Improving Energy Efficiency with AMR
Nada Radovanovic, BSEE
Improving Energy Efficiency with AMR
Nada Radovanovic, B.S.E.E.
EPS-JP”Elektrovojvodina”
Novi Sad
Yugoslavia
Abstract
EPS-JP”Elektrovojvodina”, the biggest power Distribution Company in Serbia, supplies 830.000 consumers.
During the last decade we have been facing problems such as significant increase in the number of thefts of
electrical energy, non-paid bills and growth of distribution losses. There are great possibilities to improve
energy efficiency and competitive advantages. This increased the interest in remote metering and
automated billing system, which could improve payment discipline and reduce distribution losses through
introduction of Demand Side Management (DSM) techniques. In this context, DSM comprises a remote
connection and disconnection of non-payers, load management techniques and an introduction of modern
tariff systems, which enable distribution companies to offer a variety of prices to match different patterns of
consumption.
In June 2003 we started implementation of automate meter reading (AMR) through a pilot project on a
limited consumption area (800 household). Elektrovojvodina signed contract for supply and installation of
the equipment for AMR, communication system, hardware and software.
We selected four distribution transformer consumption areas for installation AMR. Two different vendors
supply AMR solution based on power line communication (PLC). So nearly every household can be
connected with PLC using low-voltage power grid for data and control communications. The pilot project
includes the installation of multifunctional electronic meters, telecommunication system and control center
computer system.
This paper presents practice aspects from introducing AMR in Elektrovojvodina, benefits for utility and
customers.
The results of testing the pilot project will be the base for making decision on technical solution for remote
metering, automated billing and demand side management in Elektrovojvodina.
Demand side characteristics
During the last ten years, the condition of distribution networks deteriorated because of the lack of
maintenance and investments, while the consumption increased. General decrease of the level of
economical standard of population during the period of sanction led to increase commercial losses including
illegal and non-paid consumption of electricity. Based on the analysis of technical losses in EPSElektrovojvodina, it is estimated that the commercial losses account for about 5% of the total distribution
demand or about 400GWh in 2001. At the current average price of electricity (4c/kWh) this corresponds to
the Elektrovojvodina's financial losses of about $16 million per year. Besides that we have a significant
decrease of revenue caused by non-paid bills – bad debts were about 20% of the total distribution demand
and costs for identifications and disconnection of non-payers. Commercial losses have an impact on
technical losses in two ways:

directly, through decrease of total revenues of the Elektrovojvodina, and that way through the decrease
of resources aimed at investment and current maintenance and at investments in system building

Indirectly, through increase of costs of the Elektrovojvodina due to hiring new people for control and
measurement of measuring points and customers disconnecting, as well as replacement of other people
to those positions due to increased volume of work.
The reduction of commercial losses is of highest priority in improving the company’s financial condition,
which should ensure a stable supply of electricity in Elektrovojvodina.
Objective of energy efficiency for electricity distribution
Demand Side Management (DSM) programmes consist of the planning, implementing, and monitoring
activities of energy efficiency programmes among utilities. Reduction of commercial losses will satisfy a
demand of customers by delivering less electricity from the power system. This is the objective of energyefficiency program for Distribution Company. Energy, which is not being paid (stolen), is mostly atractive to
be used. AMR introduces continuous, supervisory consumption control thus detecting illegal use of electrical
energy in order to reduce theft. In thus way, AMR positively affects commercial losses reduction.
Using relevant tariff policy (Time Of Use, Real Time Pricing) energy-efficiency programs reduce energy use,
both during peak and off-peak periods, typically without affecting the quality of services provided.
Implementing energy-efficiency programs to help defer the need for new distribution capacity in distribution
companies reduce the need to invest in new distribution capacity by reducing electric power demand, in
general and during peak demand periods.
The general tendency of deregulation of the electricity market has lead to increased competitiveness and
efficiency of electricity utilities. Under such conditions, the customers of electricity are no longer passive
users, but active participants expecting to be satisfied with the service that they pay. From the perspective
of deregulated electricity market, the prices and the additional benefits offered to customers will play an
increasingly important role in attracting the customers to certain providers of electricity.
Price signals are the most important drivers in energy efficiency development. When energy prices fall,
consumers are less likely to initiate energy efficiency due to poorer project economics. Fewer new
technologies are economical. The liberalisation of energy sectors in centrally planned economies in our
country bring higher energy prices. Utility and consumers in that state intend to improve energy efficiency
incentives.
Reasons for AMR implementation
Consumption of distribution area supplied by Elektrovojvodina has the following characteristics:

