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College of Engineering, Technology, and Computer Science

CHALLENGES OF THE DEPLOYMENT OF ADVANCED METERING

INFRASTRACTURE (AMI) WITHIN U.S SMART POWER GRID

In partial fulfillment of the requirements for the Degree of Master of Science

in Technology (Information Technology)

A Directed Project

By

PETER K MUCHAI

May 2014

TABLE OF CONTENTS

Introduction

Review of Literature

Advance Metering Infrastructure(AMI)

AMI and Meter Data Management

Energy Efficiency, Demand Response, and Load Control

Efficiency, Reliability, Security, and Stability of the Grid

AMI Time-Based Rate Programs

AMI Security

AMI Markets

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AMI Solution Providers

Companies Working on Smart Grid in U.S

Public Institutions working on AMI

Smart Meter Development / Deployment

Challenges during AMI deployment

Consumer Reported Concerns on AMI.

Conclusion

EXECUTIVE SUMMARY

AMI typically refers to the full measurement and collection system that includes meters at the customer site, communication networks between the customer and a service provider, such as an electric, gas, or water utility, and data reception and management systems that make the information available to the service provider.

Advanced metering infrastructure is made up of hardware and software components that combine interval data measurements with continuous available remote communication.

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KEY TERMS

AMR (Advanced meter reading)

Peak load time

Smart Meters

Renewable Energy

Electric Power Grid.

Installed Capacity

Capacity Factor

Summer Reliability.

Peak Demand

INTRODUCTION

AMI is the core component of the smart grid

technology.

In the FIGURE below all the components of AMI

are shown; the customer is equipped with

advanced solid state, electronic meters that

collect time-based data

AMI enables two-way communications, so

communication from the utility to the meter

could also take place.

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ADVANCED METERING

INFRASTRUCTURE

AMI VICIOUS CYCLE

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PROBLEM STATEMENT

Common Technical Challenges

Decision tools for operators

Communications infrastructure

Performance metrics

Smart Grid Data management and analytics

Robust operational and business models

Transmission operations

Distribution operations

Customer empowerment

Energy infrastructure cyber protection

Privacy of information

Coordination of policy and regulations

Market fragmentation for smart grid technologies

The business case for smart grid technologies

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SIGNIFICANCE OF THE PROBLEM

Conserving Energy

Manual energy meter reading is a tedious.

Efficiency

Consumer Security

Price

Renewable Energy.

SCOPE OF STUDY

Research on all the issues affecting the

implementation of AMI.

Base research from Government websites.

Credible organization websites

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ASSUMPTIONS

I assume I will be able to interview an employee from one

of the power companies in Fort Wayne.

I assume I will be able to have access to smart grid

material from government websites and other credible

sources.

I assume to have access to IEEE publication material for

the entire time of my project.

LIMITATIONS

Access to smart meter data from government websites that

has not been released to the public

Delimitations

I will not have enough time to conduct an extensive

research on smart grid technology as a whole.

Time Action Plan

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REVIEW OF

LITERATURE/BACKGROUND

33%

24%12%

12%

10%

3%

2%

2%

1%1%

China

EU

USA

India

East Asia

Canada

Aus/NZ

Africa

Russia

Middle East

270 Million

200 Million

100 Million

100 Million

80 Million

15 Million

20 Million

5 Million

10 Million

25 Million

Expected Smart Meter Deployment: 2025

ADVANCED METERING

INFRASTRUCTURE.

Residential or

Industrial

customer

Conventional

Energy Meter

Manual

collection of

data

Manual Billing

Residential or

Industrial

customer

Smart Meter

Communication

interface/

protocol

Gateway

Communication

interface/

protocol

Database

Conventional Energy Meter

Advanced Metering Infrastructure

Electric Usage

Electric

Generation

Electric Usage

Comparison Between AMR And AMI

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TYPES OF SMART METERS

Radio Frequency Meter - is used to send out a

pulse that is read by a meter reader’s handheld

device.

