Energy Blitz June-july 2012 issue

S M A R T G R I D : KEY TO A SUSTAINABLE

ENERGY FUTURE

VOL-I ( ) JUNE-JULY 2012 ISSN 2249-2992

17

17

Advisory Board Dr. A. Jagadeesh | IndiaDr. Bhamy Shenoy | USAEr. Darshan Goswami | USAElizabeth H. Thompson | BarbadosPincas Jawetz | USA

Ediorial Board Salman Zafar | India

Editor & PublisherM. R. Menon

Business & MediaP. Roshini

Book DesignShamal Nath

Circulation ManagerAndrew Paul

Printed and Published byM.R.Menon at Midas Offset Printers, Kuthuparamba, Kerala

Editorial Office'Pallavi' KulapullyShoranur 679122, Kerala(E-Mail: [email protected])

Disclaimer: The views expressed in the magazineare those of the authors and the Editorial team | energy blitzdoes not take responsibility for the contents and opinions.energy blitz will not be responsible for errors, omissions or comments made by writers, interviewers or Advertisers.Any part of this publication may be reproduced with acknowledgment to the author and magazine.

Registered and Editorial Office'Pallavi, Kulapully, Shoranur 679122,Kerala, IndiaTel: +91-466-2220852/9995081018E-mail: [email protected] Web: energyblitz.webs.com

ENERGY IBL TZ

Ramanathan Menon

JUNE-JULY 2012

IN BETWEEN

Managing the Load: Integrated Demand Response By Jeff Meyers, PE, Smart Grid Strategy and Development, Telvent

Smart Transmission Grid:Vision and FrameworkBy Dr.L. Ashok Kumar

Experimental smart outlet brings flexibility, resiliency to grid architectureBy Staff Writer

VIEW POINT: INDIA is obviously expensive and can never be low-cost country for Solar Photo-Voltaics (SPV)-By Praveen Kumar Kulkarni

Integrated strategy to accelerate adoption of Renewable Energy sources by consumer communities in IndiaBy Swaminathan Mani and Dr. Tarun Dhingra

Cloud as IT Strategy For Power SectorBy Abhishek Anand and Dr. Devendra Kumar Punia

Why Smart Grids are Important to Renewable Energy Sources?By Ramanathan Menon

SMART GRID: A key element in achieving a sustainable energy systemBy Staff Writer

Issues of sustainability of buildings in post Durban period worldwideBy Tara Prasad Dhal

Coal Power: Pollution, politics, and profits

By Kyle Laskowski

Power Tariff Reforms: Need of the HourLalit Jalan 6

913

21

22

24

29

35

3840

42

Advisory Board Dr. A. Jagadeesh | IndiaDr. Bhamy Shenoy | USAEr. Darshan Goswami | USAElizabeth H. Thompson | BarbadosPincas Jawetz | USA

Ediorial Board Salman Zafar | India

Editor & PublisherM. R. Menon

Business & MediaP. Roshini

Book DesignShamal Nath

Circulation ManagerAndrew Paul

Printed and Published byM.R.Menon at Midas Offset Printers, Kuthuparamba, Kerala

Editorial Office'Pallavi' KulapullyShoranur 679122, Kerala(E-Mail: [email protected])

Disclaimer: The views expressed in the magazineare those of the authors and the Editorial team | energy blitzdoes not take responsibility for the contents and opinions.energy blitz will not be responsible for errors, omissions or comments made by writers, interviewers or Advertisers.Any part of this publication may be reproduced with acknowledgment to the author and magazine.

Registered and Editorial Office'Pallavi, Kulapully, Shoranur 679122,Kerala, IndiaTel: +91-466-2220852/9995081018E-mail: [email protected] Web: energyblitz.webs.com

ENERGY BLI ZT

Ramanathan Menon

JUNE-JULY 2012

IN BETWEEN










Coal Power: Pollution, politics, and profits

By Kyle Laskowski

Power Tariff Reforms: Need of the HourLalit Jalan 6

913

21

22

24

29

35

3840

42

“One of the biggest challenges for the power sector in India is to find urgent solutions to the dismal financial health of distribution utilities”

One of the strongest and starkest realisations for all stakeholders in o u r c o u n t r y ' s e c o n o m i c development is about the drastic reform and modernization required f o r I n d i a ' s p o w e r s e c t o r. Moreover, it can be firmly said that a n y r a t i o n a l i z a t i o n a n d modernization of the policy regime in the power sector will set the

example for other infrastructure sectors.

The clear lesson from the recent Indian experience is that the most critical challenge faced by the power sector lies at the distribution end of the Generation --> Transmission --> Distribution value chain. The dismal and deteriorating financial health of the power distribution entities is already seen to be the key factor

that has led to inadequate investments in the sector. This, in turn, has led to serious power shortfall, as well as poor quality of supply, which are both very serious constraining factors on overall economic output.

Just one fundamental financial figure reveals the pervasive impact and implication of the problem. For the financial year 2011-12, the combined financial losses of all the power distribution companies were estimated at a staggering Rs. 1,200 billion (Rs. 1,20,000 crore or nearly 1.5 % of the country's GDP). These losses arose from the rising gap between average cost of supply and the average realization; going by which distribution companies are losing Rs. 2.00 for every unit of electricity sold by them, The accompanying graph shows trend of such loss-making in the power supply business.

(2) Sub-Title: Power distribution losses & subsidies borne by public exchequer in India (3) Source: Power Finance Corporation, data upto 2010 Data for 2011, and 2012 based on industry estimates}

It is well known that timely tariff hikes in the power sector are probably its most politically sensitive issue. The glaring fact is that many states have not revised tariffs in the last 5 to 6 years, and some for even over a decade. With average cost of supply growing at over 7% (CAGR) in recent years, the situation has become completely untenable!

Today, the distribution entities across the country, whether in the public or in the private sector, urgently require tariff hikes of 50 to 60% in order to meet their operating costs, and serve the economy with reliable supplies of power. An increase of this magnitude will seem staggering to the political leadership as well as consumers: but the stark fact is that this hike would still leave unattended the issue of past losses that have accumulated over a period of time due to irrationally low tariffs.

