What is Advanced Metering Infrastructure (AMI)?
What is Advanced Metering Infrastructure (AMI)?
It is an integrated system of hardware equipment, communication systems, and information management systems for utilities to remotely collect electricity usage data.
Why is it Important?
Deployed in many countries, AMI enables “two-way communication” smart meters, which read electrical consumption in real time. This real-time data is processed and sent to the customers so that they may use the data in order to design proper signals that enable optimal use of the energy. Collecting data at each meter is critical for energy suppliers as well, so they can elaborate market signals and understand demand behavior. Such AMI technology can be applied to many other energy sources, such as water, wind, solar, etc. This whole mechanism connects to the idea of “being GREEN,” which is something that every country should be striving for.
What is the Current Market Situation in South Korea?
As can be seen from the charts, the Korean market is expected to grow until 2024, the end of KEPCO’s project. Although there’s a possibility that the project might be delayed once more, KEPCO seems determined to not let that happen again as they are already 4 years behind the original schedule.
With that said, there’s a critical question that should be answered: “what comes after 2024?”
Then What Should the AMI Companies in South Korea do next?
It might be evident to some of the major players in the market, but there are two main strategic paths that the players should consider:
- In order to maintain their revenue stream within South Korea, they should consider going into renewable energy sector as well as eco-friendly energy. It is also imperative that they recognize the importance of diverse product portfolio; for example, they might consider communication systems or software developments, if they weren’t part of the portfolio yet.
- To replace the revenue that KEPCO’s project brings, it would be inevitable to enter the overseas market. Here in Hebronstar, we recommend Southeast Asia and South America, as their governments are eagerly catching up to the global trend for AMI and Smart-Grids these days and the market is growing exponentially. However, it is important to first study each target country’s technological trends, environment, major market players, the relationship between suppliers and government entities, etc.
Whichever path is taken, the key is to research and develop (R&D). For the companies that provide technology that shapes the future of the world, their survival depends on how fast one can recognize the new opportunities and take it.
Hebronstar Strategy Consultants
Yoo, Jung Won / Associate Consultant
