Opportunities for Upgrading Smart Grid Connectivity

The objective of this study is to analyze the various aspects and characteristics that compose the Advanced Meter Infrastructure (AMI) market. Through the research of this market, this study will provide a complete picture of the current status and the different variables that will affect this market’s future development until 2016, the end of our forecasted period. The drivers, restrains and trends that will affect this market will be discussed in order to correctly assess the future progress of the AMI market. The base year for this market study is 2011 and the geographic scope includes the North American region including the United States (U.S.) and Canada.

Smart Meters and Installation

•Smart meters are advanced devices that allow two-way communications between the utility and the end users.
•As defined by the Federal Energy Regulatory Commission (FERC):
“Advanced Meters: Meters that measure and record usage data at hourly intervals or more frequently, and provide usage data to both consumers and energy companies at least once daily. Data are used for billing and other purposes. Advanced meters include basic hourly interval meters, meters with one-way communication, and real time meters with built-in two-way communication capable of recording and transmitting instantaneous data.”
•In AMI, smart meters account for a large portion of AMI costs.
•The benefits of smart meters for consumers is they allow consumers to be informed about the energy use so they may monitor and control it through various services that AMI enables, such as:

- Dynamic pricing
- Prepayment options
- Real-time usage information
- Reduction of billing errors

• Utilities also find positive incentives for installing smart meters:

- Reduced costs through remote meter reading and connect/disconnect
- Real-time identification of supply faults and theft detection through alarm systems
- Fewer reading errors and self-healing systems with software that can be updated remotely

Communications Network

•The communications systems that work with metering devices are the key components of AMI.
•The various elements that compose the AMI communications network are:

oMeter Modules—these are devices usually installed inside the meters.
oHome Area Network (HAN)—Allows the interaction between smart appliances and devices to enable home automation. Utilities allow consumers to monitor and control their energy usage as they receive real-time data informing them about their consumption.

HAN technologies include:

•ZigBee—A low-cost, low-power, high-communication alternative that uses radio frequency (RF) signal for data transmission through a wireless mesh network. Some advantages of this technology include long battery life and low data range requirements.
•Wi-Fi—Enables appliances and smart grid devices to work with the same technology. The interoperability of Wi-Fi makes it flexible and versatile for low- to high-power performance.
•Home Plug Command and Control (HPCC)—Allows automatic adjustment and remote controlling. HPCC is also capable of working with other technologies by adding an adapter. No additional wiring is needed.
•Internet Protocol (IP) allows multiple types of equipment, media, and systems to operate transparently without adding the burden of conversion of protocols.
•The demand for HAN technologies will grow with use of PHEVs and renewable energy solutions

- Local Area Network (LAN)—In charge of collecting and transferring data from smart meters to the utility after going through a concentrator or directly to the backhaul system or aggregator. Various LAN technologies are:
- Power Line Carriers (PLC)—Uses power lines already installed. It is the simplest and most economical option, although data is transferred at lower rates.
- Broadband Over Power Line (BPL)—More expensive compared to PLC technology. Although data is transferred at high speed, data signals are usually weak compared to PLC.
- RF Star or Mesh—Data is transferred at higher speed than PLC but depends on vendors’ established frequency ranges. RF technology may be licensed or unlicensed.

•Internet Protocol (IP) allows multiple types of equipment, media, and systems to operate transparently without adding the burden of conversion of protocols.
•The demand for HAN technologies will grow with use of PHEVs and renewable energy solutions.
•Licensed frequency is private. Data transmission takes place in an unshared environment. Communications are generally of higher power compared to public frequency. The relevant benefits of licensed communications are the guarantee granted by the Federal Communications Commission (FCC) of interference-free communications and greater security.
•Unlicensed or public frequency is shared, and results in increased weakness in data transmission due to interferences, resulting in data loss. Devices in unlicensed frequency networks must meet high-density requirements.

TABLE OF CONTENTS

Executive Summary

Market Overview

AMI Market Segment Analysis

North American AMI Market

Key Industry Challenges

External Challenges: Drivers and Restraints—AMI Market

Forecasts and Trends—AMI Market

Market Share and Competitive Analysis—AMI Market

AMI Company Profiles

Mega Trends and Industry Convergence Implications

The Last Word

Appendix