News

New business opportunities for mining and energy industries - 27 Jun 12 

Australia is a leading resource-producing nation and this is giving the country an unprecedented economic advantage in a world hungry for raw materials.  Many of these resources form key inputs to the economies of the countries that buy the Australian products. In this article we would like to concentrate on one sector, that of energy.

Coal, gas, oil, solar and wind are some of the key resources that Australia can exploit.

At the same time carbon-based fuels constitute one of the greatest threats to the global environment. Despite good policies, initiatives and aspirations for a clean energy future, the fact that countries such as China and India (understandably) are still building power generators based on fossil resources means that the problem, for the time being at least, is growing.

Nevertheless these countries are simultaneous investing massively in cleaner technologies and so, even if the results are not immediately apparent, the long-term effect of their efforts will be substantial – provided that really progress is achieved in time to avert major disruption to social, economic and environmental stability.

With a global focus on cleaner energy technologies and Australia’s leading position as an energy resource producer it would be very advantageous if we, as a country, were to take a holistic look at the whole value chain – from resource to energy, to end-users in the home or in businesses – and link it to strategic thinking about the opportunities that could be derived from this.

Solutions could be offered to large-scale national or state-based energy infrastructure projects, or to large energy users – using all the elements of the value chain to optimise the outcomes for the users in reducing waste; maximising efficiencies and effectiveness; delivering sustainability; reducing emissions; lowering costs, etc. One of the keys to success is to break down the barriers between different stakeholders and nurture holistic thinking about the challenges. It may be the only way to find solutions for complex projects that take a great deal of time and money to develop and that include R&D, science, engineering, etc.

Australia is in a key position to start developing all-encompassing strategies and business models to link resource products and energy products together, and start looking at using our knowledge and our investments to develop national-scale solutions.  These would include resources, resource technologies, energy technologies such as smart grids, EV, renewable energy technologies, and home and business energy management systems. Already several distribution and transmission companies are involved in projects overseas – and of course the Australian resource companies are all selling overseas, with several of them also looking at new technologies linked to their products.

If these organisations would collaborate in exploring combined opportunities and building product and services packages around these future energy technologies, then new (increased “value-add”) business models could be developed. This would broaden the base of the resource and energy industries and as such would enhance the overall economic model that only too often at present leads to two-tier economy outcomes.

Obviously large management companies such as IBM, Accenture and others can help to bring all of this together. However Australia has all the ingredients and at the moment is making significant profits in the resources industry.  This helps to make it financially possible to start pioneering new approaches to this market.

Countries such as Canada, Norway and Iceland are all looking at new value-added business models around their natural resources and Australia cannot afford to lag behind.

The Netherlands, where I was born, has been working with water for over a thousand years. They use their combined expertise to provide a large range of water management projects around the world. To make such projects work requires not only industry cooperation but also leadership from the government in policy-making, plus the assistance of the universities and R&D organisations to support these developments.

Another good example of strategic thinking in such projects is illustrated in what several large Chinese companies are now doing - they open their own universities to develop the knowledge needed for the large projects that they are undertaking .  Similarly, an Australian initiative could be a centre of resource and energy excellence based at a university to support such a national policy.

Resource and energy management are hot issues at the moment all around the world. Australia should claim its position in the market and develop the value-added infrastructure around it to provide the country with new opportunities, new value-added jobs and value-added margins well above those that are applicable to these industries today.

Paul Budde

Remote microgrids - 26 Jun 12 

A new report from Pike Research finds that remote microgrids are ideally suited to help meet the demand for more energy, without increasing carbon emissions.

Demand for energy in the developing world, including Asia, Africa, the Middle East, and Latin America, is expected to grow together with projected increases in human population and rising living standards among the chronically poor. Demand for energy, especially electricity, is growing much more rapidly in these growing economies than the rate of expansion of conventional electricity grids in the major industrialized world.

