ISGF Report On AMI Rollout in Karnataka

Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses Page | 0
Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses i

P Rajendra Cholan, IAS
Managing Director
Message from MD BESCOM

I am pleased to note that India Smart Grid Forum (ISGF) supported by Shakti Sustainable Energy
Foundation (SSEF) has completed a detailed study on Enable an Electric Utility to Leverage Advanced
Metering Infrastructure (AMI) Rollout to Reduce Aggregate Technical & Commercial (AT&C) Losses.
Bangalore Electric Supply Company Limited (BESCOM) is one amongst the progressive electricity
distribution companies in India and always has been a front-runner in implementing new technologies.
BESCOM distributes electricity to over 12 million customers in Bengaluru City and adjacent districts of
Kolar, Tumakur, Ramanagara, Chikkaballapur, Chitradurga and Davanagere covering an area of 41,092
sq km. BESCOM has taken initiatives to ensure that all Bengaluru households get smart meters by
March 2025. BESCOM is the State Nodal Agency for setting up EV charging infrastructure in Karnataka.
BESCOM has implemented pre-paid meters using keypad technology along with the vending system for
temporary installations in BESCOM (other than Indiranagar Divisions) on Design Build Finance Operate
and Transfer (DBFOT) basis for 5 years for a total quantity of 80,000. BESCOM has submitted the
proposal to install 8.234 million smart meters through Revamped Distribution Sector Scheme including
consumer as well as system meter.
I congratulate ISGF for this work and wish them success in their future endeavours.
Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses i

Shakti Sustainable Energy Foundation
The Capital Court (4th Floor), Munirka

Phase III New Delhi 110067, India
Tel: +91 11 47474000, Fax: +91 11 47474043
Website: www.shaktifoundation.in
Email: [email protected]
CIN: U93030DL2009NPL194891
To,
Mr Reji Kumar Pillai
President
India Smart Grid Forum
CBIP Building, Malcha Marg
Chanakyapuri, New Delhi – 110 021.
Dr. Anshu Bharadwaj

Chief Executive Officer
Shakti Sustainable Energy Foundation
India has embarked on an ambitious journey to install smart meters for 250 million+ electricity
customers nationwide in next 4-5 years, out of which about 100 million are targeted to be completed
by end of 2023. The availability of smart meters domestically is not considered to be a major challenge;
however, the procurement of the best suited smart metering system is a challenge that needs to be
tackled.
Metering is a key component of several government programmes in distribution companies

(DISCOMs) including the Smart Metering National Programme (SMNP), the Ujwal Discom Assurance
Yojana (UDAY), the Integrated Power Development Scheme (IPDS) and the National Smart Grid
Mission (NSGM). These schemes are actively promoting smart metering to improve the billing and
collection efficiency of discoms. This study entitled “Enable an Electric Utility to Leverage Advanced
Metering Infrastructure (AMI) Rollout to Reduce Aggregate Technical & Commercial (AT&C) Losses”
by the India Smart Grid Forum with support from Shakti Sustainable Energy Foundation will provide
DISCOMs and other stakeholders with a roadmap to aid the smooth rollout of smart meters.
Shakti Sustainable Energy Foundation is engaging with DISCOMs and policymakers at the national
and state level to create enabling policies mandates for accelerating Advanced Metering
Infrastructure (AMI) in India. A key interest area is to develop interventions and business models for
DISCOMs to implement smart metering within their jurisdictions. We are pleased to know that the
technical support provided to the Bangalore Electricity Supply Company Limited (BESCOM) via the
India Smart Grid Forum (ISGF) under a Shakti-funded initiative has contributed to the AMI rollout to
reduce AT&Closses.
We anticipate that this work will set a precedence for distribution utilities across the country to plan
for the AMI rollout.
Dr. Anshu Bharadwaj

Chief Executive Officer, Shakti Sustainable Energy Foundation
Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses ii

Preface
Reji Kumar Pillai

President – India Smart Grid Forum
Chairman – Global Smart Energy Federation
High levels of aggregate technical and commercial (AT&C) losses, increased energy theft, poor
customer service and operational transparency, inefficient load management, and intermittent power
supply are all challenges faced by electricity distribution companies in India. A series of schemes was
launched by Government of India (GoI), to upgrade the distribution infrastructure and help the
discoms improve their efficiency and revenues. Under the latest program the Revamped Distribution
Sector Scheme (RDSS) launched by Government of India in July, 2021, provisions have been made to
install 250 million smart meters across the country by March, 2025. Advanced Metering Infrastructure
(AMI) or smart metering system eliminate the need for physical meter reading by the utility's
personnel visiting the customer premises which most customers would detest in the post pandemic
scenario. The implementation of smart meters technology in India gives discoms the ability to gather
real-time information on the demand for residential electricity and make informed decisions to handle
it.
ISGF with support from Shakti Sustainable Energy Foundation embarked on the project “Enable an
Electric Utility to Leverage Advanced Metering Infrastructure (AMI) Rollout to Reduce Aggregate
Technical and Commercial Losses (AT&C)”, a first of its kind study with Bangalore Electricity Supply
Company (BESCOM). This study examined the AMI hardware/software technologies and various
communication infrastructures, system integrations and Smart Meter Operations Centre (SMOC)
which provides dashboards and reports to facilitate the communication and data exchange between
two or more entities to ensure successful rollout of AMI. As part of this project ISGF evaluated the
current business models of different stakeholders across India. This study also recommends the way
forward for BESCOM, taking into account the various technology selection guidelines, system
integration framework, customer engagement strategies and outreach mechanisms required for
successful implementation of AMI.
Although the report is for BESCOM, the Smart Meter Operations Centre (SMOC) and other
recommendations are relevant for other DISCOMs in Karnataka and other states as well. We hope
thisreport will accelerate the AMI rollout in the country.
Reji Kumar Pillai
Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses iii
Authors and Acknowledgements
Authors
India Smart Grid Forum
Anand Singh implementation of policies in the following
areas: clean power, energy efficiency,
Balasubramanyam K
sustainable urban transport, climate change
Bhushan Khade mitigation, and clean energy finance. We wish
to thank Dr. Anshu Bharadwaj, CEO; Mr. Manu
Deepak Konnur Maudgal, Director - Clean Power Programme
Reena Suri and Siddharth Arora, Associate Director (Clean
Power) for providing all the necessary
Reji Kumar Pillai guidance and support for this project.
Acknowledgments We would like to thank Mr. G. Kumar Naik,

Additional Chief Secretary to Government of
India Smart Grid Forum (ISGF) would like to Karnataka for his guidance and support for this
express our sincere gratitude to Shakti project.
Sustainable Energy Foundation (SSEF) who has
extended their support to ISGF for this project We would like to thank Mr. P. Rajendra Cholan,
on Enabling an Electric Utility to Leverage Managing Director and Mr. CK Sreenath,
Advanced Metering Infrastructure (AMI) Deputy General Manager (Smart Grids and
Rollout to Reduce Aggregate Technical & Electric Vehicles), Bangalore Electricity Supply
Commercial (AT&C) Losses. SSEF seeks to Company Limited and the teams for providing
facilitate India’s transition to a sustainable all the necessary data required for this project.
energy future by aiding the design and
Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses iv

Shakti Sustainable Energy Foundation seeks to facilitate India’s transition to a sustainable
energy future by aiding the design and implementation of policies in the following areas: clean
power, energy efficiency, sustainable urban transport, climate change mitigation, and clean
energy finance.
India Smart Grid Forum is a Public-Private Partnership initiative of Ministry of Power (MoP),
Government of India for accelerated development of smart grid technologies in the Indian
power sector. The mandate of ISGF is to advise Government on policies and programs for the
promotion of Smart Grids in India, work with national and international agencies in standards
development, and help utilities, regulators and the Industry in technology selection, training
and capacity building.
Disclaimer:
The views/analysis expressed in this report/document do not necessarily reflect the Shakti Sustainable
Energy Foundation’s views. The Foundation also does not guarantee the accuracy of any data included
in this publication, nor does it accept any responsibility for the consequences of its use.
“For private circulation only”
v Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses

Contents
List of Figures .............................................................................................................................. 4
List of Tables................................................................................................................................ 5
Abbreviations .............................................................................................................................. 7
Executive Summary ..................................................................................................................... 9
1 Introduction ....................................................................................................................... 11
1.1 Background ........................................................................................................................... 11
1.2 Advanced Metering Infrastructure (AMI) ............................................................................. 12
1.2.1 Communication Technologies for AMI ......................................................................... 14
1.2.2 Smart Metering Architectures ...................................................................................... 14
1.2.3 Key Challenges .............................................................................................................. 16
1.2.4 AMI Benefits to DISCOMs and Other Stakeholders ...................................................... 16
1.3 Study Scope and Objectives .................................................................................................. 19
1.4 Study Methodologies ............................................................................................................ 19
2 Review of AMI Projects in India........................................................................................... 21
2.1 AMI Initiatives in India .......................................................................................................... 21
2.1.1 Integrated Power Development Scheme (IPDS) ........................................................... 21
2.1.2 Ujwal Discom Assurance Yojana (UDAY) ....................................................................... 23
2.1.3 National Smart Grid Mission (NSGM) ........................................................................... 23
2.1.4 Revamped Distribution Sector Scheme ........................................................................ 23
2.2 On-Going AMI Projects in India ............................................................................................. 24
2.2.1 Completed Smart Metering Projects in India................................................................ 24
2.2.2 EESL/IntelliSmart Projects ............................................................................................. 25
2.2.3 TPDDL AMI Project ........................................................................................................ 26
2.3 Smart Metering Standards .................................................................................................... 27
2.3.1 Smart Metering Standards in India ............................................................................... 28
2.3.2 Global Standards in Smart Metering ............................................................................. 28
3 Ground Work by DISCOMs for AMI ..................................................................................... 30
3.1 Basic Preparedness ............................................................................................................... 30
3.2 The Key Issues to be Addressed ............................................................................................ 30
3.2.1 Technical Capabilities .................................................................................................... 30
3.2.2 Managerial Capabilities................................................................................................. 31
3.2.3 Enabling Ecosystem....................................................................................................... 31
3.3 Other Important Measures ................................................................................................... 31
Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses 1

3.4.1 Absence of Skilled Manpower ....................................................................................... 32
3.4.2 Limited Awareness ........................................................................................................ 32
3.4.3 Weak Procurement Framework .................................................................................... 32
3.4.4 Customer Engagement .................................................................................................. 33
3.4.5 Implementation of AMI ................................................................................................. 33
4 Assessment of the Current Metering Scenario in DISCOMs in Karnataka .............................. 34
4.1 Introduction........................................................................................................................... 34
4.2 Metering, Billing and Collection System ............................................................................... 34
4.3 Energy Accounting................................................................................................................. 37
4.4 AT&C Losses .......................................................................................................................... 37
4.5 IT and OT Systems ................................................................................................................. 38
4.5.1 IT and OT Applications................................................................................................... 39
4.6 Present Baseline Parameters/KPIs ........................................................................................ 40
5 AMI Implementation Strategy............................................................................................. 41
5.1 Necessary Hardware/Software Technology and Services ..................................................... 42
5.1.1 Smart Meters................................................................................................................. 42
5.1.2 Communication Infrastructure ...................................................................................... 43
5.1.3 Head End System ........................................................................................................... 43
5.1.4 Meter Data Management System (MDMS)................................................................... 44
5.1.5 Customer Engagement Platform (CEP) ......................................................................... 45
5.1.6 Outage Management System ........................................................................................ 46
5.1.7 Demand Response System ............................................................................................ 46
5.2 Smart Meter Operations Centre (SMOC) .............................................................................. 47
5.2.1 SMOC Systems and Resources ...................................................................................... 49
5.2.2 SMOC Application Suite ................................................................................................ 50
5.2.3 Existing Applications...................................................................................................... 50
5.2.4 Other Applications and Resources ................................................................................ 51
5.2.5 Key Architectural Design Principles ............................................................................... 52
5.3 SMOC Enterprise Architecture .............................................................................................. 54
5.3.1 SMOC Asset Management............................................................................................. 55
5.3.2 SMOC Dashboards and Reports .................................................................................... 56
5.3.3 Smart Meter Monitoring ............................................................................................... 57
5.3.4 Ticket Management using Control Desk ....................................................................... 58
5.3.5 IT Application Monitoring.............................................................................................. 58
5.4 System Integration Framework ............................................................................................. 59
2 Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses

5.5 KPI Targets of AMI System .................................................................................................... 60
5.6 Pay-for-Performance Program.............................................................................................. 61
5.7 KPIs and SLAs ........................................................................................................................ 61
6 Business Models ................................................................................................................. 66
6.1 Cost Estimates and Cost-Benefit Analysis of AMI ................................................................. 66
6.1.1 AMI - Drivers and Stakeholders .................................................................................... 66
6.1.2 AMI System Costs ......................................................................................................... 66
6.1.3 Cost Benefit/Cost Value Analysis Fundamentals .......................................................... 67
6.1.4 Case Studies .................................................................................................................. 67
6.2 Business Models ................................................................................................................... 70
6.2.1 Drivers of AMI Business Case ........................................................................................ 70
6.2.2 Utility Owned Model..................................................................................................... 72
6.2.3 Managed Service Provider Model................................................................................. 72
6.2.4 Finance Build Own Operate Transfer (BOOT) Approaches ........................................... 73
6.2.5 Other Innovative Business Model ................................................................................. 73
6.2.6 Cost Recovery ............................................................................................................... 74
6.3 Evaluation of Business Models to Finance the AMI Project ................................................. 74
7 AMI Rollout Recommendations ........................................................................................... 76
7.1 Technology Selection Guidelines .......................................................................................... 76
7.2 System Integration Framework ............................................................................................ 77
7.3 Customer Engagement Strategies and Outreach Mechanisms ............................................ 77
7.4 Risk Mitigation Mechanisms ................................................................................................. 79
7.4.1 Cyber Security ............................................................................................................... 79
7.5 Impact on Customers and DISCOMs ..................................................................................... 81
7.5.1 Resources and Change Management ........................................................................... 82
7.6 Recommendations ................................................................................................................ 83
8 Advanced Analytics ............................................................................................................. 84
8.1 Benefits of Advance Analytics............................................................................................... 85
8.1.1 For Customers ............................................................................................................... 85
8.1.2 For Grid Optimization and DER Integration .................................................................. 85
8.2 Applications of Data Analytics .............................................................................................. 85
8.2.1 Data Validation ............................................................................................................. 86
8.2.2 Tamper and Missing Information ................................................................................. 86
8.2.3 Energy Audit and Accounting ....................................................................................... 87
8.2.4 Peak Demand ................................................................................................................ 87
8.2.5 Consumer Profile Analytics ........................................................................................... 88

8.2.6 Load Forecasting ........................................................................................................... 88
8.2.7 Abnormal Behavior Identification ................................................................................. 89
8.3 Select Use Cases of Advanced Analytics with AMI ................................................................ 89
8.3.1 Electricity Theft Detection using AI Driven Smart Meter Data Analytics ...................... 89
8.3.2 Accurate Demand and RE Forecasting .......................................................................... 90
8.3.3 Using Machine Learning and Deep Learning for Energy Forecasting ............................ 90
8.3.4 Applying Artificial Intelligence for Metering, Billing and Collection ............................. 91
8.3.5 Cash Flow Improvement and Revenue Recognition Application Platform ................... 92
8.3.6 Outage Management Digitalization .............................................................................. 93
Appendix I - Smart Metering Implementation Status in India....................................................... 95
Appendix II - Framework for Smart Meter Rollout Based on Leasing and Services Model.............. 97
Appendix III - Smart Mater Installations and Projected Developments by Investor-Owned Electric
Utilities in USA ........................................................................................................................... 99
List of Figures
Figure 1-1: Smart meter network.......................................................................................................... 12
Figure 1-2: AMR and prepaid meters .................................................................................................... 12
Figure 1-3: Typical architecture of AMI................................................................................................. 13
Figure 1-4: AMI architecture deployed by Enel (Italy) .......................................................................... 14
Figure 1-5: AMI architecture deployed by center point energy (USA) ................................................. 14
Figure 1-6: AMI architecture with RF mesh as last mile ....................................................................... 15
Figure 1-7: Emerging architecture for smart grid and smart city.......................................................... 15
Figure 1-8: Communication architecture for next generation smart metering – IP metering ............. 15
Figure 1-9: AMI benefits........................................................................................................................ 16
Figure 2-1: ADR with smart meter architecture.................................................................................... 26
Figure 2-2: Overall Architecture of AMI at TPDDL ................................................................................ 27
Figure 4-1: Schematic for billing and MIS at subdivision level .............................................................. 35
Figure 4-2: IT and OT systems ............................................................................................................... 38
Figure 5-1: AMI solution components................................................................................................... 41
Figure 5-2: Hardware/Software technology and services..................................................................... 42
Figure 5-3: Smart meters ...................................................................................................................... 42
Figure 5-4: Communication infrastructure ........................................................................................... 43
Figure 5-5: Smart meter operations centre .......................................................................................... 47
Figure 5-6: SMOC system and resources .............................................................................................. 49
Figure 5-7: Key architecture design principles ...................................................................................... 52
Figure 5-8: SMOC solution architecture................................................................................................ 54
Figure 5-9: AMI data processing ........................................................................................................... 55
Figure 5-10: SMOC asset management ................................................................................................. 56
Figure 5-11: SMOC dashboard and reports........................................................................................... 57
Figure 5-12: Smart meter monitoring ................................................................................................... 57
Figure 5-13: Ticket management using control desk ............................................................................ 58

Figure 5-14: IT application monitoring.................................................................................................. 59
Figure 6-1: AMI costs ............................................................................................................................ 67
Figure 6-2: Average installation cost per meter breakdown in USA (refer Appendix III for Smart
Meter Status in USA) ............................................................................................................................. 71
Figure 6-3: IntelliSmart business model................................................................................................ 73
Figure 7-1: TPDDL customer engagement programs ............................................................................ 79
Figure 8-1: Missed read of some of the meters .................................................................................... 86
Figure 8-2: Outage duration .................................................................................................................. 86
Figure 8-3: Typical Energy Audit (Intra-Day) ......................................................................................... 87
Figure 8-4: Peak and Off-Peak patterns ................................................................................................ 87
Figure 8-5: Consumer profile on a particular day ................................................................................. 88
Figure 8-6: Consumption pattern during weekends ............................................................................. 88
Figure 8-7: Consumer profile of particular day ..................................................................................... 89
Figure 8-8: AI based demand and RE forecasting ................................................................................. 90
Figure 8-9: Online detection of power system events .......................................................................... 91
Figure 8-10: Smart meter dashboard .................................................................................................... 92
Figure 8-11: Defaulter prediction AI application in use at utilities of NCR Delhi and Ahmedabad ...... 92
Figure 8-12: Smart meter dashboard – Actual and predicted data ...................................................... 93
Figure 8-13: Consumption of customer payments ............................................................................... 93
Figure 8-14: Outage management digitalisation .................................................................................. 94
Figure 0-1: AMI rollout framework based on ‘Leasing and Services’ model ......................................... 98
List of Tables
Table 1-1: Communication technologies for AMI ................................................................................. 14
Table 2-1: Smart grid pilot projects under IPDS .................................................................................... 21
Table 2-2: Smart grid pilot projects under NSGM ................................................................................. 23
Table 2-3: Ongoing AMI projects in India.............................................................................................. 24
Table 2-4: Completed smart metering projects in India ....................................................................... 24
Table 2-5: IntelliSmart smart metering projects in India ...................................................................... 26
Table 2-6: TPDDL AMI project ............................................................................................................... 27
Table 2-7: Global standards in smart metering..................................................................................... 28
Table 4-1: DISCOM wise AT& C loss trajectory up to 2021-22 .............................................................. 37
Table 4-2: IT and OT systems ................................................................................................................ 38
Table 4-3: IT and OT applications .......................................................................................................... 39
Table 4-4: KPI parameters ..................................................................................................................... 40
Table 5-1: Key performance indicators ................................................................................................. 60
Table 5-2: Performance criteria with penalties .................................................................................... 61
Table 5-3: Service levels for HES specific services................................................................................. 62
Table 5-4: Severity levels (P1/P2/P3/P4) .............................................................................................. 64
Table 5-5: Penalty applicable for different severity level ..................................................................... 64
Table 5-6: IRR calculation for smart meters.......................................................................................... 64
Table 6-1: SCE smart connect costs and benefits ................................................................................. 68
Table 6-2: AMI cost calculations ........................................................................................................... 69
Table 6-3: AMI benefit calculations ...................................................................................................... 69
Table 6-4: Cost benefit analysis for AMI ............................................................................................... 70

Table 6-5: AMI business models ........................................................................................................... 71
Table 7-1: Smart meter technology selection guidelines ..................................................................... 76
Table 7-2: Understanding consumer profile ......................................................................................... 78
Table 7-3: Consumer education and engagement tools ...................................................................... 78
Table 7-4: Technologies and process to securely enable AMI.............................................................. 80
Table 7-5: Resource and change impact of AMI implementation ........................................................ 82
Table 0-1: Smart metering implementation status in India.................................................................. 95
Table 0-2: Smart meter installations and projected deployments by investor-owned electric
companies ............................................................................................................................................ 99

Abbreviations
ADR Automated Demand Response
AMI Advanced Metering Infrastructure
AMR Automatic Meter Reading
AMRUT Atal Mission for Rejuvenation and Urban Transformation
AT&C Aggregate Technical & Commercial
BESCOM Bangalore Electricity Supply Company Limited
BIS Bureau of Indian Standards
CEA Central Electricity Authority
CIS Customer Information System
DAS Distribution Automation System
DBFOT Design Build Finance Operate and Transfer
DCU Data Concentrator Unit
DISCOM Distribution Company
DMS Distribution Management System
EAI Enterprise Application Integration
EESL Energy Efficiency Services Limited
ETD Electro Technical Division
FAN Field Area Network
GIS Geographical Information System
GoI Government of India
GoK Government of Karnataka
GVP Gram Vidyuth Prathinidhi
HAN Home Area Network
HES Head End System
IPDS Integrated Power Development Scheme
ISGF India Smart Grid Forum
LAN Local Area Network
MDAS Meter Data Acquisition System
MDMS Meter Data Management System

MoP Ministry of Power
MWM Mobile Workforce Management
NAN Neighbourhood Area Network
NIC Network Interface Card
NIIF National Investment and Infrastructure Fund
NSGM National Smart Grid Mission
NTP National Tariff Policy
OMS Outage Management System
RDSS Revamped Distribution Sector Scheme
RPO Recovery Point Objective
RTO Recovery Time Objective
SEB State Electricity Board
SLA Service Level Agreement
SMNP Smart Meter National Programme
SMOC Smart Meter Operations Center
SOA Service Oriented Architecture
SSEF Shakti Sustainable Energy Foundation
ToU Time of Use
TRM Total Revenue Management
UDAY Ujwal Discom Assurance Yojana

