Advanced metering infrastructure is a key component of the smart grid, which is a network that enables two-way communication between energy providers and their customers. This technology allows utilities to manage energy demand, which can be instrumental in reducing peak-demand charges and the need for new power plants.
While some utilities have been slow to adopt AMI, recent studies are showing that widespread installation of advanced meters is creating significant benefits for the grid. The Department of Energy estimates that AMI can help reduce the number of power outages by up to 40% and cut peak demand by 5%.
As adoption continues to increase, we could see a future in which there are numerous benefits for all parties involved. Utilities will have more accurate data on customer usage and can adjust pricing as needed over time to avoid periods of high demand. Customers will have more information about their own consumption, but they'll also be able to save money by monitoring their usage more closely. The technology could also offer a benefit to third-party suppliers who use the smart grid to sell renewable energy to consumers.
This is all well and good, but one of the most exciting aspects of AMI systems is that they are capable of doing so much more. Colleges and universities have been working on research projects involving residential AMI systems in order to determine how best to repurpose them for academic purposes. For example, students can be provided with data about their energy consumption as part of a class assignment or learning experience that helps them understand how much energy they use and what effects their habits have on the environment. Similarly, building managers could be given data about different buildings' energy usage so that they can work to optimize efficiency in each location. In both cases, students and building managers alike would be able to make informed decisions.