IntelliSmart Infrastructure Pvt Ltd (IntelliSmart), a joint venture between National Investment & Infrastructure Fund (NIIF) and Energy Efficiency Services Ltd (EESL), today has an order book of over 20 million smart electricity meters under the Revamped Distribution Sector Scheme (RDSS), and is now proposing to tap opportunities in the gas metering business. In this exclusive interaction, Anil Rawal, Managing Director & Chief Executive Officer, IntelliSmart Infrastructure Pvt Ltd, speaks about the immense potential of smart metering in the gas distribution segment, whilst sharing IntelliSmart’s achievements in the smart electricity metering segment where it has been setting newer industry benchmarks. An interview by Venugopal Pillai.
Let us start by understanding the current order book position of IntelliSmart with respect to AMI/smart metering. Can we presume that much of this order book is under RDSS?
To give you an overview, IntelliSmart’s current smart metering order book stands at over 2 crore. This includes our recent bid win in Gujarat where we have been given a mandate to install around 24 lakh smart meters. All the projects were secured through competitive bidding under the Revamped Distribution Sector Scheme (RDSS).
Our ongoing projects and future deployments are aligned with the objectives of RDSS, which demonstrates our active role in supporting the government’s vision for a smarter and more efficient energy infrastructure, empowering consumers and discoms alike.
Another important development I would like to highlight here is IntelliSmart’s entry into Smart Gas Meter. We have already executed a pilot project in Assam where we have installed 1000 smart gas meters. This is India’s first smart gas metering project executed on TOTEX mode.
“Smart metering is not just a technological advancement; it is a cornerstone of the future energy system.”
You mentioned IntelliSmart’s entry into smart gas meters; why do you believe smart gas meters are crucial for the future of energy management, especially in a developing market like India?
Smart metering is not just a technological advancement; it is a cornerstone of the future energy system. The government has set a goal to transition to a gas-based economy by raising the share of natural gas in the energy mix from 6 per cent in 2019 to 15 per cent by 2030. The domestic sector will be critical in driving this increase in consumption. Currently, around 1.3 crore connections have been established, but there is still much work to be done to reach more households and achieve the target of 12.6 crore connections by 2032.
Despite the efforts made by City Gas Distribution (CGD) companies, there is a perception that this segment is not yet sufficiently profitable. To address this, we need innovative approaches to enhance profitability. Implementing smart metering on a TOTEX model, similar to what has been done in the power sector, could be a game-changer. This approach would help CGD companies meet their Minimum Work Program (MWP) targets more effectively.
Can you provide insights into the current market size of smart gas meters in India and how you expect it to grow in the coming years?
The market for smart gas meters in India is currently at a nascent stage, but it is showing significant potential for growth. As of now, the penetration of smart meters in India is quite low compared to global standards. However, we expect a substantial increase in the adoption of smart gas meters over the next few years.
Several factors will contribute to this growth. Firstly, the rapid urbanization and expansion of city gas distribution networks are driving demand for more efficient and accurate gas metering solutions. Secondly, the government’s focus on reducing non-revenue gas losses and improving energy efficiency aligns with the benefits that smart gas meters offer. Furthermore, consumers are becoming increasingly aware of the advantages of smart meters, such as near real-time monitoring and better control over their gas consumption, which is also contributing to the market’s growth.
What are the challenges that you foresee in the adoption of smart gas meters in India?
Yes, we do foresee some challenges in the widespread adoption of smart gas meters in India. One of the primary challenges is the high initial cost of smart meters compared to conventional meters. This cost can be a significant barrier for both consumers and utilities. Additionally, there is a need for robust communication infrastructure to support the real-time data transmission required by smart meters, which can be a challenge in remote or less-developed areas.
Another challenge is the need for regulatory support and clear guidelines from the government to ensure a smooth rollout and adoption of these technologies. Finally, there is also the issue of consumer awareness and acceptance. It is crucial to educate consumers about the long-term benefits of smart meters to encourage their acceptance and adoption.
Despite these challenges, we remain optimistic about the future of smart gas meters in India. With the right mix of policy support, technological innovation, and consumer education, we believe the market will continue to grow, and smart meters will become a standard in every household and industry in the years to come.
“Adopting smart gas meters offers several significant benefits for consumers, primarily in terms of cost savings and convenience.”
What are the primary benefits that consumers can expect from adopting smart gas meters, both in terms of cost savings and convenience?
Adopting smart gas meters offers several significant benefits for consumers, primarily in terms of cost savings and convenience.
Firstly, smart gas meters provide accurate, near real-time data on gas consumption, which allows consumers to monitor their usage more closely. This transparency helps users identify patterns and adjust their behaviour to reduce waste, ultimately leading to lower gas bills. With the ability to track daily consumption, consumers can make informed decisions to conserve energy, which is not only good for their wallets but also for the environment.
Secondly, smart meters eliminate the need for estimated billing. Traditional meters require manual readings, which can lead to errors or estimates that might not reflect actual usage. Smart gas meters automatically send precise usage data to the utilities, ensuring that consumers are billed accurately based on their real consumption. This accuracy prevents overcharges.
Many smart meters come with mobile apps or web portals that allow users to check their usage hour-by-hour, receive alerts, and manage their accounts from anywhere, at any time.
Additionally, in case of any leak or abnormal usage pattern, smart meters can alert both the user and the gas provider promptly, enhancing safety and ensuring a swift response.
Overall, the shift to smart gas meters represents a move towards greater efficiency, cost-effectiveness, and consumer empowerment, making energy management easier and more transparent for everyone involved.
“Effective deployment requires coordination with various local stakeholders, including utilities, local government bodies, and other regulatory authorities.”
