India Smart Grid Summit 12 February 2014
Mar 30, 2015
India Smart Grid Summit
12 February 2014
India’s Energy Sector is evolving significantlyNational Priorities Current Situation Implications
Meeting Demand Shortage
• Chronic power shortages
• Rapid demand growth
• Inadequate energy access
• Augmentation of generation capacity
• Power evacuation and grid access
Clean Energy Deployment
• RE capacity increasing ~ 3000+ MW added each year
• Require smarter systems for power balancing to deal with variability & unpredictability
Operational Efficiency Improvement
• Poor operational efficiency
• High system losses
• R-APDRP has provided much needed support
• Need for ability to control and monitor power flow till customer level
Enhancing Consumer Service Standards
• Poor system visibility
• Lack of reliability
• Real time system to enable better system visibility and consumer participation
Smart Grids can transform the existing grid into a more efficient, reliable, safe and enable address sector challenges. Evolution has
already started.
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Several Application areas have emerged
Key Application Areas
Electricity Distribution
Electricity Markets
Environmental Markets
Renewable Energy
Energy Storage
Transport
Industrial Energy Efficiency
Building Energy Efficiency
Source: http://www.renesas.eu/ecology/eco_society/smart_grid/
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Development potential & issues across various application areas
Application Area(Current Status) Business Issues Potential/Importance of
Smart Grids
Distribution
• Inefficient• Huge Theft• Poor customer service &
reliability
• Lack of measurements and controls
• Antiquated technologies• Poor business orientation
• High (can bring rapid technological upgradation)
• Supports loss reduction and demand response
Markets
• >10% of overall electricity sale
• Affected efficiency gains• Send price signals to
consumption (distribution)
• Poor networks. Problems in open access
• Inadequate Business Processes and Controls
• Poor cost signaling
High (Open access and controls can be very effectively supported)
Industrial Energy Efficiency
• Improving rapidly • Signalled by environmental
market
• Lack of awareness• High (SG enables better load
management through DSM and DR)
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Application Area(Current Status) Business Issues Potential/Importance of
Smart Grids
Environmental Markets (REC, PAT)
• Nascent, developing fast• Closely linked to energy
efficiency & renewables
• Nascent, does not provide confidence to investments
• Baseline definition issues in (PAT) and monitoring
• Trading system needs refinement
• High (SG can provide a strong information and controls base and also enable response to price signals)
Renewable Energy
• Fast developing • Fills India’s Energy void
• Variability management & storage
• Transmission networks and controls
• Very High (SG can assist in grid integration, forecasting, balancing and storage)
Energy Storage
• Nascent in India • Closely linked to RE & EE
• Expensive• Technological up-gradation• Space requirements
• High (Has applications in energy storage, enabling provision for balancing power & islanding during blackouts)
Development potential & issues across various application areas
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Application Area(Current Status)` Business Issues Potential/Importance of
Smart Grids
Transport
• Largest energy sub-sector after electricity
• Pollution a significant issue• Only Hybrid Vehicles (fossil fuel +
EV) available• Current focus only on mobility
and associated environmental issues
• EVs are expensive
• Inadequate infrastructure for deployment and proliferation
• Regulatory Issues
• High
• SG can integrate with grid and reduce short term power purchase; use as balancing resource; peak load management)
Building Energy Efficiency
• Fastest growing energy consuming sector
• Widely varying energy efficiency levels
• Lack of awareness among builders and consumers
• High initial cost of EE appliance
• High.
• Smart Grid can enable real time consumption monitoring and control;, enabling reduction of wasteful consumption
Development potential & issues across various application areas
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In 2013, Government of India (GoI) has adopted a National Smart Grid Vision for India with following objective:
"Transform the Indian power sector into a secure, adaptive, sustainable and digitally enabled ecosystem that provides reliable and quality energy for all with active participation of stakeholders”
Smart Grid Roadmap provides several targets to be met
Key Targets and Highlights are as follows:
12th Plan 13th Plan 14th Plan
Completion of ongoing smart grid pilots
Augmentation of data centres and communication network for AMI Roll out
Distribution Automation & GIS/Automated distribution s/stns.
Development of indigenous smart meter
Dynamic tariffs, Sustainability Initiatives –promoting distributed generation
Development of 50 Smart cities.
Mandatory roof top solar Total Renewable integration
of 130 GW; 10% EV penetration
Nationwide AMI roll out for customers
Continuous Research &Development ;
Choice of electricity supplier Stable 24X7 power supply
Nationwide AMI roll out for customers >10KW load
Mandatory Roof Top Solar for large establishments
Total Renewable integration of 80GW;
EV charging infrastructure Development of micro grids
in total 10000 villages Distribution Automation
Existing initiatives and activities will need to be scaled up
India Smart Grid Task Force (ISGTF)
Created under the Ministry of Power (MoP) to provide policy direction to the Smart Grid initiatives in the country
India Smart Grid Forum (ISGF)
PPP initiative of MoP to support ISGTF, responsible for helping the stakeholders in the deployment of smart grid technologies and undertaking research work for promotion of such technologies
14 Pilot Projects
14 smart grids pilots have been proposed to be implemented across various stages through support from the GoI.