The global remote microgrid market is forecast to expand from 349 megawatts (MW) of generation capacity in 2011 to over 1.1 gigawatts (GW) by 2017, which is a projected revenue for the sector of more than $10.2 billion by 2017.

The report analyzes the global market opportunity for remote microgrids in several key segments including village power systems, weak grid island systems, industrial remote mine systems, and mobile military microgrids. The study examines the market issues and demand drivers associated with adoption of microgrids for remote applications, assesses technology and implementation issues, and profiles the key industry players that are engaged in this fast-growing market.

Prepaid utility service programs - 26 Jun 12 

A new report from the National Consumer Law Center (NCLC) in Boston shows that prepaid utility service programs and proposals are expanding rapidly throughout the United States and are putting low and moderate income households’ health and safety at risk, as well as setting up an inequitable two-tiered customer delivery system.

Prepaid utility customers are often those with the least ability to pay and utility companies have been shown to steer low- and moderate-income families toward prepaid programs, allowing the companies to sidestep critical consumer protection laws.

The report, Rethinking Prepaid Utility Service: Customers at Risk, also shows that many companies add lucrative junk fees, such as initiation fees, equipment charges, transaction fees or frequent payment fees, to the prepaid customer plans.

NCLC opposes prepaid utility service but if a state’s regulatory agency allows a prepayment program, the non profit advocacy organization urges that a set of 11 requirements be incorporated to protect customers, including:

• regulatory consumer protections must be maintained or enhanced.
• health and safety risks must be reduced.
• vulnerable populations must be protected.
• marketing of service should be voluntary and not be presented to customers facing disconnection for non-payment.
• transaction and other junk fees should be eliminated, and rates should be lower than for comparable credit-based service.
• states should proactively plan for prepaid customers to have money returned in case of company default.

The report also includes a map showing current and proposed prepaid utility programs throughout the U.S., and a series of customer service questions that utility companies should answer before regulatory boards each year to ensure that customer protections are being maintained in service territories where a prepaid service program is already operating.

Solar power technology in Australia - 26  Jun 12

A new report has been commissioned by the Australian Solar Institute (ASI). The report, Realising the Potential of Concentrating Solar Power in Australia, will be used to accelerate the technology’s development in Australia.

The report finds concentrating solar power (CSP) could provide about 30% of Australia’s total current electricity generation capacity with only modest extensions to the national electricity grid, if forecast cost reductions are achieved. With continued investment in CSP, Australia has the potential to secure for itself a valuable part of the global clean energy supply chain and in turn help address Australia’s long term greenhouse gas emissions challenge.

The report also found that if further action is taken now, Australian CSP deployment could realistically reach 2,000 megawatts by 2020. By then around 4,000 people would be employed in construction and ongoing operations, with the majority of these jobs in regional areas.

The report outlines four actions that will help drive CSP deployment in Australia:

• while continuing to focus on lowering cost, the CSP sector should work with governments and regulators to increase the reward for clean energy systems that better correlate generation to real-time electricity demand.
• the CSP sector should better communicate the technology’s value proposition to key stakeholders to increase awareness of its potential
• the sector should work with governments, regulators and service providers to pre-approve and provide connections for CSP systems in selected areas of high solar resource to help lower first-of-a-kind development costs
• the sector should leverage continued public and industry investment in research, development and demonstration activity to lower costs and build confidence in the technology.

The report was written by IT Power Australia Pty Ltd as part of a study commissioned by ASI. 

Largest Smart Grid Demonstration project in the USA - 19 Jun 12 

Over the past decade, the Pacific Northwest region in the USA has been a pioneer in its nation's emerging smart grid agenda, contributing technology, utility applications, customer engagement strategies, and policy. The Pacific Northwest Smart Grid Demonstration Project will take the region's involvement in smart grid to a new and exciting level.

This project is  the largest of the 16 smart grid demonstration projects funded by the U.S. Department of Energy (DOE) under the American Recovery & Reinvestment Act (ARRA).