WAN Wide Area Network

Executive Summary
The metering industry has taken rapid strides in the recent years from automated meter reading
(AMR) to Advance Metering Infrastructure or smart metering, using bi-directional communication,
thereby enabling greater benefits to electricity distribution companies (DISCOMs), customers and
society. Advanced Metering Infrastructure (AMI) is an integrated system of smart meters,
communication networks, and data management systems that enables utilities to offer new time-
based tariff and incentives that encourage customers to reduce peak demand and manage energy
consumption and their bills. Government of India (GoI) launched its first smart metering initiatives in
2013 through 11 smart grid pilot projects across India, followed by various programs and initiatives
for reform programs such as Integrated Power Development Scheme (IPDS), Ujwal Discom Assurance
Yojana (UDAY), National Smart Grid Mission (NSGM) and Smart Meter National Programme (SMNP).
GoI has provided funds to the state governments for implementation of smart metering under NSGM
and IPDS. As of May 2022, a total of 11.24 million smart meters have been sanctioned under these
schemes, of which 4.42 million have been deployed across the various states in India.
To give a further push to reform the distribution sector, GoI announced Revamped Distribution Sector
Scheme (RDSS) in July 2021 with an outlay of INR 303,758 crore over a period of five years from FY
2021-22 to FY 2025-26 with the objective to improve the quality, reliability and affordability of power
supply to consumers through a financially sustainable and operationally efficient distribution sector.
The scheme aims to reduce the AT&C losses across pan India level to 12-15% by 2024-25 by improving
the operational efficiencies and financial sustainability of all state owned DISCOMs and Power
Departments excluding private sector DISCOMs.
Karnataka is the seventh largest state in India in terms of power generation capacity with a total
installed capacity of 30.68 GW, as of May 2022. The state has a high renewable energy potential of
about 30 GW. Karnataka is among the few states where installation of prepaid electricity meters at
public facilities has started under UDAY. Bangalore Electricity Supply Company Limited (BESCOM) has
taken initiatives to ensure that all Bengaluru households get smart meters by March 2025. BESCOM
distributes electricity to over 12 million customers in Bengaluru City and adjacent districts of Kolar,
Tumakur, Ramanagara, Chikkaballapur, Chitradurga and Davanagere covering an area of 41,092 sq
km. BESCOM is owned by the GoK and is one of the advanced DISCOMs in India and has always been
a front runner in implementing new technologies. BESCOM is the State Nodal Agency for setting up
EV charging infrastructure in Karnataka.
ISGF prepared a detailed Smart Grid Roadmap for BESCOM in 2020. Building on the earlier initiatives
ISGF and BESCOM decided to mutually undertake an evaluative study on the AMI Rollout for the
DISCOMs. The primary key findings of the study are as follows:
 AMI is more than a strategy to increase the meter-to-cash process; it is also a driver for major
changes in DISCOM operations technology
 Large-scale AMI deployments will differ from previous utility-managed investment
programmes. To design a technology-enabled management framework for project
governance and AMI implementation, they will need to come up with new ideas
 The most common meter-level communication technologies are radio frequency (RF) mesh
and cellular, which helps to optimise asset management and reduce AT&C losses
 Usage of innovative tools and techniques facilitates customer more control over their
electricity consumption

 Life of the smart meter may be mandated to be minimum 10 years to reduce the tariff impact
on customers
Layout of this Report: The report comprises of following chapters:
Chapter 1 lays out the foundation of the study and provides background of AMI, communication
technologies, smart metering architectures, benefits and key challenges sophisticated in the AMI
rollout. It also elaborates the study scope, objectives and methodology for the study. Chapter 2 gives
the review of AMI projects in India in terms of AMI initiatives, smart grid pilot projects sanctioned
under R-APDRP/IPDS. In addition, some case studies – the ongoing and completed AMI projects in
India are covered. It also covers the global smart metering standards and standards used in India
required for AMI rollout. Chapter 3 presents the ground work by DISCOMs for AMI and which
provides technical and managerial capabilities to implement AMI eco system at DISCOM level.
Chapter 4 describes the existing metering scenario in Karnataka State DISCOMs covering all facets of
the metering, billing, collection, energy accounting, AT&C losses, IT/OT systems and communication
infrastructure. Karnataka was the India’s first state use alternating energy, and to establish a
professionally managed power corporation to plan, construct, operate and maintain power
generation projects across the state. With this, BESCOM has taken initiatives to ensure that all
Bengaluru households get smart metres by March 2025.
Chapter 5 presents the AMI hardware/software technologies and various communication

infrastructures, system integrations and Smart Meter Operations Centre (SMOC) which provides
dashboards and reports to facilitate the communication and data exchange between two or more
entities to ensure successful rollout of AMI. Chapter 6 evaluates the current business models of EESL
and other utilities across India. Chapter 7 recommends the way forward for DISCOMs, taking into
account the various technology selection guidelines, system integration framework, customer
engagement strategies and outreach mechanisms required for implementation of AMI. Finally
Chapter 8 gives the advanced analytics for AMI data using tools like Artificial Intelligence (AI) and
Machine Learning (ML). It describes about various business cases implemented across utilities.

1 01 Introduction
1.1 Background
Electricity distribution companies (DISCOMs) are the critical element of the electricity chain, but they
are often considered the weakest link. Created as part of electricity reforms beginning in the late
1990s, these were part of the unbundling of the former State Electricity Boards (SEBs), which were the
vertically integrated utilities. Most DISCOMs remain 100% state owned, but buy or procure power
from a variety of generators comprising state owned, central and private. Electricity DISCOMs in India
face the daunting task of meeting the increasing demand for electricity by providing reliable electricity
services while at the same time making efforts to recover operational costs and constantly allocating
capital to invest in upgrading the electricity infrastructure. Continuously increasing residential
demand, which accounts for a fourth of the country's electricity consumption, adds up to the DISCOM
challenges. However, DISCOMs lack an appropriate understanding of household level electricity usage
trends and their temporal and seasonal variance. The limited information about electricity use from
conventional meters at a low frequency (once a month) does not render it suitable for demand
analysis.
The main emphasis was on reducing DISCOMs operating losses, calculated by aggregate technical and
commercial (AT&C) losses. A number of central government schemes are aimed to get AT&C losses
below 15%. Decades of energy policy based on redistribution of social services have culminated not
only in productivity but also contradictions with important consequences for the future of DISCOMs.
Income from DISCOMs was not matched with their cost structures but held afloat through a blend of
subsidies and cross-subsidies. Commercial and Industrial consumers overpaid to partly cover tariffs
set well below residential and agricultural prices. The ostensibly independent electricity regulatory
commissions routinely depended on a second layer of cross-subsidy in customer groups, with
telescopic slabs or graded levels of progressive pricing.
The implementation of smart meters technology in India gives DISCOMs the ability to gather real-time
information on the demand for residential electricity and make informed decisions to handle it.
Government of India (GoI) launched its first smart metering initiatives in 2012 through 11 smart grid
pilot projects across India. DISCOMs who invested in smart meters are reaping rich benefits presently
and have ensured business continuity and resiliency.

Figure 1-1: Smart meter network
Advanced Metering Infrastructure (AMI) or smart metering system eliminate the need for physical
meter reading by the utility's personnel visiting the customer premises which most customers would
detest in the present scenario. Ministry of Power (MoP), GoI was planning to install 250 million smart
meters across India in next 4-5 years. Smart metering is expected to provide benefits for all
stakeholders; however, its technical and business implications need to be articulated for each DISCOM
considering the existing systems in order to plan successful rollout and design the IT architecture and
system integration to derive maximum benefits to all stakeholders.
1.2 Advanced Metering Infrastructure (AMI)
Electric utility metering has been making gradual progress since 1970s when South Africa introduced
prepaid metering system in certain localities where it was difficult to collect money. Later in the 1980s
some utilities in USA tried with automatic meter reading (AMR) to read meters installed in hazardous
or in-accessible locations. While prepaid meters progressed from keypad operated meters to two-way
smart card operated pre-payment system in the 1990s, the AMR technology progressed rapidly from
walk-by AMR (standing near a meter and down loading the readings with a hand held unit) to drive by
AMR to fixed line AMR. Both these systems (prepaid meters and AMR) are still in use in different
geographies to address specific business needs of DISCOMs.
Figure 1-2: AMR and prepaid meters

AMI is a new metering technology started development in early 21st century. The key difference
between AMR and AMI is that AMR require only one way communication (meter to utility’s computer),
AMI require two-way communication between the meter and the utility’s computer. With AMI, a
meter can be programmed as prepaid or post-paid, the firmware inside the meter can be upgraded;
and the meter can be disconnected and connected back remotely. AMI also deploy advanced software
solutions such as meter data management system (MDMS) that can facilitate a whole new set of new
services for the utility.
AMI comprises of smart meters, Data Concentrator Units (DCUs)/gateways/routers/access points,

Head End System (HES), Meter Data Management System (MDMS) communicating over bi-directional
Wide Area Network (WAN), Neighbourhood Area Network (NAN)/Field Area Network (FAN) and Home
Area Network (HAN). Multiple smart meters can connect to a DCU/gateway/router/access point which
in turn send aggregated data to the HES. The smart meter can also directly communicate with the HES
using appropriate WAN technologies (for example GPRS sim cards in the smart meters can directly
send data to the HES on servers in the control room). The MDMS collects data from the HES and
processes it before sharing with billing system and other IT applications. Appliances such as TV,
refrigerator, air conditioners, washing machines and water heaters etc. can be part of the HAN. At the
heart of AMI, is the smart meter. The key features that make a meter smart are the addition of a
communication module capable of two-way Machine to Machine (M2M) communications and a
remote connect/disconnect switch.
Figure 1-3: Typical architecture of AMI
Source: World Bank
In Home Display (IHD) is a device kept in the customer’s premises that could display meter data and
get confirmation from the consumer regarding his/her participation in a demand response program.
Hence consumers will become informed and conscious. However, with the rise of the smart phone
applications or ‘apps’, customers would not require IHDs at their homes. A smart phone can work as
an IHD and hence the DISCOM or consumers need not invest in IHDs.

1.2.1 Communication Technologies for AMI
The below Table depicts some of the available choices for communication technologies for AMI
deployment.
Table 1-1: Communication technologies for AMI
Technology/Protocol Last Mile/NAN/FAN Home Area Network Backhaul/WAN and

(HAN) Backbone
Wireless 6LoWPAN based RF 6LoWPAN based RF Cellular, Satellite,
mesh, ZigBee, Wi-Fi and mesh, ZigBee, Wi-Fi, LPWA, Long Wave
Millimetre Wave Bluetooth, Z-Wave and Radio, TVWS and Private
Technology NFC Microwave Radio Links
(P2P and P2MP)
Wired PLC, Ethernet, Serial PLC, Ethernet, Serial Optical Fiber,
Interfaces (RS-232, RS- Interfaces (RS-232, RS- Ethernet, PLC and DSL
422, RS-485) and DSL 422 and RS-485)
Source: ISGF
1.2.2 Smart Metering Architectures
In the present scenario of smart metering, DCU aggregators and gateways are key elements. These
devices not only decrease the total cost of ownership, but also offer reliable, scalable and
interoperable last mile connectivity. Experiences from around the world shows that none of the
solutions offer 100% reliable connectivity all the time. The best range often heard is between 95-98%;
and in many cases it is well below 90%, some of the popular communication architectures deployed
for AMI worldwide are mentioned below.
Figure 1-4: AMI architecture deployed by Enel (Italy)
Figure 1-5: AMI architecture deployed by center point energy (USA)

Figure 1-6: AMI architecture with RF mesh as last mile
Figure 1-7: Emerging architecture for smart grid and smart city
Figure 1-8: Communication architecture for next generation smart metering – IP metering
Source: ISGF

1.2.3 Key Challenges
The following are the key challenges to rollout of smart meters:
 Consumer indexing poses a challenge in maintaining the system since whenever consumer is
tagged to a new DT discrepancy in billing is observed
 Regulatory challenges for implementation of PLM, connect/disconnect etc.
 Integration of smart grid system with existing Restructured Accelerated Power Development
and Reforms (R-APDRP) system and/or legacy MBC systems
 No smart meter standard was available at the initiation of deployment however, some of
the utilities have deployed IS 16444 compliant meters, while one of the DISCOMs had gone
ahead with certification of IS 16444 which has slowed down the rate of deployment
 High capital costs: A full scale deployment of AMI requires expenditures on all hardware and
software components, including meters, network infrastructure and network management
software, along with cost associated with the installation and maintenance of meters and
information technology systems.
 Integration: AMI is a complex system of technologies that must be integrated with DISCOMs
information and operation technology systems including Customer Information Systems (CIS),
Geographical Information Systems (GIS), Outage Management Systems (OMS), Work
Management Systems (WMS), Mobile Workforce Management (MWM), SCADA/DMS,
Distribution Automation System (DAS), etc.
 Choice of communication is limited due to geography and service providers availability and
non-competitive rates
 Capacity building and training challenges are seen challenge as smart grid is a new concept
for the DISCOM officials and skill set enhancement is needed for the systems deployed
 Consumer resistance was observed with some of the consumers reported increase in billing
and also sought political intervention
 Non flexibility of communication module as they are integrated with smart meter of
particular vendor and it is lock in case of interoperability
1.2.4 AMI Benefits to DISCOMs and Other Stakeholders
Besides, automating the metering and billing systems without human interventions and eliminating
errors, there are several other benefits from AMI for a DISCOM which are explained in detail below.
There are also benefits to generation and transmission utilities which are also captured in this section.
Figure 1-9: AMI benefits

1.2.4.1 Benefits for DISCOMs
Various benefits that will accrue to the DISCOMs from AMI implementation are mentioned below:
 Reduced meter reading and data entry cost: Without smart meters, DISCOMs must send their
personnel to customer premises to manually read the meter. Implementation of AMI enables
remote meter reading both regularly and on-demand. Data entry and processing is performed
automatically. Overall, AMI should deliver greater convenience at reduced cost relative to
traditional meter reading.
 Reduction in time taken for meter reading and bill generation as well as reduction in errors:
There are always chances of human errors when meters are read manually or even via automatic
hand-held devices. In addition, the process is time consuming. By delivering meter data
automatically over communication networks, AMI eliminates human error from the meter
reading process as well as make the entire process faster.
 Reduction in cost of disconnection and re-connection as it can be managed through remote
operation of the AMI system
 Faster detection of dead meters and hence enhanced revenue protection
 Real time energy auditing and accurate energy accounting from time stamped meter data
 Enhanced revenue per month: Large share of meters existing in DISCOMs are old and hence the
readings are not very reliable. With new smart meters, the accurate energy consumption can be
captured which will enhance the monthly revenue considerably. It is expected that the monthly
payment to AMISP can be met from the increased revenue. This has been the experience in
DISCOMs where AMI has been implemented (e.g.: Mysore, Indore, Gujarat, NDMC etc.)
 Reduction in AT&C losses: AMI can remotely detect meter tampering and enable near real time
energy accounting. This reduces theft through by passing the meter, thereby substantially
reducing AT&C losses. AMI will also streamline the billing, or meter-to-cash, process considerably
by reducing the human errors in meter reading and billing.
 Enabling faster outage detection and service restoration after faults: Traditionally, the DISCOM
know about an outage when they receive complaints from affected customers. Service
restoration requires utility crews to identify the area and rectify the fault, a time consuming and
expensive process. The smart meter standards in India (IS: 16444) mandates all smart meters to
be capable of sending ‘last gasp’ and ‘first breath’ messages, which informs the DISCOM when
power has failed or resumed. This will reduce outage restoration times leading to financial
savings and improved customer satisfaction.
 Better load research and demand forecasting from AMI data can reduce power purchase cost:
With meter data time stamped at 15 minute intervals, AMI enables near real-time estimation of
customer demand and understand customer’s power consumption in granular detail. This
improves DISCOMs load forecasting accuracy and enhances the ability to procure the right
volumes of power. DISCOMs can also implement time of use (ToU) tariffs for different categories
of customers and encourage load shifting with demand response programs. These measures
could reduce peak load and hence reduce purchase of expensive power during the peak hours.
 Power quality measurement and management: Smart meters are capable of measuring specific
aspects in near real-time such as power factor, over or under voltage, and over current. This helps
DISCOMs to enhance system power quality in conjunction with power quality data from other
sources. Improved power quality also leads to lower power losses. Also, avoided costs associated
with investigation of voltage complaints.
 Asset optimization: AMI data supports granular monitoring of power flows on the distribution
network which can help DISCOMs identify segments of over and under loading. This is valuable

information for system planning and optimizing network upgrades. AMI data can also help
balance load, which reduces power losses. Better visibility of loading on the power system will
help faster/delayed capacity enhancement and prevention of failure/under-utilization of
equipment. Furthermore, network monitoring can decrease equipment failure rate by identifying
phase imbalances and over loading in advance which can be corrected.
 Ability to operate in prepaid and post-paid modes with smart meters
 Remote operations: Smart meters typically include remote switching, which allows utilities to
remotely disconnect or reconnect where necessary, such as when load is exceeded, for
predetermined events, in the case of non-payment, or when a customer move. Additionally,
DISCOMs can monitor the health of the meter and dispatch maintenance only where necessary.
 Improvement in reliability indices and its accurate measurement: Enhanced monitoring of the
distribution network operations would significantly improve the reliability indices like
CAIDI/CAIFI, SAIDI/SAIFI as well as help measure these indices accurately.
 Reduced load on call centers, customer care centers and billing centers
 Smart meters act as feedback points for understanding the behavioural interpretations of energy
demand as consumption that can be modified
The quantum of these benefits differs for different utilities and need to be evaluated it in detail.
1.2.4.2 Benefits to Generation and Transmission Utilities
Various benefits of AMI implementation for the Gencos and Transco’s are mentioned below:
 Deferred or avoided generation capacity investments on peak load plants and spinning
reserves resulting from accurate demand forecast
 Deferred or avoided transmission capacity investments due to asset remuneration and asset
amortization resulting from accurate demand forecast
1.2.4.3 Benefits for Consumers
AMI implementation will also bring several benefits to consumers which are as follows:
 Error-free bills and no need for visiting billing centers

 Innovative tariff schemes: With AMI system, ToU or real time tariff and other innovative tariff
schemes (e.g.: Tariffs based on actual capacity, tariffs based on agreed capacity, critical peak
pricing, critical peak rebates and block pricing) can be offered to customers which will reduce peak
load on the grid and help customers save on electricity bills
 Faster restoration in case of outages
 Ability to remotely manage and control appliances at home/office/factory (with additional
home/building automation tools)
1.2.4.4 Benefits for Society
AMI implementation will also bring several benefits to society at large such as:
 Reduction in carbon footprint: Reduced patrolling for outage detection, meter reading, dis-
connection and reconnection etc.
 Better customer engagement on energy conservation and demand side management initiatives:
Smart meters are supposed to cover several trans-disciplinary areas, including security of supply,
accurate energy bills, promoting awareness of energy consumption, leading to increased

awareness of the cost of energy use, promoting energy efficiency behaviours and simplifying the
transition from pre-paid to post-paid and vice- versa.
 Enhanced customer satisfaction
 Energy efficiency and energy conservation: Meta-analysis from the AMI programs in European
countries indicate that on an average, consumers who actively use a smart meter can reduce their
consumption of electricity by 5 to 8%.
1.3 Study Scope and Objectives
India Smart Grid Forum (ISGF) with support from Shakti Sustainable Energy Foundation (SSEF)
undertook a detailed evaluation of the DISCOMs in the state of Karnataka and preparing a qualitative
and quantitative framework to assist the DISCOMs for successful rollout of AMI in the state. The scope
of the study covered:
a. Detailed assessment of the current scenario in the DISCOMs with respect to metering, billing
and collections; energy accounting and AT&C losses
b. Assessment of DISCOMs preparedness in terms of technical and managerial capabilities, and
enabling ecosystem to derive full benefits of AMI and other challenges
c. Technology selection guidelines
d. System integration framework
e. Evaluation of business models to finance the AMI project
f. Customer engagement strategies and outreach mechanisms
g. Risk mitigation mechanisms for all stakeholders
1.4 Study Methodologies
A well-designed research methodology was adopted for this project as outlined below:
Step 1: Review of AMI implementation progress in Indian utilities
Thorough review of the AMI projects implemented (and ongoing) by DISCOMs in India undertaken
including the failed projects. This will help map the key success factors and potential risks. Also, this
will help to understand the effectiveness of different technologies as well as capabilities of key players
in the market.
Step 2: Data collection from different stakeholders
Consultations with various stakeholders - central/state government departments, state utilities,

meter manufacturers, meter service providers, telecoms, regulators and respective ministries
conducted at various stages of the study. This will cover issues such as: smart meter functionalities
including billing, field area and home area communication networks (FAN/HAN) support, real time
events/alarms etc. can pose challenges to different stakeholders. Without a proper meter
replacement/installation plan (considerations: meter age, site conditions, operation and customer
engagement, efficiency etc.) problems could arise in smart meter installation. Some major challenges
can also arise in FAN coverage and interference, data communication engineering and architecture
(pertaining to data traffic handling), firmware management (security and upgrades), cyber security
(end to end), scale up considerations (technical factors for implementation of a full-scale AMI project.

