Why is it in the News?

Kerala's shift towards an alternative approach for the implementation of smart electricity meters, sidelining the Central government's Rs 3 lakh crore project, poses a challenge to the Union Government's initiative of replacing 250 million traditional meters with smart meters in all households by March 2025.

About the Smart Meter National Programme (SMNP):

• The Indian government has initiated the Smart Meter National Programme (SMNP) to revolutionize the country's energy sector through the implementation of smart meters.
• By replacing 25 crore conventional meters, the SMNP aims to enhance the operational efficiency and revenue management of distribution companies (DISCOMs).
• Under the leadership of Energy Efficiency Services Limited (EESL), a joint venture of four National Public Sector Enterprises, the scheme is set to make waves in the energy sector.
• EESL, comprised of NTPC Limited, PFC, REC, and POWERGRID, operates under the Ministry of Power and is committed to undertaking the necessary capital and operational expenditures with zero upfront investment from states and utilities.
• The Build-Own-Operate-Transfer (BOOT) model facilitates the recovery of smart meter costs via the monetization of energy savings resulting from improved billing accuracy, reduced meter reading costs, and increased efficiency.
• In accordance with guidelines set forth by the Central Electricity Authority (CEA), the strategic deployment of these smart meters adheres to industry standards.

Smart meters offer a multitude of advantages:

• • Consumers can monitor their electricity usage and make informed decisions to reduce their bills.
  • Utilities benefit from enhanced operational efficiency, enabling better power demand management.
• Web-based Monitoring: The interconnected smart meter network can mitigate utilities' commercial losses, enhance revenue generation, and propel power sector reforms.
• The Smart Meter National Programme (SMNP) paves the way for a more efficient and sustainable energy landscape in India, revolutionizing the way utilities operate and consumers engage with their electricity usage.

What are Smart Meters?

• A smart meter serves as an advanced tool for recording electricity consumption and voltage levels, offering a significant upgrade over traditional metering systems.
  • While conventional meters simply measure power usage, smart meters take it a step further by transmitting real-time data to utility providers at intervals of 15 minutes or hourly.
• Smart meters truly live up to their name by utilizing internet connectivity to facilitate two-way communication.
  • On one hand, they empower consumers with up-to-date information on energy usage patterns, enabling them to make informed decisions and manage consumption more efficiently.
  • On the other hand, utility providers gain valuable insights for monitoring purposes and ensuring accurate billing.
• In essence, smart meters pave the way for improved energy management, increased transparency, and enhanced efficiency, catering to the evolving needs of both consumers and utility providers in today's digital era.