The project received funding of $178 million and project participants are required to match the DOE contribution at a minimum of 50%. Participants now include 11 utilities, 5 technology partners and 60,000 consumers across the five states of Idaho, Montana, Oregon, Washington and Wyoming.

The project team set out with five important objectives in mind:

• Quantify smart grid costs and benefits
• Facilitate the integration of renewable resources
• Validate new smart grid technologies and business models
• Advance standards for interoperability and cyber security
• Provide two-way communication between distributed generation, storage and demand assets, and the existing grid infrastructure

Electric utility industry undergoing structural evolution - 12 Jun 12 

Global consulting company, Black & Veatch’s has released its annual Strategic Directions in the U.S. Electric Utility Industry Report which shows that the electric utility industry is starting to change how it operates.

The report is based on an industry survey and expert analysis. Some of the key findings indicate: 

• Regulation (economic and environmental) will remain the primary motivator for utility leaders concerning investment decisions. Additionally, electric customers will be the ones who pay for changes through increased rates. More than 65 percent of utility leaders stated that customer rates had risen in the past year. More than half believe that rates will rise “significantly” because of environmental compliance programs.
• The potential benefits of smart grid programs include better power quality and reliability, improved customer service and opportunities to reduce power consumption. However, regulator and customer understanding of this potential lags behind the pace at which the new technology is being deployed. Currently, “customers’ lack of interest and knowledge” is ranked as the top impediment for smart grid investment.
• The nexus of water and energy continues to be a major issue for the industry. Nationally, water supply is second only to carbon emissions legislation as the industry’s top environmental concern. In drought-stricken Texas, it is the top concern.
• Utility leaders are starting to “see gold” in green programs. The industry’s view on renewable energy is shifting from one of doubt to one of opportunity.
  • More than two-thirds of respondents stated that renewables could provide benefits in the form of customer and regulatory relations, investment incentives and future revenue generation.
  • More than 40 percent have begun the process to modify their service models to account for distributed generation resources, such as rooftop solar.
  • Utility leaders, on average, estimate that electric vehicles will account for 7 percent of overall electric load by 2025. The 7 percent projection, however, requires exponential growth in electric vehicle sales.
• Solar is the top-ranked traditional renewable technology for the second year in a row. Most notably, it was the top-ranked renewable technology in all geographic regions of the country.
• The industry’s view on coal is rapidly changing. Last year, 81.5 percent stated that they believe there is a future for coal in the United States “when fiscal realities are fully considered.” This year, less than 60 percent believe this statement.

100 Million Smart Meters with integrated HAN Gateways - 12 Jun 12 

A recent study from IMS Research projects that annual global shipments of IHDs will grow from around two million units last year, to more than 13.5 million units in 2015. However, where there isn’t legislation, IHDs are set to face competition from ‘soft’ displays, where electricity consumption information is instead displayed on existing screens, such as tablet PCs, cellular handsets, and even TVs.

In countries such as the United Kingdom, the Government has not only required that smart meters be deployed with integrated HAN gateways, but also compatible in-home displays (IHDs) are set to be deployed concurrently. The Victorian Government in Australia has mandated the inclusion of integrated HAN gateways, and is set to offer subsidized IHDs to smart meter customers.

An integrated HAN gateway enables communication between the smart meter and devices within a home energy management system (HEMS), such as an in-home display or smart appliance, using a communications solution which is discrete to the WAN/NAN solution.

In the United States, where integrated HAN gateways have become commonplace, most smart meters are deployed with a fixed RF mesh solution for the backhaul network (e.g. smart meter to concentrator) and often ZigBee (a standardized RF mesh technology based on IEEE 802.15.4) for the HAN solution.

The inclusion of a HAN gateway is very country-specific and legislation-driven. Even where there is a common framework, actual deployment strategies vary. For example, EU regulations require the deployment of smart meters to most consumers within the next eight years. However, it is up to EU Member States to determine their own implementation strategies. As a result, approaches vary widely.

