Flexibility and interoperability are critical for next-generation advanced metering infrastructure

The right technology decisions empower utilities to deliver value while preparing for the dynamic grid of the future

Energy organizations around the world are looking for ways to increase operational efficiency, enhance the customer experience, and manage an increasingly dynamic, decentralized distribution grid. As they implement new technology solutions to support these initiatives in Advanced Metering Infrastructure (AMI), it's important to consider lessons learned from the past.  

In the early stages of AMI adoption in the Americas, many utilities and energy organizations were forced to commit to a single vendor, locking them in for the longer term. For example, a utility might have preferred one vendor for its commercial meters, but due to system limitations, was required to use the same vendor for residential meters, even if a better option existed. Over time, the inability to choose the preferred or optimal device for the application became a bottleneck for these organizations, resulting in less flexibility than before they implemented AMI in the first place.

One of strongest lessons learned from AMI 1.0 is the high cost of inflexible systems. While proprietary solutions may have seemed like the right choice at the time, they actually came at a cost: limited choice and constrained innovation.

Planning for change and growth

In the past, energy companies would often select a technology vendor and commit to a rigid 10- or 15-year project roadmap, in part due to regulatory approval cycles and allocated budgets. However, in today's fast-paced environments where technologies such as AI and edge computing continue to evolve and change the landscape, that approach has become ineffective. Driven by both external influences and the rapid evolution of the technology itself, the transition from AMI 1.0 to next-generation solutions has occurred at an unexpectedly swift pace in the Americas. As a result, any plan based only on today's technology could quickly become outdated. 

Instead of locking in, utilities need to maintain flexibility. They need platforms and technology solutions that allow for changes, and the ability to pivot when something no longer makes sense for their organization, or for their customers. They need to commit to approaches and plans that enable agility and growth. After all, interoperability isn't just a technical specification, rather it's a strategic advantage that reduces risk and unlocks opportunity. 

Here are just some of the areas where we see this approach having an impact:

• Mitigate supply chain risks: Avoiding reliance on a single vendor means utilities can effectively deal with issues and disruptions, and source the best technology to meet their needs.
• Future-proof investments: Leveraging device-independent platforms means new solutions can be added or projects undertaken without the need for expensive or time-consuming overhauls.
• Support innovation: Flexibility enables utilities to experiment and learn by adopting what works well, and avoiding what doesn't.
• Enhance the customer experience: Customer experience now ranks among the top three priorities for many utilities. With greater agility today, utilities can better respond to customer needs and deliver modern, reliable services.

Build resilience for the future

Flexibility and interoperability are important considerations for any new technology implementation. By choosing device-independent solutions, energy organizations can maintain flexibility and in turn will be better equipped to meet the demands of their customers now, while also ensuring that they're ready for any future requirements, including next-generation AMI.

Some important areas for energy organizations to look for when they're considering technology partners and solutions include: 

• True support for multiple devices: Look for a head-end software platform that is designed to work with a wide range of devices, meters, and technologies, offering flexibility in choosing the best solutions for specific needs. By avoiding being tied to a single technology provider, energy organizations can easily adapt to future needs and innovations. It is increasingly important to retain the ability to evolve your infrastructure as your requirements change. 
• Scalability and flexibility: Look for solutions that are designed to be flexible and scalable, including those that support multiple communication protocols, allowing for the integration of new technologies and applications as needed - without requiring major overhauls of the existing infrastructure. 
• Features addressing the needs of utilities and smart cites: Solutions that are tailored to meet the specific requirements of utilities and smart cities will provide the opportunity to optimize operations, improve efficiency, and enhance services for customers.

As utilities prepare to deploy next-generation AMI, they must do so with the understanding that technology will continue to evolve faster than ever. The old model of locking into long-term technology commitments is not only outdated; it's also risky.

To thrive in this new age and deliver on electrification and decarbonization goals, energy organizations must prioritize interoperability, flexibility, and resilience by making decisions that will enable them to grow, adapt, and innovate.