Other challenges may include: low smart meters availability and inventory logistics, potential network
bottlenecks, backend system scale up, new firmware deployment etc.
Step 3: Analysis and recommendations
The key recommendations would cover: a) Cost-benefit analysis; b) Technology selection guidelines;
c) System integration framework; d) Evaluation of business models to finance the AMI project; e)
Customer engagement strategies and outreach mechanisms; and f) Risk mitigation mechanisms for all
stakeholders

2 02 Review of AMI Projects in India
2.1 AMI Initiatives in India
In recent years, the metering industry has improving, transitioning from automated meter reading
(AMR) to smart metering, which uses bidirectional communication to provide greater benefits to
electricity distribution companies (DISCOMs), and consumers. With this, Government of India (GoI)
has launched various programs and initiatives for reforming the power sector in India. These include
Integrated Power Development Scheme (IPDS), Ujwal Discom Assurance Yojana (UDAY), National
Smart Grid Mission (NSGM), Smart Meter National Programme (SMNP) and Revamped Distribution
Sector Scheme (RDSS). GoI has provided funds to the state governments for implementation of smart
metering under NSGM and IPDS. Priority would be given to the following:
 All electricity divisions of 500 Atal Mission for Rejuvenation and Urban Transformation
(AMRUT) cities, with AT&C losses >15%
 All Union Territories
 Ministry of Micro, Small and Medium Enterprises (MSMEs) and all other industrial and
commercial consumers
 All government offices at block level and above and
 Other areas with high losses for installation by December 2023
2.1.1 Integrated Power Development Scheme (IPDS)
The IPDS was notified by the Ministry of Power (MoP) on December, 2014 for strengthening of sub-
transmission, distribution networks and metering of distribution transformers/feeders/consumers in
the urban areas. IPDS had an outlay of INR 32,612 crore which includes a budgetary support of INR
25,354 crore from GoI. As of May 2022, for smart metering, the total approved project cost and project
management agency (PMA) cost are around INR 228.55 crore and the total government grant
approved is INR 144.37 crore of which INR 81.24 crore has been released1. The smart grid pilot projects
under IPDS sanctioned by MoP which are completed are as follows:
Table 2-1: Smart grid pilot projects under IPDS
Sl No Project Area Description (As of May 2022)

1 IIT Kanpur Smart City Pilot  Project completed
 Area – Smart City Pilot in IITK campus
 Project cost: INR 11.394 crore, GoI support: INR 5.697 crore
2 Chamundeshwari Electricity  Project completed
Supply Corporation (CESC),  Functionalities: AMI, OMS, PLM and MG/DG
Mysore  Consumers: 21,824
 Area: V V Mohalla, Mysore
 SGIA: M/s Enzen
3 Uttar Haryana Bijli Vitran Nigam  Project completed
(UHBVN), Haryana  Functionalities: AMI, PLM and OMS
1
IPDS: https://bit.ly/3FIjC4k

 Consumers – 10,188
 Area: Panipat City Sub Division
 Project implemented under grant from NEDO (Japan)
4 Smart Grid Knowledge Center,  Project completed
Manesar  Functionalities: AMI, OMS, MG/DG, EVCI, HEMS, Cyber
Security and Training Infrastructure
 Area: POWERGRID complex, Manesar
 SGIA: M/s Genus
5 Himachal Pradesh State  Project completed
Electricity Board (HPSEB),  Functionalities: AMI, OMS and PLM
Himachal Pradesh  Consumers: 1,335
 Area – Kala Amb Industrial Area
 SGIA: M/s GE T&D
6 Uttar Gujarat Vij Company Ltd  Project completed
(UGVCL), Gujarat  Functionalities: AMI, OMS, PLM and PQ
 Consumers: 22,230
 Area: Naroda
 SGIA: M/s Genus
7 Electricity Department of  Project completed
Government of Puducherry  Functionalities: AMI
(PED), Puducherry  Consumers: 33,499
 Area: Division 1 of Puducherry
 SGIA: M/s DFE, China
8 West Bengal State Electricity  Project completed
Distribution Company Limited  Functionalities: AMI and PLM
(WBSEDCL), West Bengal  Consumers: 5,265
 Area: Siliguri Town
 SGIA: M/s Chemtrols
9 Assam Power Distribution  Project completed
Company Limited (APDCL),  Functionalities: AMI and PLM
Assam  Consumers: 14,519
 Area: Guwahati Division
 SGIA: M/s Fluentgrid
10 Tripura State Electricity  Functionalities: AMI and PLM
Corporation Limited (TSECL),  Consumers: 45,290
Tripura  Area: Electrical Division No.1, Agartala
 SGIA: M/s Wipro
 TSECL to complete Smart Grid Pilot at Agartala from own
resources. No further funding under IPDS
11 Southern Power Distribution  Project completed. Final claim with closure report submitted
Company of Telangana Limited to MoP
(TSSPDCL), Telangana  Functionalities: AMI, PLM, OMS and PQ
 Consumers: 11,906
 Area: Jeedimetla Industrial Area
 SGIA: M/s ECIL
Source: NSGM

2.1.2 Ujwal Discom Assurance Yojana (UDAY)
UDAY, launched in September 2015, and the National Tariff Policy (NTP), amended in January 2016,
mandate the deployment of smart meters for all consumers with a consumption above 200 kWh. As
of May, 2022, 9 percent of the planned 5.73 million smart meters had been installed for consumers
with electricity consumption above 500 kWh, and 11 percent of the planned 18.43 million smart
meters had been installed, for consumers with electricity consumption of 200 kWh to 500 kWh2.
2.1.3 National Smart Grid Mission (NSGM)
NSGM has been established by GoI, aims to accelerate the deployment of smart grids and smart
meters in India. The programme has been in operation since January 2016, and as of May 2022,
1,35,757 smart meters had been installed out of the 3,63,433 sanctioned. Three smart grid projects
have been sanctioned under this program and are at various stages of development as mentioned in
below Table:
Table 2-2: Smart grid pilot projects under NSGM
Sl No Project Area Description (As of May 2022)

1 Chandigarh Engineering  Till date, 24,149 smart meters installed in field
Department (CED),  Functionalities: AMI, DTMU and SCADA
Chandigarh (Sub Div-5)  Consumers: 29,433
 Area: Sub Division 5 of Chandigarh
 SGIA: M/s Analogics, M/s Synergy
 PMA: M/s RECPDCL
2 Jaipur Vidyut Vitaran Nigam  Till date, 1,11,608 smart meters installed in field
Ltd (JVVNL), Rajasthan (6  Functionalities: AMI
Urban Towns)  Consumers: 1.5 lakh
 Areas: Baran, Bharatpur, Bundi, Dholpur, Jhalawar, Karauli
3 CED, Chandigarh (Complete  Revised sanction for AMI / Smart Metering with MBC and additional
City Excl. SD-5) service cables issued on 9th Dec 202
 Functionalities: AMI
 Consumers: 1.84 lakh
 Area: Complete Chandigarh City (excl. SD5)
Source: NSGM
2.1.4 Revamped Distribution Sector Scheme
The Revamped Distribution Sector Scheme (RDSS) was launched by Government of India on July, 2021,
provisions have been made to install 250 million prepaid smart meters across the country by March,
2025. A Reforms based and results linked scheme with an outlay of INR 303,758 crore over a period
of five years from FY 2021-22 to FY 2025-26 with the objective to improve the quality, reliability and
affordability of power supply to consumers through a financially sustainable and operationally
efficient distribution sector. The scheme aims to reduce the AT&C losses to pan India levels of 12-15%
by 2024-25 by improving the operational efficiencies and financial sustainability of all DISCOMs/Power
departments excluding private sector DISCOMs. DISCOMs/Power departments would be able to
2
UDAY: https://bit.ly/3zrWs01

access funds under the scheme for pre-paid smart metering, system metering and distribution
infrastructure works for loss reduction and modernisation.
2.2 On-Going AMI Projects in India
As of May, 2022, a total of 10.52 million smart meters have been sanctioned under these schemes, of
which 3.69 million have been deployed and 6.82 million are in the pipeline. Among agencies, Energy
Efficiency Services Limited (EESL) has installed 2.64 million smart meters and REC Power Development
and Consultancy Limited has installed 1 million smart meters. Power utilities have cumulatively
installed 1.55 million smart meters. The ongoing AMI projects in India state-wise as mentioned in
below Table.
Table 2-3: Ongoing AMI projects in India
Sl No State/UT Utility Sanctioned Smart Installation Status (As

Meters May, 2022)
1 Andaman EDANI 103302 75200
2 Assam APDCL 888100 190091
3 Bihar NBPDCL 1030000 331920
4 SBPDCL 1360500 481579
5 Chandigarh CED 213433 24149
6 Delhi NDMC 64713 63692
7 Haryana DHBVN 500000 181061
8 UHBVN 500000 251244
9 Himachal Pradesh HPSEB 76028 60168
10 Jammu & Kashmir JKPDD 115500 76050
11 Jharkhand JBVNL 360000 0
12 Madya Pradesh MP-West 350000 124477
13 Punjab PSPCL 96000 88107
14 Rajasthan JaVVNL 431800 355428
15 AVVNL 190822 68673
16 JdVVNL 102182 56027
17 Tamil Nadu TANGEDCO 141000 117527
18 Utter Pradesh MVVNL 905769 378862
19 PVVNL 1164138 198726
20 DVVNL 628686 147991
21 PuVVNL 1147102 321433
22 KESCO 156532 107318
Total 10525607 3699723
Source: NSGM
2.2.1 Completed Smart Metering Projects in India
As of May, 2022, a total of 0.72 million smart meters have been sanctioned under these schemes, of
which 0.72 million have been deployed across the various states as mentioned in below Table.
Table 2-4: Completed smart metering projects in India
Sl No State/UT Utility Sanctioned Smart Meters Installed Smart Meters

1 Andhra Pradesh APEPDCL 2000 2000
2 Assam APDCL 84259 84259
3 Bihar IPCL 17100 17100
4 BEDCPL 1000 1000
2 Delhi TPDDL 195000 195000

3 Gujarat UGVCL 23760 23760
4 Haryana UHBVN 10188 10188
5 POWERGRID 10 10
6 Himachal Pradesh HPSEB 77047 77047
7 Karnataka CESCOM 20916 20916
8 Kerala CPT 805 805
9 Madya Pradesh MP-West 118836 118836
10 Odisha OPTCL 4000 4000
PPT 500 500
11 Puducherry PED 30568 30568
12 Rajastan AVVNL 1000 1000
13 JaVVNL 70000 70000
14 Tripura TSECL 43081 43081
15 Telangana TSSPDCL 8882 8882
16 Uttar Pradesh IITK 28 28
17 West Bengal WBSEDCL 5164 5164
18 CESC 10000 10000
Total 724144 724144
Source: NSGM
The full details of ongoing and completed projects are given in Appendix I.
2.2.2 EESL/IntelliSmart Projects
2.2.2.1 EESL - Smart Meter National Programme (SMNP)
SMNP aims to replace 250 million

conventional meters with smart meters in Key Highlights:
India. Smart meters are connected through
 AT & C loss reduction: 11%-36%
a web based monitoring system which will
 Billing efficiency: Increased by 21%
help to reduce commercial losses of
 Increased revenues: INR 264 Crore per annum
Discoms, enhance revenues and serve as
(11 lakh meters)
an important tool in power sector reforms.
 Pre-Paid meters: 140-150% of increased
Energy Efficiency Services Limited (EESL) revenues in Bihar
business model to rollout smart meters is
revamping the current manual system of revenue collection which leads to low billing and poor
collection efficiencies. This programme is being implemented under the BOOT model on cost plus
approach, which means all Capex/Opex is done by EESL and the states/DISCOMs are not required to
invest upfront. As of May, 2022 EESL has installed 2.64 million smart meters across the states Uttar
Pradesh, Haryana, Bihar, NDMC-Delhi, Rajasthan, Assam and Andaman & Nicobar.
2.2.2.2 IntelliSmart Projects
To give a fillip to the vision of converting all the conventional electricity meters to smart meters in the
next few years, EESL along with National Investment and Infrastructure Fund (NIIF), has formed a JV
company – IntelliSmart Infrastructure Private Limited or “IntelliSmart” in 2019. The focus of
IntelliSmart would be to drive efficiencies for DISCOMs, improve revenue management, and increase
billing efficiency and consumer satisfaction. As of May 2022, 2.64 million smart meters installed across
the various states in India as mentioned in below Table.

Table 2-5: IntelliSmart smart metering projects in India
Sl No State/UT Installed Smart Meters (As

of May 2022)
1 Andaman & Nicobar Islands 74209
2 Assam 962
2 Bihar 795875
3 Delhi 63705
4 Haryana 434346
5 Rajasthan 124700
6 Uttar Pradesh 1154330
Total 2648127
Source: IntelliSmart
To expand its fast-growing presence across the country, IntelliSmart is looking at penetrating states
such as Jharkhand, West Bengal, Andhra Pradesh, Telangana and Gujarat, to implement digital
solutions like smart metering. “IntelliSmart has secured its first order to install more than 6 lakh pre-
paid smart meters in 19 circles of Assam. This becomes countries first ever competitively bid smart
metering project by any State on TOTEX mode (Capex + Opex).
2.2.3 TPDDL AMI Project
In 2003, Tata Power Delhi Distribution Limited (TPDDL) developed and implemented its in-house AMR
system with MDM and MDAS for 75,000 consumers having a connected load of 10 kW and above. In
2014, TPDDL became the first Indian power utility to launch an Automated Demand Response (ADR)
project with smart meters.
Figure 2-1: ADR with smart meter architecture
This pilot project was implemented in partnership with IBM, Honeywell, and Landis+Gyr and with the
participation of select industrial and commercial consumers. Subsequent to ADR implementation,
TPDDL has planned to implement smart meters for all consumers, in a phase wise manner. As of May,
2022, a total of 0.8 million smart meters have been planned, of which 0.24 million have been installed
using RF-Mesh with OFC and Cellular Backhaul NBIoT.

Figure 2-2: Overall architecture of AMI at TPDDL
Table 2-6: TPDDL AMI project
Customers 1.8 million

License Area North and North West Delhi (510 sq. km)
Total Number of Smart 0.24 million
Meters Installed
Technology RF-MESH with OFC & Cellular Backhaul NBIoT
RF Mesh: 865-67 MHz, RF (P2MP), RF Mesh: 2.4 GHz and 5.8 GH, PLC
(3G,Prime), Cellular (2G,2.5G,3G,4G,LTE)
Smart Meter Landis+Gyr, HPL, L & T
Modules Developed  Billing (NET/Post/Pre-Paid)
 Revenue Protection
 Connect/Disconnect
 Dashboard and Analysis modules
Billing Efficiency 98%
Enabled Features Remote and on-demand reading, Remote firmware upgrade, Net metering,
Time-of-Day (TOD) pricing and Prepaid metering, Power Quality Meter
(PQM)/pulse-frequency modulation (PFM)
AMI Integrated with MDAS and MDMS, MBC system, OMS, Mobile and web applications/self-
service portal and CRM systems
2.3 Smart Metering Standards
The MoP mandated Central Electricity Authority (CEA) to prepare the functional requirements and
technical specifications for indigenous smart meters. CEA released the first edition of the smart meter
specifications in June 2013. MoP has requested the Bureau of Indian Standards (BIS) for formulating a
national standard for smart meters. Subsequently, BIS assigned this task to the Technical Committee
under Electro Technical Division (ETD) 13 to prepare the standards for smart meters. In August 2015,
BIS published the new smart meter standard, IS 16444: AC static direct connected watthour smart
meter, class 1 and 2 specification covering single phase energy meters, three phase energy meters
with net metering facility. Another standard IS 15959: data exchange for electricity meter reading,

tariff and load control, companion specification has been revised and published as IS 15959: Part 2
Smart Meter in March 2016.
2.3.1 Smart Metering Standards in India
In June 2016, CEA issued the specifications of single phase and three phase smart meters, and
functional requirements of AMI in India. All DISCOMs have been advised to abide by these
specifications and minimum functional requirements and mandated all meters to be conforming to
latest Indian Standards as listed below:
A. Standards for smart meters and associated data protocol
 BIS standard for smart meters (IS 16444) published in August 2015
 BIS standard on data protocol (IS 15959 Part 2) published in March 2016
 No standard required for communications, each utility to decide the suitable/appropriate
communication technology (It is not prudent to specify any single communication technology
for the entire country)
B. BIS Standard on Smart Meters (IS 16444) applies to:
 Single phase electricity meters

 Three phase electricity meters
 Single phase electricity meters with net metering facility
 Three phase electricity meters with net metering facility
These meters can be operated as both pre-paid and post-paid electricity meters. There is no need for
another standard for pre-paid electricity meters.
2.3.2 Global Standards in Smart Metering
Table 2-7: Global standards in smart metering
Standard Reference Title

Body
IEC IEC 61968-9 Application integration at electric utilities - System interfaces for
distribution management
IEC IEC/TS 62351 Power systems management and associated information exchange -
Data and communications security
IEC IEC 62052 -11 Electricity metering equipment (AC) - General requirements, particular
requirements, tests and test conditions
IEC IEC 62056 – Electricity metering - Data exchange for meter reading, tariff and load
21,42,46,47,53,61,62 control
IEC IEC 62058 Electricity metering equipment (AC) - Acceptance inspection
NEMA SG-AMI 1-2009 NEMA Smart Grid standards Publication SG-AMI 1-2009 – Requirements
for Smart Meter Upgradeability
EN EN 13321 Series Open data communication in building automation, controls and building
management ― Home and building electronic system
EN EN 13757 -1,2,3,4,5 For utility metering using M-bus and other media
EN EN 14908 series Information Technology – Control Network Protocol
EN EN 50065-1 Signalling on low-voltage electrical installations in the frequency range
3kHz to 1485 kHz – General Requirements, frequency bands and
electromagnetic disturbances
EN EN 50090 -3-1,2,3 Home and Building Electronic Systems (HBES)
EN EN 50090 -4-1,2,3 Home and Building Electronic Systems (HBES)

EN EN 50090 -7-1 Home and Building Electronic Systems (HBES)
EN EN 61334-4-32 Distribution Automation Using Distribution Line Carrier Systems – Data
Communications Protocols
IEC EN 61334-4-511 Distribution Automation Using Distribution Line Carrier Systems – Data
Communications Protocols – Systems Management – CIASE Protocol
IEC IEC 61334-4-512 Distribution Automation Using Distribution Line Carrier Systems – Data
Communications Protocols – System Management using profile 61334-
5-1 – Management Information Base
IEC IEC 62051-1 Electricity Metering – Data Exchange for Meter Reading, Tariff and
Control – Glossary of Terms
IEC IEC 62351 (all parts) Power Systems Management and Associated Information Exchange –
Data and Communications Security
EN EN 62056- Electricity Meter Data Exchange
31,42,46,47,53,61,62
IEEE IEEE 1377 Utility Industry Metering Communication Protocol Application Layer
(End Device Data Table)
IETF RFC 3394 Advanced Encryption Standard (AES) key wrap algorithm (Informative)
ANSI ANSI C12.19 Utility Industry End Device Data Tables
ANSI ANSI C12.22 Protocol Specification for Interfacing to Data Communication Networks

303 Ground Work by DISCOMs for AMI
3.1 Basic Preparedness
For a smooth AMI implementation, it is very important to have the basic preparedness of DISCOM in
place. AMI implementation and the rollout would require a well-defined and proactive strategy and
good understanding of the existing IT and automation system in the DISCOM. The following readiness
should be ensured beforehand.
 The available technical capability of DISCOMs for AMI implementation

 Managerial capabilities of DISCOMs for AMI implementation
 Enabling eco system for the implementation of AMI
 Challenges envisaged in the AMI implementation
3.2 The Key Issues to be Addressed
3.2.1 Technical Capabilities
1. The interoperability should be established among different make of meters and

communication system deployed.
2. A meter installation agency should be hired or a dedicated team for smart meter installation
should be formed within the DISCOM and trained.
3. Different smart meters communication technologies should be tested for different field
conditions.
 RF mesh network
 PLC
 Cellular network
 A combination of these
4. Meter data reading frequency for different types of consumers should be framed differently
to serve the purpose.
5. Topology of meter communication should be established depending upon the field condition
and suitability of technology.
6. Security of the communication network should be maintained.
7. The functioning of existing applications/systems ex. billing, customer care, GIS, analytics,
reporting, load analysis, load forecasting, and OMS should be ensured before integrating it to
AMI.
8. MDM should support asset management functionalities.
9. The billing system should support AMI Meter Data Management system and existing MDAS
for the billing of different type of customers until the rollout gets completed.
10. The billing system should provide revenue protection support.
11. MDM should provide demand control/demand response support.
12. Integration of existing system like Interactive Voice Response System, Billing and collection
software, GIS mapping, Consumer indexing, new connection and disconnections, Analytics,

Outage Management System among each other should not be compromised while integrating
with AMI.
13. Appropriate security measure should be taken to prevent unauthorized access in AMI.
3.2.2 Managerial Capabilities
1. Adequate resource pool for AMI implementation should be planned and trained before
starting the project.
2. The project team structure as listed below should be defined for AMI implementation.
 Project Manager
 System Integration Specialist
 Cyber Security Specialist
 Communication Technology Specialist
 Other Resources
3. A governance Framework for AMI implementation shall be defined.
4. Required training on different subjects/components shall be provided to the resources
involved in the project.
 Hardware and Software including database, report, and analytic building course
 Software application
 Operator training
 Network and cyber security training
3.2.3 Enabling Ecosystem
1. Smart Meter Operations Centre (SMOP) should be planned beforehand

2. Smart meters vendor pool must be identified and empanelled
3. Challenges in mass meter replacement shall be identified and addressed
4. Online data exposed to consumers, through web application or mobile app should be well
protected
5. Response from different type of customers should be captured based on their ability to
communicate
6. Provision for remote load connection/disconnection with appropriate safety measures should
be tested for AMI
7. AMI implementation risk should be identified and mitigation measures should be taken
8. The business model for AMI implementation should be well planned and it should be in sync
with the DISCOM’s digital transformation roadmap
9. The methodology for AMI implementation and should be planned and communicated to
relevant stakeholders
3.3 Other Important Measures
1. Advance Metering Infrastructure Service Providers (AMISP) bidders should have one project
partner who are experienced System Integrators (SI) and have successfully implemented end-
to-end integration (Meter-HES-MDM-Billing System) of an AMI project involving >1 million
meters anywhere in the world. Tender evaluation committee should visit/interact with the SI
and the Utility to understand the performance rather than going by the certificate from the
client submitted by the bidders. Additionally experienced consultants may be insisted upon
as part of the AMISP team.

2. All AMI projects should have a pilot demonstration phase involving 3-4 full feeders (about
5000 meters) which should be completed with full end-to-end integration within 9 months of
placement of LoI.
3. Till the first awarded project’s pilot demo phase is not completed, the same AMISP and the SI
may not be awarded another project in any other DISCOMs.
4. DISCOMs must have ONLY ONE Billing System – this must be done on top priority. The legacy
billing system must be available for integration with industry standard MDMs available in the
market.
5. DISCOMs should share their process and context diagrams, IT architecture with interface
details of all their legacy IT systems. DISCOMs may be advised to start this process on fast
track as most of them do not have such clear architecture and documentation.
6. After successful completion of the pilot demonstration, the DISCOM should establish a Smart
Meter Operations Centre (SMOC) which will be a control centre to monitor and manage the
larger rollout smoothly.
7. Every DISCOM should first award a project involving 500K to 1 million meters in one city/town;
out of which phase-1 should be the pilot demonstration of end-to-end integration with
prepayment functionalities within 6-9 months. Thereafter, that AMISP can continue with
rollout of that package in full.
8. After the pilot phase of the first project is successfully completed, the DISCOM can issue
multiple tender packages for entire service area and engage different AMISPs for different
areas. Each of such projects should be maximum of 1 million meters – not larger. The new
AMISPs should integrate their HES with MDM in collaboration with the SI of the first AMISP
who conducted the solution demonstration.
9. Telecom service providers should be mandated to commit SLAs for their services for AMI
projects
3.4 Possible Challenges
India faces a number of challenges with respect to deployment of AMI:
3.4.1 Absence of Skilled Manpower
AMI is a new concept that involves in-depth knowledge of three distinct domains: metrology,
telecommunications and IT. The DISCOMs are well versed with the electrical technologies of the
electricity grid, but when it comes to telecommunications and IT, their expertise is limited.
Furthermore, the fact that AMI is an evolving technology adds to the challenge.
3.4.2 Limited Awareness
As AMI is new in India, DISCOMs are still trying to understand its nuances. As a result, DISCOMs often
find it hard to justify investments in AMI. Also, limited availability of information on successes in AMI
deployments leads to an unclear picture for the decision makers.
3.4.3 Weak Procurement Framework
In most government tenders in India, the lowest bidder is awarded the contract. This often leads to
the deployment of unproven technologies and systems by inexperienced parties. Often the lifecycle
cost of such systems comes out to be much higher that the anticipated cost.

3.4.4 Customer Engagement
Many potential benefits of an AMI project rely on robust customer engagement. In India, this is an
overlooked aspect by most DISCOMs. Customers will take part in AMI and demand response initiatives
only when they understand the importance and benefits to them.
3.4.5 Implementation of AMI
AMI integration with the legacy systems in the DISCOMs brings technical challenges including the
standardization of data formats to optimize interoperability across components, management of large
volumes of electricity consumption data.

