Going Green with AMI and ZigBee Smart Energy
Abstract
This paper provides an overview of AMI (Advanced
Metering Infrastructure), including the cost savings
and environmental benefits it can provide. It then
looks at how ZigBee fits into this picture, and the
ways in which ZigBee (together with its Smart Energy
application profile) is ideally suited for the
development, delivery and on-going support of AMI
solutions.
Introduction
Utility companies are under pressure. Growing
populations are using increasing amounts of power,
which is putting a strain on existing supplies. In many
countries (including the US) the increase in demand
is growing at a faster rate than transmission capacity.
And the cost of providing power is also increasing
due to higher fuel prices and increases in the cost of
construction and capital expenses.
To make things even more challenging, governments
around the world are introducing new regulations
and guidelines to reduce emissions. And many
countries have deregulated the energy sector in
recent years, which has led to greater competition
along with consumer demand for more control over
power usage and costs.
This has forced utilities to rethink traditional supply
and billing practices.
AMI puts more control into the hands of both utilities
and consumers by giving them more detailed
information about consumption. This allows utilities
to better regulate supply and to refine their pricing
structure based on demand cycles. It also gives
consumers immediate feedback about their usage,
allowing them to reduce consumption by turning off
things they don’t need and switching others over to
non-peak demand times when prices are lower.
Initial trials of AMI in North America and Europe
show decreases in power usage, which has the dual
benefit of saving consumers money while helping
utilities to better manage supply during peak periods.
Lower energy use during peak times also means less
need for new generating stations, which is one of the
easiest and least expensive ways for utilities to
reduce emissions.
But that’s not all AMI can do, especially when it is
implemented and managed using ZigBee.
What are smart meters?
AMI starts with smart meters
(electricity, gas and water), which
provide many benefits over
traditional meters:
• Detailed energy usage data is
collected continuously at
regular intervals (for example, every 30 minutes),
which provides a good level of granularity. The
additional details collected provide utilities with
greater control over load management, and
allows consumers to adjust their usage to reduce
costs.
• Smart meters can be read remotely via an
automated process, with usage data sent to the
utility’s management and billing system. (This is
referred to as Automated Meter Reading or
AMR.)
• Two-way communication is available between
the meter and utility, and between the meter
and consumer. This means that in addition to
providing readings, the meter can also receive
(and act on) instructions sent from the utility or
consumer.
• AMI smart meters can be integrated with home,
building and industrial automation systems,
allowing consumers to both monitor and
manage usage remotely (for example, to turn the
heater down a few degrees or turn off an
appliance).
• AMI smart meters can be used to notify utilities
or consumers of malfunctions or potential
problems, such as leaks detected in a water
meter or tampering detected in an electric
meter. They are also able to fix some problems
Going Green with AMI and ZigBee Smart Energy
remotely, for example disconnecting supply in a
potentially dangerous situation.
Smart meters help to provide a complete picture of
current energy and resource usage, which utilities
can then apply to improve reliability and efficiency,
pinpoint energy loss caused by faults (or tampering),
expand consumer choices, and create new rates and
programs.
How does AMI work?
AMI starts with Automated Meter Reading (AMR).
1 Smart meters automatically send their data to
a local collection point (either directly or using
a mesh network).
2 Local collection points forward the meter data
to a central collection point.
3 AMI kicks in when data reaches the central
collection point, using powerful software to
process the meter readings, manage supply and
demand, and keep consumers happy.
One of the key differences between AMR and AMI is
what the utilities do with information after it arrives.
In its most simplistic form,
• AMR uses the information to bill consumers,
passing on cost savings achieved through
automation.
Daintree Networks, 2008
• AMI uses the information to improve reliability
and efficiency, detect faults (and remotely repair
them where possible), create new rates and
programs (such as time-based pricing), empower
consumers through informed energy usage
choices, and comply with government
regulations. Oh, and also to bill consumers,
passing on cost savings achieved through all of
the above.
AMI utilities provide consumers with easy access to
their usage and cost information, typically through
dedicated monitoring hardware or by providing
information over the Internet. This shows at a glance
how much power is being consumed moment-to-
moment and in total, allowing consumers to make
informed choices about usage and associated costs:
• Utilities typically provide a number of pricing
programs aimed at helping consumers reduce
costs by using energy more efficiently (for
example, at times when demand is lower).
• During emergencies or unexpected peak events
utilities can immediately inform consumers
about the situation and recommend actions they
should take. In some instances, AMI is able to
remotely adjust consumer usage (such as turning
off air conditioning) to ensure power can
continue to be delivered where it is needed
most.
The two-way communication available through the
AMI smart meters gives both utilities and consumers
the ability to adjust and control usage remotely.
Appliances and services that are compatible with the
smart meters can form and be managed as a total
integrated system.
AMI and smart homes
AMI becomes really powerful when teamed with a
building automation system, such as a Home Area
Network or HAN.
As the name implies, a HAN is a network within the
home that enables communication between “smart”
devices including HVAC, security, lighting, and
appliances. The ability to remotely control devices
within the HAN (such as adjusting a thermostat or
turning off lights) can be made available to both
consumers and utilities. This helps consumers to
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Going Green with AMI and ZigBee Smart Energy

