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Publication to Provide Insights on AMI’s Impact on the Utility of the Future
By Rob Wilhite
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Welcome to the inaugural issue of KEMA’s Automation Insights!
This is a great time to be a participant in the world of advanced metering. With near-Darwinian changes in Advanced Metering Infrastructure (AMI), there are numerous exciting developments. Emerging product innovation and new offerings driving this market include under-glass remote disconnect/reconnect, advances in digital communications platforms, increased focus on home area networking interfaces, greater remote meter programming and monitoring features, and even some attention on pre-paid metering systems. Encouraged by regulatory drivers in both Canada and the United States, many of the features and functionalities of emerging AMI systems are accelerating industry innovation, as well as fostering price declinations, perhaps at a greater rate than seen in the past few years.
With this increased focus on greater AMI functionality and two-way communication into the home, the premise of a "Utility of the Future" is becoming increasingly feasible. The keystone to achieving this concept of a Smart Grid is to provide greater visibility across all utility systems, including those that enable consumers to better understand, and respond to, retail time-based prices. Consumers that are provided choices on how and when they use energy will become an even greater asset in the utility infrastructure, particularly if they have the ability to understand the implications of these choices in near real-time. Matt Smith from Duke Energy’s Strategic Planning group puts it this way: "Home automation enabled by utility infrastructure upgrades can create smart networks at the residential level."
Imagine the scenario where the utility notifies a customer via email through their PDA or cell phone that a load control event is required to maintain system reliability. The customer’s on-site generator will be dispatched automatically, through the AMI meter/system, with a projected savings quoted to the customer. The customer’s home computer or energy management system is pre-programmed to either accept or deny the dispatch request, subject to the economic value anticipated between the projected utility savings and the fuel and maintenance costs of running the generator. Once dispatched, the customer and the utility can monitor the net energy impact as generated energy flow is also measured by the meter into the utility grid. This one Utility of the Future use case can be enabled by available and emerging AMI technology today.
Before we get ahead of ourselves, let’s take measure of the issues ahead. The path to the Utility of the Future will not be easy, as a number of key questions need to be reviewed and resolved. These questions include:
With increased interconnectivity between AMI and utility data and control systems, what new or revised security protocols are needed to ensure integrity of these systems?
How will regulatory changes (many driven by EPAct) being considered or adopted by individual states impact the plans and AMI initiatives across multi-state utilities, or across the industry as a whole?
Are current standards-setting processes within industry sufficient to maintain the seemingly accelerated pace of product innovation in AMI, communications and distribution automation systems?
What defines the Utility of the Future, especially the role of AMI as an enabler, and what reference standards may be necessary to implement this vision as it emerges across several utilities today?
With enhanced functionalities and expected benefits from emerging AMI systems today, how can utility planners ensure acceptance by key stakeholders across the enterprise, in order to minimize the risk of implementation and maximize value realization?
With a recent spate of transactions, what impacts to product innovation and pricing will be seen from further consolidation among AMI vendors?
While we do not seek to answer these questions in a single discussion or dialogue, it is KEMA’s intent to explore these topics like these in future editions of this publication. It is our belief that AMI and utility automation systems will be a key enabler of many utility’s visions of the Smart Grid concept. We are gathering thoughts from across the industry, including utilities, vendors, and regulatory participants, and would seek to assimilate these ideas through this communiqué. We invite your comments and feedback as we move forward into the Utility of the Future.
Please contact Rob Wilhite with your feedback, ideas, and suggestions.
Join Automation Insight! Share your ideas! Please contact Automation Insight to receive future issues via e-mail or to share your feedback, ideas, and suggestions on this or future issues of the publication.
Download PDF. To view the full version of this article, including any charts and graphs referenced, use the download link below for the PDF of this issue.
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[download] Automation Insight Vol 1 No 1 (.pdf 208 kb)
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