Optimization of Technologies for Implementing Smart Metering in Residential Electricity Supplies in Peru

Abstract

This research evaluates the economic feasibility of implementing smart metering (SM) systems in Peruvian electricity distribution companies, prioritizing the maximization of the benefit–cost ratio (BCR). Seven communication architectures were analyzed in four companies, considering variables such as energy losses, meter costs, and per capita consumption. The results, evaluated through economic indicators such as the net present value, internal rate of return (IRR), and BCR showed that Luz Del Sur (LDS) obtained the best results, while ADINELSA (an electrical infrastructure management company), Sociedad Eléctrica Sur Oeste (SEAL), and Electro Sur Este (ELSE) presented the worst. The combination of power line communication and general packet radio service was the most viable architecture, followed by radio frequency mesh. However, this study concludes that a massive deployment of SM in Peru is not yet economically viable because of low per capita consumption and high meter costs. Future research should consider the benefits of distributed generation and demand management, as well as evaluate new communication technologies.