Challenges of Advanced Metering Infrastructure

Implementation in Colombia

Rubn H. Lpez Rodrguez Renato H. Cspedes G.
National University of Colombia Bogot
rhlopezr@bt.unal.edu.co, rhcespedesg@bt.unal.edu.co


Abstract

This paper presents the results of the analysis of
Advanced Metering Infrastructure (AMI), one of the most
widespread Smart Grid technologies as an alternative to
conventional metering for the Colombian electrical grids.
AMI is approached as a key element of the system by
which enterprise and customer information converge,
allowing the end user to access the functionality of a new
metering infrastructure. The analysis considers the
benefits of smart metering, compares experiences in other
countries, the characteristics of the metering function,
and regulatory and legal aspects particular to the
Colombia case.
Keywords: Smart Grids, Energy Metering, AMI, Metering Standards.

1. Introduction
This paper presents the analysis of Advanced Metering
Infrastructure (AMI), relatively new topic in electrical
engineering that has been gaining worldwide boom and is
closely related to the implementation of information
technologies (ITs) for modern distribution power
networks.
The measurement systems of electricity are a key
component of any energy system that comprises
generation, transmission, distribution and market. In
Colombia, the consumption of the energy delivered by
electricity distribution networks is measured mostly using
conventional methods, which do not allow consumers to
analyze their energy usage.


___________________________
R. Cespedes is partner of RConsulting Group SAS and associate
professor of Universidad Nacional, Bogota, Colombia.
renato.cespedes@rcgsas.com.
Ruben H. Lopez is an electrical engineer, graduated from the
Universidad Nacional in 2011, working presently for Cointelco S.A.
rhlopezr@gmail.com.

978-1-4577-1801-4/11/$26.00 2011 IEEE

For these reasons, energy trading companies, do not
have enough data about distribution systems and loads,
which translates into the lack of effective tools to address
challenges such as power failures and non-technical
losses, leading to considerable loss of income and
potential fines to utilities. With AMI consumers can
access dynamic information about the quantities and
characteristics of its energy consumption, to make
informed decisions on the basis of this information for a
more efficient and rational usage, taking into account
pricing signals that encourage changes in their
consumption patterns.
Regarding Demand Side Management
1
, AMI allows to
monitor, measure, and take actions on buildings and
houses, enabling the consumer or the network operator
(dealer) to control heating, ventilation, air conditioning,
lighting and other systems [1]. In situations of constraint
on the supply of energy it is possible to reduce demand by
the disconnection of concerted loads.

2. Smart metering and smart grid
2.1. AMI and smart meters
A smart (or advanced) meter is an electricity, gas,
water or heat meter, which measures, registers and
analyses usage of one or more services (measurement of
multiple services), enabling two-way communication to
transmit the information back to the utility for monitoring
and billing purposes.
In addition to allowing remote reading, to be done
periodically (e.g. at the end of each day), these meters
often have features to send reports of events such as
power failures and other events related to the quality of
service, which allows companies to respond more quickly
and according to the reported situation. A network of
smart energy meters allows for an energy balance at local
levels and the identification and location of losses.
Figure 1 shows a drawing of the AMI system. The red
dotted lines represent two-way communications between
the smart meter and the Meter Data Management (MDM)

1
DSM: Process of managing the consumption of energy, for the mutual
benefit of the utility and the end users.
System and between the meter and the sensors placed
near the users. The use of measurement transformers
depends on the type of user (CT / PT in Figure 1).

Figure 1. AMI viewed from the electricity smart meter
standpoint

The allocation of intermediate data management
equipment between the meter and a data center is
possible. This sort of equipment is known as a hub, a
device that in centralized systems is called secondary
concentrator (the primary one is the data center of the
utility).

2.2. Smart metering in the world
In Italy, ENEL introduced the use of smart meters in
2001 in the "Telegestore project" [2] [3]. The selection of
the communications infrastructure and the type of meter
was made with complete freedom given the absence of
regulation in this respect. Communications are based on
PLC
2
between the meter and the nearest electrical
substation and finally a control center imports the data
through a GSM network. By the end of 2005, ENEL had
27 million meters installed, of which 24 million are
managed remotely.

