Smart metering is just remote metering with two way communication if you leave out the rest.If you conbsider that all do not want this conversation that simplifies it furthur or if the customer does not sit around the meter and needs the usage information once in a while it is furthur simplified.If he does not want to give power to utility to manage his home load, it is still easy.So we have three types of customers

. All power systems are designed based on principle of Cybernatics which involve economics/ politics and state of technology.If you call it smart then it has to be smart from its origin- generation/ transmission/ distribution and finally usage... All control systems are pyramidical in structure and so is power system

Now let us analyse what are the goals of smart grids.The goal of the smart grid is to provide energy (Electrical) to each consumer at all times and of correct quality.If you join this with goal of smart energy the scenario changes drastically because you are now talking about the availability of CNG/ Shale gas /Solar/ Wind also

In this scenario at the moment CNG and Shale is most economicwherever they are available or can be piped. In other words it is far simpler to achieve the goal of smart energy where this is so. Electrical conversion of these resources on site can ensure smart grid at that point.Now very simple clculations will show that it has potential to reduce the distribution losses by 30 to 60% based on location and load profile etc .Power system Engineers have known it for years.

This figure for a country like india could be 50000 USD per 11 KV feeder per year.So a plant of 1.5 MW capacity at the end of the 11 KV feeder would be paid off in no time.T his capacity is about half of the capacity 11 KV feeders are normally designed.

At present the bench mark losses permitted is 16% as against internationally accepted at 6-8%. This will lower the losses to 7-8%.If we wish tio reach this figue by conventional means we will have to practially double the conducter section which will be huge udertaking by all means.

In a nut shell this should be first step in any smart grid building.There are furthur developments but all that can come along later.In US the losses are already 6-7% so the payback will be much longer -

For US change the goal to smart energy and then all is econoical!