Power Line Carrie Meter - utilizes the electric

power lines to obtain meter readings by sending

back a signal to the power substation

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Cellular Meter - provide usage history, service

voltage, and power quality information through a built

in cell phone the utility provider can call to collect the

readings.

Smart Meter - allow the utility provider to remotely

monitor and operate their transmission and distribution

systems to better manage how energy moves in their

grids. Allows two way communication between provider

and meter.

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SUMMARY OF ABOVE METERS

Name Features Advantages Weaknesses

Radio Frequency

Meter

Radio transmitter

broadcasts meter

reading and

identification every

few seconds

Can be read remotely

by receiver

Coded signals can

only be read by utility

owned receiver

Meter reader must

drive by house to

receive reading

Power Line Carrier

Meter

Sends readings over

power line to a

substation receiver

Cellular phone system

can be used to collect

monthly readings

Real time feedback is

not available to the

customer

Cellular Meter Cellular phone built

into meter can

transmit readings and

usage data

Utility provider can

collect readings,

usage history, service

voltage, and power

quality

Communication with

the meter is still one

way and customer

does not have real

time feedback

Smart Meter Built in two way radio

that is in constant

communication with

utility office and a

second radio or Wi-Fi

card that can

connect to SMART

appliances

Collects reading and

data several times a

day and provides

customer with real

time usage

information. All data

sent is encrypted

Cost of

implementation.

Existing grids may have

to be upgraded to

support smart meters.

Lack of public support

for new technology

BENEFITS OF AMI

Increased meter reading accuracy

Improved Utility asset management

Easier energy theft detection

Earlier detection of meter failures

Easier outage management

Improvements of billing accuracy.

Faster service restorations

Flexible billing cycles.

Providing a variety of time-based rate options

Create customer energy profiles for targeting

energy efficiency.

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Price

Energy Savings

Environment

Reducing Late Payments

Increased Data & Consumer Security

Reduced Operational Cost

Improved Customer Service

Meter Reading Savings

Energy Monitoring

Automated Outage Management

Home Automation

Transactive Controls

Challenges and issues facing AMI

Technical challenges

Business and Financial Challenges

Implementation.

Replacing Existing Energy Meters.

Device Integration

Terrestrial Difficulty

Incentives

Customer Privacy Issues

Security Risks

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Maintenance and Management

Physical Damage

Challenges of higher penetrations of wind and

Solar to the grid.

Cost

Standardization

Security

Rate designs

Education

Design

Technology not to

be included

Physical

aspects

Cost of the

deviceCommunication

ID for all devices

and appliances

Billing

software

Metering

technologyStrtength

Type of

network

Range of

network

Cost of

network

devices

Terrestrial

difficultiesAvailability

Quality of

signal

Cyber

security

Design issues for a smart meter system

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Maintenance

Communication networkNetwork failures Smart meter Base sever

Maintenance issues for a smart meter

Challenges with data transfer for a smart meter system

Data

Variables

Required

Quantity of

information

Who can

accessModulation

Extent of information

one can accessEncryption Decryption

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AMI AND METER DATA

MANAGEMENT

MDM - is a system that performs long term data

storage and management of the large amount of

data being delivered by the smart metering

systems.

BENEFITS OF MDM

Customer Management

Asset Management

Energy Management

ENERGY EFFICIENCY, DEMAND

RESPONSE, AND LOAD CONTROL

Energy efficiency is using energy in a smarter,

optimized way, which in the end leads to less

energy being wasted

Current State

Consumer Data Operations:

Demand Response:

Non-Utility Solutions for Energy Management:

Electricity aggregation:

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Market Fragmentation

Lack of Vision for Demand Response:

Electricity Pricing and Uncertainty:

Software Applications

Optimization Trends

Future Goals and Capabilities.

Understanding / Influencing Customer Behavior

Planning, Operations, and Integration

Measurement / Analytics

Automated Optimization

Storage

Market Dynamics

Electric Vehicles

EFFICIENCY, RELIABILITY,

SECURITY, AND STABILITY OF THE

GRID.