high non-paid bills (20%)

high distributions losses (13%)

illegal consumers connections

theft of electricity

high costs for reading meters (once a month)
With such characteristics we enter the process of restructuring in the power sector. Transition period will be
hard. Many people will be out of job in privatization process. We expect that the number of thefts will go up.
On the other hand our country intends to be a member of European Union. Liberalized electricity market in
European Union requires great efforts for competitive capability. New technologies are being used for that
purpose. Advances in computers and telecommunication technology bring state-of the art cost-effective
remote metering technologies and automated billing systems.
Expected benefits of AMR for power distribution companies
With regard to the technical capabilities of the AMR system, we are expecting the following benefits:

decrease of theft

increase of financial discipline of consumers

faster finding and eliminating of faults

decrease of errors in reading meters

reduction of the meter reading costs

reading meters without physical contact with meters and following difficulties (closed area
with metering equipment, angry consumers and dogs..)

possibility of easy introducing flexible tarrifying

more efficient operating of selective cuts in case of breakdown
Basic functions of AMR we apply
We are planning to implement the following AMR functions:

remote meter reading

real time monitoring of consumption

remote disconnecting/reconnecting of consumers

remote detection of irregularities (theft, illegal connection)

load management

remote control of consumption

outage detection and isolation

load balancing

remote change in customer maximum power threshold

prepayment without card enabling

low voltage grid energy management
Technical solution for AMR
The meter becomes more a part of an integrated AMR system. Today’s communication technology offers
cost-effective solutions, which support the integration process.
Low Voltage Power Line Carrier (PLC) Systems use Low Voltage (LV) distribution network between the
customer and the distribution substation as the communication medium. This medium has the major
attraction for use as a communication medium for DSM because it is available to all customers, is under
control of the electricity utility and already exists.
System Block Diagram:
CONTROL CENTER
GSM
TRANSFORMER
MV/LV
DATA CONCENTRATOR
PLC
LV network
URBAN AREA
SUB-URBAN AREA
The remote AMR consist of a Control Center (CC), Data Concentrator (DC) and Multi-functional Energy
Meter (MEM). Control Center, while working independently, should be integrated with an existing corporate
information management system through software interface. The DC and all the MEM are considered as a
sub-system of the CC. The sub-system is set up with a DC monitoring the low voltage power zone
downstream of a Distribution Transformer (HV/LV). The DC collects meter readings from all MEM connected
to it through the low voltage PLC and communicates with the CC through the GSM Network. Two-way
communication exists between DC and MEM. The MEM with the power line modems (PLC) is an intelligent
device, which can meter, process, store and transfer data over low voltage power line.
Monitoring of Pilot Project
The strategy involves a phased approach to AMR implementation. In the first step we install meters at
customers in a single distribution transformer area with remote meter reading, data concentrator and central
station with software for collecting data. After testing, we make the second step – meters installation at a
different distribution transformer area for remote meter reading and remote disconnection/reconnection
consumers, data concentrator and software for collecting data, load control and control of consumption.
Testing period will
take place from October 2003 until March 2004. During this period we will be
investigating:

whether selected technical solution in the presently state low voltage grid satisfy our requests in
regard to data communication reliability

whether selected equipment fulfills requirements in regard to metering of all parameters, data
transfer rate, protection and processing data

impact of the selected AMR system on commercial losses reduction (theft detection, illegal
connection)

