The 14th Regulators & Policy Makers Retreat 01-04 August 2013, Goa

Smart Grid Vision and Roadmap for India

DOTDHI

Some of ISGF Members: Govt, Utilities, Industry, Academia, Research etc.

The electric grid is considered the greatest engineering achievement of the 20th century – that made every other invention possible

Yet the present electric grid is the world’s largest analogue machine - limited visibility and control of power flows

Traditional electric grids have limited sources of power injection and millions of points of consumption which is fast changing with numerous points of power injection and millions of points of consumption – a paradigm shift

The emerging Smart Grids, that can monitor and control power flows in real time, will likely be the biggest engineering achievement of the 21st century – can meet the needs of sustainability, economic viability, and security

Developing countries like India can leapfrog traditional infrastructure build-out to smart grids at marginal cost

– Help address access and availability of electricity– Enable integration of renewables and higher efficiency

Smart Grids – raison d'être

Smart Grids – an analogy to the human bodyA smart grid intersects the electrical grid with automation, communication and IT systems that can monitor power flows from points of generation to points of consumption (even down to the appliance level) and control the power flow or curtail the load to match generation in real timeIncreased visibility, predictability, and even control of both generation and demand allow utilities to better manage variability, integrate intermittent renewable generation and also reduce costs of peak power

Physical Network (electrical network)

Communication

Information TechnologySmartGrid

Existing Electrical Grid Muscle

Nerves

Brain

Mega Watts

Mega Hertz

Mega Bytes

Layered Infrastructure Analogy What they carry?

Source: http://en.wikipedia.org/wiki/Smart_grid

Summary of smart grid initiatives worldwideCountry SG Drivers and Roadmap Duration Cost

US SG Drivers are: Emission reduction, Demand response, Economic benefits, Grid security. $ 4.3B for pilots in 2009 resulted in $7 billion in economic output and creation of 47000 jobs. New York State Smart Grid Consortium formulated a 15 year SG Roadmap for the state. Smart Grid Advancement Act introduced in US Congress in July 2013 – the proposed Act mandates compliance by all utilities.$1million investment in smart grids = $2.5 million economic output.

Vary in each

state/utility

New York State Roadmap cost: $7.2B – benefits: 18.9 billion

UK Govt. body, ENSG, formulated a 40 year Roadmap (2010-50). Drivers are: Cost effective transition to low carbon economy, Energy security, Affordability; and Economic competitiveness.

2010 – 2050

₤10B for 2010-2020 for Phase-1

Ireland Comprehensive SG Roadmap, EV Roadmap, and Wind Energy Roadmap prepared by Sustainable Energy Authority of Ireland (SEAI). Drivers : Carbon reduction, Electrification of transportation for reduction in imported fossil fuels , Energy security. Envisages 88% renewable by 2050.

2011 – 2050

NA

France No national level roadmap yet; a white paper by industry forum is under debate currently. Drivers are: Intelligent energy management, MV/LV grid operation management, Network modernization, Power quality improvement, Distributed storage, Prosumers, EV etc.

2010 – 2018

NA

Germany Govt. is actively involved. DKE has formulated a SG standards development road map 2010-2013. Drivers are: Standards development for engineering dominance, Carbon reduction, Energy efficiency, Flexibilization of load, DR, Energy security, Distributed generation, Energy storage, VPP, Electromobility, Avoidance of grid bottlenecks etc.

2010 – 2020

€40B

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Summary of smart grid initiatives worldwideCountry SG Drivers and Roadmap Duration Cost

South Korea Govt. actively involved in SG developments – Smart Grid Promotion Act 2010 was passed in 2011. Drivers are: Innovating and exporting green technology, microgrids that can achieve self sufficiency through small generation at consumer ends, EV proliferation, Energy efficiency and Reduction in consumption, Consumer participation etc.

Phase 1: 2010 – 2012

Phase 2: 2013 – 2020

Phase 3: 2020 – 2030

$24B

Japan Govt. involved in SG standards development. Issued a standards roadmap in 2010. Drivers were: Development of Smart Communities, Emission reduction, Renewable integration, Export of SG equipment and knowhow. Priorities being under revision post Fukushima: public safety, restoration of public trust in the energy system, and customer empowerment and protection are key priorities in the post Fukushima era.

2010 – 2030 NA

China Govt. (State Grid Corporation of China) is leading SG development. Envisions a Strong & Smart Grid covering 8 domains; 26 technical areas identified and 92 standards series under finalization. Equipment standards also under development. Drivers are: Energy efficiency, Export of equipment, Emission reduction, Renewable integration, EV proliferation etc.

2010 – 2020

300 million smart meters by 2015

$7.5B given in 2010 for pilots.

