A newly-released report by Avener Capital suggests that India’s rollout of 25 crore smart meters, under the Revamped Distribution Sector Scheme (RDSS), presents close to a $20-billion opportunity with AMISP project awards expected to grow at a compounded annual rate of around 25 per cent.
The comprehensive report covers India’s smart metering activities touching upon key aspects like the operating model, the smart meter value chain and industry-related developments.
Also presenting a global industry review, the report asserts that India can learn from precedents of global rollouts and develop its own plan for success. The Avener Capital report also states that sustainability beyond AMISP projects will ensure committed participation from both investors and developers.
The full report may be downloaded using this external link
Discussing the state-wise developments, the report observes that states like Maharashtra and Uttar Pradesh are currently saturated with respect to project awards. Therefore, opportunities for new projects might be limited. However, states like Tamil Nadu, Madhya Pradesh and Gujarat still present a good opportunity as the ratio of projects awarded to projects sanctioned is still below the saturation level.
The report suggests that existing players as well as new bidders will need to identify gaps between sanctioned versus awarded bids, demonstrate local know-how and develop robust implementation SOPs for a successful rollout.
On the financing model front, the Avener Capital study notes that fixed monthly payments along with a strong contractual payment framework (DDF) provides sufficient comfort to all stakeholders, adding that the direct debit facility mechanism for invoice payments provides enhanced comfort for revenue visibility to AMISPs and investors.
Featured photograph (source: HPL Electric & Power) is for representation only
