India’s Smart Electricity Future

Context: 

• More than 5.5 million smart metres have been installed in India, and over 100 million sanctioned. 
• The target is to replace 250 million conventional electric metres with prepaid smart metres by 2025­-26.

Image Credits: The Hindu

About Smart Meter National Programme (SMNP):

• Aim: To replace 25 crore conventional metres with smart metres in India. 
• Smart metres are connected through a web-based monitoring system which will help to reduce commercial losses of utilities, enhance revenues and serve as an important tool in power sector reforms.
• Nodal Agency: Energy Efficiency Services Limited, Ministry of Power.
• Implementation: It is being implemented under the BOOT model on cost plus approach, which means all Capex/Opex is done by EESL and the states/ utilities are not required to invest upfront

What is a smart Metre?

• A smart metre is an electronic device that records information such as consumption of electric energy, voltage levels, current, and power factor. 
• Smart metres communicate the information to the consumer for greater clarity of consumption behaviour, and electricity suppliers for system monitoring and customer billing.
• Benefits: Smart metres help discoms:
  • reduce AT&C losses,
  • improve their financial health,
  • incentivise energy conservation, 
  • enhance ease of bill payments and 
  • ensure billing accuracy by getting rid of manual errors in metre reading. 
  • enhances consumer satisfaction through better complaint management
  • enable Consumers to get the ability to track their usage and pay their bills easily through mobile phones. 

Roadblocks in implementation 

• Improper access and usage: Half the users were not using the smart meter mobile app, and many were unable to access detailed electricity bills, leaving them doubtful about their bill computation and deductions. 
• Data privacy: Smart meter data can reveal sensitive information that can be analyzed from electricity usage patterns.
• Network costs: The government has not yet clarified on the network costs, who will bear it, and the impact it will have on the electricity bills of the poor.

Way Forward: 

• Awareness & accessibility:
  • The Ministry of Power should drive a nationwide campaign to educate consumers about smart metre benefits and improve the uptake of smart metre apps. 
  • The apps should be accessible to users from diverse socio­economic backgrounds and provide actionable tips and information.

• Role of DISCOMs: 
  • Discoms must closely work with Advanced Metering Infrastructure Service Providers (AMISPs) to ensure a smooth installation and recharge experience for users, to leverage smart meter data for revenue protection and consumer engagement.
  • Discoms will need to strengthen their internal capacity through suitable staffing and training interventions. 

• Collaboration and innovation: 
  • Discoms, system integrators and technology providers should collaborate to devise innovative and scalable data solutions.
  • This would require an ecosystem that fosters innovation in analytics, data hosting and sharing platforms, and enables key actors to collaboratively test and scale new solutions.

• Regulatory Changes: 
  • Policymakers and regulators must strengthen regulations to empower consumers to unlock new retail markets.
  • Provisions concerning phase­out of paper bills, arrear adjustment, frequency of recharge alerts, buffer time, rebates, and data privacy should be incorporated within existing State frameworks.
  • Regulators must also enable simplification and innovation in tariff design and open the retail market to new business models and prosumagers (producers, consumers, and storage users).

News Source: The Hindu