404 Assessment of the Current Metering
Scenario in DISCOMs in Karnataka
4.1 Introduction
Government of Karnataka (GoK) has been making efforts in areas like grid modernization, smart
metering, promoting electric vehicles and energy storage, enhancing capacity in renewable energy
and developing microgrids. The KERC Smart Grid Regulation 2015 aims to integrate all smart grid
technologies and measures to bring energy efficiency and operational improvement in generation,
transmission and distribution and also promotes network security, renewable energy integration into
the grid and microgrids.
To improve the operational and revenue realisation of the DISCOMs and to provide better value added
services to consumers, power distribution sector state wide is rapidly adopting the smart metering
technology. The futuristic technology helps DISCOMs in effective distribution operations as well as
help utilities in managing dynamic and disruptive changes happening in the grids due to solar energy
infusion, home automation, electric vehicles, energy storage, etc. Karnataka is among the few states
where installation of prepaid electricity meters at public facilities has started under Ujwal Discom
Assurance Yojana (UDAY). Several measures have been taken to reduce the AT&C losses of DISCOMs
by improving billing and collection through removal of manual intervention and reducing meter
tampering by consumers. Karnataka is fast moving towards creating an efficient smart energy
ecosystem in the state. The state has been implementing reforms for reducing electricity prices and
making retail tariffs cost reflective which would help make power for all a reality in Karnataka.
BESCOM has taken many initiatives to ensure that the Bengaluru households get smart meters by
March 2025. The smart meters will be installed in two stages. The first phase will have 17-17.5 lakhs
smart meters installed at government buildings, commercial enterprises, industries, and similar
organizations by December 2023; whereas the second phase will have 55 lakhs smart meters installed
covering all residential buildings within Bengaluru City by March 2025.
Chamundeshwari Electricity Supply Corporation has successfully completed a smart metering pilot
project which was undertaken in one of the subdivisions in Mysore in 2013. The project involves
installation of smart meters for 21,824 consumers (10% of total consumers in Mysore city), with a
good mix of residential, commercial, industrial and agricultural consumers, including 512 irrigation
pump sets. It covers over 14 feeders and 473 distribution transformers, and accounting for input
energy of 151.89 MU. Functionalities of peak load management and outage management have been
achieved by implementing AMI for residential consumers and industrial consumers, besides
integration of distributed generation/micro-grid integration. CESC is planning to implement smart
meters for other areas based on the results of implementation of this pilot project.
4.2 Metering, Billing and Collection System
Metering is the first step in measuring power consumption and presenting the consumers their usage
to charge them corresponding to the service delivered. At present, a meter reader approaches each
individual consumer with the bill for the revenue realization. The consumers are provided various
options to pay their electricity bills at circle, zonal and subdivision offices through cash, cheque and
Demand Draft (DD) etc. On successful transaction, receipt is furnished to the consumers. In order to

facilitate easy payment of bills, the DISCOMs also has made a Mobile App for consumers. The Mobile
App offers following features for both consumers as well as its employees.
 Generic information about DISCOMs (Tariff, policies, schemes and offices etc.)
 Consumption, billing and payment history
 Online payment
 Consumer specific services (Integration of analytics)
 Display RR no. wise list of payment dues
 Scheduled and un-scheduled power outage information
Meter reader’s handle a host of data every day, the data entry is done manually which is prone to
human error. DISCOMs has initiated the Automatic Meter Reading (AMR) technology, is used for
collecting consumption, diagnostic, and status data from energy metering devices and transferring
that data to a central database for billing, and analysing. It saves the cost of periodic trips to each
physical location to read a meter. Another advantage is that billing can be based on near real-time
consumption rather than on estimates based on past or predicted consumption. This timely
information coupled with analysis can help both utility providers and consumer’s better control the
use and production of electric energy consumption.
Figure 4-1: Schematic for billing and MIS at subdivision level
The AMR mechanism of BESCOM at DTC Metering and consumer level as mentioned below.
AMR at DTC level:
BESCOM has installed 50,872 modems to DTCs in R-APDRP towns. The DTC meter data is
communicated to Meter Data Acquisition System (MDAS) through GPRS modems. The Energy Audit
reports were made available in R-APDRP portal.
In Non-RAPDRP area, BESCOM has installed 45,000 DTCs metered with inbuilt modems in the areas of
Bengaluru Rural, Ramanagar, Tumkur and Davangere O&M Circles to enable AMR. The DTC meters

communicate with Meter Data Acquisition System and the MDAS is integrated with Total Revenue
Management (TRM), which is a billing software for non-RAPDRP areas of BESCOM provided by Nsoft,
Bangalore. The DTC wise energy audit reports are available in Nsoft portal.
AMR at Consumer Level:
DDUGJY: BESCOM has taken up HT metering work along with AMR under DDUGJY a GoI initiative
program. Fixing of modems to the existing HT installations. Configuration of modems and pushing the
data from meter to existing server of BESCOM (Nsoft server). As on January 2021, approximately
around 260 Nos. of modems were communicating with MDAS; on the first day of every month data is
pushed to Nsoft server.
IPDS: BESCOM has taken up following metering works along with AMR under IPDS a GoI initiative
program. Modems for 40 HP and above LT3 and LT5 installations in IPDS towns of BESCOM pushes the
data to the existing MDAS with GPRS enabled data communication. The work of supply and
commissioning of modems has been completed whereas the work of integration is under progress. As
on January, 2021 approximately around 7,482 Nos. of modems are communicating to MDAS and 4,871
Nos to MDM.
Pre-paid Meters:
A pilot project was taken up by installing prepaid meters with smart card technology to temporary
installations in Indiranagar division, based on its experience it is being rolled out in entire BESCOM
jurisdiction for temporary connections. BESCOM has implemented pre-paid meters using keypad
technology along with the vending system for temporary installations in BESCOM (other than
Indiranagar Divisions) on Design Build Finance Operate and Transfer (DBFOT) basis for 5 years for a
total quantity of 80,000 nos.
Benefits of Standard Billing System
 Revenue Assurance
Direct Benefit Indirect Benefit  Efficiency
 Transparency &
• Business Process of • Realization of Standardization of
Customer Service to be Borderless services customer services pattern
more simple, standard • Ease and diversity of in all business units
and centralized service options  Integration of Process
• Operational cost to be • Service assurance to be  Ease of System
more efficient more measurable Management
• Supporting for Revenue • Business process
Protection  Availability of Single
supervision to be better
• To gain access to the resource for customer
information from the database
relevant business units  Credibility of Financial
in real time Report
 Consolidation of financial
reports which are more
effective and accurate

4.3 Energy Accounting
The GoK has made it mandatory for DISCOMs to undertake energy accounting periodically. The energy
accounting will provide detailed information regarding electricity consumption by the different
consumers and the transmission and distribution losses in various areas. It will also identify losses and
theft and enable actions by fixing the responsibility of the officers. The data will enable the DISCOMs
to take appropriate measure for reducing their electricity losses. The DISCOMs will be able to plan for
suitable infrastructure up-gradation as well as demand side management efforts in an effective
manner.
Energy accounting will contribute towards the climate actions of India in meeting the goal of the Paris
Agreement. Energy accounting will account for energy inflows at several voltage stages in the
distribution network, such as RE generation, open access consumers, and energy consumption by the
end consumers. Energy accounting with an annual energy audit would help to identify losses and
pilferages and focus on taking appropriate measures. The initiative will also identify electricity leakage,
theft, wastage or insufficient use of electricity and enable the DISCOMs to take appropriate measures
to reduce transmission and distribution (T&D) losses.
At present DISCOMs operating Town-wise, Feeder-wise, DTC-wise, administrative hierarchy wise

energy accounting/auditing and reporting is provisioned under R-APDRP system.
4.4 AT&C Losses
The advantage of this indicator is that it provides a realistic picture of energy and revenue loss
situation. The AT&C losses comprise of technical losses and commercial losses. Technical losses occur
naturally and consists mainly of power dissipation in electricity system components such as lines,
transformers and other equipment’s but the non-technical losses are caused by action of external to
the power system such as electricity theft, non-payment by customers, errors in accounting and
record keeping. The technical and commercial losses bear effect on the operational performance of
DISCOMs and revenue. It also indicates the billing, vigilance and health of the distribution systems. As
a result, one of the most significant features of AT&C losses must be maintained to a minimum in
order to ensure the DISCOMs technical and financial viability. The AT&C losses of Karnataka stands at
14%. The DISCOM wise AT&C losses of Karnataka state as mentioned in below Table.
Table 4-1: DISCOM wise AT& C loss trajectory up to 2021-22
Sl Year BESCOM CHESCOM GESCOM HESCOM MESCOM Karnataka

No Total
1 2017-18 13.37 14.27 23.41 18.99 11.65 16.29
2 2018-19 12.72 13.59 22.84 18.56 11.28 15.72
3 2019-20 11.87 12.99 22.44 17.96 10.79 15.15
4 2020-21 11.51 12.51 21.72 17.43 9.92 14.57
5 2021-22 10.91 12.19 21.01 17.00 9.32 14.00
Source: IPDS
Karnataka's distribution sector has the following opportunities that could help DISCOMs to reduce
their AT&C losses.
 Most of the DTs and consumers are metered

 Most categories of consumers pay their bills promptly
 Very few instances of theft take place
 A system is in place to compile data on energy input and energy consumed

With a few additional improvements in the system, Karnataka could achieve AT&C losses of less than
10% at the DISCOM level in the future. Integration of technology to reduce manual interventions and
a more stringent administrative control could help in enhancing the DISCOMs performance by
reducing the AT&C losses. The following implementable measures are suggested for reducing losses
within a comparatively short period of time.
 Feeder wise revenue accounting and monitoring of energy sales

 Computing accurate IP set consumption through agricultural feeder mapping
 GIS-based energy audit
 Closer verification of Gram Vidyuth Prathinidhis (GVPs) billing
4.5 IT and OT Systems
BESCOM IT infrastructure and communication network is the backbone of enterprise IT system for the
organization, which provides computing facility for automation of business functions. The main data
center facilities of BESCOM are hosted at M/s SIFY’s Data Center in Bangalore.
Figure 4-2: IT and OT systems
The end user computing facilities comprise of computers and accessories at different functional
departments located at various offices spread across the area of jurisdiction under BESCOM. Separate
local area networks (LANs) have been established at respective premises of different offices for users
in various departments. Wide area network (WAN) has been established for interconnecting all the
offices.
Table 4-2: IT and OT systems
Sl Systems Application Platform Database Integration Integration Frequency

No with Through
Destination
System
1 IT Systems CC&B (New Oracle Oracle WAMS, GIS,
Connection, MDM,
CRM, MIS/BIP, WSS
Metering,

Billing,
Collection
and
Disconnection
2 WSS Java Oracle CCB, External
Systems
(KUM/Seva
Sindhu/E-
Sign/SAKALA)
3 OT Systems GIS Web ESRI, ArcFM, Oracle - Within Web on real
Solution .Net 11g RAPDRP services time basis
system - DAS- Proxy DAS- on
WAMS, NA, server monthly
MDM, EA basis
Outside
RAPDRP
system - DAS
4 MDA-MDM Analogics MS-SQL CC&B, P2P 15 Mins
Solution and AmiTech WAMS, MIS
5 Identity IBM Tivoli MS-SQL
Access identity
Management management
& System
Security
Source: BESCOM
4.5.1 IT and OT Applications
BESCOM has progressively deployed different independent software applications on as and when
required basis which comprise a number of legacy systems. The applications have been developed by
different agencies on various platforms using a variety of database technologies. These applications
are suitable for specific business functions and used by different users of BESCOM. The detailed list of
IT and OT applications is given in below Table:
Table 4-3: IT and OT applications
Sl No Name of Status
Application
IT Applications
1 Outage  Implemented by integrating with existing PGRS (Third party system) of
Management BESCOM
System (OMS)
2 Field Force  Functions limited to crew management is built into OMS and
Automation (FFA) implemented. The available facilities are sparingly used.
Solution
3 Integrated Billing  Billing and Collection both are handled in single application (CCB)
and Collection
Systems
4 Cyber Security for  The required Cyber security controls for the existing system are as per
OT Systems NERC-CIP standards but external security audit is to be carried out and
the same is under discussion.
OT Applications
1 SCADA/DMS  KPTCL's current SCADA system is integrated to push the 11kV feeder
data to R-APDRP system
 SCADA DMS functionalities implemented and in commercial operation

2 Geographical GIS is currently implemented for 25 towns of R-APDRP wherein data is
Information updated regularly with respect to asset mapping and consumer indexing.
Systems (GIS) GIS is also going to be further extended to 20 IPDS towns in BESCOM
3 Distribution Limited to Bangalore City jurisdiction, DA is implemented. Substation
Automation (DA) automation not in the scope of BESCOM
and Substation
Automation
4 Distribution Planning of distribution system limited to identification of automation
System Planning points for SCADA operations.
and Modelling
Tools
4.6 Present Baseline Parameters/KPIs
Every customer in a DISCOM is connected to a feeder. A feeder is the connection from a sub-station
through wires, transformers etc. to a customer. It is fairly common practice in the electric utility
industry to use the standard IEEE reliability indices like SAIFI, SAIDI, CAIDI and MAIFI to track and
benchmark reliability performance.
Table 4-4: KPI parameters
Parameters Feeder Level Value Optional/Mandatory

SAIFI 20.21 Mandatory
SAIDI 16.76 Mandatory
ASAI Optional
CAIDI 0.79 Mandatory
CTADI Optional
CAIFI Mandatory
ASIDI Optional
ASUI Optional
MAIFI 12.8 Optional

5 05 AMI Implementation Strategy
For large AMI rollout BESCOM would need a Smart Meter Operations Center (SMOC). As part of the
smart meter rollout there are around 250 million smart meters to be installed across India by 2025
with communication network, Head End, Meter Data Management System, Workforce Management
system etc.
The diagram below shows an overview of the solution components that should be covered in this
solution blueprint (Highlighted as SMOC applications suite):
Figure 5-1: AMI solution components
The AMI ecosystem should not only address basic functionalities of the smart metering system defined
by CEA, but also capable of integrating with AMI functions such as AMI Field Services, AMI meter
Management System, AMI Network Management System etc. The integration with other systems like
Distribution Automation System (DAS), Outage Management System (OMS), Customer Information
System (CIS), Material Management/Warehouse Management System (WMS) etc. for current and
future use cases. The AMI system helps utilities to manage their resource and business process
efficiently, it shall support the following minimum functionalities:
 Remote meter data reading at configurable intervals (Push/Pull)

 Time of day (ToD)/Time of Use (ToU) metering
 Prepaid/Post-paid functionality
 Net metering
 Alarm/Event detection
 Remote load limiter and connection/disconnection at defined/on demand conditions
 Remote firmware upgrade

 Integration with other existing systems like call centre, billing and collection software, GIS
maps, consumer indexing, new connection and disconnection, analytics, Outage Management
System, field force management etc.
 Import of legacy data from existing modules/MDAS of R-APDRP wherever possible
 Security features to prevent unauthorized access to the AMI including smart meter and meter
data etc. and to ensure authentication of all AMI elements by third party
5.1 Necessary Hardware/Software Technologies and Services
The below diagram shows the necessary hardware/software technologies and services.
Figure 5-2: Hardware/Software technologies and services
5.1.1 Smart Meters
Smart meters should comply with the utility smart meter technical specification for single phase, three
phase whole current and CT operated meter. The smart meter specification should be in lined with
DISCOM purchase policy and AMI rollout plan. The interoperability between different devices and
relevant applications (Meter/Repeater/DCU/HES/MDM) shall be ensured while going ahead with
single vendor/multi-vendor purchase. It should be ensured that the meters have valid BIS certification.
Figure 5-3: Smart meters

The smart meter installation shall be done by either trained DISCOM meter installers or by the AMI
implementing agency as per the practices of DISCOM. There are software application available to
support end-to-end meter installation process, DISCOM should take help of such applications for the
meter installations, if the decide to install the meters by their own workforce. It should be decided
beforehand that, where the remote connect and disconnect switches will be fixed (Inside
meter/outside meter) looking into the trade-off of metre tampering and switch maintenance.
After meter installation, required parameters shall be updated in DCU/HES/MDM, the information
should also be available on portal/app for providing information to consumers. All meters falling under
one DCU shall be commissioned and checked for proper communications in presence of utility in-
charge.
5.1.2 Communication Infrastructure
The communication infrastructure planning should be done on the basis of individual area and the
suitable communication technology for the same. Radio frequency communication/RF mesh network/
PLC or cellular network or a combination of these can be an option based on technical feasibility. The
communication network shall comply with suitable standards from ITU/IEC/IEEE/CEN/CENELEC/ETSI
for HAN, NAN and WAN network. Communication network shall ensure reliable two-way
communication between various nodes (Smart meter/DCU/Repeater/Modem) and HES. Smart
meter/DCU should must support over the air firmware up-gradation for better maintenance of the
communication network. In case of RF based network license free frequency band should be adopted.
Though the engagement of cellular operator falls in the scope of AMI implementing agency, a
thorough check for network availability of different service provider shall be done by DISCOM to
ensure the required performance level.
Figure 5-4: Communication infrastructure
5.1.3 Head End System
The HES acquires meter data through a communication channel without any human intervention and
monitor the same. HES should support the collection and storage of data with adequate scalability in
line with DISCOMs future planning. It should perform all the requisite functions with the help of the
requisite software and hardware to achieve the defined service level agreement (SLA) of AMI. HES
shall ensure data integrity and be developed on open platform based on distributed architecture for
scalability without compromising the performance of the system it shall support storage of raw meter
data, alarms and alerts with optimum data security.

HES should manage data from a multitude of field devices and applications. It shall support integration
through web services/APIs to exchange data with other systems like third party MDMs, billing, GIS,
OMS, streetlight management system, and SCADA etc. The solution/system shall be Service Oriented
Architecture (SOA) enabled. It shall be able to integrate with telecom service providers’ M2M
platforms for deriving status of cellular SIM cards of gateways, DMS nodes, Network Interface Card
(NIC). This should interface with MDMS over SOA/Web services, and the data exchange models and
interfaces shall comply with CIM/XML/IEC 61968/62056.
It shall provide real time information about the network and its associated systems like AMI field
service, work force management system. The various functions shall include:
 Two way communication with meter/repeater/DCU

 Maintain time sync with DCU/meter
 Encryption of data for secure communication
 Signals for meter connect and disconnect
 Acquisition of meter data in push and pull mode (On periodic interval and on demand)
 Store raw data for defined duration
 Audit trail and event and alarm logging
 Handling of control signals/event messages on priority
 Setting of smart meter configurable parameters
 Communication device status and history
 Network information in case more than one technology is deployed in field between the two
devices
 Critical and non-critical reporting functionality
 Alarms and event log for meter events like tamper/power failures etc.
o If data is not received from DCU/Meter
o If relay does not operate for connect/disconnect or there is communication link
failure with DCU/Meter or network failure while non-critical events may be retry
attempts on communication failure
o Periodic reading missing and failure to connect etc.
5.1.4 Meter Data Management System (MDMS)
The MDMS shall support storage, archiving, retrieval and analysis of meter data and various other MIS
along with validation and verification algorithms. It shall act as a central data repository and have
ability to import raw or validated data in pre-defined formats and export the processed and validated
data to various other systems and services in the required format. It shall provide validated data for
upstream systems such as billing, customer care, analytics, reporting, and load analysis, load
forecasting, PLM and OMS etc. MDM should also support the future requirement of DISCOM and
should facilitate the integration of other smart grid functionalities like distribution transformer health
monitoring system, self-healing system etc. as required by the DISCOM. MDM should provide revenue
protection support as well as demand control/demand response support.
MDM must integrate with modern service oriented architectures in order to manage the data across
the many systems, applications and processes that run the business. It must seamlessly integrate with
various applications, and all Business Intelligence (BI) systems, designed to bring the right information
in the right form to the right person at the right time.
It helps to run the operation more effectively and ensures better decisions making. In addition to
supporting and augmenting SOA and BI systems, the MDM applications must support data governance

for defining the data definitions, standards, access rights and quality rules. MDM executes these rules.
MDM enables strong data controls across the enterprise. The MDM applications must have the
following characteristics:
 A data quality function that can find and eliminate duplicate data while insuring correct data
attribute survivorship
 A data quality interface to assist with preventing new errors from entering the system even
when data entry is outside the MDM application itself
 A continuing data cleansing function to keep the data up to date
 An internal triggering mechanism to create and deploy change information to all connected
systems
 A user interface to support casual users and data stewards
 A data migration management capability to insure consistency as data moves across the real
time enterprise
 A business intelligence structure to support profiling, compliance, and business performance
indicators
 A single platform to manage data objects in order to prevent the proliferation of information
on top of the existing fragmentation problem
 An analytical foundation for directly analysing master data
 A highly available and scalable platform for mission critical data access under heavy mixed
workloads
 A comprehensive data security system to control and monitor data access, update rights, and
maintain change history
The DISCOM should specify the performance level for the defined number of smart meters with facility
of scalability. It should have the ability to selectively choose data to be maintained or to be archived
as per requirement.
5.1.5 Customer Engagement Platform (CEP)
CEP offers a comprehensive web portal plus a mobile interface built as a progressive web app to
enhance the utility customer experience with online account management, bills and payments, usage
tracking, and virtual agents for customer’s service. The utility companies can improve their Meter-to-
cash performance by integrating with Demand Side Management systems to create individual offers
and services to various customer segments.
 Customer Relationship Management:

o Enhanced customer experience and reduced service costs with Chatbots
o LiveChat
o Service Management
o Self-help
o Online Account Management
 Outage Alerts:
o Specifying the outage alerts to the customer
 Utility’s Analytics:
o It provides the analytics solutions to the customer which provides different
consumption graph
o Reductions graphs and many more
 Customizable communication preferences:

o Meter-to-cash performance improvement with integration with Demand Side
Management systems
o Create individual offers and services
o Display existing tariff and incentives rates, participation options in alternate plan
5.1.6 Outage Management System
An outage management system (OMS) predicts and tracks resolution of power outages and other
similar events (e.g., unsafe conditions such as wires down) in a utility’s electric distribution system. An
OMS is important on blue sky days, but it becomes the centre of the utility’s universe during major
weather events and facilitates various services.
 Outage prediction:
o The OMS uses outage information from all sources in combination with the
connectivity information of the electric distribution model to predict the most likely
source(s) of the problem(s):
o Service outage isolated to a single customer or to a group of customers
o Transformer outage
o Outage at a higher-level device on the feeder (fuse, recloser, etc.)
o Entire feeder is out
 Calculate Estimated Time of Restoration (ETR):
o Throughout the outage event, an estimated time of restoration (ETR) is calculated
and updated based on the latest information. The customer may be given a default
ETR (e.g., “2 hours”) until more information is known about the fault and restoration
job status
o The OMS may calculate an ETR for the job based on the total number of events
outstanding, priority of the job, number of crews available, etc.
o The crew may give an updated ETR once they have assessed the situation onsite
 Confirm restoration, detect nested outages:
o OMS allows to detect the nested outages as well
 Outage correction:
o An outage correction switch plan may be used after-the-fact to represent exactly
what switching actions happened at exactly what time in order to better represent
how long each impacted customer was out—this results in more accurate outage
metrics
 Planned outages and switching: The OMS can also keep track of planned outages.
o The group needing the outage submits a request
o A switching plan and steps are created (minimizing the number of customers out
and the duration of their outage when possible), checked and approved
o The outage is scheduled—any impacted customers are notified
o The planned outage steps are executed
5.1.7 Demand Response System
MDMS is capable to integrate with existing Demand Response (DR) system(s) to receive the DR
program events, analyse, process, and store these events and can further be integrated with mobile
app/portals to send the notifications to the participating customers.
 DR Event Notification

o MDM can receive the DR event notifications from other external systems
 Analysis of DR Event
o MDM can perform different analysis based on the DR program such as calculating
the baselines
o Load reductions and preliminary baselines
o Sending notification to the customers through different modes such as email
o Mobile and other mobile apps
 Incentive / Penalty Calculation
o MDMS can do the incentive penalty calculations for the DR program
 Generation of Load Report
o MDMS allows to integrate with different external systems which allows to meet the
reporting requirements of the customer
5.2 Smart Meter Operations Centre (SMOC)
Field deployment of smart meters is one the biggest challenges that DISCOMs face in their smart
metering programmes. A dedicated Smart Meter Operations Centre (SMOC) can overcome the
obstacles and significantly reduce rollout risk. It will help in taking accountability for the overall field
deployment and coordination across all business functions. The right approach to field deployment
can result in a saving of 20% -30% in rollout’s final operational costs.
Figure 5-5: Smart meter operations centre
Smart Meter Operations Centre (SMOC) facilitates:
 Platform for business intelligence

 AMI events management
 Centralized project management office
 Enterprise asset management and monitoring
 Consumer and consumption analytics
 Smart metering RoI matrix tracking (e.g. revenue protection and load planning etc.)
 Consumer engagement modelling
 SLA management
 Service ticket management for helpdesk
 Training simulator
SMOC provide following real time visibility to end consumers:
 Consumer billing and energy profile information

 Prepayment information
 Consumer centric analytics
 Alerts on account information updates
 Home energy profiles
 Consumer self service
 Cost saving tips
 Customized communication, DISCOM branding, customer service and feedback
The diagram shown below depicts the external systems as BESCOM existing systems and the SMOC
solution components. BESCOM existing solutions, SMOC and other packages are represented by
different colours in system diagram. The same color legend has been used in other relevant diagrams
also. The system diagram gives an overview of the different systems involved for SMOC solution
implementation and a high level view of information flow between systems.

