Evaluation CapEx of large AMI projects.

In this publication, we give another example of how IOT communication affects CAPital EXpenditure when deploying electricity meters. We take advantage of the excellent report of the Energa Operator Polish distribution system operator company, which in 2014 deployed 105,000 smart electricity meters. This AMI infrastructure deployed for Demand response application.

Аccording to Energa Operator report, we give briefly some important parameters that influenced CapEx:

  1. Total quantity of smart meters – 105 000 pcs. (58% – one phase, 42%-three phase)
  2. Total quantity of data concentrators installed in project – 1550 pcs.
  3. Communication technology – Power Line Communications
  4. Total time of deployment – 13 months
  5. Staff involved In deployment of project – 90 people. (Devide by 3 groups)
  6. Training Staff3 weeks per one group.

The CapEx in the figures of the two communication technologies Embee and PLC is presented in the picture below.


We have something to compare. In 2013, KTS-INTEK company deployed 100,000 electricity meters to the North Caucasus Interregional Distribution Network Company. The total deployment time was 4 months without any staff training. Electricity meters with ordinary serial numbers were set for subscribers in any order at any convenient time, without any planning. After installing the meters, in any convenient place, the gateway was mounted. Subsequently, all work on the formation of balance groups (transformer – subscribers) took place on a computer screen. In the case of building huge local radio networks of meters of 3000-4000 pcs per gateway, remotely from the office, we divided into smaller radio networks 500-800 pcs per gateway.


Despite the fact that communication technology significantly reduces CAPEX 15-25%, the North Caucasus Interregional Distribution Network Company has an new business procurement model, to buy meters with the desired technical features in any vendors and combine them in one local Embee radio network. As a result, this added another 5-10% to the purchase price of devices.