Leveraging various initiatives in the Indian Power Sector to move towards Smart Grid:

1. Leveraging various initiatives in the Indian Power Sector to move towards Smart Grid: Consultant’s Perspective 11th Nov 2010

2. Agenda • Smart Grid • Definition • Components • Case Study • Smart grid in Indian Context • Drivers • Initiatives • Initiation • Progress • Challenges • Way forward

3. Smart grid Transmission system Superconductive Super High Way Renewable Energy FACTS Balancing Distribution System Market Stability Grid Automation Micro Grid Balancing in Power System Information Technology Investment Demand side Smart Meter Smart Meter Demand Response & DSM Remote metering What is a Smart Grid? • Smart Grid is 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. • In other words, a smart grid is the electricity delivery system (from point of generation to point of consumption) integrated with information and communications technology • There is NO single definition for smart grid - It is an evolving paradigm

4. Smart Grid Components

5. Integrated Smart Grid- Illustration

6. Case Study- Australia • Smart Grid Smart City Initiative taken up by Australian Government- DEWHA • Up to $100 million to deliver a commercial-scale smart grid rollout. • Distributor selected as target for SGSC initiative • Objectives: Deploy a commercial-scale rollout, Build public and corporate awareness , Gather data , Investigate synergies with other networks • Newcastle city to be pilot site, Energy Australia is a winning bidder. Consortium includes OEM companies, utility, State government, Grid operator. • This demonstration project will provide information on the costs and benefits of smart grid technologies and applications that industry needs to make the right decisions in implementing this technology • Other counties who have initiated (partial List) are Singapore, Korea (Juje Island), USA (around 4 Billion across projects), etc

7. The Indian Context - Major Drivers

8. The Indian Context- Initiatives • R-APDRP (Part A, B and C) • Energy Accounting & Reduction of AT&C Losses, Distribution System Strengthening • Creation of IT Infrastructure including Data Centre • Implementation of MDAS, Network and GIS elements & other process elements • Implementation of SCADA & DMS systems • Capacity Building of Utility Personnel across various themes • Smart Grid Taskforce • An inter ministerial group serving as the Government’s focal point for activities related to Smart Grid • Smart Grid Forum • A non-profit voluntary consortium of public and private stakeholders with the prime objective of accelerating development of Smart Grid technologies in the Indian Power Sector • Will help implement Smart Grid technologies in an efficient, cost-effective, innovative and scalable manner by bringing together all the key stakeholders and enabling technologies • 7 Working Groups looking into different aspects of Smart Grid

9. Initiation of Pilot Project • Stakeholder Consultation, Approvals and Sensitization • Funding (Self / Loan / PPP / Joint /etc) • Smart Grid Pilot Design & Selection: Single or multiple location, Customer segmentation, Buy-in for more areas, testing network and back office capabilities, Investment cost, Visibility and focal point etc • Vendor Neutral Technology design • Selection of technology/service providers (RFP, Evaluation etc) • Start of Smart Grid Implementation

10. MoP, Smart Grid Task Force and Smart Grid Forum Progress to a Smarter Grid SMART GRID • Meter Data Acquisition Systems • Network Elements • Application Modules - MBC, CC, CRM, Energy Audit etc Implementation • SCADA and AMR • Relevant HW R-APDRP provides the required framework • Baseline Data • Consumer and Asset Indexing • GIS Implementation • Modules - MIS, System Security, Asset and Maintenance Management Implementation • Capacity Building

11. Challenges towards SG in India • Regulatory Support: • Peak/Off-Peak tariff • Interface metering- Connectivity with the Grid • Incentive / Dis-Incentive for consumers • Traditional Distribution or Distribution & retail • R-APDRP will create platform. Lot still needs to be done. • High Investment Requirement. Funding Options. • Technology to evolve around value chain including Home Appliances • Technology may have a low life span i.e. high depreciation. Standards. • Stakeholders are eager to participate in Smart Grid Program but need direction on how to move with State owned Utilities • Participation of societal stakeholders in investment is a challenge

12. The Indian Context – Major Benefits • Peak reduction – Would enable utilities to reduce purchase of costly power and maintain grid discipline • Quality and control of electricity flow, Improved reliability – Self healing grid with high attack resistance • AT&C Loss reduction – Prevention of disruptions, improved energy management and energy accounting. Leakages would be detected quickly and prevented • Increased efficiency - Individual producer could generate power onsite and feed into the grid without raising reverse flow reliability and safety issues • Empowerment of consumers – Consumers could optimize their usage and billing; Smart Grid enables a competitive electricity market • Sustainable energy – Integration with sources of renewable energy generators; Environmental improvements • Outreach – Micro grids would pave the way for increasing the outreach of electricity

13. ….and the Way Forward Understand consumer requirements (Industry, HT, LT, Specialty etc) Enhance and continually upgrade national vision on Smart Grid Build on R-APDRP and other existing initiatives Environment creation which encourages innovation & entrepreneurship Identify partners from the public and private space (including academia) for enablement of Smart Grid Carry out capacity building activities Implement pilot programs Build long term strategy for inclusion of other services (like data and telecom)

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