Research_Smart Grid_Mrugesh_Pawar

8/7/2019 Research_Smart Grid_Mrugesh_Pawar

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Development of

Business ModelForSmart Grid Technology

Implementation in

DISCOMsto improve SBU / Sub-Division efficiency

Presented by

Mrugesh Pawar


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Introduction

Literature Review

Data Presentation

Research Methodology

Concepts of Smart Grid

TechnologyThe Literature Review

Data Analysis & FindingsConceptual Frame Work from the Literature Review

Development of Proposed Business Model forSmart Grid Technology Implementation

Conclusion

Summary of Findings Limitations of Study Future Scope of Research

Research Study Structure Design


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InstalledCapacity(in

MW)

PeakLoa

d(MW)

ElectricalEnergyRequir e

ment(GW

h)

Generation 4,46,771

Transmission 1,40,000

Distribution 2,87,000

HRD 462

R&D 1,214

DSM 653

Total Power Sector 8,76,100

NCES and Captive 1,15,500

Merchant Plants 40,000

Total Funds Requirement 10,31,600

Years(Rupees in Crores)Fund Requirement 11th Plan


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Concepts of Smart Grid Technology :

SMART GRID: It is a making Grid intelligent, self-healing, self-

talking, communicating & self-decision making system which

will help attaining enhanced situation awareness and

responsiveness, enabling operational excellence for the utility,

and improved experience for the consumer through systemoperations, automation and controlling the consumer premise

for load control ......... DoE

Definition of Smart Grid

Smart Grid

Intelligent GridInter OperatingElectronicsLeaching toImprovedGridEnterprises


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Smart Grid Technology implementation in Indian

Context-in totality is going to provide a situation of,

End of Load SheddingPeak Load Shifting through a combination of direct control and

differential pricing (demand response / dynamic DSM)

Reliable Power

Robust systems with self-healing capabilities; first step in improvedmonitoring

Cheaper PowerDramatic improvement in AT&C Losses? Knowing where every kWh is

going in real-timeShifting the Peak away from Costly Power

Better utilization of assets

More sustainable PowerIntegration of green and renewable resources at a massive scale?

Enough to increase energy independence


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Operational EfficiencyIncrease operational productivityReduce capital and operatingcostsImprove physical/cyber security

CustomerSatisfaction

Improve reliabilitymetricsConsumer empowered tocontrol energy usageTighter communicationswith UtilityAdditional servicesEnvironmental Impact

Reduce, avoid and/or sequester CO2emissionsMeet or exceed regulatoryrequirementsIncrease environmental options forconsumer

Energy EfficiencyOptimize energy usageManage growing energydemandExtend asset utilization

Source: IBM, EPRI & DoE

Smart Green Grid its Integrated benefits through

Integrated AMI-NMS-OMS-iDMS System with SCADA-GIS & CIS


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Feed - back

Supplier Customer

Customer

Supplier

The knowledgeChannel

Customer is the only Profit, rest are overheads

Every Organisation earns profit when and only when a customer allows it to earn

Feed-back


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For any Project to succeed Fourindicating factors for consideration:

(1) Techno-Economical Feasibility,

(2) Cultural Appropriateness,(3) Socially Equitability, and

(4) Ecological Sustainability

Customer is the only Profit, rest are overheads

Every Organisation earns profit when and only when a customer allows it to earn

By way of improving the SBUs i.e. Sub-Division efficiency at DISCOMs.

At present SBUs Revenue centers only Profit Centers Investment Centers

Thru Smart Grid TechnologySmart Grid Technology using ICT

Smart Grid Project Investments in DISCOMs

SBU resources thruappropriate Business Model

S G f S


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Smart Grid Infrastructure - Power Sector Projects

Risks

With the large capital outlay and long gestation period, the risklevels in power projects are quite high

Various risks involved are

Project implementation risks Completion risks

Operational risks

Commercial risks

Financial risks Political risks

Viability of the projects and credit worthiness of the borrowersare to be appraised in detail by the financial institutions


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Creating a brand image

Providing products and service at best

Having ways of communicating

Managing supply chain

Making Organization sustainably profitably growing

Applying state-of-the-art technology

Business is a system that occupies a niche in an ecosystem by;Business is a system that occupies a niche in an ecosystem by;

. Creates what customers experience, those experiences shape the game of

business.

A business model describes how a company is organized and operates to

deliver those experiences.