Figure 5-6: SMOC system and resources
5.2.1 SMOC Systems and Resources

The details of different systems involved and resources required for SMOC are as follows:
5.2.2 SMOC Application Suite
SMOC dashboards and reports: SMOC dashboards and reports should be implemented using best of
breed analytics solution to show KPIs related to meter rollout, meter operations, and select
transaction reports. Data required for dashboards will be sources from external systems and SMOC
systems.
Ticketing: Ticketing system will be part of SMOC solution and will be responsible to store ticket details
related to SMOC operations. Users can login and create/update tickets related. In some use cases,
tickets are also automatically created by other SMOC solution components using APIs.
Smart meter monitoring: The smart meter monitoring solution would be responsible for receiving the
alarms and event generated by smart meters. This would be used for the identification, classification
and collation of events to flag potential theft, fraud and faults.
Asset management solution: The asset management would be the single point for the aggregation of
the meter asset information, along with associated required customer details using additional fields.
This information is maintained via integration from an external system through the API. The repository
would itself not be the master of the information, rather they would reflect the status as propagated
by the system that own the data.
Advanced analytics: This component is responsible for building models using Artificial Intelligence and
Machine Learning algorithms to do predictive analytics for fraud, faults and theft. The product that
would provide the functionality is python.
IT application monitoring and DC network monitoring: This component provides monitoring of the
IT/networking devices in the production zone for SMOC, monitoring of the important virtual machines
in the production zone SMOC, monitoring the key parameters for critical application in the production
zone for SMOC.
5.2.3 Existing Applications
Active directory: Active directory will store the username and passwords for all applications in smart
metering program.
Geographical Information System (GIS): GIS will store the location details of all smart metering assets
smart meters and AMI communication network devices. GIS is based on ESRI ArcGIS platform.
Email server: Email server will be responsible to send emails to users for predefined notification rules.
SMOC solution will integrate with server to send email notifications.
SMS server: SMS server will be responsible to send SMS to users for predefined notification rules.
SMOC solution will integrate with SMS server to SMS notifications.
Field Force Management (FFM): Field force management handles work orders to be executed by staff.
SMOC solution will integrate with FFM to create work orders related to smart meter installation,
inspection (meter faulty and fraud), replacement and removal. Work orders will be created in FFM for
use cases meter related activity is to be performed by staff.
Advanced Distribution Management System (ADMS): ADMS include systems to monitor and control
the electricity distribution network for activities like fault location, isolation, outage identification,

restoration etc. ADMS typically includes SCADA, DMS, OMS and field equipment like feeders,
transformers, sensors, circuit breakers etc. As part of smart metering implementation, ADMS will be
receiving outage and restoration events from smart meter to manage outages.
Fraud Management System: Fraud management system will be responsible to handle fraud related
cases. As part of smart metering implementation, fraud management system will be receiving the
fraud events captured by smart meters and triggering predefined business process.
5.2.4 Other Applications and Resources
Workforce Management System (WFM): WFM is the tool used to create and manage work orders
related to smart meter deployment. These work orders also capture the smart meter details that are
installed and non-smart meter details which are removed from site. WFM provides smart meter
deployment work orders created, status updates to smart meter deployment work orders and details
of smart meters installed.
Head End System (HES): HES is the system which will be the gateway between smart meters and the
enterprise application layer. HES has capabilities to enable smart meter registration/activation into
BESCOMs AMI network followed by activities like remote meter reading, firmware/configuration
updates and command execution.
Meter Data Management System (MDMS): MDMS is responsible to receive data from multiple HES,
run validation and exception rules. MDMS acts as the primary source of meter data for all other
external systems. For SMOC solution, MDMS is expected to be one of the major sources of data.
SAP: SAP is the customer information system used in BESCOM and has details of all electricity
consumers in BESCOM area. SAP will be providing all premise details covered in smart meter
deployment schedule, and the inventory details of smart meters.
Meter Technicians: Meter installers are responsible to replace the non-smart meters to smart meters
or all activities related to smart meter management e.g. smart meter installation, inspection, removal.
Smart Meters: Smart meters are communication enabled electricity meters along with other features
like relay for supply disconnection, local storage for different types of meter reads and events,
capability to accept commands remotely from Head End systems etc.
AMI Communication Network: AMI communication network is the network back bone through which
smart meters send meter data to Head End systems. AMI communication network will consist of
different network devices.
SMOC Operators: SMOC operators will be responsible to monitor the smart meter rollout progress
and operations using SMOC and non SMOC solutions. During the monitoring process, SMOC operators
will initiate actions through systems or offline methods to resolve issues remotely or through
technician’s onsite.
BESCOM Deployment Managers: BESCOM deployment managers are responsible to monitor the
rollout progress of smart meter replacement and work with installation companies to plan and resolve
issues if any.
BESCOM Management: BESCOM management team will be viewing the KPIs related to smart meter
rollout and operations using SMOC dashboards.

BESCOM Analysts: BESCOM analysts will be viewing the output of SMOC advanced analytics and
initiating necessary action either through systems or offline.
BESCOM Enforcement Team: BESCOM enforcement team is responsible to monitor fraud related
alarms/events from smart meters and take necessary action. BESCOM Enforcement team will also
receive work orders for potential fraud based on which site inspection is done by them.
5.2.5 Key Architectural Design Principles
Following architectural decisions have been considered in the SMOC solution.
Figure 5-7: Key architecture design principles
Scalability:
 Infrastructure scalability: The infrastructure should be scalable to meet the varying demands,
website traffic, application development or production needs, new applications, load tests
etc.
 Data scalability: Support scale of input sources both in terms of number of source systems
and transaction/event volume of each source system. Solution should contain capabilities to
scale horizontally without disturbing the base architecture.
 Application scalability: i) Design ensure that new applications can be added without major
impact on overall system; ii) Should ensure it can be scaled easily for new capacity
augmentation (like increase in number of application user).
Performance:
 Design should consider, various workloads and data access patterns and have clear logical
boundaries to perform storage, compute and balanced workloads
 Design should ensure that the query response time(s)/time(s) for analysis/transformation
does not get negatively impacted with scale
Modularity: Architecture should be modular and component based to allow the existing components
to be used to design new functionality or to interface other solutions.
Cloud: Application should be ready to run on cloud computing infrastructure. Cloud native means the
software was designed and built using cloud principles.

Integration: The solution should have ability to integrate and interoperate with other applications
using open standards and integration methods, be it Legacy systems or other future data and analytics
applications/platforms.
Reliability:
 It is achieved by tools that can notify, alert and if possible, predict node, disk or application
failure. Failure of node, disk or any network component should not affect the overall
functionality
 The solution should be designed in such way that it will serve users even when confronted
with node failures or network partitions
Interoperability: The proposed solution must have open and industry standards for interoperability
and the solution components shall be standard based and adopt an open approach rather than
support a specific technology.
Service Oriented Architecture (SOA): AMI solution components must follow SOA principles to provide
specific services using well defined interfaces and service driven architecture at the core of it. AMI
system features can be accessed via any user interface (Internal or third party applications) which shall
work on top of these services. Adoption of open standards are of paramount importance for the robust
and scalable AMI system.
Business Continuity and Disaster Recovery: Disaster recovery services to ensure continuity of
operations in the event of failure of primary data center meet the Recovery Point Objective (RPO),
Recovery Time Objective (RTO) and failover requirements.
Cyber Security: It’s becoming clear that there’s a need to implement better security for critical
infrastructure. Of even more pressing need is the transition from old, serial based networks to more
modern IP based infrastructure. This move requires the incorporation of corporate network security
controls into critical infrastructure networks.
Micro Services: Micro services is a popular, modern practice; with the help of Micro services different
component of AMI can be segregated in different small services which can be deployed and operated
independently for each other.

5.3 SMOC Enterprise Architecture
54
The architecture overview gives an overview of the SMOC solution and its components, and the external systems sending or receiving data from SMOC.
Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses
Figure 5-8: SMOC solution architecture

There SMOC is shown as a system and different resources/actors participation in the system. Here the
application suite has been elaborated and the overall architecture of the solution is shown, several
subsystems architecture has been shown in subsequent pages where talking about specific
functionalities.
FTPS server: The File Transfer Protocol on SSL (FTPS) server will be holding all the CSV file extract
provided by source systems.
Integration platform: Integration platform is the enterprise service bus/middleware which will push
data to SMOC solution or receive requests from SMOC depending for various use cases. Integration
platform will be responsible to integrate with downstream and upstream applications and BESCOM
systems and provide required data to SMOC.
SMOC integration layer: This layer will be used to integrate SMOC with external systems in this
project.
Scalable, distributed and high performance data streaming platform: This platform will be used to
implement SMOC where near real time alarms shall be analysed.
In large scale smart meter rollouts establishing the SMOC is very essential to manage data collection,
data integration, data provisioning and data analytics.
Figure 5-9: AMI data processing
5.3.1 SMOC Asset Management
Best of breed asset management solution should be implemented to meet the asset management
requirements of smart meter program. It will maintain consumer premises, smart meter assets and
collector assets. The asset management would be the single point for the aggregation of the meter
asset information, along with associated required customer details using additional fields. This

information is maintained via integration from an external system through the API. The repository
would itself not be the master of the information; rather they would reflect the status as propagated
by the system that own the data. Following modules will be implemented:
 Service address: A premise is a physical location where smart meter has to be installed (The
existing one has to be removed and smart meter has to be installed). The physical location of
AMI communication devices (Collectors) will also be stored in service address application.
 Work order: Work order tracking application will be used to create and update work orders
for smart meter assets and premises where smart meters are installed.
 Assets: The assets application will be storing details of smart meters assets and the AMI
communication network device assets.
 Labour: The Labour application will be storing details of labour working on maintaining smart
meter assets and AMI communication network devices.
Figure 5-10: SMOC asset management
5.3.2 SMOC Dashboards and Reports
The dashboards will provide various graphical and tabular views along with KPIs related to smart meter
rollout and meter data operations. These views will be provided by sourcing data from multiple SMOC
and non SMOC systems and presented in visualization layer.

Figure 5-11: SMOC dashboard and reports
5.3.3 Smart Meter Monitoring
The smart meter monitoring solution would be responsible for receiving the alarms and events
generated by smart meters and AMI communication network devices (Collectors). This would be used
for the identification, classification and collation of events to flag potential theft, fraud and faults.
Following modules will be configured in smart meter monitoring:
 Operations Management (Alarm Management): This module will receive alarms and events
from smart meters and collectors from MDMS (smart meter alarms and events) and HES
(collector alarms and events). The events and alarms will be grouped logically for those with
similar names.
 Alarm views: This module will provide dashboard views of the alarms and events coming from
smart meters, collectors and DC network devices. In these views, users can acknowledge,
escalate, prioritize events and also initiate new tickets in ticketing system.
Figure 5-12: Smart meter monitoring

5.3.4 Ticket Management using Control Desk
Control desk will provide functionalities for creation and lifecycle management of the ticket either
manually or through automated process on identification of a problem in the smart meter events or
IT events or via manual observation on the SMOC dashboard.
Following functionalities will be configured in control desk:
 Incident management: This module will provide interface for raising and managing all the real
time incidents by users and also provides additional interface for automations to raise
incidents in real time.
 Problem management: This module will provide interface for raising and managing all the
problem cases by users and also provides track of problem resolutions.
 Workflows: This module will provide automations for creating automatic workflow
management for incident and problem cases.
Figure 5-13: Ticket management using control desk
5.3.5 IT Application Monitoring
IT Application monitoring will provide monitoring of IT/networking devices, virtual machines

infrastructure monitoring and application performance parameters.
 Monitoring of the IT/networking devices in the production zone for SMOC

 Monitoring of the important virtual machines in the production zone SMOC
 Monitoring the key parameters for critical application in the production zone for SMOC

Figure 5-14: IT application monitoring
5.4 System Integration Framework
SMOC integration involves integration of SMOC components with external applications and BESCOM
existing systems. SMOC integration also includes integration between SMOC applications. The
interfaces between the MDMS and other DISCOM systems should be done in way so that it provides
efficient processing and minimises processing time and it must ensure sufficient flexibility to
accommodate future system change.
 Use SOA: A SOA enables to reduce the cost of development and enhancing flexibility to
accommodate continuing advances in AMI technologies.
 Flexibility and data reuse: Enterprise Application Integration (EAI) service buses can be
leveraged as the preferred interface both between the AMR systems and the MDMS and
between the MDMS and backend applications.

5.5 KPI Targets of AMI System
AMI system performance largely depends upon network service provider and AMI implementing
agency. The desired performance level of the system is as follows:
Table 5-1: Key performance indicators
Sl Requirement Performance Level

No
1 Collection of daily meter 1. All interval data from 95% of meters within 8 hours after
readings (as per IS 16444/15959 midnight
part 2)
2. All interval data from 99.9% of meters within 24 hours after
midnight
2 Remote reads of individual 1. Action performed at 90% of meters within 1 Hour
meters if data is not received on 2. Action performed at 99% of meters within 2 hours
daily basis.
3. Action performed at 99.9% of meters within 6 hours
3 Remote load control commands 1. Action performed at 95% of meters within 5 minutes
for selected consumers 2. Action performed at 99% of meters within 10 minutes
4 Remote connect/disconnect for 1. Action performed at 90% of meters within 10 minutes
selected consumers 2. Action performed at 99% of meters within 1 hour
3. Action performed 99.9% of meters within 2 hours
5 Meter loss of supply and outage 1. Alarms to be received within 5 minutes for 90% of meters
detection
6 Remotely altering settings in 1. Action performed at 99% of meters within 24 hour
meter/ firmware upgrade 2. Action performed at 99.9% of meters within 36 hours
7 Remotely read events logs 1. Action performed at 90% of meters within 30 minutes
2. Action performed at 99% of meters within 1 hour
3. Action performed at 99.9% of meters within 6 hours
8 Reading the event logs 1. The data pertaining to 99.5% of meters with in 1 day
pertaining to all meters
9 Updating of data on consumer 1. Action performed for 90% of consumers within 1 hour after
portal/app. The performance receiving the data in MDM
level of updating of individual
2. Action performed at 99.5% of meters within 6 hour after
consumer data on portal/app
after receiving the data in MDM. receiving the data in MDM
Performance Requirement for User Interface
10 Any real time display and 1. Within 2 sec
application display on
workstation console along with
data values shall appear on
screen.
11 Manual data entry of the new 1. Within 2 sec
value appears on screen
12 Display update rate 1. 2 sec for 4 displays together
13 Response time for display of 1. Within 1 sec of receipt in system
alarm and event after receipt in
system
14 Requests for printing of displays 1. Within 2 sec
(To be acknowledged with an
indication of request is being
processed).

15 Requests for generation of 1. Within 2 sec
reports (to be acknowledged
with an indication of request is
being processed).
Note: * The performance level for generation of bills would be as per requirement of the utility.
*The performance levels are average performance levels over the period of a year and exclude force
majeure events.
5.6 Pay-for-Performance Program
Pay–for–Performance (P4P) model for the implementation of smart metering or AMI programs is an
innovative business model proposed by ISGF way back in 2016 in a White Paper3. Based on the
experience of Indian DISCOMs in implementation of Automated Meter Reading (AMR) for feeder
meters as part of the R-APDRP projects in various states during 2009-2015 period, ISGF proposed this
new model of engaging a Metering Services Agency (MSA) who will be responsible for selection of
appropriate technologies for the AMI system, select project partners and OEMs, implement the entire
AMI system and maintain it for ten years. The DISCOMs will specify the SLAs and based on the
performance will pay a monthly fee per meter for ten years. In this scenario, there is no risk of wrong
technologies and non-performing assets accumulated by DISCOMs.
This model was first adopted in a partial manner by EESL under the Smart Meter National Programme
(SMNP) in Uttar Pradesh and other states. EESL has already implemented 1.6 million smart meters in
this model where DISCOMs have not made any upfront payment to EESL; instead paying INR 87-110
per meter per month.
Based on the success and acceptability of the EESL projects in UP and Bihar, Ministry of Power has
adopted the P4P model in a TOTEX form (15% upfront payment and rest on monthly payments per
meter for 84 months) in the Standard Bidding Documents (SBD) for rollout of 250 million smart meters
under the RDSS program.
5.7 KPIs and SLAs
The AMI implementation agency shall be measured on certain KPIs and SLAs during the Built-up &
Deployment, Implementation & Go live and O&M phase. The AMI implementation agency shall only
get compensated if their work meets the basic parameters in KPI and SLA as mentioned below. The
agency shall provide daily/monthly reports for these parameters. (e.g. total number of instances of
portal being down in a month, latency of UI, availability etc.).
Table 5-2: Performance criteria with penalties
Data Type Performance Penalty

Requirement (averaged
over a month)
1. Scheduled Tasks
1.1 Scheduled Interval data readings
Periodic collection of the interval From 95% of meters Deduction of 0.2% of Monthly
(Assuming 30 minutes interval, within 8 hours Fee for every 1% or part there
may be changed based on the of capped at 1% penalty
3
Give the link of ISGF White Paper: https://indiasmartgrid.org/report_register.php?report_id=73

specific AMI cluster requirement)
load profile data for the day
1.2 Scheduled Interval data readings
Periodic collection of the interval From 98% of meters Deduction of 0.2% of Monthly
(Assuming 30 minutes interval, within 12 hours Fee for every 1% or part there
may be changed based on the of capped at 1% penalty
specific AMI cluster requirement)
load profile data for the day
1.3. Scheduled daily meter readings
Previous days (All previous days From 99.5% of meters Deduction of 0.2% of Monthly
from the last billing cycle) interval within 24 hours after Fee for every 1% or part there
energy and total accumulated midnight of capped at 2% penalty
energy
1.4. Scheduled billing profile data for the bill period
Collection of billing data for the bill From 99.5% of meters Deduction of 0.5% of Monthly
period before the next periodic Fee for every 0.5% or part there
collection is scheduled. of capped at 3% penalty
2. Remote Actions / tasks performed by AMI System
2.1 For remote connect/disconnect with acknowledgement/ response for selected meters
Remote connect / disconnect of Action performed at 90% Deduction of 0.5% of Monthly
the AMI meters of meters within 15 Fee for every 0.5% or part there
minutes of capped at 2.0% penalty
2.2 For remote connect/disconnect with acknowledgement/ response for selected meters
Remote connect / disconnect of Action performed 99.5% Deduction of 0.25% of Monthly
the AMI meters of meters within 6 hours Fee for every 0.5% or part there
of capped at 1.0% penalty
Source: REC
The HES implementing agency shall be measured on certain KPIs and SLAs during the Implementation
and O&M phase. They shall only get compensated if their work is of high quality and bears maximum
efficiency. The basic parameters in KPI and SLA are mentioned below. HES implementing agency shall
provide daily/monthly reports for these parameters. (e.g. total number of instances of
portal/CMS/mobile application being down in a month). The table below shows the performance
criteria and service level agreements along with penalties for HES Specific service levels.
Table 5-3: Service levels for HES specific services
Sl No Parameter Service Level

1 Offline actions between HES and MDMS 80% completed in 7 seconds and 99% within
30 seconds
2 On demand actions carried out on High 1) Action performed at 90% of meters within 1
Priority Hour
(2) Action performed at 99% of meters within
2 hours; and
(3) Action performed at 99.9% of meters
within 6 hours.
3 On demand actions carried out at Low 95% completed within 24 hours and 99%
Priority within 72 hours

4 Actions carried out on predefined 90% completed within 1 hr. of scheduled date
Schedule date and time and time and 99.9% within 24 hrs. of
scheduled date and time
5 Recurring data delivery actions 95% completed within 8 hours after midnight
and 99.9 % within 24 hrs. after midnight.
6 Alerts and notifications 95% submitted to HES in 5 minutes of
occurrence and 99.9% within 24 hours
7 7A: Actions related to Firmware5 95% of individual assets to be modified
upgrade or rollback activity for asset (updated or rollback) within 3 working days of
population < 10,000 scheduled date (update) or requested date
(rollback) and 99% of individual assets to be
(updated or rollback) within 5 working days of
scheduled date (update) or requested date
(rollback)
7B: Actions related to Firmware5 95% of individual assets to be modified
upgrade or rollback activity for asset (updated or rollback) within 10 working days
population > 10,000 and <50,000 of scheduled date (update) or requested date
(updated or rollback) within 15 working days
of scheduled date (update) or requested date
(rollback)
7C: Actions related to Firmware5 95% of individual assets to be modified
upgrade or rollback activity for asset (updated or rollback) within 30 working days
population > 50,000 of scheduled date (update) or requested date
(updated or rollback) within 90 working days
of scheduled date (update) or requested date
(rollback)
8 Performance level for remote load (1) Action performed at 95% of meters within
control commands for selected 5 minutes;
consumers (2) Action performed at 99% of meters within
10 Minutes
9 Performance level for remote connect / (1) Action performed at 90% of meters within
disconnect for selected consumers 10 minutes;
(2) Action performed at 99% of meters within
1 hour; and
(3) Action performed 99.9% of meters within
2hours.
Source: Intellismart
The urgency is classified in four categories:

 Critical: If not dealt with immediately the service will escalate many times over within a short
time-period or Incident has Tax, Legal or Statutory impact
 High: If not dealt with in the very near future (within the half day) the service will escalate
severely till solved
 Medium: If not dealt with in the near future (within 2 days) it will impede business/ IT
processes
 Low: All others

Table 5-4: Severity levels (P1/P2/P3/P4)
Severity Levels (P1/P2/P3/P4) are decided based on these two dimensions through the
following grid
Urgency Extensive Significant Moderate Minor
Critical P1 P1 P2 P1
High P1 P2 P2 P2
Medium P2 P2 P3 P4
Low P3 P3 P3 P4
Table 5-5: Penalty applicable for different severity level
Applications support Expected Minimum Penalty (% of monthly O&M

charges)
Incident Response Time 99.00% 95.00% 0.50%
P1 Severity Level Incidents 99.00% 95.00% 0.50%
Responded within 15 mins
Responded within 120
mins
Incident resolution time

P1 Severity Level Incidents 2 Hours 2 Hours 1% (for every P1 incidents breaching
Resolved as agreed SLA) beyond which 0.1% per hour
per incident
P2 Severity Level Incidents 8 Hours 8 Hours 1% (for three P2 incidents breaching
Resolved as agreed SLA) beyond which 0.05% per hour
per incident
P3 Severity Level Incidents 16 Hours 16 Hours 0.5% (for five P3 incidents in a
Resolved as agreed month) beyond which 0.02% per
hour per incident
P4 Severity Level Incidents 32 Hours 32 Hours 0.5% (for ten P4 incidents in a
Resolved as agreed month) beyond which 0.02% per
hour per incident
EESL has signed MoUs for smart meters with Andhra Pradesh, Uttar Pradesh, Haryana, Bihar, NDMC-
Delhi, Rajasthan, and Telangana and for prepaid meters with the states of Uttar Pradesh and Tripura.
Table 5-6: IRR calculation for smart meters
Year @25% S/W Cost @ 40% S/W Cost @ 50% S/W Cost
2022 -3629 -4536 -5444 Smart Meter Cost 4536
2023 1031.4 1031.4 1031.4 Hardware 2722
2024 1031.4 1031.4 1031.4 Software 1814
2025 1031.4 1031.4 1031.4

2026 1031.4 1031.4 1031.4
2027 1031.4 1031.4 1031.4 Software Cost
2028 1031.4 1031.4 1031.4 @ 25% 907
2029 1031.4 1031.4 1031.4 @ 40% 1814
IRR 21% 13% 8% @ 50% 2722
UPPCL being the Nodal Agency for Smart Meter Rollout in Uttar Pradesh is paying 85.95 INR per month
for 7 years to EESL. The revenue generated by the meter is INR 1031.40 (85.95X12) per annum. The
Internal Rate of Return can be calculated with the help of below mentioned three scenarios. It is
assumed that the software cost of the meter can vary form 25 % to 50%, whereas with 40% software
cost the IRR is 13% as shown in the table above.

