SUMMER INTERNSHIP REPORT PREPARATION OF “DETAILED ...

SUMMER INTERNSHIP REPORT

IMPLEMENTATION OF INFORMATION TECHNOLOGY-THE FUTURE OF

INDIAN POWER DISTRIBUTION SECTOR

&

PREPARATION OF

“DETAILED PROJECT REPORTFOR STRENGTHENING OF

EXISTING DISTRIBUTION NETWORK OF BIHAR STATE”

{UNDER BRGF SCHEME PHASE II }

TO MEET THE PROSPECTIVE LOAD DEMAND FOR XIITH

5 YEAR

PLAN (2012-17)

UNDER THE GUIDANCE OF

Dr. ROHIT VERMA, DY. DIRECTOR (NPTI)

&

Mr. RAVI DESHMUKH (MD) (PPS ENERGY SOLUTIONS LTD.)

Submitted by

HEMANT KUMAR MAKODE

ROLL NO: 34

MBA – Power Management

Affiliated to

AUGUST 2013

i

DECLARATION

I, Hemant Kumar Makode, Roll No 34, student of MBA-Power Management (2012-14) at

National Power Training Institute, Faridabad hereby declare that the Summer Training Report

entitled “IMPLEMENTATION OF INFORMATION TECHNOLOGY-THE FUTURE

OF INDIAN POWER DISTRIBUTION SECTOR” is an original work and the same has

not been submitted to any other Institute for the award of any other degree. A Seminar

presentation of the Training Report was made on _____________ and the suggestions as

approved by the faculty were duly incorporated.

Presentation In-Charge Signature of the Candidate

Counter signed

Director/Principal of the Institute

ii

ACKNOWLEDGEMENT

To acknowledge here, all those who have been a helping hand in completing this project,

shall be an endeavour in itself.

Nevertheless with all due regards and respect to the contributions made by various persons at

each stage of the project, I take this as an opportunity to thank all those who have been

instrumental in completion of my project ―IMPLEMENTATION OF INFORMATION

TECHNOLOGY-THE FUTURE OF INDIAN POWER DISTRIBUTION

SECTOR‖&PREPARATION OF “DETAILED PROJECT REPORT FOR

STRENGTHENING OF EXISTING DISTRIBUTION NETWORK OF BIHAR

STATE”{UNDER BRGF SCHEME PHASE II }TO MEET THE PROSPECTIVE

LOAD DEMAND FOR XIITH

5 YEAR PLAN (2012-17).

I thank to Mr. Ravi Deshmukh, Managing Director, PPS ENERGY SOLUTIONS LIMITED

for giving me the opportunity to execute my Summer Internship Project.

I would also like to thank my Project In-charge Dr. Rohit Verma Dy. Director, NPTI and Ms.

Manju Mam, Director, NPTI who always assisted me in every possible manner.

I feel deep sense of gratitude towards Mr. J. S. S. RAO, Principal Director Corporate

Planning, NPTI, Mr. S. K. Chaudhary, Principal Director, Dept. of Management Studies and

Ms. Indu Maheshwari, Dy. Director, NPTI for arranging my internship at PPS Energy

Solutions Ltd. and being a constant source of motivation and guidance throughout the

course of my internship.

I also extend my thanks to all the faculties and my batch mates in Dept. of Management

Studies (NPTI), for their support and guidance throughout the course of internship.

Thank you all for being there for me always.

HEMANT KUMAR MAKODE

iii

EXECUTIVE SUMMARY

Electric power distribution system is an important part of electrical power systems in delivery

of electricity to consumers. Electric power utilities worldwide are increasingly adopting the

computer aided monitoring, control and management of electric power distribution system to

provide better services to their consumers. Therefore, research and development activities

worldwide are being carried out to automate the electric power distribution system utilizing

recent advancement in the area of IT (Information Technology) and data communication &

control system. This report presents the current and past status of the research and

development activities in the area of electric power distribution automation in India. This

report also discusses the future perspectives, in Indian power sector context, available to the

distribution utilities for further advancements in their process automation. The information

given in this paper is useful to electric power distribution utilities in the area of power

distribution automation.

State of Information Technology

It has been observed by the IT Task Force that the approach of the various distribution

utilities towards IT has been piecemeal with standalone applications deployed for a limited

operational requirement. In other words, IT has been used as a tool to address a specific issue

or two at a time and not as a long-term, holistic strategy. While Indian IT sector has helped

numerous organizations around the globe derive substantial benefits from application of IT,

there is plenty of room for IT application within the power sector in India. There is a need to

look at the global practices in IT adoption in the power sector so that India can benefit from

it. The IT task force is of the view that the gap in IT adoption globally and in the Indian

power sector is apparent and glaring and even the rate of overall technology adoption in India

is on the lower side. Globally IT is being used to enable operations at a transaction level thus

providing advantages like in-built process controls, workflow enabled transactions, single

point of data capture and support for timely strategic decision making. On the other hand, in

India, the core operations are still manual and therefore face issues like ad-hoc decision

making, poor data quality, long decision making cycles and underutilization of IT

investments. In order to reap the benefits of IT, the wide gap between India and global best

has to be bridged.

iv

INFORMATION TECHNOLOGY ROADMAP

Globally, IT is approached in a very systematic and well thought out manner using the

concept of an IT blueprint. The IT task force, therefore, recommends the creation of a

comprehensive IT blueprint for the Indian power sector that incorporates the global best

practices. This report is a step forward in this direction and provides a framework for the

creation of a blueprint regarding present condition of automation in Indian Power Sector and

the scope of further development to automate the distribution process.

v

LIST OF ACRONYMS

AC Alternating Current

AMI Automated Metering Infrastructure

AMR Automated Meter Reading

APDRP Accelerated Power Development & Reforms Program

ATM Automatic Teller Machine

BI Business Intelligence

BPL Broadband over Power Lines

BRPL BSES Rajdhani Power Limited

BSES Bombay Sub-Urban Electricity Supply Company

BYPL BSES Yamuna Power Limited

CDMA Code Division Multiple Access

CEA Central Electricity Authority

CERC Central Electricity Regulatory Commission

CIS Consumer Information System

CRM Consumer Relationship Management

CRN Customer Reference Number

CTI Computer Telephony Integration

DA Distribution Automation

DAS Distribution Automation System

DC Direct Current

DISCOMs Distribution Company

EAM Enterprise Access Management

EBPP Electronic Bill Presentment & Payment

EDM Energy Data Management

ERP Enterprise Resource Planning

FI-CO Financial Accounting – Controlling

FLC Fuzzy Logic Control

FY Financial Year

GIS Geographic Information System

GPRS General Packet Radio Service

GSM Global System for Mobile Communications

GUI Graphic User Interface

HMI Human Machine Interface

HVDS High Voltage Distribution

ICS Industrial Control Systems

ICT Information and Communication Technology

IED Intelligent Equipment Devices

IIT Indian Institute of Technology

IT Information Technology

IUT Intelligent Universal Transformer

IVRS Interactive Voice Response System

vi

IWF Interworking Function

LCD Liquid crystal display

LT Low Tension

MDM Meter Data Management

MIS Management Information System

MRI Meter Reading Instrument

NCT National Capital Territory of Delhi

NHPC

National Hydro-Electric Power

Corporation

NTPC National Thermal Power Corporation

OLAP On-Line Analytical Processing

OTS Optical Tracking System

PAD Packet Assembly Disassembly

PDSL Power Line Digital Subscriber Line

PLN Power Line Networking

PLT Power Line Telecom

PN Pseudo Random

RF Radio Frequency

RTU Remote Terminal Units

SCADA Supervisory Control and Data Acquisition

SCM Supply Chain Management

SFA Sales Force Automation

SIM Subscriber Identity Module

SOA Service-Oriented Architecture

TOD Time of day

TPDDL Tata Power Delhi Distribution Ltd

WMS Warehouse Management System

XML Extensible Markup Language

vii

LIST OF FIGURES Figure 1 – Organization Setup ..................................................................................................... 6 Figure 2 – Organization Services................................................................................................. 6 Figure 3 – Typical Power Transmission and Distribution Scenario with DA components ..22 Figure 4 – A Graphic of the Components Involved in AMI ....................................................29 Figure 5 – Distributed micro-grid Power System .....................................................................32 Figure 6 – Benefits of Information Flow across the Organization ..........................................35 Figure 7 – Distribution Business Value Chain and Typical IT Applications .........................36 Figure 8 – Indicative Roadmap for Applications under the Four Categories ........................38 Figure 9 – Current Billing System ..............................................................................................40 Figure 10 – Integrated Billing System ........................................................................................40 Figure 11 – Energy accounting System ......................................................................................41 Figure 12 – Extended Business Interaction System ..................................................................41 Figure 13 – IS-U/CCS as a component in the ERP solution ....................................................43 Figure 14 – Functional Scope of SAP IS-U ................................................................................43 Figure 15 – IS-U/CCS as an integrated component of the SAP enterprise information

system ............................................................................................................................................44 Figure 16 – Integration with other SAP and non-SAP Solutions (An example) ....................44 Figure 17 – The Oracle Solution Footprint for Utilities ...........................................................45 Figure 18 – Layer Interaction in Service-Oriented Architecture ............................................46 Figure 19 – Delivery Channels for ERP System .......................................................................47 Figure 20 – AMR Architecture ...................................................................................................48 Figure 21 – Wireless AMR ..........................................................................................................49 Figure 22 – GSM Bases AMR .....................................................................................................50 Figure 23 – Data Transfer over CDMA .....................................................................................51 Figure 24 – Power Line Communication Network ...................................................................52 Figure 25 – Objectives for ERP implementation by discoms ..................................................55 Figure 26 – A Typical BSES AMR Screen ................................................................................62 Figure 27 – BSES Bill Payment System .....................................................................................63 Figure 28 – A handy illustration to calculate the power consumption ...................................64 Figure 29 – BSES IVRS Service .................................................................................................65 Figure 30 – BYPL - AT&C Loss Reduction ..............................................................................66 Figure 31 – TPDDL SAPISU Login screen................................................................................71 Figure 32 – TPDDL - Power at your Fingertips........................................................................72 Figure 33 – Business Intelligence Solution Architecture ..........................................................77

TABLE OF CONTENTS

Table of Contents

DECLARATION ..................................................................................................................................... i

ACKNOWLEDGEMENT ...................................................................................................................... ii

EXECUTIVE SUMMARY ................................................................................................................... iii

State of Information Technology .................................................................................................... iii

INFORMATION TECHNOLOGY ROADMAP ....................................................................................... iv

LIST OF ACRONYMS .......................................................................................................................... v

LIST OF FIGURES .............................................................................................................................. vii

1.1 INTRODUCTION ............................................................................................................................ 2

1.2 PROBLEM STATEMENT ............................................................................................................... 2

1.3 OBJECTIVE OF THE PROJECT..................................................................................................... 2

1.4 SIGNIFICANCE OF THE PROJECT .............................................................................................. 3

1.5 COMPANY PROFILE ..................................................................................................................... 4

1.5.1 About the organization ............................................................................................................... 4

1.5.2 ORGANIZATION SERVICES ................................................................................................. 6

1.5.2.1 Energy Management ....................................................................................................... 6

1.5.2.2 Consultancy ..................................................................................................................... 7

1.5.2.3 Infrastructure Development & Maintenance ................................................................... 7

1.5.2.4 Project Management ....................................................................................................... 7

1.5.2.5 Critical Assessment of PPS Energy Solution Ltd. .......................................................... 7

1.5.3 SWOT ANALYSIS ................................................................................................................... 8

1.5.2.6 Strengths ......................................................................................................................... 8

1.5.2.7 Weakness ........................................................................................................................ 8

1.5.2.8 Opportunities ................................................................................................................... 8

1.5.2.9 Threats ............................................................................................................................. 8

2.1 REVIEW OF LITERATURE ................................................................................................... 10

2.2 RESEARCH METHODOLOGY .............................................................................................. 19

3.1 INDIAN POWER SECTOR OVERVIEW ............................................................................... 21

3.2 ELECTRICITY DISTRIBUTION IN INDIA .......................................................................... 22

3.3 HOW DOES POWER REACH US? ........................................................................................ 22

3.4 BOTTLENECKS IN ENSURING RELIABLE POWER ......................................................... 23

3.5 PRESENT STATUS OF POWER DISTRIBUTION BUSINESS ........................................... 25

3.6 AUTOMATION IN POWER DISTRIBUTION ...................................................................... 28

3.7 NEED TO AUTOMATE .......................................................................................................... 29

3.8 DISTRIBUTION AUTOMATION SYSTEM .......................................................................... 29

3.9 METERING& BILLING SYSTEM ......................................................................................... 30

3.10 SCADA ..................................................................................................................................... 31

3.11 GIS ............................................................................................................................................ 32

3.12 THE SMART GRID VISION OF INDIA ................................................................................ 33

3.13 DRIVERS IN INDIA ................................................................................................................ 34

3.13.1 Supply shortfalls ........................................................................................................... 34

3.13.2 Loss reduction ............................................................................................................... 34

3.13.3 Managing the ―human element‖ in system operations .................................................. 35

3.13.4 Peak load management .................................................................................................. 35

3.13.5 Renewable energy ......................................................................................................... 35

3.13.6 Technological leapfrogging .......................................................................................... 35

3.14 WHAT,EXACTLY, IS A SMART GRID? .............................................................................. 36

3.15 SOLUTIONS FOR DISTRIBUTION UTILITIES ................................................................... 37

3.16 IT STRATEGY AND PLANS .................................................................................................. 40

3.16.1. Advanced applications ...................................................................................................... 42

3.17 INTEGRATED BILLING SYSTEM FOR LARGE C&I ........................................................ 43

3.18 ENTERPRISE RESOURCE PLANNING ................................................................................ 44

3.18.1. SAP Utilities .................................................................................................................... 45

3.18.2. ERPModelling of Distribution Business .......................................................................... 47

3.18.3. Oracle ERP ....................................................................................................................... 48

3.18.4. Service-oriented architecture ........................................................................................... 49

3.19 AUTOMATED METER READING ........................................................................................ 51

3.19.1. Touch Technology ........................................................................................................... 52

3.19.2. Wireless Technologies ..................................................................................................... 52

GSM Based Technology ............................................................................................................... 53

Transmission Protocols ................................................................................................................. 54

Communication Terminology ........................................................................................................ 54

CDMA Based Technology ............................................................................................................. 54

3.19.3. Power Line Communication System (PLC) ..................................................................... 55

4.1 IT IN POWER ........................................................................................................................... 58

4.1.1 Objectives for ERP Implementation ............................................................................. 58

4.1.2 Challenges during ERP Implementation: ...................................................................... 59

Process Mapping: .......................................................................................................................... 60

Data Migration: ............................................................................................................................. 60

Change Management: ................................................................................................................... 61

Customisation: .............................................................................................................................. 61

Outsourcing Issues: ....................................................................................................................... 61

Costing and Pay Back Period: ....................................................................................................... 62

Project Scheduling: ....................................................................................................................... 62

4.2 A SURVEY OF DISCOMS (DELHI) ...................................................................................... 62

4.3 BSES (BOMBAY SUB-URBAN ELECTRICITY SUPPLY COMPANY), DELHI .............. 63

4.3.1 Company Profile ........................................................................................................... 63

BSES Yamuna Power Limited (BYPL) ........................................................................................ 63

BSES Rajdhani Power Limited (BRPL) ....................................................................................... 64

4.3.2 System Setup at BSES .................................................................................................. 64

Metering system ............................................................................................................................ 64

Billing System ............................................................................................................................... 66

Collection System ......................................................................................................................... 66

4.3.3 Other IT enabled Practices at BSES.............................................................................. 66

Availing SMS services on 5-54-54-64 .......................................................................................... 67

Electricity Calculator .................................................................................................................... 68

IVRS Service ................................................................................................................................ 69

4.3.4 Implementation Benefits of ERP .................................................................................. 69

4.4 TPDDL (Tata Power Delhi DistributionLtd) ............................................................................ 71

4.4.1 Company Profile ........................................................................................................... 71

4.4.2 Pioneering Technology Initiatives ................................................................................ 72

4.4.3 Automation Initiatives & GIS ....................................................................................... 72

Complaint Management System ................................................................................................... 72

Introduced online connection management by consumers ........................................................... 73

Consumer Relationship Management ........................................................................................... 73

Automated Bill Payment Kiosks for consumer convenience ........................................................ 73

4.4.4 System Setup at TPDDL ............................................................................................... 73

Data Collection Mechanism .......................................................................................................... 74

Metering System ........................................................................................................................... 74

Billing System ............................................................................................................................... 74

Collection System ......................................................................................................................... 75

4.4.5 Advantages of Using SAP ISU to TPDDL and Customers .......................................... 75

4.4.6 TPDDL SAP ISU Login for Consumers ....................................................................... 75

5.1 CONCLUSION ......................................................................................................................... 78

5.2 THE WAY FORWARD – ERP WITH BI ................................................................................ 80

5.2.1 Business Intelligence..................................................................................................... 80

Introduction About State ..................................................................................................................... 85

Power Scenario in the State .............................................................................................................. 85

Background of erstwhile BSEB ........................................................................................................ 87

Unbundling of erstwhile BSEB......................................................................................................... 87

Operationalization of New Entities ................................................................................................... 88

Constitution of Distribution Companies ........................................................................................... 89

Status of power sector in the state ..................................................................................................... 92

Demand Projections .......................................................................................................................... 95

Ongoing Scheme in State ...................................................................................................................... 96

Rajiv Gandhi GrameenVidyutikaran ................................................................................................ 96

R-APDRP .......................................................................................................................................... 96

Feeder Segregation ............................................................................................................................ 96

BRGF- Phase-1 ................................................................................................................................. 97

BRGF Phase II .................................................................................................................................. 97

Estimated yield from the Project and Economic Implications: ............................................................. 98

Program Schedule ................................................................................................................................. 99

2.4.Expenditure Involved .................................................................................................................... 100

Reliability of Cost Estimates and other parameters: ....................................................................... 100

Operational capabilities ...................................................................................................................... 102

Viability .............................................................................................................................................. 103

ANNEXURE 1.................................................................................................................................... 105

ANNEXURE 2.................................................................................................................................... 113

BIBLIOGRAPHY ............................................................................................................................... 114

1

CHAPTER – 1

INTRODUCTION

2

1.1 INTRODUCTION

Reeling under an average AT&C (Aggregate Technical & Commercial) losses of around

33%, (over Rs.35000 Crores of cash loss), it is quite impossible for power distribution sector

to keep up the desired economic pace without major reforms in the power sector, especially

in Distribution. It is an acknowledged fact that the issues involved are complex and no quick-

fix is possible. Technology will have to play a leading role to shorten the reform gestation

period as well as eliminate issue related to "human interference".

