A Joint Initiative by USAID and Ministry of Power to better manage large-scale integration of renewable energy into the Indian power grid through improved planning, innovation pilots, targeted capacity building, innovative financing and partnerships

GreenInG the GrID (GtG) ProGrAM

JUNE 2017

This brochure is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this brochure are the sole responsibility of Deloitte Consulting LLP. and do not necessarily reflect the views of USAID or the United States Government. This brochure was prepared under Contract Number AID-386-TO-17-00001.

Background

Greening the GRID (GTG) Program

GTG-RISE Initiative

USAID’s Greening the Grid (GTG) initiative is a five-year program implemented in partnership with India’s Ministry of Power (MoP) under the Asia eDGe (enhancing Development and Growth through energy) Initiative. the GtG initiative supports Government of India (GoI) in managing the issue of large-scale integration of renewable energy (re) into the Indian power grid.the program combines three components which interact with each other. these include:

Central to GtG, is the design, implementation, and scaling of a series of prioritized innovation pilots that support the integration of re into the grid. As part of the GtG-rISe Initiative, successful deployment and scale-up of these pilot solutions will offer new market opportunities for innovative technologies, solutions and services. the pilots will be supported by other GtG components such as integration studies and analytical support by national renewable energy Laboratory (nreL) and enhancing the capacity of key stakeholders through partnerships with United States energy Association (USeA) and national Association of regulatory Utility Commissioners (nArUC).

1. Power system planning reforms and targeted analysis for large re parks and re integration pilots implemented by U.S. Department of energy (Doe) laboratories

2. renewable Integration and Sustainable energy (rISe) initiative to implement innovation pilots, aimed at testing and evaluating building blocks to improve the integration of re

3. Peer-to Peer exchanges between U.S.-India system operators (System operator Partnership) and regulators (India regulatory partnership)

India plans to deploy 175 GW of renewable energy (re) on its power grid by 2022, aimed at strengthening the country’s energy security and reducing its carbon intensity. Compared to conventional power, re options are more variable, less predictable, and often located further from demand centres. experience with other systems demonstrates that when RE penetration reaches significant levels, the power grid needs the capacity to manage operations to avoid challenges to reliability and affordability of electricity.

GTG-RISE Grid Integration Pilots

In consultation with key GoI stakeholders, GTG-RISE has identified six grid integration pilots. each of these pilots, tests the validity of a critical approach to reduce barriers to integrating re into the power grid at scale. these pilots shall be designed and implemented with technical assistance (tA) and grant support under GtG-rISe. these grid integration pilots are as follows:

1) Battery Energy Storage System (BESS) in Transmission: to be implemented in collaboration with the Central transmission Utility, the facility will test the techno-economic effectiveness of grid connected BeSS in providing balancing energy services, other ancillary services, deferring network upgrades, capacity firming of Variable Renewable Energy (VRE) generators, peak shaving, etc. This pilot will also contribute to interconnection standards for grid connecting BeSS and for estimating the systemic value of storage in the Indian power system, necessary to devise policies and regulations supporting deployment of BeSS.

Stakeholders: Power Grid Corporation of India Limited (PGCIL), Power System Operation Corporation Limited (POSOCO) and Puducherry Electricity Department (PED).

2) Flexible Power Generation: Integration studies under GtG have revealed the criticality of thermal based units in India for providing balancing support through flexing. This pilot shall be undertaken with a central sector power generation utility and a state sector power generation utility to identify and implement strategies for achieving high ramp rates and low technical minimums in order to identify scalable measures for adoption across the coal fleets in the country.

Stakeholders: Gujarat State Energy Corporation Limited (GSECL), National Thermal Power Corporation Limited (NTPC), Central Electricity Regulatory Commission (CERC).

3) Automatic Generation Control (AGC): A pilot on evaluating AGC in providing secondary response in Southern India would provide insights for the planned adoption of AGC for ancillary market operation. the pilot shall cover conventional and renewable power plants and will identify both technical requirements as well as compensation mechanisms for the generation units which participate in AGC secondary reserve market.

Stakeholders: Karnataka Power Corporation Limited (KPCL), Karnataka State Load Despatch Center (SLDC), Southern Regional Load Despatch Centre (SRLDC), Wind and Solar Developers

4) Regional platform for reserves sharing: this pilot shall test and implement a platform and mechanisms for day-ahead and intra-day sharing of reserves between utilities in a region as a test case for adoption of regulations enabling operation of larger balancing areas to enable more effective re integration. the outcome of the pilot shall provide the framework guidelines for regional coordination and adoption of commercial mechanisms for sharing of reserves.

