Technical and governance considerations for advanced metering infrastructure/smart meters: Technology, security, uncertainty, costs, benefits, and risks
2013
McHenry, Mark P.
The fundamental role of policymakers when considering Advanced Metering Infrastructure (AMI), or ‘smart meters for energy and water infrastructure is to investigate a broad range of complex interrelated issues. These include alternative technical and non-technical options and deployment needs, the cost and benefits of the infrastructure (risks and mitigation measures), and the impact of a number of stakeholders: consumers, distributors, retailers, competitive market operators, competing technology companies, etc. The scale and number of potential variables in the AMI space is an almost unprecedented challenge to policymakers, with the anticipation of new ancillary products and services, associated market contestability, related regulatory and policy amendments, and the adequacy of consumer protection, education, and safety considerations requiring utmost due-diligence. Embarking on AMI investment entails significant technical, implementation, and strategic risk for governments and administering bodies, and an active effort is required to ensure AMI governance and planning maximises the potential benefits, and minimise uncertainties, costs, and risks to stakeholders. This work seeks to clarify AMI fundamentals and discusses the technical and related governance considerations from a dispassionate perspective, yet acknowledges many stakeholders tend to dichotomise debate, and obfuscate both advantages and benefits, and the converse.
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