It is equally important to take note of the recent positive signs that governments and policy-making establishments have begun to show as proof of their acknowledgment of the dire necessity of tariff reform. Even before the commencement of financial year 2012-13, seven states revised tariff by 7 to 37 % (Tamil Nadu, Haryana, Andhra Pradesh, Bihar, Orissa, Tripura, and Madhya Pradesh). It is interesting to note that 9 more states have filed tariff revision petitions and are expected to announce new rates for sale of power in the near future. One factor that has led to this more rational view is to do with the stringent measures made mandatory by banks & NBFC's (Non-banking financial companies) for disbursal of any fresh loans to the distribution companies, and the empowerment of state power regulators to revise tariffs by the relevant appellate tribunals.

Of course, the logic behind rationalization of power tariffs has to be put to work on a perennial basis. This implies that permanent mechanisms and practices to pass through to consumers any variation in power costs. The critical consideration here is that purchase costs for power typically constitute up to 80 % of the total cost of the distribution operation. Since the 'truing up' process, involving a fix on the gap between cost of power purchases and the revenues from sales, can take as much as a few years for reasonable estimation, it is important to institute and [(1) Title for Graph: “Financial Short-circuit”

Guest Editorial Power Tariff Reforms: Need of the HourLalit Jalan

7

implement mechanisms that enable immediate pass through performance improvement targets (for AT&C losses, cost of any variation in power costs. This will avoid build up of so- reduction etc) for utilities, has played a notable role in not called 'regulatory assets' (actually amounting to current only bringing greater efficiencies but also reducing operating losses) and cash flow problems which are the regulatory risks. In India, ten states have adopted MYT excruciating experience for most distribution companies at (Multi-Year Tariff) practices in recent years. Time-of-Day present. (ToD) tariffs which are so effective in flattening peak

demands, and therefore the peak deficits in supply, are increasingly being implemented (in some 12 states), too.There are other bedeviling issues, too. Everybody agrees

upon the need for reduction in cross-subsidies between diverse consumers. The high level of subsidy to the domestic Even so, tariff reform is clearly paramount. The state of and agricultural segments complicates the problem further. Delhi is a good example what can be done and what can be One testimony to the twisted deal in such arrangements is undone if tariff rationalisation lags behind other reforms in provided by the fact that 24% of entire electricity supplied the power sector. The entry of private distribution companies flows to the agricultural sector, but yields less than 6% of the has led to such a remarkable turnaround in that state's power total revenues. The hard fact that domestic and agricultural supply: aggregate technical and commercial (AT & C) losses consumers have to face relatively higher hikes in the have come down from an annual average of over 60% to electricity they consume can not be denied for long, or around 15%, alongside a dramatic improvement in quality permanently. Once again there are few signs of rational and reliability of supply, as well as vastly better customer care regulation, albeit early ones. A beginning has been made in services. Yet all the improvements and the entire reform of Tamil Nadu, which has increased tariff on electricity supplied the Delhi electricity supply market is under risk for want of to its agricultural consumers by 589%, to Rs. 1.75 per unit. urgent tariff rationalisation. Stagnant tariffs over a period of

time have led to huge build up of future receivables (regulatory assets) impacting sustainability of operations for Countries around the world have also adopted other all distribution businesses in the country's capital. Clearly, innovative practices that bring in viability and sustainability we have to find a national will towards cost reflective tariffs. to power tariffs, for suppliers and consumers alike. Multi

Year Tariff (MYT) implementation that sets in advance

1979. He then completed his MS in Computer Science About the Author:from the Moore School, University of Pennsylvania in Lalit Jalan is the CEO of Reliance Infrastructure 1982. Mr. Jalan also received his MBA in Finance from Ltd. He concurrently holds the post of Chairman of the prestigious Wharton School, University of BSES Rajdhani & BSES Yamuna Pvt.Ltd. Pennsylvania, being placed in the Directors Honours and Dean's List at Wharton.In 1984, Anil Ambani, chairman of the Anil

Dhirubhai Ambani Group, who had studied with From 2003 onwards, he has led the metamorphosis of the him at Wharton, persuaded him to join and head a erstwhile electricity distribution utility BSES to one of new Reliance initiative in the polypropylene the largest infrastructure companies Reliance business. He was the youngest Chief Executive Infrastructure Ltd, involving three key phases: BSES Officer at Reliance. In less than four years, Jalan Mumbai to Reliance Energy transformation of a grew this venture into a Rs. 6000 crore ($1 conventionally well run DISCOM to a cutting edge world billion+) revenue company despite having no class utility; BSES Delhi transformation of a profusely background in the petrochemicals industry.bleeding DISOM to a robust and shining example of electricity privatization; Reliance Energy to Reliance Jalan has served Reliance Infrastructure Ltd, India's Infrastructure the final steps in transformation of a utility largest private company in the power sector and other beyond recognition into a mega infra player operating infrastructure development, in many roles, including airports, metro trains, roads and sealinks. CEO of the Delhi power distribution company, where

he reduced power theft from 55% when he took over Recognising his achievements, in 2009, Mr. Jalan was in and turning it around, and as CEO of Reliance Elite list of India's 100 Most Powerful CEOs of the Infrastructure in Mumbai, managing several large Economic Times. He was also selected to the prestigious infrastructure projects in power generation, urban IITK@ 50 at the Golden Jubilee Alumni Convention at infrastructure, airports and metro rail. His areas of IIT Kanpur in Jan' 2010. He has been awarded the expertise include policy & planning, finance and Distinguished Alumni Award from IIT, Kanpur. He was logistics across the Infrastructure, Engineering also showcased as one of the IIT system's top 15 Procurement Construction (EPC) and Energy achievers at the 1st PAN IIT meet in California in sectors.January' 2003.

Mr. Jalan completed his B. Tech from IIT Kanpur in

6

“One of the biggest challenges for the power sector in India is to find urgent solutions to the dismal financial health of distribution utilities”

One of the strongest and starkest realisations for all stakeholders in o u r c o u n t r y ' s e c o n o m i c development is about the drastic reform and modernization required f o r I n d i a ' s p o w e r s e c t o r. Moreover, it can be firmly said that a n y r a t i o n a l i z a t i o n a n d modernization of the policy regime in the power sector will set the

example for other infrastructure sectors.

The clear lesson from the recent Indian experience is that the most critical challenge faced by the power sector lies at the distribution end of the Generation --> Transmission --> Distribution value chain. The dismal and deteriorating financial health of the power distribution entities is already seen to be the key factor

that has led to inadequate investments in the sector. This, in turn, has led to serious power shortfall, as well as poor quality of supply, which are both very serious constraining factors on overall economic output.

