• What is AMI?
• Building blocks of AMI
• Benefits of AMI
• Legacy system Vs AMI System
• AMI in the Indian context
• Costs associated with AMI
• Cost estimation
The present system of energy metering as well as billing in
India uses electromechanical and somewhere digital energy meter.
It consumes more time and labour. One of the prime reasons is the
traditional billing system which is very inaccurate, slow, costly, and
lack in flexibility as well as reliability.
Today accuracy in electricity billing is highly recommended.
The ‘Smart energy meter’ gives real power consumption as well as
accurate billing. It provides real time monitoring of utility of
4. What is AMI?
AMI(Advanced Metering Infrastructure) is the
collective term to describe the whole infrastructure from
smart meter to two-way communication network to
control center equipment and all the applications that
enable the gathering and transfer of energy usage
information in near real-time.
AMI makes a two-way communications with
customers possible and is the backbone of smart grid.
6. Building blocks of AMI
AMI is comprised of various hardware and software components, all
of which play a role in measuring energy consumption and transmitting
information about energy, water and gas usage to utility companies and
customers. The technological components include:
1. Smart meters
2. Wide-area communications infrastructure
3. Home(local) area networks(HAN’s)
4. Meter Data Management Systems(MDMS)
5. Operational gateways
7. Smart meters
Smart meters have the
capacity to collect information
about energy, water, and gas
usage at various intervals and
transmitting the data through
fixed communication networks
to utility, as well as receiving
information like pricing signals
from utility and conveying it to
10. Meter Data
A MDMS is a database
with analytical tools that enable
interaction with other
One of the functions of MDMS is
to perform validation, editing
and estimation on the AMI data
to ensure that despite
disruptions in the
communications network or at
customer premises, the data
flowing to the systems described
above is complete and accurate.
11. Operational Gateways
AMI interfaces with many system-side applications to
• Advanced Distribution Operations (ADO)
• Advanced Transmission Operations (ATO)
• Advanced Asset Management (AAM)
12. Advanced Distribution Operations
• Distribution Management system with advanced sensors
• Advanced Outage Management
• Distribution automation
• Distribution Geographic Information system
• Application of AMI communications infrastructure for:
o Micro grid operations(AC and DC)
o Hi-speed information processing
o Advanced protection and control
o Advanced grid components for distribution
13. Advanced Transmission Operations
• Substation automation
• Hi-speed information processing
• Advanced protection and control
• Modeling, simulation and visualization tools
• Advanced regional operational applications
• Electricity Markets
14. Advanced Asset Management
• System operating information
• Asset “health” information
• Operations to optimize asset utilization
• Training and development planning
• Condition based maintenance
• Engineering design and construction
• Consumer service
• Work and resource management
• Modelling and simulation
Despite its widespread benefits, deploying AMI presents three major
challenges that include
1. 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
2. Integration: AMI is a complex system of technologies that must be integrated
with utilities, information technology systems including Customer
Information Systems (CIS), Geographical Information Systems (GIS), etc.
3. Standardization: Interoperability standards need to be defined, which set
uniform requirements for AMI technology, deployment and general
operations and are the keys to successfully connecting and maintaining an
AMI based grid system.
16. Benefits of AMI
The benefits of AMI are generally categorized as:
• Operational benefits: AMI benefits the entire grid by improving the
accuracy of meter reads, energy theft detection and response to power
outages, while eliminating the need for on-site meter reading.
• Financial benefits: AMI brings financial gains to utility, water and gas
companies by reducing equipment and maintenance costs, enabling faster
restoration of electric service during outages and streamlining the billing
• Customer benefits: AMI benefits electric customers by detecting meter
failures early, accommodating faster service restoration, and improving
the accuracy and flexibility of billing. Further, AMI allows for time-based
rate options that can help customers save money and manage their
18. Legacy system Vs AMI system
• Smart metering uses the upgraded technology for automatic,
accurate reading of energy usage.
• Once a smart meter is installed, there is no longer a need for a
representative from the energy company to come out to take a
reading. The unit uses mobile communications technology to
instantly and accurately provide energy usage directly to the
utility. This automatic process eliminates human error and
provides complete and total accuracy.
• Energy usage information is captured on a regular basis,
approximately every 30 minutes for electricity usage and once a
day for gas usage.
20. AMI in the Indian context
Modernizing India's grid system by investing in AMI promises to
mitigate a number of strains placed on the grid due to growing demand.
In particular, AMI will improve three key features of India's grid system
• System Reliability: AMI technology improves the distribution and overall
reliability of electricity by enabling electricity distributors to identify and
automatically respond to electric demand, which in turn minimizes power
• Energy Costs: Increased reliability and functionality and reduced power
outages and streamlined billing operations will dramatically cut costs
associated with providing and maintaining the grid, thereby significantly
lowering electricity rates.
• Electricity Theft: Power theft is a common problem in India. AMI systems
that track energy usage will help monitor power almost in real time thus
leading to increased system transparency.
21. Costs associated with AMI
Costs associated with the deployment of AMI arise from three
• Smart devices at user points.
• Communication network.
• Data collection, analysis, storage and system management.
23. Cost Estimation
S.No. Item Unit cost
1 Capital cost per meter 1250 1 Million
2 Communication Module 1000 1 Million
3 DCU 50000 5000
4 Meter Box & Installation Charges 1000 1 Million
5 DCU & COMMS Installation, Testing and
6 Computer hardware and software and
50000000 Lump sum
7 Head End and Operating System Software
40000000 Lump sum
8 System Integration 50000000 Lump sum
9 Misc 10000000 Lump sum
Advanced Metering Infrastructure allows the operators and utility
companies to have firsthand information on the status of their network
for planning and performance optimization purposes. It also offers
higher power quality and stability.
Advanced Metering Infrastructure is a relatively new concept which
needs improvement in the areas of communication, data analysis and
control schemes. However, taking into the account the global energy
market’s situation and environmental concerns that motivates
governments, companies and consumers to fuel AMI research and
utilization, the prospect of AMI looks promising.
• “Assessment of Demand Response and Advanced Metering” (FERC Report
• “Benefits of Demand response in Utility Markets and Recommendations
for Achieving Them” (DOE Report 2006).
• “Advanced Metering Infrastructure – MGI View” (NETL PowerPoint
Presentation July 2007 at Public Utilities Commission of Ohio – Technical
• Luth, John F. “10 Years of Results: AmerenUE’s AMR Business Case Evolves
to Support AMI.” Utility Automation and Engineering T&D (April 2006)