Traditionally, commercial and residential energy consumption data has served the sole purpose of allowing the utility company to bill customers. The data was collected manually from meters, with technicians visiting each site monthly, or in some cases, annually. The process was labor intensive, which made it more expensive for the utility and the consumer. Manual data collection also led to errors with meters sometimes being overlooked altogether. However, advancements in automatic meter reading (AMR) technology gave companies the ability to automate the collection of consumption data. This new method of data collection and analysis resulted in lower operational costs and fewer errors. But as the energy market evolved and the value of frequent and accurate consumption data grew, monthly readings just weren't enough.

What Makes This Meter so "Smart"

Conventional AMR systems give utilities the ability to collect monthly billing data from electricity, gas and water meters remotely and automatically via several different communications media including wireless, power line carrier, telephone, etc. Advanced Metering Infrastructure (AMI) technology and smart meters provide utilities with timely and granular data from all meter customers remotely and then apply that data to improve reliability and efficiency, expand customer choices, and create new rates and programs. These technologies offer water and energy utilities similar functionality with interval data collection to build customer load profiles to define who is using how much and when. A smart metering system should also have integrated demand response and load control capability enabled by an open-architecture communication standard in all meters. This gives the meter the ability to connect with smart thermostats, smart appliances, in-home displays, and load control switches for conservation, data presentation and energy management purposes.

Smart Meters, M2M and Cellular Technology

Providing customers with all the benefits of an AMI deployment will require more than intelligent meters and smart sensors alone can offer. System devices will need the ability to communicate machine-to-machine or M2M. M2M technology supports wired or wireless communication between devices. Almost any network can accommodate M2M applications but, while fixed-line networks were once the only viable solution for monitoring fixed assets, wireless networks are now being utilized, too. Wireless technologies like CDMA have become increasingly more robust and cost effective, and are now becoming the technology of choice for utility companies in North America for AMI deployment.

According to one market report, "Growth in the wireless M2M market is accelerating. Shipments of wireless M2M devices in North America reached an estimated record level of 5.3 million units in 2006. Growing at a compound average annual growth rate of 27.3 percent, the market size is expected to reach 22.6 million units by 2011." The report went on to note that two vertical market segments during this period stand out as those with the most potential for wireless M2M: utility meters and motor vehicles. Shipments of cellular capable energy meters are expected to accelerate at the end of the period with large scale deployments of AMI driving the demand.

Wireless versus Fixed-line Networks

Real-time, 2-way data collection capabilities are inherent to the success of any AMI grid deployment and there are differing views on which communications solution is best. Some within the industry argue that while an integrated wireless system (two or more discrete wireless platforms combined) can be cheaply and easily installed, broadband over powerline (BPL) is a better way to solve Smart Grid communications problems. However, BPL has its own myriad problems, not the least of which is system unavailability during blackouts and disasters. That fatal flaw alone is enough to warrant using wireless systems, instead of BPL, to build the communications backbone of a Smart Grid. But, there are other benefits to going wireless. Line crews, equipped with wireless capability repair trucks, would be able to communicate directly with substations and meters, eliminating the need to communicate with a central office. Utilizing cellular networks, a utility will be able to fix problems faster at a reduced cost, while providing improved customer service and satisfaction. Superior, reliable service, through M2M applications, makes cellular the premier enabling technology for the AMI powered Smart Grid of tomorrow.