Technology innovation can only benefit the sector and system integration has major role to

play in empowering the power supply utilities. There is a huge need for specialized,

customized and upgraded system solution for the power sector. The restructured Rs 500

billion APDRP (Accelerated Power Development & Reforms Program) initiative gives high

priority for implementation of IT (Information Technology) enabled solutions to reduce

AT&C losses.

1.2 PROBLEM STATEMENT

Electric power distribution system is an important part of electrical power systems in delivery

of electricity to consumers. Electric power utilities worldwide are increasingly adopting the

computer aided monitoring, control and management of electric power distribution system to

provide better services to electric consumers. Therefore, research and development activities

worldwide are being carried out to automate the electric power distribution system utilizing

recent advancement in the area of IT and data communication system. At present, power

utilities have realized the need for full scale distribution automation to achieve on-line system

information and remote control system. The main motivation for accepting the distribution

automation in developing countries such as India is to improve operating efficiency of

distribution system. The main idea behind this project is to find business for HCL

Infosystems for IT implementation and automation in the field of power distribution.

1.3 OBJECTIVE OF THE PROJECT

This project report on ―IMPLEMENTATION OF INFORMATION TECHNOLOGY-

THE FUTURE OF INDIAN POWER DISTRIBUTION SECTOR‖ studies the present

3

scenario of automation inpower distribution utilities in Delhi and extends the findings to the

rest of the country. Today the country is facing an energy deficit of about 12%, the Indian

discoms had faced a loss of more than 27% in FY (Financial Year) 2009-10 and the situation

are not any better for the present FY. Although there is tremendous investment being put into

the generating power, including private investment. Yet it does not seem that the loss making

distribution utilities at this rate may be able to buy this power This scenario seems to be

leading to a dark black hole in which the power sector may get pulled into, leading to and

overall power crisis.

The remedy to this situation may be the successful implementation of Information

Technology tools in the power sector. This project basically studies what is the current

situation and further what all options are available to make the scene better. Then various

case studies have been taken up to discuss the successful implementation of this tool.

The scope of the project further extends to

To study & analyze the present scenario of automation in power distribution in India

To study & analyze the development issues in Information Technology

implementation and recommendation.

To study & analyze the operational issues in Information Technology implementation

and recommendation

To study the problems faced by distribution companies in automation of processes

To analyze the various features of the solutions present in the market and their

suitability to individual organizations

1.4 SIGNIFICANCE OF THE PROJECT

It has been observed by the IT Task Force that the approach of the various distribution

utilities towards IT has been piecemeal with standalone applications deployed for a limited

4

operational requirement. While Indian IT sector has helped numerous organizations around

the globe derive substantial benefits from application of IT, there is plenty of room for IT

application within the power sector in India. There is a need to look at the global practices in

IT adoption in the power sector so that India can benefit from it. The task force is of the view

that the gap in IT adoption globally and in the Indian power sector is apparent and glaring

and even the rate of overall technology adoption in India is on the lower side. In India, the

core operations are still manual and therefore face issues like ad-hoc decision making, poor

data quality, long decision making cycles and underutilization of IT investments.

Electric power distribution system is an important part of electrical power systems in delivery

of electricity to consumers. This report presents the current and past status of the research and

development activities in the area of electric power distribution automation in India. This

report also discusses the future perspectives, in Indian power sector context, available to the

distribution utilities for further advancements in their process automation.

1.5 COMPANY PROFILE

1.5.1 About the organization

PPS is an ambitious company, established by enterprising engineering professionals in the

year 2004. The company offers services pertaining to Energy, Engineering and Architecture

to clients across the globe. PPS team is based in Pune, a city known for its Software and

Engineering talent in India. PPS is a rapidly growing company with a team of about 100

people which includes highly trained and experienced Techno-Managers, Analysts, and

Engineers & Detailers. In the PPS philosophy, the client always comes first.

Understanding every clients‟ needs and requirements & to offer customized solutions is an

endeavor undertaken by each one of their employees. PPS prides itself as a technology driven

company. Company believes that use of cutting edge technology can greatly enhance output

& quality, reduce project life cycle & optimize costs in long run.

5

Figure 1- Organization setup

PPS values the natural resources and is committed to preserve them. Company promotes all

environment friendly techniques to the maximum extent. As a natural corollary of their

commitment to the environment & energy efficient structures, the company entered the

energy sector as a service provider to the various arms of the power industry under the name

of PPS Energy Solutions Pvt. Ltd.

PPS Energy Solutions is primarily formed to serve their clients to meet numerous challenges

created by a rapidly growing energy market. They are focused on pro- viding affordable

energy solutions for our clients in energy & power sector.

Energy Consulting

• Cost reduction /Process

• Reengineering/Organisation Design

Policy & Regulations

• Regulatory Economics/ PPP Model/Governance

Development Consulting

• Project Advisory/Bid Advisory/Financial Restructuring/Capacity Building/Energy Efficient Building Advisory

6

1.5.2 ORGANIZATION SERVICES

Figure 2- Organization Services

1.5.2.1 Energy Management

Energy Audits PPS Team offer Energy Audits for:

Process Industries Steel, cement, chemical, etc.

Power Distribution Sub stations, switching stations, distribution feeders, etc.

Commercial Buildings Malls, operating plants, offices, hospitals, colleges, etc.

Generation Units Mini / micro generation utilities

Energy Planning & Optimization

PPS Energy

Energy management

Project Management

Consultancy

Infrastructure Development

& Maintenance

7

PPS do Energy Efficiency studies and provide solutions regarding green building &

lighting simulations.

1.5.2.2 Consultancy

Power Distribution End to end support in distribution loss reduction, asset management,

formulation of various schemes, DPR & claims for various power utilities Renewable Energy

Complete support to clients for establishing renewable power generation units Rural

Electrification Formulation of DPR& schemes for rural electrification.Also supporting clients

for developing rural electrification infrastructure.Power Regulation Offer regulatory support

to power utility companies, transmission companies, generation units, utility consumers,

industries & power market etc for filing petitions & sorting out the problems thereof. Power

Generation Formulation of feasibility report, project report, tariff proposals, power purchase

agreementsand fund arrangements for Mini and Micro projects.

1.5.2.3 Infrastructure Development & Maintenance

We offer Engineering, Procurement, Commissioning & Maintenance services in Power

Sector Power Distribution Provide end to end solutions in erection of distribution substations

and allied works. Power Transmission provide end to end solutions in erection of EHV lines

& allied works.Power Generation Provide end to end solutions in Micro and Mini power

generation units.

1.5.2.4 Project Management

Schedule and budget evaluations Value engineering Constructability reviews Accuracy

checks on cost estimates Monitoring and coordinating daily construction activities Technical

Audits Contract Negotiation and Administration Project Controls and Scheduling Regulatory

Agency Coordination and Negotiation Risk Management.

1.5.2.5 Critical Assessment of PPS Energy Solution Ltd.

Through the process of carrying out several assignments over the past many years, PPS

Energy Solution has accumulated considerable analytical and consulting expertise, backed by

the following organizational capabilities:

An extensive and organized database on power sectors.

Knowledge of key factors of success in different projects and program.

An ability to research emerging global trends, both in specific countries as well as in

energy sectors, based on primary and secondary data.

8

Performance benchmarking & Quantitative and financial modeling

Ability to identify the various types of risks in energy area and suggest appropriate

strategies to mitigate the same.

Ability to work in different geographies on its own and through affiliate partners

1.5.3 SWOT ANALYSIS

1.5.2.6 Strengths

Core team of expert professionals & excellent work culture.

Targeting untapped markets with best management skills and corporate strategy

Time bound targeted goals & promotion of all environment friendly techniques to

the maximum extent.

PPS is certified energy auditing firm for carrying all types of energy audit.

1.5.2.7 Weakness

Company is in the initial stage of growth.

Small team to handle multiple projects.

1.5.2.8 Opportunities

Vast and growing market for energy conservation and energy audits.

Company can grab lots of government projects.

Create awareness among industries regarding energy efficiency.

1.5.2.9 Threats

Number of players has started entering this section of power sector.

Growing competition.

9

CHAPTER – 2

PROJECT STRUCTURE

10

2.1 REVIEW OF LITERATURE

Jayant Sinha (Associate Vice President, Spanco Ltd.) states IT has the potential to contribute

significantly in the power reforms process, particularly in the areas of business process

automation, revenue and commercial management, distribution system automation, CRM

(Consumer Relationship Management) and AT&C (Aggregate Technical & Commercial) loss

reduction. The power distribution utilities in India have initiating major reforms using IT as

the key enabler for improving revenue collection, minimizing AT&C losses, proper energy

accounting and efficient consumer services.

Jimmy C. Huang et al [2000] identifies that the growing number of firms adopting ERP

systems demonstrates not only the increasing dependency of organizations on new

technology, but also an emerging need to evaluate it and to ensure the success of

implementation. Focusing on processes of knowledge sharing and knowledge integration, this

study explores the dynamics of ERP implementation and appropriation based on the

empirical findings from two longitudinal cases. The research findings suggest the need to

take into account how ERP systems change supplier relationships, and also indicate the

importance of clearly defined information and project ownership. Additionally, overcoming

resistance, whether it is created by lack of commitment or time, from the end users is equally

important as well as continuously obtaining support from top management. The research

findings not only extend previous studies related to technology implementation and

appropriation, but also support the usefulness of employing a knowledge-focused perspective

as an effective lens with which to explore the dynamics of technology implementation.

Jacobs and Whybark give an excellent treatise on ERP (Jacobs and Whybark, 2001).

Summary of important issues highlighted by them are given below:

ERP leads to information integration for the various functions of the business like

Accounts, Finance, Marketing, Sales, Production, Vendors, and Distribution etc. It

provides the benefit of single data entry, immediate access, and common data. Data

are updated in real time, meaning that when data is entered into the system, the

11

changes are immediately available to everyone.

Prevailing Business processes are replaced by best practices.

Organizations with multi-plants located all around the globe are benefited the most.

If information is available quickly and accurately, then resources are put to better and

more efficient use.

ERP implementation is not an easy task. There are horror stories of implementation

failures. It assumes all people problems are solved and people cooperate. 'Roles' of

some people change significantly due to ERP. This brings in resistance to change

which needs to be handled properly.

Do not implement everything on ERP, most critical areas where information

integration is essential, could be put on ERP first.

Manish Agarwalet al [2003] discusses the privatization of the distribution operations of the

Delhi Vidyut Board, in July 2002. The state owned utility that served the 14 million people of

metropolitan Delhi, may represent the dawn of a new era for India. The Government of New

Delhi (Delhi Government) was able to sell majority stakes in three distribution utilities

covering the entire metropolitan area even though the total operational and commercial losses

were close to 50%. How was the Delhi Government able to complete this transaction?

Several key economic and regulatory factors were identified in their paper, which includes:

A willingness to set a clear subsidy system in place to support a transition path to full

commercial activity;

A willingness to establish companies with a sustainable level of liabilities even

though this required leaving around 85% of the existing liabilities with a state-owned

holding company; and

The establishment of key elements of a multi- year tariff regime.

In addition, Delhi opted for the novel approach of requiring that the bidders bid on the basis

12

of a trajectory of commercial and technical loss improvements for the first five years of

private sector operation. This allowed bidders to demonstrate what they felt would be

achievable while also providing consumers with a transparent measure by which the success

of the privatization could be assessed. This is quite different from the standard bidding

approach of requiring that private companies bid a price for an equity interest. In any country

like India where the starting point are tariffs that do not cover costs and unconscionable

levels of technical and commercial losses, any privatization will ultimately be a race to

achieve economic viability before any government provided subsidies run out.

J. Simpandeet al [2003] present their views on integrating the Internet and enterprise resource

planning (ERP) systems in electricity utility companies. As the Internet is a relatively new

development and the electricity industry is in the process of transformation. One key benefit

of implementing ERP systems is to standardize, streamline and organize information shared

across the entire organization. The Internet makes it easier to share and communicate

information across the entire organization. There is also a need for organizations to exchange

information with suppliers and customers to meet information requirements (Deise et al.

2000:65). The key question addressed in their research was: What are the requirements for

integrating the Internet and ERP systems in South African electricity utility companies? In

considering this question, the definition of integration by Goodhue, Wybo and Kirsch

(1992:300) was adopted. They define integration as being able to share information across an

organization to meet information needs of individual business units. The Internet and ERP

systems are part of information systems that organizations depend on when conducting

business. The Internet and ERP systems offer useful functionality in the smooth running of an

organization. It would be very beneficial to integrate or combine the functionality derived

from the Internet and ERP systems to serve the customer better. Integrating the Internet and

ERP systems could only make sense with top-end customers such as companies, institutions

and municipalities because Internet usage among individual household customers is low. The

South African government should provide a white paper to legislate the use of the Internet as

a business tool.

T.J. Smith [2003] says that the business case for AMR (Automated Meter Reading) is solid.

Though expensive to install, AMR systems lower operational costs of utilities and the

potential to lower prices for end customers. Although AMR has been around for a decade,

only 14% of the meters in the US can be read automatically. The other 86% of the meters are

13

still read by meter readers with ongoing personnel and operational costs to match. Similarly,

CIS (Consumer Information System) systems have changed radically from the 1970‘s

version. Modern CIS systems are n-tier, web enabled, business rule object oriented, and

relational database proven technologies. Rather than hard-coding business rules, modern

systems allow for system configuration and ―add-ins‖ to adjust the business rules without

rewriting software. Yet, today,

70% to 75% of the CIS systems are 10 to 15 years. Like other corporate initiatives,

businesses can fail to manage the change properly. If the system implementation and

organization changes are not properly managed, the business will not capture the potential

value of AMR or modern CIS systems. Many utilities, especially smaller ones, may be aware

of managerial shortfalls and thus hesitant to embark upon such a large change. A portion of

the slow pace of adoption for AMR and modern CIS is due to the fear executive possess that

their management team cannot effectively manage the change.

Ram Prakash Gupta et al [2004] describes the indigenous development and implementation

of a Power Distribution Automation system at pilot level in IIT (Indian Institute of

Technology) Kanpur, India. Electric Power DA (Distribution Automation) system is being

increasingly adopted by the electric utilities to reduce the operational problems of distribution

networks. The DA system not only provides system wide status and health monitoring but

also helps in coordinated controls required to enhance quality and reliability of the supply.

R.P. Gupta et al [2005] states electric power distribution system is an important part of

electrical power systems in delivery of electricity to consumers. Electric power utilities

worldwide are increasingly adopting the computer aided monitoring, control and

management of electric power distribution system to provide better services to electric

consumers. Therefore, research and development activities worldwide are being carried out to

automate the electric power distribution system utilizing recent advancement in the area of IT

(Information Technology) and data communication system. This paper reports the present

and past status of the research and development activities in the area of electric power

distribution automation both in developed as well as in developing countries. The information

given in this paper is useful to electric power distribution utilities and academicians involved

in research and development activities in the area of power distribution automation. At that

time in North America, power utilities have realized the need for full scale distribution

14

automation to achieve on-line system information and remote control system. This is required

in order to fully accomplish the restructuring of GENCOs (Generation Companies),

TRANSCOs (Transmission Companies), DISCOs (Distribution Companies) and ESCOs

(Energy Service Companies) of the power system to the level of retail wheeling. On the other

hand, the main motivation for accepting the distribution automation in

developing countries such as India is to improve operating efficiency of distribution system.

This indicates worldwide interest for distribution automation at present. Looking at the

interest of power utilities for distribution automation, academic institutions are now taking

interest to introduce courses and R&D (Research & Development) activities in the field of

distribution automation in the regular academic curriculum. A list of possible research areas

and activities for future is also proposed for power distribution automation.

Sharma, R.R.K. et al [2005] evaluates the use of ERP (Enterprise Resource Planning)

systems in the organizations for information integration and aligning & streamlining their

processes for delivering high value to the customers. Through its very use, it influences

manager's jobs and the organization structure as well. Their paper seeks to evaluate the

impact of ERP on organizations, and examines the ways manager's job and organization

structures have changed. They had investigated effect of ERP implementation on five

dimensions of Manager's job (autonomy, use of power, delegation, people skills and

privileged information), five dimensions of organizational structure (specialization,

formalization, centralization, standardization and complexity of work flow) and on the

flexibility of organization. They carried out a study in the three plants of a leading motor

company in India. It was found that use of power significantly increased in all the three

plants. This was thought to be related to the 'change management' associated with ERP

implementation in the firm. This could also be due to strategic shift in the firm's position

(firm had now become a 'prospector" from its earlier state of 'defender' (in the framework of

Miles and Snow et al (1978)) which led to increased 'decentralization' and 'delegation' which

increased 'autonomy' of the managers. Managers at the middle level felt that there was

significant increase in the amount of 'privileged information' available with them. Need for

maintaining informal relations for discharging official duties also remains nearly same for

15

senior and middle level managers; however, lower level managers felt that the need for

maintaining informal relations to discharge official duties has decreased. It was also found

that in all three plants that the specialization, formalization and standardization had

significantly gone up. Using this empirical finding and the theoretical ideas of Frederickson

(1986) they propose that if a 'defender" implemented ERP then it will lead to erosion of

'autonomy' of its managers. Thus this pilot study brings out that ERP implementation has

significant effect on manager's job and organization structure.

