1. Smart Metering: To help Indian utilities address the revenue challenge B. S. Babel - President, IEEMA Indian Electrical & Electronics Mfg. Association

2. India’s energy scenario India is the 3 rd largest producer of electricity in the world The world loses $89.3 billion annually through power theft India loses US$ 10- 15 billion annually 240 million Indians live without access to electricity For generation, availability of fuel and renewable energy infusion has been addressed. Additional transmission capacity and inter regional capacity is being addressed. The distribution sector is struggling

3. Indian Power Sector- an Overview Both central & state govt. involved in power sector Discoms accumulated losses 70Billion$ 240 million consumers Very High losses 23- 25% Low revenue /Per capita use ~1010 kWh Load Growth 6-8% Peak shortage 1.5% Energy shortage 1.0% Energy produced 1200 Twh

4. Info. need for distribution management System Maintenance Customer Billing Energy Accounting Disconnections & Reconnections Tariff design System Losses Revenue Protection Load Control Distribution Automation Load Forecasting Customer Relationship Power Quality Transfers & Vacancies Managing Credit Collecting Cash System Operation System Expansion Information through smart metering ? Customers Profiles Wires Readings Geography Accounting & Payments Assets

5. Indian discom story Positives: Early adapters of electronic meters for all segments. Meters with high accuracy and tamper detection capability Could not appreciate Changes required in discom processes to convert data to business decisions Many did not build computing and IT system and support team Indian power system conditions. Surges, spikes, over voltage, high temperature, poor installation Social side of power theft Lagging :Moving in circles on meter data collection Impact No details around the drivers and variability of energy loss Outcome, no real benefits out of installing electronic meters for several discoms

6. Metering Industry Status At par with global technological developments. World’s first smart meter jointly developed in India in 1988 World leaders in addressing Tamper & fraud issues Comprehensive design and manufacturing capability in India : Around 25-30 million per year. Indian companies are ready with smart meters and have implemented AMI solutions in Developed and Developing economies. Smart meters exported out of India Around 1/3 rd of global “Smart Meter”/Smart technologies design/Engg. is based in India. Around 700k meters with switches deployed, began a decade ago in the country. Around 5 million meters with various communication links working. Bulk supply points success. Discoms experienced mixed success. few really utilised the data. System integration challanges faced

7. “What is SMART”today and in foreseeable future What do we desire from a Smart meter An overview Which provides desired results in quickest possible time deploying appropriate technology at affordable cost for today and tomorrow Key business drivers today and in foreseeable future For Owner/Service provider and for end user What does it take to adopt and grow it. Change management issues System versus standalone equipment Smart meter to AMI to smart grid Journey Smart meter records consumption in intervals of 30mins or less. communicates information at least daily back to the utility for monitoring and billing. enable two-way communication. Provides on line update to the user through web or in home display to help efficient energy usage and reduce bill. Sensor for smart grid..

8. 24x 7 power supply Transparency Reduced theft - AT&C losses Improved customer services Integration with renewable load Management Key Drivers - Smart Metering in India

9. Value delivery from smart meter Planning Operation efficiency ENGG. Revenu e leakage Asset Managem ent Custom er Service Demand Managem ent Field Crew Managem ent Meterin g Billin g Adding communication and connect/ disconnect switch Meteri ng Billin g Utility operations benefited by Walk by reading Utility operations benefitted by adapting Smart Metering Data Analytics Smart Grid Renewable Integration Reliability

10. UDAY, innovative effort to address the problems faced by discoms. It will address the issue of high interest burden and effective power purchase. The elephant in the room is high AT&C losses. Increasing with increased generation “UDAY” has provision for smart metering and related IT support The key challenge for Indian discoms is reducing AT&C losses Let’s talk about the elephant in the room

11. An overview Understanding the root causes of AT&C losses Revenue Losses Non-Technical Losses Metering Related Errors & defects Data Fraud Tamper Other Unmetered supplies Illegal connections Commercial Losses Commercial Practice Data Flows Long Cash Cycle Debt Management Won’t Pay Can’t Pay Technical Losses Unavoidable Losses Avoidable Losses

12. 2 years back 14 smart grid pilots started. Focus more on Smart metering RFPs floated for approx. 300k Smart meters Orders decided for approx. 150K Smart Meters. Unfortunately, revenue could only be recognized for 5k Meters Lack of standard specification of meter Selection of communication technology Regulatory support missing SLA not being achieved, field issues etc.. All are new entrants. Smart Grid pilots experience

13. Challenge with utilities: Improve revenue and reduce losses : Credit management Load / demand side management Last mile (Distribution) is a constraint and many Discoms are loss making Complex meter design Support of various revenue protection features: High theft Customization based upon utilities specific requirements L-1 buying low initial cost expected Poor electrical system condition due to: ● Geography & age of the network. ● Surges, spikes and voltage variations High ambient temperature Dusty and humid in many areas Poor installation practices Challenges in Indian Contexts

14. Technology alone cannot solve problems Consider value delivered rather than cost alone People, processes and technology must come together Results People Dedicated IT team People with good analytical ability Keeping abreast with technology Technology Cost effectiveness Total cost of ownership Sociology of technology Processes Simple & effective Transparency in service levels Creating multiple payment option Customer education

15. USA Quantity 100 million Around 100 USD United Kingdom Quantity 60 million Around 100 USD Australia Quantity 2.9 million 150-170 USD France Quantity 35 million 150-200 Euro World wide smart metering projects Cost vs Volume

16. Key message An overview Act on the root causes of losses. Use cost effective, end to end systems / solutions suitable for Indian conditions Share experiences of successful implementations by various discoms. Use best practice examples. Consider outsourcing metering, billing and collection services where appropriate Procurement should be based on quality and cost after assessing the capability of the vendors. Partner with India based vendors with domain knowledge. Before adopting a new technology address issues with people and processes. Create an organisation for effective revenue management. Create effective engineering cells for monitoring, selecting the right technology to solve the problems. Provide necessary training and exposure. Launch a mass communication campaign against power theft.

17. IEEMA is committed to partner An overview The solutions are available! And are Made in India Must be socially and political acceptable by Indians Indian utilities must be able to run with the processes Must be cost effective Will not be instant or there will be no ‘miracle cures’. “Sociology of technology” is critical. We need to communicate with the masses