The request, which was made by South Australia distributor SA Power Networks, energy supplier Alinta Energy and metering provider Intellihub, calls for the implementation of a framework for a universal deployment of smart meters to all customers by 2030.

In addition, it calls for the implementation of a range of measures to better support customers though this accelerated rollout, including improving the information provided to them and applying new consumer protections when they receive a smart meter.

The proposed rule change was made in a letter dated 22 September 2023 following the AEMC’s completion of its review of the regulatory framework for metering services and mirrors the recommendations therein, the letter states.

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The only material difference is that the rule change request does not include the AEMC’s recommendations in relation to customer access to real-time data, as it was unlikely the changes could be implemented by 1 July 2025 – the commencement date for the acceleration of deployment.

“We have jointly proposed this rule change request because we support the recommendations in the AEMC’s final report and consider that they should be progressed as a matter of urgency,” state the signatories in the letter.

As the AEMC is unable to self-initiate a rule change request, the intent is to enable it to commence the process, they write.

Other proposed changes include improving the meter installation process by reducing barriers to installing smart meters and enabling more efficient and coordinated deployments and implementing a new regulatory framework for metering businesses to provide power quality data from smart meters to the distribution network service providers.

This would enable these providers to improve the visibility of their low voltage networks, better integrate consumer energy resources and improve safety for customers.

The requirements for undertaking tests and inspections of meters to avoid unnecessary costs also should be clarified and improved.

Smart meters status

The proposed rule change is set to have the most impact in New South Wales, the Australian Capital Territory, Queensland and South Australia where, at the time of the AEMC’s report, the average smart meter uptake was around 30%.

Tasmania has a programme in place to accelerate smart meter deployment by 2026, while Victoria has already achieved a near-universal uptake of smart meters.

While the number of smart meter deployments has been increasing each year it needs to increase substantially more from a little over 400,000 units in FY23 to over 700,000 units per year from FY26 to meet the 2030 universal rollout.

The proposed rule change based on a draft determination due on 4 April is open to comment until 30 May. The AEMC then expects to complete the process by 11 July.

The call follows the completion of ‘Project No Flow’ undertaken with the data collection provider Occutrace on the lifespan of non-household water meters, which found that the root cause of many non-consuming meters is the meter having surpassed its operational age and increasingly likely to fail.

In the project, supply point IDs with three or more meter reads showing no consumption were investigated, taken from a random sample of 2,000 supply point IDs.

Of these 771 meters identified as zero-consuming, almost two-thirds were found to be degraded to the extent of non-functionality.

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“Project No Flow has sought to establish hard facts and real-world evidence about meters that are not recording consumption to help the market understand the volume of potential zero consuming meters out there,” commented Claire Stanness, Metering Operations Manager at Wave and the project lead’.

“This first of its kind project has highlighted the issues that come with meters that are not recording consumption, issues that affect everyone.”

Along with the customers, who have to face the potential repercussions of inaccurate billing, retailers and wholesalers are also impacted with retailers having to correct and revise the bills and wholesalers seeing the impact inaccurate metering can have on the settlement process.

The study also found that many wholesalers do not have proactive replacement programmes in place for non-household meters, which would help to identify zero consuming meters and resolve the related issues sooner and thereby support the retailers in delivering reliable meter reads to their customers.

With accurate reads also comes the opportunity to identify any potential inefficiencies or cost savings for customers.

Wave suggests that to solve this issue a highly collaborative approach is needed, from the non-household water market operator MOSL, the regulator Ofwat, retailers, wholesalers, and their service providers, all working together towards a common goal of accurate and timely meter reads.

Wave also questions whether in the case of some properties being genuinely zero consuming because they were a flat above the shop or a secondary supply for the business, those meters should still be in the market or be disconnected.

The project report also suggests some potential areas that could form the basis for future metering committee or industry projects aimed at addressing issues inherent within the meter condition assessment space.

These include the introduction of a meter asset management programme and the replacement of broken meters with smart metering technology.

Specific market operational data quality weaknesses also could be tackled and new measures introduced for retailers identifying zero consuming assets.

At the outset of the project, MOSL data indicated that over 147,600 non-household water meters – approximately 11% – affecting over 113,270 occupied business premises across England were showing zero consumption.

In February 2024 Cyprus’s Electricity Authority, the state-owned energy company, awarded the tender for the smart meter rollout to CyTA at a cost of €39.9 million (US$43.4 million), according to a report in the Cyprus Mail.

However, the award was challenged by one of the other two bidders, Logicom Solutions, which had put in the lowest bid at €33.6 million.

The third from New Cytech Business Solution was at €37.6 million.

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According to the Cyprus Mail report, Logicom argued that in awarding the bid, the Authority had violated essential terms of the tender.

However, the Tenders Review Authority upheld the Electricity Authority’s decision, basing its finding on reasons of public interest.

The decision is quoted as reading: “Any further delay in implementing the contract would raise the spectre of serious repercussions both for Cyprus and for EAC customers, via the loss of financing from the European Union, by no means a paltry sum…”

In presenting the case Giorgos Petrou, chairman of the board at the Electricity Authority, had suggested that delays could raise the risk of Cyprus losing funds designated in the EU’s Recovery and Resilience Facility.

For those, according to the Cyprus Mail, the deal with the meter supplier must be finalised by March 2024.

Moreover, the Electricity Authority must receive 50,000 smart meters of which 15,000 are installed by September 2024 and by June 2026 all 400,000 smart meters must be received with 250,000 installations completed.

According to an earlier Cyprus Mail report, the Electricity Authority had earmarked a total of €50 million for the smart meter replacements, of which €35 million would come from the Recovery and Resilience Facility.

The same report also indicated that the 400,000 smart meters would correspond to about two-thirds of the metered base, with some customers staying with their traditional meters for cost or practical reasons, such as the elderly who felt that they could not effectively be served with them.

This is not the first time the rollout has been delayed. In April 2022 the bid was awarded to New Cytech but was challenged by Ningbo.

Karman is built on a custom module that leverages the NVIDIA Jetson platform for AI in order to capture and analyse data to improve grid operations and manage distributed energy resources (DERs).

A first for the Karman platform, the integration should bring a new level of data insights to Aclara smart meter implementers, with up to a stated 100 times more processing power than traditional solutions.

Local AI models also will continuously learn to improve in areas such as grid planning, grid operations, load management, customer service and more.

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“As the grid becomes increasingly more complex and dynamic, utilities need more technology options to operate a clean and reliable grid,” comments Erik Christian, Division President, Grid Automation of Hubbell, of which Aclara is a division.

“By combining Utilidata’s extensive knowledge of distributed AI with Aclara’s decades of experience providing industry-leading hardware, we’re now able to bring new, innovative, interoperable solutions to our customers, starting with smart meters.”

A company statement reports that the partnership follows the trend of market momentum and federal funding driving the utility industry’s need to modernise and report its operational efficiencies, for which distributed AI holds vast potential.

In October 2023, the Department of Energy announced $3.5 billion in funding for grid modernisation projects, including awards to Portland General Electric, Duquesne Light Company and Commonwealth Edison Company to deploy over 100,000 Karman units to increase reliability and accelerate decarbonisation and electrification.

Elizabeth Cook, Vice President of Technical Strategy of the Association of Edison Illuminating Companies, said that utilities are seeking more options for new and innovative technologies, like distributed AI, for easily accessible and actionable data.

“Utilidata’s partnership with Aclara makes it easier for utilities to integrate this important technology as the industry continues to build a smart and adaptive grid that is resilient and reliable for customers.”

Josh Brumberger, CEO of Utilidata, points to a meter-embedded distributed AI platform as only a beginning.

