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India: An Emerging Smart Meter Superpower

Michael Kelly — March 16, 2017

The global smart meter market has experienced a number of transformative events over the past decade. In North America and Europe, the Smart Grid Investment Grant and European Union Directive 2009/72/EC helped jump-start relatively minimal markets into the behemoths they are today. In Asia Pacific, China took the reins as the global leader in smart meter deployments, due in part to a state-sponsored rollout. As more developed markets reach higher penetration levels, the question becomes: Who’s next? India’s recent emergence onto the smart grid scene and ambitious smart meter targets may solidify the country as the next smart meter market superpower.

Background

As China’s massive 2017-2018 deployment winds down, India is quickly emerging to lead the regional marketplace. India represents the largest untapped smart meter market in the world with over 290 million traditional electric meters nationwide. Given the country’s historic challenges with grid reliability and loss prevention, the Ministry of Power (MoP) is advancing an aggressive smart meter rollout. The country’s current smart meter mandate applies to all customers with monthly consumption in excess of 500 kWh by December 2017. This requirement drops to 200 kWh by December 2019 and would apply to approximately 40 million to 45 million customers. The rollout scope was expanded in August 2016 following the MoP approval of India Smart Grid Forum recommendations, and now it will provide smart meters for all customers on a feeder by the year 2032.

Outlook

These targets seem ambitious for a country that has traditionally struggled with financial constraints and project delays. However, robust growth is still expected as the MoP forms relationships with meter manufacturers and the price of meters falls as a result of high volume purchase orders. Until now, activity has been largely limited to a set of 14 ongoing pilot projects sponsored by the MoP. Yet, planned deployments from private distribution companies like Tata Power help to move the needle toward additional on-the-ground activity. Regarding communications, while a number of solutions are currently being tested, industry sentiment has favored radio frequency (RF) mesh as the prominent solution of choice, with cellular and power line communication (PLC) being used to a lesser extent.

India’s decisions around smart meter deployment will go a long way to determine the overall global market outlook. Smart meter vendors are investing in India because they see ample possibilities in the future. With strong government support and a clear desire by private utilities to pursue smart metering, India is primed for the next smart meter revolution.

More information on India’s smart grid market, including detailed analysis and forecasts, can be found in Navigant Research’s report, FutureGrid India.

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