Power Ministry evaluating Rs 400-cr smart grid project proposals

The Power Ministry is assessing proposals worth Rs 400 crore for smart-grid projects and a final decision is expected within few months.

Aimed at improving efficiency in the power sector, smart-grid initiatives make use of information technology, especially to bring down losses in the transmission and distribution (T&D) segment.

“We have received proposals for projects related to smart grid technologies. Currently, we are evaluating such projects worth about Rs 400 crore,” a Power Ministry official told PTI.

These projects would be carried out jointly by the Ministry and State Governments.

Of the Rs 400 crore, the Ministry is expected to pitch in Rs 200 crore while the rest is likely to come from state governments, the official said.

He said the projects are expected to be finalised early next fiscal.

Each pilot project would take about 12 to 18 months for completion. These initiatives would focus on various areas of the power sector, including integration of renewable energy sources with the grid and lowering of AT&C (Aggregate Technical & Commercial) losses.

Against the backdrop of ambitious capacity addition plans, smart grid technologies would help in improving overall efficiency in the power sector. The country is expected to add over 80,000 MW capacity in the 12th Five-Year Plan (2012-17).

Soaring AT&C losses, estimated at 30 per cent, are a major problem faced by the fast-growing Indian power sector.

An inter-ministerial group is working to promote activities related to smart grid technologies. The India Smart Grid Task Force is chaired by Mr Sam Pitroda, who is the adviser to the Prime Minister on Public Information Infrastructure and Innovation.

The panel has set up five working groups, including for ’Trials/Pilot on new technologies’ and ‘Loss reduction and theft, data gathering and analysis’.

Eight new ‘smart grid' pilot projects to be taken up

Mr Sam Pitroda, the Adviser to the Prime Minister on Public Information Infrastructure and Innovations, and Chairman of the India Smart Grid Task Force, addressing a press conference, in the Capital on Tuesday. – Kamal Narang

A high-level panel working on cutting-edge technological interventions to improve the management of load flows across the country's electricity grid has recommended that eight pilot projects be taken up nationwide. This is to be done over the next 18 months.

The Working Groups formed under the India Smart Grid Task Force (ISGTF), chaired by Mr Sam Pitroda, Adviser to the Prime Minister on Public Information, Infrastructure and Innovations, has recommended that smart grid standards be first established by the Bureau of Indian Standards (BIS).

It has suggested that low cost ‘smart meters' need to be developed to ensure that 100 per cent metering is achieved within distribution companies, an official release said.

The panel has also recommended that metering intervention be introduced in more towns under the Power Ministry's flagship power reforms programme — the RAPDRP (Restructured Accelerated Power Development and Reforms Programme.

Also, critical cyber security assets are to be identified and audits undertaken on regular basis.

The ISGTF, chaired by Mr Pitroda, was set up in May 2010 to develop a roadmap and standards for the development and implementation of ‘smart grid' related technologies in the country.

Smart grids enhance energy security

 India, in the past few decades, has witnessed significant changes in the generation and network technology deployment, and the volume and use of electricity in the country coupled with changes in market and regulatory structures governing its power sector. This transformation has largely been successfully managed, but ageing infrastructure is raising concerns that further changes could affect system stability, reliability and security. Thus, there is a need for continued investment to maintain reliability and quality of system and electricity supply.

In future, as demand grows and its pattern changes (with socio-economic growth) and distributed generation becomes more widespread in the country, ageing distribution and transmission infrastructure would need to be replaced and updated, and new technologies would need to be deployed. This coupled with the growing challenges of environmental depletion, fast depleting conventional sources of energy and more recently the growing challenge of climate change are necessitating the adoption of an integrated approach for both demand and supply side in the power sector.

On the supply side, there is a drive towards sustainable, low-carbon electricity generation using renewable sources and hydrocarbon substitution using biofuels and biogas technologies. On the demand side, consumers are increasingly seeking more information and control over their consumption. The existing distribution system is primarily designed for one-way flow of electricity with limited information to consumers about the patterns of electricity use.

These supply and demand side changes with growing emphasis on distributed clean power require a fundamental change in the design of the grid. The current grid network in the country is able to only accommodate the supply of electricity generated through a growing number of medium to large-scale renewable energy projects, but the choice to procure green power is very limited for all categories of consumers. To avoid stalling progress towards a sustainable and low-carbon future, India can decide to make necessary investment in new grid designs and opt for smart grid technology to improve the power grid and distribution system.