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Smart Grids – challenges for India1. Continued high rate of electricity growth needed to support economic growth and employment

generation • Present capacity of 230 GW is the 4th largest in the world• YET, the per capita consumption is one-fourth of the world average!• 79 Million households yet to be electrified; millions face daily power cuts several hours!!

2. Capacity has ~doubled in 10 years (both in installed capacity and number of consumers)• Expected to grow 8-10% per annum for next several decades - managing a rapidly growing

power system of this size requires smarter systems3. India is pursuing one of world’s largest grid connected renewable energy programs

• Integration of such renewable resources require smarter systems4. India launched the National Electric Mobility Mission with a target of 6 million EVs by 2020

• Successful rollout of EVs with required smarter systems5. Reduction of T&D losses continues to be top priority of both Govt. and utilities

• Smart grid technologies with increased visibility in real time can identify the source of losses

Developed nations with reliable electric grids are investing in smart metering, data communications and advanced IT systems and analytics to further their smart grid journey…

India needs to invest in both strengthening the electrical network as well as adding communications, IT and automation systems to build a strong and smart grid

Customers:

1. Expand access to electricity – “Power for All”

2. Improve reliability of supply to all customers – No power cuts, no more DG sets and inverters!

3. Improve quality of supply – No more voltage stabilizers!

4. User friendly and transparent interface with utilities

5. Ability to save money by reducing peak consumption

6. Increased consumer engagement, also as a producer (“Prosumer”)

Smart Grids – drivers for IndiaUtilities:

1. Reduction of T&D losses in all utilities to 15% or below

2. Peak load management – Multiple options

3. Reduction in power purchase costs

4. Better asset management

5. Increased grid visibility

6. Self healing grid

7. Renewable integration

Government & Regulators:

1. Satisfied customers

2. Financially sound utilities

3. Tariff neutral system upgrade and modernization

4. Reduction in emission intensity

Smart Grid Vision and Roadmap

Smart Grid Vision for IndiaTransform the Indian power sector into a secure, adaptive, sustainable and digitally enabled ecosystem that provides

reliable and quality energy for all with active participation of stakeholders

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India Smart Grid Forum in consultation with India Smart Grid Task Force has formulated a comprehensive smart grid vision and roadmap for India which is aligned to MoP’s overarching objectives of “Access, Availability and Affordability of Power for All”

The proposed Roadmap has gone through several levels of reviews at ISGTF and MoP.A stake holder consultation was held on 21 June 2013 which was attended by government institutions, utilities, regulators, industry, research and academia, trade associations, international development agencies and many think tanks

Policies, programs and projects envisaged during the next three Five Year Plans to achieve the above objectives are summarized in the following slides

10Details of proposed activities, outcomes, and targets

12th Plan (2012 – 2017) 13th Plan (2017 – 2022) 14th Plan (2022 – 2027)

Reduction of transmission losses (>66 kV) to below 3.5% Reduction of AT&C losses in all Distribution Utilities to below 15% Augmentation of Control Centres & Data Centres for all states to cater to deployment of Smart

grids Reduction in Power Cuts; 24 Hrs availability of power at principal cities, 22 hrs for all towns and

Life line supply (8 hrs) to all by 2017 Electrification of all households by 2017 Grid connection of all consumer end generation facilities where feasible Development of indigenous low cost smart meter by 2014 Infrastructure for AMI roll out for all consumers with load >20kW or as per prioritized targets of

Utilities Renewable integration of 30 GW Policies for mandatory roof top PV and Energy efficient building code for all new large public

infrastructures by 2014 Setting up of Renewable Energy Monitoring Centres (REMC) at 5 RLDCs for better forecasting,

scheduling and despatching of renewable generation Development of micro grids in 1,000 villages/industrial parks/commercial hubs EV charging stations in urban areas and along selected highways Improvement in Power Quality GIS substations/ Automation of substations in all metros by 2015 Implementation of Dynamic Tariff Tariff mechanism for roof top solar PV’s – Net metering/Feed in Tariff Introduction of Battery Parks and other Energy Storage Systems on trial basis Energy Efficiency Programs for lighting in Metros & state capitals 1st set of Technical Standards after completion of pilots, including performance standards

development /adoption for Smart Grids including EVs and its charging infrastructure Finalization of frameworks for cyber security assessment, audit and certification of power utilities

by 2013 Strengthening of EHV/Distribution System Strengthening of optical fiber communication system along and for transmission lines and

substations 1200 kV UHV AC testing and simulation studies Research & Development, Training & Capacity Building - 10% Utility technical personnel to be

trained in Smart Grid Technologies Cost-Benefit Analysis of Smart Grid projects with inputs from pilots Customer Outreach & Participation Sustainability Initiatives SG Pilots, full SG roll out in pilot project cities Development of 5 Smart Cities Establishment of Smart Grid Test Bed by 2014 & Smart Grid Knowledge Centre by 2015