“There are more opportunities beyond meters within the electric grid ecosystem that can benefit from having easy to access data and predictive analytics.”

Modernising the energy grid is a complex, large-scale endeavour, ranging from distributed energy resource management to grid digitisation, smart metering to the rise of prosumers, and much more.

Grid modernisation

In the coming decades, energy needs are forecast to increase as the global population continues to rise and as countries develop and their economies grow. During this transformation, accelerating the availability of clean, renewable energy is critical to meet this growing demand while addressing climate concerns.

As the world looks to a net zero future, technological advancements in electrification are helping address challenges associated with scaling renewables and enabling them to become viable alternatives to traditional fossil fuel sources of energy.

Furthermore, as the grid evolves, the distribution, storage and management of electrical energy are changing. There is a shift from centralised power stations to distributed renewable energy- characterised by smaller and widely spread power generators, usually coupled with energy storage capacity, which feed into the distribution grid. Decentralisation results in bidirectional energy flows, where end consumers become prosumers, necessitating the evolution of new energy markets. Done right, decentralisation can promote energy resilience and reduce transmission losses.

From a technology perspective, this distributed nature of energy assets like cars, homes, and manufacturing sites is giving rise to the Intelligent Edge where analogue sensing meets digitalisation. Simply put, we need intelligence at all the critical nodes: across every energy consumption, production, distribution, and reserve modality.

Watch the full video interview with Patrick Morgan below.

Data is the lifeblood of this new technology world. To create and capture value, technology developers like ADI must interact in new ways throughout the ecosystem. Our focus is to learn and co-create, as we develop complete subsystems at the Intelligent Edge with our partners. As we grow, we are bringing in new expertise, in areas that stretch beyond the typical approaches into areas like artificial intelligence, data science, virtualisation, battery chemistry, and more. Plus, we are advancing our IP strategy to include systems and standardisation to drive the industry. In taking a holistic view of Intelligence at the Edge and in designing with the total cost of ownership in mind, we are enabling the Intelligent Edge to stretch into the key area for value creation and growth.

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There is no time to waste and with the signs of climate change all around us, a combination of innovative technology and legislation is helping us to electrify and ensure a brighter and healthier future for us all. At ADI, we look forward to engaging with the full electrification ecosystem to help realise its decarbonisation potential.

Regardless of complexities, ADI solutions aim to simplify the paradigm into Energy Conversion, Energy Management, and Energy Storage. It is our unique position in the ecosystem, across the industrial, energy, automotive and consumer markets, which provides us with a macro-to-micro perspective into the challenges and opportunities.  

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The five-year project included the deployment of 50,000 smart meters and the connection of Itron’s distribution intelligence (DI) enabled platform with Coopesantos RL’s customer information system.

With this upgrade with grid edge intelligence Coopesantos RL now has visibility and control across its diverse rural service territory, which includes mountainous and hard-to-access areas.

“Being the first cooperative to deploy smart meters in Costa Rica and Central America marks a significant step toward the modernisation of the infrastructure and distribution of electrical energy in rural areas where we provide service to all homes, businesses and industries,” said Mario Patricio Solis Solis, General Manager of Coopesantos RL.

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“Our electrical distribution deployment has been strengthened with this investment in technology and devices from Itron, automating and optimising our operational processes. We’re thrilled to continue working together as we embark on creating a reliable smart grid to prepare for the future.”

The solution was delivered via local Itron channel partners Conelectricas RL and Itecna.

Benefits anticipated by Coopesantos RL include more rapid insight and response to power outages with Costa Rica prone to extreme weather events, a reduced carbon footprint with reduced need for meter reading and increased client satisfaction with detailed insight into energy use and early detection of technical irregularities such as theft.

Coopesantos RL, headquartered in the city of San Marcos de Tarrazú, is one of four electric cooperatives in Costa Rica.

The cooperative claims 100% clean energy generation from two hydro plants, the 13MW Los Santos wind farm and growing distributed solar PV, primarily from commercial users.

In addition to energy generation and supply the cooperative offers fibre Internet services.

In 2023 the installed base of smart gas meters amounted to 55.9 million units and at a CAGR of 6.8% is projected to reach 77.6 million units by 2028, Berg Insight’s data indicates.

The annual shipment volumes amounted to 4.8 million units in 2023 and are expected to be around 5 to 5.8 million throughout the period.

The UK, Italy and Belgium were the most active markets, together accounting for the majority of the smart gas meter shipments during the year.

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While the rollouts in Italy, France and the Netherlands are largely completed, the UK market is ramping up yearly installations to reach a peak of around 3.3 million units per year during 2024–2025.

Belgium and Ireland also are expected to contribute with significant shipment volumes in the coming years. The Spanish market is expected to reach yearly shipment volumes of 1 million units by the end of the forecast period.

Smart gas meter networking

Berg Insight highlights how the smart gas meters deployed in Europe have been networked somewhat differently from the smart electricity meters.

A common model observed in the UK, the Netherlands and Belgium is to utilise a local wireless or wired interface to transmit gas data via the customer’s smart electricity meter.

A mix of 169MHz RF and 2G/3G cellular communications has been the primary model for the largest projects in which smart gas meters have been deployed independently of smart electricity meters, such as in Italy and France.

However, with the more ready availability of new types of LPWA technologies a shift in favour of these has begun.

Italy, for example, was the first to initiate large-scale adoption of NB-IoT as a primary smart meter connectivity choice and in 2023 the installed base of gas meters with NB-IoT connectivity in that country reached more than 2.5 million.

Berg Insight anticipates that by the end of the forecast period NB-IoT/LTE-M will become the go-to connectivity option for smart gas meters in several European markets, reaching an installed base of around 13.2 million units and accounting for as much as 60% of the annual shipment volumes.

The analyst also highlights the anticipated increase in the use of hydrogen in the European gas supply, with pilots underway in the UK and Italy with metering devices capable of measuring blend of hydrogen and natural gas or pure hydrogen and that interest in hydrogen meters is likely to increase as the technology matures.

With this adoption, the Bureau is foreseeing the enablement of interoperable, multi-service and secure wireless communications networks for government, utilities, service providers and enterprises in India.

Under the Revamped Distribution Sector Scheme, which was introduced in July 2021, a nationwide rollout of more than 250 million smart meters is currently underway, while also large-scale smart city development is underway with the government having allocated support towards the development of 100 smart cities in the country.

“The adoption of the Wi-SUN Alliance wireless communications specification as a standard for India by the BIS is a clear signal that the national standards body recognises the role that wireless mesh technology will play in driving the growth of smart cities in India and the rapid rollout of smart meter projects over the next few years,” commented Phil Beecher, President and CEO of the Wi-SUN Alliance.

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Reji Pillai, President of the India Smart Grid Forum and Chairman of the Global Smart Energy Federation, said the Forum has been closely associated with the Wi-SUN Alliance for over a decade and described India’s adoption of the Wi-SUN FAN as a great achievement.

“In India we should ideally make it mandatory for all smart metering and smart city applications which will ensure interoperability between different systems and reduce total cost of ownership of all applications.”

Wi-SUN’s wireless mesh technology is currently supporting the Smart City Living Lab project in Hyderabad, a partnership between the International Institute of Information Technology (IIIT-H), the government of Telangana and Ministry of Electronics and Information Technology India that serves as a test bed for smart city technologies.

The Wi-SUN Alliance is already running the Wi-SUN FAN PHY certification programme for the Indian frequency band (865-868MHz), with testing at TUV Rheinland Bangalore.

The Alliance is also working to start the certification programme for the Wi-SUN FAN specification. The test setup available for Wi-SUN FAN certification can also be used for IEEE 2857 and BIS standard IS 18010 (Part4/Sec1) compliance testing and verification.

