How to Leverage Smart Meter Opportunities with Future-Proof Designs
The role of metering is changing—and advances in technology are driving that evolution. Early connected meters reported consumption once a month, but that model is fast becoming outdated. Relationships between energy providers and their customers are growing deeper and more complex. Regulatory bodies around the world are setting energy savings mandates that utilities must meet. Consumer-facing apps, demand response programs, software, and other services are becoming key elements in the smart metering market.
And the market is exploding. According to a 2018 IHS Markit Technology report, “Annual shipments of smart electricity meters exceeded 100 million units for the first time in 2017, whilst total meter shipments reached 170 million.” The same report states that meter manufacturers generate nearly $5 billion every year for hardware, software, and services. Similarly, the smart water meter market is predicted to reach $5.5 billion by 2021 (Markets and Markets Research), and the global smart gas meter market will grow to $1.62 billion by 2025 (Frost & Sullivan).
To compete in a changing market, utilities must look closely at existing technology and create a plan for the future that considers key issues such as customer engagement, cellular network evolution, and the increasing prevalence of consumer facing applications.
Adapting to the Market
The past decade has seen a tremendous shift in the energy landscape, marked by a rapidly expanding smart meter market. Automated Meter Reading (AMR) has given way to Advanced Metering Infrastructure (AMI) or smart metering, providing utilities with a constant connection to meters. Today’s smart meters also enable utilities to check grid status instantly and manage many problems remotely.
On the consumer side, Internet of Things (IoT)-based smart home technology is driving increased interest in energy usage, motivating consumers to monitor their consumption and assert more control over it. Utilities and other energy stakeholders are developing mobile apps that educate consumers about energy usage, allow them to control thermostats remotely, act as portals to request service calls or pay bills, and more. Some apps even tap into metering data to paint a picture of a consumer’s energy usage.
For utilities, apps present an opportunity for increased customer engagement because they create a portal for two-way communication. Utilities can create apps to help consumers better understand (and participate in) demand response programs. Customer engagement apps can also optimize field service by providing a way for customers to report specific issues and send photos or other information to technicians prior to a service call.
In response to these fundamental shifts, utilities should ask the following questions:
• Which types of functionality do we need? (Remote meter programming, time-based rates, interface based on OpenHAN standards, etc.)
• How deeply do we want to engage consumers, and with what kinds of programs? (Energy education, demand response opportunities, service request portal, bill pay, etc.)
Answering these questions enables utilities to determine the best connectivity standard for their specific needs.
Choosing a Standard
Utility companies looking to implement a smart metering solution must choose from a variety of connectivity standards. Low power wide area networks (LPWAN) are a popular choice because they provide inexpensive, low-power, long-lasting, wide-range connectivity based on mobile technology.
While coverage remains an issue in some areas, the climate is changing rapidly with the adoption of several global LPWAN options:
NB-IoT
LoRaWAN
LTE-M
Depending on specific use cases and needs, cellular standards are also viable choices for smart metering initiatives:
2G/3G
4G/5G
Choosing a Communications Module
When deciding on a communications standard, utilities must also determine the best module for their solution—an essential component for any smart metering initiative. To make the most informed choice, consider the following variables:
Size & Form Factor.
If possible, choose a module (or module family) with a form factor that can be used across the market you serve, irrespective of other technology.
Power Usage.
Low power usage will lengthen the device’s battery life and decrease the frequency of needed maintenance.
Longevity.
Look for a module with a life cycle that matches that of your meters, and a provider that will still be in the market when replacements are needed.
Anticipating Future Changes
Ultimately, utilities must anticipate a rapidly changing energy market and create a solution that’s nimble enough to keep pace with it over the next several years. Here are five key questions utilities should ask when planning a future-proof smart metering initiative:
Many utilities build and operate their own cellular networks, but that may change as major carriers introduce IoT-specific networks and expand their coverage. Whether building their own networks or not, utilities would be wise to choose standards and modules that can adapt to future innovations in cellular technology and accommodate the expanding world of commercial, consumer facing applications that will help customers gain more control over their energy usage.
Until now, 2G and 3G have been popular choices for smart electric metering because of their cost efficiency and wide range—but 2G shutdowns have already happened in the US and Australia, and the rest of the world will eventually follow suit. While 2G and 3G remain viable options for smart electric metering in some areas, such as Europe, utilities around the globe would be wise to ensure that any new smart meters have the ability to adapt readily to the growing wave of 5G.
Telit: A Proven Leader in Cellular Modules for Smart Metering
Telit offers a large portfolio of LPWA cellular communications modules – including LTE Cat 1 and NB-IoT – and non-cellular modules (LoRaWAN), perfectly suited for smart metering applications.