better manage consumption and cost, and utilities to • Implementation is appropriate given the high
better manage supply and demand, and to react value and relative low cost
quickly during emergencies.
• Potential technology obsolescence is low due to
multiple bridging options
Once installed, the HAN offers the opportunity to
leverage to other applications within the home by
integrating suitable devices and application software.

Benefits of AMI
AMI provides benefits for utilities, consumers and the
environment.
Even though AMI solutions are currently more
expensive to implement up-front than AMR or
traditional meters, the long-term benefits greatly
outweigh any short-term pain:
• Utilities are able to track peak usage times (and
days), which provides them with the ability to
offer consumers greater range of rates and
programs, such as time-based pricing.
• Demand response can enable utilities to keep
prices low by reducing demand when wholesale
prices are high. In recent trials, this has been
A HAN typically provides the following: shown to provide significant savings to all
consumers, not just those who adjust their
• Secure 2-way communication between the AMI usage habits.
Network and the HAN
• Utilities can post meter readings daily (or at
• Load control integration (for example, more regular intervals) for consumers to view,
distributed resource dispatch/control/relaying) which enables consumers to track and modify
• Direct access to usage and other meter data their energy usage. This provides more timely
(such as kWHr, KW, Voltage) and immediate feedback than traditional
monthly or quarterly statements.
• A platform for future customer-owned products
that leverage meter data and utility/grid • Utilities can not only notify consumers of peak
information demand times, but also monitor the extent to
which those notifications cause consumers to
• Three types of communications: public price change their habits and reduce their load during
signaling, consumer-specific signaling, and these periods.
control signaling
• Utilities and consumers both benefit from more
• Communications to other HAN devices with accurate billing that is available thanks to the
metering capability (for example gas and water increased granularity of usage information, for
meter communication, EV and PV sub-metering) example, for individual floors, apartments, or
• The AMI network interface to HAN interface is offices within a building. This gives consumers
based on open standards better control of their power and water usage,
and passes on the biggest savings to those who
use these services most efficiently. It also helps