6 06 Business Models
6.1 Cost Estimates and Cost-Benefit Analysis of AMI
6.1.1 AMI - Drivers and Stakeholders
 Government Regulations: Through regulations, tax structures, cost recovery mechanisms,

and financing, governments can play an essential role in stimulating the implementation of
AMI. The rules that ensure interoperability, define the scope of data privacy, and set long-
term cost-benefit criteria. The GoI is assisting DISCOMs by enacting various schemes and
regulations to help them strengthen their power sectors. The government is taking AMI
deployment on a larger scale and at a faster speed more seriously. The GoI has recently made
a determined effort to promote smart meter deployment under the SMNP, which intends to
replace 250 million traditional meters in India with smart meters.
 Cost Savings: Meter readers do not need to physically access smart metres to take a reading
since they are fully digitized. This results in significant cost savings for DISCOMs, as these
employees may be utilized for other activities, reducing the need for new hires. Smart meters
can also help DISCOMs to save money by maximizing the use of existing resources. Smart
meters communicate real-time data to DISCOMs, allowing them to make fully informed
decisions about where to deploy assets, especially when distributed energy resources are
involved. Increased load does not always necessitate increased infrastructure, and smart
meters can assist DISCOMs to determine when this is the case. DISCOMs can use AMI data to
enhance billing accuracy, reduce consumer complaints, and resolve billing disputes faster. AMI
allows DISCOMs to discover and notify customers of unexpected usage trends ahead of time,
before bills are sent out. Pre-pay billing services, which help customers avoid defaulting on
payments, can also help DISCOMs to increase revenue collection and cost recovery. Apart
from that, enhanced tamper and theft detection capabilities provided by AMI deployments
improve revenue collection and reduce costs.
 Ability to offer new rates and services: Many attempts have been made to enhance the
progressive billing mechanism of the electricity rate, and ToU pricing is emerging as a viable
option, that refers to the segregation of energy rates based on the time in which the energy
is being consumed. ToU is a way in which DISCOM providers attempt to alleviate demand
during peak periods by enforcing a tariff structure that charges an increased rate within the
typical peak. AMI is capable of introducing a variable dynamic pricing mechanisms into the
system, as well as a variety of services related to E-mobility, particularly for EV charging.
Apart from these, many technical parameters act as a driver for AMI deployment considering
reliability, managing distributed energy resources, and positive environmental impact.
6.1.2 AMI System Costs
The total capital costs of deploying AMI include the hardware and software costs (meter modules,
network infrastructure, and network management software for the AMI system), as well as installation
costs, meter data management, project management, and information technology integration costs.

9%
11%
45%
15%
20%
Endpoint Hardware Network Hardware Installation Project Management IT
Figure 6-1: AMI costs
6.1.3 Cost Benefit/Cost Value Analysis Fundamentals
 Costs: Total Costs for a program

 Benefits: All the benefits (avoided costs, deferred costs, intangibles and value adds)
 Interest rate, discount rate, minimum attractive rate of return (MARR)—all mean the interest
rate to use in the calculation
 Rate of return, return on investment, and internal rate of return—all mean the “interest rate
where the present worth of the investment equals the present worth of the savings.”
 Simple Payback (SPB) is the number of years before the savings “payback” the investment
o SPB = Investment/ Net Annual Savings
 Salvage Value is the value of the equipment at the end of the project life. Sometimes salvage
value is positive and sometimes it is negative
 Rate of Return and Payback
 Net Present Value – Time Value of Money
6.1.4 Case Studies
The following case studies reflect the experience of numerous international electrical utilities with the
rollout of AMI. Where possible, information was gathered from representatives of each utility who
were directly involved in the implementation effort. Within the context of these case studies, a full
implementation represents 100% completion within the scope of each utility’s project.
ONCOR: ONCOR is an electric utility based in the southern region of the United States, which operates
the largest distribution and transmission system within the state of Texas. The utility supplies power
to about 7 million consumers, covering an area of over 120,000 miles of distribution and 14,000 miles
of transmission lines. The utility’s AMI deployments started in 2008 and they have since completed a
rollout of about 3.5 million smart meters to date. ONCOR employs a two way communications
network, using a 900 MHz RF mesh network with smart meters that utilize large capacitor packages.
AMI Cost Savings: Since the AMI rollout, ONCOR has remotely completed almost 17 million service
orders, eliminating the need to drive over 114 million miles, resulting in savings of up to 9.5 million
gallons of fuel.

ONCOR AMI Deployment: The average new meter installations per day was about 3,500. Supporting
the smart meter rollout, ONCOR also launched an extensive consumer education campaign, teaching
their customers the benefits of smart meters. The smart meters record consumption every 15 minutes
and ONCOR has established a Smart Meter Web Portal allowing consumers to access and review their
electricity consumption.
Southern California Edison (SCE): SCE, the largest subsidiary of Edison International, is the primary
electricity supply company for much of Southern California, United States. It provides 5 million
customers with electricity across a service territory of approximately 50,000 square miles.
AMI System and Communications: The communication system is composed of three infrastructure
subsystems: WAN, FAN and LAN. For instance, the WAN infrastructure subsystem may include high-
speed fiber; 4G cellular; 5G cellular; and dedicated, utility owned, cellular point to multipoint or point-
to-point systems.
Table 6-1: SCE smart connect costs and benefits
USD Millions, Nominal Deployment Post Deployment Post

Costs Deployment Benefit Deployment
Costs Benefit
Operations Capital 1187.9 410.2 86.5 341.6
O&M 258.3 823.1 170.7 3704.4341.6
Total 1446.2 1233.3 25701 3704.4
Demand Capital 38.8 16.3 70.3 4046.0
Response O&M 148.5 332.6 110.2 161.8
Total 187.3 348.8 180.5 2792.0
Total Capital 1266.7 426.4 156.8 2953.8
(Operations O&M 406.8 1155.7 280.8 503.4
and Demand Total 1633.5 1582.1 437.6 6496.3
Response)
Total 3215.6 7437.3 6999.7
SCE AMI Deployment: As the largest rollout of smart meter technology ever undertaken in the United
States, SCE’s Smart Connect project demanded a comprehensive, multi-layered solution – one that
could define new business and technical processes before addressing the myriad logistical issues
associated with implementation.
Phase I: Project planning for business process design, initial systems integration work, development
of a test plan, and development of a policies and procedures manual.
Phase II: Pilot installation and testing of systems integration work and execution of the test plan,
including the installation of approximately 10,000 meters.
Phases III and IV: Full meter deployment of approximately 5.2 million meters. The main contractor,
CORIX, was responsible for residential installation, including all personnel, AMI inventory, equipment,
warehouse and office space, software, and work management tools. Teams from SCE conducted the
equivalent implementation for commercial customers. Meter deployment was conducted as a
geographical rollout with each sector installed and tested across the state.

Utility Case Study – AMI Cost Benefit Analysis
Table 6-2: AMI cost calculations
AMI Cost Calculations

Number Customers 579393
Capital (USD) Annual O&M
Software Implementation
Application specific software cost 2800000 560000
Application hardware cost 1300000 260000
Software integration cost 852431 35508
Customer web portal development NA NA
Total software cost 4952431 855508
Meters and Installation
Average material cost per meter 119.5
Installation labour cost per meter 24.8
Vendor project management cost per meter 10.76
Percent damaged meter base repair cost 0.2%
Average damaged meter base repair cost 900
Total hardware cost 102338272
Metering Communication
Fixed network (Cost per meter) 1.8
Installation cost for network per meter 0.77
Vendor project management network cost per meter 3.46
Total communication cost 3939192 1900000
Project Management
FTEs required 16 1
Annual cost per FTE 210000 250000
Total project management 3380000 260000
Training
Customer training
Employee training 400000 50000
Business process changes 554000 55400
Total training cost 954000 106400
Total initial cost 116643896 3110908
Annual Ongoing Capital Cost
Annual meter replacement cost 1143402
Table 6-3: AMI benefit calculations
AMI Benefit Calculations

Meter Reading Savings
Normal read – Total cost to read per month 963993
Number of meters per month 579393
Average cost to read per meter 1.66
Special read – Average percent of meter per month 3.2%
Special read – Average number of meters per month 18541
Special read – Cost to read per meter 3.58
Special read – Total cost to read per month 66375
Monthly meter reading cost 1030368
Workforce reduction – Percentage 95%
Adjusted monthly manual meter reading cost 978850
Total annual savings 11746198
Customer requested – Connect/Disconnect
No. of Meters per month 11588
Average cost to connect/disconnect per meter 19.78
Total manual connect/disconnect 458416
Field collection for Non-pay

Number of field site visit per months 1333
Percent disconnect (Repeat visit required for reconnect) 45%
Average cost for field site visit 20
Total Non-Pay field collection 38667
Workforce reduction - Percentage 85%
Adjusted monthly manual meter reading cost 422520
Total annual savings 5070241
Table 6-4: Cost benefit analysis for AMI
Cost Benefit Analysis for AMI

Item Base Case 5-year Base Case 10-year
Deployment Deployment
Costs (Cumulative 20 years)
O&M expenses for AMI system 665 653
New capital investment for AMI system 996 1031
Sub Total 1661 1684
B. Operational Benefits and Delivery Service Revenues (Cumulative 20 years)
Operational efficiencies and Cost reductions 1625 1539
Avoidance of capital expenditure 3 3
Collection of delivery service revenues due to reduction in 564 531
UFE and CIM
Sub total 2192 2073
C. Additional Benefits (Energy, Transmission and Other Rider Cost Reductions and Revenues)
(Cumulative 20 Years)
Reduction in energy purchased power costs due to 708 667
reduction in UFE and CIM
Collection of energy and other revenues due to reduction in 1051 991
UFE and CIM
Reduction in bad debt expenses 791 745
Sub Total 2550 2403
D. Total (Cumulative 20 years)
Benefits less costs 3081 2795
E. Net Customer Impact
Net Present Value (NPV) 1296 1152
Discounted payback period (Customer perspective) 8 years 9 years
6.2 Business Models
6.2.1 Drivers of AMI Business Case
The total cost of AMI deployment and the payback period differed significantly from utility to utility,
revealing the plethora of elements which go into determining a utility's unique business case. The total
cost of the AMI procurement and installation included not only the meter, but also a variety of non-
meter fixed costs, including communications equipment upgrades and data management systems.
Software and licensing fees, installation labour, information technology testing and requirements
gathering, project management, software integration, and staff training were among the non-
hardware costs.
Total implementation cost and the rate of return on AMI investments are determined by multiple
factors:
 Full scale implementations generally has a lower total cost per meter because AMI

communications network upgrades, data management system integration, and other fixed
installation costs make up more than half of the total cost per meter on average. The meter
device cost represented only about 47% of the total cost per meter on average. The total cost
per meter reported by the pilot scale projects skews the distribution, because the integration
of communications equipment and information systems is a fixed cost that is allocated across
a relatively smaller numbers of meters. Once the communication networks and data
management systems are in place, the incremental cost per additional meter typically drops.
15%
47%
21%
17%
Meter Data Management Communication Other
Figure 6-2: Average installation cost per meter breakdown in USA

(refer Appendix III for Smart Meter Status in USA)
 Enabling smart meter features and integrating AMI with a larger number of utility systems can
raise the total AMI implementation cost, but also increase the value of benefits to support the
business case. Additional functions enhanced revenue recovery from tamper detection,
reduced outage management costs, enhanced voltage monitoring, and reduced peak demand
from AMI enabled DSM programs.
Customer outreach and education contribute to overall cost, and vary by project. Some utilities may
experience push back from customers who are concerned about the perceived risks of smart meter
health effects and data privacy intrusions. Smart meter opt-out provisions are offered to address
these concerns.
Table 6-5: AMI business models
Business Model Model Description Considerations

Capex Model  A part of the payment made on the  Payment terms linked to implementation
supply of material milestone and predefined Service Level
 Remaining amount structure over Agreements (SLAs)
the project deployment and  Detailed Bills of Quantity (BOQ) to be
operations, generally in equal determined at tender stage
monthly instalments
Savings Model  Minimal/ Zero upfront payment by  Payment terms linked to meeting agreed
utility project saving KPIs
 Payment based on realization of  Requires creation of utility governance
benefits (Recovery capped at return structure with nominated officials for
expectations of the funding agency) decision making and monitoring of project

 Payment terms to consider timely
installation
 Should have clearly defined and agreed
baseline and M&V methodology
Lease Model  Payment over a specified tenure on  Payment terms to consider timely
a per consumer per month basis installation and meeting of defined
 Features of the lease model can also equipment SLAs
be structure with capex, and/or  Detailed BOQ may not be required for
saving models to bring elements of tendering however need to be specified
other models also. As an example, for reference and use
for the recent Smart Meter
procurement by EESL, its investment
recovery from utilities in UP and
Haryana is in form of lease payments
over the project lifecycle (10 years)
Utilities may decide to adopt aforementioned models on the basis of their own unique characteristics,
financial and risk appetite. They approach asset ownership through one of two models: the managed
service provider model and the utility owned model. The choice is driven largely by the type of
regulatory environment within the region, but security often plays a role as well.
6.2.2 Utility Owned Model
The assets are owned and operated by the utility. This model’s main attributes are as follows:
 The utility is responsible for procurement, finance, implementation and upgrades

 The utility must anticipate formal IT teams and processes for scheduled upgrades
 There is potential to participate in bulk purchasing
 The potential for stranded assets is high
The utility owned model is the most common approach. The prevalent regulatory paradigms are to
accountable for this. Despite a recent shift toward utilities contracting AMI as a managed service, the
complexity of integration and limited cost recovery alternatives have resulted in the majority of
existing large deployments being done by utilities.
Since each utility's value streams provide a unique set of advantages, the AMI business case differs
from utility to utility. The procurement, installation, and integration of smart meters, communications
equipment, and data management systems, as well as organizational costs, are all included in the AMI
business case. As a result, the following must also be included: Fees for software and license, labour
for installation, information technology testing and requirements gathering, project management,
software integration, and employee training.
6.2.3 Managed Service Provider Model
In the managed service provider model, the assets are owned and operated by a service provider.
The main attributes of such an arrangement are as follows:
 Hosted/SaaS/lease model approach

 Vendor manages installation, upgrade
 Vendor owns performance service-level agreements
 Operational cost model, with minimal capital costs
 Telecommunications and security are critical

 Change management is the responsibility of the service provider
There are several managed service providers of Field Area Network (FAN) communications, AMI
headend, and backhaul communications that have deployed their offerings worldwide. Quite often,
the AMI head end is provided as a hosted solution on the utility’s data centers.
6.2.4 Finance Build Own Operate Transfer (BOOT) Approaches
The Smart Metering programme implemented by EESL in various states, has a unique characteristic of
seeking no upfront capex requirements from DISCOMs or state governments wherein all investments
for installing and operating the meters over the years, along with complete digital backend IT systems
for remote operations, is being undertaken by IntelliSmart. IntelliSmart implements the Smart
Metering (AMI) solution under BOOT Model. The DISCOMs are required to pay the monthly lease
rentals only and that too out of the savings they make due to smart meters, over the operations
period. This model would work on the lines of Pay as you Save (PAYS) approach.
Figure 6-3: IntelliSmart business model
Key Component costs:
 Cost incurred for AMI components. (Project CAPEX)

 OPEX (O&M/FMS Expenses, Cloud Hosting Charges, ATS/AMC and GPRS charges) during the
project period
 Project Management Cost (PMC)
 Interest and financing charges
 Return on Equity
 All the cost components shall be excluding GST and other applicable statutory taxes and shall
be charged extra as per actual
6.2.5 Other Innovative Business Model
Innovative business models may be explored to eliminate the technology risk for the DISCOMs. Also
business models that reduce the capex and requirement of technical manpower to maintain the AMI
system at the DISCOM may be considered favourable. One such business model where in AMI is

provided as a service for a monthly fee per customer is described in Appendix II. In this model, a
financial intermediary such as a bank or any other financial institution will procure the smart meters
and lease them to the utility against a monthly rent for a period of ten years. Since AMI involves
expertise in three distinct domains, namely, metering, telecommunication and information
technology (including both software and hardware), and experience from around the world shows
that no one agency could master these distinct components of AMI, it is proposed to appoint a
Metering Services Agency (MSA) who will be responsible (along with their sub-contractors and
associates) for a variety of functions related to implementation of AMI and its maintenance.
6.2.6 Cost Recovery
Across utilities and geographies, a variety of cost recovery mechanisms are in use. Localized regulatory
models by country, state, or province drive these. The cost recovery models can be divided into several
categories:
 Regulated rate increases: The DSO negotiates with the regulators on the costs and rate of
return for the AMI deployment. This model is used in North America.
 Market based rate increases: The charges are passed on to ratepayers based on market
principles and regulatory guidance on cost-benefit analyses at the utility or DSO level. This is
the European Union's model.
 Rate of return model: In this approach, regulators create detailed definitions of expenses,
interest rates, and other critical characteristics in order to calculate a rate of return that
includes an inflation adjustment. In Australia, this model is used.
 Cost per meter benchmark: For cost recovery purposes, the regulators evaluate the nominal
cost of adopting AMI in terms of a "per meter" benchmark. This was popular in Australia, but
it is no longer in use. The Australian Energy Regulator (AER) established a "Revised Order" that
became the key tool for determining metering service pricing. The new Order outlined a
fundamentally different approach to pricing: a cost pass-through model in which rollout
budgets are defined in advance and annual charges are calculated based on actual
expenditure. The final report from AER, which included a computation of the Weighted
Average Cost of Capital (WACC), established a return for costs linked to AMI adoption while
establishing minimal performance standards.
 One time incentives with a time window: The DSO pays for AMI deployment with a onetime
incentive (tax write-offs or subsidies). These are frequently used in conjunction with other
models to strengthen the business case, as well as a stand-alone cost recovery model.
 Proportional or annual penalty levies: If the DSO fails to deploy AMI and smart meters within
a mutually agreed-upon time range, penalties will be applied. Several EU countries, notably
Germany, utilize this form of penalty.
6.3 Evaluation of Business Models to Finance the AMI Project
DISCOM should take a rigorous approach to identify costs and benefits in order to appropriately decide
which AMI programs to pursue and when. The business cases can be decided on the basis of following
factors:
 The cost assumptions should be both holistic (all-inclusive) and conservative (no overlapping
benefits) in order to appropriately account for all program benefits

 It is common for a project lifecycle to be considered over a 20 year period to align with most
vendor warranty periods. Alternative scenarios can consider the effects of different
deployment paces and timing of expected benefits
 The most robust financial models will allow a utility to compare several scenarios with a simple
toggle to turn the programs on or off and automatically recalculate the financial metrics
 The industry trends seem to indicate that most utilities are moving towards a preference for
hosted/SaaS solutions. Ultimately, the decision process should consider IT strategic plans,
budget and resource availability at the utility

7 07 AMI Rollout Recommendations
7.1 Technology Selection Guidelines
The DISCOMs may priorities the customers and locations for deployment of AMI according to feeders
having majority of customers with high monthly consumption (>1000 units, >500 units, >200 units),
feeders with high AT&C loss (>15% feeders) and feeders with high annual energy sales. AMI rollout
may be undertaken for all feeders that will enable online energy auditing. All new meters to be
purchased from July 2016 to be smart meters conforming to the latest amendments of IS 16444 and
IS 15959. Selecting a smart meter involves considerations across four domains: features, technology,
applications envisioned, and vendor. Based on study analysis, DISCOMs prioritized different domains
when selecting a smart meter.
Table 7-1: Smart meter technology selection guidelines
Features Technology Applications India and

Global
Vendors
 Instantaneous voltage and  Single, Three phase  Interval consumption  L&T
current metering measurements  Landis+Gyr
 Peak voltage and current  Firmware  Register reads  Genus
 System frequency  Meter  Meter health/status  GE
 RMS voltage and current settings/configuration  Voltage sags and  Trilliant
 Power Factor  Point to Point swells  Secure
 Instantaneous Apparent and (Cellular/SIM cards)  Temperature sensor  Sensus
Real power  Mesh alerts  Aclara
 Capacitor for events and alerts  Tampering alerts  Bosch
 Network interface cards  Fluent grid
 Gram
power
 EDF
 NEDO
 Synergy SS
 Enzen
Global
 Nsoft India
Service
 Dongfang
Electronics
 Wipro
 ECIL
 Chemtrols
 Schneider
Electric
 Techno
Electric
Source: NSGM

7.2 System Integration Framework
To ensure that the overall metering services are efficient and accurate, all the components must be
integrated so, they work together as one system. The process of system integration involves
integrating AMI, MDMS, CIS and billing systems with each other. Additionally, depending on the
DISCOMs capabilities, OMS, DMS, and other Distribution Automation (DA) systems can be integrated
as well, increasing the benefits of the smart grid technology. Although system integration can involve
many technical challenges, it should be one of the first factors a DISCOM addresses when planning a
smart metre rollout. Typically, services from vendors are procured to assist in this process if it cannot
be handled in-house. Software often requires additional development to allow for the integration of
these systems.
Additional systems that DISCOMs are now starting to integrate web portals, time-based rates,
incentive programs, and customer devices. Information system integration is typically an ongoing
process within DISCOMs; however, when done correctly, it can provide diversity of new functions that
can improve the efficiency of operation. AMI can be used to integrate a wide range of applications.
 Customer Relationship Management (CRM)

 Enterprise Resource Planning (ERP)
 Work Order Management
 Accounting
 Asset management
 Customer service
Putting all of the data collected by the smart devices together and understanding of it is essential for
DISCOMs taking full advantage of AMI. Integrated applications can improve the efficiency, reliability,
and customer service. Smart mater analytics is a fast expanding area in which DISCOMs can collect,
analyse, and evaluate the data in order to make better business approach to increasing revenue. In
developed countries, DISCOMs have attempted for using AMI data to:
 Allow for meter-to-cash applications
 Improve operational efficiency
 Improve outage management
 Enhance situational awareness through advanced data analytics
 Serve as a precursor to distribution automation etc.
7.3 Customer Engagement Strategies and Outreach Mechanisms
While operational and economic benefits can be achieved by DISCOMs that follow best practice, for
customers to share in the gains requires widespread consumer awareness of the technology.
International experience has demonstrated that when DISCOMs do not actively engage with
consumers before installing smart meters, there is frequently widespread pushback. This leads to cost
overruns, delays and general declines in customer satisfaction. For a successful large-scale
implementation, there has to be well planned consumer interaction and so that they conceive it as
positive change and support the rollout. The National Smart Grid Mission has allocated INR 2 million
for each of the 60 state-owned DISCOMs to implement customer engagement programs. Utilities
should take this opportunity to ensure their metering rollouts are inclusive of, and beneficial to, all
customer groups.
Customers’ needs to be educated on the benefits of smart meters and society at large. Consumer
engagement and education program to be conducted well in advance of smart meter installation. To

design an effective consumer education program, it’s important to understand the consumer profile
and consumer touch points.
Table 7-2: Understanding consumer profile
Type of Education Level Income Level Consumption Employment

Usage Level Level
 Residential  Uneducated  Poor Class  Low  Working Class
 Commercial  School/College  Medium Class  Medium  Unemployed
 Industrial going/passed  Upper Class  High  Retired
 Agricultural  Professional
degrees
Consumer Touch Points:
 Customer care centre for new connection, queries and complaints

 Meter reader
 Electricity bills – Printed, SMS, E-mails
 Utility portal, Chatbots, Voicebots, social media
 Community meetings, information booths
 Shopping malls, cinema halls, TV, Radio
Proposed executive plan:
Design of
Customer Post
Pre Customer Media Tools Implementation
Implementation Awareness
Awareness Conceptualisation Customer and
Survey Campaign Survey
Program
Consumer Education and Engagement Tools:

Table 7-3: Consumer education and engagement tools
Printed Ads Educational Face-to-Face Meetings Street Plays Social Media/Web

Videos and Workshops and
Workshops
 Local  Association  Residential Welfare  Schools  Mass-mail
Newspapers Meetings Associations  Colleges  Facebook
 Flyers  Cinema Halls  Market Committees  Shopping  Twitter
 Banners  Cable TV and  Industry Associations Malls  Online public forums
 Posters and Radio  Retired Persons  Rural  Blogs
 Wall Painting  Local Clubs Consumers  Utility website
 Schools  Online discussion groups
 Colleges and YouTube
 Gram Panchayats etc.