Just one fundamental financial figure reveals the pervasive impact and implication of the problem. For the financial year 2011-12, the combined financial losses of all the power distribution companies were estimated at a staggering Rs. 1,200 billion (Rs. 1,20,000 crore or nearly 1.5 % of the country's GDP). These losses arose from the rising gap between average cost of supply and the average realization; going by which distribution companies are losing Rs. 2.00 for every unit of electricity sold by them, The accompanying graph shows trend of such loss-making in the power supply business.

(2) Sub-Title: Power distribution losses & subsidies borne by public exchequer in India (3) Source: Power Finance Corporation, data upto 2010 Data for 2011, and 2012 based on industry estimates}

It is well known that timely tariff hikes in the power sector are probably its most politically sensitive issue. The glaring fact is that many states have not revised tariffs in the last 5 to 6 years, and some for even over a decade. With average cost of supply growing at over 7% (CAGR) in recent years, the situation has become completely untenable!

Today, the distribution entities across the country, whether in the public or in the private sector, urgently require tariff hikes of 50 to 60% in order to meet their operating costs, and serve the economy with reliable supplies of power. An increase of this magnitude will seem staggering to the political leadership as well as consumers: but the stark fact is that this hike would still leave unattended the issue of past losses that have accumulated over a period of time due to irrationally low tariffs.

It is equally important to take note of the recent positive signs that governments and policy-making establishments have begun to show as proof of their acknowledgment of the dire necessity of tariff reform. Even before the commencement of financial year 2012-13, seven states revised tariff by 7 to 37 % (Tamil Nadu, Haryana, Andhra Pradesh, Bihar, Orissa, Tripura, and Madhya Pradesh). It is interesting to note that 9 more states have filed tariff revision petitions and are expected to announce new rates for sale of power in the near future. One factor that has led to this more rational view is to do with the stringent measures made mandatory by banks & NBFC's (Non-banking financial companies) for disbursal of any fresh loans to the distribution companies, and the empowerment of state power regulators to revise tariffs by the relevant appellate tribunals.

Of course, the logic behind rationalization of power tariffs has to be put to work on a perennial basis. This implies that permanent mechanisms and practices to pass through to consumers any variation in power costs. The critical consideration here is that purchase costs for power typically constitute up to 80 % of the total cost of the distribution operation. Since the 'truing up' process, involving a fix on the gap between cost of power purchases and the revenues from sales, can take as much as a few years for reasonable estimation, it is important to institute and [(1) Title for Graph: “Financial Short-circuit”

Guest Editorial Power Tariff Reforms: Need of the HourLalit Jalan

7

implement mechanisms that enable immediate pass through performance improvement targets (for AT&C losses, cost of any variation in power costs. This will avoid build up of so- reduction etc) for utilities, has played a notable role in not called 'regulatory assets' (actually amounting to current only bringing greater efficiencies but also reducing operating losses) and cash flow problems which are the regulatory risks. In India, ten states have adopted MYT excruciating experience for most distribution companies at (Multi-Year Tariff) practices in recent years. Time-of-Day present. (ToD) tariffs which are so effective in flattening peak

demands, and therefore the peak deficits in supply, are increasingly being implemented (in some 12 states), too.There are other bedeviling issues, too. Everybody agrees

upon the need for reduction in cross-subsidies between diverse consumers. The high level of subsidy to the domestic Even so, tariff reform is clearly paramount. The state of and agricultural segments complicates the problem further. Delhi is a good example what can be done and what can be One testimony to the twisted deal in such arrangements is undone if tariff rationalisation lags behind other reforms in provided by the fact that 24% of entire electricity supplied the power sector. The entry of private distribution companies flows to the agricultural sector, but yields less than 6% of the has led to such a remarkable turnaround in that state's power total revenues. The hard fact that domestic and agricultural supply: aggregate technical and commercial (AT & C) losses consumers have to face relatively higher hikes in the have come down from an annual average of over 60% to electricity they consume can not be denied for long, or around 15%, alongside a dramatic improvement in quality permanently. Once again there are few signs of rational and reliability of supply, as well as vastly better customer care regulation, albeit early ones. A beginning has been made in services. Yet all the improvements and the entire reform of Tamil Nadu, which has increased tariff on electricity supplied the Delhi electricity supply market is under risk for want of to its agricultural consumers by 589%, to Rs. 1.75 per unit. urgent tariff rationalisation. Stagnant tariffs over a period of

time have led to huge build up of future receivables (regulatory assets) impacting sustainability of operations for Countries around the world have also adopted other all distribution businesses in the country's capital. Clearly, innovative practices that bring in viability and sustainability we have to find a national will towards cost reflective tariffs. to power tariffs, for suppliers and consumers alike. Multi

Year Tariff (MYT) implementation that sets in advance

1979. He then completed his MS in Computer Science About the Author:from the Moore School, University of Pennsylvania in Lalit Jalan is the CEO of Reliance Infrastructure 1982. Mr. Jalan also received his MBA in Finance from Ltd. He concurrently holds the post of Chairman of the prestigious Wharton School, University of BSES Rajdhani & BSES Yamuna Pvt.Ltd. Pennsylvania, being placed in the Directors Honours and Dean's List at Wharton.In 1984, Anil Ambani, chairman of the Anil

Dhirubhai Ambani Group, who had studied with From 2003 onwards, he has led the metamorphosis of the him at Wharton, persuaded him to join and head a erstwhile electricity distribution utility BSES to one of new Reliance initiative in the polypropylene the largest infrastructure companies Reliance business. He was the youngest Chief Executive Infrastructure Ltd, involving three key phases: BSES Officer at Reliance. In less than four years, Jalan Mumbai to Reliance Energy transformation of a grew this venture into a Rs. 6000 crore ($1 conventionally well run DISCOM to a cutting edge world billion+) revenue company despite having no class utility; BSES Delhi transformation of a profusely background in the petrochemicals industry.bleeding DISOM to a robust and shining example of electricity privatization; Reliance Energy to Reliance Jalan has served Reliance Infrastructure Ltd, India's Infrastructure the final steps in transformation of a utility largest private company in the power sector and other beyond recognition into a mega infra player operating infrastructure development, in many roles, including airports, metro trains, roads and sealinks. CEO of the Delhi power distribution company, where

he reduced power theft from 55% when he took over Recognising his achievements, in 2009, Mr. Jalan was in and turning it around, and as CEO of Reliance Elite list of India's 100 Most Powerful CEOs of the Infrastructure in Mumbai, managing several large Economic Times. He was also selected to the prestigious infrastructure projects in power generation, urban IITK@ 50 at the Golden Jubilee Alumni Convention at infrastructure, airports and metro rail. His areas of IIT Kanpur in Jan' 2010. He has been awarded the expertise include policy & planning, finance and Distinguished Alumni Award from IIT, Kanpur. He was logistics across the Infrastructure, Engineering also showcased as one of the IIT system's top 15 Procurement Construction (EPC) and Energy achievers at the 1st PAN IIT meet in California in sectors.January' 2003.