Smart grid technologies provide a range of solutions that can be tailored to the specific needs of each region. India is in a unique position as it is still building its most of its electrical infrastructure and thus will be able to leverage the maximum benefits of smart grids. Smart grids will not just help reduce theft, but also improve the network efficiency, consumer efficiency, and will be able to utilise dispersed energy resources like wind and solar to its optimum capacity. The country has 173,626 MW of installed capacity and is going to add approximately 80,000 MW in next five years representing over $200 billion opportunity in building energy infrastructure. Additionally, the National Solar Mission is going to add another 20,000 MW of solar energy in next 10 years.

Recently the Bureau of Energy Efficiency has initiated work on designing a programme for smart grids. The programme if implemented in the near future will help in modernisation of the transmission and distribution system through the integration of new information technologies that allow for new uses of the electric grid, both in operations and through new customer side applications.

Such a programme will also benefit the utilities through improvements in grid reliability by reducing the frequency and duration of power outages and the number of power quality disturbances, including reducing the probability of regional blackouts. The price of electricity can be reduced through increased interaction of the demand side of the market (consumers) with the supply side (suppliers).

Finally, smart grids will promote the use of green power leading to reduced amount of GHG emissions in the country. Promoting a more even deployment of renewable energy sources, and allowing access to more environmentally-friendly electricity generation will prove to be a win-win situation for managing both socio-economic and environmental challenges of the country.

India launches Smart Grid Forum

The Government of India launched Smart Grid Forum signally its strong intention of making the grid smarter and thus joining the worldwide Smart Grid race. The Smart Grid forum is different than the Smart Grid task force.The Forum is going to be a non-profit voluntary consortium of public and private stakeholders, research institution, and selected utilities with the objective of accelerating Smart Grid development in India.  Whereas the task force is going to be inter-ministerial group primarily focusing to ensure awareness, coordination and integration of the diverse activities related to smart Grid technologies, practices and services for Smart Grid Research and Development, Co-ordinate and integrate other relevant inter-governmental activities, Collaborate on interoperability frame work, review and validate the recommendations from India Smart Grid Forum etc.

According to Government, at this stage, following are the focus points for Smart Grid development in India.

End of Load Shedding

• Peak 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 is improved monitoring

Cheaper power

•   Dramatic improvement in AT&C losses ? knowing where every kWh is going in real-time

Shifting the peak away from costly power

• Better utilization of assets

More sustainable power

• Integration of green and renewable resources at a massive scale ? enough to increase energy independence "

Initially, India Smart Grid Forum will select member through invitation only. Power ministry will be the patron of both Smart Grid Forum and Smart Grid Task force and will select member from state power utilities, private power utilities, power sector PSUs, empanelled System Integrators, SCADA Consultants and Implementing Agencies of R-APDRP, selected educational and research institutes, NGOs, CEA, CERC, CPRI, FICCI and NASSCOM. PFC (Power finance Corporation) and REC (Rural Electrification Corporation Ltd) are the permanent invitees of Smart Grid Forum. The India Smart Grid Forum website is at early stage of development.

"Smart Grid" in Indian Prospective

What is a Smart Grid?

 i)."An automated, widely distributed energy delivery network characterized by a two-way flow of electricity and information, capable of monitoring and responding to changes in everything from power plants to customer preferences to individual appliances." 

ii)."A smart grid is the electricity delivery system (from point of generation to point of consumption) integrated with communications and information technology"

iii)"No single definition - It is an evolving paradigm" 

 What are Smart Grid features?

Smart grid can be better defined by its features

i)Fully automated power delivery network that monitors and controls electricity flows
ii)Two-way flows of electricity and information between the power plant and the appliance, and all points in between
iii)Lowered carbon footprint and reduced emissions, increased access to renewable energy resources (like solar and wind)
iv)Use of digital technology to save energy, reduce cost and increase reliability
v)Improved power quality for needs of 21st century economy
vi)Reduced disruptions, improved efficiency and better asset utilization 

What is Smart Grid vision for India?