Daintree Networks, 2008 3

Going Green with AMI and ZigBee Smart Energy
to reduce the number of billing enquiries, and
helps to make those enquiries easier to resolve.
• On-demand meter reading and remote
troubleshooting allow utilities to provide better
and more timely consumer support. Utilities
have more information at hand about outages
and restorations, and are able to provide
consumers with good information about when
power will be restored.
• During emergencies, utilities can create “partial
outages” in non-exempt buildings to ensure that
power remains available where it is most
needed. Partial outages are more economically
efficient than full rotating outages, because the
effects are limited to the reduction of a single
discretionary service such as air conditioning
rather than the elimination of all services.
AMI and the environment
AMI empowers consumers to take more control of
their usage by providing them with detailed
information about their current habits, and showing
the savings they can make by changing those habits.
It doesn’t matter whether consumers change those
habits to save money or save the planet, the result is
the same: the less power they use, the less power
needs to be generated.
“The golden rule about energy and the environment
[is] it’s the energy you do not consume that is the
best investment you can make,” said Quebec premier
Jean Charest.
The ability to better manage supply and demand, and
ultimately not need to build as many new power
stations will not only go a long way towards reducing
emissions, it will also help utilities to satisfy new
“green” legislation.
The same is true for other services such as water. The
less water people use, the better utilities can manage
supply, and the fewer new dams and treatment plants
need to be built.
AMI not only helps to make being green and efficient
more profitable, it also helps utilities and society
better prepare for a sustainable future.
Daintree Networks, 2008
AMI and ZigBee
AMI encompasses many services and appliances
within the home and workplace, all of which need to
be able to communicate with one another. Therefore,
open standards architecture is essential.
Open standards provide true interoperability between
systems, flexible communications choices, and
competition and innovation from third-party
technology providers for applications not currently
envisioned.
In countries where consumers are able to switch
between energy providers, having a common
infrastructure helps to avoid waste, create
efficiencies, lower consumer costs, and ensure
competition.
Having open standards also ensures that utilities can
choose the best-in-class vendor for all types of AMI
components—from the meter itself, to software,
smart appliances, and in-home displays—and have all
components work together.
Open standards also help to future-proof investments
made by both utilities and consumers. If
communication network pricing or technology
change, the AMI components can easily switch to a
new network, as long as it supports the open
standards used for communications.
Using an open protocol typically reduces costs in
implementing: there are no interoperability problems
to solve, and manufacture costs tend to be lower.
At least one public utility authority says that it would
be in the best interest of promoting energy efficiency
if there was just one common protocol. The Texas
PUC says that a single standard to communicate with
devices in a home area network is advisable, and
suggests non-proprietary ones such as ZigBee.
Leading utilities in California and Texas are also
championing ZigBee.
ZigBee was developed by the ZigBee Alliance, a
world-wide industry working group that developed
standardized application software on top of the IEEE
802.15.4 wireless standard.
ZigBee is designed specifically for monitoring and
control of appliances and applications that exist in
our daily lives. The monitoring devices need to be
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Going Green with AMI and ZigBee Smart Energy

able to communicate with each other quickly and ZigBee application profiles are designed to provide
require little maintenance. seamless integration within the network, so that the
Smart Energy profile can be used with ZigBee’s other
Its low power usage makes ZigBee ideal for AMI.
public application profiles, which include Home
Batteries in devices will last for years rather than just
Automation, Commercial Building Automation and
the days or hours achieved using some other
Industrial Automation. This provides a single
standards-based technologies.
integrated solution for controlling energy demand
ZigBee is designed to be easy to incorporate into a and supply both at home and in the workplace.
wide range of devices, which makes it ideal for a
system that includes smart meters, HANs, and Summary
potentially other components into the future.
The challenges and “green” legislation that utilities
ZigBee also provides strong security capabilities to
are facing today, combined with increased demand
prevent mischief, and is extremely tolerant of
from consumers for more flexible offerings and cost
interference from other radio devices, including Wi-Fi
savings, make a solution like AMI both timely and
and Bluetooth.
inevitable.
ZigBee-enabled meters form a complete mesh
Implementing AMI with an open standard such as
network so they can communicate with each other
ZigBee helps to keep costs down, ensure
and route data reliably. And the ZigBee network can
interoperability, and future-proof investments made
be easily expanded as new homes are built or new
by both utilities and consumers.
services need to be added.
The information collected through AMI provides
The ZigBee Alliance has recently announced its
unprecedented insight into energy demand and
“Smart Energy” public application profile (January
usage, allowing utilities and consumers alike to do
2008). ZigBee Smart Energy offers utility companies a
their part to ensure continued and affordable supply
global open standard for implementing secure, easy-
of essential services into the future.
to-use wireless home area networks for managing
energy. The profile also offers product manufacturers You can find out more about ZigBee and the Smart
access to a burgeoning green marketplace by Energy application profile on the ZigBee web site at
establishing a standards-based technology for new www.zigbee.org.
products designed to enhance energy management
and efficiency by consumers everywhere.

Daintree Networks, 2008 5

Going Green with AMI and ZigBee Smart Energy

About Daintree Networks

Based in Fremont, California, Daintree Networks is a leading provider of design verification and operational
support tools for wireless sensor and control networks. In a rapidly evolving industry, accelerated development
and deployment cycles are key to market success. Our professional tools help OEMs, system integrators, and
installers of wireless sensor and control networks speed their time to market. As an active member of the ZigBee
Alliance, Daintree is playing a vital role in bringing the first wave of interoperable standards-based sensing and
control products market.
Daintree’s Sensor Network Analyzer family of products comprise the industry’s most comprehensive solution for
IEEE 802.15.4 and ZigBee development and deployment. For more information, visit www.daintree.net or email
sales@daintree.net

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