Mr. Jalan completed his B. Tech from IIT Kanpur in

6

9

“Managing peak load is one of the most critical drivers in the utility industry today, despite recent slower economic activity and correspondingly flatter load growth. With India's rapid economic expansion and increasing energy demand, conservation and smart energy use continues to be a major policy objective, leading many utilities to concentrate on using a smarter grid to help delay or even eliminate new base generation”

load management from the supply side.

The DSDR concept is to reduce load by reducing voltage.

Voltage drop is an inherent characteristic of all

distribution feeders; voltage is higher near the source

substation and declines the farther electrically each

load is from the source. Utilities need to maintain

delivery voltage within a certain range to provide

quality of service, thus providing adequate voltage is

often the key driver in feeder configuration. DSDR

works by flattening the voltage profile of feeders in the

system under normal operating conditions, providing Many smart grid projects coming on line are focused on margin to reduce voltage under emergency or peak load reducing peak load, using a variety of technologies from conditions. distributed renewables to energy storage, and from

customer-incented load reduction to grid optimization. The DSDR concept involves both information These last two techniques are among the most technology (IT) and operations technology (OT) promising, if very different, initiatives. As smart improvements. OT changes and additions usually metering and building technology proliferates, demand include adding more voltage regulation and capacitive response (DR) programs are growing in number and reactance (VARs), and may also involve switches and sophistication. Looking at the problem from the even tie line additions to increase operating flexibility. opposite perspective, a few leading utilities are IT improvements involve using advanced analytics to implementing advanced distribution management monitor and control voltage and VARs, keeping the systems (advanced DMS) to optimize the network for system within a tight operating range for normal voltage and VARs, using a technique labeled distribution conditions. It is this optimization that enables the system demand response (DSDR) to reduce peak distribution operator to reduce voltage under peak demand. conditions, without compromising system reliability.

When system voltage is reduced, all real power loads These two approaches try to address the peak load are reduced in proportion. problem by starting from different points; DR

works from the demand side, while DSDR seeks

to make the supply side more efficient. Each can

be effective at limiting peak load. A closer look at

both ideas will give a sense for the current

technology and help us imagine a future where

both supply and demand management are

combined to create a holistic approach to

controlling peak load.

DSDR: The 'Other' DR Approach

Making the distribution system more efficient

seems like a worthwhile goal. Most distribution

systems have plenty of head room when it comes

to operating efficiency, including managing

voltage and VARs for optimum performance. Some utilities

are discovering that, among many other benefits of

distribution automation, significant peak reductions can be

achieved through implementing a DSDR approach to peak

By using Advanced DMS to optimize voltage and VARs on the distribution system, utilities are able to decrease demand and thus power delivered without impact on customers


9

“Managing peak load is one of the most critical drivers in the utility industry today, despite recent slower economic activity and correspondingly flatter load growth. With India's rapid economic expansion and increasing energy demand, conservation and smart energy use continues to be a major policy objective, leading many utilities to concentrate on using a smarter grid to help delay or even eliminate new base generation”

load management from the supply side.

The DSDR concept is to reduce load by reducing voltage.

Voltage drop is an inherent characteristic of all

distribution feeders; voltage is higher near the source

substation and declines the farther electrically each

load is from the source. Utilities need to maintain

delivery voltage within a certain range to provide

quality of service, thus providing adequate voltage is

often the key driver in feeder configuration. DSDR

works by flattening the voltage profile of feeders in the

system under normal operating conditions, providing Many smart grid projects coming on line are focused on margin to reduce voltage under emergency or peak load reducing peak load, using a variety of technologies from conditions. distributed renewables to energy storage, and from

customer-incented load reduction to grid optimization. The DSDR concept involves both information These last two techniques are among the most technology (IT) and operations technology (OT) promising, if very different, initiatives. As smart improvements. OT changes and additions usually metering and building technology proliferates, demand include adding more voltage regulation and capacitive response (DR) programs are growing in number and reactance (VARs), and may also involve switches and sophistication. Looking at the problem from the even tie line additions to increase operating flexibility. opposite perspective, a few leading utilities are IT improvements involve using advanced analytics to implementing advanced distribution management monitor and control voltage and VARs, keeping the systems (advanced DMS) to optimize the network for system within a tight operating range for normal voltage and VARs, using a technique labeled distribution conditions. It is this optimization that enables the system demand response (DSDR) to reduce peak distribution operator to reduce voltage under peak demand. conditions, without compromising system reliability.

When system voltage is reduced, all real power loads These two approaches try to address the peak load are reduced in proportion. problem by starting from different points; DR

works from the demand side, while DSDR seeks

to make the supply side more efficient. Each can

be effective at limiting peak load. A closer look at

both ideas will give a sense for the current

technology and help us imagine a future where

both supply and demand management are

combined to create a holistic approach to

controlling peak load.

DSDR: The 'Other' DR Approach

Making the distribution system more efficient

seems like a worthwhile goal. Most distribution

systems have plenty of head room when it comes

to operating efficiency, including managing

voltage and VARs for optimum performance. Some utilities

are discovering that, among many other benefits of

distribution automation, significant peak reductions can be

achieved through implementing a DSDR approach to peak

By using Advanced DMS to optimize voltage and VARs on the distribution system, utilities are able to decrease demand and thus power delivered without impact on customers


10

Of course, volt/VAR optimization isn't trivial, especially in with their customers, while others choose to engage an

large and complex distribution systems. In order to operate aggregator to manage DR programs. Aggregators sell DR

the distribution grid within a tight range of parameters, a services, signing up end-use customers by offering rate

detailed network model and a highly advanced analytical incentives and broker total peak load reductions to the

engine are required. That's where a tool like advanced grid operator (or at times, the transmission or

