Smart grids development in india, Team Finland Future Watch Report

Smart Grids – Smarter Power Team Finland Future Watch in India

Report Sept 2013 by Finpro India Team: Rekha Salvi (Project Manager), Dinkar Krishnan,

Sreehari Nambiar, Ashish Koltewar, Shriya Ramachandran,

CONTENT2

SmartGrid-SmarterPower – Team Finland / Finpro India

INTRODUCTION3

• India’s average GDP growth during 2009-12: 7.2%• Yet per capita income dismally low at Rs 46,500 last year• 7% world’s GDP: economy fourth-largest in world in PPP terms

• Increasing demand for energy from a low base– energy production just 4% of world production and consumption only 5% of

world’s consumption respectively • But affordability is the key• solutions that sell in India has to be at Indian prices

Indian economy growing tremendously, @ grass root level!

Consumption India World

per-capita electricity (kWh) 704 2752

average energy (TOE) 0.53 1.82

Particulars % of world

Population 17

GDP 7

Net national Income Growth 14.5

Personal Disposable Income 14.7

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Projected Requirement of Electricity at 8% GDP Growth

Peak Demand Installed Capacity Required Energy Requirement


POWER SCENARIO

R-APDRP

–Restructured Accelerated Power Development & Reforms Programme

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Possible Wholesale/Retail competitionOpen access to transmission, Section 63/79(2)/60 **

Contestable Price Discovery

Facilitating open access, Support competitive bidding,

Separating wire business

Newer capacities,Rural concentration

Free Market

•Minimum interference from government/ regulatory authorities•Unbundling of state utilities•Increase in the level of private participation & competition•Market-based pricing•Better management, monitoring & control

Fully Controlled

•Union & State controlled entities•Less or no competition/ private participation•Inefficiencies and under- utilization•Transmission & distribution losses•No price discovery; fixed by SEBs

Market Direction

Increased adoption of newer technology by Govt & private companies

• established in July 2008 • focus on establishment of base line

data, fixation of accountability, reduction of AT&C losses upto 15% level

• Meant to strengthen & up-gradation of Sub Transmission and Distribution network and adoption of Information Technology during XI Plan

• Part-A includes establishment of baseline data & IT applications for energy accounting/auditing & IT based consumer service centres.

• Part-B includes regular distribution strengthening projects & system improvement, augmentation etc.


POWER SCENARIO5


Transmission System Operators6

NR – Northern RegionER – Eastern RegionWR – Western RegionSR – Southern RegionNER – North Eastern Region


India – Supply Demand Gap7


SMART GRID – INDIA PERSPECTIVE

●Evolution●Agencies & Roles●Vision & Mission●Road map●Stakeholder Expectations●Pilot Projects●Drivers & Challenges●Way ahead

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EVOLUTION

A system for :• Curtailing AT&C losses • Driving transparency• Driving

accountability

A system for:•Operational efficiency•Customer service excellence •Automated control

A system that is: • Self-healing• Adaptive• Interactive • Secure from attacks • Storage options• Supports bi-directional flow • Distributed generation

1 to 3 years 3 to 5 years 5 to 15 years

Gradual evolution of Smart Grid in Indian Power Distribution

Centralized Generation

Transmission Network

Inter-Connections

Distribution Network

Distributed Generation

Electric VehiclesSupplier Transactions

Meters & Displays

Micro-Generation

Loads and Appliances

Energy Efficiency

Consumer Behavior

Characteristic Today’s Grid Smart Grid

Enables active participation by consumers

Consumers are uniformed & non-participative with power system

Informed, involved, & active consumers – demand, response & distributed resources

Accommodates all generation and storage options

Dominate by central generation – many obstacles exist for distributed energy resource's interconnection

Many distributed energy resources with plug & play convenience focus on renewables

Enables new products, services and markets

Limited wholesale markets, not well integrated- limited opportunities for consumers

Mature, well-integrated wholesale markets growth of new electricity markets for consumers

Power quality for digital economy

Focuses on outages – slow response to power quality issues

Power quality is priority – variety of quality/price issues, rapid resolutions

Optimizes assets & operates efficiently

Little integration of operational data with asset management – business process silos