Important issues regarding grid efficiency, reliability, security, and stability include the following :

Next generation operation al tools

New, high - speed communications networks

Advanced voltage control with DR, storage, and other components

Large - scale system modeling and analysis for real - time operations and planning

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Advanced protection schemes that extend

current special protection systems (SPS)

Distributed intelligence for increased control

actions downstream of the control

center DR being used for system reliability and

security Workforce issues, including retirements

and operator training.

Future Goals and Capabilities for an Efficient,

Reliable, Secure, and Stable Smart Grid

New Technologies

System Operation

Cyber Security

Non-Technical Qualities.

AMI TIME-BASED RATE PROGRAMS

Flat Rates

Tiered Rates

Time-of-use pricing (TOU)

Real-time pricing (RTP)

Variable Peak Pricing (VPP)

Critical peak pricing (CPP)

Critical peak rebates (CPR)

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AMI SECURITY

Means to Prevent;

Reputational Loss

Business Attack

Safety

Assets

Short-term Denial or Disruption of Service

Long-term Denial or Disruption of Service

Hijacking control of neighbor's equipment

Physical and logical tampering

Cause automated system to waste resources on false alarms.

Hijacking services

AMI Security System Requirements

Confidentiality and Privacy

Integrity

Availability

Identification (FID)

Authentication

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ADVANCED METERING

INFRASTRUCTURE (AMI) MARKET

Geographic Distribution of Smart Meters in Europe

0

1,000

2,000

3,000

4,000

5,000

6,000

Italy Sweden France Finland UK Germany

Millions of

Dollars (U.S.)

Countries

Estimated Investment Dollars Spent to 2012

Projected Investment Expected; 2020

Current Estimated AMI Investments vs. Projected AMI Investment by 2020

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AMI and Smart Grid Projects; European Union

0

20

40

60

80

100

120

140

160

Smart Meters

in Millions

European Smart Meters: 2010-2020

Estimated Meters in 2010

Estimated Meters by 2020

Smart Meter Comparison in Europe; 2010 and 2020

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Asia-Pacific (APAC)

South Korea and Japan are the next big hot spots after

China.

North America (NA)

The stimulus funding has dried up. Unit shipments will

decline as project focus is moving toward smaller utilities

and supplying services to existing meters.

South America (SA).

Minimizing non-technical losses is the key driver in this

market

Middle East and Africa (MEA)

The MEA market is still at a very early stage of

development with exception of Dubai.

Current percentage of population with access to power in African

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Smart Meter projects funded by ARRA (American

Recovery and Reinvestment Act of 2009)

State Awardee Performance

City

Total Awarded Total Outlaid Award Date

(Month-Year)

CA LOS ANGELES,

CITY OF

LOS ANGELES

(CCD)

$60,280,000 $2,847,566 December-09

DC NARUCO WASHINGTON $14,000,000 $1,828,507 June-10

IN INDIANAPOLIS

POWER &

LIGHT CO

INDIANAPOLIS $20,000,000 $12,569,942 April-10

IN MIDWEST

INDEPENDENT

TRANSMISSIO

N SYSTEM

OPERATOR,

INC.

CARMEL $17,271,738 $2,474,618 March-10

IL NAVIGANT

CONSULTING,

INC.

CHICAGO $30 $30 January-11

MI THE DETROIT

EDISON

COMPANY

DETROIT $4,995,271 $144,777 January-10

NV NV ENERGY,

INC.