The Wi-SUN FAN specification is aimed to support the specification and rollout of large-scale outdoor networks including smart metering projects, smart grids, street lighting and other IoT applications.

Wi-SUN Alliance member companies based in India include Cisco, Renesas, Silicon Labs, Texas Instruments, Exegin and CyanConnode.

The 30 millionth meter was connected to the network at midday on March 1 by E.ON.

With the average daily connection rate approaching 16,000, the number of connections is growing apace and corresponds to over 18 million homes, or about 70% of all homes now being connected.

“Reaching 30 million connected smart meters in over 18 million homes is another landmark milestone in pursuit of our purpose to make Britain more connected so we can all lead smarter, greener lives,” says Angus Flett, CEO of the DCC.

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Gill Baker, Director of Smart Field Connections at E.ON, says the company is delighted at having fitted the 30 millionth smart meter.

“[We] are equally proud to have fitted more than five million others before this one and are pleased to be part of this exciting milestone for Great Britain’s energy system.”

The smart meter network is considered a critical part of the nation’s energy infrastructure and an important platform for digitalising the power grid, enabling real-time data delivery to customers, network operators and suppliers.

With its use, the DCC estimates current CO2 savings at 1.125Mt/year.

DCC work programme

To advance its use, a range of initiatives are currently underway by the DCC, of which a key one is the migration of the more than 15 million first-generation SMETS1 smart meters to the network.

As of November 2023 (the last data available), almost 11.6 million SMETS1 meters were connected to the network.

Closely related is the central switching service, which is aimed to reduce the supplier switching to five working days and subsequently to 24 hours.

In particular, the ‘Enduring change of supplier’ (ECoS) programme is aimed at enhancing the security of a switch, with the essential component the replacement of a key on the smart meter. The migration from the previous programme to the ECoS is currently underway and due for completion in Q2 2024.

The third major initiative is the rollout of dual band communications hubs, which are intended to enable the smart meters to communicate in buildings such as apartment blocks or with thick walls where communication is not possible with the single band hubs – about 25% of British households.

These hubs use the 2.4GHz frequency of the single band hubs as well as a HAN frequency of 868MHz and are expected to open up the benefits of smart meters to these households.

Further updates on Britain’s smart meter rollout are expected with the release of the government’s annual review for 2023, which is included with the March release of the quarterly update.

To support the decision-making process, Microsoft has launched a guide on the North American Electric Reliability Corporation’s Critical Infrastructure Protection (NERC CIP) standards, which play a crucial role in ensuring the security and reliability of the electric grid.

Updates to NERC CIP guidelines

As of January 1, 2024, significant changes have been implemented, allowing the storage of medium- and high-impact Bulk Cyber System Information (BCSI) in the cloud, subject to specific requirements.

By embracing cloud technologies, while adhering to NERC CIP guidelines, power and utilities leaders can enhance operational efficiency, promote sustainability, and ensure grid reliability.

As the energy sector evolves, proactive engagement with NERC CIP standards will be pivotal in shaping a resilient and interconnected future.

1. Cloud Adoption and Security
   • The recent changes permit power companies to leverage cloud infrastructure for storing BCSI. While this opens up new possibilities for scalability and efficiency, it also introduces security challenges.
   • Organizations must carefully evaluate cloud service providers, ensuring compliance with NERC CIP requirements. Robust encryption, access controls, and continuous monitoring are essential.
     
2. Benefits of Cloud Adoption
   • Cloud-based storage offers flexibility, enabling seamless data sharing across geographically dispersed teams. It promotes collaboration and accelerates decision-making.
   • Scalability allows utilities to handle increasing data volumes, especially with the proliferation of smart meters and IoT devices.
   • Cost savings result from reduced on-premises infrastructure maintenance and operational expenses.
     
3. Challenges and Mitigation Strategies
   • Security Concerns: Cloud adoption introduces potential vulnerabilities. Companies must implement robust authentication mechanisms, intrusion detection systems, and regular vulnerability assessments.
   • Compliance: Organizations must align cloud practices with NERC CIP requirements. Detailed documentation, audit trails, and incident response plans are critical.
   • Data Residency and Sovereignty: Address legal and regulatory aspects of data storage locations.
   • Third-Party Risk: Evaluate cloud providers’ security practices and contractual agreements.
     
4. Future Outlook
   • The evolving landscape of cybersecurity necessitates continuous adaptation. Companies should actively participate in shaping future NERC CIP standards.
   • Collaboration among industry stakeholders, regulators, and technology experts will drive innovation and resilience.

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The first radio site successfully started operation at E.DIS north of Berlin in late 2023, with the first use case for smart metering.

With this E.DIS is no longer dependent on the availability of public mobile networks and intends to gradually transition its smart grid applications to the 450MHz network as the buildout in Germany grows towards expected completion in 2025.

Dr Alexander Montebaur, CEO of E.DIS Netz parent group E.DIS AG in turn part of the E.ON group and Deputy Chairman of the Supervisory Board of 450connect, who played a leading role in the developments around the 450MHz network in the group, commented that E.DIS subsidiary e.discom Telekommunikation was involved in the first pilot tests of the 450MHz network.

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“The introduction of the 450MHz network is an important milestone for us in order to ensure and improve communication in the energy sector in a crisis-proof manner under the constantly growing requirements such as e-mobility and the connection of numerous renewable energy plants and to drive digitalisation forward,” he said.

“We are convinced that this technology will help us to successfully meet the challenges of the energy transition.”

The 450MHz band – formerly known as the C band – has gained growing interest for military and other critical applications with characteristics such as strong signal penetration and suitability for large scale IoT applications.

While interest in the band is widespread globally, in Germany its use has been awarded to the energy and water sector backed 450connect, an organisations with equal shareholdings by Alliander, E.ON, the 450MHz consortium of regional energy suppliers and the Utility Alliance 450 of small energy and water supply companies.

The German network is being deployed by Nokia, which also is contracted for other services including maintenance until 2040.

Other key features include a dual-use role with normal operation being monitoring and control of critical infrastructures and in times of crisis for communication and other critical control measures and being backed up with a 72-hour emergency power supply in the event of power outages and enabling information exchange for speedy service restoration.

E.DIS Netz is one of the largest regional energy grid operators in Germany and operates a power grid of around 79,000km in Brandenburg and Mecklenburg-Western Pomerania.

With the publication, the data, which has been aggregated to a minimum of five smart meters on an individual feeder, is now available for access by interested parties such as local authorities, flexibility providers or academia for modelling and planning.

With the publication also, SSEN has become the first of Britain’s network operators to make such data available, having pioneered the development of an ‘open data’ portal for distribution data in the country.

“These are exciting times for accessing and utilising smart meter data. SSEN is delighted to be the first DNO to unlock the full consumption datasets at such a granular level, and to make them available on our open data portal for interested parties to access,” says Paul Fitzgerald, Smart Energy Systems Manager at SSEN.

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“Smart meter data plays a key role in supporting a cost-effective and efficient transition to net zero. As we decarbonise heat and transport and move towards low carbon technologies, knowing current demand on the electricity network will help identify new opportunities for low carbon technologies, flexibility and reinforcement.”

SSEN has over 1.8 million smart meters – about 54% coverage and increasing daily – in its two distribution areas in the north of Scotland and across central southern England recording active and reactive half-hourly consumption.

This equates to over 170 million readings per day with the opportunity for insight into 84,000 LV street-level feeders and over 36,000 distribution substations.

The systems to process and aggregate this large volume of data for publication on a daily basis were developed with CGI as SSEN’s ‘DCC adapter’ – the intermediary enabling the supplier to connect and communicate with the Data Communications Company’s (DCC) smart meter network.