Expanded data acquisition of grid parameters- focus on prevention, minimizing impact to customers

Anticipates and responds to system disturbances (self-healing)

Responds to prevent further damage-focus is on protecting assets following faults

Automatically detects & responds to problems – focus on prevention, minimizing impact to consumer

Capacity building & Smart Grid Pilots-Part C of R-APDRP (USD 40 Million)

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DLMS Meters with open protocol equivalent to IEC 62056 is being standardized for all system meters

Mapping the vision for Smart Grid vis-à-vis R-APDRP

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Part B of APDRP – Distribution System upgrade to support capacity addition and automation

MPLS based Broadband communication is proposed for Business application and the same is being considered for SCADA backbone communication. For communication with field equipment WiMax/ GPRS will be considered

Part A of APDRP – SRS covers this aspect

Part A of APDRP – SRS covers this aspect

CON

TRO

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FE

EDBA

CK

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AGENCIES & ROLES11

an inter ministerial group that will serve as government focal point for activities related to SMART GRID

A public - private partnership initiative of the Ministry of Power (MoP), Government of India for accelerated development and deployment of smart grid technologies

• ISGF is headed by Mr. Reji Kumar Pillai, a widely respected industry veteran• ISGF recommendations will be advisory in nature and their objectives are

• Prime objective is to accelerate development of Smart Grid technologies in the Indian Power Sector

• Voluntary public-private consortium of Govt agencies, utilities, technology and service providers, regulators, research & academia and other stake holders

• Govt. of India (MoP) is the Patron, and retains Chairmanship• Registered as a Society under the Indian Societies Act as a not-for profit organization• Enrolled members and conducted elections to choose the management team n Oct 2011• As of 31st March 2012 ISGF has 75 members (11 requests pending)

ISGF will seek the best practices in the world and help develop a roadmap for development of Smart Grid solutions for Indian needs and conditions

• Ten Working Groups (WG) of ISGF– Pilots on New Technologies– Loss Reduction , theft, data gathering & Analysis– Power to Rural and reliability and quality power to

Urban Areas– Distributed Generation & Renewables– Physical Cyber Security, standards and spectrum

Nominees of the Task force:


Smart Grid Vision for India

Transform the Indian power sector into a secure, adaptive, sustainable and digitally enabled ecosystem by 2027 that provides reliable and quality

energy for all with active participation of stakeholders

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National Smart Grid Mission (NSGM)

“Quality Power on Demand for All by 2027”

Source: ISGF

SMART GRID VISION & MISSION


NSGM Road map – Targets12th Plan (2012 – 2017) 13th Plan (2017 – 2022) 14th Plan (2022 – 2027)

1. Access to “Electricity for All”2. Reduction of transmission losses (>66

kV) to below 3%3. Reduction of AT&C losses in all

Distribution Utilities to below 15%4. Reduction in Power Cuts; Life line

supply to all by 2015; grid connection of all consumer end generation facilities where feasible

5. Renewable integration of 30 GW; and EV trials

6. Improvement in Power Quality and Reliability

7. ToU (Time of Use) Tariff8. Energy Efficiency Programs9. Standards Development for Smart

Grids including EVs10.Strengthening of EHV System11.Efficient Power Exchanges12.Research & Development, Training &

Capacity Building13.Customer Outreach & Participation14.Sustainability Initiatives15.SG Pilots, SG roll out in major cities

1. Reduction of transmission losses (>66 kV) to below 2%

2. Reduction of AT&C losses to below 12% in all Utilities

3. Improvement in Power Quality4. End of Power Cuts; Peaking power

plants; Electrification of all households by 2020

5. Nationwide smart meter roll out6. Renewable integration of 70 GW; 5%

EV penetration7. Standards Development for Smart

Infrastructure (SEZ, Buildings, Roads/Bridges, Parking lots, Malls) and Smart Cities

8. UHV and EHV Strengthening9. Research & Developments; Training &

Capacity Building10.Export of SG products, solutions and

services to overseas11.Customer Outreach & Participation12.Sustainability Initiatives & Public

Safety

1. Reduction of AT&C losses to below 10% in all Utilities

2. Financially viable utilities3. Stable 24x7 power supply to all

categories of consumers all across the country

4. Renewable integration of 120 GW; 10% EV penetration

5. Smart Cities and Smarter Infrastructures

6. Export of SG products, solutions and services to overseas

7. Research & Development ; Training & Capacity Building

8. Active Participation of “Prosumers”9. Sustainability Initiatives & Public

Safety

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Source: ISGF

STAKEHOLDER EXPECTATIONS

●Issues of regulation and policy: Electricity is under the state list and not under the Union list. Hence Union govt has difficulty in implementing reforms uniformly.

