Technical and governance considerations for advanced metering infrastructure/smart meters: Technology, security, uncertainty, costs, benefits, and risks

Abstract

McHenry, M.P. (2013) Technical AbstractThe fundamental role of policymakers when considering Advanced Metering Infrastructure (AMI), or 'smart meters' for energy and water infrastructure is to investigate a broad range of complex interrelated issues. These include alternative technical and non-technical options and deployment needs, the cost and benefits of the infrastructure (risks and mitigation measures), and the impact of a number of stakeholders: consumers, distributors, retailers, competitive market operators, competing technology companies, etc. The scale and number of potential variables in the AMI space is an almost unprecedented challenge to policymakers, with the anticipation of new ancillary products and services, associated market contestability, related regulatory and policy amendments, and the adequacy of consumer protection, education, and safety considerations requiring utmost due-diligence. Embarking on AMI investment entails significant technical, implementation, and strategic risk for governments and administering bodies, and an active effort is required to ensure AMI governance and planning maximises the potential benefits, and minimise uncertainties, costs, and risks to stakeholders. This work seeks to clarify AMI fundamentals and discusses the technical and related governance considerations from a dispassionate perspective, yet acknowledges many stakeholders tend to dichotomise debate, and obfuscate both advantages and benefits, and the converse.

Why Do Electricity Policy and Competitive Markets Fail to Use Advanced PV Systems to Improve Distribution Power Quality?

“…There are a growing array of technical options to reduce issues associated with network voltage and frequency and also PV intermittency, including storage, improved conventional network infrastructure, load control, greater network ancillary equipment, intermittent generator curtailment, demand side management. Each technical option will influence the cost (positively or negatively) of either energy or quality of energy supply in a different manner due to the existing conditions and variability of the baseline infrastructure [1,4,8]. A relatively simple option on distribution networks is the use of automated distributed PV inverters, yet this will require two nontechnical policy-related advances: (1) changes in operational requirements of gridconnected inverters and (2) compensatory measures to justify the additional cost of more advanced inverter technology providing frequency and voltage control ancillary services that cater for network vagaries outside of the influence of the PV array itself.…”

“…Furthermore, network utilities do not have access to wide geographical measurements of power quality received at the level of the residential home, although with the development and implementation of advanced metering infrastructure (AMI) this will change [1]. Post-AMI introduction will generate large volumes of data regarding power characteristics at the distribution-level data at increasingly smaller increments of time, which will only increase the pressure on utilities and governments to improve the quality of electricity services [1,8]. Yet AMI and distributed automation technologies will also require improvements in distribution network power quality [29], as in contrast to relative to conventional network and metering components, the digital circuitry in some solid state electricity meters is relatively sensitive to power quality variations in a similar manner to many new domestic appliances [30].…”

“…At this time the economic costs and benefits from distributed technologies are generally captured by the network operator [5], but the present lack of market-based policy creativity led to the costs largely passed onto taxpayers rather than electricity consumers through cross-subsidies when network operators are government owned/controlled entities. Furthermore, network utilities do not have access to wide geographical measurements of power quality received at the level of the residential home, although with the development and implementation of advanced metering infrastructure (AMI) this will change [1]. Post-AMI introduction will generate large volumes of data regarding power characteristics at the distribution-level data at increasingly smaller increments of time, which will only increase the pressure on utilities and governments to improve the quality of electricity services [1,8].…”

“…Globally, there are comparable needs to find cost-effective means to maintain electricity network integrity with increasing peak electricity demand growth and high penetrations of new clean energy systems [1][2][3][4][5][6]. As a general response to peak demand, electricity sector reforms towards competitive electricity market structures oversaw large investments in new generation capacity.…”

The challenging paradigm of interrelated energy systems towards a more sustainable future

“…This triad is also valuable for organising research efforts shedding light into these challenges. Technological adaptation-oriented research has contributed with knowledge on the integration of electricity storage in distribution systems [37][38][39][40][41], integration of distributed generation sources from wind [42][43][44], solar [45][46][47][48][49], CHP [50][51][52], and micro-CHP [53][54][55][56], integration of EVs [57][58][59][60], integration of smart meters [61][62][63][64][65][66], implementation of DR [67][68][69][70][71], deployment of active distribution management systems [72][73][74][75][76], and advanced grid monitoring and control [77][78][79], as well as the use of artificial intelligence methods [80][81][82], and machine learning applicati...…”