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Research ScopeTo derive appropriate Business Model for Smart grid

Technology implementation in DISCOMs

Research Problem To identify Drivers for the Project To find out effectiveness of Smart Grid Technology in DISCOM To Derive Best Road Map for implementation To identify Challenges for Project Implementation

To identify Cost Benefit Analysis & EVA & Socio-Economic Evaluation ofProject

To identify various effective major & minor stakeholders & their participation To identify prospective Investors and their wishes To identify various factors and clusters for Project implementation To identify Business Strategy suitable for the Project Implementation

To derive Alternative Business Models Selecting appropriate Business Model best suitable for this Project

Research ObjectiveMajor: To derive appropriate Business Model most suitable for Smart grid

Technology implementation in DISCOMs

Minor: To explore & derive best suitable strategy for SLAs and BLAs (outsourcingstructure) for the Project a Contractual Framework


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To generate set of Hypotheses for consideration of variousFactors & Clusters

Phase-I


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Phase-II

To generate set of Hypotheses for consideration of variousFactors & Clusters


Framing


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Defining SampleSize

Obtaining inputsfrom Samples

Check Validity, Reliability, andObjectivity then derive

Predictability

Conduct complete empiricalStudy and Analysis

DecidingSampling Unit

DesigningSampling Frame

DecidingSampling

Population

gSampling PlanSampling Technique:

Strategic


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Business Model(with

Contractual

Framework) -Strategy

Business Model(with

ContractualFramework)

Strategy

Design Variables

Competitive

Positionin

gVariables

StrategicBusiness

Unit / Sub-Division

Efficiency &PerformanceImprovement

(using

Smart GridTechnology

andappropriate

BusinessModel (with

properContractualFramework)

PerformanceVariables

ClustersVariables

Basic Conceptual Framework

PESTLEAnalysis

Business Model Strategy based on CoT: Circle of Trust


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Business Model Strategy based on CoT: Circle of Trust

Performance Variables

Clusters

performance-power to be checked for each

possible alternative model for each

performance variables & Clusters


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Relationship Direct Effects Model Coalignment Model

Business Orientations

Customer Orientation .009/.095 .820/.116

Competitor Orientation .009/.095 .556/.100Employee Orientation -.049/.080 .206/.061

Shareholder Orientation .231/.109 1.106/.144

Management Assets

Customer Assets 2.132/1.12 .302/.103

Internal Assets -2.04/1.15 .688/.100

Channel Assets 2.101/1.160 .767/.0108

Allience Assets .043/.218 .680/.099

Management Capabilities

In-out capability .683/.197 .911/.130

Out-in Capability -.089/.105 .723/.119

Networking capability -.152/.067 .846/.147

Spanning Capability .043/.218 .830/.166

Coalignment FinancialPerformance

---------------- .831/.136

2=4158; df=1005;

GFI=.804, AGFI=.78,

NFI=.713, TLI=.747,CFI=.765, RMSEA=.066

2=3090; df=1015;

GFI=.86, AGFI=.84,

NFI=.83, TLI=.88CFI=.90, RMSEA=.053


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Business Outsourcing Strategy


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All non-core business outsourcedNeutralized Bargaining Power of Suppliers

Ericsson was given the mandate to provide, manage and maintain the

equipment as well as provide quality assurance in Airtels Mobile Operating

Circles

IBM was given mandate to handle the back office requirements of Airtels

presence in India

Bharti Infrarel & Indus Towers ware give mandate to provide physical network

infrastructures and maintain service levels

IBM Daksh, Mphasis, Hinduja TMT, Aegis BPO, and Nortel were given mandate

to provide Customer Care support and solutions

Bharti-Airtels Value Prepositions


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Bharti-Airtel s Value Prepositions


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Summary of Hypotheses


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Summary of Hypotheses

Factors NULLHypothesis: H0

AlternativeHypothesis: H1

Business Model: Investment Opportunity (RoCE) Power No SignificantDifference betn Mean

Values

Yes, there isSignificant Difference

betn Mean Values

Business Model: Revenue Sharing v/s Sharing Relationship,Roles & Responsibilities, Rights, and Obligations Power

-- do -- -- do --

Business Model: Manufacturing / OEMs & IPR Legal Power -- do -- -- do --

Business Model: Technical Power -- do -- -- do --

Business Model: Finance Power -- do -- -- do --

Business Model: R&D and Technology up-gradation Power -- do -- -- do --

Business Model: Governance, Version Control and Change

Management Power

-- do -- -- do --

Business Model: Enforcement, Indemnification & RemediesPower

-- do -- -- do --

Business Model: Liability, Risk Management & InsurancePower

-- do -- -- do --

Business Model: Entrance & Exit of Members Power -- do -- -- do --

On analysis of Phase-I & II, a set of Hypotheses derived for testing


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Factor Analysis Impact of All Factors on Models


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y p


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Hypotheses Testing Results


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Hypotheses Testing Results


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Basic Conceptual Framework Adopted


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Need Design Engineering BidValue

