Abstract

Electricity market designs are continuously undergoing change in an effort to improve and respond to technology, economic and policy changes. Increasing amounts of variable re-newables are a catalyst for additional market evolution. Markets work best when there is transparency between market player. The creation of smarter distribution grid started by developing an advanced metering infrastructure (AMI) and the corresponding communication infrastructure that can take satisfy the communication demands of AMI, as AMI is made up of smart meters which enable almost real-time bidirectional communication. This enables the companies to monitor consumers' energy usage in hourly intervals, as to provide better service. Before the invention of smart meters, power consumption readings were not taking the time of energy consumption into consideration, only the total ammount of energy consumed. Smart meters enable the users to optimize their energy consumption to reduce costs. This paper proposes software architecture, communication protocol selection, and provides solution of AMI integration in distribution smart grid applications.

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