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NATIONAL CONFERENCE
ON 10 YEARS OF THE ELECTRICITY ACT, 2003: A CRITICAL REVIEW
Vikas GabaNew Delhi, June 11, 2003
Role of Smart Grids in the Indian PowerSector: Current Developments, Challenges and
Way Forward
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Indias energy realities and emerging needs Smart Grids Concept and Application Areas Global Developments Developments in India Challenges to Accelerated Deployment Way Forward
Structure
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Indias Energy Realities andEmerging Need
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What is Smart Grid?
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System (G, T, D) with an advanced two-way communicationssystem
Enables real-time monitoring and control
Provide greater visibility and transparency
Consequently, enables cost reduction and efficiencyimprovement
Understanding Smart Grid
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Several Potential Application areas exist
Electricity
DistributionElectricityMarketsRenewable
EnergyEnergy StorageTransportIndustrial Energy
EfficiencyBuilding EnergyEfficiency
7Source: http://www.renesas.eu/ecology/eco_society/smart_grid/
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Glob ally, a num ber of in i t iat ivesh ave al read y s tar ted, m os t o f i t
t h ro u g h s t ro n g s u p p o r t fro m th eGovernment
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Global Market Trends
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Country National Smart Grid Initiatives
UnitedKingdom
OFGEM has set up a Low Carbon Networks fund that will allow up to GPB 500msupport to distribution network operator projects that test new technology,operating and commercial arrangements.
France The electricity distribution operator EDF is deploying 300000 smart meters in apilot project based on an advanced communication protocol named Linky . If thepilot is deemed a success, ERDF will replace all of its 35 million meters with Linkysmart meters from 2012 to 2016.
Brazil Several utilities are managing smart grid pilots , including Ampla, a powerdistributor in Rio de Janeiro State owned by the Spanish utility Endesa, which hasbeen deploying smart meters and secure networks to reduce losses from illegalconnections. AES Eletropaulo, a distributor in So Paulo State, has developed a smartgrid business plan using the existing fibre-optic backbone.
The utility CEMIG has started a smart grid project based on system architecturedeveloped by the IntelliGrid Consortium, an initiative of the California-based ElectricPower Research Institute.
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India guided by the developments
at the global level, is slowly gearingup
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Institutional Set-up for Smart Grids in thecountry
Bureau ofIndian
Standards
(BIS)
India Smart GridForum (ISGF)
India SmartGrid Task Force
(ISGTF)
CPRI,BEE, CERC
StateUtilities
Industry/ResearchInstitutes
Government of India / Ministry of Power
StateGovernment
CERC/SERCs
Indicates direct interaction among the entitiesIndirect interaction among the entities
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14 pilots supported by Govt. of India as Proof ofConcept
Power DemandShortage
Demand Side Management Demand Response
Peak Load Management Crew Management
Clean Energy Renewable Energy
IntegrationDemand Response
OperationalEfficiency
Improvement
Theft Management &Tamper Detection Asset Monitoring
Meter DataManagement
System
Substation Automation AMI
ConsumerService
StandardsPower Quality
Work ForceManagement
OutageManagement
Automatic Billing Consumer portal
National Priorities Smart Grid Interventions proposed by the Utilities
Lot of additional work is happening on issues such as Demandresponse, Micro-Grids, etc beyond the 14 pilots
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Challenges do exist
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Key ChallengesGovernment Support funding and to ensure coordinated development
National Road Map adopted but implementation wherewithal missing
Access of financial resources particularly due to poor financial health of thepower utilities
Lack of Policy and Regulation related to Smart Grid applications
No proven commercial viability of large scale smart grid implementation Cost and
benefit assessment (Most of the initiatives are pilots)
Development of Smart Grid Standards including pilot models that can beadopted by discoms based on their level of maturity to handle suchapplications
Ability of users to absorb implementation of advanced technology
Lack of awareness requiring knowledge creation, training and capacitybuilding of both the utility and consumers
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Electricity Act 2003 and the underlying policies does provide forintroducing all of the above, however implementation mechanism have
to be ensured
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Thank You
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Development Potential andIssues across application areas
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Development potential & issues across variousapplication areas
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Application Area
(Current Status)
Business Issues Potential/Importance of
Smart GridsDistribution
Inefficient Huge Theft Poor customer service &
reliability
Lack of measurements andcontrols
Antiquated technologies Poor business orientation
High (can bring rapidtechnological upgradation)
Supports loss reduction anddemand response
Markets
>10% of overall electricity sale Affected efficiency gains Send price signals to
consumption (distribution)
Poor networks. Problems inopen access
Inadequate BusinessProcesses and Controls
Poor cost signaling
High (Open access andcontrols can be veryeffectively supported)
Industrial Energy Efficiency
Improving rapidly Signalled by environmental
market
Lack of awareness High (SG enables better loadmanagement through DSMand DR)
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Application Area
(Current Status)
Business Issues Potential/Importance of
Smart GridsEnvironmental Markets(REC, PAT)
Nascent, developing fast Closely linked to energy
efficiency & renewables
Nascent, does not provideconfidence to investments
Baseline definition issues in(PAT) and monitoring
Trading system needs
refinement
High (SG can provide astrong information andcontrols base and also enableresponse to price signals)
Renewable Energy
Fast developing Fills Indias Energy void
Variability management &storage
Transmission networks andcontrols
Very High (SG can assist ingrid integration, forecasting,balancing and storage)
Energy Storage
Nascent in India Closely linked to RE & EE
Expensive Technological upgradation Space requirements
High (Has applications inenergy storage, enablingprovision for balancing power& islanding during blackouts)
Development potential & issues across variousapplication areas contd
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Application Area
(Current Status)`
Business Issues Potential/Importance of
Smart GridsTransport
Largest energy sub-sector afterelectricity
Pollution a significant issue Only Hybrid Vehicles (fossil fuel +
EV) available Current focus only on mobility andassociated environmental issues
EVs are expensive
Inadequateinfrastructure fordeployment and
proliferation Regulatory Issues
High
SG can integrate with gridand reduce short term powerpurchase; use as balancingresource; peak load
management)
Building Energy Efficiency
Fastest growing energy consumingsector
Widely varying energy efficiencylevels
Lack of awarenessamong builders andconsumers
High initial cost of EEappliance
High.
Smart Grid can enable realtime consumption monitoringand control;, enablingreduction of wastefulconsumption
Development potential & issues across variousapplication areas contd