EngineeringBuild

OwnerArchi-

tectConsulting

EngineersArchi-

tect

Contra-

ctor

Archi-tect

Contr-actor

Owner

Consulting

Engineers

ProfitEconomy

PlanetEconomy

People

Equity

SmartGrid

GreenTechnology

Time

Human

HSWEcology

Cost Quality

PPP-SPV

With SAAS

Correlation Matrix


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Regression Analysis


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Business Model = 0.143 + 0.304A1 + 0.284B1 +

0.248C1 + 0.347D1 + 0.232E1 + 0.173F1 + 0.352G1

BMt = + a1A1t + b1B1t + c1C1t + d1D1t+ e1E1t + f1F1t + g1G1t +

BMt = 0.14286+0.142A1t + 0.142B1t + 0.142C1t +

0.142D1t

+ 0.142E1t

+ 0.142F1t

+ 0.142G1t

+ 0.00714


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Product innovation Value proposition, target and aptitudes

Customer Relationship Feel, serve and protect customers interest

Infrastructure & logistics Logistics control, process and alliances

Finance & Revenue generation Investment opportunities (RoCE) v/s smoothened assured cash

in-flow for the Project

Business Model Components:

The difference between success and failure: some companies fails,which dont change their business model v/s most of the innovative

companies succeed which change their business model

A Parable of Business Model Warfare

Technology


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TechnologyInnovation

Business Development &

Revenue EnhancementUsing ICT & e-commerce

Allows

Levier to change

Business ModelICT Strategy

Infrastructure

Inter-operability

Open Standards&

User friendliness

IntegrationImpact

Power Industry

Impact

CommunityIntermediary

Allows

.. improveBusinessValue

PromotionCustomer Service

.. reduce CostDiffusion timeLearning

.. create NewProduct/service

New ChannelsNew Business

ProductInnovation

Finance &Revenue

Infrastructure& Logistics

CustomerRelationship

Business Strategy

Who?


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ProductInnovation

Finance &Revenue

Infrastructure &Logistics

CustomerRelationship

How?To organize the infrastructure?Its resources?Knowledge?Structure of resulting costs?Manage the value chain & processes?Build alliance to achieve performance?

To manage relationship withCustomers?

Satisfy them & generate revenues to beon the winning side?

What? Is the scope ofProducts & Services

improvement?Its value (benefits) for the consumer?Capabilities to deliver them in aninnovative way?

How much? What is the revenue model?The profit model?Its sustainable growth?

Its design to last life cycle?


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Business

Model Innovation

Industry Model

Innovation (IMI)

Enterprise Model

Innovation (EMI)

Revenue Model

Innovation (RMI)


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ProfitEconomy

PlanetEconomy

People Equity

SmartGrid

GreenTechnol

ogy

Owner

/

Devel-

oper

CM /Contrac-

tor

Users

Arch-

itect

Consulting

Engineers

Finan-

ciers

Comm-

unity

Supp-

liers


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Listen to theCustomer

Establish theconfiguration

Planning ofproduction

Production (internal)

Outsourcing(external)

Smart Grid multi-functioning

One-to-many, one-to-oneMass-customization

CRM

SCM

ERP

Distribution

Custom Product/Servic


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Customer

Personalization

Distribution

Trust

CRM

ChannelsDis-

intermediation

Value forProduct/Servic

eInfrastructure

ValuePropositio

nOnline

sales &service

E-markets

Info-mediation

Capabilities

Resource for

Target Resources

Alliances/netwo

rks

Activities/processes

Value

chainValueshopValue

network

Fee

l

Serve

Revenue

Value added Costs

Price Profit

Contract Governance


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Contract Governance

Dimensions

Plan

Mana

gethe

Relat

ionship

Admi

nister

theCo

ntract

Service

Deliv

ery

Strateg

ic

Mana

geme

nt

Servi

ce

Improv

ement

Tech

nolog

y

&Se

rvice

s

Time Horizon

Core Processes

SupportProc

esses

Monitor

&

Control


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Lender

Sponsor /

Investors

SupplierPurchaser /

User

Credit Risk

Financial RiskCompletion Risk

Revenue /

Purchase Risk

Operation Risk

Operating

Agency

PPP-SPV JVC

Equity /

Investors

Investment Risk

Raw Mtrls.

ConstructionC

ontract

Supply Contract

EPC

Proje

ctOp

eration

Operation

Con

tract

Service / User Contract

Out put - Service

Sponsoring

Authority

Concessionary /

VGF Risk

Debt RepaymentLoan Funds

Cash DeficitAgreements & Other

Credit Support

Returns to InvestorEquity FundsGranting

Authority

Regulatory

Risk

Project Approval

Project Appraisal

Land Acquisition

ProjectC

onstruction

Technical

Advisory

ITC

Legal

Advisory

LC

AERA

Regulatory

Committee

Financial

Consultant

FC

ITIA, SIA

Implementation Risk


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2010

20202015

Deploy base technologies

Smart meters installedOMS/DMS system

Microgrid Pilot

New Customer programs offered by Utilities

Dynamic Pricing EE, Demand Response HAN, Energy Management

Many Smart Grid components to be initially

deployed

AMI ADR

IDMSEnergy Accounting-AuditingAT&C Loss controlPower Theft curbingSelf-healing-grid technologies in full deploymentMicro grid technology deployed and self-

sustaining community concept demonstratedPHEV infrastructure pilots

2010-2011

Automated outage detection, restoration,

and customer notification

Expanded SCADA & line devicesAMI-GPRS, 3G, EDGE, PLC controlsMobile Work Force Management SystemAsset Mgmt. SystemSelf-Healing Grid technologies in place