LAS VEGAS $138,877,906 $68,593,808 December-09

COMPANIES WORKING ON AMI IN

THE UNITED STATES

General Electric Corporation (www.ge.com) Atlanta, Georgia

Google Inc. (www.google.com) Mountain View, California

Cisco (www.cisco.com) San Jose, California

Southern California Edison (www.sce.com) Rosemead, CA

Baltimore Gas and Electric Company (www.bge.com)

Baltimore, Maryland

Centerpoint Energy (www.centerpointenergy.com) Houston,

Texas

Austin Energy (www.austinenergy.com) Austin, Texas

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Duke Energy (www.duke-energy.com) Charlotte, North

Carolina

American Electric Power Company (www.aepohio.com)

Columbus, Ohio

Exelon Corporation, PECO Energy (www.peco.com)

Chicago, Illinois

Pacific Gas and Electric (www.pge.com) San Francisco,

California

Philadelphia Energy Company (www.peco.com)

Philadelphia, Pennsylvania

First Energy Company (www.firstenergycorp.com) Akron,

Ohio

Florida Power Company Group (www.fpl.com) Miami,

Florida

Electric Power Research Institute (EPRI) (www.epri.com), Palo Alto, California

Silver Spring Networks (www.silverspringnet.com) Redwood City, California

CURRENT Communications (www.current.net) Germantown, Massachusetts

Gridpoint (www.gridpoint.com) Washington, D.C.

SmartSynch (www.smartsynch.com) Jackson, Mississippi

Hunt Technologies (www.hunttechnologies.com) Pequot Lakes, Minnesota

Landis+GYR (www.landisgyr.com) Zug, Switzerland

Itron (www.itron.com) Liberty Lake, Washington

Southern Company (www.southerncompa ny.com) Atlanta, Georgia

IBM (www.ibm.com) Armonk, New York

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Echelon Corporation (www. echelon.com) San Jose, California

BPL Global (www.bpglobal.net) Pittsburgh, PA

Comverge (www.comverge.com) East Hanover, New Jersey

EnerNoc (www.enernoc.com) Boston, Massachussetts

Sensus Metering (www.sensus.com) Raleigh, North

Carolina

Elster Metering Company (www.elstermetering.com)

Essen, Germany

PUBLIC INSTITUTIONS WORKING ON AMI

TECHNOLOGIES

Department of Energy (DOE) & Energy Information Administration (EIA) (www.doe.gov)

The Federal Smart Grid Task Force (www.energy.gov)

Federal Energy Regulatory Commission (FERC) (www.ferc.gov)

The Gridwise Alliance (www.gridwise.org)

The Gridwise Architecture Council (www.gridwisec.org)

Institute of Electrical and Electronic Engineers (IEEE)(www.ieee.org)

The North American Electric Reliability Council (NERC)(www.nerc.com)

The Edison Electric Institute (EEI) (www.eei.org)

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The Electric Power Research Institute (EPRI) (www.epri.com)

National Energy Technology Laboratory (NETL)

(www.netl.doe.gov)

International Energy Agency (IEA) (www.iea.org)

National Institute of Standards and Technology (www.nist.gov)

Small Business Innovation Research & Small Business

Technology (www.sbir.gov)

National Science Foundation (www.nsf.gov)

SMART METERS DEVELOPMENT /

DEPLOYMENT

Installed Smart Meters 2013

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Expected Smart Meter Deployment by State by 2015

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CHALLENGES DURING DEPLOYMENT OF

AMI

Consumer Privacy.

AMI Cost Recovery.

Communication Architecture

Who will deploy the Meters

Which deployment tools to use?

Use smart technology.

Customer satisfaction

Safety

Scheduling and assigning orders

Tracking progress

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Post-deployment maintenance

Security

Cyber Security and Privacy

Managing change.

Addressing consumer concerns.

New value paradigms.

Strategic outreach.

CONSUMER REPORTED CONCERNS ON AMI

Safety Concerns

Privacy and Cyber Security

Health

CONCLUSION

If fully implemented, AMI technology will be a major breakthrough

in preserving energy and minimizing consumer complains about

high energy bills.

For the deployment process to be successful, the utility companies

will have to educate consumers about the benefits of AMI.

Cyber security and privacy issues are other challenges that are very

vital for the utility companies to solve if they want the deployment

process to be a success.

Privacy is the one challenge that can make this new technology fail.

Consumers need to feel secure that their information cannot be

hacked.

Utility companies also have to address the already reported concerns

from their consumers and try and fix those concerns in the early

stages of deployment.