At one extreme, there are countries such as Italy, the first in Europe to start to deploy smart meters full-scale. Here, there’s been a penetration rate of more than 90% of households. However, the main focus was not on developing HAN solutions, and the smart meters were deployed without integrated HAN gateways. As a result, the Energy@Home Initiative (formed by Electrolux, Enel, Indesit and Telecom Italia) is working to develop a common system which can ‘retrofit’ these smart meters with HAN gateways, via a powerline-ZigBee gateway, to give home energy management systems access to consumption data and other information available via the AMI network.

There is growing momentum behind not only deploying smart meters with integrated HAN gateways, but also towards retrofitting existing smart meter installed bases with the functionality to participate in energy management systems. Yet there are still a number of barriers stopping the widespread uptake of home energy management systems to communicate with these HAN gateways. These include the lack of widespread incentives, such as dynamic pricing tariffs, the immaturity of utility plans for demand-response programs, and the fact that many utility companies – particularly in the United States – have not enabled HAN gateways, even where they are installed in the field. Despite this, a range of factors, including the growing availability of dynamic pricing, as well as the involvement of a range of commercial organisations, such as telecommunications companies, consumer goods providers and even security providers, are set to drive the market for home energy management systems to over US$9 billion over the next five years.”

AGL winner of the Solar Flagship program - 11 Jun 12 

In June 2012, AGL Energy Limited (AGL) was selected by the Commonwealth Government as the successful proponent in the solar photovoltaic (PV) category of the Solar Flagships Program. AGL, together with First Solar (Australia) Pty Ltd (First Solar), will deliver large-scale solar PV power projects totalling 159 MW at two locations in New South Wales.

AGL will develop a 106 MW project at Nyngan and a 53 MW project at Broken Hill.  First Solar will provide engineering, procurement and construction services for both projects, using its advanced thin-film PV modules.

The Commonwealth and NSW Governments will provide grant funding to support delivery of the projects under two funding agreements. The Commonwealth Government will provide $129.7 million to support project implementation, and the NSW Government will provide $64.9 million in funding.  Total capital expenditure for the two solar projects is expected to be approximately $450 million, the balance of which will be funded from AGL’s cash reserves.

Amazingly the project came in at half the price of the initially estimated costs thanks to the rapid drop in prices of PV technology.

On an annual basis, the projects will produce enough electricity to meet the needs of over 30,000 average households in New South Wales. The electricity and large-scale generation certificates produced will be sold to AGL under a long-term offtake arrangement to support its customer base and meet its renewable energy obligations under the Renewable Energy Target legislation.

It is estimated that approximately 150 direct construction jobs will be created in Broken Hill and up to 300 in Nyngan.

The projects will be developed in 2012-13 with construction complete in 2015. First Solar will maintain both projects for AGL for five years after commercial operation starts.

As required by the Solar Flagships Program, AGL’s project will also include a research component under the Education Infrastructure Fund (EIF). The role of the EIF is to build a modern, productive, internationally-competitive Australian economy by supporting world-leading, strategically-focussed infrastructure investments that will transform Australian tertiary education and research. The Commonwealth Government will provide $40.7 million to UQ and UNSW to support construction of research infrastructure under the EIF.

Energy in Australia remains cheap - 11 Jun 12

In working on our vision document, the executive had an interesting discussion about debate that is currently taking place in Australia about the increase of the electricity prices and the fact that to a certain extent this is paralysing the debate regarding sustainability, renewable energy, energy efficiency, industry transformation and so on.

In analysing that situation it became clear that it is actually not the price of energy that is causing these increases.  As a matter of fact energy is still very cheap in Australia and we have plenty of it from many different sources; the traditional fossil fuels, uranium, geothermal etc.  We have more sun and wind generation opportunities than most other countries in the world, so there is no reason to fear heavy cost increases due to a fundamental shortage of energy. As a matter of fact the Minister for Energy Martin Ferguson correctly states that Australia is an energy super power.