End of Load Shedding  

Peak 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 is improved monitoring
Cheaper power   

Dramatic improvement in AT&C losses ? knowing where every kWh is going in real-time
Shifting the peak away from costly power  

Better utilization of assets
More sustainable power  

Integration of green and renewable resources at a massive scale ? enough to increase energy independence

This will not happen overnight?Smart Grids are a process, not a product

Power Grid focussing towards Smart Grid Infrastructure

PowerGrid, a Government of India enterprise, is one of the largest transmission utility in the world. 45% power generated in India is transmitted through PowerGrid's transmission network. PowerGrid has close to 72 000 circuit kms transmission lines. The company is focusing its effort towards Smart Grid. One of the key component of Smart Grid is going to be BPL (Broadband over Power Lines) or Internet through electricity. One will not require separate connection for accessing internet, just plug the computer to a modem which is connected to power plug and you have access to Internet. With power plug available to most of the houses in developing world, the Internet will be available to most of the people on the earth. Imagine growth and sheer possibility for Innovation and the huge Internet market. The Navaratna, PowerGrid has given 100 crore contract to BGR energy for laying 4235 km fiber optics for five northern states viz. UP, Rajasthan, Delhi, Punjab, and Haryana. The plan is to lay Overhead power ground wires (OPGW) along the transmission lines. Unlike the underground wires which are occasionally disrupted, it won't be the case for OPGW lines. PowerGrid is already using the technology for communication between their units, however laying such network across the country is a long process and will take couple of years. Nonetheless, the baby step is the beginning and it is right step towards Smart Grid development.

Facts about PowerGrid

Power Grid owns and operate 20, 000 km telecommunication network

PowerGrid has taken up consulting assignment at Middle East and Africa

PowerGrid has 55,000($ 5.5 billion) crore investment plan during the 11th plan (2007 - 2012).

PowerGrid has been assigned by the Government of India to carry out electrification for 3500 villages.

PowerGrid is planning for FPO in september.

India to set up Smart Grid Task Force

The Government of India has decided to set up Smart Grid task force under the chairmanship of Sam Pitroda. Pitroda serves as an adviser  on Innovation to Prime Minister Manmohan Singh. According to Sushil Kumar Shinde, Minister of Power, the task force will be an inter-ministerial group which will be the focal point for all Smart Grid related activities. The experts associated with the process mentioned that the Smart Grid will also include dynamic pricing mechanism just like it is going to be implemented in advanced countries like USA. However, it is  very early to say that such features will be available as India is not mature market like Europe or USA.  The immediate benefit will be reduction in T&D losses and power theft. The information about energy usage will be available per second per home, hence energy will  be effectively managed for its optimum utilization.

Experts at IPMT indicated Smart Grid will be established by networking the entire power distribution network through IT Infrastructure. While developing Smart Grid policy, the task force also needs to keep in mind about privacy concerns of the users as well as security of the grid.

The project is already being tested under the Accelerated Power Development and Reforms Program (R-APDRP) on the pilot bases. Though R-APDRP may be the early version of Smart Grid, It won't be Smart Grid until all the components of Smart Grid are included. 

"A few well-thought smart grid pilots are envisaged under R-APDRP to validate the technology in Indian conditions and explore the possibility of leapfrogging," Shinde said.  

Indian Power sector losses Rs. 30000 crores($6 billions) a year,Solution Smart Grid

Indian Power companies are loosing Rs. around 30,000 Cr or $6 billion + a year due to Transmission and Distribution losses courtesy outdated network, power theft, and poor billing practices .

The per unit cost of electricity in India is highest in the world.

According to news the per unit cost has increase by 15.5% per unit, which has raised the cost to Rs.4.50 per unit for the year 2009-10, courtesy outdated grid. The mid-term review panel reviewed the performance of 20 major states; The total distribution expenses increased to Rs. 2.03 lakh crore and is likely to go up Rs. 2.25 lakh crore this year. Mid term review criticized the distribution utility for their poor power procurement planning.

Mid term review has suggested for improvement in customer service and management methods, but the real problems is the outdated grid, the government needs to focus efforts on developing Smart Grid infrastructure. Smart Grid will help reduce the transmission losses, it will help monitor the physical grid status in real time. Also the power theft can be completely eliminated using Smart Grid.

