Smart Meter National Programme

Context:

Kerala’s move towards an alternate model for the rollout of smart electricity meters, effectively jettisoning the Centre’s Rs 3 lakh crore smart meters project, comes as a spanner in the works for the Union Government scheme.

Relevance:

GS II: Government Policies and Interventions

Dimensions of the Article:

1. What is a Smart Meter?
2. About Smart Meter National Programme (SMNP)
3. Significance and Benefits of Smart Meters

What is a Smart Meter?

• A smart meter is an advanced metering device used for recording the consumption of electricity and measuring voltage levels.
• Unlike traditional meters that record consumption manually, smart meters transmit consumption data at regular intervals, typically every 15 minutes or hourly, to utility providers.
• Smart meters are internet-enabled devices that allow for two-way communication between consumers and utility providers, enabling real-time monitoring of energy consumption, accurate billing, and enhanced operational efficiency.

About Smart Meter National Programme (SMNP):

• The Smart Meter National Programme (SMNP) is an initiative by the government of India aimed at promoting the adoption and installation of smart meters across the country to improve the billing and collection efficiencies of distribution companies (DISCOMs).
• The programme aims to replace 25 crore conventional meters with smart meters in India, thereby facilitating the transition to a modern, efficient, and digitally enabled power distribution system.
• The implementation of the SMNP is entrusted to Energy Efficiency Services Limited (EESL), a joint venture of four National Public Sector Enterprises: NTPC Limited, PFC, REC, and POWERGRID, established under the Ministry of Power.
• The roll-out of smart meters under the SMNP is based on the Build-Own-Operate-Transfer (BOOT) model, wherein EESL bears all the capital and operational expenditure, with zero upfront investment required from states and utilities.
• EESL recovers the cost of smart meters through the monetization of energy savings, resulting from enhanced billing accuracy, avoided meter reading costs, and other operational efficiencies, thereby ensuring a sustainable and self-financing model for the programme.
• The installation of smart meters is carried out in accordance with the guidelines issued by the Central Electricity Authority (CEA), ensuring compliance with technical standards and interoperability requirements.

Significance and Benefits of Smart Meters:

• Enhanced Consumer Engagement: Smart meters empower consumers with real-time access to their energy consumption data, enabling them to make informed decisions, optimize energy usage, and reduce electricity bills.
• Operational Efficiency and Demand Management: For utilities, smart meters offer valuable insights into consumption patterns, facilitating better demand forecasting, load management, and grid optimization, thereby enhancing operational efficiency and reliability of power supply.
• Reduction of Commercial Losses: The integration of smart meters with web-based monitoring systems enables utilities to detect and address electricity theft, meter tampering, and other commercial losses promptly, thereby safeguarding revenue streams and promoting financial sustainability.
• Enabler of Power Sector Reforms: Smart meters serve as a cornerstone for power sector reforms by promoting transparency, accountability, and efficiency in the power distribution system, fostering innovation, attracting investments, and driving digital transformation across the power value chain.

-Source:  Indian Express