We also have to be realistic as the fact is that India and China opening up new coal powered generators every week. Whatever the rest of the world is doing regarding clean energy is negated by this reality. An encouraging development is that these countries are moving towards using gas for new generators, and while that still has a significant CO2 footprint, it is much better than coal. China is also already the world leader in solar energy technology and their investments in renewable dwarfs the investments made in many of the developed economies.

What of course will be the million dollar question is do we have enough time? Is this relentless increase in the use of fossil fuels – for at least the next decade -  going to affect our planet’s climate. The scientists are very clear on this; they say it will have a devastating effect on the world as we know it. The frightening  situation however is that it is unlikely that any significant reduction in CO2 emission is going to happen as long as the developing counties are adding new fossil fuel generators to their energy infrastructure at the current rate. As similar developments were essential for building the western economies over the last 100 years, the same applies now to the developing economies. Their prosperity is depending on access to cheap energy.

Everybody agrees that the best solution is to move as soon as possible towards renewable energy despite the fact that these technologies have not yet matured and that it will take a long time to change over. But if we pursue this road and we are a bit lucky with the climate change developments we might still make the switch over to renewables in time. The truth however is that the scientists are very sceptical about our ability to respond in a sufficiently timely manner.

So what have smart grids to do with all of this? First of all, much of the reason for the recent price increases relates to the costs of the networks and systems needed to carry the energy in an efficient way to the users.. Therefore from a cost perspective it is most certainly very relevant to look at the grid in relation to the price increases. But perhaps we should not do that in a linear way, extrapolating the past into the future.

As more and more people are putting PV systems on their roofs, we need to start looking at distributed energy systems whereby streets and neighbourhoods can start becoming energy producers. While some are describing this development as ‘off grid’ I would like to describe that differently. We do need to reposition the grid and review the investments in the grid in order to ensure that it becomes an interconnected system that can play a central role in distributed energy – like exchanges as we known them in telecommunications and Internet services. Initially the distributed use of this system will be limited however, over time this becomes more significant and eventually that could well become its main role.

What this means is that the value of the grid is not only the delivery of centrally produced energy ( (basically funded by a component of that energy price) but that its value becomes its intelligent network functions. This network will be shared by many applications such as:

• managing distributed generation,
• arbitrage of renewable energy,
• managing Electric Vehicles,
• extending network intelligence into homes and businesses
• providing data collection and data analyses in real time and making that (commercially) available to authorised users.
• value-added network services in relation to billing, network management services for the new parties involved in energy generation; and so on.

This means that the business model for grid operators will evolve from simply selling  and delivering energy to the more sophisticated role of managing energy. Any new smart grid developments will need to pursued with that future in mind.

There are now several countries that are putting smart infrastructure central to their energy policies as they see this as the key to link the various policy and innovation developments together. Germany, the Netherlands and the Scandinavian countries are amongst the thought leaders in this field and Germany has invested heavily to make this happen. The total cost of their energy investments amounts to one third of the country’s GDP.

Paul Budde

Renewable Energy Integration - 7 Jun 12 

According to a new report from Pike Research, smart grid technologies are often portrayed as being vital to efforts to increase renewable energy production, yet this aspect of the smart grid is the least developed.

This situation is expected to change over the next several years, creating a significant expansion of the market opportunity for smart grid technologies that enable the integration of renewables. It is estimated that revenue from smart grid renewables integration will reach almost $4 billion in 2012 and increase to $13 billion by 2018. The sector’s compound annual growth rate (CAGR) over those six years will be nearly 23%.

