Introduction
On a continuous basis, utilities are challenged to meet the growth of peak energy demands, soaring costs, along with managing the operational risks of resource location combined with unprecedented environmental constraints. Since 1990, electricity demand has increased approximately 25 percent in the United States. Simultaneously, transmission construction has dropped by almost one-third. Losses in the U.S. economy due to power outages and power quality disturbances are estimated to be between $119 billion and $188 billion annually1.

The Department of Energy estimates that over 280 gigawatts of new generating capacity will be needed by 2025. To meet this projected capacity, 937 new 300-megawatt power plants would need to be built which are not currently planned. The need for new plants, maintaining overburdened infrastructure, coping with an aging workforce, complying with regulations, and environmental concerns are the critical issues facing the energy industry today.

Since its inception, the energy industry has rightfully focused on the supply side of this challenge, but sophisticated technologies such as wireless mesh networking now exist, which can significantly impact the demand side of the equation. When used as the backbone of an Advanced Metering Infrastructure (AMI) solution, wireless mesh networking enables two-way intelligent networked communications with smart meters that enables command and control for value added services like demand response and demand side management, besides meter reading. Interoperable networks and systems across the entire power infrastructure aid in the management and control of energy consumption, improve operations management, conserve the environment, and adhere to evolving regulations.

The potential of Smart Grid and its market benefits are essential for achieving energy efficiency and maintaining the competitive state of utility services. Data collection, monitoring and control, data analysis and information communication infrastructure enables Smart Grid solutions that cost-effectively protect revenues today, while laying the foundations for future services.

Improving Energy Efficiency
Smart AMI Networks are the building blocks for an efficient and interoperable Smart Grid, delivering valuable grid information for better energy-management decisions by utilities. With Smart AMI Networks, utilities can analyze frequent interval data to offer time-based rates and demand management programs, which allow them to deal with ever increasing demand and stretched system capacities. When offered these energy alternatives, consumers become aware of their own carbon footprints and are eager to participate in energy efficiency and conservation programs.

A long list of benefits emerge when utilities leverage interoperable network solutions to monitor the grid and automate distribution system equipment. For instance, AMI networks can identify chronically overloaded or underutilized assets, so utilities can upgrade where needed and redeploy as necessary. The ability of such networks to assist in data tracking and analysis of usage patterns opens the door to sustainable generation and procurement programs that directly boost utility profits.

Likewise, AMI network solutions permit early detection of outages before they spread and help to identify system balancing needs and power-quality problems such as voltage sags or spikes. They also assist in identifying and prioritizing asset management initiatives while improving overall workforce efficiencies. The asset monitoring, energy management and diagnostic capabilities of Smart AMI networks, when combined with innovative customer services, lead to the primary goal of a Smart Grid - a robust, self-healing energy infrastructure.

Regulatory Compliance With Economic Gains
Smart Grid policies, tax-incentives, and legislation continue to drive deployment of AMI Network solutions independent of economic justifications. Regulators have many good reasons for directing utility actions, including fairness, customer value, and quality of service.

The energy act of 2007 is a policy statement motivated by the broad interests of America as a whole. The act makes it official policy of the nation to encourage time-based pricing and other forms of demand response. To that end, state utility commissions are mandated to consider implementation of time-based rates and advanced metering solutions.

Not surprisingly, there is increased interest in demand response programs that could cut peak loads and reduce the need for peaking capacity. Many utilities, without any regulatory imperative, will continue deploying AMI Network systems simply because they reduce costs and improve the quality of service to consumers. The recent flood of advanced metering proposals across all utility segments is a direct testament to this positive trend.

Regulated utilities in California are preparing to deploy large scale AMI networks with full realization of costs and benefits as shown in Figure 1. This data was compiled and published by the California Energy Commission in the “Meter Scoping Study” report. The analysis includes four different perspectives in addressing the cost/benefit equation from least cost and savings to profitability and as a competitive enabler for future services.

The discrete benefits, depicted in Figure 1, provide additional opportunities beyond the meter with integration of new found ‘data’ that flows across all utility functions as shown in Figure 2.

New cost savings result by eliminating the need for expensive and duplicated or parallel sources between operating units to deliver existing and new services. Even the low-benefit level provides a net reduction per month in system costs, regardless of the contract term, as per the study.