A key aspect was around the methodology for sharing the data in a consistent manner and in particular aggregation to protect individual consumer privacy.

In collaboration with the other network operators agreement was reached on an aggregation level of five or more smart meters from an individual circuit on the low voltage network, with any less than five meters or sensitive sites, following data triage, being excluded.

The rollout follows the regulatory approval given in September 2023, which authorised up to $153 million for the initiative and forms part of Rhode Island Energy’s grid modernisation activities to enable the integration of renewable energies to support the state’s climate goals.

The Revelo metering platform features grid edge sensing and edge computing capabilities to manage load and support grid troubleshooting, with the Revelo meter operating on Landis+Gyr’s RF Wi-SUN network.

Additionally, the advanced grid-edge processing allows for greater consumer engagement with applications such as real-time load disaggregation and pricing information.

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“The Commission’s approval to implement our advanced metering plan is an important step in modernising the state’s energy infrastructure for the benefit of all Rhode Islanders,” said Dave Bonenberger, president of Rhode Island Energy, of the approval.

With the prospect of being able to benefit from parent company PPL Corporation’s other smart meter rollouts in Pennsylvania and Kentucky, he continued: “We’ve seen the success of these new technologies across other PPL service territories, and customers should be excited about the advantages they’ll bring to their homes and businesses.”

The rollout is timely as approximately 60% of the electricity meters across the state are nearing the end of their design life and need to be replaced.

Before the start of the rollout, which is expected to begin in 2025 and to be completed over the following three years, Rhode Island Energy intends to engage customers to provide more details about the technology in advance of installation, as well as an opt-out option.

In October 2023 Rhode Island Energy was selected to potentially receive up to $50 million in federal funding from the Infrastructure Investment Act towards its almost $300 million smart grid investment programme to improve visibility and control on its grid.

Among the plans are advanced distribution management and energy management systems and a centralised asset hub data system and geographic information system to represent a digital twin of the grid.

The rollout, launched in 2015, has seen a J$14 billion (US$90 million) investment as part of the initiative to modernise the electricity network and improve the customer experience.

Since late 2023 the project primarily focussed on St Mary parish, to the north of the capital, Kingston.

Other parishes on this eastern side of the island, including Portland and southern sections of Kingston and St. Andrew, are due to be completed later this year.

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Smart meter customers can track their consumption with the company’s MyJPS mobile app and also benefit from other services including remote connection/disconnection and account transfers and switching between postpaid and prepaid options.

“Our ongoing future-oriented approach, underscores our dedication to providing faster, more efficient service,” said Pia Baker, Senior VP of Customer Experience and Commercial at JPS.

“We are proud of the progress we have made and the positive impact it is having on our customers’ experiences.”

Under a 2018 agreement, Itron was contracted to extend the existing Gen 5 network to support the full 670,000 smart meter deployment, while the smart meters were being provided by Aclara.

In other news, JPSCo has been awarded a US$100 million financing package from IDB Invest for its 2024-2025 investment programme for the ongoing modernisation of its grid, including the smart meter deployment and transmission and distribution upgrades, and the expansion of access to new customers.

Additionally, the funding should support JPS’s continuing digital transformation through cloud-based solutions as well as the island’s electric vehicle (EV) infrastructure development, including 17 new EV charging stations.

These are expected to support a rapid rollout of renewable energies and storage technology.

Currently, approximately 14% of Jamaica’s energy supply is renewable, primarily hydro, wind and solar.

The rollout of the Rometrix 2G smart meters was launched in October 2020, with the goal to replace the approximately 1.7 million meters in Rome and neighbouring municipality Formello by the end of 2025.

Since the end of January, as of the day of writing a further almost 21,000 smart meters have been deployed.

In a statement from Acea, the Rometrix 2G smart meters are stated to represent a significant turning point in the way energy consumption is managed and monitored, allowing greater transparency in consumption, as well as the possibility of optimising energy efficiency and reducing waste.

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Through the installation of these smart meters, Rome is moving towards becoming a sustainable and intelligent city, in line with the vision of the Acea Group which considers the use of energy in a responsible manner as essential.

The Rometrix 2G smart meters provide reads on a 15-minute basis, which are transmitted to Areti’s central system and from there delivered to suppliers for invoicing.

The primary communication is PLC in the Cenelec A band (9-95kHz).

Customers with smart meters are then able to activate the ‘Chain 2’ service to access their consumption data and start enabling home automation services.

Towards the delivery of new consumption models Areti was a participant in the PlatOne Horizon 2020 project, coordinating the Italian pilot to investigate blockchain-based flexibility mechanisms with smart meter customers.

Findings from that project have now been incorporated into the newly launched RomeFlex project also using a blockchain model focussed on the delivery of flexibility in congestion and voltage management.

In the latest Europe smart meter review, Berg Insight reports that at the end of 2023, there were more than 186 million smart electricity meters – an increase of about 4% over 2022.

By 2028 the installed base is projected to grow at an over 6% CAGR to reach 78% penetration by 2028, driven by second generation rollouts in countries such as the UK, Italy, Spain and Sweden alongside first generation projects in Germany, Poland and Greece.

For 2022, the last year for which data is broken down, Italy was the largest market in terms of shipments with around 2.6 million units installed during the year.

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This was followed by the UK with more than 2.5 million units and Sweden with shipments of around 1.4–1.5 million units.

Poland and France rounded out the top five in terms of shipment volumes, while other markets with large installation volumes during the year included Austria and Belgium.

Looking ahead, as countries aim to meet targets, Berg Insight projects a total of more than 88 million smart electricity meters to be deployed across the region from 2024 to 2028.

In the period, replacements of first-generation smart meters are expected to be in the range of 25–40% of total smart meter shipments in Europe throughout the next five years, or 4–8 million units annually.

Eastern Europe

With the rollouts in many countries in western Europe and the Nordics now either well advanced or largely completed, the focus is increasingly shifting to central, east and southeast Europe, Berg Insight comments.

The outlook for the region has improved significantly over the past years with multiple major rollouts now planned or already under way. Overall, the CEE and southeast European region is expected to account for as much as half of the annual EU smart meter shipments in 2028, up from less than a third in 2022.

Looking only at the growth in annual shipment volumes of first-generation smart meter projects, all the ten fastest growing markets can be found in CEE and southeastern Europe.

Wireless technologies

Berg Insight also points to the impact on Europe’s smart metering market from the development of new wireless technologies for IoT communications and in particular the growing traction of 3GPP-based LPWA technologies such as NB-IoT and LTE-M.

Several major deployments utilising these technologies are now either underway or about to begin in Benelux, the Nordics and Baltics.

3GPP-based LPWA is expected to more than quadruple its smart meter connectivity market share throughout the forecast period.

At the moment, various forms of PLC will remain the dominant technology group in terms of installed base although standalone wireless communications options are forecast to account for over half of shipment volumes during the forecast period.

Gas smart meters

The adoption of smart metering is also growing fast in the European gas distribution market, Berg Insight reports.

At the end of 2023, the installed base was around 56 million units and is expected to increase at a rate of around 5-6 million units annually to 78 million units, amounting to a penetration of over 61%, by 2028.

Shipment volumes are expected to decrease in Italy until 2025 and then increase until the end of the forecast period while yearly shipments in France are at around 0.1 million.

The UK market is expected to gradually ramp up smart gas meter installations and reach a peak of 3.4 million units in 2025.

A significant volume of smart gas meter installations is also anticipated in additional countries over the coming years, particularly Spain and Belgium, where the former will account for almost a quarter of yearly shipment volumes in Europe by 2028.

If you analyse the decisions being made in the energy sector globally, it becomes very clear that there is a strategic movement to not only have abundant and sustainable clean energy, but to also ensure that the systems at the heart of the infrastructure itself are well protected by the most state-of-the-art security measures available.

