in Up Front
print the content item

Managing the cost and complexity of large-scale smart meter deployments is proving to be a significant challenge for many utilities. Advanced metering infrastructure (AMI) managed services (AMS) has emerged as a third-party option in which the day-to-day operations of the AMI system are outsourced to managed service providers, often via cloud-based resources.

To date, smaller utilities have been the primary customers for AMS, but by the middle of this decade, larger utilities will also increasingly choose to outsource these functions, according to a new report from Pike Research.

By 2020, AMS will represent half of the overall AMI market, with annual revenues of more than $2.2 billion, the report forecasts.

“AMS remains something of a well-kept secret, but the market is poised to take off,” says Bob Lockhart, a senior research analyst at Pike Research. “While there’s more current activity and more installed end points than you would expect today, the current volumes pale in comparison with what is likely to come over the rest of this decade.

“The successful AMS vendors will be those that can stick to a business dialogue with their clients while internally optimizing their technology and delivery capability continuously,” he notes.

Some utilities will want to roll the entire infrastructure cost into their monthly service fees to avoid any capital outlay, while others - especially large regulated utilities in North America - will want to capitalize the infrastructure, even if it remains at a cloud hosting center, the report says. In some cases, these choices will be determined, at least in part, by federal incentives.

Some large utilities in the U.S. that did not obtain stimulus funds through the American Recovery and Reinvestment Act of 2009 may consider AMS if they do not believe that they can get a rate case approved for AMI capital expenses in the current political environment, the report notes.



Hse SandyHook
Latest Top Stories

DOE Report: U.S. Wind Power Prices Reach All-Time Low

According to the U.S. Department of Energy (DOE), wind power continues to play a larger role in the U.S.' energy mix and is the cheapest it has ever been in the country.


Survey Reveals What U.S. Consumers Expect From Their Utilities

GE's new survey measures Americans' views on the state and future of the grid, as well as how much extra consumers would be willing to pay for better power reliability.


How A GIS Can Help Utilities Address The Aging Workforce And Capitalize On Data

Baby Boomers, whose experience and know-how have served the utility industry so well for decades, are retiring. The author suggests utilities can use a geographic information system (GIS) to fill in resultant knowledge gaps.


Sensus Smart Meters Tied To More Overheating Incidents And Fires

SaskPower is investigating two new meter failures, and Portland General Electric is working to replace 70,000 Sensus units amid fire concerns.


SaskPower Halts Smart Meter Installations Following Fires

The Canadian utility has suspended its smart meter deployment as it investigates half a dozen fires associated with the meters.

S&C Electric_id176
edf_id180