Tae-Il Choi et al [2008] says that a communication system plays an important role in DAS

(Distribution Automation System), and various communication media have been applied to

meet the utility‘s objective. Distribution automation technology using CDMA (Code Division

Multiple Access) wireless communication network have been developed and shown its cost

effectiveness and durability through the field test. Several system components for CDMA

such as gateway, packet assembly disassembly and modem had been newly developed and

their interfaces are standardized. Establishing a separate control channel for interworking

function from central station, system reliability is significantly improved in the case of event

processing. CDMA network would be applied to a small-scale DAS which could have a

difficulty in constructing a communication network in an economic way, while fibre-optic

cable would be applied to a large-scale DAS which needs high speed and reliability in a big

city. Distribution automation technology using CDMA wireless communication network,

which has the widest service area all over the country, has been developed and shown its cost

effectiveness and durability through the field test. Several system components for CDMA

such as gateway, PAD (Packet Assembly Disassembly) and modem have been newly

developed and their interfaces are standardized. Demonstrating the superior reliability

compared with other communication media, CDMA network for DA is expected to replace

existing communication media for DAS. As the commercial network is used, maintenance for

the communication network is not necessary. Like other wireless network, CDMA terminals

can be installed inside the control box of automatic switch at any place in distribution line

and easily moved at any time. Establishing a separate control channel for IWF (Interworking

Function) from central station, system reliability is significantly improved in the case of event

processing. The CDMA network would be applied to a small-scale DAS which could have a

difficulty in constructing a communication network in an economic way, while fibre-optic

cable would be applied to a large-scale DAS which needs high speed and reliability in a big

city. Frequent communication errors owing to the lack of communication channels can be

16

resolved by using CDMA network without establishing an additional communication

channel. A region that requires repeated maintenance and transfer is more suitable for CDMA

network utilizing the unsolicited message from remote terminals.

AbhijitArvindBhure [2008] in his report describes AMI (Automated Metering Infrastructure)

as a subject widely talked about at various energy departments of state government,

regulatory commissions, utility companies, energy forums and among the product vendor

community. The debate whether AMI should/shouldn‘t be implemented is going on since

quite a few years and recently got the much required boost by way of the commencement of

Energy Policy Act 2005 in USA and department of infrastructure in Victoria State in

Australia. Utilities across the world are trying out pilots at various locations to see the

feasibility of roll out and meter vendors are trying to push their product range through the

utility‘s throat. This is taking place due to the lack of clear direction and lack of consensus

among the stakeholders from the regulatory perspective. Government departments have come

out with Act/laws in various countries to promote the AMI implementation. But the clear

mandate is missing in these directions from the authorities. This article brings out the Govt.

regulatory perspective towards AMI, challenges in the implementation processes, collection

of best practices for approach to implementation. The benefits of the AMI/MDM (Meter Data

Management) system are apparent but the need is to provide the trust to the utilities to go

ahead with the systematic stepwise implementation plan. While some states have taken steps

in this direction, it‘s the regulators job to provide that much needed push to the utilities. The

regulators need to come out with time bound guidelines for implementation and provide

necessary incentives for the utilities for implementation of AMR/MDM systems. The need is

to perceive advanced metering system not just for meter reading & billing tool but to

recognize it as a driver for enterprise wide integration tool which will communicate

with/replace other redundant IT applications in the utility. There are issues related to costs

and communication with other system, demand responsiveness and security, but utilities are

looking at it as a strategic tool to improve customer service and thereby retain /attract

customers in the competitive energy market.

Hari Kumar Naidu et al [2010] evaluates the advances in telecommunication, Information

Technology and networking which offer SCADA (Supervisory Control and Data Acquisition)

Power supply Distribution automation as a solution to improve power distribution

efficiencies. This paper also discusses the result of the indigenously developed prototype

17

hardware and software model utilizing the latest embedded technology innovation for

SCADA Power Distribution Automation Systems for reliable performance of power system.

This is vividly

evident that SCADA Power Distribution Automation Systems offer as a solution to improve

power distribution efficiencies. Also the indigenously developed sample prototype hardware

and software model utilising the latest embedded technology innovation for SCADA Power

Distribution Automation Systems will reliably perform the power system.

M. Sadeghiet al [2011] says A Novel Distribution Automation is the bonnie state of art,

comprising the new architecture based on the flexible electrical network of component

together with an open communication structure debate the Future Distribution Automation

System. IUT (Intelligent Universal Transformer) comprises from power electronic base

equipment in addition with traditional current transformer introducing as an IED (Intelligent

Equipment Devices) for ADA (Advanced Distribution Automation) in forthcoming days. In

contrast to ordinary transformer, IUT has full control compatibility as it has been considered

for intelligent device. In this regards FLC (Fuzzy Logic Control) is an advanced method

based on fuzzy logic concept (first issued by LotfyZadeh) emphasizes on fuzzy algorithms

which are formulated by linguistically rules, employing expert knowledge. Model free

system, nonlinearity, robustness and flexibility under parameter variations are the benefit

advantages resulting from the fuzzy logic controllers. In this approach four layers IUT

topology with the diverse services like DC (Direct Current) voltage option, 400 HZ utility for

communication, 120 and 240 V AC (Alternating Current) 60 HZ together with fuzzy logic

controller have been considered for evolving the stability, reducing the uncertainty and

enhancing the efficiency of whole system. They further conclude that FLC control

methodology is concerned for overcoming on ambiguous conditions, nonlinear and complex

system, enhancing the robustness for the new modern technology described as IUT. DC and

three phase output voltages are the benefits arises by using four layers IUT topology. In this

simulation four FLC controllers take the role of control and guarantee the stability and keep

out the whole system from disturbances in input output stages. It also leads to efficiency

enhancement in system performances. ADA infrastructure has been raised in terms of future

necessity will comprise the next distribution automation. It is directed towards full network

functionality. Reliability enhancement is a part of innovation could be stated using modern

adaptive solution for forthcoming projects especially for IUT in smart grid of future.

18

Alauddin Al-Omaryet al [2012] presents the design and implementation of a secure low cost

AMR (Automatic Meter Reading) system that measures and transmits the total electrical

energy consumption to main server using GPRS (General Packet Radio Service) technology

provided by GSM (Global System for Mobile Communications) networks. The proposed

AMR system consists of three main parts: Accurate digital meter, a transmission facility and

the billing server. To make affordable AMR system a low cost off-the-shelf materials are

used. Successful demonstration of the system prototype has made it possible to be

implemented in the kingdom of Bahrain and other Middle East countries on a larger scale for

meter reading applications. The AMR system consists of a meter; a GPRS based transmitter

and a billing server. The low cost was achieved using off-the-shelf available components.

The system security was achieved using the smart card that store encryption keys or use the

crypto-co-processor of the SIM (Subscriber Identity Module) card. A billing server with

meter data management system implemented using ASP.net technology.

Neha Gaur et al [2012] identifies Electrical power distribution system as an important part of

electrical system in delivery of electricity to consumers. Electric power utilities worldwide

are increasingly adopting the computer aided monitoring, control and management of electric

power distribution system to provide better services to electric consumers. Therefore,

research and development activities worldwide are being carried out to automate the electric

power distribution system utilizing recent advancements in the area of IT and data

communication system. Their paper reports the present and past status of the research and

development activities in the area of electric power distribution automation both in developed

as well as in developing countries. At present, power utilities have realized the need for full

scale distribution automation to achieve on-line system information and remote control

system. This is required in order to fully accomplish the restricting (GENCOs, TRANSCOs,

DISCOs, and ESCOs) of the power system to the level of retail wheeling. On the other hand,

the main motivation for accepting the distribution automation in developing countries such as

India is to improve operating efficiency of distribution system. This indicates worldwide

interest for distribution automation at present.

19

2.2 RESEARCH METHODOLOGY

The research work carried out for this project was more of descriptive in nature. Since this

project is a study project, hence in this project the major task was collection of data, and

analysing this data and also studying impact of Information Technology in Distribution

Sector.

20

CHAPTER – 3

INFORMATION TECHNOLOGY

INFRASTRUCTURE IN INDIAN

POWER DISTRIBUTION BUSINESS

21

3.1 INDIAN POWER SECTOR OVERVIEW

The process of electrification commenced in India almost concurrently with the developed

world, in the 1880s, with the establishment of a small hydroelectric power station in

Darjeeling. However, commercial production and distribution started in 1889, in Calcutta

(now Kolkata).

When, India became independent in 1947, the country had a power generating capacity of

1,362 MW. Power was available only in a few urban centres. After independence, all new

power generation, transmission and distribution in the rural, as well as in the urban centres

(which were not served by private utilities), came under the purview of State and Central

Government agencies. SEBs (State Electricity Boards), were formed in all the states.

Under the Electricity (Supply) Act, 1948, the CEA (Central Electricity Authority) was

constituted, for power planning at the national level. The Act, also allowed private licensees

to distribute and/or generate electricity in the specified areas designated by the concerned

State Government/SEB. From the 5th five-year plan onwards, 1974-79, the GoI (Government

of India) involved itself in a big way in the generation and bulk transmission of power and

took upon itself the responsibility of setting up large power projects in order to develop the

coal and hydroelectric resources in the country. The NTPC (National Thermal Power

Corporation) and NHPC (National Hydro-Electric Power Corporation) were set up for this

purpose in 1975.

In 1995, the policy for mega power projects with a capacity of 1,000 MW or more and

supplying power to more than one state was introduced. These mega projects are set up in the

regions, having coal and hydel potential or in the coastal regions, based on imported fuel. The

GoI promulgated Electricity Regulatory Commission Act, 1998 for setting up of Independent

Regulatory Bodies, viz. The CERC (Central Electricity Regulatory Commission) and the

SERCs (State Electricity Regulatory Commissions), at the Central and the State levels,

respectively.

The main function of the CERC is to regulate the tariff of generating companies, owned or

controlled by the Central Government as well as, of those generating companies which enter

22

into or otherwise have a composite scheme for generation and sale of electricity in more than

one state. It also, regulates the inter-state transmission of energy, including tariff of the

transmission utilities and inter-state bulk sale of power. The main functions of the SERC are

to determine the tariff forelectricity, wholesale, bulk, grid or retail, to determine the tariff

payable for use by the transmission facilities and to regulate power purchase and procurement

process of transmission utilities and distribution utilities.

The policy of liberalization of the GoI announced in 1991 and consequent amendments in

Electricity (Supply) Act have opened new vistas to involve private efforts and investments in

the electricity industry.

Installed capacity of 1,362 MW in 1947, increased to 2.05 GW as of June 2012. India has

become the fifth largest producer and consumer of electricity in the world.

3.2 ELECTRICITY DISTRIBUTION IN INDIA

The demand for electrical energy is ever increasing. Today over 21% (theft apart!!) of the

total electrical energy generated in India is lost in transmission (4-6%) and distribution (15-

18%). The electrical power deficit in the country is currently about 18%. Clearly, reduction in

distribution losses can reduce this deficit significantly. It is possible to bring down the

distribution losses to a 6-8 % level in India with the help of newer technological options

(including information technology) in the electrical power distribution sector which will

enable better monitoring and control.

3.3 HOW DOES POWER REACH US?

Electric power is normally generated at 11-25kV in a power station. To transmit over long

distances, it is then stepped-up to 400kV, 220kV or 132kV as necessary. Power is carried

through a transmission network of high voltage lines. Usually, these lines run into hundreds

of kilometres and deliver the power into a common power pool called the grid. The grid is

connected to load centres (cities) through a sub-transmission network of normally 33kV (or

sometimes 66kV) lines. These lines terminate into a 33kV (or 66kV) substation, where the

voltage is stepped-down to 11kV for power distribution to load points through a distribution

network of lines at 11kV and lower.

23

The power network, which generally concerns the common man, is the distribution network

of 11kV lines or feeders downstream of the 33kV substation. Each 11kV feeder which

emanates from the 33kV substation branches further into several subsidiary 11kV feeders to

carry power close to the load points (localities, industrial areas, villages, etc.,). At these load

points, a transformer further reduces the voltage from 11kV to 415V to provide the last-mile

connection through 415V feeders (also called as LT (Low Tension) feeders) to individual

customers, either at 240V (as single-phase supply) or at 415V (as three-phase supply). A

feeder could be either an overhead line or an underground cable. In urban areas, owing to the

density of customers, the length of an 11kV feeder is generally up to 3 km. On the other

hand, in rural areas, the feeder length is much larger (up to 20 km). A 415V feeder should

normally be restricted to about 0.5-1.0 km. unduly long feeders lead to low voltage at the

consumer end.

3.4 BOTTLENECKS IN ENSURING RELIABLE POWER

Lack of information at the base station (33kV sub-station) on the loading and health status of

the 11kV/415V transformer and associated feeders is one primary cause of inefficient power

distribution. Due to absence of monitoring, overloading occurs, which results in low voltage

at the customer end and increases the risk of frequent breakdowns of transformers and

feeders. In fact, the transformer breakdown rate in India is as high as around 20%, in contrast

to less than 2% in some advanced countries.

In the absence of switches at different points in the distribution network, it is not possible to

isolate certain loads for load shedding as and when required. The only option available in the

present distribution network is the circuit breaker (one each for every main 11kV feeder) at

the 33kV substation. However, these circuit breakers are actually provided as a means of

protection to completely isolate the downstream network in the event of a fault. Using this as

a tool for load management is not desirable, as it disconnects the power supply to a very large

segment of consumers. Clearly, there is a need to put in place a system that can achieve a

finer resolution in load management.

In the event of a fault on any feeder section downstream, the circuit breaker at the 33kV

substation trips (opens). As a result, there is a blackout over a large section of the distribution

network. If the faulty feeder segment could be precisely identified, it would be possible to

24

substantially reducethe blackout area, by re-routing the power to the healthy feeder segments

through the operation of switches (of the same type as those for load management) placed at

strategic locations in various feeder segments.

25

Figure 3 – Typical Power Transmission and Distribution Scenario with DA components

3.5 PRESENT STATUS OF POWER DISTRIBUTIONBUSINESS

In India, general consumers have no choice of electricity products. No distribution company

has bothered to design products that suit the needs of different areas or different consumers.

This, despite the fact that several private distribution companies have been in existence since

before reforms in the sector.

26

The reasons are not hard to find. There is logic for designing several products only if there

are more than one provider of a service, and they are free to compete with each other. In

India, this is not the case. Earlier, state electricity boards were the sole providers of

electricity. Now, it is private distribution companies (Discoms) or smaller government-owned

corporations who have sole responsibility of providing electricity in a distribution area.

With reforms, we have changed the ownership of some distribution companies from public

sector to private sector, but they have the same monopoly. It is not possible for a consumer—

whether domestic, commercial or industrial1—to buy electricity from someone other than the

distribution company in his locality.

So, we have succeeded in replacing public sector monopolies with private sector monopolies

on the distribution side of the electricity value chain. But the basic premise of the Electricity

Act, 2003, is to create competition for the benefit of consumers. Reform of the distribution of

electricity is incomplete if we do not introduce competition along with private distribution

companies. It is imperative that all enabling provisions—whether legal, regulatory or

otherwise—are put in place in such a way that the monopoly of distribution companies comes

to an end.

Distribution of electricity in India by definition includes the wire business as well as retailing.

It is the very nature of the wire business that has made distribution a non-competitive activity.

In order to bring about competition, the two activities should be bifurcated. The wire business

can bea separate activity with open access provisions. It will be very similar to the

transmission line business, only at lower voltage levels.

Retailing of electricity can be a separate business, wherein retailers could sell electricity

products to users and distribution wire providers would have to (on a first-come-first-served

basis) provide retailers access to their distribution network. Retailers, in turn, can have their

own agreements for the purchase of electricity from either the generation companies or bulk

traders. This open access to the distribution wire network will be the same as that provided by

transmission companies to generators of electricity under regulatory oversight.

1 As per EA 2003 – The Act provides for open access of Distribution networks to all bulk

consumers. Bulk consumers are consumers with power requirement of 1MW or above. Section 38(2)(d), 39(2)(d) and Section 42 of the Act are relevant for open access.

27

The regulator, through a transparent process, fixes tariff for transmission and this may be

followed in the case of the distribution wire business. This will provide an enabling

framework for retailers to compete with each other and bring in more efficient distribution. It

will also lead to a situation where many products and a wider choice will be available to the

consumer.

It is not essential that the distribution wire company is a private business; it can remain a

government-owned company. Similarly, retailers can also be government-owned or private

companies. The key is that there should be more than one retailer in any area.

Consumers above 1MW may choose their source of electricity. In this scheme, a distribution

company has to be compensated for loss of business if he is asked to sell electricity produced

by a generator not having a contract with him. This is necessitated since distribution includes

the wire business as well as retail sale of electricity. This extra charge has been defined as a

surcharge and has to be paid by the consumer who opts for a generator not of the choice of

the distribution company.

This is a roundabout way of bringing about competition in distribution and that, too, only for

loads above 1MW. It excludes domestic and other small consumers. A simpler mechanism, as

described in the preceding paragraphs, would be easy to understand and implement. Pricing

of electricity by retailers can be left to market forces if there is sufficient competition in terms

of retailers. In places where there is no private retailer, a government-owned retailing

company may be required.

One advantage of making distribution wire business a separate activity is that there will be a

reasonable return on distribution network assets, as tariffs will be fixed by the regulator and

will

help in proper maintenance and upgrade of these assets, which are neglected today as this is

considered a drain on revenue and does not add to the bottom line. The Discom today tends to

give more emphasis to billing and collection.

The second advantage is that new investments will also be easier to come by, as regulated

returns will facilitate financial closure for distribution network projects. How and what needs

28

to be built or strengthened can be managed exactly in the same fashion as transmission lines

are built or strengthened today. The third advantage will be a reduction in technical losses in

distribution due to better operations and maintenance, since it will be the sole business of the

distribution network company.

This change in the current electricity distribution paradigm will bring about competition in

the distribution sector. As competition sets in, retailers of electricity will be forced to come

up with many electricity products suited to different needs of consumers.

3.6 AUTOMATION IN POWER DISTRIBUTION

Though significant generating capacities are coming up in the country, but because of

unreliable fuel supply and recent serial grid breakdowns, are giving rise to a spectre akin to

the California power crisis2.

It is thus imperative that power utilities look at increasing efficiencies in distribution

networks, which have among the highest transmission and distribution losses in the world at

upwards of 20 per cent.

In addition, the social pricing for rural and other sectors puts an increasing pressure on

utilities to improve productivity as also reduce operating and maintenance costs to remain

financially viable.