Since we live in an era that is dominated by digital advancements, and the sheer volume of sensitive information being transferred will continue to grow, the need for robust and trustworthy security measures becomes exponentially more important. An integral part of a well-defined data security system is how the encrypted data itself is managed, alongside the ‘encryption keys’ used at various stages of the process.

Centralized control and enhanced security:

Let’s picture a scenario for a moment: You wish to set up a smart-metering AMI that includes the option for prepayment, and one of the many considerations you’ll have to make is how you’re going to protect the transfer of credit from a POS into a meter.

The simple answer is to use cryptographic algorithms to securely encrypt/decrypt the data. This is only one part of it, however, as you still need to figure out how this entire system is managed. With that in mind, there are essentially two options when it comes to managing a system like this…

The first option is to design your own system from scratch, which leaves you at the mercy of your own design choices, but it also means that your system would be proprietary. When trying to source suppliers that would be compatible with your system, you ultimately end up with a situation of ‘supplier lock in’, which has many downsides to it.

This would negatively affect the growth of your infrastructure, as many suppliers / vendors would refuse to create “unique products” that only work when used with your proprietary system. This is very limiting and not an ideal situation for the long term.

The second option is to go with an existing, already globally accepted system. The KMC (Key Management Centre) provided by the STS is a centralized secure facility for managing cryptographic keys that are used across all STS certified systems globally.

It simplifies the Key Management process by being a fully ready ‘plug and play’ option that allows you to scale your infrastructure easily without becoming complicated. It achieves this seamlessly because it was designed to be fully interoperable at all levels, no matter the size of your infrastructure, or how many suppliers/vendors you wish to have.

Read more news from STS

Mitigation of threats:

The STS subscribes to the best practices for Key-Management, Key-Security, and Key-Generation. This is then combined with a few simple, but very important features regarding the functionality of the keys themselves – Namely: KEY REFRESH, KEY EXPIRY and KEY REVOCATION. These form an important part of the latest STS Specification Suite, and when used correctly, can give each user/owner peace of mind by giving them full control of the lifespan and functionality of their keys.

These features also play a critical role in limiting the possibility of insider threats, and fraudulent behaviour such as ‘ghost vending’. If your keys are ever compromised, you can contact the KMC via a dedicated email gateway that is available 24/7 throughout the year to revoke your keys, giving you yet another layer of added security. In the unlikely event that the KMC itself is ever compromised, there is a fully functional ‘back-up’ KMC that is ready to step in, so there will be zero interruption to the services and functionality offered.

Conclusion:

In Conclusion, the energy landscape and the security requirements involved are constantly growing and evolving, and having a secure system to manage sensitive data is truly a fundamental component that cannot be overlooked. The Key Management Centre provided by the STS is one of those solutions, as it serves as a ‘fixed point’ that all Utilities, Electricity Vendors, and Prepayment System Manufacturers can rely on. No matter the size of your infrastructure, the STS and its associated KMC will provide a Simple, Trusted and Secure solution for your prepayment systems worldwide, and for the foreseeable future.

For more information about the STSA, please visit our website at www.sts.org.za

Written by STSA

The Standard Transfer Specification (STS) has become recognized as the only globally accepted open standard for prepayment systems, ensuring interoperability between system components from different manufacturers of prepayment systems.

The new tender, with a value of €24.25 million ($26.2 million), is for up to about 300,000 smart meters, with a minimum volume of 120,000 units, for delivery over one year.

The tender includes smart meters of both single-phase and three-phase direct types as well as fully equipped data concentrators and they must use the Meters and More communication protocol.

“The resilience of networks and the digitalisation of energy infrastructure are our priorities, and smart meters are important elements in the energy circuit that help us provide customers with the necessary tools on the road to energy transition,” says Mihai Pest, general manager of the Rețele Electrice companies.

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“The resilient networks of the future, which will operate digitally to integrate both localised generation sources, such as prosumers, and new types of electrified consumption, such as electric vehicles, are based on smart meters.”

The three DSOs, Rețele Electrice Muntenia, Rețele Electrice Banat and Rețele Electrice Dobrogea (previously E-Distributie Muntenia, Banat and Dobrogea) launched their smart meter rollouts in their three respective regions, which together cover about a third of the country’s distribution market, in 2015.

At the end of 2023, the over 1.5 million installed base was comprised of approximately 713,000 units in the Muntenia region in the south, which includes the capital Bucharest, 436,000 in the Banat region in the west and 376,000 in the Dobrogea region in the southeast.

Under a decision by the Romanian Energy Regulatory Authority (ANRE), in the period 2019 to 2028 when the full national rollout is targeted, Rețele Electrice Muntenia is required to instal a total of 775,405 smart meters, Rețele Electrice Banat 488,727 smart meters and Rețele Electrice Dobrogea 411,466 smart meters.

According to the latest ACER-CEER retail market review, the smart meter penetration in Romania at the end of 2022 was less than 20%.

Alongside the smart meter rollout, the three Rețele Electrice DSOs are undertaking initiatives to modernise the medium and low voltage grids.

Included in the just completed first stage is the implementation of a cloud analytics platform for managing and processing the smart meter data and opening up its access to customers to monitor and manage their consumption.

2G/3G network sunsetting is one of the biggest challenges the IoT industry faces, and energy is one of the sectors that could be impacted by the switch-off.

A consumer affected by a cellular technology change would probably upgrade their device or opt for a new SIM. However, when it comes to IoT applications, the volume and complexity of devices in the field mean this can be far more challenging.

Even if 2G will be around for several more years, the 3G switch-off is imminent and businesses need to respond quickly. In the UK, Vodafone communicated its final phase in January, EE is aiming to have closed its 3G services by the end of March 2024 and Three is targeting the end of 2024.

Companies impacted by the switch-off will need to design new planned deployments with an alternative technology in mind. As they do, they should consider how secure, resilient and flexible they can make their installations.   

While the switch-off may bring about some challenges for the sector, smart metering, through IoT connectivity, offers benefits for customers and suppliers. It helps with accurate energy consumption recording and data transfer to energy suppliers.

Cellular connectivity for smart meters means there is no need to provide communications infrastructure, and it offers scalability for providers continually adding to their IoT estate.

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2G/3G sunsetting and smart meters

For homeowners and facilities managers, smart metering means greater control of energy usage and therefore costs. For energy firms, it supports accurate bills and the ability to optimise energy distribution when and where it is needed.

However, a recent Public Accounts Committee (PAC) report found that the smart meter rollout in the UK has been too slow, and the government has been criticised for moving deadlines back and not gaining enough public support.

To add further to these challenges, it is estimated that seven million communications hubs, which form part of the electricity smart meters, will need replacing because they will lose functionality when 2G and 3G networks close.

Connected smart meters support energy management

Smart meters change how consumers and organisations use energy, for the better.

The green agenda has raised awareness and made consumers more conscientious of unnecessary wastage and high energy appliance overuse. Smart metering equips consumers to make informed decisions to reduce consumption and play a role in saving the planet.

Meanwhile, energy companies need to address the dynamic demand for power. By investing in smart meters, they enhance grid resiliency, help reduce the risk of energy blackouts and grid failures. Data from smart meters enables them to monitor, analyse and control energy production and detect and resolve anomalies faster.

Alternative connectivity solutions

IoT solutions are becoming more widespread in the energy sector as it transitions to a modern era of intelligent energy production and management. Smart meters are an example of this. Cellular is a logical choice to connect solutions reliably as it doesn’t need on-site communications infrastructure and is scalable as companies continue to rollout smart meters.