●Lack of coordination among states (in terms of standards, communication protocol etc.)

●Rules for incentivizing themes such as energy efficiency and conservation SmartGrid-SmarterPower – Team Finland / Finpro India

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Important Takeaways for All Stakeholders across Three Key Timescales

1. Short term: Lay the foundations for success

a. Policy-makers and Regulators – Create the right conditions for innovation and certainty over funding and regulatory treatment while driving alignment on standards b. Utilities and Partners – Develop broad-based consortia, focus on creating a stable technology platform and engage consumers where they are likely to be personally affected

2. Medium term: Reshape the agenda and roll-out proven technologies

a. Policy-makers and Regulators – Review the regulatory framework to align incentives and encourage private-sector investment b. Utilities and Partners – Use initial data to help shape the regulatory agenda; pilot changes to the operating model and processes; share data and use simulation to make the value case for roll-out of “proven” technologies

3. Longer term: Change the model •Policy-makers and Regulators – Reward utility innovation and encourage participation of new entrants that may offer new business models•Utilities and Partners – Position the value case for full-scale roll-out of technologies as the economics improve; innovate around the business model to offer customers greater value; and use behavioural segmentation data to target a greater proportion of customers with differentiated product and service offerings



16Smart Grid Benefits by Stakeholder



COMPARISON 17

US & Developed countries India

Comparison of focus between Smart Grid needs of two economies

• Carbon and green• Bi-directional power• (Plug in) Hybrid vehicles• New services

• Remove the “human element” in operations• The peak is NOT industrial• Smart peak management

• Home automation• Home monitoring• Green Power

• No more load shedding• Even in emergencies can allow smart control• LEAPFROG

• Meter reading• Grid modernization• Robustness• Saving money • Deregulation exposed a lot of costs• Some consumers saw 20-40% increase in

tariffs• Needs Time of Use (ToU) if not Real

• Loses Rs. 1+/kWh on average• Supply << Demand• 20+% shortfall• Growth (“Power for all”)• Theft is a major concern• Large segment of load is unmetered

(agriculture)• May allow new operating models


PILOT PROJECTS18


SMART GRID PILOTS IN INDIA 2013(EXAMPLES)

Few Pilots in brief :

1) WBSEDCL, West Bengal

Location: Siliguri Town in Darjeeling District

Project Summary: The pilot project proposes to take up 4 nos. of 11 KV feeders for implementation of Smart Grid covering 4404 consumers. The area has 42 MU input energy consumption. The utiliy has proposed the functionality of AT&C loss reduction and Peak Load Management using Automated Metering Infrastructure (AMI) for Residential and Industrial Consumers.

2) APDCL, Assam, Guwahati

The pilot project covers 15,000 consumers involving 90MUs of input energy. APDCL is in the process IT Implementation under R-APDRP and SCADA/DMS implementation is also to be taken up shortly. APDCL has proposed the functionality of Peak Load Management using Industrial and Residential AMI, Integration of Distributed Generation (Solar and available back-up DG Set) and Outage Management system. The utility has envisaged that Power Quality Monitoring will be a by-product of the deployment.

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SMART GRID PILOTS IN INDIA 2013(EXAMPLES)

Few Pilots in brief :

1) Pondicherry Electricity Department

Location: Pondicherry Union Territory.

Pilot project on smart metering. 87,000 consumers are being tested out of the total 300,000 consumers. Project started in year 2012. This is in partnership with Power Grid Corporation India Limited.

