smart metering solution in pakistan
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Smart Metering Solution in Pakistan
Business Proposal
Arslan Aftab
Submitted By:
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ContentsExecutive Summary.....................................................................................................................................2
The Problem:...............................................................................................................................................3
Recommendation:.......................................................................................................................................3
The Solution:...............................................................................................................................................4
Functions:................................................................................................................................................4
Feasibility:...................................................................................................................................................5
The Benefits:................................................................................................................................................6
Current projects:.........................................................................................................................................9
Events:.......................................................................................................................................................10
The Need of Smart Metering in Pakistan:..................................................................................................11
Our Products:............................................................................................................................................12
Conclusion:................................................................................................................................................13
References.................................................................................................................................................14
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Executive SummaryPakistan is swamped with energy crises. The continuous load shedding has troubled the economy
so much that there is no growth and unemployment rate is increasing day by day. The managing
director of PEPCO, Tahir Basharat Cheema, is convinced that the major cause of outage of
electricity is due to the local pilfering from the system; and if this is tackled properly, PEPCO
could save billions of dollars; and thus could work on the development project with more
resources.
Hence there is a need to actively seek ways to encourage efficient use of available energy and
develop a more secure supply side of energy without any energy theft.
One potential solution to tackle the above mentioned problem is to introduce smart metering
around the country which will provide detailed information about the consumption of the energy
to both consumers and the utility. This, in turn, will encourage in the demand side the consumers
to actively supervise their energy consumption behavior and modify it in order to meet the
monthly bill targets; and in the supply side, it can help the utility to become more reliable and
secure by providing customized per unit prices and quickly detecting any kind of energy theft
that is taking place in the region.
The aforementioned features of smart meters make it easier for us to see why they are gaining
wide acceptance around the world. Consumers are reaping monetary benefits and the knowledge
that they are doing their part to reduce the size of their carbon footprint. Utility providers are
now better able to forecast consumers’ demand, and are reducing their internal costs by
pinpointing power outages. Clearly, the benefits are huge for the energy consumer and the
provider.
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The Problem:Pakistan is swamped with energy crises and it hasn’t been able to meet the energy
requirement of the general public for many years.
Pakistan is a developing country and it has failed to fulfill the energy requirement of the
economy. This is the major reason why economy of Pakistan is exacerbating everyday instead of
having prosperity and growth like other developing countries around the world. Through an
estimate, Pakistan has a power shortage of 5300 MW in 2010 and this shortage has been
increasing due to high growth in demand and a rather slow or no development work on the
supply side. Energy crises has put the whole country in a test and each and every person in the
country is tired of the continuous load shedding which sometimes exceeds 16 hours per day. The
major problem in the management of energy in the supply side is that energy usage shows a high
degree of variability –it is at peak during summer due to use of air-conditioners and fans and it is
low in winter.
The second problem and which essentially is the major reason of slow development of energy
sector of Pakistan is electricity theft. Reportedly, Pakistan is losing Rs.80 billion annually on
account of electricity theft.
Recommendation:Pakistan needs to actively engage in looking for means to encourage a more rational use of
energy.
For the better management of the energy in both demand side and supply side there is a need of
an infrastructure which provides detailed information regarding the usage of electricity to both
consumers and suppliers. This will allow the users to actively supervise the energy consumption
and adjust their behavior to their target/ pre-determined consumption of energy. Further it will
allow the supply side to better predict the demand of electricity and thus provide a more reliable
supply side. Moreover, it will allow the utility to set the prices according to peaks and lows in the
demand side.
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The Solution:Smart Metering: It generally involves the installation of a “smart” device at a residential/
industrial customer and the regular reading, processing and feed-back of consumption
data to those customers.
The “smart” device mentioned above is actually a smart meter which is made of a modern,
innovative electronic device capable of offering consumers, suppliers, distribution network,
operators, generators and regulators a wide-range of useful information, enabling the
introduction of new energy services.
Smart Metering is often referred to as automated meter reading (AMR) or in the case of real-time
two-way communications as advanced metering infrastructure (AMI)
When we say smart meter we usually mean electricity meter, but smart meter can also be used
for multi-purposes such as for the measurement of gas or water consumption.