Microgrids are the leading technology of smart grid renewables integration market revenue in 2012. This revenue is expected to be more than $3 billion. Remote microgrids will represent 92% of this total, a reflection of the challenges of integrating distributed solar and wind in regions of the world where a reliable utility power grid is lacking. In 2018 microgrids will continue to lead the market, with 77% of total worldwide revenue.

Smart grid renewables integration technologies forecasts on a regional basis include the Asia Pacific regions revenue increasing from over $1 billion in 2012 to almost $5 billion in 2018. Second is North America, with revenue increasing from $974 million in 2012 to almost $4 billion by 2018.

Energy storage in Smart Grid Smart City program - 7 Jun 12 

As part of an Australian-first energy trial, households in Gundy, NSW will help power their local area using energy storage units and wind turbines.

The 20 energy storage units and eight wind turbines were fitted in early April to properties in Gundy, to test whether they can help power the grid during peak times and cut household bills by around $400 a year. The technology will be on these properties for the next two years as part of the Smart Grid, Smart City program.

Ausgrid and the government are testing whether this technology can make the power supply more reliable in rural areas and give households more control over their electricity use and bills. They are also looking at the impact of adding this technology to the grid in a concentrated area, and whether it is possible to use these energy sources to help power local homes during blackouts.

The five kilowatt zinc bromine energy storage units will initially be connected to the grid so they can draw power from the network in non-peak times and store it for use by the grid when energy demand is at its peak.

During the last stage of the trial, the storage units will be connected to the homes so residents can choose to take up time-based pricing and use their unit to help lower their power bills. Households can have the storage unit draw power from the grid in off-peak times when power is cheaper, store it, and use it later during peak times when power costs more.

The eight wind turbines will directly power the properties on which they are installed to monitor both household and technical benefits and to see whether combining wind turbines with energy storage makes it more viable for households in the future. Depending on wind speeds it is expected that homes with wind turbines connected could produce around 2000kWh of electricity a year and save around $300 a year on their power bills.

Japan, Italy and the United States leading the world in smart grid RD&D - 7 Jun 12 

There are various estimates and forecasts regarding the amounts which will be invested in smart grids in the coming years. According to the International Energy Agency (IEA) the world will invest between $23 and $35 trillion over the next 40 years in overall electricity networks. There will also be a 100-150% increase in electricity demand over that period.

Spending and investment of smart grid RD&D is led by three countries, Japan, Italy and the United States, but other countries making significant investments include Germany, Korea and Australia. Several other countries are now starting to increase their spending levels.

The private sector, including transmission and distribution system operators, electricity retailers, equipment suppliers, information technology companies, alternative service providers and aggregators are also investing significantly in smart grid RD&D.

Smart meters and Advanced Metering Infrastructure (AMI) offer more than Automatic Meter Readers (AMR). AMR allow for the automatic collection of data from water, gas or electricity metering devices which is then transferred to a central database and used for billing, troubleshooting and analysis purposes.

Smart meters and AMI however go a step further and using real-time or near real-time sensors can monitor power outages and power quality.

In early 2011 there were around 60 million smart meter units installed worldwide and this is expected to increase sharply over the next five years or so. Italy is the leader in this area, with around 30 million already installed. By 2015 it is forecast by Berg Insight there will be an installed base of around 300 million.

The Smart Electricity World event hosted by Terrapinn is running in Melbourne from July 2, is co-located with The Utility Show.

Covering the latest developments, technologies and innovations from Australia and around the world, attendees will learn how to effectively roll-out smart grid technologies, better manage customers & revenue flows in Australia and internationally.

Free seminars will be conducted on the exhibition floor space at Smart Electricity World, 3-4 July 2012. The seminars are designed to provide an educational platform for junior and middle level executives to gain hands-on experience with the latest products and services.

Registration is open to employees of a utility company only. Register here.