DMS earns its keep, monitoring and controlling the grid as generation operator). Some industry observers

load and configuration change. The advanced DMS speculate that the expansion of smart meters will make

manages complexity, becoming the 'better brain' of the it easier and more desirable for the utility to have a

smart grid. direct DR relationship with its customers, potentially

eliminating the role of the aggregator. DSDR benefits can be significant. Depending on the

characteristics of the utility, including generation profile While smart metering provides a potential platform for

and distribution configuration, savings of 1.5 to 3.0 extending DR capabilities to all electric customers, the

percent in peak are within reach for many companies. nature of load at most utilities dictates that the key

And since DSDR typically replaces peaking power that is targets for demand management are usually

generated or purchased at the highest incremental cost, commercial and industrial (C&I) customers. On average,

the savings are substantial. C&I loads make up a small percentage of metered

customers but represent a significant majority of total Customer-Facing Demand Response load, so they constitute a fertile field for DR-based peak

reduction. Further, owing to the rapid growth in smart A number of DR models are in play today, but all rely on building technology, many larger electrical consumers the basic idea that a customer can achieve economic (and are better equipped to automate the management of possibly other) benefits by altering or reducing load at their energy usage while minimizing the impact on certain times. There are the simplest direct load control overall operations. In fact, smart building technology schemes, where the network operator can send a signal to has progressed to include managing energy and turn off certain appliances and equipment, and the more demand in an integrated environment with process and sophisticated methods based on time-of-use tariffs that machines, IT and server room, building asset, and allow the customer to decide on energy usage using pricing security management, all under a single umbrella. signals. But in all cases, DR programs aim to reduce peak Through implementing an integrated smart buildings by offering incentives to the customer. toolset, college campuses, factories and large

commercial retail operations, can see significant savings Many grid operators interact directly through programs in energy and demand costs, as much as 2.5 to 5 percent

or more, without noticeable impact in

commercial operations.

A Look into the Future: Integrated

Demand Response

Both DSDR and DR can be effective

tools for reducing peak demand,

representing significant enough savings to

merit the term 'virtual generation'. But

each has its drawbacks. DSDR can only

constrain peak for purely resistive loads,

which means that, while significant, there

is a limit to the peak load that can be

shaved. Customer-facing DR peak

savings can be unpredictable, as

contractual requirements and customer

response can vary. And, as load continues

to grow, it may be necessary to reduce

peak demand more dramatically than can be achieved by

either technique separately. That's why integrated demand 11

response (IDR), bringing together DR and DSDR, may be Once the DR event is initiated, the advanced DMS could the answer for the future of peak demand management. track the impact of load reduction through closed loop control, re-tuning the DSDR solution to re-optimize for What would the world of IDR look like? First off, the prevailing load and switching configuration.

enabling IDR will require implementing the correct Through closed loop control, using bi-directional

process flow. Starting with a detailed, up-to-date communications between the advanced DMS and network model for analyzing the distribution grid, the devices in the field, the distribution grid can become IDR process would optimize voltage and VARs using even smarter, adjusting for peak demand conditions and DSDR as a peak approaches. After solving for the responding to changes in the IDR program. The

advanced DMS-managed grid would be the truly smart optimal configuration, advanced DMS would forecast grid. additional reduction needs that may require a

customer-facing DR event. Any DR requirements would The benefits of the

distribution system

supervised by advanced DMS

would extend far beyond

more efficient demand

response. The advanced

DMS-enabled grid would

also support integrating

renewables and energy

storage to help manage peak

and mitigate renewable

generation intermittency.

Analysis and control of

electric vehicles could be

another significant benefit.

In fact, the advanced DMS-

managed network could

become the medium of

energy exchange, the

marketplace where virtual

generation through

integrated demand response, and real renewable

generation and storage are bought and sold, while be projected on a localized basis, defining not only the

safety, reliability and operational efficiency thrive. absolute amount of load curtailment required, but also

the areas of the network where peak reduction can do

the most good. For example, an overloaded substation

or feeder segment could be targeted for relief using DR.

Jeff Meyers is a second-generation electrical engineer, and former president of Telvent Miner & Miner. In his 30-year utility career, Meyers has designed electric substations and transmission lines, and developed system planning and protection studies. Since 1987, he has worked on more than 50 GIS development projects for a variety of gas, electric and other utilities, based on the developing and evolving technology of ESRI and Telvent. Meyers is a registered professional engineer in several states of the U.S. and a five-time Speaker of The Year award winner of GITA. Most recently, Meyers has been evangelizing the message of Smart Grid and how the use of integrated technology can bring energy efficiencies to the industry. His contact email: [email protected] Buildings Integrate Comprehensive Management

Systems to provide significant savings in energy and

demand costs

With an integrated demand response program, an ADMS-managed grid will truly be a smart grid

10

Of course, volt/VAR optimization isn't trivial, especially in with their customers, while others choose to engage an

large and complex distribution systems. In order to operate aggregator to manage DR programs. Aggregators sell DR

the distribution grid within a tight range of parameters, a services, signing up end-use customers by offering rate

detailed network model and a highly advanced analytical incentives and broker total peak load reductions to the

engine are required. That's where a tool like advanced grid operator (or at times, the transmission or

DMS earns its keep, monitoring and controlling the grid as generation operator). Some industry observers

load and configuration change. The advanced DMS speculate that the expansion of smart meters will make

manages complexity, becoming the 'better brain' of the it easier and more desirable for the utility to have a

smart grid. direct DR relationship with its customers, potentially

eliminating the role of the aggregator. DSDR benefits can be significant. Depending on the

characteristics of the utility, including generation profile While smart metering provides a potential platform for

and distribution configuration, savings of 1.5 to 3.0 extending DR capabilities to all electric customers, the

percent in peak are within reach for many companies. nature of load at most utilities dictates that the key

And since DSDR typically replaces peaking power that is targets for demand management are usually

generated or purchased at the highest incremental cost, commercial and industrial (C&I) customers. On average,

the savings are substantial. C&I loads make up a small percentage of metered

customers but represent a significant majority of total Customer-Facing Demand Response load, so they constitute a fertile field for DR-based peak

reduction. Further, owing to the rapid growth in smart A number of DR models are in play today, but all rely on building technology, many larger electrical consumers the basic idea that a customer can achieve economic (and are better equipped to automate the management of possibly other) benefits by altering or reducing load at their energy usage while minimizing the impact on certain times. There are the simplest direct load control overall operations. In fact, smart building technology schemes, where the network operator can send a signal to has progressed to include managing energy and turn off certain appliances and equipment, and the more demand in an integrated environment with process and sophisticated methods based on time-of-use tariffs that machines, IT and server room, building asset, and allow the customer to decide on energy usage using pricing security management, all under a single umbrella. signals. But in all cases, DR programs aim to reduce peak Through implementing an integrated smart buildings by offering incentives to the customer. toolset, college campuses, factories and large

commercial retail operations, can see significant savings Many grid operators interact directly through programs in energy and demand costs, as much as 2.5 to 5 percent

or more, without noticeable impact in

commercial operations.