With IT courting telecom, the new millennium has leapfrogged into a revolution in

networking and communication technologies to offer automation as a solution to improve

distribution efficiencies.

Distribution automation is a tool for enterprise-wide management of an electric utility

system. In other words, an ERP along with BI (Business Intelligence) for an electric utility

that, properly applied, provides for efficient operations, enhances operational outputs and

translates into economic benefits. Some of the initiatives in distribution automation include

complete distribution automation, city power distribution automation, AMR, electric SCADA

and distribution management for electric utilities.

29

3.7 NEED TO AUTOMATE

Existing distribution systems have certain inherent inefficiencies due to their legacy. For one,

many systems are monitored manually. This results in maintenance taking place only during

breakdowns. The present system also does not ensure reliable and complete power system

and

usage information that can facilitate trend forecasting or help the utility in better analysis and

planning.

At places, the billing systems are still unreliable. While the present system has intensive

manpower requirement and over-dependence on experts, it is still a logistic nightmare to

reach remote locations. Even trouble-shooting in case of breakdowns is based on the

conventional call system through telephone answering machines.

3.8 DISTRIBUTION AUTOMATION SYSTEM

In a distribution automation (DA) system, the various quantities (e.g., voltage, current, switch

status, temperature and oil level) are recorded in the field at the distribution transformers and

feeders, using a data acquisition device called RTU (Remote Terminal Units). These system

quantities are transmitted on-line to the base station (33kV substation) through a variety of

communication media. The media could be either wireless (e.g., radio, and pager) or wired

(e.g., Dial-up telephone, RS-485 multi-drop, and Ethernet). The measured field data are

processed at the base station for display of any operator selected system quantity through

GUI (Graphic User Interface). In the event of a system quantity crossing a pre-defined

threshold, an alarm is automatically generated for operator intervention. Any control action

(for opening or closing of the switch or circuit breaker) is initiated by the operator and

transmitted from the 33kV base station through the communication channel to the remote

terminal unit associated with the corresponding switch or circuit breaker. The desired

switching action then takes place and the action is acknowledged back to operator for

information.

2 Also known as the Western U.S. Energy Crisis of 2000 and 2001

30

3.9 METERING& BILLING SYSTEM

For a long time, utilities employed unsophisticated meters to track their customer's usage.

These meters were read by a meter reader or by the customers themselves. Today greater

strains on the power grid, environmental concerns, liberalization of utility markets, and new

government-mandated billing systems mean that power suppliers must upgrade their metering

systems.

Meters that had to be read manually then gave way to Automated Meter Reading (AMR)

systems. These "smarter" meters either transmit data directly to the utility company or are

read by downloading meter data in a MRI3. However, this communication moved data in only

one direction: from the meter to the utility. AMR was certainly an improvement, but

unidirectional communications meant that some types of common transactions, such as

disconnection and reconnection, could not be performed automatically.

An AMI (Advanced Meter Infrastructure)4, on the other hand, provides two-way

communication between meters at the customer site and the utility company. The

communication is frequent as well.

SAP for Utilities now provides a way to communicate with an AMI through the Advanced

Meter Infrastructure ES bundle. This ES bundle provides enterprise services that allow

information to flow back and forth between the meters, the metering system platform (also

known as the AMI), and SAP back-end systems. Using these enterprise services, utility

companies can disconnect and reconnect customers, as well as uploading profile data from

the AMI into SAP ERP 6.0

The technical processes are the province of the utility companies. The SAP backend systems

communicate with SAP NetWeaver Process Integration (SAP NetWeaver PI) using the

enterprise services in this ES bundle. Depending on the metering system platform, SAP

NetWeaver Process

3 The gadget used for downloading data from meter is called Meter Reading Instrument

(MRI)

Utilipoint International, Inc. Defines an AMI as "a communication network and meters

providing interval usage (at least hourly) and collected at least daily."

31

Integration formats the XML message to transfer the data from the SAP backend systems to

the

Figure 4 – A Graphic of the Components Involved in AMI

metering system platform and back again.

3.10 SCADA

SCADA (supervisory control and data acquisition) generally refers to ICS (Industrial Control

Systems): computer systems that monitor and control industrial, infrastructure, or facility-

based processes, as electrical power transmission and distribution etc.

The term SCADA usually refers to centralized systems which monitor and control entire

sites, or complexes of systems spread out over large areas (anything from an industrial plant

to a nation). Most control actions are performed automatically by RTUs or by PLCs (Power

Line Communication Systems). Host control functions are usually restricted to basic

overriding or supervisory level intervention. For example, a PLC may control the flow of

cooling water through part of an industrial process, but the SCADA system may allow

operators to change the set points for the flow, and enable alarm conditions, such as loss of

flow and high temperature, to be

32

displayed and recorded. The feedback control loop passes through the RTU or PLC, while the

SCADA system monitors the overall performance of the loop.

Data acquisition begins at the RTU or PLC level and includes meter readings and equipment

status reports that are communicated to SCADA as required. Data is then compiled and

formatted in such a way that a control room operator using the HMI (Human Machine

Interface) can make supervisory decisions to adjust or override normal RTU (PLC) controls.

Data may also be fed to a Historian, often built on a commodity Database Management

System, to allow trending and other analytical auditing.

SCADA systems typically implement a distributed database, commonly referred to as a tag

database, which contains data elements called tags or points. A point represents a single input

or output value monitored or controlled by the system. A series of value-timestamp pairs

gives the history of that point. It is also common to store additional metadata with tags, such

as the path to a field device or PLC register, design time comments, and alarm information.

SCADA systems are significantly important systems used in national infrastructures such as

electric grids, water supplies and pipelines.

3.11 GIS

GIS (Geographic Information System) integrates hardware, software, and data for capturing,

managing, analysing, and displaying all forms of geographically referenced information.

GIS allows to view, understand, question, interpret, and visualize data in many ways that

reveal relationships, patterns, and trends in the form of maps, globes, reports, and charts.

Electric utilities have a need to keep a comprehensive and accurate inventory of their physical

assets, both as a part of normal service provision (extending the network, undertaking

maintenance, etc.) and as a part of their obligation to inform third parties about their facilities.

Complexity of electrical distribution power system is a good reason for introducing new

information technology - GIS (Geographic Information System) that carries out complex

33

power system analyses (e.g., fault analysis, optimization of networks, load forecasting) in

acceptable amount of time. By using modern GIS, in conjunction with his own in-house

developed software,in less time and more accurately, the utility engineer is able to design and

to analyse electrical distribution network.The objective of the distribution network design

process can be divided into three independent parts.

Design Of Secondary Design of Primary System

Load Forecasting System (Low Voltage (Medium Voltage Distribution Network) Distribution Network)

•Load growth of the •Optimal substation •Optimal substation

geographical area served allocation and allocation

by substation transformer sizing •Primary circuitry routing

•Determination of load •Secondary circuitry and sizing

magnitude and its routing and sizing

geographic location

•Customer load

characteristics

3.12 THE SMART GRID VISION OF INDIA

The adaptation of the smart grid vision to the Indian context offers the potential to

revolutionize electricity supply and increase the probability of achieving the Government of

India‘s electricity sector goals sooner and more effectively. The immediate beneficiaries

would be the people of India. The design of a sustainable smart grid model would also

provide a blueprint for developing nations.

In its broadest interpretation, the smart grid vision sees the electric industry transformed by

the introduction of two-way communications and ubiquitous metering and measurement. It

will enable much finer control of energy flows and the integration and efficient use of

renewable forms of energy, energy efficiency methodologies and technologies, as well as

many other advanced technologies, techniques and processes that wouldn‘t have been

practicable until now. It will also enable the creation of more reliable, more robust and more

secure electrical infrastructure, and it will help optimize the enormous investments required

34

to build and operate the physical infrastructure required.

Fortunately, computing and telecommunications — key drivers of the smart grid — are the

archetypes for a transformational technology that is rising in Indian power industry to mature

the operations.

Figure 5 – Distributed micro-grid Power System

3.13 DRIVERS IN INDIA

Six factors will drive the adoption of information technology for the development of smart

grid in India:

3.13.1 Supply shortfalls

Demand, especially peak demand, continues to outpace India‘s power supply. The increasing

affordability of household appliances is adding to the burden on the grid. Official estimates of

India‘s demand shortfall is 12% for total energy and 16% for peak demand. Managing growth

and ensuring supply is a major driver for all programs of the Indian power sector.

3.13.2 Loss reduction

35

India‘s aggregate technical and commercial losses are thought to be about 25-30%, but could

be higher given the substantial fraction of the population that is not metered and the lack of

transparency. While a smart grid is not the only means of reducing losses, it could make a

substantial contribution.

3.13.3 Managing the “human element” in system operations

Labour savings are not a prime driver for the smart grid in India, as contracts for outsourcing

are inexpensive. However, automated meter reading would lower recording and other errors

— including what are known elsewhere as ―curbstone readings‖ or ―shade tree‖ readings —

or even deliberate errors, which are thought to be significant reasons for losses.

3.13.4 Peak load management

India‘s supply shortfalls are expected to persist for many years. A smart grid would allow

more ―intelligent‖ load control, either through direct control or economic pricing incentives

that are communicated to customers in a dynamic manner. Such measures would help

mitigate the supply-demand gap.

3.13.5 Renewable energy

India has supported the implementation of renewable energy. Historically, much of its

support was for wind power, but the newly announced National Solar Mission and its goal to

add 20,000 MW of solar energy by 2020 should be an accelerant. Spurred by environmental

concerns and the desire to tap into all available sources of power, this move can also be a

smart grid driver.

3.13.6 Technological leapfrogging

Perhaps the most intriguing driver for India is the potential to ―leapfrog‖ into a new future for

electricity, as it did with telecommunications. Also, the ―smart‖ in a smart grid is ICT

(Information and Communication Technology)—An area of unique capability in India.

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3.14 WHAT,EXACTLY,IS ASMART GRID?

Simply put, a smart grid is the integration of information and

communications technology into electric transmission and

distribution networks. The smart grid delivers electricity to

consumers using two-way digital technology to enable the

more efficient management of consumers‘ end uses of

electricity as well as the more efficient use of the grid to

identify and correct supply demand-imbalances

instantaneously and detect faults in a ―self-healing‖ process

that improves service quality, enhances reliability, and

reduces costs.

The emerging vision of the smart grid encompasses a broad

set of applications, including software, hardware, and

technologies that enable utilities to integrate, interface with,

and intelligently control innovations.

Some of the enabling technologies that make smart grid

deployments possible include:

ˉ Meters

ˉ Storage devices

ˉ Distributed generation

ˉ Renewable energy

ˉ Energy efficiency

ˉ Home area networks

Key characteristics of the

smart grid

ˉ Self-healing: The grid

rapidly detects, analyses, responds, and restores

ˉ Empowers and incorporates the consumer: Ability to incorporate consumer equipment and behaviour in grid design and operation

ˉ Tolerant of attack: The grid mitigates and is resilient to physical/cyber-attacks

ˉ Provides power quality needed by 21st-century users: The grid provides quality power consistent with consumer and industry needs

ˉ Accommodates a wide variety of supply and demand: The grid accommodates a variety of resources, including demand response, combined heat and power, wind, photovoltaics, and end-use efficiency

ˉ Fully enables and is supported by competitive electricity markets

Perfect Power, McGraw

Hill, 2009, p. 82

37

ˉ Demand response

ˉ IT and back office computing

ˉ Security

ˉ Integrated communications systems

ˉ Superconductive transmission lines

3.15 SOLUTIONS FOR DISTRIBUTION UTILITIES

Enabling the core business operations with information systems at the transaction level would

lay the foundation for sustainable reforms in India. This will ensure world-class practices and

controls at the operations level and would bring about sustainable improvements in the

overall health of the utilities. This will enhance the overall quality of data, thereby improving

the flow of information for decision support.

IT would enable sustainable changes in the operations increasing controls at a transaction

level, improving the efficiency of the operations and increasing transparency across the

organisation. The figure below depicts how IT would enable the creation of reliable data at

the grassroots level. This information would then flow to the managerial level for tactical

decisions and further up to the strategic level. This would facilitate the change of culture

towards information-based decisions sought by the reforms process.

Improved operational efficiency ˉ Reduction in losses

38

ˉ

Figure 6 – Benefits of Information Flow across the Organization

Information Technology would thus become the key enabler of the initiatives under the

reform process. In addition, it would act as a catalyst by providing an information

infrastructure essential to the reform processes and practices. Here, it is essential to clarify

that IT is not the panacea toall problems. It does not substitute the fundamental changes and

activities under the reforms process. It rather plays the role of an enabler providing strategic

support.

The global IT market for the power distribution sector provides a wide range of technologies

and solutions. These solutions address the entire business value chain in power distribution –

from setting up distribution network and service connection to distribution load management,

delivery of power and customer facing processes. These IT solutions serve diverse regulatory

market models ranging from monopoly markets to highly competitive ones. The range of IT

products serves a wide range of organisation sizes – from small utilities to global energy

majors. Overall, the IT products market is an evolved one, if not the most evolved as

compared to sectors such as financial services or manufacturing. There is a large share of

custom developed IT solutions also in use, primarily in business applications and very little in

39

IT infrastructure.

The following figure5 depicts the core business value chain of a distribution utility (on top)

and typical IT applications (on left) as a matrix.

Figure 7 – Distribution Business Value Chain and Typical IT Applications

The multiple intersection points show that many applications address requirements across the

value chain and thus, as stated earlier, it becomes critical to plan the interfaces upfront.

Several product vendors today provide end-to-end solutions as well as point solutions. In

selecting products, compatibility with the other products in the current context as well as in

the changing context needs to be considered.

Effective deployment of information technology by distribution companies would largely

depend upon:

ˉ Sustained leadership commitment

ˉ Leveraging best practices and realigning the business processes

5Ref – IT Task Force Report

40

ˉ Improving the responsiveness of the structure and aligning to changed processes

ˉ Improving the overall quality of data used for implementing the systems

ˉ Securing commitments and ownership of people to the changes and making them

accountable for implementing and operating the new systems

ˉ Providing adequate training and enabling people to enhance their skills

ˉ Promoting data oriented decision making environment

3.16 IT STRATEGY AND PLANS

A structured and comprehensive IT strategy and plan will help the distribution utilities to

derive the benefits from information technology. The IT strategy and plans will need to

consider several aspects including:

ˉ The overall business strategy and needs

ˉ Potential changes to operations

ˉ Potential changes to industry structures (e.g. disaggregation of distribution business

into wires business and information technology)

ˉ Leveraging existing IT infrastructure and applications

The phasing of the investments will need to be driven by the business priorities and the return

on

investments. The IT strategy and plan will include details on:

ˉ Application architecture

ˉ Data architecture

ˉ Infrastructure requirements – hardware and network

41

ˉ IT organisation, processes, policies and standards

ˉ List of business–IT initiatives or projects and implementation plan for the applications

to be used by the organisation over a period of time

ˉ Investment requirements and their phasing

The IT applications have been divided into the following four categories:

ˉ Prerequisites – To be established first to allow implementation of subsequent IT

applications

ˉ Short-term – Quick wins

ˉ Medium-term – High return

ˉ Advanced applications

Figure 8 – Indicative Roadmap for Applications under the Four Categories

6 The arrows indicate the direction to be followed along the two dimensions – time and

extent of deployment in the geography. {Ref – IT Task Force Report}

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3.16.1. Advanced applications

The advanced applications can be built only after establishing a strong foundation in the

preceding phases. For instance, mobile field force solution can be built only after establishing

a system for management of field service orders (and customer and service databases even

earlier). E-business solutions such as customer self-service and e-procurement require the

CIS, SCM (Supply ChainManagement), etc., to be in place.

By this time, the typical application portfolio at a distribution utility would look something

like this:

Distribution Retail / Customer Services

Customer Information System (CIS), CRM

Billing and EBPP, Complex Billing

Meter Info. System Self Service Internet site

AMR, Prepaid metering

OMS / TCMS, WMS Call Centre / IVR / CTI

PMS GIS, SCADA, EMS

Mobile Workforce SFA (Sales Force Automation)

ERP – Finance & Accounts, HR, Procurement, EAM, Decision Support

Data Warehousing, Workflow Management

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3.17 INTEGRATED BILLING SYSTEM FOR LARGE C&I

CUSTOMERS

The objective is to integrate meter reading, billing, payment and collection for C&I

customers to eliminate scope for tampering and manipulation and thus improve collection7

(C&I customers contribute more than 70% of revenue).

Figure 9 – Current Billing System

Figure 10 – Integrated Billing System

7 Integrated billing system – As Proposed in IT Task force report

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Figure 11 – Energy accounting System

Figure 12 – Extended Business Interaction System

3.18 ENTERPRISE RESOURCE PLANNING

Enterprise resource planning (ERP) systems integrate internal and external management

information across an entire organization, embracing finance/accounting, manufacturing,

sales and service, customer relationship management, etc. ERP systems automate this activity

with an integrated software application. The purpose of ERP is to facilitate the flow of

45

information between all business functions inside the boundaries of the organization and

manage the connections to outside stakeholders.

ERP systems can run on a variety of computer hardware and network configurations,

typically employing a database as a repository for information. The transformation of ERP

into a cloud-based model has been relatively slow, but as cloud computing makes other

inroads into the enterprise environment some functionality is being moved to the cloud.

Global Leaders in providing ERP solutions are SAP AG, Oracle & Microsoft. All the utilities

we surveyed were utilizing SAP AG solutions in their businesses.

3.18.1. SAP Utilities

In August 2002, SAP launched the Efficiency Project IS-U/CCS. The idea was conceived of

following a number of projects, in which customers expressed the desire to improve the

efficiency of certain IS-U/CCS mass dialog processes (such as Find Business Partner,

Identify Business Partner, Move-In, Move-Out, Move-In/Out, Change Bank Details, Bill

Correction). The SAP Utilities (IS-U) component is a sales and information system that

supports all business processes and utility services of a utility company. IS-U can also be

used for managing and billing residential, commercial and industrial, and prospective

customers. This component also allows to manage and bill customers who receive services,

purchase goods, or pay fees and taxes.

