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I want to use a ADE7953 power metering IC, and I want to interface it with an ESP8266 wifi module. Since the ADE7953 needs to be referenced to mains, and also I don't plan this module to have any sort of physical user interface, I don't think isolation is a must.

The ESP8266 is very power hungry, so probably 1A of current will be needed, so a capacitor dropper seems to be out of the question here.

What sort of power supply can I use for this project?

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You can use any power supply you want (transformer, USB cell phone charger...) provided it delivers the proper voltage and current really...

Of course this supply will be isolated from mains, but that doesn't matter, since you will reference the secondary to mains via a separate connection through the energy meter part of your design.

Also an isolated supply is very useful if you want to program the micro or connect it to your PC to run a debugger for example. Can't do that with a capacitive dropper. So make sure you have a convenient way of removing the connection to mains on the energy meter side (like, by not plugging it in).

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