Socio-economic Aspects for Adaptation of Smart Metering System in Developing Countries; Current Challenges and its Future Perspectives /

Abstract

In both industrialized and developing countries, the availability of reliable and economical electric power supply is a necessary precondition for the economies to function. Loss of Eighty-Nine Billion US Dollars is being faced worldwide in the sectors of electrical power transmission and distribution. The prime focus of this research work was to introduce the concept of smart metering system to minimize this loss and to improve the efficiency of distribution sector specifically in the developing nations. Most of the developing countries still relying on the traditional billing system using electro-mechanical energy meters. The nationwide smart metering roll-out in this situation can prove to be a catalyst for the development of an efficient electrical distribution system whilst gratifying all the stakeholders related to the power system. The social, economic and environmental implications of adopting smart metering system were also investigated. Smart meters have a wide range of uses in the areas of data usage awareness, power quality monitoring, energy conservation, and detection of electricity theft. We have considered the electrical distribution system of Pakistan to conduct this research work. To assess the economics in the distribution system, one feeder is chosen that suffers from non-technical losses of about 16%. All of the fixed and variable costs associated with installing a smart metering system in the reference feeder have been calculated. Then, using a cost-benefit analysis, the advantages that may be achieved are weighed against the cost, and the results were discussed. Furthermore, S.W.O.T analysis is used to evaluate the opportunities and risks that the government and stakeholders will face as a result of the smart metering system's deployment in the developing nations.