IS-U comprises the following modules:

ˉ Master Data and Basic Functions ˉ Customer Services

ˉ Work Management ˉ Device Management

ˉ Billing & Invoicing ˉ Energy Data Management

ˉ Contract Accounts

A complete SAP for Utilities solution should also contain the following SAP products:

CRM – Customer Relationship Management

BW – Business Warehouse

46

The CRM solution is design to cover

all the marketing, customer

acquisition, sales and customer

services processes of a utility

company. It is fully integrated with

the IS-U: CRM works as a front end

(contracts, customer services, market

campaigns and IS-U as a backend

(billing, payment processing, work

management, etc.). For example

when using a CRM as a front end

system, a

contact created in CRM is

replicatedautomatically in IS-U where the

necessary master data is created automatically

using Master Data Templates.

The Business Warehouse solution is used for reporting. Is comes with a Business Content

which already contains a lot of predefined Info Cubs and reports.

Figure 14 – Functional Scope of SAP IS-U

Figure 13 – IS-U/CCS as a component in the ERP

solution

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3.18.2. ERPModelling of Distribution Business

Figure 15 – IS-U/CCS as an integrated component of the SAP enterprise information

system

Figure 16 – Integration with other SAP and non-SAP Solutions (An example)

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3.18.3. Oracle ERP

Oracle helps utilities worldwide meet their biggest business challenges. Today‘s utilities need

to increase customer satisfaction and shareholder value, provide environmentally-friendly

service, and improve efficiency and reliability. To increase their effectiveness, they also need

to turn big data into actionable insight.

Oracle provides utilities with complete solutions and complete choice. Our mission-critical

utilities software is integrated with our market-leading business intelligence tools,

middleware, hardware, and database technologies, providing proven standalone applications

or complete solutions for a utility‘s entire initiative.

Figure 17 – The Oracle Solution Footprint for Utilities

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3.18.4. Service-oriented architecture

SOA (Service-Oriented Architecture) is a set of principles and methodologies for designing

and developing software in the form of interoperable services. These services are well-

defined

business functionalities that are built as software

components (discrete pieces of code and/or data

structures) that can be reused for different purposes.

SOA design principles are used during the phases of

systems development and integration.

SOA generally provides a way for consumers of

services, such as web-based applications, to be aware

of available SOA-based services. SOA defines how to

integrate widely disparate applications for a Web-

based environment and uses multiple implementation

platforms. Rather than defining an API, SOA defines

the interface in terms of protocols and functionality.

An endpoint is the entry point for such a SOA

implementation.

Service-orientation requires loose coupling of services

with operating systems and other technologies that

underlie applications. SOA separates functions into

distinct units, or services, which developers make

accessible over a network in order to allow users to

combine and reuse them in the production of

applications. These services and their corresponding

consumers communicate with each other by passing

data in a well-defined, shared format, or by

coordinating an activity between two or more services.

Figure 18 – Layer Interaction

in Service- Oriented Architecture

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SOA can be seen in a continuum, from older concepts of distributed computing and modular

programming, through SOA, and on to current practices of mashups, SaaS, and cloud

computing.

Figure 19 – Delivery Channels for ERP System

51

3.19 AUTOMATED METER READING

Apart from efforts to meet growing demand, mounting AT&C losses in distribution is another

challenge being faced by utilities. Specifically developing utilities owe to lack of proper

energy accounting from infrastructural, technological shortfalls and manual interventions in

energy billing.

In the wake of technology upgradation and automation in the Energy Distribution, AMR

(Automated Meter Reading) or Meter Data Acquisition and Management assumes importance

in enabling the utilities to gather business and operational intelligence, through collection of

base line data to analysis, monitor and manage operations in AT&C losses reduction.

Automatic meter reading, or AMR, is the technology of automatically collecting

consumption, diagnostic, and status data from water meter or energy metering devices (gas,

electric) and transferring that data to a central database for billing, troubleshooting, and

analysing.

Figure 20 – AMR Architecture

This technology mainly saves utility providers the expense of periodic trips to each physical

location to read a meter. Another advantage is that billing can be based on near real-time

consumption rather than on estimates based on past or predicted consumption. This timely

52

information coupled with analysis can help both utility providers and customers having better

control the use and production of electric energy consumption.

AMR technologies include handheld, mobile and network technologies based on telephony

platforms (wired and wireless), RF (Radio Frequency), or power line transmission to read

energy consumption.

3.19.1. Touch Technology

With touch based AMR, a meter reader carries a handheld computer or data collection device

with a wand or probe. The device automatically collects the readings from a meter by

touching or placing the read probe in close proximity to a reading coil enclosed in the

touchpad. When a button is pressed, the probe sends an interrogate signal to the touch module

to collect the meter reading. The software in the device matches the serial number to one in

the route database, and saves the meter reading for later download to a billing or data

collection computer. Since the meter reader still has to go to the site of the meter, this is

sometimes referred to as "on-site" AMR. Another form of contact reader uses a standardized

infrared port to transmit data. Protocols are standardized between manufacturers by such

documents as ANSI C12.18 or IEC 61107.

3.19.2. Wireless Technologies

The wireless meter reading technologies are generally based on radio frequencies. The

readings can be monitored on real time basis. Popular technologies in this category includes

GSM / GPRS based and CDMA based technologies.

53

Figure 21 – Wireless AMR

GSM Based Technology

GSM based Automatic meter reading is the

technology of automatically collecting data

from energy meter and transferring that

data to a central database for billing and /

or analysing. The Transmitter circuit is

connected to the meter which counts the

pulses from it and displays it over the LCD

(Liquid crystal display) display. The

transmitter circuit containing a GSM

modem for data transforming, which

transforms the meter reading after each

fixed interval of pulses to a particular

number through SMS.

An additional advanced service is also

available, which includes the software

operating on the computer. This software

shows the updated reading. User has to put

the unit rate

and date of billing, and then this software automatically calculates the bill and also print

it if printer is connected to computer.

Figure 22 – GSM

Bases AMR

54

Transmission Protocols

Simplex

Communication flow in one direction only – broadcast television or radio

Half duplex

Capable of communication in both directions but not at the same time – ‗walkie-talkies‘

Full duplex

Simultaneous two-way communication – the telephone

Communication Terminology

Circuit-switched / connection oriented

ˉ Seeking out and establishing a physical copper path end-to-end.

ˉ Implies the need to first set up a dedicated, end-to-end path for the connection before

the information transfer takes place.

ˉ Once the connection is made the only delay is propagation time.

CDMA Based Technology

The base station transmits coded data for all receivers at the same frequency and similarly all

receivers send their information with individual code at the same frequency. Negotiating a

call, the Base station and target receiver agrees on a special code. Information pertaining to

the target receiver is encoded using special code called as PN (Pseudo Random) code.

Data pertaining to base station and that of the target meter is decoded by using the respective

PN code.

55

Figure 23 – Data Transfer over CDMA

Packet switched / connectionless

ˉ Store-and-forward network where the block of transfer is a complete packet. A

packet is a variable length block of data with a tight upper bound.

ˉ No set up is needed.

ˉ Each packet contains information which allows the packet to be individually routed

hop-by-hop.

3.19.3. Power Line Communication System (PLC)

PLC is a method where electronic data is transmitted over power lines back to the substation,

then relayed to a central computer in the utility's main office. This would be considered a

type of fixed network system—the network being the distribution network which the utility

has built and maintains to deliver electric power.

It is also known as power line carrier, PDSL (Power Line Digital Subscriber Line), mains

communication, PLT (Power Line Telecom), PLN (Power Line Networking), and BPL

(Broadband over Power Lines).

56

Figure 24 – Power Line Communication Network

57

CHAPTER – 4

IT IMPLEMENTATION IN

INDIAN DISCOMS – A SURVEY

IN DELHI

58

4.1 IT IN POWER

Information Technology (IT) is widely acknowledged to be crucial for efficient Operation

and Management of the Power Utilities, which need to handle a large amount of information

for their efficient operation. At the same time the opening and restructuring of the Indian

power sector have changed the perception of the power utility managers in the way they have

been doing business till now.

Although there are many IT solutions (like Billing, Financial Accounting, Pay Roll, Revenue

Management System etc.) already operational in most of the Discoms nationwide but these

systems are either integrated nor they support Discom‘s operations and provide relevant MIS

(Management Information System) for management to assist their decision making. Most of

the applications are in batch mode and do not support online updating of the database. The

applications hardly meet the functionality requirements of critical business processes

automation. The majority of the current applications do not support data aggregation and

consolidation at the organizational level. They are therefore not capable of providing the

management an enterprise wide view of the application data.

Power Discoms need IT systems that can support their operations. It is the call of the time for

them to go for IT Integration and adopting IT solutions like ERP in their Business Processes.

However the companies we surveyed, or can say the discoms in Delhi are utilising ERP for

their businesses, but this is not the case for all the discoms nationwide, as ERP integration is

a specialized task and a thorough study of the organization processes is required.

For the discoms already implemented ERP and looking forward to move up to the next level,

the solution is Business Intelligence (BI), which further processes the data and reports and

helps decision making quicker and reliable.

4.1.1 Objectives for ERP Implementation

The prime Objective of the Discoms for adopting ERP solutions were Process Improvement,

Efficiency improvement, Cost Reduction and better Customer Services. It includes improved

Communication and Collaboration capabilities, employee self-service facility etc.

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Figure 25 – Objectives for ERP implementation by discoms Organizations go for ERP because it is a forward looking growth oriented state‐of‐the art

technology infrastructure which would help them achieve:

ˉ Process Improvement ˉ Customer Satisfaction

ˉ Cost Reduction ˉ Cycle‐time reduction

ˉ Profitability Focus ˉ Centralization

ˉ Employee Job satisfaction ˉ Data Security

ˉ Transparency ˉ Regulatory needs

4.1.2 Challenges during ERP Implementation:

As per the responses obtained from the ERP Team leaders of Discoms, they faced the

following challenges in ERP implementation:

ˉ Process Mapping ˉ Data Migration ˉ Change Management

ˉ Customization ˉ Financial justification ˉ Outsourcing issues ˉ Project Scheduling

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Process Mapping:

Process Mapping (framing & finalizing Business Process Blueprint), design and ownership

are very important because information systems are implemented in order to support business

processes. If business processes are not well designed, any integration effort will not get the

desired results.

The Power Distribution is a typical utility having large database of consumers (its consumer

base includes right from the lowest citizen to the first citizen, from jhuggi / tapra to Palaces,

from gumties to Business Houses and not limited to from agriculture to Industries) There are

some 50 to 100 Consumer categories and sub categories in revenue cycle of a distribution

utility that requires a very precise and thorough business Process Blueprint for ERP

implementation.

The process requirements of integration are that customisation or site specific configurations

should be managed, system suppliers should commit to continue supporting their product and

experienced skills from the business should be used to design processes where the integration

will be based on.

Data Migration:

In many Discoms data is kept in manual ledgers. The exceptions are billing data and those

discoms where computerization is complete. Most of the events of Discoms are remained

unrecorded due to the lack of literate staff and non-prevailing or non‐functioning of systems.

And for ERP every material has to be numbered and coded.

There is no standard Database or Data Warehouse created or maintained in many Discoms.

Each department viz. Commercial, Works, Finance, Stores & Purchase and O&M works in

isolation. It

also happens sometimes that if consolidated information is sought (say by Electricity

Regulator) then each department submits different information / data on the same subject. All

the information of various sections remains in nonstandard format or in that format which is

suitable to that particular department. While implementing ERP all the data are to be brought

on a common operating platform.

61

Moreover it is not possible practically to capture all the data (of say last 30‐40 yrs.) in

computer. So the relevant data for the minimum number of past years is entered or converted

in new format to suit with ERP software requirement. The creation of data warehouse and

correct data punching is really a cumbersome job.

Change Management:

The main issues that created problems in implementation are related with Man Power

Orientation, user unawareness and their lack of Interest. One of the problems with executive

sponsorship is that Discom‘s Senior Executives are "technology shy" i.e. they do not want to

get involved in technology projects and they delegate all the responsibility to their IT

managers. Due to this they lack interest and remain unaware of the new solutions and

technology. This reluctance to new initiative should be removed among the user employees.

Customisation:

Customizing an ERP package can be very expensive and complicated, because many ERP

packages are not designed to support customization, so most businesses implement the best

practices embedded in the acquired ERP system.

Outsourcing Issues:

There may be debate that whether the ERP solutions to be implemented by outsiders or by in

house team. Consultants can have a real role in providing expertise but only company people

know the company well enough and have the authority to change how things are done. When

implementation responsibility is de‐coupled from operational responsibility, then there is

controversy regarding legitimately accountability for results. If results aren‘t forthcoming, the

implementers can claim the users aren‘t operating it properly, while the users can say that it

wasn‘t implemented correctly.

But since the Discom‘s core business is not ERP nor do they have competent personnel of IT

(almost all the executives of Discoms are from Electrical / Civil Engineering background) so

they should hire an external agency and use their skills and experience for ERP

implementation.

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Costing and Pay Back Period:

Establishing the costs and benefits of an ERP project is essential. It‘s very difficult to keep

ERP pegged as a very high priority if the relevant costs and benefits have not been

established and bought into. If ERP doesn‘t carry this high priority, the chances for success

decrease.

Their financial impact can be observed by comparing the O&M expenditure of the Utility‘s

profit centre (Circle or Division or a Feeder – in case of Discoms) before and after

implementation of ERP systems. But this exercise has hardly been done so far in the Indian

utilities (or elsewhere abroad for Electric Power Distribution Utilities).

The benefits of ERP are largely intangible and do not reflect directly on the balance sheet.

And due to this reason it is a challenge for an IT head of Discom to get financial approval for

an ERP project.

Project Scheduling:

ERP implementations are successful in terms of providing functionality; however there is

usually an overrun in terms of budget and time. The length of time to implement an ERP

system depends on the size of the business, the scope of the change and willingness of the

discoms to take ownership for the project.

4.2 A SURVEY OF DISCOMS (DELHI)

Delhi has to be power-sufficient if it wants to be a world class capital city. It also has to

achieve this in a cost-effective and sustainable manner. The power reforms of 2003 were the

first step in this direction. As a result of those reforms private participation was introduced in

distribution for the first time in Delhi.

The reforms have largely succeeded in cutting down the AT&C losses, reducing the financial

burden of exchequer, and in increasing the amount of metered power. However, the

generation capacity has remained stagnant. Delhi‘s model of power reform has been unique,

63

and has largely escaped unscathed from the bitter experiences of power reforms introduced in

Orissa. The success of these reforms enabled the government to make claims of power self-

sufficiency.

The research was carried out by the means of questionnaire8 and personal visits to the offices

and executives of the discoms.

4.3 BSES (BOMBAY SUB-URBAN ELECTRICITY SUPPLY

COMPANY), DELHI

4.3.1 Company Profile

Following the privatisation of Delhi‘s power sector and unbundling of the Delhi Vidyut

Board in

July 2002, the business of power distribution was transferred to BYPL (BSES Yamuna Power

Limited) and BRPL (BSES Rajdhani Power Limited). These two of the three successor

entities distribute electricity to 28.34 lakh customers in two thirds of Delhi. The Company

acquired assets, liabilities, proceedings and personnel of the Delhi Vidyut Board as per the

terms and conditions contained in the Transfer Scheme.

BSES Yamuna Power Limited (BYPL)

BYPL distributes power to an area spread over 200 sqkms with a population density of 5953

per sq km. Its 11.9lakh customers are spread over 14 districts across Central and East areas

including ChandniChowk, Daryaganj, Paharganj, Shankar Road, Patel Nagar, G T Road,

Karkardooma, Krishna Nagar, Laxmi Nagar, MayurVihar, Yamuna Vihar, NandNagri and

Karawal Nagar.

8 The questionnaire with responses of the discomsare in Annexure 1 at the end of the report

64

BSES Rajdhani Power Limited (BRPL)

BRPL distributes power to an area spread over 750 sq. km with a population density of 2192

per sq km. Its‘ over 16.44 lakh customers are spread in 19 districts across South and West

areas including Alaknanda, Khanpur, VasantKunj, Saket, Nehru Place, Nizamuddin,

SaritaVihar, HauzKhas, R K Puram, Janakpuri, Najafgargh, Nangloi, Mundka, Punjabi Bagh,

Tagore Garden, VikasPuri, Palam and Dwarka.

4.3.2 System Setup at BSES

Both BSES Yamuna Power Ltd & BSES Rajdhani power Ltd have SAP IS-U implemented at

their back end as the ERP package. The system they had tailor made for their specific

operations and share a common data centre having a single database and centralised

management system.

Various modules implemented under the ERP package includes – Material Management,

Maintenance Management, Preventive Management, Management Information System,

Meter Data Management, Strategic Enterprise Management, Billing, Customer Relationship

Management, Human Resource, FI-CO (Financial Accounting – Controlling).

The modules and processes are integrated via SOA architecture. The company also have

implemented AMR system utilizing both GSM and CDMA which enables remote meter

reading. However this system has been implemented for recording meter data of Key

Consumers only.

Metering system

Various parameters measured and recorded by the energy meter are finally downloaded for

billing/ monitoring purpose. The downloading of parameter means transferring the

parameters from meterto the records of the service company. Downloading can be manual i.e.

by reading the LCD display recording on a notebook or using some gadgets.

At BSES, they are using AMR system. Downloading of the parameters using electronic

gadgets which are attached to the meter without manual intervention is called AMR system.

The gadget attached to the meter downloads the parameter and then automatically

communicates it to the computer of the service company. The gadget used for downloading

65

data is called MRI (Meter Reading Instrument). The biggest advantage of MRI reading is that

it avoids human error in recording/ transfer of data.

The AMR system at BSES reads and record data from the smart meters and that data is

uploaded in SAP via intranet. However, this communication moved data in only one

direction: from the meter to the utility. AMR was certainly an improvement, but

unidirectional communications meant that some types of common transactions, such as

disconnection and reconnection, could not be performed automatically.

SAP for Utilities now provides a way to communicate with an AMI through the Advanced

Meter Infrastructure ES bundle. This ES bundle provides enterprise services that allow

information to flow back and forth between the meters, the metering system platform (also

known as the AMI), and SAP back-end systems. Using these enterprise services, utility

companies can disconnect and reconnect customers, as well as uploading profile data from

the AMI into SAP ERP 6.0. BSES should switch from intranet uploading of AMR data into

ERP to AMI, which is the next step towards smart metering.