A Look into the Future: Integrated

Demand Response

Both DSDR and DR can be effective

tools for reducing peak demand,

representing significant enough savings to

merit the term 'virtual generation'. But

each has its drawbacks. DSDR can only

constrain peak for purely resistive loads,

which means that, while significant, there

is a limit to the peak load that can be

shaved. Customer-facing DR peak

savings can be unpredictable, as

contractual requirements and customer

response can vary. And, as load continues

to grow, it may be necessary to reduce

peak demand more dramatically than can be achieved by

either technique separately. That's why integrated demand 11

response (IDR), bringing together DR and DSDR, may be Once the DR event is initiated, the advanced DMS could the answer for the future of peak demand management. track the impact of load reduction through closed loop control, re-tuning the DSDR solution to re-optimize for What would the world of IDR look like? First off, the prevailing load and switching configuration.

enabling IDR will require implementing the correct Through closed loop control, using bi-directional

process flow. Starting with a detailed, up-to-date communications between the advanced DMS and network model for analyzing the distribution grid, the devices in the field, the distribution grid can become IDR process would optimize voltage and VARs using even smarter, adjusting for peak demand conditions and DSDR as a peak approaches. After solving for the responding to changes in the IDR program. The

advanced DMS-managed grid would be the truly smart optimal configuration, advanced DMS would forecast grid. additional reduction needs that may require a

customer-facing DR event. Any DR requirements would The benefits of the

distribution system

supervised by advanced DMS

would extend far beyond

more efficient demand

response. The advanced

DMS-enabled grid would

also support integrating

renewables and energy

storage to help manage peak

and mitigate renewable

generation intermittency.

Analysis and control of

electric vehicles could be

another significant benefit.

In fact, the advanced DMS-

managed network could

become the medium of

energy exchange, the

marketplace where virtual

generation through

integrated demand response, and real renewable

generation and storage are bought and sold, while be projected on a localized basis, defining not only the

safety, reliability and operational efficiency thrive. absolute amount of load curtailment required, but also

the areas of the network where peak reduction can do

the most good. For example, an overloaded substation

or feeder segment could be targeted for relief using DR.

Jeff Meyers is a second-generation electrical engineer, and former president of Telvent Miner & Miner. In his 30-year utility career, Meyers has designed electric substations and transmission lines, and developed system planning and protection studies. Since 1987, he has worked on more than 50 GIS development projects for a variety of gas, electric and other utilities, based on the developing and evolving technology of ESRI and Telvent. Meyers is a registered professional engineer in several states of the U.S. and a five-time Speaker of The Year award winner of GITA. Most recently, Meyers has been evangelizing the message of Smart Grid and how the use of integrated technology can bring energy efficiencies to the industry. His contact email: [email protected] Buildings Integrate Comprehensive Management

Systems to provide significant savings in energy and

demand costs

With an integrated demand response program, an ADMS-managed grid will truly be a smart grid

45 13

Abstract I. INTRODUCTION

A modern power grid needs to become smarter in order The Electric power transmission grid has been to provide an affordable, reliable, and sustainable supply progressively developed for over a century, from the of electricity. For these reasons, considerable activity has initial design of local dc networks in low-voltage levels been carried out to formulate and promote a vision for to three- phase high voltage ac networks, and finally to the development of future smart power grids. However, modern bulk interconnected networks with various the majority of these activities emphasized only the voltage levels and multiple complex electrical distribution grid and demand side leaving the big picture components. The development of human society and of the transmission grid in the context of smart grids economic needs was the catalyst that drove the revolution unclear. This paper presents a unique vision for the future of transmission grids stage-by-stage with the aid of of smart transmission grids in which their major features innovative technologies. As the backbone used to deliver are identified. In this vision, each smart transmission grid electricity from points of generation to the consumers, is regarded as an integrated system that functionally the transmission grid revolution needs to recognize and consists of three interactive, smart components, i.e., deal with more diversified challenges than ever before. It smart control centers, smart transmission networks, and should be noted that in this paper the word “grid” refers smart substations. The features and functions of each of not only to the physical network but also to the controls the three functional components, as well as the enabling and devices supporting the function of the physical technologies to achieve these features and functions, are network, such that this work is aligned with the ongoing discussed in detail in the paper. smart grid initiative. This paper summarizes the


Fig. 1.Vision of a smart transmission grid.

45 13

Abstract I. INTRODUCTION

A modern power grid needs to become smarter in order The Electric power transmission grid has been to provide an affordable, reliable, and sustainable supply progressively developed for over a century, from the of electricity. For these reasons, considerable activity has initial design of local dc networks in low-voltage levels been carried out to formulate and promote a vision for to three- phase high voltage ac networks, and finally to the development of future smart power grids. However, modern bulk interconnected networks with various the majority of these activities emphasized only the voltage levels and multiple complex electrical distribution grid and demand side leaving the big picture components. The development of human society and of the transmission grid in the context of smart grids economic needs was the catalyst that drove the revolution unclear. This paper presents a unique vision for the future of transmission grids stage-by-stage with the aid of of smart transmission grids in which their major features innovative technologies. As the backbone used to deliver are identified. In this vision, each smart transmission grid electricity from points of generation to the consumers, is regarded as an integrated system that functionally the transmission grid revolution needs to recognize and consists of three interactive, smart components, i.e., deal with more diversified challenges than ever before. It smart control centers, smart transmission networks, and should be noted that in this paper the word “grid” refers smart substations. The features and functions of each of not only to the physical network but also to the controls the three functional components, as well as the enabling and devices supporting the function of the physical technologies to achieve these features and functions, are network, such that this work is aligned with the ongoing discussed in detail in the paper. smart grid initiative. This paper summarizes the


Fig. 1.Vision of a smart transmission grid.

14

challenges and needs for future smart transmission grids implementation of advanced metering, distribution into four aspects. automation, demand response, and wide-area measurement.

