The Smart Metering programme implemented by EESL/ IntelliSmart in various states, has a unique characteristic of seeking no upfront capex requirements from DISCOMs or state governments wherein all investments for installing and operating the meters over the years, along with complete digital backend IT systems for remote operations, is being undertaken by IntelliSmart. IntelliSmart implements the Smart Metering (AMI) Solution under BOOT (Build, Own, Operate and Transfer) Model. The DISCOMs are required to pay the monthly lease rentals only and that too out of the savings they make due to smart meters, over the operations period. This model would work on the lines of Pay as you Save (PAYS) approach.
The business model is based on costing of following key component costs:
a. Cost incurred for Smart Metering (AMI) components. (Project CAPEX) b. OPEX (O&M / FMS Expenses, Cloud Hosting Charges, ATS/AMC and GPRS charges) during the project period c. Project Management Cost (PMC) d. Interest and financing charges e. Return on Equity f. All the cost components shall be excluding GST and other applicable statutory taxes and shall be charged extra as per actual.
Smart Metering (AMI) Solution offers profound benefits to all stakeholders, including the DISCOMs, state government & consumers, and hence the deployment should take place in a fast track mode. Following are the benefits of smart meters implementation to the DISCOM:
1. Bring in operational efficiency on a model which is impact based, aiding efforts towards achieving UDAY targets and financial improvement of DISCOM. 2. Provides real time data feeds which can be leveraged for a real time decisions and actions to strategize Demand Side management, Energy / Power Demand Forecasting. 3. The data analytics can be leveraged for better peak load management and tariff structure planning. 4. Enhancing consumer satisfaction level with better complaint management, faster restoration of outages and awareness for optimized consumption pattern. 5. Improvement of the system stability, reliability, and transparency. 6. Optimization of O&M expenses 7. Access to EESL/ IntelliSmart’s project management experience and that of mass procurement through a fair, competitive, and transparent bidding process.