There are utilities like BESCOM, Tata Power Delhi Distribution Limited, CESC etc. who have started their own initiatives
There are also several additional initiatives that various entities have been undertaking working in their domain for smart grid support and
implementation in India- CEA, BIS, CPRI, BEE etc.
National Smart Grid Mission aims to further strengthen the above initiatives
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• Smart Grids cannot evolve without dynamic, flexible regulation
• The regulator will be a facilitator to smart grids business
• Discoms need to demonstrate clear positive benefits to consumers
• Regulators more than ever need to protect the interests of the consumers
Investment Approval
Recovery through Tariff
Promoting end use
Providing Incentives
Delivering policy objectives.
Ensuring value and protection to customers
A conducive regulatory framework will also be critical
Regulations will need to deal with multiple aspects
New Players• Consumers
• 3rd party service providers
New Resources• Distributed
• Demand-side• Consumer owned
Changing Investment Scenario
• Bigger Values• Riskier Technologies• Longer lead-times for
realization of full benefits
New Standards• Technology
• Interoperability• Cyber security
New Products
• Tariffs (Dynamic, pay for what you use etc.)
• Incentives to participate• Penalties for non or
poor performance
New Technology
• AMI• Electric Vehicles
• Energy Storage etc.
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Scope of Smart Grid Regulations
Approval of Smart Grids investments consistent with the objectives
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Tariff design for enabling consumers, prosumers and utilities to derive benefits of the SG investments
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Incentive/dis-incentive design for promoting deployment
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Adoption of relevant equipment, communication and interoperability standards and codes
5Security of network operations, particularly with respect of cyber security
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Protection of consumer privacy, maintaining integrity of data
4Integration of Renewable/Distributed Generation for better grid visibility and efficiency
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Entities may be required to demonstrate adherence to the requirements stipulated herein through appropriate reporting structures (preferred
through automated means with minimum human intervention)
Initiative on this has already started
A facilitative regulatory framework for promoting smart grid investments and applications is being laid out in India.
Through the Ministry of Power and the Forum of Regulators in India, model smart grid regulations are under development.
– Mr. B N Sharma, Joint Secretary (Distribution), MoP (Chairman)– Mr. Pravinbhai Patel, Member (Technical), GERC– Mr. Alok Gupta, Member, MPERC– Mr. Pankaj Batra, Chief Engineer, I/C, CEA– Mr. S A Soman, Professor, IIT-Mumbai– Mr. N. S. Sodha, Executive Director, PGCIL Ltd. (Convenor)
Draft regulations validated by the Committee has been presented to the Forum of Regulators
A Technical Committee constituted by MoP for development of SG Regulations has been formed
Thank YouAnish De, Chief Executive OfficerMercados Energy Markets India Private Limited1202, Tower B, Millennium Plaza, Sector 27Gurgaon, Haryana - 122002, IndiaTel: +91 124 4241750 | Mobile: +91 9810453776 | Fax: +91 124 4241751 [email protected] | www.afconsult.com | www.mercadosemi.es
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Functionalities of SG Utility pilots aim to address several issues plaguing the distribution segment
Power Demand Shortage
Demand Side Management Demand Response
Peak Load Management
Clean EnergyRenewable Energy
IntegrationDemand Response (for balancing)
Loss Reduction/ Operational Efficiency Improvement
Theft Management & Tamper Detection
Asset MonitoringMeter Data
Management System
Substation Automation AMI
Consumer Service Standards
Power QualityWork Force/Crew
ManagementOutage
Management
Automatic Billing Consumer portal
National Priorities
Smart Grid Interventions proposed under the 14 GOI Pilots
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Smart Grid Regulations Coverage
• Implement specific Tariff Structure to promote deployment
• Process of tariff setting
Tariff Design
Product Standards
System Standards
Performance Standards
Network and Communication Standards
Customer Data Protection Standards
Safety and Standards
Review and Approval of Smart Grid Investments
Recovery of Costs
Role of Smart Grid Consultation Committee (SG-CC)
Evaluation, Measurement & Verification
Investment
Constitution of Smart Grid Cell
Appointment of Nodal Officer
Smart Grid Cell and Nodal
Officer
Awareness and Capacity Building
Customer Participation and Incentives
Consumer or Prosumer Dispute Redressal Process
Customer Engagement
While the regulations provides details of various themes, in certain cases it interfaces with the developments/standards and process already laid out in various
documents
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Objective of Smart Grid Regulations
Considering early stages of development, provides flexibility to experiment with new technologies and applications while duly protecting the legitimate interests of consumers and prosumers
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Takes into consonance the National & State Roadmaps, and aims to propagate investments in SG and allied technologies in accordance with these roadmaps
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By greater technology adoption across the value chain in electricity sector (especially in T&D)
Efficiency in generation and licensee operations
Manage T&D network effectively Enhance network security Integrate renewable and clean energy into
the grid Enhance network visibility and access Improve customer / prosumer service level
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