For companies grappling with network sunsetting, there are a number of cellular technology alternatives to consider. Low Power Wide Area Network (LPWAN) technologies use very low power to provide long-range cellular connectivity, using a small portion of the mature and reliable LTE bandwidth to connect devices that rely on battery technology.

Protocols like LTE-M and NB-IoT enable cellular IoT modules to not only save power when not in use, but also to transmit relatively small amounts of data with minimal power usage. They are designed to offer years of operation from a battery-driven power source.

Since data throughput is limited, but often more than enough for small data usage, simpler signal modulation schemes and less complex radio modems are needed, hence diminished power requirements. Advances in wake/sleep modes on modern hardware also contribute to these benefits.

Building a ‘smarter’ future

To build a smarter future, the security of energy networks is paramount.

Energy networks are critical national infrastructure and are often targets for cyber criminals. As new and additional devices are deployed, they could present more pathways for potential cyberattacks. That is a significant risk and safeguards are therefore needed to protect against unauthorised access to devices, networks, management platforms and cloud infrastructure. Any weaknesses in any of these is a security problem.

Given this, and the ever-present threat of cyberattacks, connectivity providers play a fundamental role in securing the connections of energy infrastructure. They must authenticate device identities and connect to grid infrastructure, IT systems and cloud destinations securely.

Cellular IoT connectivity solutions can offer flexible, reliable and scalable connectivity to meet the demand of diversified, distributed energy provided they are designed to defend against, detect and react to cyber threats.

In a cellular IoT context, security begins with the SIM, as the root of trust to authenticate devices using ‘IoT SAFE’, and extends to secure two-way communication and data through, for example secure private access point names (APNs) and encrypted virtual private networks. Security AI and automation are likely to feature heavily with capabilities such as automated anomaly detection to identify and isolate security breaches should they occur.

Next steps and considerations for smart meter companies

As well as network technology, smart meter companies should also think about the long-term, smooth running of their installations. They may need to change network operator in time, or need a more reliable network due to poor coverage or performance issues. eSIM technology enables this, offering  flexibility with remote SIM provisioning so that ‘over-the-air’ profile changes can be performed if required.

Energy companies affected by legacy network sunsetting should work with their connectivity partners to understand the alternative technologies and their suitability for smart meters. At the same time, they should assess their security provisions, resilience and level of flexibility. Energy infrastructure is transforming to provide intelligent, connected systems and cellular IoT supports this so that companies and customers can make informed decisions to optimise usage and supply. 

About the author

Paul Bullock is the chief product officer of Wireless Logic, managing the strategic partnerships across their global network.

With over 20 years of experience in the communications and internet of things (IoT) space, he has worked across a number of respected brands, including the likes of EDJX as its director of Business Development and ARM, the connectivity and device management specialists.

Additional benefits include:

• Understanding the Evolution: remain a reliable and efficient means of communication.
• Overcoming Challenges: a trusted solution amidst changing landscapes over the years, adapting and improving to meet the evolving needs.
• New Opportunities: exploring the new horizons for emerging PRIME Hybrid PLC technology applications.

Watch the full video interview below.

This interview was filmed in November 2023 at Enlit Europe in Paris, France.

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The trial, named the Boston Spa Energy Efficiency Trial (BEET) after its location in the village of Boston Spa and surrounding areas including the town of Wetherby, involves the use of the so-called ‘BEET-Box’ to turn the voltage up or down, based on smart meter data, to the level that appliances need to work most efficiently.

The BEET-Box, developed with input from voltage control specialist Fundamentals, GE Digital, Siemens and the University of Sheffield, applies an algorithm to the smart meter data on a near real-time basis on which the voltage can be optimised, with reductions leading to energy savings and in turn bill savings.

Northern Powergrid has estimated that trial participants should save an average £28 ($35) on their annual energy bills along with a carbon footprint reduction of 20kg per year.

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“BEET is a fantastic example of how we’re innovating today to deliver future benefits for our customers,” comments Mark Callum, Smart Grid Development Manager at Northern Powergrid.

“We are trialling technology that can help us increase the efficiency of our network for our customers, whilst reducing their carbon footprint and overall energy consumption. It could also bring us one step closer to decarbonising the region, by enabling the introduction of more low carbon technologies, like electric vehicles and solar panels, onto the grid.”

With network operators typically running their system within the top end of the voltage range to ensure it does not drop below the lower limit if demand surges, the concept of voltage optimisation, or conservation voltage reduction, is not new.

But its implementation with smart meter data appears to be and Northern Powergrid’s investigation was the suggestion of local resident Keith Jackson, a retired engineer from the electricity industry, who has said the possible solution came to him after having suffered excess voltage at his home and his subsequent finding that the network regulations do not incentivise such voltage trimming.

With the concept particularly beneficial for vulnerable customers, Northern Powergrid is prioritising the rollout of the solution to areas with increased levels of fuel poverty.

If the trial is successful, then it could be rolled out across the majority of its network spanning northeast England, Yorkshire and northern Lincolnshire by 2033.

Findings also will be shared with other network operators, with a national scale-up estimated to have the potential to deliver annual carbon savings of 1.1Mt and consumer bill cuts of up to £770 million.

This is in line with the state government target of 100% rollout to homes and businesses by the end of 2026 and well in advance of the national target of 2030.

Moreover, one in three homes – approximately 80,000 customers – are using state utility Aurora Energy’s aurora+ digital channel, which enables them to track their usage and energy spend and seek efficiencies on smartphones and PCs.

“We’re excited that more than 80,000 Tasmanians are now taking advantage of aurora+ but we want more to benefit from it. The cheapest kilowatt of energy is the one you don’t use,” said Aurora Energy CEO Nigel Clark.

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“Being able to see how and when you’re using energy is powerful as it provides the proof to help change habits around the home to bring down energy usage.”

Aurora+ customers also can access other benefits, such as ‘Power Hours’, which delivers value directly back to them in the form of free electricity.

In the first event of what is planned to become an ongoing feature, 36,000 customers participated and were able to use unlimited electricity, free of charge in an available time slot of their choice.

Minister Duigan said the uptake of aurora+ and the rollout of smart meters has been very pleasing.

“Our government is delivering on its commitment for Tasmanians to have the lowest power prices, and with products like aurora+, they can save even more on their energy bills.”

Aurora Energy is delivering the rollout with the local metering provider TasMetering, part of the Intellihub group.

TasMetering was set up to provide both metering and data services through a long-term agreement with Aurora Energy.

At the heart of the process is the creation and utilisation of time-based energy attribute certificates that can then validate Google’s 2030 goal to achieve 24/7 carbon-free energy use.

The initiative was launched in 2021 through a pilot in Denmark, Ireland and the Netherlands.

Flexidao provided automatic access to hourly metering data on electricity consumption and generation from clean electricity contracts via its CFE Inventory data collection and aggregation platform.

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From this data, the time-based energy attribute certificates could be created, following the approach of the EnergyTag standard.

Building on the outcomes of the pilot, Flexidao extended its work with Google across the EMEA region and is now expanding globally to cover North America, Latin America and Asia-Pacific.

As part of this global rollout, Flexidao is streamlining data collection by identifying sources for electricity data from national data hubs, utility systems and grid operators.

Flexidao also reports integrating with Google’s BigQuery data warehouse to further enhance the data collection, and collaborating with Electricity Maps, which monitors and maps carbon emissions in near real time, to incorporate hourly emission factors into the software.

“When we set out to achieve our 24/7 carbon-free energy goal, we knew that it would require a wide range of advanced tools and technologies,” says Savannah Goodman, Data and Software Climate Solutions Lead at Google.

“Flexidao has been a key collaborator on our journey, first piloting a digital solution to enable hourly clean energy validation for our facilities and now bringing this solution to scale. They are helping us accelerate our electricity management and verification process and provide us with an end-to-end solution for 24/7 carbon-fee energy reporting.”

