Cost Analysis for a Hybrid Advanced Metering Infrastructure in Korea

Advanced metering infrastructure (AMI) refers to the electricity service infrastructure between electricity consumers and suppliers and is technically essential for the realization of a smart grid environment. To implement AMI, various communications technologies are being used based on the application environment according to the utility. However, using a single communications method can give rise to attenuation in the downtown underground distribution line section or cause higher supply costs due to decreased density in the range from farming to fishing areas. A hybrid AMI is one solution to this problem. According to an economic analysis of previous AMI deployment, the cost to install a communications network accounts on average for 45% of the total cost. Since the installation cost of a communications network is influenced by the density of the installation environment, a hybrid AMI, which allows the configuration of a flexible network using both wired and wireless communications, can be a good alternative, both technically and financially. This study conducted a simulation based on density of the installation environment and configuration of the communications network to analyze the economic effect of installing a hybrid AMI communications network. It assumed that a hybrid AMI was deployed in an overhead distribution line in a low-density area. The simulation outcomes were compared and analyzed against the power line communication (PLC)-only AMI method. The results showed that the hybrid AMI method had a 10% communications network cost reduction effect compared to the PLC-only AMI method. In addition, the analysis indicated that there was a maximum 19% cost reduction effect in communications network installation depending on the method of network installation, suggesting that the hybrid AMI was economically more effective than the PLC-only AMI method.