The smart meters have three basic functions: (1) measure the consumption of electricity; (2)
remotely switch the customer off; and (3) remotely control the maximum consumption of
electricity. An important characteristic of the meter is the possibilities through which it can
communicate. The communication infrastructure comprises PLC (existing electricity grid), a
wireless modem (GSM or GPRS) or an existing permanent internet connection (ADSL).
Functions:The detailed functionalities of a smart meter are given below:
─ real-time or near-time registration of electricity use
─ offering the possibility to read the meter both locally and remotely (on demand);
─ remote limitation of the throughput through the meter (in the extreme case cutting of the
electricity to the customer)
─ ability to read other, on-premise or nearby commodity meters (e.g., gas, water)
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Feasibility:Technologically, there are no obstacles for the introduction/ rollout of the smart meters.
The Italian case – the rollout of more than 30 million smart meters for the residential customers –
and the demonstration of the numerous projects of smart meters by different countries around the
world show us that this technology can be used on a large scale and it is cent percent a down-to-
earth idea. In fact, many experts believe that as typewriter and dial-phone are replaced by digital
advanced equipment; similarly, the smart meters are an advanced form and a logical successor of
the mechanical electricity meter.
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The Benefits:Smart Metering has numerous benefits and that is the reason of its wide acceptance around the
world by major developed countries all across the globe. Some of the major and most prevalent
benefits are discussed below.
1) It will allow the consumers to manage their electricity consumption more efficiently
if given the time-based rates:
We see that the electricity consumption differ with a high degree in different season. In
the summer season the consumption increases due to an intensive use of Air-conditioners
and other equipment. The utility charges different prices to customers in peak periods and
off-peak periods. Obviously, the utility will charge high price when the demand is high
(Peak Period) and will charge less price per unit when demand is low (off-peak period).
The consumer could actually make an efficient use of the electricity by adjusting his/ her
behavior in such a way that they consume less electricity in the peak periods and
necessary amount in the off-peak period; thus saving a lot of energy bill.
2) It will increase the privacy of the consumers and reduce the operational cost of
utility by eliminating the on-site visits by the utility to check the meter readings:
One of the functions of the smart meter is: both the consumers can be informed about the
readings of the meter even in the remote areas. Hence the utility can charge the bill
according to the reading of the meter without having made on-site visits. This will result
in privacy to the consumers and also a high reduction in the operational cost of the utility
which will ultimately benefit the consumers with low energy charges per unit.
3) Smart meters cannot be tampered and provides an accurate and actual
consumption overview of their region; hence could easily detect any kind of fraud or
theft.
One of the main problems around the world, especially in the developing countries is the
power stealing and energy theft. The mechanical meters can be tampered. People pay
some money to the local electrician to reverse the readings or slow the pace of the
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electricity meters. In Pakistan it is reported that the energy sector incurs a loss of 80
billion per year due to energy theft; 400 consumers of Karachi alone get away without
paying bills of their electricity consumption. The smart meters with their latest and
advanced technology cannot be tampered and in turn will save billions of dollars to the
energy sector of Pakistan.
Moreover, by using smart meters the utility will be able to get detailed information about
their region, which means they can examine any suspicious areas where energy usage is
higher than expected, and thus smart metering will provide the utility with a tool to detect
fraud.
4) It will reduce per-capita carbon footprint that energy customers around the world
are striving towards.
The smart meters give detailed information about the consumption of electricity which
also includes the measurement of carbon emission due to the usage of electricity. This
means the people who are environmental friendly could actually make an informed
decision about their carbon footprints and control it by limiting their electricity
consumption. This is eventually a positive measure against global warming.
5) It will allow the Utility provider to better forecast the demand with the real-time
detailed information and thus set the prices accordingly:
The utility such as PEPCO with smart meter will be given detailed information about the
usage of electricity of each and every region separately. This will allow the utility to
charge customized rate to each region separately and also charge peak and off-peak
period rates distinctively.
6) Smart meters enable the utility provider to cut-off the energy supply of the
defaulters without having the utility make the site-visit manually.
