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Comprehensive Smart Meter Solution Based on Advanced Metering Infrastructure (AMI) and Application Prospects

I. Solution Overview: Concept and Development of Smart Meters

The concept of smart meters is not entirely new; it emerged as early as the 1990s. Initially constrained by high costs (in 1993, their price was 10–20 times that of electromechanical meters), they were primarily used for large industrial and commercial customers.

With the rapid advancement of communication technologies, the number of smart meters with remote communication capabilities has surged, creating an urgent need for new meter reading and data management systems. Early systems could open metering data to systems like distribution automation but failed to achieve effective and in-depth utilization of the data. Meanwhile, real-time energy consumption data generated by prepayment meters was not fully leveraged for energy management and energy-saving applications. This solution aims to build an Advanced Metering Infrastructure (AMI) centered on smart meters to thoroughly address these issues and unlock the tremendous potential of data.

 II.Core Positioning: The Foundational Role of Smart Meters in the Smart Grid

According to functional classifications by international authoritative institutions (e.g., the Energy Services Network Association ESNA in the Netherlands), the establishment of smart meters and AMI is an indispensable infrastructure for the smart grid.

The construction of the smart grid can be divided into multiple layers based on functionality and intelligence levels, with the smart metering system serving as a critical foundational support. Its core roles include:

  1. Fundamental Data Source: Provides the data foundation for automated grid operation, energy efficiency improvement, and cost control, relying on the perfection of Automatic Meter Reading (AMR) and AMI.
  2. Two-Way Interaction Bridge: Enables two-way metering and communication between grid companies and users through a highly secure network architecture, serving as a prerequisite for distributed energy integration and flexible pricing mechanisms.
  3. Core of Smart Homes: The development of smart homes is based on the application of smart meters, which act as the central hub for home energy efficiency management.
  4. Tool for Grid Optimization: Leverages advanced data collection and demand response capabilities to collaborate with users in peak shaving and load leveling, significantly enhancing grid security and economic efficiency.

 III.Comprehensive Functional Applications (14 Core Functions)

The smart meter system in this solution offers the following 14 core functions to comprehensively meet the needs of all stakeholders:

Functional Category

Specific Applications and Value

1. Billing and Settlement

Enables accurate, real-time billing and simplifies processes; supports flexible switching of energy retailers for users; provides precise and timely energy consumption and billing information.

2. Distribution State Estimation

Obtains accurate load and grid loss information through massive user-side measurement nodes, prevents equipment overload, enables estimation of unknown grid states and data verification, and addresses inaccuracies in traditional distribution power flow information.

3. Power Quality and Reliability Monitoring

Monitors power quality in real time, responds accurately and quickly to user complaints, and prevents potential issues, compensating for the lack of real-time effectiveness in traditional methods.

4. Load Analysis, Modeling, and Forecasting

Utilizes multi-energy data (e.g., water, gas, heat) for analysis and forecasting, estimates total energy consumption and peak demand, and provides data support for user energy savings, retailer strategies, and grid planning and dispatch optimization.

5. Demand Response

Guides user electricity consumption behavior through price signals such as time-of-use pricing, real-time pricing, and emergency peak pricing, or direct load control by dispatchers to smooth grid peaks and valleys.

6. Energy Efficiency Monitoring and Management

Feeds energy consumption information back to users to encourage energy savings or changes in usage patterns; provides optimal generation/consumption solutions for users with distributed generation to maximize benefits.

7. User Energy Management

Builds a User Energy Management System (UEMS) based on smart meters, offering customized services for different users to minimize energy consumption and carbon emissions while meeting environmental control needs.

8. Energy Conservation

Provides real-time data to prompt users to adjust electricity usage habits; promptly detects abnormal energy consumption caused by equipment failures; lays the technical foundation for utilities to develop new services (e.g., diverse pricing packages).

9. Smart Home

Serves as a home energy gateway, connecting and controlling heating, alarm, lighting, ventilation, and other systems to enable home automation and remote control of appliances.

10. Preventive Maintenance and Fault Analysis

Uses meter measurement functions to detect voltage distortion, harmonics, and other phenomena, enabling preventive maintenance for grid components, meters, and user equipment, and assisting in fault analysis.

11. Prepayment

Offers prepayment services that are lower-cost, more flexible, and user-friendly compared to traditional methods.

12. Meter Management

Covers full lifecycle management of meter assets, maintenance of information databases, regular inspections, ensuring proper installation and operation, and confirming the accuracy of location and user information.

13. Remote Load Control

Supports dispatch departments in remotely connecting/disconnecting loads entirely or partially; users can also remotely manage specific loads via controllable switches.

14. Illegal Usage Detection

Detects events such as meter box tampering and wiring changes, providing timely warnings of theft; in high-risk areas, quickly locates anomalies by comparing data from master and sub-meters.

 IV.Multidimensional Benefit Analysis

The implementation of this solution will bring significant benefits to all stakeholders:

  • Energy Users: Receive more accurate and timely billing information; benefit from participating in demand response; gain access to energy consumption feedback and automation systems; enjoy better power quality and higher security.
  • Utilities: Obtain a simple and efficient integrated solution supporting metering, settlement, customer service, distribution monitoring (state estimation, fault management, power quality, power flow), and load management.
  • Electricity Market: Promotes the emergence of new retail products based on distributed energy, enhancing market price flexibility, competitiveness, and reliability; reduces extreme price peaks and supplier risks; helps retailers accurately understand customer needs through data mining.
  • Society and Environment: Significantly improves overall energy efficiency. Timely feedback on energy consumption data enables all participants to react quickly and focus on the most efficient energy-saving measures, contributing to societal energy conservation and environmental protection.
  • Multi-Energy Applications: Provides communication and power supply for water, gas, heat, and other meters; shares communication channels to reduce costs; aggregates multi-energy data to enhance overall energy utilization efficiency.

 V.Conclusion and Outlook

This smart meter solution, centered on the Advanced Metering Infrastructure (AMI), not only addresses the pain points of traditional meter reading and data management but also elevates smart meters from mere metering tools to multidimensional data hubs and interaction nodes for the grid, market, users, and homes. By fully unleashing the value of its 14 core functions, we are committed to building a secure, economical, efficient, and interactive future energy ecosystem for our customers, ultimately achieving the grand goal of multi-stakeholder win-win outcomes.

 

09/03/2025
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