, 22, 23plug-in, 22, 23, 49rack, 23rate management and, 20reactive energy measurement by, 32socket, 23traditional, 21, 22, 196, 199

strategic alliances, 265streetlights

command o, 252–255losses and, 60–61

repeaters installed on, 251, 255telecom and, 255

submeters, 169, 197

subscriber identity module (SIM) cards,

125Sudan, 150



Index

305

supervisory control and data acquisition

(SCADA) platorm, 70, 72, 86, 89

Supplier Requirements or Smart Metering

(SRSM) Project, 149, 163

surveysqualitative, 240, 241quantitative, 240, 241

Sweden, 163

system behavior, 215

system integration, 70automatic workflow tools and, 86challenges and risks o, 82–84data exchange and, 262–265data ownership and, 84, 85, 86example o, 85external, 85geographic inormation system

platorms and, 86importance o, 82improvised I tools and, 83integration module and, 84middleware and, 86, 87online services and, 86planning o, 83risk mitigation and, 84

solution providers or, 84systems targeted or, 85–87

systems tests, 231–232

T

tampering, 54, 131, 187data processing and, 139intelligent metering technology and,

160

losses and, 58, 62, 63online analysis and, 185–186

technical architecture, 70–71, 281. See also

architectural organization; architecturelayers; requirements gathering process;

specificationsassumptions validation o, 218definition o, 69in Europe, 167field tests or, 233–235

technical inspections, 63–65technical losses, 58, 59, 185, 244–245

technical solution, 211–212

technical team, 211, 212, 213

technology. See also mass technology effectone-way, 47

two-way, 45, 47unidirectional, 44

telecom, RF coverage or, 255

telecom link, vehicle saety checks by, 264

telemetry and telecommand techniquesshort-range, 53–55wide area, 55–56

test environmentsapplication evaluations and, 220emulators and, 220new application deployment in, 232systems and, 231–232

test switches, 27

Tompson, Elihu, 12

time division multiple access (DMA)

mobile technology, 123

time-o-use rates, 195, 197, 198–201token meters, 43–44

tokenskeypad meters and, 47, 150, 152smart metering and, 152–153token meters and, 43–44

oledo, Fabio, ix, x, xi

total price method, procurement analysis

and, 245

traditional electronic meters, 21, 22, 196,

199“tragedy o the commons,” ix

transaction requency, 216–217

ransmission Control Protocol/Internet

Protocol (CP/IP), 114, 144

turbine meters, 36

Uultrasonic meters, 36, 37

Unified Modeling Language (UML), 215

United Kingdom, 41, 44, 47, 80, 162, 164Te Application Home Initiative and,

140Energy UK and, 149, 163prepayment meters in, 167renewable energy measurement in, 169

United States

low-power RF systems in, 155, 156PLC systems and, 155, 156smart grids and, 156smart metering in, 154–157

universal serial buses (USBs), upgrades

and, 194




306

universities, research and development

at, 172

use cases, 215–216

utilities

common benefits opportunities or,250–251competitive differentiation and,

189–191conservation programs o, 60customer retention and, 189–191demand-side management and,

180–183education campaigns and, 60, 239efficient installations and, 193–194efficient maintenance and, 193–194

energy cost reduction and, 191–193energy price reduction and, 174energy-efficiency advice and, 175–178energy-efficiency propositions and,

236–237financial management improvement

in, 187–188meter acquisitions by, 172–173network management optimization

and, 183–185nontechnical loss reduction and,

185–187operational costs reduction or,

178–179peak consumption reduction and,

179–180public lighting challenges or, 250social responsibility and, 191strategic alliances and, 265supply quality optimization and,

183–185 vehicle manuacturer partnerships

with, 262

V

vandalism, 62Vattenall, 163

vehiclescommunication with drivers o, 265saety checks in, 264

utility partnerships and, 262 very high requency (VHF) technology,

128

virtual point-to-point networks, 78–79

virtual private network (VPN), 48, 124

voice over Internet Protocol (VoIP), 121,

156

voltage, 286

voltage circuit, 17

volt-amperes (VA), 8 volt-amperes reactive (VAr), 8

W

walk-by services, 54, 55

WAN (wide area network) communicationtechnologies, 50, 53, 55, 56, 70, 74communication role o, 90Europe and, 166

existing platorm updating and, 152field tests or, 233hybrid environment and, 90installation locations or, 91–92middleware communication and, 89

watt hours (Wh), 53

watt-hour meters, 11, 12

wattmeter, 9

watts (W), 7wide area network. See WAN

communication technologiesWi-Fi, 77, 126, 129, 141

Chumby device and, 164, 165wireless application protocol (WAP), 48

workgroups, topics or, 211

Y

Yello Strom, 110, 164

Z

ZigBee, 77, 129, 141

Z-Wave, 77, 129



307

About the Author

Fabio de Oliveira Toledo is the president ofSGI Consulting. Up to January 2013, he workedfor Light, a former subsidiary of Electricitéde France (EDF) in Rio de Janeiro, Brazil, aschief technology officer (CO) and executivecoordinator of the smart grid program. From2005 to 2009, he was expatriated within the

EDF Group, at EDF R&D in France and in theUnited Kingdom, where he was responsiblefor managing smart grid and smart meteringR&D projects. Prior to his expatriation, hislast position was director of the Metering andRevenue Protection Department for largeaccounts at Light.

He is author of books about smart metering and smart grids (published

internationally), specialization professor, and has more than 15 years ofmanagerial and technical experience in energy markets. He has a solidtechnical education background: an MBA update in international andstrategic management from the University of Grenoble in France and theLondon School of Business and Finance (LSBF) in the United Kingdom, anMBA in business management in energy markets from Instituto Brasileirode Mercado de Capitais (Ibmec-RJ) in Brazil, another MBA in I businessmanagement from Centro Federal de Educação ecnológica Celso Suckow

da Fonseca (RJ-CEFE) in Brazil, and a postgraduate Latu Sensu inInternet, interface, and multimedia at Universidade Federal Fluminense(UFF) in Brazil.

He is multilingual (Portuguese, French, Spanish, and English) and enjoysbroad international recognition in the metering arena. He has written




308

articles in specialized publications, participated in technical conferences(chairman, panelist, speaker), been interviewed in the media (newspapers,radio, television) and participated in several work assignments abroad

(America, Europe, Asia, and Africa).oledo is also recognized internationally for his work on meteringstandardization. He represented the companies for which he workedin several international working groups of standards and norms:International Electrotechnical Commission (IEC), European Committeefor Electrotechnical Standardization (CENELEC), Te ApplicationHome Initiative (AHI), Associação Brasileira de Normas écnicas(ABN). In this framework, he was a member of the workgroups C 13(IEC-CENELEC), Interoperability Framework Initiative (IFI), AHI, andSuppliers’ Requirements for Smart Metering (SRSM) Project Energy RetailAssociation (ERA). He is also the author of several corporate specifications.

book-smart metering handbook

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