2
Power Line Carrier: system for carrying data on electrical conductors
used for electric energy distribution.
In Sweden, the first studies of smart metering were
carried out in 2001 [4]. By then, some companies already
had pilot projects and the government set it as mandatory
in 2009 justifying this decision in energy-saving programs
among other benefits.
In July 2006, California energy regulators approved
the upgrade to electronic communications program of 9
million conventional meters for residential customers with
both gas and electric services of PG&E (Pacific Gas and
Electric). These meters report electricity consumption on
an hourly basis. This enables PG&E to set pricing that
varies by season and time of the day, rewarding customers
who shift energy use to off-peak periods. The peak
pricing program began on a voluntary basis, and it is
expected that after a period of five years mass
participation will be achieved [5].
In England, the Department of Energy and Climate
Change aims to have smart meters in all homes by 2020,
costing approximately USD $ 13 billion [6]. The average
savings projected per family would be around $ 45 per
year.
Colombia is currently implementing pioneering smart
metering projects. One of these is the Empresas de
Energia del Archipilago de San Andres S.A. E.S.P. The
AMI project which is in operation since 2009, includes
the islands of San Andres and Providencia. Using
technology provided by Aclara, the system allows the
bidirectional flow of data on the existing power lines [7].
The main objective of this project which spans 16,300
meters, is to reduce energy losses from 34% to 12%, and
further eliminate the use of estimated billing.
In Cali, the utility EMCALI is implementing a project
which comprises 14,000 Aclara/Nansen smart meters,
whose installation began in 2009. The main purpose is the
reduction of non-technical losses indicators. The system
features remote disconnection, tamper and diagnostic
alerts, prepayment support and load limiting/load control.

3. Advanced Metering Infrastructure
3.1 Parallel of a cable TV decoder and AMI
Several reasons justify an analogy between the decoder
used by cable TV providers and an advanced AMI meter.
Both are used for the provision of public services and
fulfill the role of providing an interface that makes the
customer-company relationship easier. The incorporation
of digital technology in service is also a common element
that implies the access to additional options in
comparision with the conventional approach.
Regarding storage, there are decoders with enough
memory to store some hours of video. Meanwhile, the
AMI meter can store consumption and event registers
with a defined interval of occurrence, and also offers the
possibility of performing on demand readings and might
in the future allow for the storage or delivery of energy if
the user has some form of generation or relevant storage
equipment (electric vehicle).
As the decoder, the AMI meter is a device that
improves the conditions of service for the user and should
belong to the company, which shall keep it updated as
changes with technology or functionality occur. Despite
its potential benefits it is not expected that users invest in
a change towards smart meters. This equipment would be
set up by the company but users may be given access to
control certain functions.
Finally, while the smart meter can involve more than a
public service, the decoder only allows the provision of
cable TV services. The following table summarizes and
compares the functions of decoder (D) and AMI meter
(M):

Table 1. Comparison of television decoder-AMI meter
D M
Access to information concerning the service
(channel guide, scheduling, fees, etc.).

Access options regarding payment for the service
received ("pay per view", pre-payment, automatic
debit, etc.).

Allows for user programming

May avoid dispatching service personnel to the user

Benefits for utility and customer

Data storage

Warning signals sent to the utility upon service
failure

Functional options for the user organized in
packages (functionality is up to the customer).

X
Improves the management of the utility

Information for customers

Information for utilities

Integration with users applications X

Integration with other public services X

Introduces digital technology to public service

It belongs to the company and is operated by the
customer

It is the cornerstone of the service functionality

Possibility of providing incentives to users to
influence their consumption
X

Potential to save money to the customer

Potential to improve the perceived quality of service

Potential to improve the usage habits of the public

Presentation of information that facilitates access to
the possibilities offered.

Remote control

The company can take remote actions (e.g. cutting
and reconnection of service)


There is no doubt that if AMI implements the expected
functionality it will have a huge potential change the role
of the user to convert him to a so called prosumer
(proactive consumer). Looking to the future at a certain
moment, the AMI infrastructure will be able to:
Integrate with applications to control domestic
loads.
Integrate with mobile devices like phones or
computers with Internet connection to allow the
remote control of the meter functions.