impact of the selected AMR system in increase customer’s financial discipline

energy flow observation and management possibilities with the aim of decrease of technical
losses and distribution network function optimization
The Pilot Project will test prepaid meters, remote reading meters and remote reading meters with remote
control consumption (remote disconnecting/reconnecting).
During the testing period, we will investigate performances of the selected vendors technical solutions
regarding contractly specified functions in regard to reliability and efficiency of the two-direction data
transfer.
Learning
The main purpose of the Pilot Project is to test whether, and to what degree consumers in Vojvodina will
improve payment discipline and participate in a loss reduction program in response to an introduction of
remote metering, automated billing and demand side management in pilot areas. Because of the many
unknowns involved in bringing about behavioral change of this type, a pilot project is trusted to be the only
way to reliably test response rates among the target groups of consumers. The pilot project will help learn
about prospects of DSM techniques as applied to local infrastructure, which fell behind developments in
modern distribution systems during the last decade. During the AMR system installation proccess, functions
checking and testing we’ll find out reconstruction needs regarding Low Voltage greed, household
connections and metering cabinets. Selected PLC type of communication makes an issue for these
reconstructions.
Evaluation of effects
The introduction of remote metering and automated billing in pilot distribution areas will enable
Elektrovojvodina to test new technologies, which has significant potential to help reduce commercial losses
and increase financial discipline. This is the objective of energy efficiency for distribution electricity. The
metering associated supervisory control and data acquisition system will enable Elektrovojvodina to identify
and locate the sources of commercial losses so that measures can be taken to reduce these losses. The
new multifunctional electronic meters at the consumer level will enable remote reading and disconnection,
as well as automatic protection against tempering of meters. In addition, the new AMR system will improve
the services to the distribution consumers through automatic billing and faster response to consumers'
requests.
The real-time information helps Elektrovojvodina increase load forecasting accuracy, determine load
management and control strategy, optimize distribution system operations, develop and implement rate
strategies, and deliver value-added services.
References
[1] "Trade in energy", Energy Charter Secretariat, Brussels, December 2001
[2] "Energy charter protocol on energy efficiency and related environmental aspects, Annex 3 to the Final
Act of the European Energy Charter Conference, Energy Charter Secretariat, Brussels, April 1998
[3] IEA DSM ANNEX II, "Communications Technologies for Demand Side management – Interim Report on
Customer/Utility Functional Needs and Communication Technologies", January 1995,
[4] "Impact of market liberalisation on energy efficiency policies and programes", Energy Charter Secretariat,
Brussels, 2001
[5] Thomas Schaub, "The object oriented, interoperable meter", US AMRA'97, September 1997, Chicago
[6 ] Paul Fuchs, "New Directions in meter Standardisation", DA/DSM Preconference, 26 Oct 1998, London,
UK
[7] Bill Nesbit, "Thieves lurk – The sizable problem of stolen electricity", Electrical T&D World, November 57, 2000
[8] Ahmad Faruqui, "The real-time challenge – pricing strategy", Power Engineering International, August
2000
[9] Bill Koch, "AMR:Value beyond billing", Electrical T&D World, November 5-7, 2000
[10] Sian Green,"Getting smart in the home", Power Engineering International, December 2001
[11] Thomas Schaub, Helmut Ratzenhofer, Martin Wisy, Touko Salo, "The importance of Being
Interoperable", Metering Europe 2000, Sept.5-7, 2000
[12] The following Internet sites have been used as a source of information:
http://www.cognyst.com, http://www.eia.doe.gov, http://www.dlms.com, http://metering.com,
http://www.eml.co.za, http://www.lonmark.org , http://www.echelon.com, http://www.twacs.com
Biography
______________________________________________________________________________
Speaker: Nada Radovanovic –BSEE
Position: Division manager of planning and new technologies
Company: EPS-JP"Elektrovojvodina"
Country: Yugoslavia (Serbia and Montenegro)
Nada Radovanovic is responsible for introduction of new technologies in Elektrovojvodina. Prior to this position she was
responsible for implementing of AMR system through Pilot Project. Nada Radovanovic received the Diploma in electrical
engineering in 1976 from the Faculty of Electrical Engineering in Zagreb (Croatia). From 1977 until 1991 she was project
designer in electric power industry - IB Elektroprojekt in Ljubljana (Slovenia). After 1991 she was in different positions of
introducing a new IT technologies in the power distribution company Elektrovojvodina in Novi Sad (Serbia). Her responsibilities
include managing AMR system in Elektrovojvodina.
Company Background Information
________________________________________________________________
Company: EPS-JP"Elektrovojvodina" (Elektrovojvodina)
Country: Yugoslavia (present official name "Serbia and Montenegro")
________________________________________________________________
EPS-JP"Elektrovojvodina" is a part of Electric Power Company of Serbia – EPS. It operates as a public
company for the distribution of electrical energy in the region of the province of Vojvodina. The Company
covers consumption area of 21506 km2 and supplies around 830,000 consumers with annual consumption
of 830,000 GWh. Elektrovojvodina is the biggest power Distribution Company in Republic of Serbia. The
system of quality according to the requests of the International Standardization ISO 9001 has been
introduced from 1998. By using new technologies Elektrovojvodina makes great efforts in order to enlarge
bussiness efficiency. Distribution automation is being realized through Distribution Management System,
SCADA system implementation is approaching to be completed and Demand Side Management (being in
developing phase through pilot projects).