Energy attribute certificate management

For Flexidao one of the most significant benefits reported is the adoption of an energy attribute certificate management and verification process.

The company works with energy attribute certificate registries to streamline the manual task of compiling, retiring and comparing the certificates with meter/invoice data for better oversight and management of such portfolios.

Simone Accornero, CEO of Flexidao, describes the initiative as the “kicking off a journey. This collaboration exemplifies how our tool can save organizations time and resources when monitoring their electricity supply and pursuing impactful energy procurement approaches.”

Google was a Series A investor in Flexidao in 2022.

As a member of the Google Cloud Ready Sustainability ecosystem, Flexidao intends to make its CFE Inventory software available on Google Cloud Marketplace in 2024.

The rollout marks the next phase in Xcel Energy’s company-wide smart meter rollout, which is well underway in its service areas in Colorado, Minnesota and Texas and most recently started in Wisconsin, as part of its grid modernisation programme.

The new rollouts have kicked off in Fargo and West Fargo in North Dakota and Sioux Falls in South Dakota.

The full rollout of the approximately 100,000 smart meters in each state is expected to run well into 2025.

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With the smart meters customers will be able to access real-time consumption data online or via the company app.

“This is a tool we can put in the customers’ hands that they can utilise to save some money on their bills,” Eric Pauli, Xcel Energy Community Relations Manager, told a local news channel.

“It’s [also] going to help us isolate various areas when storms come through and be able to get customers back on quickly.”

Xcel Energy launched its Wisconsin smart meter rollout in September 2023.

The rollouts in the service territories in two other states are still to start – in New Mexico tentatively scheduled for 2024 and in Michigan in 2025.

The installations are being carried out by Olameter.

Under a 2019 agreement, Xcel Energy is deploying Itron’s edge intelligence-enabled smart meters across its service territories. The agreement also included a distribution automation solution to improve visibility and management of its grid.

When you’re talking about energy transfer in a smart city, interoperability offers a multitude of benefits that enhance the efficiency, security, and functionality of the smart-metering systems (post-payment and prepayment) that are connected to the AMI (Advanced Metering Infrastructure).

Efficient resource management

Interoperability allows different components of a smart city such as transportation systems, energy grids, and public services, to communicate and share data. This facilitates more efficient resource management by optimizing the use of energy, water, and other essential resources.

The Standard Transfer Specification, or STS, is a globally accepted open standard for prepayment systems that ensures interoperability between various manufacturers and service providers. There are many other prepayment standards out there, with an array of design and functionality options to suit your market’s needs.

However, creating something ‘too customized’ can potentially lead you down the path of ‘Supplier Lock-In’ – Which is the very thing STS was created to prevent. The STS achieves this ‘true interoperability’ through a meticulous product certification process, to ensure that every system approved is compliant, so it can remain a ‘simple, trusted, and secure’ solution for all your prepayment & smart prepayment requirements.

Read more news from STS Association

Improved revenue protection

When it comes to managing resources, you also need to consider managing the risks associated with your ‘smart energy systems’, or more specifically, the cryptographic keys used in the secure encryption and transfer of credit within your AMI. This is the exact situation where having a state-of-the-art key management system becomes extremely valuable.

This is one of the core services offered by the STS Association, and features some very important security upgrades that make our system stand out. The ability to have complete control of your LIVE vending keys is of prime importance for the security of your prepayment revenue, and this is achieved through a ‘key refresh’ and ‘key revocation’ feature.

If your LIVE vending keys are ever compromised, your risk of revenue loss is very limited because you can now set the lifespan of a key (key refresh) and revoke the functionality of the compromised key (key revocation) at any time.

The Key Management Centre (KMC) encrypts the keys with a AES192 CCM (192 bit) and is a secure server facility with a fully operational backup facility, both of which can be accessed via an email gateway with 24/7 access throughout the year.

Promotion of innovation

The true interoperability achieved through STS certification opens procurement options from any approved supplier, which not only ensures innovation, but encourages a collaborative ecosystem between all enterprises involved.

In conclusion, the benefits of a truly interoperable AMI within a smart city are multifaceted, ranging from energy efficiency and functionality to security and revenue protection. As cities worldwide continue their journey toward becoming smarter and more sustainable, prioritizing interoperability remains a key factor in unlocking the full potential of these technological advancements for the benefit of everyone.

For more information about the STS Smart Metering, please visit our website at www.sts.org.za

Written by STSA

The Standard Transfer Specification (STS) has become recognized as the only globally accepted open standard for prepayment systems, ensuring interoperability between system components from different manufacturers of prepayment systems.

The update finds that world demand for electricity grew by 2.2% in 2023, less than the 2.4% growth of 2022, attributing this to declines in advanced countries due to the lacklustre macroeconomic environment and high inflation.

However, the demand is expected to rise, growing by an average of 3.4% annually through 2026 through an improving economic outlook and particularly in advanced economies the ongoing electrification of the residential and transport sectors.

Significant extra demand also is expected from outside these economies, in particular in China, India and countries in Southeast Asia.

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Notable expansion of the data centre sector also is likely, with consumption from data centres, AI and the cryptocurrency sector potentially doubling by 2026.

In 2023 the share of electricity in final energy consumption is estimated to have reached 20%, up from 18% in 2015.

To meet the IEA’s net zero by 2050 pathway, the share must near 30% in 2030 and thus electrification needs to accelerate rapidly, the Electricity 2024 publication states.

Renewables and nuclear

The report projects that low-emission generation sources, including nuclear and renewables such as solar, wind and hydro, are set to rise at twice the annual growth rate over the past five years.

By 2026 these sources are set to account for almost half the world’s generation, up from 39% in 2023.

In particular, the share of renewables is forecast to rise from 30% in 2023 to 37% in 2026 and more than offset demand growth in advanced economies such as the US and European Union and potentially also in China.

Nuclear power generation also is expected to reach an all-time high, with growth averaging close to 3% per year.

With this global coal-fired generation is expected to fall by an average of 1.7% annually through 2026.

Global CO2 emissions also are expected to decline, averaging 4% between 2023 and 2026, which is more than double the 2% in the period from 2015 to 2019.

“The power sector currently produces more CO2 emissions than any other in the world economy, so it’s encouraging that the rapid growth of renewables and a steady expansion of nuclear power are together on course to match all the increase in global electricity demand over the next three years,” commented IEA Executive Director Fatih Birol.

“This is largely thanks to the huge momentum behind renewables, with ever cheaper solar leading the way, and support from the important comeback of nuclear power, whose generation is set to reach a historic high by 2025. While more progress is needed, and fast, these are very promising trends.”

Electricity demand highlights

Some other top points from the report are as follows:

● Africa remains an outlier in electricity demand trends, with per capita demand having been effectively stagnant for more than three decades. A more than doubling in investments is required to deliver the region’s energy development and climate targets.

● Electricity prices were generally lower in 2023 than the record highs in 2022, in tandem with declines in prices for commodities such as natural gas and coal, but price trends varied widely among regions, affecting their economic competitiveness.

● Growing weather impacts on power systems highlight the importance of investing in electricity security. For example, global hydropower generation declined in 2023 due to impacts such as droughts, below average rainfall and early snowmelts in numerous regions. Diversifying energy sources, building regional power interconnections and implementing strategies for resilient generation in the face of changing weather patterns will be increasingly important.

● Rising self-consumption in distributed systems and data collection is giving rise to demand forecasting and planning and data sharing challenges. Complete data sets on distributed generation and consumption can give valuable insights into the potential for local flexibility solutions and improved data exchange between DSOs and TSOs can contribute to a more comprehensive accounting of self-consumption.