The interoperability is expected to be enabled between a) Environmental challenges. Traditional electric advanced technologies and the power system.

power production, as the largest man-created emission source, must be changed to mitigate the The SmartGrids program, formed by the European climate change. Also, a shortage of fossil energy Technology Platform (ETP) in 2005, created a joint vision resources has been foreseen in the next few for the European networks of 2020 and beyond. Its objective decades. Natural catastrophes, such as hurricanes, features were identified for Europe's electricity networks as earthquakes, and tornados can destroy the trans- flexible to customers' requests, accessible to network users mission grids easily. Finally, the available and and renewable power sources, reliable for security and suitable space for the future expansion of quality of power supply, and economic to provide the best transmission grids has decreased dramatically. value and efficient energy management.

A Federal Smart Grid Task Force was established by the b) Market/customer needs. Full-fledged system U.S. Department of Energy (DoE) under Title XIII of the

operation technologies and power market Energy Independence and Security Act of 2007. In its Grid policies need to be developed to sustain the 2030 vision, the objectives are to construct a 21st century transparency and liberty of the competitive electric system to provide abundant, affordable, clean, market. Customer satisfaction with electricity efficient, and reliable electric power anytime, anywhere. The consumption should be improved by providing expected achievements, through smart grid development, high quality/price ratio electricity and customers' will not merely enhance the reliability, efficiency, and freedom to interact with the grid. security of the nation's electric grid, but also contribute to

the strategic goal of reducing carbon emissions. Remarkable c) Infrastructure challenges. The existing research and development activities are also ongoing in

infrastructure for electricity transmission has both industry and academia. quickly aging components and insufficient investments for improvements. With the pressure The majority of previous work has placed great emphasis on of the increasing load demands, the network the distribution system and demand side as evidenced by the congestion is becoming worse. The fast online wide range of emerging technologies applied to them. The analysis tools, wide-area monitoring, big picture of the whole transmission grid, in the context of measurement and control, and fast and accurate smart grids, is still unclear. This paper presents a unique protections are needed to improve the reliability vision for future smart transmission grids by identifying the of the networks. major smart characteristics and performance features to

handle new challenges. The proposed vision regards the d) Innovative technologies. On one hand, the power transmission grid as an integrated system that

innovative technologies, including new materials, functionally consists of three interactive parts: control advanced power electronics, and communication centers, transmission networks, and substations. It takes into technologies, are not yet mature or commercially account each fundamental component of the smart grid.available for the revolution of transmission grids; on the other hand, the existing grids lack enough II. FRAMEWORK AND CHARACTERISTICS OF compatibility to accommodate the implementation SMART TRANSMISSION GRIDSof spear-point technologies in the practical networks. Whereas the innovation of the The vision of a smart transmission grid is illustrated in Fig. transmission grid was driven by technology in the 1. The existing transmission grid is under significant past, the current power industry is being pressure from the diversified challenges and needs of the modernized and tends to deal with the challenges environment, customers, and the market, as well as existing more proactively by using state-of-the-art infrastructure issues. These challenges and needs are more technological advances in the areas of sensing, important and urgent than ever before and will drive the communications, control, computing, and in- present transmission grid to expand and enhance its formation technology. The shift in the functions towards smarter features with the leverage of development of transmission grids to be more rapidly developing technologies. As a roadmap for research intelligent has been summarized as “smart grid,” and development, the smart features of the transmission grid as well as several other terminologies such as are envisaged and summarized in this paper as digitalization, IntelliGrid, GridWise, FutureGrid, etc. flexibility, intelligence, resilience, sustainability, and

customization. With these smart features, the future The IntelliGrid program, initiated by the Electric Power transmission grid is expected to deal with the challenges in Research Institution (EPRI), is to create the technical all four identified areas.foundation for a smart power grid that links electricity with communications and computer control to achieve A.Digitalizatontremendous gains in the enhancements of reliability, capacity, and customer service. This program provides The smart transmission grid will employ a unique, digital methodologies, tools, and recommendations for open platform for fast and reliable sensing, measurement, standards and requirement-based technologies with the communication, computation, control, protection, 15

visualization, and maintenance of the entire customers with more energy consumption options for a high transmission system. This is the fundamental feature quality/price ratio. The smart transmission grid will further that will facilitate the realization of the other smart liberate the power market by increasing transparency and features. This platform is featured with user-friendly improving competition for market participants.visualization for sensitive situation awareness and a high tolerance for man-made errors. To achieve the aforementioned smart features and

characteristics, the enabling technologies include the B. Flexiblity following.

The flexibility for the future smart transmission grid is 1) New materials and alternative clean energy resources. featured in four aspects: 1) expandability for future The application of new materials and devices in power development with the penetration of innovative and systems will improve the efficiency of power supply by diverse generation technologies; 2) adaptability to increasing power transfer capabilities, reducing energy various geographical locations and climates; 3) multiple losses, and lowering construction costs. The high control strategies for the coordination of decentralized penetration of alternative clean energy resources will control schemes among substations and control centers; mitigate the conflicts between the human society and 4) seamless compatibility with various market development and environment sustainability.operation styles and plug-and-play capability to accommodate progressive technology upgrades with 2) Advanced power electronics and devices. Advanced power hardware and software components. electronics will be able to greatly improve the quality of

power supply and flexibility of power flow control.C. Intelligence

3) Sensing and measurement. Smart sensing and Intelligent technologies and human expertise will be measurement and advanced instrumentation technologies incorporated and embedded in the smart transmission will serve as the basis for communications, computing, grid. Self-awareness of the system operation state will control, and intelligence.be available with the aid of online time-domain analysis such as voltage/angular stability and security analysis. 4) Communications. Adaptive communication networks will Self-healing will be achieved to enhance the security of allow open-standardized communication protocols to transmission grid via coordinated protection and control operate on a unique platform. Real-time control based on schemes. a fast and accurate information exchange in different plat-

forms will improve the system resilience by the D. Resiliency enhancement of system reliability and security, and

optimization of the transmission asset utilization.The smart transmission grid will be capable of delivering electricity to customers securely and reliably 5) Advanced computing and control methodologies: High-in the case of any external or internal disturbances or performance computing, parallel, and distributed hazards. A fast self-healing capability will enable the computing technologies will enable real-time modeling system to reconfigure itself dynamically to recover from and simulation of complex power systems. The accuracy attacks, natural disasters, blackouts, or network of the situation awareness will be improved for further component failures. Online computation and analysis suitable operations and control strategies. Advanced will enable the fast and flexible network operation and control methodologies and novel distributed control controls such as intentional islanding in the event of an paradigms will be needed to automate the entire emergency. customer-centric power delivery network.

