Advanced Metering Infrastructure technology is developing rapidly, offering an increasingly significant value proposition for energy providers and customers alike. Regulators are also placing an increased focus on the technology to meet customer needs and growing system demands.

McKinsey & Company has developed a valuation model which will assist those evaluating an AMI deployment in determining a preliminary project valuation. The goal behind developing this model is to facilitate increased standardization across utilities, regulators, customer advocacy groups, and AMI vendors in assessing the costs and benefits of such a solution. To meet this objective, the model is currently being made available at no cost to users.

The model is not intended to cover all relevant analysis for an AMI business case, but is limited in scope to a simple NPV analysis to help assess the feasibility of the project. Further details of the intended use and limitations are available in the user guide. Users are responsible for determining the appropriate inputs for their own situation and for validating all results.

Please use the link at the bottom of this page for feedback and suggestions on the model. McKinsey & Company may update the model at any time. We welcome your suggestions and feedback.

Note: The model shown will support an Electric, Gas, or combined utility but it can also be adapted for other uses.

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