3.2. Required AMI functionality
An AMI system basically consists of elements
classified into the following five groups (see Table 2 ):
Data storage
Communications
Management
User interface
Data reading and data processing

Table 2. AMI functions Classification
Functional Group Functions
Data storage
Storage of consumers data (consumption
and events)
Communications
Communications Protocols and
communications technologies needed for
the operation of remote control functions.
Among the possibilities are: DLC, HAN,
PLC, M-Bus, GSM/GPRS, infrared,
RS232, RS485, TCP/IP, UMTS and
ZigBee.
Management
Remote functions, fees management, load
control, on demand reading, prepayment,
multi-service metering, and real time
prices.
User interface
Alternatives for the user to access the
AMI functionality: LCD display, graphics
construction, keyboard, web site accounts
with password protection, report
messages to mobile phones or email.
Data reading and
data processing

Reading and processing consumption and
events data as voltage quality, current,
active, reactive and apparent power,
instantaneous and average values,
frequency, loss of supply, theft and
tampering detection, power quality, etc.
From this classification, the AMI required
functionality is defined. Figure 2 shows groups of
functions connected with data flow lines and containing
sub-blocks of the tasks performed by each block. In the
same diagram a dotted line represents the border of the
meter, distinguishing user and the MDM System. It
should be noted that between user and the data center of
the utility there may or may not be a concentrator (Figure
2 illustrates a case without hub).

3.3. Comparing conventional measurement and
AMI
Basic AMI is defined in this paper as the minimum
acceptable features for this type of infrastructure. The
difference between basic and extended AMI, lies in the
possibilities involved in each one as shown in Table 3 (in
general, the main difference is that extended AMI further
includes control elements):


Figure 2. Functional diagram of an AMI meter into
the AMI infrastructure

Table 3. Comparison Chart: conventional scheme (C) Vs
basic (B) and extended (E) AMI
Functional Block Features C
AMI
B E
Data storage
Consumption data

Events

Time-of-use metering

Operation under loss of

supply

Communications
Multiple communication
protocols and
communication technologies

Management
Remote control of devices
(remote load switch-on/off)

Remote configuration of
meter parameters

Limitation of consumption
and disconnection
/reconnection of energy
supply

Remote metering

Prepayment and
conventional payment

Real-time pricing

User interface
In-home display, buttons and
LEDs

Graphics construction, SMS

messages, web site users
accounts

Data reading and

data processing

Theft and tampering
detection and notification

Active power measurement

Reactive power
measurement

Power quality measurement

Import and export energy

metering

4. Technical, legal and regulatory issues
4.1. Equipment and communications analysis
A single-phase meter and a three-phase meter per
manufacturer were selected, as several companies
recognized market leaders were taken into account.
In order to distinguish the way in which equipment
from different manufacturers performs similar functions,
the following aspects were compared:
Anti-fraud features.
Readout of meter data without main power.
Remote functions.
Generation of graphics, SMS messages, web site
account.
Time-of-use metering.
Measurement of power quality.
Measurement of electrical energy.
In-home display, buttons and LEDs.
Real-time prices.
Protocols and technologies of communication.
Data storage.
Event Log file.
Support for pre-payment and conventional
payment methods.
Meter connection.
By confronting manufacturers in general it was found
that different manufacturers provide different approach to
the same functions, handling different amounts of data.
As for the user interface, none of the meters analyzed
support graphics generation, sending SMS messages to
mobile phones or uploading data to the Web.
Storage of information varies among manufacturers,
presenting some common elements such as the ability to
program the length of the time data recording interval and
adding time stamps for data. Some of the manufacturers
offer load profiles
3
, some of which are in the four
quadrants. Single and three phase models of one of the
brands considered in the analysis, are able to operate up to
two load profiles simultaneously. The event log is
incorporated into all three-phase and some of the single
phase smart meters.
In most of the cases, the meters have an internal clock,
which is necessary for recording time information, and
usually counts with a backup battery to ensure proper
operation even if supply is lost. One of the analyzed
meters does not have an internal clock, rather, the timing
is managed by a system clock.
A common element found is the inclusion of anti-fraud
features ranging from the detection and warning (by
instant message or event log) of the opening of the meter
cover to high immunity to magnetic influence.
The measurement of electrical energy is approached
differently by each manufacturer. It is noteworthy that
each of the three-phase meters registers energy
consumption in four quadrants, load profiles, ie, active
and reactive energy in the positive and negative
directions. Storage and data transmission, power quality,
bi-directional metering, four quadrants metering, multi-
tariff support, remote functions and tamper detection, are
elements that are being incorporated in equipment and
systems.