This revealing study and the regulatory initiative by California is an aggressive and innovative step, seeking to promote customer awareness of peak load periods and positively influencing their response to peak-sensitive pricing, thus reducing the recurring likelihood of the rolling blackouts of year 2000. It is policy, developed in a consensus process with legislators, utilities, regulators, businesses, and consumer advocates, that is driving this effort forward. However, there is more than just policy pushing Smart Grid initiatives into overdrive.

Foundations of Smart AMI
The Meter Scoping Study illustrates the value and potential of Smart AMI Networks – a solution that benefits the consumer, the environment, and the power grid. Strategic commitment and investments in smart meter networks are needed now to enable the Smart Grid. With AMI technology, utilities will be prepared for a new way of improving their businesses tomorrow.

In meeting these challenges, Smart AMI Networks have emerged as the solution of choice across all utilities. Proven in implementations around the world, smart networks are an integrated AMI solution that includes all the hardware, software, and tools needed to quickly and economically deploy an advanced metering platform. Smart network solutions employing an intelligent wireless mesh technology offer significant economic and technological advantages for advanced metering and energy infrastructure automation applications. They are cost-effective and scale by design from thousands to hundreds of thousands of endpoints without intervention, hierarchy or complexity.

Interoperable architectures deliver the benefits of Smart AMI Networks. Built on a “system of systems” approach, Smart AMI Networks integrate and interoperate across Home Area Networks (HAN), Wide Area Networks (WANs), and Enterprise Networks. Each of these networks operates independently within its functional environments and still delivers end-to-end interoperability with open standards and technology.

End-to-end interoperability is achieved across three distinct levels – Services, Applications, and Networks. Services are end to end in nature and touch multiple systems. For, example although HAN services interact with devices in the home, they may still need data from the AMI network and from Enterprise Networks both utility owned and/or third party networks. Applications are specific programs within a service domain. In the case of HAN, Demand Response, Load Control, Plug-In-Hybrids, etc. are specific applications. Likewise, meter data related applications fall under the AMI service domain. Interoperability across networks is achieved at the ‘cloud’ level.

The Common Information Model (CIM) framework is the guiding principle across systems within an AMI network. ZigBee/HomePlug Smart Energy Profile is the emerging standard in the HAN. WAN technologies are very mature and sophisticated to accommodate universal IP across multiple media technologies. At the enterprise level, SOAP, XML, Web Services and MultiSpeak are being deployed. Transmission & Distribution, Distributed Automation and Substation Automation systems will also be integrated for interoperability as the Smart Grid matures. Network Management interoperability is also achieved at multiple levels across the various networks through open standards and application level management data. Interoperability standards also support the future application layering necessary to serve evolving utility and customer needs.

The Smart AMI Network Solution
With ongoing advances in communications, cost-effective smart networking is the key driver for expanded AMI deployment throughout utilities. But technology is only an enabler; the true value of AMI lies in its abilities to improve a utility’s operations, forecasting, and demand management while simultaneously providing alternatives to consumers in managing energy usage and budgets.

Smart AMI Networks expand the technology of electrical grids by adding components such as self-managing and self-healing mesh networking, intelligent meters, and bridging to Home Area Networks (HAN) for connectivity with energy consuming appliances. Smart meters communicate in near real-time with the utility, providing detailed usage data while also receiving and displaying Time-Of-Use (TOU) pricing information, and offering other on-demand abilities such as remote connect/disconnect, unrestricted monitoring and control, etc. These capabilities provide customers with the precise data needed for tailoring consumption and minimizing energy expenses while helping balance overall network demand.

Utilities value Smart AMI Network solutions as an avenue to forecast and manage energy usage during peak demand periods and also as an essential tool in maximizing operational efficiencies to boost bottom line performance with its:

• Low cost of management and maintenance - Smart AMI Networks are self-organizing and require no manual address/route/channel assignments. It is simple to manage thousands or millions of devices resulting in the lowest total cost of ownership.