Stakeholders: State level utilities and National and Regional Load Despatch Centers, CERC and FOR,

5) Battery Energy Storage System (BESS) in Distribution: the pilot focuses on supporting a private distribution company (BrPL), in designing, justifying

Development of an Evidence Based Enabling Environment for India’s Grid Integration Journey

Battery Energy Storage System (BESS) in Transmission

DynamicCompensationfor LargeSolar ParkIntegration

Flexible PowerGeneration

AutomaticGenerationControl (AGC)

Real-timemonitoring ofrooftop solar PV and net-load forecasting for DISCOMs

Regionalplatformfor reservessharing

Battery Energy Storage System (BESS) in Distribution

6

7

2

3

2 5

2

1

1 Puducherry

Gujarat, Haryana, Telangana2

Karnataka3

6 Rajasthan

Bengaluru7

PAN India*4

New Delhi5

*PAN India covered under the pilot for “Regional Platform for Reserves Sharing”

Key Activities Under GTG-RISE Key Stakeholders

• Pilot Design and Implementation • Support for Scale-up• regulatory Support• Capacity Building and training• Institutional Strengthening• outreach and Awareness• Monitoring and evaluation• Knowledge Creation

• Power System operation Corporation • Power Grid Corporation of India Limited• Central electricity Authority • Central electricity regulatory

Commission• Forum of regulators• State transmission Utilities • Distribution Companies

Why should Financiers and Private Participants partner with GTG-RISE?

Opportunity to leverage funds

Test beds to try business models, address financial risks etc. before scale up

Gain early insights on the policy and regulatory roadmap for scale up

Better placed to establish partnership with leading private sector solution provider(s)

New market opportunities in areas such as grid-scale batteries, ancillary services, flexible energy services, retrofits for flexibility of coal power plants, etc.

Develop qualifications to participate and shape preferences in scale up

Cost effective pilots as GTG-RISE takes care of TA, detailed feasibility, pilot plans, implementation, etc.

Connect with us:

GreeningthegridIndia/

GTG_India

Greening the Grid

www.gtg-india.com

Monali Zeya HazraSenior Clean Energy SpecialistUSAID/IndiaEmail: mhazra@usaid.gov

Shubhranshu PatnaikChief of PartyUSAID GTG-RISE InitiativeEmail: spatnaik@gtg-india.com

Implementation Team

Deloitte Consulting LLP leads the implementation of the GtG-rISe Initiative. Deloitte is supported by a consortium of Indian and U.S. companies along with senior international grid integration advisors to implement the various components of the Initiative.

and implementing a distribution network level deployment of BeSS. BrPL is planning to deploy a 10 MW BeSS for managing the distribution network congestion and to reduce peak power purchase requirements along with other incidental benefits to the distribution system. Under the program, nreL is providing technical support to BrPL on the assessment of BeSS effectiveness at distribution level considering feeder load, line congestions, Distribution transformer (Dt) capacity/overloading, right of Way (roW) and network losses. GtG-rISe will further support BrPL in obtaining regulatory approval and in implementing the BeSS pilot through a competitive process.

Stakeholders: BSES Rajdhani Power Limited (BRPL) and Delhi Electricity Regulatory Commission (DERC).

6) Dynamic Compensation for Large Solar Park Integration: to be undertaken in partnership with a state transmission utility, the pilot shall involve detailed system studies to evaluate integration of a large solar park and to identify specific dynamic compensation measures including design enhancements to inverters and deployment

of grid level compensation such as StAtCoMs. the outcome of the pilot shall be to provide insights on development of guidelines and enhancements to standards for dynamic compensation and inverter specifications with reference to reactive power control and power quality aspects.

Stakeholders: Rajasthan Vidyut Prasaran Nigam Limited (RVPNL), Rajasthan State Load Dispatch Centre (SLDC), Rajasthan Renewable Energy Corporation Limited (RRECL), Solar Developers, and PGCIL.

7) Real-time monitoring of rooftop solar Photo Voltaic (PV) and net-load forecasting for distribution companies (DISCOMs): the pilot shall test efficacy of smart meters for real-time monitoring of distributed rooftop solar PV generation and assist a DISCoM in design and implementation of improved tools for net-load forecasting. the outcome of this pilot shall provide guidelines on metering, communication and forecasting of roof top solar PV and net-load forecasting.

Stakeholders: A DISCOM (under discussions), Central Electricity Authority (CEA) and Forum of Regulators (FOR)