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There Can Be No Smart Grids without Smart Metering
AMM systems will offer utilities the ability to take meter readings in Improved outage management can be based on concrete meter data
near-realtime. Readings will be based on software and applications and investment decisions based on actual usage and load data. AMM
instead of hardware and will be able to process huge amounts of data. provides the data to enable smart operational processes. This will
become even more important as the electricity system is extended into
Information Management the home, in the form of home automation, and to vehicles. All of
If the smart grid is going to be information- rather than hardware- these processes rely on the realtime measurement of electricity flowing
based, it is essential that the information flow down to those segments into and out of the grid, and the communication of those data.
of the system that have thus far been ‘out of the loop’: the distribution
grid and the end consumers. Bi-directional communication between What Makes the Grid Smart?
the utility and the end consumer is the basis of DSM. In order for DSM It is not only the multidirectional electricity flows from micro-
to be effective, realtime pricing must be implemented. A consumer can generation, electric vehicles, renewable energies and traditional large-
only shift his or her usage if there are incentives to do so, such as time- scale centralised generation that will allow one to achieve an efficient,
of-use tariffs, and these are communicated in realtime. sustainable and secure supply of electricity, but the supervision of
those flows. Data flow among the  ‘prosumers’ (those that both
Moreover, it is essential that the end consumer be able to monitor his consume and produce power), system operators, technology and
or her energy use. This is best accomplished through realtime delivery application and service providers is the heart of the smart grid. Only
of feedback through a local or  ‘in-home’ display. Direct feedback is through visualisation of the multidirectional electricity flows can one
often quoted as achieving energy savings in the range of 5–15%. become fully aware of the consequences of one’s actions, whether it
Recent reports from energy consulting firms and think-tanks estimate be production, consumption or both. AMM is the enabler both to the
that widespread use of demand-side response measures could produce actual smart grid and for the environmental and energy policy goals
202TWh of energy savings in the EU annually – the combined annual the smart grid allows for.
residential consumption of Germany and Spain. Furthermore, demand-
side response could save the EU 100 million tons of CO
2
per annum Now Is the Time to Build Smart Grid Foundations
and achieve 20–50% of the energy efficiency and CO
2
reduction The recent passage of the 3rd EU Energy Package, with the intention
targets by 2020. of rolling out smart metering across the EU by 2022 (with 80%
coverage by 2020), is a good start – but it is only a start. If we are going
Enabling Intelligent Network Management to get anywhere close to realising the smart grid in the foreseeable
Network management on the smart grid is also dependent on future, let alone to achieve the EU’s 20–20–20 goals, we must start
information being at the right place at the right time. Right now, a building the foundation now. The smart metering industry is doing its
distribution system operator is  ‘blind’.  The operator  must keep the part by working on standards and providing interoperable products,
system in balance but has no information on where the electricity goes. but the time has come for the other stakeholders (politicians, the
When there is a power outage, it is usually a telephone call from a energy industry, consumer groups and regulators) to take the
customer who has  lost power that provides the first information. decision to make smart metering a reality across Europe. n
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