• Scalability, flexibility and lower costs - Smart AMI Networks are self-organizing and allow true scalability. Nodes and Gateways are easily added at a very low cost with:

• No limitation on number of hops
• No network address configuration
• No managed hierarchical architecture
• No hard limitation on number of Nodes per Gateway

• Near real-time network means speed and efficiency – Smart AMI Networks enable on-demand data reads, outage notifications, and other applications. In addition, the technology supports automated “over-the-air” firmware upgrades that are self-spreading to increase efficiency and dramatically lower operations costs.

• Robust security - All communications in a Smart AMI Network are protected by mutual device authentication and derived per-session keys using high bit rate AES encryption. This hardened security approach allows for authentication as well as confidentiality and integrity protection in each communication exchange between every pair of network devices – Smart meters, Relays, or Wireless Gateways.

• Open Systems and standards-compliant network – Smart AMI Networks support industry standards, which offer expanded capabilities, simplified management and enhanced security. Compliance with open systems standards gives users interoperability, better performance, and more flexibility, both now and in the future.

Customer Benefits
Regulated utilities traditionally operate as monopolies with an “obligation to serve” for the benefit of shareholders and customers. Smart AMI Network solutions generate significant financial benefits and have the power to enhance customer satisfaction to new levels.

Multiple demand response and utility operations initiatives can be met with a Smart AMI Network’s capabilities to:

• Integrate water, gas and electric meters into one intelligent, bi-directional smart network
• Perform on-demand reads, deliver software downloads, and perform remote testing
• Remotely control and upgrade smart meter firmware to support network connectivity to/from and management of Home Area Networked appliances
• Broadcast TOU pricing to customers and load management signals to smart appliances through HAN interfaces in support of demand response strategies
• Store selective monthly usage details in smart meters and avoid erroneous trend estimates and inaccurate readings
• Control operations expense by minimizing field calls, truck rolls, and associated expenses
• Use the smart network for distribution automation and distributed generation and control
• Employ open standards protocols to interface with multi-vendor in-home networks
• Support response communications for smart thermostats and load control devices over the Smart AMI Network
• Enable remote connects and disconnects for service order work in transient areas
• Provide customers online access to hourly interval usage and the interactive ability to manage energy related expenses
• Assist in identifying sources of non-technical revenue losses

The most pervasive improvement of a smart meter-based AMI solution is accurate and timely bills, based on interval data. One must also consider the way integrated Smart AMI Network technology can enhance call center operations. With easy access to current and historical data, call center staff will have the information needed to quickly and easily resolve queries with faster and smarter responses. Another example is timely and pro-active notification of outages, a life saving service for millions of senior citizens in the country. Additionally, secure web-based access to energy data, like that planned by utilities, can educate customers about their energy use and help them make better energy decisions.

Summary
The most significant benefit of smart metering network solutions is their ability to assist in the delivery of integrated Smart Grid applications like AMI. AMI technology combined with customer participation allows utilities to use automatic controls to curtail energy use at peak times, reduce customer bills and conserve energy. This process is environmentally friendly, efficient, and reduces the need to build new facilities.

Interoperable Smart Grid systems restore the demand and supply balance while creating efficient energy markets. When it comes to improving resource management, revenue opportunities, and customer service through the use of Smart Grid strategies, Smart AMI Networks provide utilities with numerous ways to help achieve their goals. Engineered to truly enable interoperable infrastructure that delivers the functions and benefits of the Smart Grid by overcoming complex technological challenges – Smart AMI Networks:

• Equip utilities to more effectively manage their increasing infrastructure demands and growth requirements
• Provide the capacity, controls and self-managing architecture to handle the complex and massive data demands for next generation utility services
• Reduce traditional IT management for faster ROI
• Are proven reliable and fuel new services and support evolving standards for customer service.

About the Author
Srini Krishnamurthy is the Vice President for Corporate Development at Eka Systems, a leading provider of communication and networking solutions for the Smart Grid and Smart Meter markets. Srini is a serial entrepreneur and has over twenty-five years of distinguished career in telecommunications, software, and networking with executive positions in business development, marketing, product management and product development. He is known for his thought leadership and technology expertise.

Srini has a patent to his credit and has authored several marketing and technology papers in industry publications. He is an invited speaker in major conferences and trade shows on wireless data networking strategy and solutions. Srini holds an MS in Computer and Information Science and an MS in Electrical Engineering.