India’s smart metering market is poised for significant growth, driven by successful pilot projects and positive stakeholder outcomes. By January 2024, 8.6 million smart consumer meters had been installed, with 3.02 million installed in the 2023-24 period alone, nearly doubling the previous year’s total. Tenders for 104.3 million smart meters have been awarded, and evaluations for 39.5 million more are ongoing. Smart meters can lead to substantial savings; replacing 250 million conventional meters with smart meters could save India Rs 9.5 trillion for an investment of Rs 1.25 trillion.
Smart meters enhance operational efficiency for utilities, aligning power procurement with real-time demand and improving customer engagement. The Ministry of Power’s Rs 3 trillion Revamped Distribution Sector Scheme (RDSS) has accelerated smart meter installations under a design-build-finance-own-operate-transfer (DBFOOT) model. Advanced metering infrastructure service providers (AMISPs) are contracted to finance, supply, install, and operate the meters, which discoms can later acquire at no cost. Bidding for these projects is based on the service charge per meter, with AMISPs receiving grants upon successful installation.
Consumer response to smart meters has been positive. A survey by the Council on Energy, Environment and Water found that 60% of households with smart meters were satisfied with their billing and payment processes. Additionally, 92% reported a smooth installation experience, with many noting benefits such as better control over electricity expenses and reduced theft.
The market is rapidly expanding, with manufacturers securing large orders and new partnerships emerging. IntelliSmart Infrastructure Private Limited, a joint venture of the National Infrastructure and Investment Fund and Energy Efficiency Services Limited, is a key player, with a project portfolio of around Rs 200 billion. The company has secured major projects across several states, including Uttar Pradesh, Gujarat, Bihar, and Assam, often achieving high installation rates in record time. IntelliSmart has also partnered with Bharti Airtel for real-time connectivity and IoT solutions.
With the government mandating the replacement of all 250 million meters by 2025, smart meter awards and installations are set to accelerate. Proper planning and execution, robust IT integration, and cybersecurity measures are crucial for successful implementation. Consumer engagement through awareness campaigns and user-friendly applications is also essential for the success of the smart metering initiative.
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