Manage Energy Better

Why smart metering? In today’s world, the answer is simple: smart metering helps reduce information costs and it helps everyone at every level to manage energy better. With information more readily available at increasingly competitive prices and an energy resources base that is fast depleting, the face of the world is changing rapidly. This chapter looks at the concept of the collapse of information cost (COI) and how it has affected and shaped a once traditional industry that is undergoing a huge shift – metering. If you are reading this, it is likely that you have a good idea about the concept of globalization and how it directly affects you as an individual (your clothes are designed in the USA, assembled in Asia and finishing touches are given in Europe), and how it affects your business (production has been outsourced to Asia, and you regularly hold video conferences with your colleagues around the world). Globalization is a loose term used to describe the context of many changes within our world. But have you ever thought about the factors, whcih drive globalization? Have you heard about the COI? The COI, articulated by Gordon E. Moore, and called Moore’s law, refers to the long-term trend in computing hardware. The idea is that technological development, such as processing speed and memory capacities, is not only increasing rapidly but exponentially, and that this influences the usefulness of digital electronics in nearly every segment of the world economy. The result is that information at every level is more readily available and the face of the world as we know it is changing forever – and at a speed beyond expectation. It also means that, when it comes to business, traditional business models are no longer an option – the dawn of disaggregated value chains began long ago. So how can we cope with this new world order? It is clear that we are experiencing a marked shift between the old and the new world that will see many players left far behind and, on the short- to mid-term, out of the race. Clearly, the objective is to remain in, and hopefully ahead of, the race. For the metering industry, which stands on the verge of vast change, the COI is a key driver. It is influencing the development of the industry as a whole. The winners are the ones who will be able to be flexible, to be able to adapt at a moment’s notice, and to be able to forecast future trends. This, however, is easier said than done.