Analyst Insight: Smart Meter Analytics-Leveraging AMI

Smart meter analytics have undergone a series of evolutions since the dawn of advanced metering infrastructure (AMI), beginning with rudimentary applications that could leverage low resolution data and static reporting techniques to deliver descriptive insights, such as  “what has happened?” Reporting also included use cases like customer energy usage reporting and segmentation and clustering. The development of more sophisticated algorithms and the proliferation of other grid and energy sensing devices fostered a shift to more predictive models and techniques, such as “what will happen?” These include energy forecasting, proactive alerts and notifications, and asset performance management. The next stage of development uses prescriptive analytics, such as “what should I do?” that focus on assistive problem solving and holistic smart home optimization.

While utilities are at different stages in this evolutionary roadmap, the common trend is movement to more predictive and prescriptive models. This will come more easily as second-generation smart meters begin to get rolled out en masse. The development of next-generation smart meters represents an exciting time for utilities and their customers, as these devices come with more sophisticated computing capabilities and on-board analytics applications that can perform real-time analyses at the edge. From front-of-the-meter (FTM) grid management and optimization capabilities, to enhanced home automation and energy management opportunities behind-the-meter (BTM), the true value proposition that smart meter analytics offer is only now presenting itself.