Case study TPDDL:
Figure 7-1: TPDDL customer engagement programs
7.4 Risk Mitigation Mechanisms
The AMI rollout process requires an effective system implementation and integration process. This is
due to the complexity of AMI's technology as well as the multiple integration points with other
enterprise IT systems. Risk awareness and preparation are important aspects for DISCOMs throughout
the rollout and operational eco system. This section will focus on two kinds of risks: these are
associated with cyber security, AMI system's implementation and operations.
7.4.1 Cyber Security
As discussed in Chapter 1 AMI technology brings many benefits for DISCOMs, customers and society.
The underlying technology that enables these improvements, however, has significant IT and process
implications for DISCOMs. It can be difficult to overcome the cyber-risk concerns which come with by
using AMI technology to safely enable systems, monitor operations, and respond to threats.
The early adopters of AMI technology did not have access to the technology options available today,
such as standardized interconnection protocols, cellular based connectivity models, and mature
security event monitoring tools. Planning a balanced approach that appropriately matches the
investment in safeguards with the risk profile of the various components of the AMI system can help
maximize the Return on Investment (RoI) for cyber-risk protection. DISCOMs have taken different
approaches to accomplishing this task, often based on financial, business, technology, or schedule
drivers. Once adopted, AMI technology introduces the following risk domains:

Safety
Revenue Customer
Loss Equipment
Security Risks
Data
Privacy/ Service
Delivery
Regulatory
Brand and
Reputation
 Safety: Manipulation/attacks on AMI system can lead to voltage surges that risk the health
and safety of DISCOM personnel and customers.
 Customer equipment: Using AMI solution communication mechanisms to attack customer’s
residential or industrial networks and equipment.
 Service delivery: Attacks on the AMI solution that can potentially subject electricity service
delivery to prolonged, multi-year disruptions.
 Brand and reputation: Attacks against the AMI solution for political purposes, reducing trust
in the DISCOM brand among customers and governmental entities.
 Revenue loss: Attacks with the objective of energy or financial theft.
 Data privacy: Breaches of customer data privacy with brand and potential compliance
impacts.
In order to address these risk categories, protections must be included across the AMI system,
including edge devices, business systems, operational systems, supporting processes, corporate
infrastructure, communication networks, and third-party vendors. A targeted approach to developing
these safeguards can significantly improve the AMI system's security. The technologies and processes
involved in securely enabling AMI are described in the Table below.
Table 7-4: Technologies and process to securely enable AMI
DISCOM Office  Security information and event management logging

 Domain, certificate authority and network segmentation
 Directory service managed system and user accounts
 System hardening guidelines
 Robust vulnerability management
 Incident response playbook
 Threat intelligence integration
 MDAS meter turn off application controls
Cellular  Cellular meter authentication
 Prohibited meter to meter communication
 Non-Routable cellular network
 Cellular event log monitoring
 Integrated key management landscape
RF Mesh and Cellular  Unique meter cryptographic keys
 Over the air firmware support

 Standards based protocols
 Meter integration testing
HAN/Customer Presentment  Latest HAN protocol specifications
 Web application secure development standards
 Customer multi factor based authentication
 Customer password complexity enforcement
 Web integration testing
It can be challenging, however, for a DISCOMs business units to manage and mitigate risks during a
largescale AMI implementation. Risks related to AMI implementation and operations can be broadly
classified as follows:
Technology risk: DISCOMs are exposed to technology risk because they invest heavily in information
technology. DISCOMs can protect their interests by implementing cutting-edge technologies that
meet industry standards and are unlikely to become redundant in the near future. Pilot projects are
useful for validating the cost-benefit analysis and technical feasibility of smart metering technologies.
Integration risk: AMI programs generally enable the integration of numerous vendor solutions.
DISCOMs must evaluate which integration tasks they are able to implement in-house, outsource, the
number of prime contractors and vendors.
Implementation risk: The implementation of an AMI can be more difficult than simply selecting and
implementing new technologies. AMI project, requirement, test, and change management processes
which are well specified can be essential key steps to a successful AMI implementation.
Financial risk: For the AMI implementation initiatives, DISCOMs payable huge capital investments and
pay large upfront expenditures, and there is always the risk of not achieving the program's targeted
financial objectives. It's quite likely that the project's cost and schedule will exceed expectations. Pilot
projects, phasing AMI implementation, using managed services, as well as using incentives can all help
DISCOMs avoid this risk.
7.5 Impact on Customers and DISCOMs
To fully take benefits of introducing AMI, the DISCOM typically orders it from the backend, which
includes setting up an MDMS to accept interval reads and making adjustments to the CIS to account
for new billing characteristics. Some DISCOMs have delayed this change in favour of creating billing
determinants (i.e., customer usage data needed to generate the bill) that approximate regular
monthly consumption reads. The field has the most significant impact on the DISCOM. Models for
deployment have often followed a similar pattern, which includes the following:
 Identification of appropriate meters for residential and commercial customers including field
deployment tests to account for territory issues, number of channels, battery life, registers,
volume of data retained on the meter, and ability to upgrade the meter as needed. Also critical
for deployment issues such as warranty, and support for specific requirements such as HAN,
ZigBee, single phase, three phase, and integration with the selected head end system
 Identification of field area network (typically cellular or mesh)
 Selection of meter installation vendor
 Planning of a zone-based approach for replacing existing meters
 Scheduling of meter deployments
 Meter deployments and shutting down of manual reads for the route, requiring:
o Coordination of field area networks within the deployment area

o Coordination of wide area networks into the area for backhaul
 Data from smart meters may be used to track electricity consumption at the household level
and identify consumers who are accountable for peak demand. This can aid DISCOMs in
planning load curve flattening measures and lowering the cost of additional generation now
necessary to meet peak demand
 Smart meters may be used by DISCOMs to improve service delivery, load control, and facilitate
India's low-carbon transition
7.5.1 Resources and Change Management
The resources of an organization consist of people, materials, equipment, knowledge and time.
Because most organisations have limited resources, every AMI implementation project must make
trade-offs about how and when project resources are used. Similarly, change management is a
framework for addressing the impact of new business processes, organisational structure changes,
and social trends within an organisation. To evaluate the level of impact, AMI implementation starts
with a review of current business processes and stakeholder organisations.
The DISCOMs interviewed for this study found that the implementation of AMI required some
resource realignment and change management on both a technical and organisational level. The effect
area and types of impacts identified with the installation of AMI across the DISCOMs questioned for
this study are included in the table below.
Table 7-5: Resource and change impact of AMI implementation
Department Component Impact
Field Meter  Reduced need for meter readers
Operations/  Retraining requirement as staff transferred from meter reading and field
Meter Reader technical support to network, RF and other technical support roles
 Reduced truck rolls (i.e., travel) to/from reported outages, with impacts
on fleet mileage and maintenance
Field Head-End System  Exponential increase in volume of meter-read information
Operations (HES)  Ability to locate meter when multiple head end systems are in use
Network Field area  Significant implementation staffing needs to cover AMI meter
Operations network (FAN) communications
 Specialist skills needed for RF analysis and troubleshooting
Network Wide area  Increased communications capability for managing backhaul
Operations network (WAN) communications
 Redundant network capability needed to offset potential bandwidth
issues
 Network traffic prioritization needed for shared networks – i.e., outage
management prioritized over other traffic
 Typically, the establishment or reinforcement of a Network Operations
Customer Meter Data  Volume of data increase in the form of more granular interval data
Service Management  Ability to perform VEE (validate, estimate and edit) function to adjust for
System (MDMS) missed reads through interpolation techniques
 Ability to identify potential fraud through use of flags on read
 Potential increase in size of customer service team to handle additional
customer interaction
Customer Consumer  Based upon tariff:
Service Information o Interval billing
System (CIS) o Net billing for solar Photo Voltaic (PV) customers
o Pre-pay
o Enhanced time-of-use (TOU) billing
o Quicker move-in/move-out
o Turn-off/turn-on

Operations Outage  Ability to leverage momentary voltage fluctuations to determine future
Management network issues
System (OMS)/  Ability to detect phase to support corrections to GIS systems
Advanced  Ability to leverage Fault Location, Isolation, and Service Restoration
Distribution (FLISR) and other advanced analytics tools
Management
System (ADMS)
Engineering All  Enhanced ability to perform transformer load analysis and other network
assessments
 Enhancement to new construction planning
IT All  Requirements for new integration between typically segregated systems
(e.g., CIS to GIS)
 Additional field cyber security considerations/implementations
 Typically, the establishment of a Smart Meter Operations Center (SMOC)
 Greater storage requirements to support higher volume of interval reads
Other Utility oversight  Broader efforts may include the state utility commissions and filings by
the individual utility to gain approval of the inherent changes brought
about by the introduction of AMI
Other Customer  Stakeholder education on benefits of smart meter technology, how to
communications read and interpret new and more-detailed information regarding
electrical usage
 Customers occasionally unwilling to accept an AMI meter due to
concerns over privacy or related to radio frequency emissions
 Establishing a specialized communications team during the
implementation project and subsequent adoption period was a
consensus recommendation from the utilities interviewed for this study
7.6 Recommendations
AMI/MDM systems must be integrated with ERP and billing and customer care systems; also, with GIS
and Outage Management Systems (OMS), Mobile Crew Management Systems and SCADA/DMS and
Distribution Automation Systems where every such applications are implemented successfully. The
secure, end-to-end integration of Head-End System (HES) and Meter Data Management System
(MDMS) is critical for successful AMI operations. AMI will not yield true benefits in DISCOM with
home-grown billing systems which cannot be integrated with any standard MDM. Several states
Maharashtra, Gujarat, Tamil Nadu, Kerala, HP, Rajasthan etc. are facing the same challenge. One
DISCOM should have only one billing system and one MDM. There can be many makes of Meters and
Head-Ends. Ideally the data centre may be on any secure public cloud – reduced cyber threat and risk
from obsolescence of hardware and operating systems.
AMI functionalities and technologies have significantly matured and become standardized. Radio
Frequency (RF) mesh and cellular have emerged as the most prevalent meter-level communication
technologies. Most utilities that have implemented large AMI programs have made use of “hybrid”
communications technologies that include both RF mesh and cellular networks. Utilities’ choice of
communications technologies should be based on their specific requirements and the current state of
product evolution and market dynamics. It is very important to test and select the suitable
communication technology for AMI pilot and its rollout. It should not be left on the AMI service
provider who is contractually committed to the SLAs; DISCOMs should specify SLAs and Quality of
Service (QoS) including Security. AMI specifications and design should be aimed at a future state of
operations to maximize benefits over the project lifetime and minimize the risk of obsolescence.

8 08 Advanced Analytics
The use of data driven decision making processes will be strengthened in DISCOMs that will boost
operational efficiency. DISCOMs are data powerhouses generating data on energy use, financial
transactions, and customer initiated interactions (complaints, feedback, etc.). Due to their limited
scope and inflexible modelling capabilities, existing rule based analytics tools, which are commonly
used by utilities, provide limited benefits. Advanced analytics solution in SMOC will help achieve
functionalities of event correlation and Machine Learning. Advanced analytics will support customer
business and grid management in real-time, supported by exponential technologies like AI, edge
computing and 5G. Smart meters continuously measure profile data about consumption, generation,
voltage, current, frequency, events and power quality data (PQD). Overtime a growing AMI data
corpus will be formed to be used to model forecasts and to detect anomalies.
In recent years, utilities have turned their attention to automation and the closely connected
digitalization. As a result, there has been a push to create a digital replica of every business operation,
assuming that efficiency gains are realized. DISCOMs across India are making concerted efforts
towards achievement of these priorities by adopting innovative approaches around data-driven
decision making, which can be supported by the integration of Advanced Analytics Artificial
Intelligence (AI), Machine Learning (ML), and Data Science.
AI and ML are widely recognized as the most significant advancements in terms of simulation of
human intellect through computer programmes or machines. While many business processes have
already been integrated with digital technologies, AI and ML technologies can go much further by
bringing automated decision-making and self-learning capabilities. These technologies have risen to
unparalleled prominence internationally in recent years, while NITI Aayog and other ministries in India
have already adopted several ground breaking initiatives. In the last few years, the Indian electricity
sector has undergone significant transformations, largely targeted at improving the efficiency and
long-term viability of the distribution sector.
The AT&C losses in India is around 16.95 % (As of May 2022) and maximum contribution for
commercial loss is attributed to electricity theft owing to a variety of reasons. Therefore it is required
by the utilities to reduce such theft cases and identify defaulters so, that proper measures can be
taken to ensure all the units supplied to every customers are accurately billed.
Similarly, with penetration of more and more distributed energy resources like rooftop solar PV
(SRTPV), energy storage systems, electric vehicles etc. and introduction of new market instruments
(Real Time Market, Green Day Ahead Market, and Green Term Ahead Market etc.), accurate load
forecasting has assumed highest priority for efficient operation of the distribution grid. Time-stamped
consumption data from smart meters can help forecast feeder-wise demand in different time slots of
the day accurately. Improved load forecasting accuracy will also facilitate the utilities in optimizing
power procurement cost, asset investment, and optimal utilization of distributed energy resources
etc. which will not only help in improvement of operational efficiency but will also help in increasing
the utility’s revenue.

8.1 Benefits of Advance Analytics
8.1.1 For Customers
 Implementation of Time of Use (ToU) tariff

 Energy savings alerts to customers
 Different tariff plans to customers enabling
savings on energy cost
 Excess usage identification
 Direct link to outage information
 Remote turn on/off service
 Identify and rectify phase imbalance in
distribution transformers
 Disaggregation (e.g. behind home energy management systems) to identify faulty technical
equipment or energy wasters
 Load disaggregation to implement EV programs
8.1.2 For Grid Optimization and DER Integration
 Improve grid stability and utilisation

 Optimise operational energy flow with predictive analytics
 Intelligent voltage monitoring
 Active transformer load management
 High impedance detection
 Detect broken neutral or imbalances in loads
 Outage detection
 Cable failure analysis
 Wire down analysis
 Active demand response
 Distributed generation detection
Data Analytics will provides decision support

to optimize operational energy flow with
predictive analytics which will help to balance
supply and demand in real time. The analytics
will provide the control over the following
functionalities using predictive analytics and
by calculate maintenance requirements for
grid components.
8.2 Applications of Data Analytics
Data analytics will help utilities to perform on line energy audit to calculate losses in real time or near
real time. The analytics will also help utilities to extract and use the information embedded in meter
data which can provide information such as:
 Meter data validation

 Tamper and missing information due to communication failure, meter fault etc.
 Energy audit and accounting of DTs

 Peak demand identification
 Consumer profile analysis
 Forecast and build predictive models for demand response program planning
 Consumer abnormal pattern analysis
Following analytics are carried out with meter data as described below:
8.2.1 Data Validation
Data validation identifies parameters that can go wrong at the meter/recorder and cause the data
collected not to reflect actual usage. These rules applied to kWh, kVARh, voltage, current, and PF data.
It evaluates the quality of the data and generates estimate where errors, overlaps, redundancies and
gaps exist. It estimates interval data based on meter readings by filling and correcting the missing gaps
and errors on particular day.
Figure 8-1: Missed read of some of the meters
8.2.2 Tamper and Missing Information
Meter events and usage information can help in understanding an overall picture of what’s happening
with a consumer’s energy usage over time. This unified view enables to detect energy theft, meter
tampering or equipment problems that may be affecting service levels. As availability of supply at
consumer end is very crucial, total power off hours during a day and long outage events cab be
analysed to find out time taken to attend the events or working efficiency of maintenance crew. These
analytics will help utilities to calculate various reliability indices of distribution system such as SAIFI,
and SAIDI etc.
Figure 8-2: Outage duration

8.2.3 Energy Audit and Accounting
The efficiency of a power system is determined by the losses involved in the system. All the technical
losses and commercial losses includes AT&C losses, energy theft etc. which needs to be effectively
reduced. To calculate loss at the feeder level or DT level energy audit analysis at daily, weekly, monthly
can be carried out mentioned in below Figure. To understand the consumption pattern and to analyze
the abnormal consumption of energy by individual consumers various analysis like average percentage
loss, maximum, minimum demand of day in DT can be carried out. These essential details revealed
the nature of load and also helped in forecasting of load.
Figure 8-3: Typical Energy Audit (Intra-Day)
8.2.4 Peak Demand
For electricity grid, the critical requirement is to flatten the load curve by peak clipping and valley
filling through tariff incentive/disincentive or through demand side management. The advantages of
flattening the load curves are cost saving on account of additional infrastructure, energy savings due
to reduce grid losses etc. Aggregate hourly load profiles of any DT reveal load peaks and valleys in a
day. Aggregated meter reading of individual consumer under the same distribution transformer gives
the information of consumer contributing in peak and valley. The minimum, maximum, standard
deviation will help utilities to identify the consumers who are drawing more or less during peak hours.
Figure 8-4: Peak and Off-Peak patterns

8.2.5 Consumer Profile Analytics
Daily energy consumption pattern yields information such as minimum, average and maximum energy
consumption as well as change in daily energy usage. These information will help consumers in better
energy management. A typical consumption pattern of a consumer on a particular day collected
through smart meter is shown in below Figure.
Figure 8-5: Consumer profile on a particular day
Further, weekly and monthly analysis of consumer consumption behavior will help utilities to identify
the consumption pattern in working days and holidays and accordingly plan energy requirement for
working days and holidays.
Figure 8-6: Consumption pattern during weekends
8.2.6 Load Forecasting
Load forecasting is essential for defining the requirements of the distribution network capacity,
scheduling, and approximating AT&C losses, estimating the existing networks capability to transfer
increasing loads and create effective demand response programs. On the basis of previous energy
pattern of usage, newly pattern can be identified.

8.2.7 Abnormal Behavior Identification
By analysing consumption pattern of consumers, utilities are able to distinguish between a normal
daily consumption patterns from an abnormal one. Based on historical data of consumer, the utility
can identify irregular consumption and detect potential issues. Therefore, daily energy consumption
patterns can be an important variable to monitor and trigger consumer action.
Figure 8-7: Consumer profile of particular day
8.3 Select Use Cases of Advanced Analytics with AMI
8.3.1 Electricity Theft Detection using AI Driven Smart Meter Data Analytics
In developing countries, non-technical losses are a significant and growing financial concern for
electricity distribution companies. Workforce intensive inspections and account auditing is expensive,
while enforcement is always challenging. Some utilities rely on smart meter tamper events, which
don’t necessarily reflect theft. Moreover, utilities haven’t been able to completely decode the
correlation between consumption patterns, electrical data and smart meter tamper events. Instead,
advancement in data driven methodologies for electricity theft detection have gained attention from
researchers worldwide. Recorded user electricity consumption data is dependent on multiple factors
such as weather, occupancy, presence of HVAC systems, etc. which entails the need to identify
exclusive patterns of theft.
AI based data analytics for smart meters, a technology can identify appliance signatures from 15/30
minute interval consumption data (kWh) captured and transmitted by smart meter, without using any
other hardware.
Advantages:
The AI based algorithms recognize the consumer behaviour pattern in terms of appliance usage across
different times of the day, and days of the year. It also recognizes the effect of weather conditions –
such as temperature and humidity on consumer behaviour on specific appliance usage. The novelty
of algorithm of energy theft AI framework lies in the fact that:
 Awareness of appliance usage at a given time of day: Advantage of access to appliance

disaggregation information coming out of our patented set of disaggregation algorithms.

 High hit rate: The AI engine processes the electrical data from the meter download and
analyses it in terms of tamper events, voltage and current profiles, phase association etc.
Disaggregation information along with behavior modelling and correlation among energy
consumption, current, voltage and meter events creates a powerful tool for identifying
various kinds of theft with a very high degree of accuracy. The algorithms for theft detection
have been built, customized and fine-tuned on the basis of data from a number of Indian
utilities and lacs of customers over the last 15 months.
 Actionable categories: The AI framework is designed to provide action oriented results to the
utility by: i) Classifying theft into different actionable categories by directionally indicating
towards the reason/type of theft, and ii) Calculating likely the probability of theft and thereby
eliminating a lot of false positive cases. The utility can then prioritize on-ground work to
maximize revenue impact.
 Fast classification: Ability to label homes across actionable categories within seconds while
handling all home data input from smart meters.
 Super scalable: The framework is easily scalable to the entire population and gives output in
the form of an easy to handle tabular format containing theft categories and rankings.
8.3.2 Accurate Demand and RE Forecasting
Renewable energy, including DERs such as rooftop solar, EVs, energy storage and demand response
systems are expected to grow in the coming years. An AI powered smart meter can prove to be the
best solution for effective renewable energy management, as it performs two essential functions:
creation through data analysis and utilisation through optimal demand supply matching. It consists of
two AI applications: energy forecasting and grid balancing. Demand, RE generation, and market price
forecasting’s are all improved by using AI based tools.
Figure 8-8: AI based demand and RE forecasting
8.3.3 Using Machine Learning and Deep Learning for Energy Forecasting
Grid analytics can cover wide varieties of data, for monitoring assets and power system events using
Smart Meter data. For asset management signal processing and AI techniques to monitor asset health

is being used with the development of predictive maintenance and remaining useful life (RUL)
algorithms.
Figure 8-9: Online detection of power system events
Energy price forecasting can be achieved by:

 Use AI to forecast load, generation and prices at multiple nodes
 Integrate forecast models with grid simulation to improve system reliability
8.3.4 Applying Artificial Intelligence for Metering, Billing and Collection
The utilities revenue was hard hit as meter reader were not allowed inside premises for capturing
meter reading and self-billing application had its own challenges in delayed billing and payment.
CLK2PAY innovated during the COVID times is an advanced AI intervention to enable (a) Quickly pull
meter reading on the already clicked images (b) Metering, Billing, Collection (MBC) in less than a
minute. The innovation has been adopted to solve pain areas of utilities, APC used data science
expertise and applied deep learning technology to solve this problem with innovation. CLK2PAY not
only enhanced the efficiency towards the revenue recognition for utilities, but also enabled the
process efficiency. APC team conducted an online survey during COVID time, wherein the inputs on
delay in existing process were encouraging to create CLK2PAY. The solution has two variant i.e. (Phase
I) pulling information from images captured by meter reader or customer through self-billing existing
utility application as photo audit which was earlier a manual or time consuming progress and delay of
4-7 days has been brought down to less than one day (Phase II) provide mobile solution to customer
to capture meter reading in real time and process to billing and payment. This will not only fasten the
revenue recognition process, but also add to the operation efficacy and reduction to the cost in serving
the customer. The normal cost of (a) Meter reading (b) Send of bill (c) Follow up on payment (d)
Defaulter or debtors’ pursuit is INR 15 to 20 per person per month. CLK2PAY, is just enables this is one
fourth of the cost.
Mobile based “apk” uses deep Learning based OCR as AI engine. The deep leaning framework “YOLO”
has been customized along with RCNN/CNN model to get the meter reading.