Reduction of transmission losses (>66 kV) to below 2.5%

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

Improvement in Power Quality Nationwide AMI roll out for customers

with 3 phase connections Renewable integration of 80 GW Development of micro grids in total 10,000

villages/industrial parks/commercial hubs EV charging stations in all urban areas and

strategic locations on highways GIS substations/Automation of substations

in all state capitals & principal cities by 2022

Large roll outs of Energy Storage Systems. Energy Efficiency Programs for lighting in

all urban areas Standards Development for Smart

Infrastructure (SEZ, Buildings, Roads/Bridges, Parking lots, Malls) and development of 25 smart cities

UHV and EHV Strengthening Research & Developments; Training &

Capacity Building. 25% Utility technical personnel to be trained in Smart Grid Technologies

Export of SG products, solutions and services to overseas

Customer Outreach & Participation SG roll out in all urban areas

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

Stable 24x7 power supply to all categories of consumers all across the country

Choice of electricity supplier (open access) to all consumers

Nationwide AMI roll out for all customers with a load > 2kW

Renewable integration of 130 GW Development of micro grids in 20,000

villages/industrial parks/commercial hubs GIS substations/automation of substations

in all urban areas by 2027 Development of 100 Smart cities Energy Efficiency Programs for all lighting

across nation Export of SG products, solutions and

services to overseas Continuous Research & Development ;

Training & Capacity Building. Active Participation of “Prosumers” SG rollout nationwide Development of business models to create

alternate revenue streams by leveraging the Smart Grid infrastructure to offer other services (security solutions, water metering, traffic solutions etc) to municipalities, state governments and other agencies

Smart Grid Roadmap: distributionObjectives: In order to achieve this vision, stakeholders will undertake (across all sectors):

1. Appropriate policies and programs to provide access for electricity for all• Uninterrupted life line supply (8 hours/day minimum) by 2015• Electrification of 100% households by 2017 • 24x7 quality supply on demand to all citizens by 2027

2. Integrated technology trials through a set of smart grid pilot projects by 2015• Based on outcome of the pilots, full rollout of smart grids in pilot project areas by 2017; in

major urban areas by 2022 and nationwide by 20273. Completion of existing complementary or building block projects such as R-APDRP

• Planning for integration of such systems into future smart grid deployments4. Availability of an indigenous low cost smart meter by 2014

AMI roll out for all customers in a phased manner based on size of connection (and geography and utility business case)• Starting with consumers with load >20 KW by 2017, 3-phase connections by 2022 and all

consumers by 2027 • Development of innovative and sustainable financing/business models for smart meter roll

outs5. Working with other stakeholders, building of National Optical Fibre Network by connecting all

the 2,50,000 Gram Panchayats in the country by Optical Fibre Cable and including the telecom link at the nearest 33/11 kV substation to support smart grid in distribution by 2017 11

Smart Grid Roadmap: distribution (cont.)6. Enabling programs and projects in distribution utilities to reduce AT&C losses

• Below 15% by 2017, below 12% by 2022, and below 10% by 20277. Conversion of existing EHV sub stations in all urban areas and sub transmission and medium

voltage substations in metro cities to advanced (such as) Gas Insulated Substations (GIS) in a phased manner through innovative financing models

8. Development of Microgrids, storage options, virtual power plants (VPP), vehicle to grid (V2G), solar to grid (PV2G), and building to grid (B2G) technologies in order to manage peak demand, optimally use installed capacity and eliminate load shedding and black-outs

9. Push for mandated roof top solar power generation for large establishments with connected load >20kW

10. EV charging facilities should be created in all parking lots, institutional buildings, apartment blocks etc; and quick/fast charging facilities to be built in fuel stations and at strategic locations on highways

11. Microgrids in 1,000 villages/industrial parks/commercial hubs by 2017 and 10,000 villages/industrial parks/commercial hubs by 2022 • Can island from main grids during peak hours

12. Optimally balancing different sources of generation through efficient scheduling and dispatch of distributed energy resources (including captive plants in the near term) with the goal of long term energy sustainability

13. Improvement in power quality and quantum across the board12

Smart Grid Roadmap: transmission1. Development of a reliable, secure and resilient grid supported by a strong

communication infrastructure that enables greater visibility and control of efficient power flow between all sources of production and consumption by 2027

2. Implementation of Wide Area Monitoring System (WAMS, using Phasor Measurement Units, or PMUs) for the entire transmission system• Installation of a larger number of PMUs on the transmission network by 2017 or

sooner, as guided by the results of initial deployments• Indigenization of WAMS technology and PMU development and development of

custom made analytics for synchrophasor data by 20173. Setting up of Renewable Energy Monitoring Centres (REMCs) and Energy Storage

