State Utility Perspective on Smart Grid

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State and Utility Perspective of SmartGrid

Mr.Tushar Giri Nath, I.A.S.,

Managing Director

Smart Grid Vision for Indias Power SectorJune 2010

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITEDBANGALORE ELECTRICITY SUPPLY COMPANY LIMITED


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BESCOM : FACTS and PROFILEBESCOM covers an area of 41,092 Sq. Kms. with a population of over 168 lakhs.The company has three operating zones - Bangalore Metropolitan Area Zone,Bangalore Rural Area Zone and Chitradurga Zone.

Bangalore Electricity Supply Company Limited (BESCOM) has taken over theresponsibility from KPTCL for the distribution of electricity in 8 districts and

commenced its operations from 1st June 2002.

Districts, which are serviced by BESCOM:

Bangalore Urban

Bangalore Rural

Kolar

Tumkur

Chitradurga

Davangere

Ramnagaram

Chikballapura



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BESCOM : FACTS and PROFILE

Rs. in Crores

ParticularsFY08 FY09

FY10(Provisional)

Net Annua l Revenue

Requirement5855.33 6804.90 7381.92

Revenue 5806.69 6178.78 6210.18

Gap in Revenue (-)48.84 (-)626.12 (-)1171.74

BESCOMs Annual Revenue Requirement (ARR)

* Peak Base Demand Variation

(BESCOM)

Peak Demand (in MWs) 3300

Base Demand (in MWs) 2900

Average Demand (in MWs) 2550


As Allowed by

KERC in MU

Fixedcharge Rs.

Crs

Variablecharges

Rs. Crs.

Total Powerpurchase

Cost Rs. CrsGrand Tota l 21817.51 845.46 5085.84 5931.3 271.86

SourceAverage

Rate P/ Unit

Approved Power Purcha se Quantum & Cost for FY10 -

BESCOM

* Restricted

Area ( in sq. km) 41092

District 8

Population ( in lakhs) 168

Consumers ( in lakhs) 73.20

HT lines (in ckt km) 68692LT lines (in ckt km) 143544

Number of DT's 138595

Particulars


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Vision of BESCOM and Smart Grids


BESCOM aims to be the best electricity

distribution company in India through a strategy

which focuses on Customer Satisfaction,

Regulatory Compliance, Meeting StakeholdersExpectations through an internal reporting,

monitoring and control system.

Smart Grids is a mean to fulfill BESCOMs

mission and realize its vision..

BESCOM aims to be the best electricity

distribution company in India through a strategy

which focuses on Customer Satisfaction,

Regulatory Compliance, Meeting StakeholdersExpectations through an internal reporting,

monitoring and control system.

Smart Grids is a mean to fulfill BESCOMs

mission and realize its vision..


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Benefits of Smart Grids

Business Model

Finance

Regulatory Approvals

Technology

Consumer Benefits and Acceptance

Capacity Building of Employees

Utility Perspective on Smart Grids



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Benefits of Smart Grids to Utilities

Traits Traditional Grid Smart Grid

Loss ReductionInability to address the problem of very high AT&Closses in India plaguing the discoms

Prevents disruptions, minimizes impact,more of consumer participation thus havinga proactive approach for better energymanagement and energy accounting

Peak ReductionReactive approach. Utilities tend to purchase high costpower during peak hours and pay UI charges as well.

Smart Grid technology enable utilities toreduce purchase of costly power, avoidpaying UI charge and maintain griddiscipline

Integration of

Distributed Generationwith system

Classic grids were designed for one-way flow ofelectricity

Allows individual consumers to generatepower onsite and feed into the grid withoutraising reverse flow reliability and safetyissues Capacity to integrate electricitygenerated through solar wind and motorvehicles.

Reliability of Supply Post breakdown repairSelf Healing. Power quality a priority with avariety of quality/price options according toneeds

Consumer benefitsLess consumer participation due to non- price visibility,rare time-of-day pricing rare, few choices. Consumer isuser.

Consumer can optimize his monthly bill.

Rural Outreach Provision of Electricity in rural areas is still an issue.Micro Grids and efficient use of availablesupply will pave the way for increasing the

outreach of electricity.

Quality of Supply Limited efforts for quality of supplyQuality parameters can be monitored andcontrolled at each node point



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Possible Business Model for State Utilities

S No Business Models Role

1 Public PrivatePartnership (PPP)

a) Technology providers will share technology and processesb) Utility will implement the project

2 Ministry of Power

Financing x %

a)Provide Policy and Programmatic Leadershipb)Technical Support

c)Capacity Building

3 BESCOM/ UtilityFinancing x%

a)Manage the Processb)Establish Technical Group

c)Implement the Project

4 Multilateral/Bi-Lateral Financing

- x %

a) International Best Practices and Capacity Developmentb) Partnership with International Distribution Companiesc) Other societal beneficiaries contribution



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Financial Perspective

Huge Investments Huge Benefits

Technology Risks

Technology has a low life span

Utility does not have money !!

Financial Institutions are hesitant to lend

money to utilities Stakeholders are eager to participate in

Smart Grid Program but ambivalent tomove with State owned Utilities

Participation of societal stakeholders ininvestment is a challenge



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Regulatory Framework

1. Shift from traditionalinvestment approvalprocedure

2. Provide flexibility to utilityfor offering to consumer

different options of retailtariff.

3. Innovative tariff design toflatten the load curve

4. Policies to encourageintegration of Distributedgeneration with system RE and Captive.

5. Involve societalstakeholders such as

environment, healthconscious to bear thepartial cost for the smartgrids

6. Involve communication

authorities for creatinginfrastructure to meet thecommunication needs ofpower sector

Realization of Smart Grid ( Regulatory Perspective)



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Identification of right technology

Limited availability of proven technology for

Indian Environment

Smart Grid Technology has a low life spancompared to traditional ones

Capacity building of consumer to adopt to smartgrid technology,

Increased interaction of utility beyond meter -Home area Network

Safety and privacy of consumer and data

Technology Perspective

SMART GRID

Utilities need to thing about future.. TheyneedSmart Grids

because Business As Usual (BAU) will not be sustainable



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BESCOM : Agent ofChange

Smart Grid PilotImplementation



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Existence of Basic Framework in BESCOM for a Smart Grid Pilot

Logistics and Procedural

Utility Leadership

State Government support for a pilot

Presence of local IT and professional skills Technological and Design

High Loads imply high scope of control and measurability

Limited size and length of feeders

Ring Main Units for supply of robustness above the distribution network

Availability of full SCADA system at a feeder level

Unique at a state level in Karnataka

Limited agricultural loads here (which have their own technology and policy implications) Synergy with our ongoing activities

R-APDRP ( Will provide baseline data, Consumer and asset codification, GIS, Billing etc)

SCADA ( All feeders are monitored in real time across Karnataka

Distribution Automation System (DAS) ( Upgrading of Ring Main Units to provide robustnessof supply)



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BESCOM Plan for Smart Grid

Stakeholder Consultation ( Completed 5 Jan2010)

Sensitization of Key Stakeholders ( Completed)

Ministry of Power has already been approached forfunding the activity

Smart Grid Pilot Design ( The selection of National

and International Consultants is under way)

Release of RFP for selection of technologyproviders ( Jan 2011)

Selection of Technology Partners ( March 2011) Start of Smart Grid Implementation ( 1 April 2011)

Smart Grid

Smart Utili

Smart

Customer



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After Thoughts !!


State Utility Perspective on Smart Grid

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