- Resources
- Blog
eSIM and Private Networks are Transforming Smart Metering
Bee Hayes-Thakore The energy sector is undergoing a significant transformation, with intelligent grid technologies playing a pivotal role in reshaping business operations. Recent events like Enlit Europe 2024 in Milan and the UBBA Summit & Plugfest 2024 in Kansas City have showcased advancements in intelligent connectivity, particularly in smart metering infrastructure. We explore and examine the impact of key technologies such as embedded SIMs (eSIMs) and private cellular networks on this evolution, offering enhanced security, scalability, and efficiency.
Enlit Europe 2024: A Glimpse into the Future
Enlit Europe 2024, held in Milan, brought together over 15,000 energy professionals to discuss the latest innovations in the sector. The event featured more than 200 sessions and 500 speakers across 12 stages, delving into power generation, hydrogen, eMobility, grids, and digitalization. A significant highlight was the emphasis on artificial intelligence (AI) and its role in accelerating the energy transition. Industry leaders discussed how AI-driven solutions enhance grid management and optimize energy distribution.
UBBA Summit & Plugfest 2024: Advancing Utility Broadband
The Utility Broadband Alliance (UBBA) Summit & Plugfest 2024, held in Kansas City, focused on advancing private broadband networks for critical infrastructure. The event featured keynotes from industry leaders and showcased interoperability tests of private LTE networks. Discussions centered on deploying private cellular networks to support grid modernization, highlighting the importance of secure and reliable communication channels for utilities.
The Shift to Cellular in Smart Metering
Traditionally, smart metering relied on RF and mesh networks. However, there’s a growing trend towards cellular connectivity, driven by several factors:
- Enhanced Security: Cellular networks, especially those utilizing eSIMs and iSIMs, offer robust authentication and end-to-end encryption, ensuring data integrity and protection against cyber threats.
- Scalability and Coverage: Cellular networks provide extensive coverage, facilitating the deployment of smart meters in remote and hard-to-reach areas without additional infrastructure.
- Edge Intelligence: Gateways in cellular networks can process data locally, enabling real-time decision-making and reducing latency. This edge computing capability optimizes operations and enhances the efficiency of energy distribution.
- Cost Optimization: By leveraging existing cellular infrastructure, utilities can reduce the costs of deploying and maintaining proprietary networks.
Market Growth Projections
The adoption of cellular connectivity in smart metering is on the rise. According to a recent report by Mordor Intelligence, the global smart meter market is expected to reach 161.19 million units in 2024 and grow at a CAGR of 8.14% to reach 238.42 million units by 2029.
Similarly, a report by Berg Insight indicates that the number of cellular IoT connections in the energy sector is expected to reach 1.53 billion by 2025, driven by the deployment of smart meters and grid automation solutions.
Smart metering: some key advances towards scale
Smart metering adoption is accelerating globally, driven by distinct trends across key regions.
In the USA, mandates to modernize aging infrastructure and improve grid reliability are primary motivators. Canada focuses on energy efficiency and emission reduction goals, with government backing for advanced metering infrastructure (AMI).
In Europe, countries like Germany, Spain, and Italy are implementing policies aligned with the EU’s Green Deal, promoting smart metering to support renewable integration and consumer empowerment. Meanwhile, the UK is pursuing a nationwide smart meter rollout to enhance energy efficiency and empower consumers in line with its net-zero targets.
Singapore leads in Asia with smart city initiatives, encouraging digital grid technologies to enhance energy efficiency. With government-driven AMI rollouts underway, China and India aim to reduce power losses in vast, complex grids and cater to large, underserved populations. Japan leverages smart metering to stabilize its energy landscape post-Fukushima, focusing on demand management and reliability.
The varied penetration levels in each region are illustrated by world view of smart metering penetration, which shows high adoption in North America, Europe, and parts of Asia. Emerging economies like India are rapidly catching up with government-backed programs for rural and urban smart meter rollouts.
In addition, a focus on scale is also driving the foundations of how a strong supplier ecosystem can support utilities in achieving a sustainable cost of connectivity and meter management across their lifecycles. In the EU, utilities are required to run an RFP for connectivity every 3 or 5 years.
Likewise, security and efficiency considerations are also a requisite in scaling energy metering networks. Low-Power Wide Area Network technologies such as NB-IoT and CAT-M1 are increasingly a choice of intelligence connectivity. These devices present a great fit for battery-powered remote water and gas metering systems, which in the US have an obligation to operate on a single charge for 15 years. These systems also require distinct approaches in security. Cellular Private Networks do not support SMS, which has been a requirement for secure profile distribution, and hence require solutions that can overcome this limitation. Generally, NB-IoT devices also cannot support SMS communications.
Case Study: LCRA’s Adoption of Private Cellular Networks
The Lower Colorado River Authority (LCRA), one of Texas’s largest public power providers, has chosen Kigen to provide new SIM technology to help enable and protect LCRA communications assets. By deploying a private LTE network equipped with Kigen’s SIM technology, LCRA aims to provide secure and reliable connectivity across its operations. This initiative underscores the importance of robust communication channels in ensuring resilient operations and optimizing costs.
Looking to the future
Integrating intelligent connectivity solutions, such as eSIMs and private cellular networks, is revolutionizing the energy sector. These technologies offer enhanced security, scalability, and efficiency, enabling utilities to meet the evolving demands of the modern energy landscape. Kigen’s eSIM OS and its latest eIM solution, compliant with the SGP.32 v1.2 requirements, provide robust support for smart metering manufacturers, enabling a seamless transition to scalable Advanced Metering Infrastructure (AMI) programs. The industry’s most compact eSIM OS, Kigen eSIM OS is packed with features uniquely positioned to support the needs of smart metering deployment – such as in-factory profile provisioning, secure element functions, and intelligent device logic for seamless profile switching to prevent connectivity losses.
The SGP.32-compliant eIM facilitates secure, remotely manageable connectivity, offering a versatile and resilient solution ideal for long-term deployments in the energy sector. Kigen eIM addresses how compact and ultra-efficient eSIM management operations can be carried out for single-charge battery-powered devices. Kigen eIM supports innovative on-the-fly translation, ensuring that legacy SM-DP+ can be leveraged in cellular IoT deployments with indirect profile download.
With IoT SAFE (IoT SIM Applet For Secure End-to-End Communication) embedded directly within the eIM, Kigen’s solution significantly reduces the cost and complexity of managing connected devices. This feature provides secure data exchange and authentication across the network, crucial for AMI programs with device life cycles spanning 10 to 20 years. The combination of eSIM OS and IoT SAFE enables utility companies and manufacturers to maintain efficient, cost-effective, and secure connectivity at scale, making it an ideal solution for the evolving needs of smart metering deployments.
