Recommendations for AMI Rollout for India with meter
leasing and services model
Rupendra Bhatnagar
General Secretary
[email protected]
India Smart Grid Forum
4th India – EU Smart Grid Workshop _08 March2017
The major milestones in India’s journey
in the field of metering
2016: IS 15959 Part 2
Electromechanical Meters
1999: IS 13779
•Indian Standard for
electronic meter
•Indian Standard for data
exchange protocol of smart
meter
2016: National Tariff Policy
•Reiterates goals of MoP for
deploying smart meters
2011: IS 15959
2015: IS 16444
•Standard for electronic
meters
•Indian Standard for smart
meter
2014: IPDS
2015: UDAY
•Strong push for smart
metering
•35 million smart meters to be
deployed by December 2019
2016: ISGF Services and
Leasing Model
•Innovative busines proposed
by ISGF
2016: AMI Rollout Strategy and
CBA for India
•ISGF publishes White Paper
and submits to MoP and CEA
2016: CEA strategy for AMI
rollout
•CEA announces strategy for
rollout of AMI in India
2016/17: MoP reviewing Key
Projects for approval
Project costs for AMI in India
Project component
Meters
Communication
infrastructure
HES and MDMS
Installation
System integration
O&M
Total
INR
3,800
350
USD
56.5
5.2
80
775
120
1,608
6,733
1.2
11.5
1.8
23.9
100
Source: ISGF. Note: costs per meter assuming installation of 500,000 meters and
O&M for 10 years. Costs are nominal, converted to dollars using average 2016 rates.
Recommendation: Financing models and Roll
Out Scenarios
4
Financing costs and utility requirements
for Indian rollout scenarios
Utility requirements
Total
cost
(INR)
3.3bn
4.4bn
Total
cost
(USD)
50.1m
65.5m
Leasing and
partial EPC
5.2bn
77.3m High
Low
Leasing and
services
5.8bn
86.8m Low
High
Business
model
EPC
Partial EPC
and services
Financial
strength
High
Low
Technical
expertise
High
Low
EPC
2.6
EPC and
services
Leasing and EPC
1.8
2.6
4.4
0.8
Leasing and
services
5.8
Upfront
Source: ISGF. Note: costs per meter assuming installation of 500,000 meters
and O&M for 10 years. Costs are nominal, converted to dollars using average
2016 rates.
0.8
Recurring
Source: Bloomberg New Energy Finance; ISGF. Note: costs are nominal,
converted to dollars using average 2016 rates. Assumes third-party leasing
and service agencies have a hurdle rate of 12.5%. (In INR Billions)
5
Annual India smart meter investment ($m
- nominal), 2017-19e
600
Conservative
Moderate
Aggressive
2017 2018 2019
2017 2018 2019
2017 2018 2019
500
400
300
200
100
0
• Source: Bloomberg New Energy Finance; ISGF. Note: converted from rupees
using average 2016 rate. Cumulative cost of meters installed each month
over the year; does not include monthly payments for the remainder of the
meters life past 2019.
6
Market share of AMI communication
technologies
EMEA
Americas
PLC
Asia-Pacific
124.2
RF Mesh
119.3
Cellular
38.9
RF Star
20.5
WiMAX
3.9
Other
2.2
• Source: Bloomberg New Energy Finance. Note: excludes china. Smart electricity
meters only, data through July 2016.
7
Cumulative smart meter installations
(millions), 2010–20e
114
198
2010 '11
316
'12
415
'13
524 583
'14
EMEA
'15
AMER
674
778
864
951
1,041
'16 '17e '18e '19e '20e
APAC
• Source: Bloomberg New Energy Finance. Note: excludes smart gas meters.
8
Annual smart meter installations
excluding China (millions), 2016–20e
70.5
69.7
73.1
2018e
2019e
2020e
56.6
42.6
2016
2017e
Rest of AMER
US
Rest of EMEA
UK
Italy
France
Rest of APAC
India
Japan
• Source: Bloomberg New Energy Finance. Note: excludes smart gas meters.
9
Annual smart meter investment ($bn nominal), 2010–20e
16.3
17.5 18.1
19.7
12.9
5.5
2010
7.0
'11
8.2
'12
6.8
7.3
8.0
'13
'14
'15
'16
'17e
'18e
'19e
'20e
EMEA
AMER
APAC
• Source: Bloomberg New Energy Finance. Note: excludes smart gas meters.
10
Recommendations
• Adopt meter leasing and services model to overcome
the weak financial position of Utilities
• Appoint a metering services agency
• Common standards and planning
• IS 16444 and IS 15959
• open standards based communication system (Examples
include the Wi-SUN, ZigBee and G3-PLC or PLC Prime
alliances
• Build Internal Capacity and Customer Awareness
• Avoiding Arbitrary requirements in tenders
11
“THANK YOU”