ENERGY MEASUREMENT How did electric meters become “smart”?

Related Vendors

ROHM Semiconductor GmbH

Rogers Corporation

MERSEN

Electricity has never been free since its “discovery” or “invention”. Electric meters have been around since the late 1880s. Power stations used them to earn money for their services. Before electric meters, power stations would count the number of lamps and bulbs in a house to bill electricity users. Traditional electric meters were simply recorders of electricity. Now they have become smarter. Check out the article to know about smart meters and what makes them smarter!

Electric meters are devices installed in customer premises to measure the amount of electricity consumed. They are typically calibrated in billing units of kilowatt-hour (kWh) to give a reading. Generally, they are read once a month for billing purposes.

Electric meters are installed, managed, maintained, and read by utility companies. They are put in an enclosure outside the premises. The only job of the customer is to keep them safe. Thanks to electric meters in homes, we can pay for the electricity we consume.

Analog electric meters

Historically, electric meters were DC. However, they were not reliable enough. After 1890, AC electric meters were introduced. Surprisingly, the internal design of electric meters has remained the same for over a century. The traditional electric meter is the analog electric meter, for which a utility company agent arrives at the premises to take the reading. An analog meter is commonly known as an electromechanical meter.

Century-old mechanism

An analog electric meter has two coil sets. One set may consist of only one coil, while the other may contain a pair or three. A voltage coil is connected in parallel to the load, and a pair of current coils is connected in series with the load. An aluminium disc is placed between the two coil sections.

Electricity flows through the customer premises and passes through the meter. The action of magnetic fields produced by voltage and current coils generates a torque that moves the aluminium disk. A copper ring helps create a 90-degree phase shift between voltage and current to generate the torque that eventually moves the aluminum disc.

The speed of the aluminium disc rotation is proportional to the power consumption. Due to mechanical effects, the disc can accelerate further. An additional permanent magnet creates a braking force to control the speed of rotation. The disc further turns the gears that move the dials. It enables the electric meter to display the readings.

Something extra

When there is no net power draw, the electric meter can slightly move. An additional compensator network of magnets is present within the design to eliminate such unnecessary readings. Hence, analog electric meters made it necessary for utility companies to calibrate and estimate readings. The overall accuracy remains low.

Digital meters: A base for smart meters

The electric meter timeline started with DC electric meters. Soon, AC electric meters were introduced. The AC electric meters are analog, the ones we discussed. Digital meters are a modern solution to electric meters. They use microcontrollers and sensors to measure electricity consumption.

An LCD or LED screen displays its readings in an understandable format, something that consumers can easily understand. As a result, utility company agents would no longer need to visit the premises for readings. The readings were accurate, and consumers paid only for what they used!

How did electric meters become “smarter”?

Smart meters are a total game-changer for utility companies. They incorporate advanced microcontrollers and communication modules to calculate and display the readings. Not only do smart meters take readings, they communicate with utility companies and consumers through cellular technology.

Smart meters are smart and safer to use. They are connected closely to circuit breakers to ensure safety during faulty conditions. Consumers can now connect to their devices through apps for remote monitoring. Apart from electricity consumption, the LCD/LED screen of smart meters displays a ton of readings like current usage, tariff rates, power factor, previous period usage, and many more.

Smart meters: The game changer

Smart meters run on AMI (Advanced Metering Infrastructure). It is an infrastructure that consists of internal components and modules that run on various systems and processes to fetch and analyze electricity data for insights. The section lists various features of smart meters as per AMI.

Sensor action

Smart meters consist of advanced sensors that continuously measure current, voltage, and power factor to calculate electricity consumption in kilowatt-hours. Current transducers measure current, voltage dividers measure voltage, thermocouple measures temperature, and many more sensors perform such sensing functions.

Data processing

Smart meters compute and store power consumption data. Each consumer can have their own energy register. The data is sent to a data concentrator unit that logs data from multiple smart meters in a given range and transmits it to the central server of the utility company.

Quick communication

Early bird smart meters relied on power line communication (PLC), radio frequency, and cellular (2G/3G/4G/5G) for 360-degree communication. Modern smart meters are now powered by IoT. They use eSIM (electronic SIM) for communication and remote monitoring.

Data analytics— so much of IT

Utility and energy companies do not let the data from smart meters go to waste. Advanced machine learning and AI models deduce smart conclusions from such data to predict future trends. For example, smart meters can tell them about energy consumption patterns during holidays and which appliance causes what change in the pattern.

AI

The impact of artificial intelligence on the semiconductor industry

Bill control

Smart meters are not based on the ideology of paying what you consume; instead, they follow the market-driven pricing model. Following deregulation, smart meters are more economical. Smart meters enable time-of-use pricing (TOU), a competitive pricing strategy.

TOU divides the day into three parts: peak, mid-peak, and off-peak. In peak hours, demand is higher. The reading goes slightly lower for mid-peak hours and the lowest for off-peak hours. Hence, prices are higher for energy consumption during peak hours.

For example, user A consumes more electricity during peak hours and less during off-peak hours. On the other hand, user B consumes more electricity during non-peak hours and almost negligible amounts during peak hours. User A pays more than user B.

Made with power electronics— for power electronics

The collab of smart meters and power electronics is an everlasting relationship. Power electronics is what makes smart meters function properly. For example, current transducers and current transformers function as current sensors to measure current flow in smart meters. In return, smart meters provide readings for power electronic device usage in factories.

Load management

The power industry runs on kilo amperes, kilo volts, kilo watts, and whatnot! Running on such heavy-duty machines results in heavy power consumption. Smart meters offer real-time monitoring and power quality analysis in factories. Engineers can effectively manage heavy loads like HVAC inverters, converters, generators, and many more.

Grid contribution

Smart meters are important parts of the grid. Data analytics allow consumers to understand their consumption patterns and the nature of their electrical appliances. It increases customer awareness about the grid and helps them reduce their electricity bills. In addition to money saving, smart meters are a small step toward combating the carbon footprint.

Criticism of smart meters

Every electronic device has its pros and cons. Smart meters are slightly costlier than electromechanical meters in terms of installation and maintenance. While smart meters can make your life easier and save you some money, they can fall prey to cyberattacks, such as attempted power outages.

Some other questionable loopholes are health risks from radio frequency, privacy concerns, and the inability of the general public to deal with complicated electronic devices. From the perspective of utility companies, smart meters can become a means of dynamic pricing abuse and a potentially low-revenue-making opportunity.

Concluding

As smart meters deal with questions and criticisms, their market grows. Bill reduction and enthusiasm for adopting new technology are some key drivers of the growing market. Smart meters started their journey in the late 2000s, expanding largely in 2008. The smart industry is a billion-dollar industry. In 2024, the smart meter market was valued at USD25.98 billion. It does not stop here. The smart meter industry is expected to hit USD51.56 in 2032, with a CAGR of about 9 %.

References

• https://www.enertiv.com/resources/faq/what-is-electric-meter

• https://www.youtube.com/watch?v=xtModjpxfxM&t=613s

• https://engie.com.au/blog/5-benefits-of-smart-meters-and-why-you-should-install-one-in-your-home-today

• https://www.iberdrola.com/about-us/our-innovation-model/smart-meters

PCIM Expo 2026: Join the leading exhibition!

Lead the future of power electronics! Exhibit your latest solutions, connect with key players, and elevate your brand visibility worldwide at the PCIM Expo from 9 – 11 June 2026 in Nuremberg, Germany. Benefit from our Early Bird discount by 30 June 2025.

Secure your spot now

(ID:50512340)