Socio-Economic Analysis for Adoption of Smart Metering System in SAARC Region: Current Challenges and Future Perspectives

Zain Khalid, Syed Ali Abbas Kazmi (), Muhammad Hassan (), Sayyed Ahmad Ali Shah, Mustafa Anwar, Muhammad Yousif and Abdul Haseeb Tariq
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Zain Khalid: National University of Medical Sciences (NUMS), Rawalpindi 46000, Pakistan
Syed Ali Abbas Kazmi: U.S-Pakistan Centre for Advanced Studies in Energy, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan
Muhammad Hassan: U.S-Pakistan Centre for Advanced Studies in Energy, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan
Sayyed Ahmad Ali Shah: National Transmission and Dispatch Company (NTDC), Islamabad 44000, Pakistan
Mustafa Anwar: U.S-Pakistan Centre for Advanced Studies in Energy, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan
Muhammad Yousif: U.S-Pakistan Centre for Advanced Studies in Energy, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan
Abdul Haseeb Tariq: Alternate Development Services (ADS), Islamabad 44000, Pakistan

Sustainability, 2025, vol. 17, issue 15, 1-41

Abstract: Cross-border energy trading activity via interconnection has received much attention in Southern Asia to help the South Asian Association for Regional Cooperation (SAARC) region’s energy deficit states. This research article proposed a smart metering system to reduce energy losses and increase distribution sector efficiency. The implementation of smart metering systems in utility management plays a pivotal role in advancing several Sustainable Development Goals (SDGs), i.e.; SDG (Affordable and Clean Energy), and SDG Climate Action. By enabling real-time monitoring, accurate measurement, and data-driven management of energy resources, smart meters promote efficient consumption, reduce losses, and encourage sustainable behaviors among consumers. The adoption of a smart metering system along with Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis, socio-economic analysis, current challenges, and future prospects was also investigated. Besides the economics of the electrical distribution system, one feeder with non-technical losses of about 16% was selected, and the cost–benefit analysis and cost–benefit ratio was estimated for the SAARC region. The import/export ratio is disturbing in various SAARC grids, and a solution in terms of community microgrids is presented from Pakistan’s perspective as a case study. The proposed work gives a guidelines for SAARC countries to reduce their losses and improve their system functionality. It gives a composite solution across multi-faceted evaluation for the betterment of a large region.

Keywords: sustainable-development goal; cost–benefit analysis; community grids; microgrids; net metering; SAARC (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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