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EXISTING PLAYERS– Siemens – Smart metering solutions to Utilities, Meter Data Management (eMeter EnergyIP Meter Data

Management Platform and Analytics Foundation and corresponding professional services)

– Accenture– Smart metering solutions to Utilities, Meter Data Management (Accenture Smart Grid Services (ASGS) will provide consulting, systems integration and managed services for smart meter and analytics solutions)

– GE – Energy management – System operations

– ABB – Energy management – System operations

– Alstom – Energy management – System operations

– Ventyx – Energy management, Distribution management systems

– SAP – Financial planning, ERP

– Oracle – Financial planning, ERP

– IBM maximo – Asset Management

– CGL – Intelligent Electronic Devices, Grid Automation (via ZIV takeover)

– Landis+Gyr – Smart metering solutions

– SATEL – (Finnish company) Turn-key radio data communications network

– TPDDL – JV between TATA Power and Delhi Government

– And More…

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DRIVERS, CHALLENGES & MOREIndia’s Priority

oEnhanced Distribution

oDemand Management

oRenewable & DG management

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Smart Grid (SG) – More ReasonsIncreasing demand, capacity enhancement :High Aggregate Technical & Non Technical, Losses (18%- 50%)Ageing assets transformers, switchgears, protection relays feeders etc.,Grid to carry more power Reliability and greater SecurityBilling and collections Profitability of distribution companiesEnergy mix Integration of renewable Capacity enhancement, reduce carbon footprintStates which are active in deploying SG are – Maharashtra, Gujarat, Karnataka, Andhra Pradesh. These states have allocated budgets to implement SG. Private players like Tata Power in Maharashtra have taken lead in implementing SGADB (Asian Development bank) has MoU for a loan of $500 million to Govt of Gujarat state for SG technologies encouraging Public private partnership in this sector.North Delhi Power Ltd, a joint venture between Tata Power and the Government of India has joined hands with GE Smart grid technologies for an advanced outage management system14 pilot smart grid projects funded by the Ministry of Power & the State governmentSmart grid projects driven by Private Utilities like Tata Power, Reliance etc.


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Ecolibrium Energy has implemented India’s first comprehensive smart grid pilot in partnership with the Government of Gujarat, and Torrent Power Limited, India’s leading private power distribution company.

Project Covering 9 high rise buildings in Gandhi Nagar, Gujarat•10/20 kW Solar PV units on each building: Total 130 kW•Appliance level monitoring in one block

Key Functionality

•10/20 kW Solar PV units on each building: Total 130 kW•Appliance level monitoring in one block

Key Impacts:•Successfully installed smart grid infrastructure in Indian conditions using wireless standards•Power harnessed from solar installations has increased by more than 130% due to real time generation monitoring, and thus increased awareness and maintenance•Successfully demonstration of ability to perform automated and manual demand response during peak hours based on pre defined conditions•Building owners are able to monitor their consumption on real-time basis

CASE 1: ECOLIBRIUM ENERGY


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Joint Venture of Tata Power Company and Govt. of NCT of Delhi (51: 49)

CASE 2: TATA POWER DDL

Key Impacts :•Cumulative Savings of approx. USD 1470 Mn to the exchequer•Govt loan of USD 116 Mn prepaid 9 years ahead of schedule•In 2002, Power Theft was about USD 0.89 Mn per day in NDPL area- Now it is less than USD 0.22 Mn•Increase in NDPL paying capacity reduced Transcos dependence on Govt. to NIL

Initial Challenge Current Situation

AT&T Losses at 53% AT&C Loss level 13.5%

Dilapidated Network – on the verge of collapse

N-1 Redundancy achieved – investment of over 2000 Crs in network augmentation

Unreliable Power Situation - transformer failure at 11%, only 48% streetlights functional, power cuts of 8-10 hrs/day

Power Reliability improved manifolds – transformer failure rate 1%, 99% streetlights functional, power cuts negligent despite continuous load growth

No Concept of Consumer Service

One Stop solution for consumers- State of Art Call Center and Consumer Care

Erroneous consumer and asset database

GIS implemented – 100% Assets and consumers mapped

Lack of Performance orientation

Performance Orientation through Change Management & Balanced Scorecard Approach

No Computerization / Automation / Tracking and Monitoring

Integrated CRM introduced, Automation roadmap implemented (SCADA, OMS, DMS, DAimplemented)