Figure 26 – A Typical BSES AMR Screen

66

Billing System

After the meter is connected/energised a K.No.is allotted based on the location and a nearby

consumer number. This determines a consumer‘s Cycle Number and Book Number. Based on

Cycle Number, readings are taken by BSES Meter Reader every month or bimonthly. After

readings are taken and verified, the data is sent to company‘s Computer Division for

generation of the bill. The divisional office then distributes the printed bills through Bill

Distributors.

Collection System

At BSES they have a number of collection system available for the ease of consumers.

Figure 27 – BSES Bill Payment System

4.3.3 Other IT enabled Practices at BSES

ˉ No Supply Complaint Registration through SMS

ˉ Retrieval of Billing/Payment details through SMS

ˉ Complaint Registration on IVRS (Interactive Voice Response System)

through auto recognition of telephone number

ˉ Auto call routing from the IVRS to the Customer service representative in case

CRN (Customer Reference Number)/CA number is not punched by the customer

9 Smart 2000 software is used for AMR data collection at BSES, Also there is an In-House

solution developed by Reliance for AMR monitoring & data collection.

67

ˉ Priority Queue on the IVRS for Fire/Shock related calls

ˉ Estimated wait time and Queue Number announcement on IVRS

ˉ Auto recognition of VIP customers on IVRS & priority service to VIP customers

ˉ 100% Call Recording at the Call Centre

ˉ Caller Line Identification – Computer Telephony Integration at the Call Centre

Availing SMS services on 5-54-54-64

BYPL has introduced a SMS service 5-54-54-64 for your convenience. In case of a power

outage, voltage fluctuation or an outage due to a meter issue, now you - residents of East and

Central Delhi – can simply SMS and register your complaint. All you have to do is:

Type BSES <SPACE> FAUMDM

CODE <SPACE> CRN Number and SMS to 5-54-54-64

Fault Codes are:

1) NC for No Current,

2) VF for Voltage Fluctuation

3) MB for Outages on account of Meter Issues

Even Bill and Payment details are available through SMS. All you have to do is:

Type BSES <SPACE> BILL <SPACE> CRN Number and SMS to 5-54-54-64

Efforts are on to offer services such as, New Connection, Load Enhancement, Name/Address

and Category Change on this SMS services.

68

Electricity Calculator

A handy calculator to calculate the energy consumption of a consumer for his information is

also made available on the website. Any consumer can calculate their consumption by

multiplying 'a' (wattage) × 'b' (No. of appliance) × 'c' (consumption hours/day) × 30 (days)

and divide it by 1000 to convert W to kW.10

Figure 28 – A handy illustration to calculate the power consumption

10

The list and figures are indicative. Please calculate for your appliance and check actual wattage. Ref - BYPL Citizens Charter 2010

69

IVRS Service

Figure 29 – BSES IVRS Service

4.3.4 Implementation Benefits of ERP

ˉ Complete meter records and data are now maintained centrally in SAP

ˉ Validations will be performed to determine missed or faulty Meter Read data

ˉ Storage of historical data and current data facilitates the process of revision

11Ref - BYPL Citizens Charter 2010

70

ˉ Automatic calculation of charges, Interest, Taxes & posting to Finance General

Ledger

ˉ Scope of manual error and inconsistent data processing decreased through

system validations

ˉ Maintenance notification provides the details like complaints created,

complaints resolved, duration of breakdown etc.

ˉ Task list and Maintenance plan helps to create preventive maintenance schedule and

that can be monitored online

ˉ Cases of wrong calculations of bill payments in legacy system have been detected

by ERP system thereby causing significant economic benefits

ˉ Since 2002 over 1.7 lakh cases of power theft booked

ˉ Over 10.51 lakh KW of power theft load unearthed

ˉ Brings enhanced transparency in the process flow

ˉ The automatic payment process leads to predefined system driven approach

ˉ Availability of desired information to top management in time

Figure 30 – BYPL - AT&C Loss Reduction

12

BYPL Citizens Charter 2011

71

4.4 TPDDL (Tata Power Delhi DistributionLtd)

4.4.1 Company Profile

Tatapower-ddl is a joint venture between Tata Power Company and the Government of NCT

(National Capital Territory of Delhi) of Delhi with the majority stake being held by Tata

Power. It distributes electricity in North & North West parts of Delhi and serves a populace

of 50 lakh. The company started operations on July 1, 2002 post the unbundling of erstwhile

Delhi Vidyut Board. With a registered consumer base of around 12 lakh and a peak load of

around 1350 MW, the company's operations span across an area of 510 sq. Km.

Tatapower-ddl has been the frontrunner in implementing power distribution reforms in the

capital city and is acknowledged for its consumer friendly practices. Since privatisation, the

Aggregate Technical & Commercial (AT&C) losses in Tatapower-ddl areas have shown a

record decline. Today they stand at 13.2% (As on March 31, 2011) which is an

unprecedented reduction of over 75% from an opening loss level of 53%.

On the power supply front too, Tatapower-ddl areas have shown remarkable improvement.

The company has embarked upon an ambitious plan to implement high-tech automated

systems for its entire distribution network. Systems such as SCADA, GIS and OTS (Optical

Tracking System) are the cornerstone of the company's distribution automation project. To

fight the menace of power theft, modern techniques like HVDS (High Voltage Distribution)

System and LT Arial Bunch Conductor have been adopted.

Tatapower-ddl has to its credit several firsts in Delhi: SCADA controlled Grid Stations,

Automatic Meter Reading, GSM based Street Lighting system and SMS based Fault

Management System. To ensure complete transparency, the company has provided online

information on billing and payment to all its 1 million consumers. This happened in the first

year of operations itself. Tatapower-ddl believes in providing more value than just electricity

and is even rewarding its consumers for timely payment.

As a step towards captive generation, Tatapower-ddl has also established a 108MW gas based

combined cycle power generating facility at Rithala, North Delhi in its distribution area.

72

Tatapower-ddl has won several accolades for its pioneering efforts in power distribution

reforms. It has the rare distinction of being the first power distribution utility from India to

have received the prestigious honour in the international category by winning the 2008

Edison Award and again in 2009 for Policy Advocacy. Some of the other key recognitions

include international Palladium Balanced Scorecard Hall of Fame award- 2008, SAP Ace

award 2008; UPN, USA metering award; Asian Power Award 2011 (5th consecutive year),

Asia's Best Employer Brand Award 2011, Falcon Media Group- Best Performing Utility

(Urban), India Power Award- Research & Technology and the Asian Power Most

Inspirational CEO of the Year 2008 award. It is also the only distribution utility to receive the

ISO 9001, ISO 14001 and OHSAS 18001 certification.

4.4.2 Pioneering Technology Initiatives

Tatapower-ddl is credited with several pioneering initiatives and has set several benchmarks

in power distribution reforms in India.

4.4.3 Automation Initiatives & GIS

Tatapower-ddl embarked on automating all its 66 kV & 33 kV Grids and in line with the

same has already automated 34 grids with a view to operate all equipment from Central

command centre. This has expedited the resolution time for faults. The entire electrical

network has been mapped through GIS for enabling quicker fault location, speedy redressal

and the Outage Management System is being upgraded to be automated on GIS platform.

Complaint Management System

Tatapower-ddl has a unique SMS based Fault Management system using GSM which ensures

that the 'No supply' complaints lodged by a consumer gets addressed quickly and consumer

feedback is also institutionalized as part of the process.

73

Introduced online connection management by consumers

Tatapower-ddl uploaded the Billing details of all its consumers on its website

www.tatapower-ddl.com. Consumers can view their Bill, know the consumption pattern and

can even print Duplicate Bill and make online bill payments.

Consumer Relationship Management

Tatapower-ddl has institutionalized a structured approach towards Consumer Relationship

Management as it organizes regular meetings with consumer representative groups such as

RWAs, IWAs etc. on 1st Friday of every month in each district.

Automated Bill Payment Kiosks for consumer convenience

Tatapower-ddl has introduced Automated Bill Payment Kiosks, a first in Delhi and NCR

region. These unique ATM (Automatic Teller Machine) like kiosks accept both cash and

cheque payment towards electricity bills and even issue a receipt to the consumer. They are

operational 365 days a year from 8 AM- 8 PM.

4.4.4 System Setup at TPDDL

TPDDL have SAP IS-U implemented at their back end as the ERP package. The system they

had tailor made for their specific operations and have a data centre with single database and

centralised management system.

Various modules implemented under the ERP package includes – Material Management,

Maintenance Management, Preventive Management, Management Information System,

Meter Data Management, Strategic Enterprise Management, Billing, Customer Relationship

Management, Human Resource, FI-CO (Financial Accounting – Controlling).

The modules and processes are integrated via SOA architecture.

74

Data Collection Mechanism

Data collection mechanism in TPDDL is centralized in which data collected through various

collection centres (or points) is finally stored in a centrally connected server room. The data

collected is consolidated at MBC software using SAP PI, SAP ISU, SAP BW (Business

Warehouse) and home grown framework CFW.

Metering System

Various parameters measured and recorded by the energy meter are finally downloaded for

billing/ monitoring purpose. The downloading of parameter means transferring the

parameters from meter to the records of the service company. At TPDDL, they are using

AMR system. Downloading of the parameters using electronic gadgets which are attached to

the meter without manual intervention is called Automatic Meter Reading system. The gadget

attached to the meter downloads the parameter and then automatically communicates it to the

computer of the service company. The gadget used for downloading data is called Meter

Reading Instrument. The biggest advantage of MRI reading is that it avoids human error in

recording/ transfer of data.

Billing System

After the meter is connected/energised a K.No.is allotted based on the location and a nearby

consumer number. This determines your Cycle Number and Book Number. Based on Cycle

Number, readings are taken by our Meter Reader every month or bimonthly. After readings

are taken and verified, the data is sent to our Computer Division for generation of the bill.

The divisional office then distributes the printed bills through Bill Distributors.

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Collection System

TPDDL provides its consumer with several modes of bill payment options

ˉ TPDDL Cash Collection Centre and Drop Boxes ˉ Skypad Drop Boxes

ˉ Axis Bank Drop Boxes ˉ Jeevan CSC

ˉ Oxi Cash ˉ ATPM

ˉ Cash Collection Van ˉ ITZ Cash

ˉ Payment through Airtel Mobile ˉ Internet

ˉ Payment by IVRS–011-49165555

ˉ iPay Electronic Payment

Box

4.4.5 Advantages of Using SAP ISU to TPDDL and Customers

ˉ New SAP based solution has empowered consumers with better real time online

facility to check their customer account details via website

ˉ It has helped the DISCOM to introduce facilities like TOD [Time of day] billing,

fuel surcharge, etc.

ˉ Single integrated solution helps in easy maintenance, scalability and better

management

ˉ Easy Integration with OMS (Outage Management System) & GIS

4.4.6 TPDDL SAP ISU Login for Consumers

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Figure 31 – TPDDL SAPISU Login screen

Figure 32 – TPDDL - Power at your Fingertips

77

CHAPTER – 5

CONCLUSION& THE WAY

FORWARD

78

5.1 CONCLUSION

BSES have SAP IS-U implemented at their back end as the ERP package. The system they

had tailor made for their specific operations and have a central database and centralised

management system.

Various modules implemented under the ERP package includes – Material Management,

Maintenance Management, Preventive Management, Management Information System,

Meter Data Management, Strategic Enterprise Management, Billing, Customer Relationship

Management, Human Resource, FI-CO (Financial Accounting – Controlling).

The modules and processes are integrated via SOA architecture.

The company also have implemented AMR system utilizing both GSM and CDMA which

enables remote meter reading. However this system has been implemented for recording

meter data of Key Consumers only.

Implementation Benefits of ERP at BSES includes:

Complete meter records and data are now maintained centrally in SAP

Validations will be performed to determine missed or faulty Meter Read data

Storage of historical data and current data facilitates the process of revision

Automatic calculation of charges, Interest, Taxes & posting to Finance General

Ledger

Scope of manual error and inconsistent data processing decreased through system

validations

Maintenance notification provides the details like complaints created, complaints

resolved, duration of breakdown etc.

79

Task list and Maintenance plan helps to create preventive maintenance schedule and

that can be monitored online

Cases of wrong calculations of bill payments in legacy system have been detected by

ERP system thereby causing significant economic benefits

Since 2002 over 1.7 lakh cases of power theft booked

Over 10.51 lakh KW of power theft load unearthed

Brings enhanced transparency in the process flow

The automatic payment process leads to predefined system driven approach

Availability of desired information to top management in time

Data collection mechanism in TPDDL is centralized in which data collected through various

collection centres (or points) is finally stored in a centrally connected server room. The data

collected is consolidated at MBC software using SAP PI, SAP ISU, SAP BW and home

grown framework CFW.

Advantages of Using SAP ISU to TPDDL and Customers:

New SAP based solution has empowered consumers with better real time online

facility to check their customer account details via website

It has helped the DISCOM to introduce facilities like TOD (Time of day) billing, fuel

surcharge, etc.

Single integrated solution helps in easy maintenance, scalability and better

management

Easy Integration with OMS & GIS

80

5.2 THE WAY FORWARD – ERP WITH BI

Today the ERP along with BI is evolving to its full potential – adapting to developments in

Technology and the market demands and requirements.

The major drivers which are shaping ERP & BI are:

ˉ Improvements in Integration & Flexibility.

ˉ Extension to e‐Business Applications.

ˉ Broader reach to new users.

ˉ Adoption of Web based Technologies.

The ultimate goal of ERP implementation is to enable organizations to run most of their

business processes using one Web enabled system of integrated software and databases

instead of a variety of separate e‐ business applications.

A package of IT Solution Suite including GIS ‐ AMR / RMR – ERP ‐ SCADA would provide

a Complete Digital Solution and Automation to Power Distribution Utility.

The Indian Power utilities are lagging behind mainly due to financial constraints since the

imported solutions are very expensive and not always directly suited to the Indian conditions.

There is an enormous potential for the development of indigenous technology in this area.

What is important is to visualize the power of information in the field of Energy

Management. The Power Distribution Utilities now must gear up for managing the wave of

change that is sure to hit the Power scenario in the near future.

5.2.1 Business Intelligence

Business intelligence (BI) is defined as the ability for an organization to take all its

capabilities and convert them into knowledge. This produces large amounts of information

81

which can lead to the development of new opportunities for the organization. When these

opportunities have been identified and a strategy has been effectively implemented, they can

provide an organization with a competitive advantage in the market, and stability in the long

run (within its industry).

BI technologies provide historical, current and predictive views of business operations.

Common functions of business intelligence technologies are reporting, online analytical

processing, analytics, data mining, process mining, complex event processing, business

performance management, benchmarking, text mining, predictive analytics and prescriptive

analytics.

Business intelligence aims to support better business decision-making. Thus a BI system can

be called a decision support system (DSS). Though the term business intelligence is

sometimes used as a synonym for competitive intelligence, because they both support

decision making, BI uses technologies, processes, and applications to analyse mostly internal,

structured data and business processes while competitive intelligence gathers, analyses and

disseminates information with a topical focus on company competitors. Business intelligence

understood broadly can include the subset of competitive intelligence.

Business intelligence solution is often referred to as business intelligence tools (BI tools)

representing a number of software applications that integrate to provide the means to report,

analyse and then present the data. Business intelligence software is also designed to use data

that is stored by the business in any type of data storage system or data warehouse.

The types of tools that make up a business intelligence software application solution

generally include tools for spreadsheets, operational dashboards, data mining, reporting,

search (query), OLAP (On-Line Analytical Processing), content viewer, and other

components of enterprise resource planning (ERP) systems. Often, business intelligence

software may also integrate tools designed for specific verticals, such as retail, healthcare or

education.

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Figure 33 – Business Intelligence Solution Architecture

Business intelligence software applications can be deployed in a number of ways, with the

following being the most common options:

ˉ Cloud Computing (cloud) Implementation: private cloud, hybrid cloud or a public

cloud.

ˉ On-Premise Installation: deployed in-house using owned or leased equipment.

ˉ SaaS (hosted on-demand): hosted by the application service provider (ASP).

Market has seen being dedicated to the ERP solutions alone. Emerging with new kind of

83

problems, BI solutions have slowly gained importance. During the recession towards the end

of last decade, companies have attributed their sailing through recession to BI solutions. BI

solutions have started gaining importance not only among the corporate and management but

also at operational level. But the question of the hour is has the BI solutions reached their true

potential? Even experts have been finding it difficult to define the extent to which BI can be

exploited to reach the level of maximum profitability. BI along with predictive analytics is

penetrating market at a tremendous speed. Companies are collaborating with consultants and

BI solution providers to cache-in on best of the best BI solutions. Truly, the growth of

business intelligence has been beyond imagination.

84

PREPARATION OF

“DETAILED PROJECT REPORTFOR

STRENGTHENING OF EXISTING

DISTRIBUTION NETWORK OF BIHAR

STATE”{UNDER BRGF SCHEME PHASE II }

TO MEET THE PROSPECTIVE LOAD DEMAND

FOR XIITH

5 YEAR PLAN (2012-17)

85

Introduction About State

The power sector in the state of Bihar is managed by the Energy Department, Government

of Bihar. The entities which run the power sector in the state of Bihar pre-unbundling of the

state electricity Board was as under:

Erstwhile Bihar State Electricity Board (BSEB) – The erstwhile BSEB undertakes the

activities of power purchase, trading, generation through thermal resources,

transmission and Distribution in the state of Bihar. The Board prepares schemes on

electricity generation, transmission & distribution for which the state government

provides funds for implementation of the scheme from its plan allocation and also

obtains central allocation/funding from the Govt. of India.

Bihar State Hydroelectric Power Corporation (BSHPC) – BSHPC has been established

to harness the hydroelectric potential in the State. The BSHPC conducts survey for this

purpose and prepares the schemes on hydroelectric power generation. The State Govt.

provides funds from its plan allocation and also facilitates funding, from the Central

Government and Govt. of India Financial institutions.

Bihar Renewable Energy Development Agency (BREDA) – BREDA has been

established to promote development of schemes on non- conventional energy sources. It

has been nominated as nodal agency to carry out the remote village electrification

programme. The State Govt. provides plan funds to BREDA for expenditure on

subsidies for the schemes and also for the expenditures on establishment.