Figure 8-10: Smart meter dashboard
8.3.5 Cash Flow Improvement and Revenue Recognition Application Platform
Utilities tend to realize only 60-70% of the revenue before or on the due date. With at least 2-5%
consumers being chronic in nature for the remaining consumer’s revenue collection has DSO spread
over a month. Any solution in this regard is a welcomed as the billing collection is always a pain for
utility. Smart meter powered by AI based solution is helping Delhi based utility to predict the customer
payment behaviour and apply the business decision to target the customer in phased manner to get
the revenue earlier.
Figure 8-11: Defaulter prediction AI application in use at utilities of NCR Delhi and Ahmedabad
Also, utility can plan for better mechanism to reduce the burden to decrease the operation cost like
reducing the no of cash collection centre by shifting customer from cash to online mode. Utility also
interested to know the seasonal and event impact to manage the defaulter in a better way. The
solution uses defaulter prediction along with consumption forecasting model and then applying ML
model to cluster into “Critical”, “Severe” and “Mild” category.
Problem areas are defaulter prediction model, seasonal/event analysis and payment mode prediction
model and campaign management solution. Advanced ML model has been applied viz. logistic
regression, Bayesian algorithm, xGboot, and ensemble modelling for defaulter prediction for next
months based on historical data (At least for 12 months data).

Figure 8-12: Smart meter dashboard – Actual and predicted data
Cluster modeling has been applied on top of defaulter model outcome along with consumption data
to get the category of customer as “Critical”, “Severe” and “Mild”.
Campaign solution is applied at two levels:
 Level 1: To target defaulter model outcome to get early revenue using email, SMS and
WhatsApp campaign along with IVR. For defaulter field can connect with customer based on
amount and history of the customer directly
 Level 2: To target “Critical”, “Severe” and “Mild” customer using email, SMS, WhatsApp
campaign along with IVR
Below data points have been used in the technology:

 Payment data
 Subsidy data
 Consumption data
 MRD files
 Campaign data
Figure 8-13: Consumption of customer payments
8.3.6 Outage Management Digitalization
At the utility TPDDL had identified few basic problems need resolution:
 What will be demand of electricity at different hours of the day
 What will be the load growth at the distribution transformer and feeder level

 Identify which consumer is likely to default this month
 How many customers will come to the customer care today
 How many customers may call at the call centre at certain hour
 Which 11 kV feeder is likely to trip this month
 Which employee may resign
 Can we project cash flow on different days to handle operating cash flow better
 Can we reduce or optimize the cost of inventory
TPDDL could create models for all the above and with acceptable level of accuracy, sensitivity. TPDDL
are working on increasing the sensitivity of prediction of customer theft model which is highly skewed
data by nature. The business needed the next level i.e. what to do with these predictions, what action
to be taken. Using smart power powered by advanced analytics are the best possible solution for
addressing the above mentioned issues. Like segregation of customers for different type of follow up
actions to get the payment. Creation of service order depending upon the load growth or feeder
tripping likelihood. Optimizing cash collection agent or call centre agent and in which way.
TPDDL has reached very high level of accuracy for load matching, inventory optimization, commercial
meter forecast, cash flow prediction as well as defaulter’s predictions.
Figure 8-14: Outage management digitalisation

Appendix I Smart Metering Implementation
Status in India
Table 0-1: Smart metering implementation status in India
Sl No State Utility Sanctioned Business Scheme Installed

Smart Meters Model Smart
Meters (As
of May
2022)
1 Andaman EDANI 64,102 Opex IPDS 36,800
2 39,200 DDUGJY 38,400
3 Assam APDCL 70,000 Capex Utility Owned 70,000
4 1,34,000 Capex Utility Owned 1,20,427
5 1,34,000 Capex Utility Owned 69,038
6 3,63,500 Opex/Hybrid Utility Owned 0
7 2,56,600 Opex/Hybrid Utility Owned 0
8 14,259 Capex SG Pilot 14,259
9 Andhra APEPDCL 2,000 Capex Utility Owned 2,000
Pradesh
10 Bihar NBPDCL 10,30,000 Opex Utility Owned 3,31,920
12 SBPDCL 13,20,000 Opex Utility Owned 451079
14 40,500 Opex Utility Owned 30,500
15 IPCL 17,100 Capex Utility Owned 17,100
16 BEDCPL 1,000 Capex Utility Owned 1,000
17 Chandigarh CED 29,433 Capex NSGM 24,149
18 1,84,000 Capex NSGM 0
19 Delhi NDMC 64,713 Opex Utility Owned 63,692
20 TPDDL 1,95,000 Capex Utility Owned 1,95,000
21 Gujarat UGVCL 23,760 Capex SG Pilot 23,760
22 Haryana UHBVN 10,188 Capex SG Pilot 10,188
23 5,00,000 Opex Utility Owned 2,51,244
24 DHBVN 5,00,000 Opex Utility Owned 1,81,061
25 POWERGRID 10 Capex SG Pilot 10
26 Himachal HPSEB 1,335 Capex SG Pilot 1,335
27 Pradesh 75,712 Capex IPDS 75,712
28 76,028 Capex Utility Owned 60,168
29 Jammu and JKPDD 1,15,500 Capex PMDP 76,050
Kashmir
30 Jharkhand JBVNL 3,60,000 Capex NSGM 0
31 Karnataka CESCOM 20,916 Capex SG Pilot 20,916
32 Kerala Cochin Port 805 Capex IPDS 805
33 Madhya MP-West 3,45,463 Capex+Opex IPDS 1,24,477
34 Pradesh 4,537 Capex+Opex Utility Owned 0
35 1,18,836 Capex IPDS 1,18,836
36 Odisha OPTCL 4,000 BOOT Utility Owned 4,000
37 Paradip Port 500 Capex Utility Owned 500
38 Puducherry PED 28,910 Capex SG Pilot 28,910

40 Punjab PSPCL 88,100 Capex IPDS 88,107
41 7,900 Capex Utility Owned 0
42 Rajasthan JaVVNL 2,81,782 Capex IPDS 2,40,820
43 18 Capex Utility Owned 0
44 1,50,000 Hybrid NSGM 1,14,608
46 AVVNL 1,88,860 Opex IPDS 68,673
47 1,962 Opex Utility Owned 0
49 JdVVNL 97,158 Opex IPDS 56,027
50 JdVVNL 5,024 Opex Utility Owned 5,024
51 Tamil Nadu TANGEDCO 1,41,000 Capex Utility Owned 1,17,527
52 Tripura TSECL 43,081 Capex SG Pilot 43,081
53 Telangana TSSPDCL 8,882 Capex SG Pilot 8,882
54 Uttar Pradesh IITK 28 Capex SG Pilot 28
55 MVVNL 9,05,769 Opex Utility Owned 3,78,862
56 PVVNL 11,64,138 Opex Utility Owned 1,98,726
57 DVVNL 6,28,686 Opex Utility Owned 1,47,991
58 PuVVNL 11,47,102 Opex Utility Owned 3,21,433
59 KESCO 1,56,532 Opex Utility Owned 1,07,318
60 West Bengal WBSEDCL 5,164 Capex SG Pilot 5,164
61 CESC 10,000 Capex Utility Owned 10,000
62 Total 1,12,49,751 Total 44,23,867

Appendix II Framework for Smart Meter
Rollout Based on Leasing and Services
Model
In April 2016, ISGF released a Paper on ‘AMI Rollout Strategy for India’ that described a framework
based on a ‘Leasing and Services’ model. The premise of this Paper was built on the present situation
of electricity distribution companies in India wherein they neither have technical capability to buy the
best technology and maintain it in-house nor have the finances for upfront capital investment for AMI
deployment.
As per this model, manufacturers with BIS certified smart meters may be empanelled with rates of
meter and different communication devices which the DISCOMs can choose based on their unique
requirement. The cost of the smart meters and cost of the communication devices/Network Interface
Cards (NIC) to be specified separately. A financial intermediary such as a bank or any other financial
institution will procure the smart meters and lease them to the utility against a monthly rent for a
period of ten years. Since AMI involves expertise in three distinct domains, namely, metering,
telecommunication and information technology (including both software and hardware), and
experience from around the world shows that no one agency could master these distinct components
of AMI, it is proposed to appoint a Metering Services Agency (MSA) who will be responsible (along
with their sub-contractors and associates) for a variety of functions related to implementation of AMI
and its maintenance. Typical scope of services of a MSA would include:
i. Testing and certification of the meter and communication devices to be procured by the
DISCOM for the defined scope of AMI in a given area/town with chosen communication
technology/technologies
ii. Taking delivery of meters and communication devices from the DISCOM and installing them
at customer premise; and return of old meter to the DISCOM
iii. Establishing and maintaining the last mile communication connectivity for smart meters for a
period of at least 10 years
iv. Selecting the appropriate communication technology for providing a Wide Area Network
(WAN)/backhaul network
v. Leasing of bandwidth (wherever required) and maintaining for 10 years
vi. Sizing of software and hardware of HES, MDMS and associated IT systems, and providing O&M
services for at least 10 years. The MDMS, HES and associated IT systems to be housed at
DISCOM premises or hosted in a sovereign public cloud
vii. Integrating, testing and commissioning of the entire AMI system
viii. Creation of middleware (if required) and integration of MDMS with middleware
ix. Integration of MDMS with other systems such as billing, collection,
connection/disconnection, OMS etc.
x. Ensuring availability of complete AMI system at mutually agreed Service Level Agreements
(SLAs)

From our analysis, the rate worked out to approximately US $1/month per meter for ten years (INR
70/month/meter) wherein no capex is required by the DISCOM.
This scenario is depicted in below Figure.
Figure 0-1: AMI rollout framework based on ‘Leasing and Services’ model

Appendix III Smart Mater Installations and
Projected Developments by Investor-
Owned Electric Utilities in USA
Table 0-1: Smart meter installations and projected deployments by investor-owned electric companies
Electric State Meters Projected Projected Notes

Company Installed Meters Meters
(2018) Installed Installed
(2019) (2020)
Alliant IA 670,000 972,000 972,000 Alliant Energy Corporation is
WI comprised of two subsidiaries,
Wisconsin Power and Light (WPL)
and Interstate Power and Light (IPL).
The WPL smart meter
implementation was completed in
December of 2011, now totalling
476,000 meters. In Fall of 2017, IPL
began deploying smart meters in
Iowa, with anticipated full
deployment of 497,000 meters by
the end of 2019.
Ameren Illinois IL 1,070,000 1,246,000 1,246,000 Ameren Illinois is expected to fully
deploy 1,246,000 smart meters by
the end of 2019.
American IN 2,543,000 3,138,000 3,334,000 AEP Indiana Michigan Power has
Electric Power MI deployed 15,000 meters; AEP Ohio
OH has deployed 675,000 and will
OK complete its Phase 2 deployment of
TX 1,046,000 smart meters by Q1 2020,
VA with approval for phase 3
WV (approximately 500,000 meters)
pending; AEP Texas reached full
deployment of 1,082,000 meters;
AEP Public Service Company of
Oklahoma reached full deployment
of 578,000 meters; and AEP
Appalachian Power deployed
190,000 smart meters in Virginia
through 2018 and expects to deploy
roughly 400,000 more throughout
Virginia and West Virginia by the
end of 2020.
Arizona Public AZ 1,251,000 1,251,000 1,251,000 APS achieved full deployment of
Service smart meters in March 2016.
Avista WA 17,000 120,000 256,000 Avista installed 17,000 smart meters
Corporation as part of a Smart Grid
Demonstration Grant project and
Phase 1 of AMI deployment. Avista
anticipates a full rollout of 256,000

smart meters in Washington by the
end of 2020.
Baltimore Gas MD 1,290,000 1,309,000 1,328,000 BG&E, a subsidiary of Exelon
& Electric Corporation, has fully deployed
1,290,000 smart meters, with
anticipated growth through new
customer enrolments.
Black Hills CO 212,000 212,000 212,000 Black Hills Energy has fully installed
Corporation MT 212,000 smart meters in its service
SD territory across four states.
WY
CenterPoint IN 2,493,000 2,646,000 2,646,000 CenterPoint Energy received
Energy TX approval in 2008 to install an
advanced metering system across
its Texas service territory. It
completed deployment in July 2012
and currently has 2,493,000 smart
meters installed in the greater
Houston area. Vectren, recently
acquired by CenterPoint, expects to
fully deploy 153,000 smart meters
by the end of 2019 in Indiana.
Central Maine ME 632,000 632,000 632,000 Central Maine Power, a subsidiary
Power of AVANGRID, completed its smart
meter deployment in 2012 and
currently has 632,000 smart meters
installed.
Cleco LA 287,000 287,000 287,000 Cleco fully deployed 287,000 smart
meters across the company's entire
service territory after receiving
approval from the Louisiana Public
Service Commission in 2011.
Commonwealth IL 4,131,000 4,131,000 4,131,000 In June 2013, ComEd, a subsidiary of
Edison Exelon Corporation, received
regulatory approval for full
deployment of 4,131,000 smart
meters, which was completed in
2018.
ConEdison NY 796,000 2,276,000 4,113,000 ConEdison deployed 796,000 smart
meters through 2018 and is
projected to deploy 4,113,000 by
year-end 2020. As of December
2019, ConEdison has deployed
2,276,000 smart meters.
Consumers MI 1,831,000 1,831,000 1,831,000 Consumers Energy, a subsidiary of
Energy CMS Energy, achieved full
deployment in 2017. Through 2019,
new customer enrollments have led
to a total of 1,831,000 smart meters
deployed.
Dominion NC 453,000 526,000 996,000 Dominion Virginia has completed
Energy SC installation of 475,000 smart meters
VA through 2019 and plans to have
more than 1 million deployed by the
end of 2021. Dominion South
Carolina expects 27,000 smart
meters deployed by the end of 2019
and 465,000 by the end of 2021.
Dominion North Carolina is
currently in early stage AMI
deployment.
DTE Energy MI 2,533,000 2,533,000 2,533,000 DTE Energy achieved full
deployment in 2016 and currently
has2,533,000 smart meters.
Duke Energy FL 3,865,000 6,207,000 7,521,000 Through the end of 2019, Duke
IN has deployed 705,000 smart
KY meters in Florida; 147,000 in
NC Kentucky; 2,974,000 in North
OH Carolina; 741,000 in Ohio;
SC 783,000 in South Carolina; and
857,000 in Indiana. As of end of
2019, deployments are complete
in Kentucky, Indiana, Ohio, and
South Carolina. More than 7.5
million smart meters are
projected to be deployed by 2020;
Duke is projected to reach full
deployment by 2021 with nearly 8
million customers.
Duquesne Light PA 600,000 600,000 600,000 Duquesne Light has fully deployed
Company 600,000 smart meters.
Emera Maine ME 122,000 122,000 122,000 Emera Maine has fully deployed
122,000 smart meters in its
service territory.
Entergy AR LA 21,000 1,065,000 2,244,000 In 2019, Entergy deployed
Corporation MSTX 1,065,000 smart meters of an
enterprise-wide deployment for
2,943,000 smart meters by
December 2021. Entergy has
deployed 247,000 in Arkansas;
328,000 in Louisiana; 183,000 in
Mississippi; 108,000 smart meters
in New Orleans; and 199,000 in
Texas.
Evergy KS 1,526,000 1,559,000 1,568,000 Evergy expects 1,559,000 smart
MO meters (610,000 in Kansas and
948,000 in Missouri) deployed by
the end of 2019.
FirstEnergy NYOH 1,973,000 2,100,000 2,100,000 Through end of 2019, FirstEnergy
Corporation PA subsidiary Penn Power has fully
deployed 169,000 smart meters;
West Penn Power has deployed
729,000; MetEd has deployed
575,000; and Penelec has deployed
593,000. FirstEnergy operating
company The Illuminating
Company in Cleveland installed
34,000 meters as part of a pilot.
Green VT 268,000 268,000 270,000 Green Mountain Power has

Mountain deployed 268,000 smart meters
Power to customers across Vermont.
Hawaiian HI 5,000 28,000 50,000 Hawaiian Electric installed 5,000
Electric smart meters during the first phase
Industries of its smart grid program. The
company filed a grid
modernization plan with its state
regulatory commission and will
make targeted smart meter
investments through 2020.
Idaho Power ID 546,000 546,000 546,000 Idaho Power has fully deployed
OR 546,000 smart meters across its
service territories in Idaho and
Oregon.
Indianapolis IN 147,000 185,000 295,000 IPL, a subsidiary of AES
Power & Light Corporation, has installed 147,000
smart meters and is strategically
deploying smart meters where
needed. IPL has a pending
application for full deployment of
smart meters by2022.
MGE Energy WI 9,000 9,000 9,000 MGE Energy has deployed 9,000
smart meters.
Minnesota MN 79,000 93,000 109,000 Minnesota Power, a subsidiary of
Power ALLETE, deployed 93,000 smart
meters by year-end 2019 in north-
east Minnesota and expects to
complete full deployment by the
end of 2020.
National Grid MA 19,000 30,000 30,000 National Grid is piloting 30,000
NY smart meters in Massachusetts and
RI New York, and actively working on
rate cases to fully install smart
meters in New York and Rhode
Island.
NextEra Energy FL 5,517,000 5,517,000 5,536,000 FPL has fully deployed 5,054,000
smart meters to residential, com
mercial, and industrial customers.
Gulf Power reached full deployment
In 2012 and has 463,000 meters.
NV Energy NV 1,310,000 1,310,000 1,310,000 NV Energy, a subsidiary of Berkshire
Hathaway Energy, has fully
deployed 1,310,000 smart meters.
OGE Energy AROK 879,000 879,000 879,000 OG&E has fully installed 879,000
Corporation meters: 809,000 in Oklahoma and
70,000 in Arkansas.
Oncor TX 3,611,000 3,611,000 3,611,000 Oncor has fully deployed
3,611,000 smart meters across its
service territory.
Orange and NJ 217,000 382,000 446,000 Orange and Rockland Utilities, a
Rockland NY subsidiary of ConEdison, has
Utilities installed 217,000 smart meters
through end of 2018 and plans to
achieve full deployment of
446,000 by 2020.
Pacific Power CAOR 517,000 655,000 655,000 Pacific Power, a subsidiary of
Berkshire Hathaway Energy,
expects full deployment of smart
meters across service territories by
year-end 2019 in California (47,000)
and Oregon (608,000).
PECO PA 1,675,000 1,675,000 1,675,000 PECO, a subsidiary of Exelon
Corporation, has fully deployed
1,675,000 smart meters.
Pepco Holdings DC DE 1,340,000 1,340,000 1,340,000 Pepco, a subsidiary of Exelon
MD Corporation, has reached full
deployment in the District of
Columbia with 278,000 smart
meters installed. Pepco and
Delmarva Power in Maryland have
reached full deployment, with
555,000 and 213,000 smart meters,
installed respectively. In Delaware,
Delamarva Power has reached full
deployment with 293,000 meters
installed.
PG&E CA 5,323,000 5,323,000 5,323,000 PG&E has fully deployed 5,323,000
smart meters across its service
Corporation territory.
Portland OR 888,000 888,000 888,000 PGE’s smart meter program was
General Electric approved by the state regulatory
commission in 2008; full
deployment was completed by
the
fall of 2010.
PPL KY 1,450,000 1,450,000 1,450,000 PPL is in compliance with PA Act
PA 129 and has fully deployed
Corporation 1,441,000 smart meters in its
Pennsylvania service territory. Pilot
programs in Kentucky have
deployed 9,000 smart meters.
Public Service NJ 144,000 513,000 882,000 In 2018, PSE&G filed a proposal
Enterprise NY with the New Jersey Board of
Group Public Utilities to deploy 2.2
million smart meters by 2024.
PGE&G's NY service territory has a
pilot program with 129,000smart
meters deployed.
Puget Sound WA 190,000 374,000 564,000 Puget Sound Energy plans to
Energy deploy smart meters to all electric
customers by the end of2023.
San Diego Gas CA 1,449,000 1,449,000 1,449,000 SDG&E has fully deployed
& Electric 1,449,000 meters across its service
Company territory.
Southern CA 5,139,000 5,139,000 5,139,000 SCE has fully deployed more than
California 5 million smart meters and will
Edison continue to accommodate
population growth.
Southern AL GA 3,951,000 3,951,000 3,951,000 Southern Company's Georgia
Company MS Power and Alabama Power are fully
deployed. Georgia Power reached
full deployment in 2012 and has
2,498,000 meters. Alabama Power
reached full deployment in 2010
and has 1,453,000 meters.
Mississippi Power received
approval to deploy 200,000 smart
meters in late 2018.
Tampa Electric FL 75,000 145,000 300,000 TECO (an Emera company) has
installed 75,000 smart meters
through 2018 with plans to
complete deployment of 750,000
meters in early 2022.
Texas-New TX 247,000 247,000 247,000 TNMP, a subsidiary of PNM
Mexico Power Resources, has fully deployed
247,000 smart meters.
United CT 237,000 294,000 350,000 United Illuminating, a subsidiary of
Illuminating AVANGRID, has installed 237,000 of
its projected 350,000smart meters
by the end of 2020.
Unitil MA 108,000 108,000 108,000 Unitil has fully deployed 108,000
Corporation NH smart meters across its service
territory around Concord, NH, and
Fitchburg, MA.
WEC Energy WI 662,000 946,000 1,145,000 WE Energies has deployed662,000
Group smart meters to customers in
Wisconsin.
Xcel Energy CO 13,000 32,000 40,000 Full deployment of smart meters in
MN Colorado for 1.5 million customers
will not begin until 2020 and will
conclude in 2024. Xcel has publicly
filed for full deployment of smart
meters in Minnesota by 2024.
Other 13,000 11,000 11,000 Limited deployments by multiple
operating companies account for
roughly 13,000 smart meters
deployed through 2018.
U.S. Total 64,344,000 72,161,000 78,531,000

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Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses Page | 0

Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses i

Message from MD BESCOM

Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses i

The Capital Court (4th Floor), Munirka

Dr. Anshu Bharadwaj

Metering is a key component of several government programmes in distribution companies

Dr. Anshu Bharadwaj

Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses ii

Reji Kumar Pillai

Reji Kumar Pillai

Acknowledgments We would like to thank Mr. G. Kumar Naik,

Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses iv

“For private circulation only”

v Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses

Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses 1

2 Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses

Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses 3

4 Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses

Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses 5

6 Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses

AMI Advanced Metering Infrastructure

AMR Automatic Meter Reading

AMRUT Atal Mission for Rejuvenation and Urban Transformation

AT&C Aggregate Technical & Commercial

BESCOM Bangalore Electricity Supply Company Limited

BIS Bureau of Indian Standards

CEA Central Electricity Authority

CIS Customer Information System

DAS Distribution Automation System

DBFOT Design Build Finance Operate and Transfer

DCU Data Concentrator Unit

DISCOM Distribution Company

DMS Distribution Management System

EAI Enterprise Application Integration

EESL Energy Efficiency Services Limited

ETD Electro Technical Division

FAN Field Area Network

GIS Geographical Information System

GoI Government of India

GoK Government of Karnataka

GVP Gram Vidyuth Prathinidhi

HAN Home Area Network

HES Head End System

IPDS Integrated Power Development Scheme

ISGF India Smart Grid Forum

LAN Local Area Network

MDAS Meter Data Acquisition System

MDMS Meter Data Management System

Enable an Electric Utility to Leverage AMI Rollout to Reduce AT&C Losses 7

NAN Neighbourhood Area Network

NIC Network Interface Card

NIIF National Investment and Infrastructure Fund

NSGM National Smart Grid Mission

NTP National Tariff Policy

OMS Outage Management System

RDSS Revamped Distribution Sector Scheme

RPO Recovery Point Objective

RTO Recovery Time Objective