Technology Adopted:•Automated Meter Reading (AMR)•Geographical Information System (GIS)•Grid Substation Automation System (GSAS)•Supervisory Control and Data Acquisition System (SCADA)•Distribution Management System (DMS)•Distribution Automation (DA)• Outage Management System (OMS)•Mobile Workforce Management (MWM)•Vehicle Tracking System (VTS)•SAP – Industry Standard Utilities (SAP-ISU)•Smart Grid


PPP opportunitiesPotential Areas

–Franchisee for distribution operations – big circles, residential colonies

–AT&C loss reduction initiatives: benefit sharing contracts under PPP models could get suppliers credit/debt financing

–Substation modernization: most 220kV/132kV/110kV/66kV stations in urban areas can be converted to GIS by unlocking the value of the land they occupy. This could be taken up under PPP models

–Rural electrification: through renewable/distributed generation and microgrids – new PPP models by bundling of multi-utility services (electricity, water, gas, internet, cable TV etc) and other local services such as postal, land/house tax collection etc to make it to critical size that can afford deployment of efficiency tools to make the enterprise sustainable

–Smart meter market size: 100 million+ by 2020; 300 million+ by 2030

–Big opportunities for last mile connectivity solutions

Advantages

–Initial partnerships with Utilities could accelerate capacity and skill building in private entities which could then multiply their numbers

–Selection, procurement and deployment of new technology is always a challenge for government owned entities – PPP models could transcend these barriers

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Source: Interview with & Presentation by Reji Kumar Pillai, President, ISGF


Facilitate and formulate a platform for regular interaction between Indian and Finnish agencies viz., ISGF, CLEEN-SGEM and TEKES

Establish roadmap for future areas of cooperation between agencies, research centres and companies E.g. ISGF CLEEN-SGEM on policy

formulation, technical consulting on areas such as LVDC, etc

Company to company interaction on a regular basis (opportunity-based)

Collaboration with big Indian companies (e.g. Tata Power DDL) and state utilities as immediate opportunities

Opportunity-scouting in 14 pilot projects and own-initiatives of state/private utilities

WAY FORWARD27

Current under R-APDRP

ISGF Road map

GIS asset mapping R-A India wide extension

AMR+MDS/MDM AMI for HV customers

Billing SCADA DMS+OMS and network planning

CRM Fibre Connectivity

Energy Audit Distribution Automation

SCADA DMS W&AM + condition monitoring

Network strengthening

Volt/Var control

Data centre Integration with ERP

Smart ready metering for all customers

Indian Smart Grid Thrust areas


CLEEN SHOK and ISGF Partnering

●Potential collaboration

● Leveraging expertise of CLEEN SHOK and associated partners

●Possible role in various ISGF working committees on consultative basis

Policy makers & Regulators

● Interaction with policy makers and Regulators to align activities

●Sharing of best practices of policy adoption

Utilities & Partners

● Interaction with Utilities and Partners to pilot changes in the existing models and processes,

● support in rolling out proven technologies and develop sound technology platform ensuring mass scale replicability

● innovate around business model based on Indian requirements

ROLE FOR FINLAND28


Specific Opportunities

● Participation in ISGF Webinars – useful to gain updates in the Indian smart grid scenario

● Possibility of undertaking a pilot project, in one of the states in India, for implementing smart grid

– Pilot projects in three states (Rajasthan, Haryana and Assam) have been undertaken by Japanese consortium, which includes Japanese technology companies, financing agencies etc.

– Couple of projects are being pursued by Chinese, Korean and American groups

– ISGF informs that such opportunities are open for Finnish ecosystem players as well

– Finnish companies or consortium could propose to undertake a pilot project in one of the states

– This could be under a complete/partial funded program from the Finnish side

– The size of the pilot project could be small or medium-sized. Various Finnish companies with various capabilities in the Smart Grid arena could come together as a consortium or approach individually

– Once the pilot is successful, the project can be commercially rolled out

ACTION POINTS29

Source: Interview with & Presentation by Reji Kumar Pillai, President, ISGF
