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Switching on India’s Smart Electricity Future


  1. The article is discussing a future where smart electricity meters provide consumers with information and advice on their electricity usage. Specifically, it highlights India’s current initiative to replace conventional electric meters with prepaid smart meters, with a target of replacing 250 million meters by 2025-26.
  2. The article also mentions that the initiative is being supported by a results-linked grant-cum-financing of the government to help power distribution companies (discoms) become financially sound and efficient in delivering better services to consumers. However, despite these efforts, there are still challenges that need to be addressed for the initiative to be successful.

Switching on India’s Smart Electricity Future Background

What is the Smart Meter National Programme?

  1. The Smart Meter National Programme is an initiative by the Government to deploy smart meters across the country.
  2. The programme aims to enhance consumer convenience and rationalize electricity consumption.

Smart Meters:

  1. Smart meters are advanced meter devices that have the capacity to collect information about energy, water, and gas usage at various intervals.
  2. The data is transmitted through fixed communication networks to the utility and can also receive information like pricing signals from the utility and convey it to consumers.

Deployment of Smart Meters:

  1. Under the Smart Meter National Programme, a total of 12,06,435 smart meters have been installed till date.
  2. The deployment of smart meters is expected to increase in the coming years, as India aims to transform its energy mix with innovation.

Benefits of Smart Meters:

  1. One of the key benefits of smart meters is the reduction of Aggregate Technical and Commercial (AT&C) losses.
  2. India aims to reduce AT&C losses to below 12% by 2023 and below 10% by 2027.
  3. Smart meters minimize human intervention in metering, billing, and collection, and help reduce theft by identifying loss pockets.

Smart Meters and Smart Grid:

  1. Smart meters are a crucial component of the Smart Grid.
  2. The Smart Grid includes the creation of Advanced Metering Infrastructure (AMI), which describes the whole infrastructure from smart meter to a two-way communication network to control center equipment and applications that enable the gathering and transfer of energy usage information in near real-time.
  3. The implementation of smart meters will enable the creation of a more efficient and reliable energy system.


Operational Benefits: Smart meters provide several operational benefits, such as:

  1. Incentivizing energy conservation by detecting data-entry errors and billing efficiencies.
  2. Reducing the costs of manual meter reading through a web-based monitoring system.
  3. Smart meters can switch to a prepaid mode, eliminating the need for postpaid billing.

Benefits to Customers:

  1. Enhancing consumer satisfaction through better complaint management, system stability, reliability, and transparency.
  2. Time of Day (ToD) tariff feature, which allows consumers to reschedule electricity usage to off-peak hours, resulting in a significant reduction in the bill amount.


High Capital Costs:

  1. The full-scale deployment of smart meters requires significant expenditures on hardware and software components, network infrastructure, network management software, installation, and maintenance of information technology systems.
  2. The cost can be a significant challenge for utilities, especially in countries with a large customer base.


  1. Smart meters are a complex system of technologies that must be integrated with utilities’ information technology systems. This includes Customer Information Systems (CIS), Geographical Information Systems (GIS), Outage Management Systems (OMS), Mobile Workforce Management (MWM), Distribution Automation System (DAS), and other such systems.
  2. Integration can be a challenge, and requires careful planning and execution to ensure the systems work together seamlessly.


  1. Interoperability standards need to be defined for smart meters to ensure uniform requirements for technology, deployment, and general operations.
  2. The lack of standardization can lead to interoperability issues, making it difficult for utilities to integrate smart meters with other systems.

Release of Radiation:

  1. Smart meters allow communication between the consumer and the meter, which may lead to a release of radiation.
  2. This has been a concern for some consumers and has led to debates on the safety of smart meters.
  3. While studies have shown that the radiation levels are within safe limits, the perception of risk remains a challenge for utilities.