For more information see -
Smart Electricity World Australasia
The Utility Show

No easy choices: which way to Australia's energy future? - 06 Jun 12 

The Grattin institute recently published a report called “No easy choices: which way to Australia’s energy future?” It explores the acute intellectual and policy challenge Australia faces in energy policy. Markets must be the primary mechanism by which Australia transforms its electricity supply. Yet it will not be able to meet its emission targets and at the same time produce future electricity at a price acceptable to the public unless governments act to reduce the costs of low-emission technologies. It is now clear that the carbon pricing scheme alone is not enough to make low-emission technologies competitive and effect the change that Australia needs.

This report and its companion detailed report assess the prospects for seven technologies — wind, solar PV, concentrating solar thermal, geothermal, carbon capture and storage, bioenergy and nuclear — that generate electricity with near-zero emissions and that have the prospect of deployment at large scale over the next 40 years. It finds that all seven face obstacles to achieving their potential. Any might contribute significantly to meeting Australia’s electricity needs, but there is no guarantee that any of them will deliver at a reasonable cost. Australia has no easy choices in meeting its future energy needs. That is why governments need to step in, but with a hard-headed, intelligent approach. This report sets out what government should and should not do. 

Emission trading scheme introduced in South Korea - 05 Jun 12 

China is about to begin carbon trading - 05 Jun 12

The ten year roadmap for smart grid and energy - 05 Jun 12 

A new report from Zpryme has revealed that while many Smart Grid projects are currently underway, the majority of efforts are just now moving past the installation phase.

The report explores the smart grid roadmap from the perspective of utilities, vendors, energy users, and government from now until 2022. It shows that the next five to ten years will see smart grid-focused vendors seeing tremendous revenue gains and utilities will realize ROI. It also shows that the next five years are pivotal for software and IT communities.

It also reveals the following timeline:

• 2007 – 2012: The Planning, Pilots, Design, Research and Installation period for Smart Grid and Energy 2.0 solutions.
• 2012 – 2017: A time of Testing, Installation, Validation and Verification.
• 2017 – 2022: A period for Grid Optimization and Advanced Technology Integration, when utility systems and customers will begin reaping benefits of Smart Grid technology to maximize asset utilization, empower consumers with advanced monitoring and control, and more.

From 2012-2017, smart grid and information and communication technology (ICT) adoption will change from pilot and beta phases to an introductory stage. Such technologies will enter a growth stage among energy-demand stakeholders from 2017-2022.

Zpryme’s Roadmap is based on primary and secondary research, revealing 15 major findings related to the evolution of Smart Grid and the roles of the key players involved.

Smart Water Meter Adoption - 05 Jun 12 

A recent report from Pike Research has found that, as demand for water increases, utilities around the world face increasing pressure to manage the resource as efficiently as possible and smart water meters will be relied on as a key element of future water systems.

According to the 2030 Water Resources Group, worldwide demand for water is rising. In the next 20 years, demand for water is expected to be 40% higher than current levels, with the growth in demand surpassing 50% in the world’s most rapidly developing economies.

Forecasts are that the global installed base of smart water meters utilizing advanced metering infrastructure (AMI) will reach 29.9 million units by 2017, up from 10.3 million meters in 2011. By the end of the forecast period, it is anticipated that 3.3 million smart water meters will be shipped each year, with an annual market value of $476 million.

Smart water meter deployments are increasing in Europe and North America. Other regions are also showing a stronger interest in AMI water meters. According to the World Bank, losses from non-revenue water (NRW) represent $14 billion in missed revenue opportunity each year so the economic case for better water metering is convincing.

Several recently announced projects are good examples of the expanding demand for smart water meters. 

• Thames Water, the largest water and sewerage company in the United Kingdom, will extend its smart meter and smart grid trial from the Town of Reading to the City of London.
• Kennebec Water District in Maine is moving to full deployment of smart meters for its residential customers over the next 10 years
• The City of Sault Ste. Marie in Ontario has won a grant from the Federation of Canadian Municipalities to test what effect smart water meters have on residential consumption patterns and attitudes toward conservation.