4.2. Meter manufacturing standards
The following table provides a description of the main
European standards (IEC) concerning the manufacture of
smart meters. Electrical equipment used in Colombia
normally meets International standards, which are
translated and adapted by ICONTEC. Regarding
standards of metering equipment, the ICONTEC meters
committee, deals with standardization issues concerning
electricity meters and electrical load control equipment,
such as active energy meters, reactive energy meters,
maximum demand indicators, telemetering for
consumption and demand, equipment for remote reading,
time switches and load and rates control equipment [8].

Table 4. Meter manufacturing standards [9]
Standard Description
IEC
62056-61
Electricity metering.
Data exchange for
Describes the hardware and protocol
specifications for local exchange of
meter data. The connection may be
permanent or may be based on an

3
Graph of the variation in the electrical load versus time.
meter reading, tariff
and load control
optical or electrical coupling.
The protocol allows reading and
programming of tariff devices.
IEC
62052-11
Electricity metering
equipment (AC).
General requirements,
tests and test
conditions. Part 11:
Metering equipment.
Covers type tests for static metering
equipment, electromechanical or
digital, for indoor and outdoor
application on 50 Hz or 60 Hz
networks, with a voltage up to 600V.
It also applies to multi- service
meters, with measurement of peak
demand, time switches,
communication interfaces, etc,
consisting of a measuring element
and register(s) enclosed together in a
meter case.
IEC
62053-23
Electricity metering
equipment (AC).
Particular requirements.
Part 23: Static meters
for reactive energy
Applies to static VAR-hour meters of
accuracy classes 2 or 3 for indoor or
outdoor application, consisting of a
measuring element and register(s)
enclosed together in a meter case. It
also applies to equipment with multi-
service metering and to functional
elements such as measurement of
peak demand, time switches,
communication interfaces, etc.
IEC
62056-21
Electricity metering.
Data exchange for
meter reading, tariff
and load control. Part
21: Direct local data
Exchange
Describes hardware and protocols
specifications for local meter data
exchange using hand-held units
(HHU) or a unit with equivalent
functions connected to a tariff device
or a group of devices.
IEC
62052-21
Electricity metering
equipment (AC).
General requirements,
tests and test
conditions. Part 21:
Tariff and load control
equipment
Specifies general requirements for
the type test of newly manufactured
tariff and load control equipment,
like time switches that are used to
control electrical loads, multi-tariff
registers and maximum demand
indicator devices.

4.3. Regulation of the measurement and pricing
of energy in Colombia
Ideally, in a given sector, regulations are established as
a result of a comprehensive policy and strategy, based on
the characteristics and sector-specific development.
In some countries, developments are occurring in
relation to particular plans and regulatory measures but
there is not as much development as it might be expected.
In the United States, for example, the implementation of
smart grids was established by law, based on standards,
on which the National Institute of Standards and
Technology (NIST) is working at this time.
On the other hand, the Federal Energy Regulatory
Commission (FERC), national regulator, made known
standards for safety and reliability for the smart grids
[10].
Regulation must pursue economic and energy
efficiency. For this purpose investments that expand
periods in which rates may be affected, and also
generation, transmission, distribution and marketing are
changed, should be analyzed considering separate
remuneration.
In Colombia, energy pricing is handled by type of
customer [11]. The Colombian electricity market has
regulated and non-regulated segments. Regulated
segments cover industrial, commercial and residential
energy users whose demand is lower than 0.5 MW. In the
unregulated market, consumers with energy demand
higher than 0.5 MW can freely negotiate and contract
their supply on the wholesale market (i.e., spot and
contract markets) directly or through business entities,
distributors, or producers [12].
Colombian law mandates that there be free
competition and that the end user should choose his
retailer, which in practice has not occured [9].
There are complicated legal and regulatory issues. For
example, in Colombia, self-generators of power cannot
sell the energy back to the energy company or to others
unless meeting the strict regulatory conditions.
Advanced Metering likely may contribute to slower
demand growth, or being more optimistic to its reduction,
so companies would have to find new sources of income.
As long as the current model in which the company with
more assets, more networks and more customers, has a
higher profit, real support for schemes such as AMI are
not be expected [9].