TenughatVidyut Nigam Limited (TVNL) - TVNL was established by the Govt. of Bihar

by 1987 for establishment of thermal power station at Lalpania in the district of Bokaro,

now in the state of Jharkhand. The registered office of the company is situated at Patna.

The TVNL has been transferred to the Govt. of Jharkhand by the Govt. of India.1

Power Scenario in the State

With the creation of Jharkhand State, the power generation capacity in State of Bihar has

been adversely affected. The major power generating stations under the state sector

at Patratu (840 MW units), Tenughat (420 MW units) and Sikidri (130 MW Hydel) are

1 The State Govt. of Bihar has raised the issue of dispute of ownership with the Govt. of India and

has also petitioned the Supreme Court under provisions of the Bihar Re-Organisation Act, 2000.

86

now located in the state of Jharkhand. While 70% of the generation capacity of erstwhile

Bihar has been shifted to the jurisdiction of state of Jharkhand, 70% of the load is left with

the present. Installed capacity (in MW) of Bihar Sector wise (as on 30.11.2012):

Ownership

Sector

Model wise Breakup Grand

Total Thermal

Nuclear Hydro RES* Coal Gas Diesel

State 210.00 0 0 0 0 66.30 276.30

Private 0 0 0 0 0 29.50 29.50

Central 1414.70 0 0 0 129.43 0 1544.13

Sub-total 1624.70 0 0 0 129.43 95.80 1849.93

* RES - Renewable Energy Sources include SHP, BP, U&I, Solar and Wind Energy

There are total 82 Grids in the state across 7 Transmission Circles. The 7 Transmission

Circles are as follows:

1. Patna Transmission Circle

2. Biharsharif Transmission Circle

3. Gaya Transmission Circle

4. Dehri-on-sone Transmission Circle

5. Muzaffarpur Transmission Circle

6. Purnea Transmission Circle

7. Bhagalpur Transmission Circle

The status of Transmission lines in the state are as follows:

Sl. No. Type of Line Length (Kms)

1 400 kV Line 75.00

2 220 kV Line 1141.09

3 132 kV Line 4357.18

AT & C Losses in the State: AT & C losses for Bihar state was 47.38 %, 34.37 % and 43.92

% respectively for FY 2007-08, 2008-09 and 2009-10. The Peak demand of Bihar state in

FY 2012-13 was 3000 MW whereas transmission capacity is 2600 MW & distribution

capacity is 2400 MW and the peak met was 1784 MW, the deficit of 40.53 %. Bihar has the

losses (on accrual basis) of Rs 1412 Crores during the year 2009-10 (as per PFC report).

The requirement of energy during financial year 2012-13 was 15,410 MU and the

availability was 12,835 MU.The energy deficit of 16.7%, which is very high and in the top

5 in all the states of India (as per CEA report).

87

Background of erstwhile BSEB

The erstwhile Bihar State Electricity Board was constituted under section 5 of the

Electricity Supply Act, 1948 vide Bihar Government's Notification No. 2884 ‐ A/AI‐121/57

dated 25th March, 1958 with effect from 1st April, 1958. The Board is a deemed licensee as

per the section 14 of the Act and is engaged in the business of generation, transmission and

distribution of electricity in the State of Bihar. In terms of Section 172 of the Act, the Board

constituted under the repealed laws shall be deemed to be the State Transmission Utility

(STU) and a licensee under the provisions of the Act for a period of one year from 10th

June 2003 i.e. the appointed date. On the request of Government of Bihar from time to time

Central Government has agreed to extend the time to continue the Board to function as a

STU and Distribution licensee. Last extension granted to the Board was up to 31.12.2010.

Unbundling of erstwhile BSEB

The erstwhile State of Bihar had been reorganized as per the Bihar Re-organisation Act,

2000 (Act no. 30 of 2000) and a new State of Jharkhand had been carved out of the State of

Bihar. Consequently, the Ministry of Power (MoP), Government of India (GoI), in view of

the power conferred to it vide sub-section (3) of section 62 of the Bihar Re-organisation

Act, 2000, issued a notification dated November 4, 2004 in respect of dissolution of the

erstwhile BSEB and apportionment of its assets, rights and liabilities between the successor

Electricity Boards of Bihar and Jharkhand.

After the enactment of the Electricity Act 2003, the Government of Bihar was required to

unbundle the BSEB into successor corporate entities towards meeting the challenges

resulting from the on-going power sector reforms and to enhance the efficiency and

effectiveness as per the requirements of the Electricity Act 2003.

In view of the above, the Energy Department, Government of Bihar (GoB) vide its

Resolution No. 3006 dated August 2, 2006 (read with Energy Department, GoB‘s

resolution no. 218 dated 31st Jan‘ 31, 2006, no. 733 dated 3rd March, 2006 and no. 999

dated 6th March, 2012) had decided to form the following successor corporate entities

consequent to the re-organisation of BSEB:

(1) Bihar State Power (Holding) Company Limited (Holding company);

(2) Bihar State Power Generation Company Limited;

88

(3) Bihar State Power Transmission Company Limited;

(4) South Bihar Power Distribution Company Limited;

(5) North Bihar Power Distribution Company Limited;

with effect from 1st November‘ 2012 vide notification no: 31/ 2008-17.

Bihar State Power (Holding) Company Limited means the Company that will own

shares of newly incorporated reorganized four companies i.e. Bihar State Power

Generation Company Limited, Bihar State Power Transmission Company Limited,

South Bihar Power Distribution Company Limited, and North Bihar Power

Distribution Company Limited

Bihar State Power Generation Company Limited means the Generating Company to

which the Generating Undertakings of the Board are to be transferred in accordance

with this Scheme

Bihar State Power Transmission Company Limited means the Transmission Company

to which the Transmission Undertakings of the Board are to be transferred in

accordance with this Scheme

South Bihar Power Distribution Company Limited & North Bihar Power Distribution

Company Limited, collectively mean the Distribution Companies, to which the

Distribution Undertakings of the Board are to be transferred in accordance with this

Scheme. The four area offices of erstwhile BSEB - PESU, Patna central, Magadh and

Bhagalpur - have been regrouped to form one company, i.e. South Bihar Power

Distribution Company Limited. Consequently, PESU (East), PESU (West), Patna,

Ara, Nalanda, Gaya, Rohtas, Bhagalpur and Munger circles will constitute the South

Bihar Power Distribution Company Limited. Three area offices - Tirhut, Mithila and

Kosi - have been combined to form another company, i.e. North Bihar Power

Distribution Company Limited. Consequently, Muzaffarpur, Chhapra, Motihari,

Darbhanga, Samastipur, Saharsa and Purnia circles will come under the North Bihar

Power Distribution Company Limited.

Operationalization of New Entities

Energy Department, Govt. of Bihar vide its Notification No. PR/Board Punar no-31/2008

(Vol-I) 17 dated 30.10.2012 has issued the ―Bihar State Electricity Reforms Transfer

Scheme, 2012‖ for providing and giving effect to the transfer of properties, interests, rights,

89

assets, liabilities, obligations, proceedings and personnel of Bihar State Electricity Board to

the successor companies.

The Scheme has come into force with effect from 01.11.2012 and on the expiry of the

period of one year, the transfer of undertakings, properties, interests, rights, assets,

liabilities, personnel and proceedings made in accordance of the scheme shall become final.

All the successor entities have commenced their operation since then and the transfer of the

assets and employees is ongoing under the committees formed by Bihar State Power

(Holding) Company Limited.

Constitution of Distribution Companies

As per the notification, the Distribution assets of the erstwhile Bihar State Electricity Board

have been transferred to the two distribution companies – North Bihar Power Distribution

Company Limited and South Bihar Power Distribution Company Limited.

Constitution of two distribution companies as mentioned above is based on grouping of

seven area offices. As such from area level and below there is no change from the existing

system. In the existing seven areas include 16 circles, which are shown in a tabular form

below:

Area Board Electric Supply Circle

PESU 1. PESU East

2. PESU West

Patna Central

1. Patna

2. Bhojpur (Ara)

3. Nalanda

Magadh 1. Gaya

2. Rohtas

Bhagalpur 1. Bhagalpur

2. Munger

Tirhut 1. Muzaffarpur

90

Area Board Electric Supply Circle

2. Chapra

3. Motihari

Mithila 1. Darbhanga

2. Samastipur

Kosi 1. Saharsa

2. Purnea

The four area offices i.e. PESU, Patna central, Magadh and Bhagalpur have been regrouped

to form one company, i.e. South Bihar Power Distribution Company Limited. PESU (East),

PESU (West), Patna, Ara, Nalanda, Gaya, Rohtas, Bhagalpur and Munger constitutes the

South Bihar Power Distribution Company Limited. The three area offices i.e. Tirhut,

Mithila and Kosi Areas are combined to form another company, i.e. North Bihar Power

Distribution Company Limited. Consequently Muzaffrapur, Chapra, Motihari, Darbhanga,

Samasthipur, Saharsa and Purnea Circles are automatically combined within the company

North Bihar Power Distribution Company Limited.

Apart from these circles there are seven pole factories and seven TRWs (Transformer

Repair Workshops) which provide the support services to the distribution system. However,

with the existing practice, Head of the pole factory and transformer repair workshop report

directly to Head-Quarter and they are not directly a part of the distribution system. The

existing TRWs and pole factories have been allocated to the Discom in the respective

jurisdiction. The final shape of the distribution companies is shown in a tabular form.

Distribution Company Circles and other establishment

North Bihar Power

Distribution Company

Limited

Electric Supply Area: Kosi (Saharsa)

Electric Supply Circles: Saharsa, Purnea

TRW: Katihar, Saharsa

Pole Factory: Katihar

Electric Supply Areas: Tirhut (Muzaffarpur), Mithila

(Darbhanga)

Electric Supply Circles: Muzaffarpur, Motihari, Chapra,

91

Distribution Company Circles and other establishment

Darbhanga, Samastipur

TRW: Muzaffarpur, Darbhanga

Pole Factory: Madhopur, Khabra.

South Bihar Power

Distribution Company

Limited

Electrical Supply Area: Central (Patna), PESU (Patna)

Electric Supply Circles: PESU (East), PESU (West), Patna,

Bhojpur (Ara), Nalanda (Biharsharif)

TRW: Patna

Pole Factory: Patna and Ara

Electric Supply Area: Magadh (Gaya)

Electric Supply Circles: Gaya, Rohtas (Sasaram)

TRW: Gaya

Pole Factory: Barun, Dandibagh (Gaya)

Electric Supply Area: Bhagalpur

Electric Supply Circles: Bhagalpur, Munger

TRW: Bhagalpur

The main functions and duties of both the distribution companies in their respective license

areas are as follow:-

(a) To undertake the activities of distribution to all consumers irrespective of the voltage,

provision, supply, wheeling, purchase, sale, import, export and trading of electricity,

introduce open access in distribution as per the Electricity Act 2003 and/or the

directions of the regulator.

(b) To plan, develop, acquire, establish, construct, erect, lay, hire, lease, buy, sell, operate,

run, manage, maintain, enlarge, alter, renovate, modernize, work and use a power

distribution system network in all its aspects including amongst others various voltage

lines and associated sub -stations, including distribution centres, cables, wires,

accumulators, plants, motors, meters, apparatus, computers and materials connected

with sub -transmission, distribution, supply of electrical energy, ancillary services,

telecommunication and telemetering equipments.

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(c) To tender, finalise and execute Power Purchase Agreements and other agreements for

sale or purchase of electricity with generating companies, trading companies, other

distribution companies, Central and State generating authorities, departments or

companies, societies, other States, utilities, Independent Power Producers and other

Persons.

(d) To undertake Rural Electrification schemes in the licensed area.

Status of power sector in the state

The state of Bihar has been on a path of growth since the last few years. The developmental

activities in the various sector in the state has resulted in impressive growth rate of the state.

In the 11th Plan period against the all India growth rate of 7.94 percent, Bihar achieved a

growth rate of 12.08 percent at constant prices. The primary sector of the state is

experiencing a decline in the share of state‘s gross domestic product – from 37.49 percent

in 2000-01 to 18.12 percent in 2011-12 (adv). This is due to the developments in the

secondary sector. In the last six years the demand of the state has grown at a compounded

annual growth rate of about 8 percent. The gap between demand and supply was highest

during 2009-10 at 32.9 percent (720 MW)2. This gap has reduced in the year 2011-12 to

15.5% owing to the short and medium term purchases by erstwhile BSEB. In addition to

augmentation of the capacity in generation, the state is working towards increasing the

availability of transmission lines and improving the distribution network infrastructure.

Peak Demand and Peak Demand Met in

(MW) for Bihar

Allocations of Power for Bihar in FY

2012-13

(Source: CEA Annual reports) (Source: BERC Tariff Order FY 2012-13)

2 CEA, Annual Reports

1399

1882 1842

22492140 2057

1162

12431333

15091659 1738

0

500

1000

1500

2000

2500

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12Peak Demand (MW) Peak demand Met (MW)

NTPC54%

NHPC5%

PTC13%

Others3%

ST/MT17%

BSEB8%

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There has been a steady rise (Rs 2.25 per unit at 11.1 percent CAGR) in Average Billing

Rate during FY 2005-06 to FY 2011-12. For FY 2011-12, Commercial categories of

consumers had the highest Average Billing Rate.

Growth of energy sales (MU) Growth in Consumer numbers

(Source: erstwhile BSEB Annual reports)

(Source: erstwhile BSEB Annual reports)

The three major categories of consumers in terms of energy sales are domestic, Industrial

HT and interstate sales. Industrial and Domestic consumers contribute to about 50% of the

total sales.

Transmission and Distribution Loss of the Board for FY 2011-12 was 44.05 percent. This

value is higher than the target fixed by the Regulatory Commission. The Board is making

efforts to reduce the losses. The Capex works planned in the MYT period from FY 2013-14

to FY 2015-16 are aimed to reduce the losses of the Board.

Issues in Distribution: The distribution system is going through a transition phase, on one

hand it is trying to meet its financial requirement along with increasing accumulated losses

and on the other hand it is investing in capital projects.

0%

20%

40%

60%

80%

100%

Domestic CommercialPublic Lighting Irrigation & AgriculturePublic Water Works Industrial L.T.Industrial H.T. RailwayInter State

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

94

Figure 3: Issues in Distribution function of erstwhile BSEB

The factor responsible for the current status of power sector in Bihar can be summarized as

below:

Inadequate investment on transmission and distribution, particularly in sub-

transmission and distribution. While the desired investment ratio between generation

and T&D should be 1:1,

Low investment has resulted in overloading of the distribution system without

commensurate strengthening and augmentation.

Haphazard growths of sub-transmission and distribution system with the short-term

objective of extension of power supply to new areas.

Large scale rural electrification through long 11kV and LT lines.

Too many stages of transformations.

Improper load management.

Inadequate reactive compensation

Poor quality of equipment used in agricultural pumping in rural areas, cooler air-

conditioners and industrial loads in urban areas.

Overloading of existing lines and substation equipments

Absence of up gradation of old lines and equipments

Low HT: LT ratio

Poor repair and Maintenance of equipments

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Non-installation of sufficient capacitors

Low metering/billing/collection efficiency

Demand Projections

The state is going through a rapid economic expansion phase. The power sector of the state

has to grow at a similar pace in order to cater to the growing need of the state.

Table 1 Trend of Peak Demand and Peak Demand Met (in MW)

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Peak Demand (MW) 1399 1452 1482 1509 1882 2192

Peak demand Met

(MW) 1162 813 973 769 1401 1873

As the current supply is under constraints hence, the current peak demand will see atleast

two-fold rise in the coming years. The following targets are planned for the state of Bihar as

available form MoM of 18th EPS

Achieving per-capita electricity consumption of 770 units

Electrification of Additional 17,000 villages

Capacity addition programme of 6600 MW up 2015-16 and 14000 MW by 2016-17.

Table 2 18th

EPS projections for Bihar State

18th

EPS Projections 2012-13 2013-14 2014-15 2015-16 2017-18

Peak Demand (MW) 2642 3194 3873 4472

5108

(Revised

5620)

Energy requirement

(MU) 16389 19478 23214 26330 29539

Using the plan for capacity augmentation and energy availability, Peak demand and Peak

Demand met, projections for FY 2012-13 to FY 2015-16 shows that the gap between

demand and supply will reduce It can be seen that the gap will reduce and the state will be

able to meet its peak demand by 2015-16.

96

Ongoing Scheme in State

Rajiv Gandhi GrameenVidyutikaran

Yojana Rajiv Gandhi GrameenVidyutikaranYojana is aimed at building rural electricity

infrastructure and household electrification towards the National Common Minimum

Programme goal of access to electricity for all. Under the scheme, 90% capital subsidy is

provided by Government of India for overall cost of projects. In Bihar, under this scheme

total number of DPR‘s are forty three (43), and total amount released is Rs. 3886.7 crores.

About 30% of the target connections in rural areas including BPL households have been

achieved and the remaining work is in progress.

R-APDRP

In R-APDRP scheme it is proposed to cover urban areas - towns and cities with population

of more than 30,000 (10,000 in case of special category states). In addition, in certain high-

load density rural areas with significant loads, works of separation of agricultural feeders

from domestic and industrial ones, and of High Voltage Distribution System (11kV) will

also be taken up. In order to improve operational efficiency, reliability and quality of

services to be provided to their valuable consumers, BSPHCL intends to take up

distribution reforms under R-APDRP Scheme in 11th Five Year Plan launched by Ministry

of Power, Govt. of India to reduce Aggregate Technical & Commercial Losses.

The R-APDRP primarily aims at reducing Aggregate Technical and Commercial (AT&C)

losses

Feeder Segregation

Feeder Segregation Project is underway to separate agricultural Consumers from non

agricultural consumers. This will help in proper utilization of total energy available .Also; it

will enhance the per capita energy consumption of Bihar. The main objective is to provide

assured and quality supply of power for the agricultural purposes in rotational manner for

specified hours of the day. It has already started in Patna district as a pilot project.

Before finalization of this DPR all other major ongoing schemes under RGGVY, R-

APDRP, ADB, FSS and other state schemes have been considered.