Systems to facilitate grid integration of renewable generation4. Installation of 50,000 km of optical fibre ground wire (OPGW) over transmission lines by

the year 2017 to support implementation of smart grid technologies 5. Enabling programs and projects in transmission utilities to reduce transmission losses to

below 3.5% by 2017 and below 2.5% by 20226. Implement power system enhancements to facilitate evacuation and integration of 30

GW renewable capacity by 2017, 80 GW by 2022, and 130 GW by 2027, or as mutually agreed between MoP and MNRE

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Smart Grid Roadmap: policy, standards and regulations

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1. Formulation of effective customer outreach and communication programs2. Development of state/utility specific strategic roadmap(s) by 2014 for Smart Grid deployments • Required business process reengineering, change management and capacity building programs to

be initiated by 20143. Policies for grid-interconnection of consumer generation facilities (including renewable) where feasible• Policies for roof-top solar, net-metering/feed-in tariff as well as peaking power by 2014

4. Policies supporting improved tariffs such as dynamic tariffs, variable tariffs, etc., including demand response programs• Bulk consumers by 2014; extending to all 3-phase (or otherwise defined) consumers by 2017

5. Policies created by 2014 for implementing energy efficiency in public infrastructure and EV charging facilities starting by 2015 and Demand Response ready appliances by 2017

6. Finalization of frameworks for cyber security assessment, audit and certification of utilities by 20137. Development of business models to create alternate revenue streams by leveraging the Smart Grid

infrastructure to offer other services (security solutions, water metering, traffic solutions etc) to municipalities, state governments and other agencies

8. Build upon the results of smart grid pilot projects and recommend appropriate changes conducive to smart grid development in Acts/Plans/etc. by end of 2015

9. Development of 1st set of Indian Smart Grid Standards by 2014• Active involvement of Indian experts in international SG development bodies

Smart Grid Roadmap: other initiatives

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1. Tariff mechanisms, new energy products, energy options and programs to encourage participation of customers in the energy markets that make them “prosumers” – producers and consumers – by 2017

2. Create an effective information exchange platform that can be shared by all market participants, including prosumers, in real time which will lead to the development of new and enhanced energy markets

3. Investment in research and development, training and capacity building programs for creation of adequate resource pools for developing and implementing smart grid technologies in India • Can also become a global leader and exporter of smart grid know-how, products and

services

Smart Grids – need for a roadmap• A transparent roadmap on future policies and programs will help capacity building by all

stakeholders - utilities and the industry - so that projects can be implemented without time or cost overruns

• Smart Grids span multiple functionalities and options – each utility could be different based on legacy, priorities, business case, etc– There isn’t (and cannot be) a Systems Requirement Specification (SRS) Template like

that of R-APDRP for Smart Grids– Need flexibility and dedicated specialized manpower to handle the diverse, complex,

and evolving needs of technology, standards, policy, regulations, innovation, etc• Smart Grids are more a process than a product – cannot buy a standard package off-the-

shelf

The suggested Roadmap will be an evolving policy document that will give a clear direction to state governments, regulators, utilities and industry

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Smart Grid Roadmap – next stepsPhase I: Strengthen the existing institutional mechanisms for Smart Grid (immediate)• ISGTF presently has a small secretariat with 3 people on deputation from PowerGrid, functioning

from PowerGrid’s Gurgaon offices; their costs are reimbursed from R-APDRP• Urgent need to strengthen ISGTF Secretariat with 8-10 smart grid experts inducted from different

streams • Secretariat may be moved to Central Board of Irrigation and Power (CBIP) in Chanakyapuri which

will facilitate better coordination with MoP and ISGF

Phase II: Begin a Ministry of Power level Smart Grid Mission (within 3 months)• The strengthened ISGTF Secretariat could prepare a blueprint for taking MoP’s Smart Grid Mission

to a National Smart Grid Mission– The blueprint would cover details relating to specific programs and projects in different utilities in each state and

estimate the capital outlays for such programs and projects and its timelines– All stakeholders may be consulted in preparing the same. They would also lead to smart grids standards development

and build technically feasible and economically sustainable business models relevant to the Indian context– Such an initiative at MoP level will accord higher institutional authority and budgetary support for ISGTF as well as

demonstrate MoP’s commitment for a national mission which will help harnessing support from other stakeholders

Phase III: National Smart Grid Mission (early 2014)• Launch an independent national mission with its own resources and funding mechanism that will

bring national level support from other Ministries, Departments, and the States after drawing wider consensus on needs, targets, and delivery mechanisms

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Thank you for your kind attention!

www.indiasmartgrid.org

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