The Architecture of future grid- Smart Grid/Smart-Mini Grid/Micro-Grid

Smart Grid

Smart grid is an intelligent future grid that applies digital information technology to optimize electrical power generation, and delivery to the end users. The basic principles of smart grid is that it allows for dynamic communication and balancing of the electricity network, thus lowering the overall cost of energy, minimizing losses and increasing the stability of the grid. It has the ability to quickly and flexibly reconfigure an interconnected network of feeders through distribution automation.

Smart Mini-Grid/Micro-Grid

Smart mini-grid or micro-grid is a subset of smart grid. Smart mini-grid/micro-grid could be defined as the application of digital technology to optimize electrical power generation; its delivery and ultimately its end-uses within the domain of mini-grid.Smart mini-grid/micro-grid is an integrated energy system that consists of (i) variable loads which are connected to the distribution grid, (ii) diverse range of small, local generators based on distributed energy resources, for example, SPV, wind, storage system, and (iii) control and power conditioning systems.

Energy is the key to economic development and sustenance of future India. Energy demand in India is ever increasing and expected to grow at an annual rate of 6% over the next 10 years. Currently, the supply of energy to satisfy this ever increasing demand is a challenge. Spiraling power and energy demand, huge Transmission and Distribution (T&D) losses, etc are affecting the reliability and efficiency of the existing grid network and thus managing the existing grid has become one of the major concerns for the relevant authorities.

With the depleting resources, the need of the day is to meet the ever increasing demand of the energy through innovative means of strengthening the grid infrastructure i.e. through Smart Grid. The major driving force for altering the existing power grid and moving towards smart grid is (i) increasing reliability, efficiency and safety of the power grid (ii) enabling decentralized power generation (solar, wind, biomass etc) so that the consumer can be an energy supplier as well as a user (iii) flexibility to power consumption at the consumer site as well as at the energy supply site. A smart grid includes diverse and distributed energy sources and it brings all elements of the electricity system- generation, delivery and consumption- together to improve overall system operations for the benefits of all.

Smart Grid "A need of hour for Indian Power Sector"

Need of smart Grid in India

India is one of the fastest growing economy in the world cloaking an average annual growth rate of 7%+ for last 6 years. Simultaneously, the current Indian population at 1.1 Billion is growing at the rate of 1.4 % annually, and it is estimated that India will be the largest populated country by 2050 AD. Energy is the most critical resource for human development and growth.At present, India is unable to meet the existing need of energy to her inhabitants. Though electricity is available to 80% of the population, It is irregular and insufficient.The power interruption is a chronic problem with on average 17 power-cuts per month to manufacturing sector alone. The total installed capacity is 1,59,398 MW as of March 2010 data published by CEA. However, it is way shorter than the present need and requires enormous investment to meet the existing and future need of the growing population and economy.

This indicates that India is in dire need of Energy. New power plants are being built and more will require however, it want suffice the growing need. Because Indian transmission and distribution losses are amongst the highest in the world amounting 26% of the production. If non-technical losses like theft are included into total, it is around 50%, hence the total effective distribution is only 79700 MW out of 159398 MW generated capacity.

Thus, India needs smart grid technology more than any other country, which if conservatively can reduce the losses to 20% then it will provide enormous boost to growth. Numerous energy efficiency initiatives have been adopted by the government and Energy distribution companies, however none will be complete without Smart grid technology.

What is Smart Grid?

Smart Grid - An energy grid that uses advance digital technologies, which will increase the energy reliability, save energy and cost, and will allow greater consumer participation. The grid will changed from its present centralized model to decentralized model in which consumer can be energy receiver, supplier, and producer. Smart Grid is an umbrella term, which is used for combination of technologies, approaches, and processes. According to Department of Energy (DOE), USA, the grid will have following characteristics.

DOE Identified characteristics

"Informed, involved, and active consumers - demand response and distributed energy resources."

"Many distributed energy resources with plug-and-play convenience focus on renewable"

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

"Power quality is a priority with a variety of quality/price options - rapid resolution of issues"

"Greatly expanded data acquisition of grid parameters - focus on prevention, minimizing impact to consumers"

"Automatically detects and responds to problems - focus on prevention, minimizing impact to consumer"

"Resilient to attack and natural disasters with rapid restoration capabilities"