● Global smart meter investments doubled in 2022 compared to 2015, with the number of smart meters exceeding 1 billion worldwide. However, smart meter penetration varies significantly among countries and regions, from around 80% of US households to 10% in Latin America. Smart meters not only enable better and more detailed data collection but can also enable considerable cost savings.

To all Utilities and municipalities gearing up for this crucial project. Make sure you’re not left behind. The clock is ticking, the time is now.

Read more news from STS Association

In an open letter to the electricity suppliers, the regulator says a marked improvement in the delivery of smart meters to these customers is expected and supplier performance will be monitored going forward with concerns possibly subject to further action.

Also included are customers with radio teleswitch (RTS) meters that operate via long-wave radio technology and support versions of multi-rate or other complex meter types with certain functions such as switching between peak and off-peak rates or turning on heating or hot water.

“It is our view that smart meter installations for these customers have progressed more slowly than for standard credit customers, resulting in a lower overall coverage ratio of smart meters for both these groups,” writes Melissa Giordano, Ofgem’s Deputy Director Retail Systems and Processes, in the letter.

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“We are concerned about the slower progress in these areas as it represents a substantial risk to vulnerable consumers with these meter types.”

The letter notes that while the percentage of premises with a smart meter in Great Britain is approximately 60%, this is not the case for prepayment premises. There is a large variance between the larger suppliers’ smart prepayment meter customer portfolios.

In addition, in 2022 most large suppliers did not achieve their own forecast prepayment installations and a similar outcome is anticipated for 2023.

The letter expresses concern about the lack of early detection of self-disconnection, especially for vulnerable customers and also that they are unable to gain the benefits of smart meters such as more top-up options and real-time consumption data as long as they remain with traditional prepayment meters.

Approximately 900,000 homes are reliant on RTS meters in Britain, many of them in central and northern Scotland as well as some areas of England and Wales, with many still to be replaced.

Some suppliers have replaced over 75% of their RTS portfolio, whilst others have replaced less than 10%.

While the technology that supports these meters was due to be closed down on 31 March 2024, active discussions are under way in the industry to extend it to mid-2025. Ofgem expects that all RTS meters should be replaced at least 3-4 months in advance of that date.

Similarly to prepayment customers will be able to access the additional benefits that smart meters bring including in their case access to smarter tariffs.

The letter concludes highlighting that supporting and protecting vulnerable customers is a “key priority” for Ofgem.

“We will be monitoring supplier performance in these areas going forward and we expect to see a marked improvement in delivery of smart meters in both these categories.”

In the analysis ICRA states that the pace of installations is expected to witness a significant jump over the next two years, supported by the progress in tendering and the government’s focus on improving the finances of the distribution companies.

As of December 2023, 222.3 million smart meters had been sanctioned by the government, but of these 98.7 million had been awarded.

However, only 8 million smart meters had been installed as of December 2023.

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The Revamped Distribution Sector Scheme was introduced by the government in July 2021 with the objectives of improving the financial and operational efficiencies of the distribution companies, including reducing the aggregate technical and commercial losses to 12-15% by 2025 – a target not far off being reached in 2023, the Ministry of Power has reported.

A key pillar of the scheme is the nationwide rollout of smart meters, with the adoption of a ‘design, build, finance, own, operate and transfer’ model to enable the distribution companies to avoid the upfront investment cost of the meters and associated communication and IT infrastructures.

Advanced metering infrastructure service providers, who supply, finance, install and operate the systems, then bid for the projects, with the service charge per month per meter being the key parameter, ICRA notes.

ICRA also comments that the viability for the winning bidders remains largely linked with the capital costs of the smart meters and their associated infrastructure.

Further, the availability of a direct debit payment mechanism, wherein online payments received from consumers are routed from the payment gateway to the AMI service providers is likely to mitigate the counterparty credit risk associated with the distribution companies to a large extent.

However, demonstration of this mechanism remains to be seen.

ICRA states in the analysis that the expected jump in smart meter installations over the next two years should improve the billing and collection efficiency of the distribution companies.

However, it advises that while choosing customers for replacing the meters, the companies should be mindful of their consumption potential to achieve net positive savings after the installation.

Among the rollouts under way, the state smart metering jv Intellismart has an order book of approximately 20 million units.

Similarly Adani Energy Solutions has an approximately 20 million smart meter order book and is partnering with telecoms provider Airtel, which will power them with its IoT platform based on NB-IoT, 4G and 2G.

As we venture into 2024, here are my top three predictions of what will change in the energy industry this year:

Retailers will tackle transformation

This year, energy suppliers globally will confront crucial decisions on how best to transform their business for net zero, with those who fail to modernise fast enough, at risk of falling behind agile challengers.

We saw this happen in the UK market and are now witnessing it in other parts of Europe and Australia.

According to EY, 94% of energy providers say their ability to move quickly is a challenge and 62% of customers have experienced a problem using their energy provider’s digital service.

This year, retailers must ensure agility is built into the core of their technology platforms to enable innovation at speed – else high-value customers will vote with their feet as competitors rapidly launch increasingly targeted and tailored propositions.

There’s a phenomenal opportunity today for retailers to truly engage customers in their energy by creating a unified and easy-to-use experience that encompasses every device – from their EV to solar PV – and shows customers exactly how much they’re using, spending and saving, all in real time.

However, incumbent retailers can’t just bolt on these innovative offerings anymore. True transformation can only be unlocked once retailers take stock of their current digital infrastructure, strip back the hundreds of products and tariffs that are slowing them down and deploy the technologies that allow them to test and iterate as they scale.

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Energy is about to get a lot more personal thanks to AI

Customers will continue to tune into their energy use as bills are likely to climb once again this winter. High prices and engaged customers will prompt retailers to develop new propositions and personalise their offerings. Through AI tools, retailers will receive a more holistic view of the customer and what they need.

For example, establishing whether a customer has certain smart devices like an EV and solar panels. This can unlock solar matching – an AI technology that automatically charges an EV when there is excess energy available from a connected solar system. Solar charging is groundbreaking because it is essentially free, sustainable and produces zero carbon.

Through personalised recommendations, customers will feel more valued and in control of their energy use and costs.

Whilst energy costs remain top of mind for consumers, cost to serve remains top of mind for retailers in an environment where margins are still squeezed. This is where AI also plays a key role. Through deploying AI to support agents in serving customers, or even using AI to directly respond to customer queries; operational costs can be reduced, response times slashed and, if the AI is truly intelligent, customer satisfaction can increase. 

Getting back to basics – fixing the smart meter issue

Before retailers can think about real-time data and personalisation, we need higher smart meter penetration to gather these insights. Although not a novel tech, smart meters are absolutely critical to global sustainability and energy management. They play a vital role in managing the integration of distributed energy resources like solar panels and EVs.

In Europe, 13 of the 27 EU countries are moving along on their smart meter goals, however, 11 countries have barely started or don’t have any plans at all. In the UK, we’re also seeing challenges in the roll out with adoption rates at a stubborn 58% as of June 2023, below expectations. And with 11% of smart meters in Britain not working properly, it’s clear we need to get back to basics. I predict that smart meter penetration will exceed 70% in the UK next year as the industry doubles down on getting this foundational tech in place for our future energy system and as customers see the value of participating in smart meter-dependent demand response schemes like the National Grid’s Demand Flexibility Service.

As the energy industry braces for the challenges and opportunities that 2024 holds, rapid digital transformation, a boom in AI-driven personalisation, and smart meter advancements will take us a step closer to net zero.

About the Author
Melissa Gander has more than 15 years of experience in the energy industry. She became OVO Group Chief Operating Officer in 2019 and joined Kaluza in 2021 as Chief Operating Officer.