The Smart Meter Technology Value Chain (Strategic Focus)

The Smart Meter Technology Value Chain (Strategic Focus) published by Datamonitor in October, 2009. This report consists of 57 pages and the price starts from US $ 3395.

Introduction

Abstract

Introduction

This report looks at the advanced metering infrastructure value chain. It covers what is driving utilities to adopt smart meter technology, what technology makes up the infrastructure, how the technology benefits a utility, key players in the ecosystem and the competitive landscape for these players.

Scope of this research

• Discusses the drivers for adoption of smart metering technologies in Western Europe and North America
• Provides insight into what technologies comprise advanced metering infrastructure
• Describes how different utilities will benefit from different elements of the smart metering infrastructure
• Provides recommendations for technology vendors and services companies

Research and analysis highlights

A full analysis of the current performance of technologies is included, as well as Datamonitor' s opinion on future take up of the various technologies underpinning advanced metering infrastructure.

The geographic and utility-specific drivers for adoption are detailed in length, providing insight into what technologies will be adopted where and for what reason.

Key reasons to purchase this research

• Gain a deep insight into the advanced metering infrastructure
• Understand why utilities are adopting advanced metering infrastructure technologies
• Learn where the current bottlenecks lie in advanced metering infrastructure

Table of Contents

OVERVIEW

• Catalyst
• Summary

KEY MESSAGES

• Ageing electricity infrastructure is based on centralized generation
• Current industry pressures drive AMI adoption
• AMI adoption will vary across geographies
• There are many barriers to the adoption of AMI technology
• Differentiation amongst meter manufacturers is difficult
• Meter Data Management systems are core to AMI functionality
• A great deal of the value of AMI lies beyond the MDM

MARKET OPPORTUNITY

• Scope of report
• Ageing electricity infrastructure is based on centralized generation
• Current industry pressures puts the centralized generation model under strain
  • Cost to serve
  • Electricity theft is exacerbated by time to detection
  • Widely dispersed renewable energy generation causes problems on the distribution network
  • The intermittency of wind power increases the potential for large scale energy storage investment
  • Improve interoperability
  • Demand management
  • Customer usage data
  • Mismatches in the settlement process
• AMI, as a part of the smart grid, can address many of the current industry pressures
  • The functionality made available through AMI addresses many of the current industry pressures
  • Smart grid technologies address issues surrounding distributed generation
• AMI adoption will vary across geographies
  • There are many factors that drive the type of AMI and smart grid investment
  • AMI is more likely to gain funding than other capital projects
  • Not all AMI roll outs are driven by logical decision-making
  • The drivers for adoption varies across geographies
• There are many barriers to the adoption of AMI technology
  • The technology remains unproven at scale
  • Open standards
  • To gain full functional benefit of AMI, much of a utilities back office and applications need upgrading
  • The recession and subsequent economic stimulus package have both caused delays to AMI investments in the United States
  • European regulations will probably insist on minimal technological requirements

THE AMI VALUE CHAIN

• Meters
  • Meter functionality is diverse
  • Technological innovation is only a temporary differentiator among meter manufacturers
  • The frequency of meter readings will drive huge investment in data center hardware
• Communications
  • Home area network communications
  • Last mile to home - the network linking smart meters to the outside world
  • Wide area network - transmitting meter data to the utility
• Meter data management systems
  • Meter data management systems become the core of AMI-enabled functionality
  • The functionality of MDM systems varies from supplier to supplier
  • MDM systems are all adaptations of products designed for different applications
  • All MDM systems are struggling with scalability issues
• Beyond the MDM
  • Smart delivery
  • Smart customer

CUSTOMER IMPACT: THE BENEFITS OF AMI

• Customer side
  • AMI provides accurate automated meter reading, cutting field force costs
  • AMI improves the efficiency of processing customer churn
  • AMI enables the efficient conversion to prepay
  • AMI helps mitigate losses through theft
  • AMI will change the face of a utility' s contact center, but may not help reduce costs
  • Improved customer visibility of energy use
  • AMI data improve knowledge of the customer
• Delivery side
  • AMI improves the accuracy of load forecasting
  • AMI allows utilities to manage demand by controlling end user' s appliances
  • AMI can also help utilities to manage demand through time-of-use tariffs
  • AMI promotes microgeneration of renewable energy
  • AMI assists in detecting outages much faster

COMPETITIVE LANDSCAPE

• Meter manufacturers
  • Itron
  • Landis + Gyr
  • Elster
  • Echelon
• Communications manufacturers
  • Trilliant
  • Silver Spring Networks
  • Ambient
  • Aclara
• Telecommunications companies
• MDM vendors
  • OSIsoft
  • Ecologic Analytics
  • Itron
  • EnergyICT
  • eMeter (EnergyIP)
• Enterprise software companies
  • Oracle
  • SAP
• Systems integrators and outsourcers
  • IBM
  • Accenture
  • Capgemini
  • Logica
• Partnerships and alliances
  • Smart Energy Alliance
  • AMI Lighthouse Council

GO TO MARKET

• Understand your clients' specific needs
• Don' t rely on technology to differentiate
• Provide strong ROI cases and proofs of concept for applications beyond the MDM
• Work around utilities' inherent conservatism
• Services companies should focus on the customer side for AMI-driven opportunities

APPENDIX

• Definitions
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

FIGURES

• Figure: Traditional electricity provision is based around centralized generation
• Figure: Pressure from all sides causes utilities to change their business model
• Figure: It is more expensive to supply electricity in times of peak demand
• Figure: Smart grids enable a distributed network of electricity supply
• Figure: The characteristics of a utility and the market in which it sits impacts how and if AMI and the smart grid will be implemented
• Figure: Datamonitor expects smart metering to fare better than other capital projects for utilities such as power generation
• Figure: There are general geographic trends that drive the adoption of different AMI technologies
• Figure: There is a diverse array of functionality that can be added to a smart meter
• Figure: Functional modules require additional applications to manage them
• Figure: Communications within the AMI infrastructure
• Figure: Beyond the smart electric meter: typical smart appliances in the Home Area Network
• Figure: Current selection criteria for meter to concentrator communications
• Figure: The Meter Data Management System becomes the core of both delivery and customer processes
• Figure: AMI benefits both the delivery and customer sides of a utility' s business
• Figure: By introducing peak time tariffs peak load can be reduced
• Figure: Selected vendors in the AMI value chain

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