Coming back to energy metering, IntelliSmart, as we understand, has already installed over 27 lakh smart meters across Assam and Bihar. What are the typical on-ground challenges during smart meter deployment?
During smart meter deployment, IntelliSmart faces several on-ground challenges, including:
Infrastructure readiness: Existing electrical infrastructure may not always be conducive to smart meter installations. This includes outdated wiring, lack of space for meter installations, and inadequate power quality, which can hinder the performance of smart meters.
Geographical and environmental challenges: Deployments in remote or rural areas often face logistical issues, such as difficult terrain, which can delay the installation process. Additionally, extreme weather conditions can impact both the installation process and the durability of the equipment.
Consumer awareness and acceptance: There can be resistance from consumers due to a lack of understanding of the benefits of smart meters. Misinformation and concerns about data privacy or potential health impacts can also lead to reluctance in accepting new technology.
Coordination with local authorities: Effective deployment requires coordination with various local stakeholders, including utilities, local government bodies, and other regulatory authorities. This can sometimes lead to delays if there are bureaucratic hurdles or misalignments in objectives.
Technical challenges: Ensuring reliable network connectivity for smart meter communication, addressing power outages, and integrating smart meters with existing grid management systems can be technically demanding.
Workforce training and safety: Training local workforce and ensuring safety during installation is crucial. Unfamiliarity with new technologies can lead to inefficiencies and pose safety risks if not adequately addressed.
By addressing these challenges through strategic planning, community engagement, and leveraging advanced technology solutions, IntelliSmart has ensured smooth and efficient smart meter deployments.
What is your overall view on the TOTEX model that is being used for financing of smart metering projects under RDSS? Is the AMISP sufficiently assured of RoI during the O&M period?
The TOTEX (Total Expenditure) model, which is being used for financing smart metering projects under RDSS represents a significant shift from traditional CAPEX (Capital Expenditure) model. TOTEX model is advantageous because it accounts for both capital and operational expenditures, thereby promoting a more holistic and sustainable approach to project financing and management.
As for the AMISP, the assurance of Return on Investment (RoI) during the Operations & Maintenance (O&M) period post “go-live” is indeed a critical factor. The TOTEX model inherently provides a more predictable cash flow for the AMISP, as payments are spread over the project lifecycle, including the O&M period. This model aligns the interests of both the AMISP and the utilities, ensuring that the service provider is incentivized to maintain high performance standards throughout the meter’s life.
The utility has more control over quality and performance of meters and its software infrastructure without having to incur heavy capex/investment, wherein service provider is responsible for performance of the entire metering infrastructure each and every month for a period of 10 years.
However, the adequacy of the RoI is contingent upon several factors, such as the contractual terms, the efficiency of the O&M operations, the reliability of the technology, and the overall governance of the project. It is essential that the contracts are well-structured with clear KPIs (Key Performance Indicators) and SLAs (Service Level Agreements) to protect the interests of the AMISP and provide adequate compensation for their services throughout the duration of the project.
“The adoption of smart meters has empowered consumers by providing real-time data on energy usage, promoting energy conservation and timely bill payments.”
Is there any feedback yet from discoms of Assam and Bihar on the positive impact on their commercial efficiency, following smart meter installations?
We have indeed received positive feedback from discoms in Assam and Bihar regarding the impact of smart (prepaid) meter installations on their commercial efficiency. These meters have allowed the utilities to significantly reduce the AT&C losses and improve cash flow through timely revenue collection. With the prepaid functionality, customers are more aware of their consumption patterns, leading to more efficient energy use and reduced peak demand, which ultimately helps discoms manage their load efficiently.
Currently, Bihar with wider consumer acceptance and support from government, ranks number one in the country in terms of the number smart meters installed. This advancement has led to enhanced efficiency in power distribution, reduced energy losses, and improved billing accuracy. The adoption of smart meters has empowered consumers by providing real-time data on energy usage, promoting energy conservation and timely bill payments. For distribution companies, it has streamlined operations by facilitating quick detection of power outages and system tampering, leading to better resource management and service reliability. This shift has positioned Bihar as a leading example of how technology-driven solutions can bolster energy infrastructure and consumer satisfaction.
Moreover, the transparency in billing and reduction in disputes over inaccurate meter readings have enhanced consumer trust and satisfaction. We are closely monitoring the performance and benefits of these smart meters and will continue to collaborate with discoms to optimize their operations further.
How do you see the prospects for IntelliSmart under RDSS in the years ahead? More importantly, please discuss how IntelliSmart, with its vast experience, plans to set project implementation precedents for other AMISPs to follow.
As we look ahead, the prospects for IntelliSmart under RDSS are extremely promising. The RDSS aims to enhance the reliability and efficiency of the distribution sector, and our experience positions us well to leverage this opportunity. IntelliSmart’s deep-rooted expertise in smart metering and AMI enables us to align seamlessly with RDSS objectives, driving forward the modernization and digitalization of the power distribution network.
In terms of setting project implementation precedents, IntelliSmart is committed to pioneering industry standards. We have already set an industry benchmark by completing India’s first RDSS smart metering project in Assam, ahead of schedule.
We are among the very few AMISPs in India having end-to-end AMI deployment capacity. Our approach involves meticulous planning, cutting-edge technology integration, and rigorous project management. We emphasize innovation and operational excellence, which we believe will serve as a benchmark for other AMISPs.
We are not only focused on delivering successful projects but also on sharing best practices and insights gained through our extensive experience. By doing so, we aim to contribute to the broader goals of the RDSS. IntelliSmart is dedicated to leading by example and ensuring that its projects set a high bar for efficiency, reliability, and customer satisfaction in the smart metering sector.
(Note: All field photographs seen in this interview relate to IntelliSmart’s smart metering projects.)