Integration has been done of all the schemes with load growth before finalization of the cost

estimate for this DPR.

97

BRGF- Phase-1

Backward Region Grant Fund is the scheme which is meant for development of backward

region at Panchayat and Municipal level so that it will strengthen the existing infrastructure

of this backward region. The main purpose of this scheme is to provide electricity to every

households of backward region.

Under phase –I of the BRGF scheme, SBPDCL has decided to focus on the removal of

immediate distribution constraints so as to able to meet the peak load requirement of FY

2013-14 by strengthening the distribution network.

In this regard, for system strengthening & removal of distribution constraints to cater the

peak load requirement of 2013-14 of South Bihar, an scheme and DPR with project cost of

Rs. 1252.90 Cr. under Phase-I has been posed for sanction under BRGF out of which Rs.

968.86 Cr. has been recommended by CEA vide CEA Letter No. CEA/ DPD/ Bihar (DPR)

2013/ 873 dated 12th June 2013. Post implementation of this scheme, the system would

able to cater the peak demand of FY 2013-14.

BRGF Phase II

SBPDCL has planned to strengthen the distribution network to meet the peak load of FY

2016-17. Further, for strengthening of power distribution system under South Bihar to cater

the projected requirement of load growth as projected in 18th EPS which is 3500 MW

(5620 MW for entire state of Bihar) by FY 2016-17 has been worked out and a DPR with a

cost estimate of Rs. 1938.52 Cr. under phase-II has been prepared which is in addition to

the CEA recommended cost of Rs. 968.86 Cr under Phase-I making total cost of Rs.

2907.38 Cr. under Phase-I and Phase –II.

The action plans for strengthening of Power Distribution system to meet the projected load

growth for FY 2016-17 has been prepared in line with the CEA recommendation. The main

features and system capacity addition covered under BRGF-II is as below:

• New 33 kV lines and strengthening of existing 33 kV feeders;

• Additional PSS/Augmentation of existing Power Sub Stations capacities;

• Strengthening of protective systems in Power sub- stations;

• Provision of capacitor Banks in selected Power Sub stations;

• New 11 kV lines & strengthening of existing 11 kV feeders;

98

• Sectionalisation of 33 kV & 11 kV lines and provision of fault passage indicators

(F.P.I.);

• Additional D.T./ Augmentation of existing Distribution Transformer capacities;

• Strengthening of L.T. lines (removal of Bans- Balla);

• Use of phase separators in L.T. Lines & Guard wires in H.T. lines;

Recommendations to the North & South Bihar Power Distribution Co.Ltd.were :

New 33 kV lines and strengthening of existing 33 kV feeders;

• Additional PSS/Augmentation of existing Power Sub Stations capacities;

• Strengthening of protective systems in Power sub- stations;

• Provision of capacitor Banks in selected Power Sub stations;

• New 11 kV lines & strengthening of existing 11 kV feeders;

• Sectionalisation of 33 kV & 11 kV lines and provision of fault passage indicators

(F.P.I.);

• Additional D.T./ Augmentation of existing Distribution Transformer capacities;

• Strengthening of L.T. lines (removal of Bans- Balla);

• Use of phase separators in L.T. Lines & Guard wires in H.T. lines;

Estimated yield from the Project and Economic Implications:

This investment is designed to remove future constraints and to meet forecasted demand

growth (2016-17) through capacity augmentation and loss reduction, and a tariff regime that

recognizes actual and reasonable operating costs and encourages efficient use of capital.

Further, the investment would reap the following benefits:

AT&C loss reduction

Reliability enhancement

Meet the Load growth

Enhance the electrical Infrastructure

For each of the bundles, the benefits have been translated into electrical energy savings or

commercial savings may be allocated to the following heads:

Technical loss reduction/ savings in energy purchased from Transmission Company

99

Technical loss reduction / savings in energy purchased from Transmission Company will be

achieved through in a big way through up-gradation & strengthening of distribution system.

Increased number of 33 kV and 11 kV feeders will not only reduce the overloading of

existing feeders but also reduce the technical losses in a big way. The installation of

additional DSS in the mids of the load center will improve the HT to LT ratio thereby

reducing the major technical losses occurring in LT system.

Commercial loss reduction

Provision of full scale consumer metering with quality meter will reduce the commercial

losses taking place in meter reading. Provision of system metering and ABC in LT network

will reduce the theft in a bog way and provide a tool for reduction in commercial losses.

Increase in reliability & Safety

Enhanced capacity

Due to above measures as proposed under this scheme coupled with strong administrative

measures and changing scenario, it is expected that the project will yield good dividend both

in form of reduction in AT&C losses and providing quality and reliable power supply to the

consumer by bringing the failure rate of DTs and PTs and break downs of 33 kV, 11 kV and

LT lines.

Program Schedule

The Project programme is to study the existing system regarding constraints in the

Distribution system and to develop the infrastructure to reduce the constraints in the

Distribution of the electricity with in time frame of 2 years.

The estimate has been finalized on the basis of the discussion and the data received from

Section, Sub-Division, Division and Circles. All the distribution constraint inputs have been

taken care before finalizing the estimate cost. From this estimated cost, peak load

100

requirement of 3000MW of load for year 2012-13 and expected peak load during 2013-14

will be met for infrastructure would be laid down & in next two years the reliability issues in

distribution sector may be sorted out.

The maximum time for the execution of this work has been decided for two years from the

date of the approval of this DPR.

After the approval of DPR,BSPHCL may go for tender and after the finalization of vendor

work could be started and completion period would be two and half years.

The benefit of this scheme will come after the energization of the proposed network. This

will come in terms of revenue collected due to improvement of the system reliability index

(e.g. SAIFI and SAIDIetc), AT &C Loss reduction and capacity addition.

2.4.Expenditure Involved

Total Budget involved in this scheme is 138 crores for next two years. This fund may be

approved through BRGF.

As the Bihar government has budget constraints,hence this amount has not covered in any

state annual plan.All the cost estimates has been taken from approved BSHPCL SOR

(Schedule of Rate).

Reliability of Cost Estimates and other parameters:

The Pre-Project Investigation was carried out in details aselaboratedbelow to achieve the

objective of the project as described below:

(i) Capacity Addition

Establishing new 33/11 kV sub-stations

Providing additional Transformers in the existing 33/11kV Sub-Stations

101

Enhancing the capacities of existing 33/11 kV sub-stations

Providing additional 33kV feeders, and bifurcation of existing feeders

Providing additional 11kV feeders and bifurcation of existing feeders

Reconductoring of 11kV Lines

Reconductoring of 33Kv Lines

Providing additional DTs at overload centers

(ii) Approach and Methodology

During Proposing the removal of distribution constraint in the system, the first and

foremost work is to study the existing system, present status and immediate action to be

taken to meet the requirement of consumers, to provide un-interrupted and quality supply to

the consumers. In present scenario, it has been noted that in distribution system is loaded

much more than their rated current carrying capacity resulting to failing of the Distribution

System and inadequate electrical Infrastructure to provide electric supply to consumers .

Following activities were performed to collect the broad base data, for study and design to

achieve the target of removing distribution constraints in two year time period

(a) Study of Existing Load Data

(b) Study of existing Load carrying capacity of the conductor

(c) Future load growth study

(d) Study of capacity met by the upcoming schemes i.e. RGGVY. R-APDRP

(e) Study of thermal capability of conductors - capacity of feeders/circuits

(f) Economic Impacts

(iii) Planning Criteria & Design Approach

(a) Survey

The survey of all the networks viz. 33kV, 11kV and 415V were carried out. All the

information in the field during survey used to be recorded in the field registers including

indicating the land marking of DTs etc.

(b) Study of Existing System and Designing of Upgradtion System

102

Based on the network created for the existing system, analysis of losses and voltage

regulations were made. The standard formulae and Calculation system is adopted for study

and improvement. The study is made for following conditions.

(c) Existing System Status with existing load demands

The voltage regulation at 33kV to LT System is calculated. To arrive at it, all DTs and all

feeders under 33/11kV substation feeding the project area is considered. This provides the

base for assessing and estimating all future improvements that are feasible both for the

present and the future. It also indicates the areas which need improvements/strengthening or

modifications.

(d) Existing System Status with horizon load demands

The horizon year is the period up to which the impact or the targets of the

improvements/strengthening and are to be felt, based on a projected 5% (approximate) load

growth per year and identifies the critical areas to be addressed. Five years period has been

taken in this project. The voltage regulations at 33kV to LT system under Existing

infrastructure with horizon load are calculated. The area which needs improvement /

Strengthening or modification is studied.

Before finalization of this cost estimate all the parameters have been taken care off. Schedule

of Rate of BSPHCL and other state utilities has been considered before finalizing this project

estimate.

Operational capabilities

The company is developing its own operational capabilities and as per requirement is taking

the services of project Management Consultant for successful execution of the project.

This project will be implemented by inviting a tender on turnkey basis, due to non-

availability of funds tender has not been floated.

103

Viability

Cost benefits for this investment justify the Capex vis-à-vis to the benefits accrued out of the

scheme. With new scheme there will be substantial reduction in AT&C losses and the system

performance and system utilization will be better that will contribute to revenue and project

benefits.

The prime benefits out of the scheme shall be accessed based on the following results:

a) Reduction in technical & commercial losses of the new system. Comparison of system

losses between existing & new system will be used as a parameter for benefit accrued out

of this project. The increase in revenue due to the savings by reduction in T&D losses on

the purchase of energy shall be evaluated at the energy sale rate of the utility.

b) The increase in revenue due to sale of energy by capacity addition of substation will also

contribute towards energy benefit.

c) Sale of energy due to reduction in outages due to system breakdown & system failures.

d) With the new system O&M cost will reduced and reduction in O&M cost will also

constitute to the energy benefit.

104

ANNEXURES

105

ANNEXURE1

Information Technology Implementation Questionnaire

BSES Delhi

PART-A {METERING (AMR)}

Q 1. What is the procedure of metering?

a. Manual b. Automated

Q 2. If automated, which categories of consumers are covered?

a. HT b.

Commercial

c. Every consumer (including LT)

Please Elaborate NA

Q 3. What type of Automated

metering it is?

a. Online b. Offline

Q 4. What is the mechanism of data collection of Energy consumption & what is the

Architecture?

a.

Centraliz

ed b.

RTU (Remote Terminal

Units)

Q 5. What type of Communication technology is being used?

a. CDMA b.

GPRS

c. PLCC

i. Circuit Switching

ii. Packet Data

Working on PLCC Project to test the feasibility

Q 6. How you connect your consumers to data centre for gathering Energy Consumption

details?

There are AMR enabled meters with GSM / CDMA supported installed at consumer

premises. The servers at our data centre gather the real time data for billing and load

survey from the meters using the type of technology installed automatically. The data is

then transferred to SAP for billing and further analysis. Q 7. How do you utilize the data gathered from the AMR system?

Billing & demand forecasting Q 8. How is the data consolidated at the MBC software?

SAP PI, SAP ISU, SAP BW and in house developed solution is used.

106

Q 9. What are the major modules implemented under this solution and what features does it

have?

SAP Billing & Invoicing, Device management, Customer services, EDM, HR

a.

Network Diagram

representation

f. System topological

information

b. Remote monitoring g.

Report generation and Printing

c. Alarm generation h.

Real Time monitoring

d. Editing feature i. Load Shedding

e. Customizing j. Any other feature

Q 10. What is the software platform used

for MBC?

a. Microsoft b. Oracle c. SAP

Q 11. Have you ever used any MBC solution before the present one?

a. Yes b. No Q 12. If Yes, What was that, and reason to change from that?

For better integration & move with the industry standards. Q 13. How has the new solution benefitted the DISCOM and Consumers?

It facilitated us with greater system control and monitoring Single integrated solution helps in easy maintenance, information review and

better management Easy Integration with GIS & SCADA

Q 14. What are the additional features and envisage in the solution?

NA Q 15. What are the Major modules implemented under this solution?

a. Master Data and Basic Functions b. Customer Services c. Work Management d. Device Management e. Billing & Invoicing f. Energy Data Management g. Contract Accounts h. CRM – Customer Relationship Management i. BW – Business Warehouse. j. Any Other

107

Q 16. What type of further improvement would you like to see in this field?

NA

PART-B (BILLING)

Q 1. What is the procedure of billing?

a. Manual b. Automated Q 2. How can the Consumers access their bills?

a. Door delivery

b. Online

c. Mail / Post

d. Any other

i. Spot billing and mobile collection facility

ii. SMS Q 3. What is the consumer base catered under this solution?

a. LT/HT & Key Consumers

b. SLCC Consumers

c. Government Consumers Q 4. What type of further improvement would you like to see in Billing Solution?

AMI and Smart Grid will be the next step ahead

PART-C (COLLECTION)

Q 1. How does a consumer can pay their bills?

a. Cash Payment Counters

b. Cheque Drop Box

c. Online Payment – Credit/Debit/Net-Banking

d. If Card Payment – Types of Cards Accepted – Master/Visa/Maestro/American

Express/Any Other

e. Direct debit from bank accounts

f. Mobile Collection Centers

g. Kiosk – ATPM M/C,s

h. JEEVAN Counters

i. And Many More Q 2. How it is integrated with other Modules?

The modules are integrated via SOA.

108

Q 3.How is the collection efficiency improved since the implementation of this system (in

%)?

Not Available Q 4. What type of further improvement would you like to see in this field?

Not Required

109

TPDDL Delhi

PART-A {METERING (AMR)}

Q 1. What is the procedure of metering?

a. Manual b. Automated

Q 2. If automated, which categories of consumers are covered?

a. HT b.

Commercial

c. Every consumer (including LT)

Please Elaborate.

Connections above 10 KW are AMR enabled. Currently 50,000 AMR enabled consumers.

Q 3. What type of Automated metering it is?

a. Online b. Offline Q 4. What is the mechanism of data collection of Energy consumption & what is the

Architecture?

a.

Centraliz

ed b. RTU (Remote Terminal Units)

Q 5. What type of Communication technology is being used?

d. CDMA b. GPR

S c. PLCC

i. Circuit Switching

ii. Packet Data

Q 6. How you connect your consumers to data centre for gathering Energy Consumption

details?

There are AMR enabled meters with GSM supported SIM cards placed at consumer

premises. The central communication servers present at our data centre gather the billing

and load survey details from the meters via GSM technology and capture the information

on a periodic basis which is auto scheduled. The data is then transferred from

communication server to meter data server and further to SAP – ISU for billing and SAP

BW for analysis. Q 7. How do you utilize the data gathered from the AMR system?

The Billing and load survey data gathered from AMR meters is used for Billing and

analysis [tampering etc.]

110

Q 8. How is the data consolidated at the MBC software?

SAP PI, SAP ISU, SAP BW and home grown framework CFW is used. Q 9. What are the major modules implemented under this solution and what features does it

have?

SAP Billing & Invoicing, Device management, FICA, Customer services, UCES

f. Network Diagram representation

f. System topological

information

g. Remote monitoring g. Report generation and Printing

h. Alarm generation h. Real Time monitoring

i. Editing feature i. Load Shedding

j. Customizing j. Any other feature

Q 10.

What is the software platform used

for MBC?

a. Microsoft b. Oracle c.

SAP

All the meter API’s provided by vendors are used in the home grown application called

CFW which is in

Microsoft platform. The billing engine, analysis and reporting is in SAP

Q 11. Have you ever used any MBC solution before the present one?

a. Yes b. No

Q 12. If Yes, What was that, and reason to change from that?

The earlier solution was on home grown billing system called DEBS. But we have

migrated to SAP ISU for better integration & scalability needs.

Q 13. How has the new solution benefitted the DISCOM and Consumers?

New SAP based solution has empowered consumers with better real time online facility to check their customer account details via website

It has helped the DISCOM to introduce facilities like TOD [Time of day]

billing, fuel surcharge, etc. Single integrated solution helps in easy maintenance , scalability and better

management Easy Integration with OMS & GIS

Q 14. What are the additional features and envisage in the solution?

UCES [Utility consumer e-services] is an additional module of SAP that has been

implemented for providing all facilities to consumer to request for new connection,

attribute change [name/address etc.] , load change and much more other than restricting

them to bill payment related activities.

111

Q 15. What are the Major modules implemented under this solution?

e. Master Data and Basic Functions f. Customer Services g. Work Management h. Device Management i. Billing & Invoicing j. Energy Data Management (partially) k. Contract Accounts l. CRM – Customer Relationship Management m. BW – Business Warehouse. n. Any Other

i. UCES for customer e-Services Q 16. What type of further improvement would you like to see in this field?

Proper Implementation of Business analytics via SAP BO [Business Objects]

Work Clearance Management

Energy Data Management.

PART-B (BILLING)

Q 17. What is the procedure of billing?

a. Manual b. Automated Q 18. How can the Consumers access their bills?

a. Door delivery

b. Online

c. Mail / Post

d. Any other

i. Spot billing and mobile collection facility

ii. SMS

iii. ATPM M/C‘s, Touch Screen Kiosks Q 19. What is the consumer base catered under this solution?

o. LT/HT & Key Consumers

p. SLCC Consumers

q. Government Consumers Q 20. What type of further improvement would you like to see in Billing Solution?

Mobile application, AMI / Smart Grid

112

PART-C (COLLECTION)

Q 5. How does a consumer can pay their bills?

j. Cash Payment Counters

k. Cheque Drop Box

l. Online Payment – Credit/Debit/Net-Banking

m. If Card Payment – Types of Cards Accepted – Master/Visa/Maestro/American

Express/Any Other

n. Direct debit from bank accounts

o. Mobile Collection Centers

p. Kiosk – ATPM M/C,s

q. JEEVAN Counters Q 6. How it is integrated with other Modules?

Built in integration between all modules of SAP with

necessary customization SAP PI is used to integrate with

external systems. Q 7.How is the collection efficiency improved since the implementation of this system (in

%)?

The collection efficiency has been improved by _20_ % since the implementation of SAP

ISU since Apr 2011 Q 8. What type of further improvement would you like to see in this field?

Payment through smart phones, ATM counters of banks are in progress

113

ANNEXURE2

Area of Supply

13 13

Tata Power – DDL was previously NDPL (North Delhi Power Limited)

114

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