Traditional utility relationship with

customer is changing due to more mature

new services for customers

Load control with DR

Bundled servicesDER Aggregation (including PHEV)

Major regulatory issues be solved

Data ownership and accessCross jurisdictional conflictsT&D renewable strategy

2011-2015

Customer supply side & storage decisions become

the norm

Significant DER PenetrationAdditional Micro grids where cost effective

Customers as resources

PHEV adoption rises- utility becomes "gas station

of the future

PHEV adoption emerges as a critical component of

DERCharging infrastructure in placePHEV rates in place (charge & discharge)

Advanced grid technologies in place

CBM, Cable DiagnosticsAdvance Energy Storage to support RPS goalsSelf-healing grid is a reality

2016-2020


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Through this it can be concluded that by considering all relevant factors and clusters by way

of introducing PPP-SPV Business Model it will definitely will give better outcome of the

Project and if further if the ESOPand the SaaStechniques included in to that then it will

give the best result outcome with highest level of performance as an appropriate Business

Model for Smart grid technology implementation which ultimately will improve the

efficiency of the SBUs Sub/Division of the various DISCOMs in Indian Power Sector and

it will lead towards making them Investment Centers rather than simply remaining as

Revenue Centers.


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DISCOMs ?

Where doDISCOMs

are?

Where doDISCOMs

Should be?

S/Dn-SBU asRevenueCentre

DISCOMs

S/Dn-SBU asInvestment

Centre


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An Intelligent Smart Grid Utility Network is information architecture and infrastructure

which enables the continuous automated monitoring of a Utilitys Customers, Assets &

Operations and uses this On Demand information to improve Service, Reliability &

Efficiency

Cost

Risks

AT&CLoss

Revenue

CustomerSatisfacti

on

Stakeholders Value

Business Sustainable

Profitable Growthwith Customer

delighters

Most important Point to be considered at Top most Priority


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AT&C Loss Factor in entire Power

Sector Value Chain

Most important Point to be considered at Top most Priority

while Designing the Business Model


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Demand Response Solution


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Load2

Load2

Load2

Load1

Load1

Load1

Load1

Load1

Load1

ALC : AMI Load Controller

ALC

ALC

ALC

Demand Response SolutionOption


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Memory

Data Concentrator

Zigbee

PLCC

6LowPAN

RF

IRIS MDMS

R Y B

..

GSM /

GPRSWi-Fi / Wi-MaxFibreOpticsPSTNData Call

101010

101010Internet

Internet

IRIS MDMS

10101

ACC

Power Usage > 3A

ACC

10101

ALC

101011010110101

10101

10101

Power Usage < 3A

10101

10101

p

ACC : AMI Control Card


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Integrated NMS-OMS System with SCADA-GIS & CIS using ICT & providing a strong Platform forAMI and ADR

Smart Green GridSmart Green Grid ananICT: Integrated InformationICT: Integrated Information


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ICT: Integrated InformationICT: Integrated Information

Communication TechnologyCommunication Technology

Sensing

andMeasureme

nt

Advanced ControlMethods

ImprovedInterfaces

andDecisionSupport

Advanced

Components

ICTICT

ICTICT

ICTICT

Connection Conformation Bus COTP Connection Oriented Transport


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Socio-Economic IRR & Cost Benefit AnalysisSocio-Economic IRR & Cost Benefit Analy

sis


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Socio Economic IRR & Cost Benefit AnalysisSocio Economic IRR & Cost Benefit Analysis

Project Case Study: Surat Division - DGVCL

Socio Economic IRR & Cost Benefit AnalysisSocio Economic IRR & Cost Benefit Analy

sis


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Socio-Economic IRR & Cost Benefit AnalysisSocio-Economic IRR & Cost Benefit Analysis

Socio Economic IRR & Cost Benefit AnalysisSocio-Economic IRR & Cost Benefit Analy

sis


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Socio-Economic IRR & Cost Benefit AnalysisSocio-Economic IRR & Cost Benefit Analysis


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Thank YouThank You

Acknowledgements:Acknowledgements:M/S InfosysM/S InfosysM/S IBMM/S IBM

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Research_Smart Grid_Mrugesh_Pawar