In the extreme case, when the service provider has to cut-off the power supply of the
defaulter the utility could do so without having made a site-visit; thus the utility can spare
itself from all the fuss that the defaulters would make during the power supply cut-off.
7) It will allow rapid outage detection and restoration of service:
Currently with the mechanical energy meters, the detection of an outage and restoration
of power are guessing games in which the supplier largely rely on the consumer calls to
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give them an idea of how large a power outage might be and where the power outage is
occurring.
8) It will allow the consumers to make informed decisions when provided with detailed
and accurate real-time information about their consumption behavior.
The smart meters also have the capability of storing the historical records of the
consumption of the power consumption. Hence, the consumers will be able to make an
informed decision of their electricity consumption and will likely to learn how to use
baking-oven, dishwashers and washing machines during off-peak periods and also will
likely to turn off lights more readily; thus saving themselves a lot of money.
Further it can enable the service provider to notify the consumers through a text message
when the bill exceeds their targeted amount, thus encouraging the consumer to act more
efficiently toward their consumption of electricity.
9) It will reduce the need of more and more energy plants to meet the growing energy
consumption demand as it will lower the consumption demand of electricity.
Building power plant to meet the demand of occasional peak period is very expensive and
costly. Increased demand side management by enabling the consumers to modify their
consumption behavior could slow down the growth in the energy demand. Also the
advanced metering will allow the consumers to “round off the peaks” thereby reducing
generation costs and making more efficient use of existing generation capacity.
10) Additional benefits:
o Labor reduction: It refers to the additional cost reduction in the call center
labor, billing and collection and disconnection of defaulters.
o Process improvement: It refers to the reduced energy theft, increased billing
accuracy and tighter billing collection.
o Infrastructure improvement: It refers to the benefits of a more accurate, digital
meter and the fact that installing new meters in a whole new area will reduce the
future meter replacement budget.
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Current projects:Many countries around the world are actively engaged in introducing smart metering to promote
efficient use of energy and encourage demand responsiveness among consumers.
Canada: The Ontario Energy Board in Ontario, Canada set a target of installation of 4.3
million smart meters with minimal technical standards covering all the customers of
Ontario.
United Kingdom: In December 2009, The United Kingdom Department of Energy and
Climate Change announced their intention of installing smart meters all around UK by
year 2020.
United States: On July 20, 2006, The Northern California Territory of Pacific Gas and
Electric (PG&E), approved a program to install 9 million smart meters for the
measurement of consumption of gas and electricity. The major reason for this approval is
that California has a summer peak of power demand during 50 to 100 hours per year due
to the use of air-conditioning. The regulatory agency is making efforts to decrease this
peak by making consumers efficiently respond to peak and off-peak prices.
Italy: The world largest smart meters deployment took place in Italy by Enel – the largest
power company in Italy- with more than 27 million customer base. It has achieved the
target of deploying smart meters to its entire customer base between 2001 and 2005.
Australia: In 2006, the Essential Service Commission (ESC) of Victoria, Australia
started installing smart meters all around Victoria. In 2013 about one million smart
meters should be installed.
Netherland: In Netherland, starting from 2008, all residential customers will be provided
a smart energy meter. The proposed time frame for the whole project is 6 years. In the
meantime, some pilot projects are also being developed.
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Other than the countries mentioned above, many developed countries like Sweden, New
Zealand, France, Ireland and Japan are actively engaged in smart metering projects. Not only
developed countries but also we have examples of developing countries like Azerbaijan
which is actively engaged in the deployment of AMI to enable smart metering. These meters
will have the ability to accept bank cards to credit the meter for billing purposes.
Events:The whole world is
celebrating the
invention of the
intelligent and
smart device of
Smart Meter.
Different events in
different parts of
the world are
taking place to
create awareness
among the
consumers about
this novel
invention. The
schedules of some
of the events are given below.