4.4. Considerations of Smart Metering
Implementation in Colombia
Colombia is a country where 70% of the population is
of low income and a considerable number of people living
in substandard settlements and typically only use about 4
or 5 light bulbs and a TV set. If smart meters are installed
at these sites it may not be feasible to recover the
investment over the lifetime of the meter, hence the
common denominator of smart metering projects being so
far developed in Colombia is the reduction of non-
technical losses.
Such technologies tend to be more useful in societies
with high per capita electricity consumption where the
population has high income. One way to make them
viable in countries like Colombia, would be a segregated
implementation. Using criteria such as strata would lead
AMI to specific groups of consumers, increasing in this
way the possibilities of successful implementations.
So far the need to think first on the AMI requirements
and the problems that have to be solved and to avoid
decisions based on new untested features is considered
key for developing a solution for Colombia. No doubt
there are challenges to be addressed, obstacles such as
ownership of the meters by users or gaps in regulation,
which can, however, result in opportunities from the
standpoint of those who may invest in these types of
technologies [13].
At present there is growing awareness and concern for
environmental sustainability, and new possibilities are
entering the scene, such as distributed generation, energy
storage and remote loads control (on and off). It is
expected that the interest of utilities in Colombia,
motivated primarily by improving their economic
indicators continue to grow, and as that happens, the
financial improvement based on increasing revenue or
reducing operating costs, will motivate that new means to
improve the efficiency of the system and the cost of
kilowatt-hours of energy be employed. At that point AMI
shall be strongly considered as a key element for
implementing Smart Grids.
Smart Grid implementation cannot be achieved only
by automating the electrical grids; rather the user shall
become an integral and active participant first [14].
Perhaps the most interesting aspect about the smart
grid and AMI systems is that to improve efficiency, not
only reducing pollution, but also reducing consumption
per capita.

5. Conclusions and recommendations
AMI is an infrastructure located near the user, which
makes possible the demand response (encourage the client
to change their habits of energy consumption) and
demand management (direct control of household
appliances) with an enormous potential to change habits
of customers and to reduce energy use, increasing
efficiency.
AMI is being used in the world for the purposes of saving
energy and improving the management of distribution
networks.
Functionality of AMI is very promising but a detailed
case shall assess the potential benefits of the
implementation of this type of infrastructure. There are a
number of barriers to be overcome from the legal
framework, tariffs and traditional development of the
electricity sector in Colombia, like the lack of any reward
or incentive for technological innovation related to AMI
but it is expected that with time, and appropriate
investment costs of new technology AMI will be a good
candidate of infrastructure for its implementation in
Colombia.

6. Acknowledgement
This paper is a summary of the Thesis prepared by
Ruben H. Lopez as partial fulfillment of requirements for
graduating as electrical engineer at the Universidad
Nacional de Colombia, Bogot.

7. References
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[2] "Evaluating The Leading-Edge Italian Telegestore
Project", presentation by Fabio Borghese, ENEL,
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[3] Domestic Metering Innovation, Consultation
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[6] http://business.timesonline.co.uk/tol/business/
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grid/smart-grid-obstacle.
[7] http://meterpedia.com/mwp/2009/08/22/
implementation-in-colombia/
[8] DIRECCIN DE NORMALIZACIN ICONTEC.
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[9] http://webstore.iec.ch/webstore/webstore.nsf/
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[11] http://www.creg.gov.co/html/i_portals/
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Renato Cespedes G. graduated as Electrical Engineer (1972) from the
University of the Andes (Colombia) and obtained a Doctor in Electrical
Engineering (1976) degree from the National Polytechnique Institute of
Grenoble, France. He is associate professor at the National University of
Colombia. Dr. Cespedes is presently partner and CEO of
RCONSULTING GROUP, a consulting company based in Bogot with
interest in automation, technology and Smart Grid concepts. Dr.
Cespedes retired in 2009 from KEMA Inc. where he held the position of
Director of the Latin America operations.

Ruben H. Lopez graduated as electrical engineer (2011) from the
Universidad Nacional de Colombia. He is presently working as
installing coordinator of electrical framework at Cointelco S.A., an
electrical engineering company working on new building projects
designing and installing electrical systems. His interests are Power
Systems, Smart Grids and Smart Buildings.