Mexico's state-owned electric utility Comisión Federal de Electricidad (CFE) has issued a tender for the deployment of smart electricity meters, according to local media source Milenio.com.
The release of the tender was confirmed by a representative of Cisco Internet of Things in Mexico, Manuel Velasco Rival.
Mr Rival said that Cisco is already working with CFE, but confirmed that the state utility is looking for bids for a second phase of the smart meter rollout in the North-Central area of Mexico called Bajio.
Savings for the utility
Rival noted that the use of smart metering technology could generate savings for CFE of about 40 per cent due to reduced technical and non-technical losses.
The Cisco representative acknowledged that the smart meter deployment would cost several million US dollars, but the return on investment would be over three years.
Support for smart meters
CFE has been installing smart metering over several years, and is expected to significantly ramp up its deployment in the years ahead.
A study by Zpryme in 2013 on Mexico’s smart grid market outlook projects that this market will grow at a projected compound annual growth rate (CAGR) of 25% from US$1.23 billion in 2012 to US$7.42 billion in 2020 – of which a major share will be AMI.
In a further initiative to support smart metering in Mexico, the Inter-American Development Bank (IDB) approved funding in 2013 of US$145,250 to support a field study of smart metering technologies and distributed generation options for low income household developments in Mexico.
The funding will come from the Italian Trust Fund for MIF (Multilateral Investment Fund) Project Preparation.