14-15 March 2011Oslo, Norway
12-14 April 2011Copenhagen, Denmark
17 - 18 May 2011Warsaw, Poland
2-3 June 2011London, UK
4-6 October 2011Amsterdam, The Netherlands
4-6 October 2011Amsterdam, The Netherlands
16-17 November 2011Moscow, Russia
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The Need of Smart Metering in Pakistan:Pakistan has been troubled with energy crises for more than five years. It needs to actively
engage in solution which will enable its customers in management of their energy consumption
and also enable the development of energy sector by reducing the operational costs as much as
possible. Further, the energy sector of Pakistan is in no position to incur losses at this troubled
stage. But still we see that it is losing more than 80 billion rupees per year due to energy theft
and; more than 400 consumers in Karachi alone are consuming electricity without paying their
bills.
According to PEPCO’s Tahir Basharat Cheema most power outages occur in due to overloads
caused by local pilfering of the systems. He said that the first priority of the task force is to target
meter tampering and then make the utility company to operate more efficiently; and this target
could only be achieved by introducing smart metering in Pakistan.
The managing director, Rasul Mehsud, is convinced that the smart metering can save billions of
rupees and it can enable the power sector to curtail its expenses. According to official sources,
the smart metering solutions can reduce electricity theft from 10 per cent to 3 per cent per
annum, which can save more than 30 billion rupees per annum.
The CEO of LESCO, Saleem Akhtar, spoke about the success of the smart metering pilot project
which had been experimented in Shadbagh, Shadman, Dehli Gate areas of Lahore and he told
how LESCO has been able to save tens of millions of rupees just by the investment of 6.2
million rupees only. Reportedly, theft and losses fell sharply from 11 per cent to 2.9 per cent in
Shadbagh and Shadman and from 13.2 per cent to 4.4 per cent in Dehli gate, after installation of
smart metering.
The above analysis shows how badly the power sector of Pakistan needs the installation smart
meters for the efficient and theft-free usage of power across the country.
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Our Products:Micro-Tech Industries Limited is one of the pioneers in Pakistan to introduce smart meters in
Pakistan. Some of the models (with their core features), offered by Micro-tech, have been
discussed below:
A283GInnovative, hi-tech static single phase energy meter for remote meteringAMR provides the electric utility companies the opportunity to increase operational efficiency, improve customer services and reduce data collection costs.
A326GAn innovative & hi-tech static 3-Phase Whole Current energy meter for remote meteringServer based EMS (Energy Management Software) is used to collect data from remote energy meters for detailed anlysis and billing.
P4233 phase 4-wire smart card based prepaid solid-state energy meter has been specially designed for commercial users and households.Various consumption details are visible instantly.
I411It is a solid state 3 phase multi function multi tariff energy meter developed especially for environments where power stealing is a major concern.This model comes with comprehensive Anti-Stealing features, Monitoring, Load Profiling and Event Recording.
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Conclusion:The whole analysis regarding the current energy crises and the energy theft issues coupled with
the losses of more than billion dollars in the energy sector invoke us to think new, improved and
efficient ways to make the most of the available energy resources that we have in Pakistan; and
smart metering is one the most potential applicable solution that is available to Pakistan to cope
with this problem.
From the wide acceptance of this project around the world shows us that, with no doubt this
technology (smart meter, infrastructure, data processing) is mature and can be implemented on a
large scale to encourage an efficient use of s scarce resource such as energy.
Al though there are some challenges to be tackled. The major and foremost challenge is that the
success of this project is largely dependent on the consumer who chooses in the first place to
make an efficient use of energy and save their money. There is a need for the awareness of this
equipment and a know-how is also very important. Also, it is reasonable to say that smart
metering should be started in the industrial sector and urban areas first and after the success of
the project in those areas it should be deployed intensively in the rural areas of Pakistan.
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Referenceshttp://freebird.instablogs.com/entry/power-theft-and-power-crisis-in-pakistan/
http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=data/business/2007/April/business_April110.xml§ion=business&col=
http://www.energy-retail.org.uk/smartmeters.html
http://www.mei.gov.on.ca/en/energy/conservation/smartmeters/
www.idc-online.com/technical_references/pdfs/.../ Smart _ Metering
http://en.wikipedia.org/wiki/Smart_meter
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