Advanced Metering Infrastructure Market Potential

In the past, Utility Authorities have suffered significant losses due to outdated equipment and technologies, and inefficient collection and recording methods. These losses have resulted in rising maintenance costs. With the advancement of technology, there was a need for a more reliable and accurate method of collecting meter readings. The automated method, or Automated meter reading (AMR), achieved this goal while improving efficiency and effectiveness, thus achieving the dual goals of lowering overhead costs while increasing revenue.

In the 1990s, general advances in technology began to be applied to metering, more significantly in the area of communications. Technology has advanced to collect and read the meter without a visual inspection, through the use of radio, power line, and wireless-based communications — collectively known as Advanced Metering Infrastructure (AMI). AMI produces cost savings for utilities due to reduction in labor costs and increased meter reading accuracy, making it easier for utilities to provide customers with billing data and to advise customers, particularly regarding outages. In addition, the system seamlessly integrates into any existing billing system. Thus, additional investments are not necessary, although billing systems can be updated at any time as the need arises.

Meters are available that allow measurement in smaller intervals and allow "time of use pricing" and "critical peak pricing"; however, these meters do not have widespread communications capabilities. AMR technology has allowed utilities in recent years to reduce costs. However, while these cost reductions presumably have been passed on to customers as a benefit, there is no other direct benefit to the customer from AMR deployment. With the more advanced meter or smart meter, utilities are able to provide customers with price signals and more detailed usage data, giving customers the ability to manage their usage in response to such information. With features such as outage reporting and restoration verification, advanced metering also provides utilities with more capabilities to manage their distribution systems and operations more efficiently and reliably.

The current AMR market revenues in North America are estimated at more than US$1 billion, and they are expected to double within the next six years. Recent thrust in AMR deployment has been a result of the Energy Policy Act (EPAct) 2005, which strongly encourages the need for smart metering and utilities to reduce costs and improve efficiencies. The future of advanced metering, however, will depend heavily on the policy and decisiveness of the governmental bodies involved. Energy savings and an increased security of supply will be the main drivers, and belief in advanced metering as a means to reach these goals is indispensable.

Renewable & Alternative Energy Resources: http://www.alternativeenergybase.com

This report is published by Energy Business Reports, an energy industry think tank and leading source for energy industry information and research products. Energy Business Reports publishes and markets leading-edge industry reports in all sectors of the energy markets.

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Renewable & Alternative Energy - General Articles Via RSS!

Got a Question?

Additional Articles From - Home | Renewable & Alternative Energy - General

Competitive Job Market in the field of Environmental Science - By : Pebble Hills University
The Question About Energy! - By : Altawell
Asian Coal-Bed Methane Brews As a Potential Hot Energy Play - By : Dolly Tayal
Deep Reservoir Studies - By : Energy Business Daily
Resources For Alternative Energy - By : wpat007

Sign Up for a free account or learn more

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds

Extend the life of your batteries => Save money by battery reconditioning

About Us
Link to Us
Contact Us
Privacy Policy
Terms of Service