Extending returns on smart meter investment
Extending returns on smart meter investment
Advanced metering infrastructure (AMI) projects are driven by business use cases, and utilities over the years have acted on many of these while discarding others. As the next generation of AMI emerges, some of those unrealized use cases need to be evaluated again, because energy transition, changing technology, and increasing consumer expectations mean there is now potential that did not previously exist.
Deriving the most value requires understanding the current technology landscape and the level of sophistication in deployed AMI 1.0 technology. Creating additional value depends on the capabilities of those meters.
Some AMI 1.0 meters have advanced features which support a broader range of use cases, even with some inherent limitations and less data than newer units. Other utilities have AMI 1.5 or 2.0 systems that generate more information and support more high-value use cases.
In either case, the goal should be to leverage upgrade capabilities and as much data as possible to support AMI investments. Data can impact new areas of the organization, including operations, asset management, vegetation management, greater reliability and safety, customer experience, customer service, and billing. For some utilities, this will mean reevaluating internal operating units to ensure more cross-collaboration across all internal teams.
New opportunities
AMI also has the potential to support bigger opportunities, such as creating new rate structures for programs like preferred times for charging electric vehicles. Careful evaluation of the upgrade capabilities of existing AMI meters will drive the potential ability to create a path forward and expand use-case value with technology upgrades to existing smart meters.
The data produced by the new meters hold the potential to solve distribution system issues caused by more climate-friendly initiatives. For example, rooftop solar panels generate clean energy, but can create power quality issues with the grid. Measuring and detecting potential issues and addressing them proactively is important to ensure the reliability and stability of the grid as more renewable sources are added.
A new customer experience
This kind of change will take time. Most utilities are built on a retail business model that has not changed in more than 100 years. Utilities have traditionally offered few services, and technologies are being introduced into the market and adopted by customers without the involvement of their utilities.
That means utilities need to change to stay relevant. For example, if community-based microgrids can generate power and provide essential energy services on their own, the role of a utility is diminished. In another example, EV owners do not have to inform the utility company of their new car purchase, making infrastructure planning and upgrades more complex. This means utilities need to change business models and engage in a meaningful way with customers.
Finding more value
These are interesting conversations for utilities and they need to determine how they develop programs, services, and operating procedures with more of a customer mindset. Capgemini is already discussing potential programs with clients, such as remote disconnection capabilities, EV charging/discharging management, and the overarching customer journey. Connecting and disconnecting a customer’s power is a significant cost, even considering only the truck roll and the work of qualified technicians. The next generation of meters means utilities could disconnect or reconnect with a click of a mouse, with the right procedures and governance in place. That is direct savings back to the consumer, an improved customer experience, because it can all be completed over the phone, and an opportunity to minimize safety concerns by requiring fewer vehicles on the road.
Utilities could also be more quickly alerted if there is a power quality issue. For example, tree branches interfering with lines would be evident in certain data patterns, and could trigger a vegetation management crew to visit the area. This kind of proactive maintenance could prevent future outages, boost grid reliability, and lead to a more positive customer experience.
Expanding opportunities
Each generation of AMI will bring new benefits, and utilities will find ways to use data to be successful. But business silos will need to be dismantled to achieve the biggest gains. Operations have not really been involved in the first generation of AMI projects, and utilities need to extend conversations into different parts of the organization to realize additional value.
There is also an opportunity for third parties not affiliated with a utility to provide valuable offerings to customers by utilizing AMI data. For example, while the meter is recording data, the utility is facilitating the sharing of this information to create a new layer of personalized services and business opportunities.
Capgemini offers clients AMI expertise, an extensive use-case library, and a holistic modernization approach to craft a roadmap that finds new opportunities and enhances ROI. Get in touch to learn more about how Capgemini can help you realize your AMI ambitions.