Cost–Benefit Analysis of Advanced Metering Infrastructure Implementation for Strengthening Smart City in Indonesia

Abstract

On its way to develop a smart grid in Indonesia, one key enabler in the early stage of implementation is advanced metering infrastructure (AMI). Thus, Perusahaan Listrik Negara (PLN), an electrical energy utility company owned by the government of the Republic of Indonesia as the only electricity utility company servicing customers from upstream to downstream in Indonesia, has started AMI program at some main cities. With AMI, real-time energy consumption profile, energy meter status and condition, and customer power quality can be acquired. Subsequently, these data collected by AMI can be used for further smart grid implementation by such IT systems and big data analysis. Instead of its function for smart grid backbone, AMI also significantly support smart energy on the city as a part of smart city initiatives. Nevertheless, its implementation requires more investment than the conventional metering system. This investment needs to be evaluated to define whether AMI is feasible and viable or not. This chapter is intended to observe the feasibility of AMI implementation in Indonesia using cost-benefit analysis (CBA). Two schemes were used as study objects, one scheme in which the communication infrastructure was managed by PLN itself, and the other one in which the communication infrastructure was managed by a third party. From the analysis, it appears that both schemes are proven to be feasible.

Citation

Arifin, Z., Setyobudi, R. and Elnur, K.A. (2023), "Cost–Benefit Analysis of Advanced Metering Infrastructure Implementation for Strengthening Smart City in Indonesia", Lytras, M.D., Housawi, A.A. and Alsaywid, B.S. (Ed.) Smart Cities and Digital Transformation: Empowering Communities, Limitless Innovation, Sustainable Development and the Next Generation, Emerald Publishing Limited, Leeds, pp. 301-317. https://doi.org/10.1108/978-1-80455-994-920231014