Market Trends of India Smart Grid Network Industry
Advanced Metering Infrastructure (AMI) is Expected to Witness Significant Growth
- Advanced metering infrastructure (AMI), or smart metering, is an integrated system of smart meters, communication networks, and data management systems that enable two-way communication between utilities and customers.
- The metering industry has taken rapid strides in the past few years by transitioning from automated meter reading (AMR) to smart metering using bi-directional communication, thereby enabling greater benefits to electricity distribution companies (DISCOMs), customers, and society.
- The Indian government is pushing for advanced metering infrastructure to reduce electricity waste and the labor costs associated with recording meter values. To promote smart meters, the government has started the "Smart Meter National Programme," which is expected to be the umbrella program for expanding smart meters in every electrified household in the country.
- With the USD 157.5 million it got from the German bank KfW, Madhya Pradesh was going to expand and update its electricity network in February 2022 by putting in place smart meters and smart grid technologies.
- Therefore, in light of the increasing efforts to modernize the electricity grid and reduce T&D losses, the Indian government is investing in advanced metering infrastructure. This is expected to drive the AMI market during the forecast period.
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Increasing Investments are Driving the Market Demand
- Smart grid technologies are a key part of meeting the growing power needs because of the growing need for electricity and the use of renewable energy to save energy and use it more efficiently.
- The country has made major strides in improving smart access to power among rural and urban communities through various government-led schemes focused on "Power for All."
- To further meet the goal of modernization and optimization of the electricity grid, the Indian government, under the Smart City Mission, allocated USD 783 million for the financial year 2021-22. Smart energy systems and grids have the capability to manage the energy supply of buildings in cities, which boosts the deployment of smart grid technologies across the country.
- Furthermore, in October 2022, state-owned Energy Efficiency Services Ltd. (EESL) announced the completion of the installation of 30 lakh smart meters across India under the government's Smart Meter National Programme. The company further aims to install a total of over 47,000 smart meters by December 2023.
- The increased investments by the Indian government, private players implementing initiatives pertaining to environmental protection, and growth in the adoption of smart grid technologies are likely to boost the smart grid network market in India.