E. Sustainability 6) Mature power market regulation and policies. The mature regulation and policies should improve the transparency,

The sustainability of the smart transmission grid is liberty, and competition of the power market. High featured as sufficiency, efficiency, and environment- customer interaction with the electricity consumption friendly. The growth of electricity demand should be should be enabled and encouraged.satisfied with the implementation of affordable alternative energy resources, increased energy savings 7) Intelligent technologies. Intelligent technologies will via technology in the electricity delivery and system enable fuzzy logic reasoning, knowledge discovery, and operation, and mitigation of network congestion. self-learning, which are important ingredients integrated Innovative technologies to be employed should have in the implementation of the above advanced technologies less pollution or emission, and decarbonize with to build a smarter transmission grid.consideration to the environment and climate changes.

F. Customization III. SMART CONTROL CENTERS

The design of the smart transmission grid will be client- The vision of the future smart control centers is built on the tailored for the operators' convenience without the loss of existing control centers, originally developed approximately its functions and interoperability. It will also cater to a half-century ago. The expected new functions, such as

14

challenges and needs for future smart transmission grids implementation of advanced metering, distribution into four aspects. automation, demand response, and wide-area measurement.

The interoperability is expected to be enabled between a) Environmental challenges. Traditional electric advanced technologies and the power system.

power production, as the largest man-created emission source, must be changed to mitigate the The SmartGrids program, formed by the European climate change. Also, a shortage of fossil energy Technology Platform (ETP) in 2005, created a joint vision resources has been foreseen in the next few for the European networks of 2020 and beyond. Its objective decades. Natural catastrophes, such as hurricanes, features were identified for Europe's electricity networks as earthquakes, and tornados can destroy the trans- flexible to customers' requests, accessible to network users mission grids easily. Finally, the available and and renewable power sources, reliable for security and suitable space for the future expansion of quality of power supply, and economic to provide the best transmission grids has decreased dramatically. value and efficient energy management.

A Federal Smart Grid Task Force was established by the b) Market/customer needs. Full-fledged system U.S. Department of Energy (DoE) under Title XIII of the

operation technologies and power market Energy Independence and Security Act of 2007. In its Grid policies need to be developed to sustain the 2030 vision, the objectives are to construct a 21st century transparency and liberty of the competitive electric system to provide abundant, affordable, clean, market. Customer satisfaction with electricity efficient, and reliable electric power anytime, anywhere. The consumption should be improved by providing expected achievements, through smart grid development, high quality/price ratio electricity and customers' will not merely enhance the reliability, efficiency, and freedom to interact with the grid. security of the nation's electric grid, but also contribute to

the strategic goal of reducing carbon emissions. Remarkable c) Infrastructure challenges. The existing research and development activities are also ongoing in

infrastructure for electricity transmission has both industry and academia. quickly aging components and insufficient investments for improvements. With the pressure The majority of previous work has placed great emphasis on of the increasing load demands, the network the distribution system and demand side as evidenced by the congestion is becoming worse. The fast online wide range of emerging technologies applied to them. The analysis tools, wide-area monitoring, big picture of the whole transmission grid, in the context of measurement and control, and fast and accurate smart grids, is still unclear. This paper presents a unique protections are needed to improve the reliability vision for future smart transmission grids by identifying the of the networks. major smart characteristics and performance features to

handle new challenges. The proposed vision regards the d) Innovative technologies. On one hand, the power transmission grid as an integrated system that

innovative technologies, including new materials, functionally consists of three interactive parts: control advanced power electronics, and communication centers, transmission networks, and substations. It takes into technologies, are not yet mature or commercially account each fundamental component of the smart grid.available for the revolution of transmission grids; on the other hand, the existing grids lack enough II. FRAMEWORK AND CHARACTERISTICS OF compatibility to accommodate the implementation SMART TRANSMISSION GRIDSof spear-point technologies in the practical networks. Whereas the innovation of the The vision of a smart transmission grid is illustrated in Fig. transmission grid was driven by technology in the 1. The existing transmission grid is under significant past, the current power industry is being pressure from the diversified challenges and needs of the modernized and tends to deal with the challenges environment, customers, and the market, as well as existing more proactively by using state-of-the-art infrastructure issues. These challenges and needs are more technological advances in the areas of sensing, important and urgent than ever before and will drive the communications, control, computing, and in- present transmission grid to expand and enhance its formation technology. The shift in the functions towards smarter features with the leverage of development of transmission grids to be more rapidly developing technologies. As a roadmap for research intelligent has been summarized as “smart grid,” and development, the smart features of the transmission grid as well as several other terminologies such as are envisaged and summarized in this paper as digitalization, IntelliGrid, GridWise, FutureGrid, etc. flexibility, intelligence, resilience, sustainability, and

customization. With these smart features, the future The IntelliGrid program, initiated by the Electric Power transmission grid is expected to deal with the challenges in Research Institution (EPRI), is to create the technical all four identified areas.foundation for a smart power grid that links electricity with communications and computer control to achieve A.Digitalizatontremendous gains in the enhancements of reliability, capacity, and customer service. This program provides The smart transmission grid will employ a unique, digital methodologies, tools, and recommendations for open platform for fast and reliable sensing, measurement, standards and requirement-based technologies with the communication, computation, control, protection, 15

visualization, and maintenance of the entire customers with more energy consumption options for a high transmission system. This is the fundamental feature quality/price ratio. The smart transmission grid will further that will facilitate the realization of the other smart liberate the power market by increasing transparency and features. This platform is featured with user-friendly improving competition for market participants.visualization for sensitive situation awareness and a high tolerance for man-made errors. To achieve the aforementioned smart features and

characteristics, the enabling technologies include the B. Flexiblity following.

The flexibility for the future smart transmission grid is 1) New materials and alternative clean energy resources. featured in four aspects: 1) expandability for future The application of new materials and devices in power development with the penetration of innovative and systems will improve the efficiency of power supply by diverse generation technologies; 2) adaptability to increasing power transfer capabilities, reducing energy various geographical locations and climates; 3) multiple losses, and lowering construction costs. The high control strategies for the coordination of decentralized penetration of alternative clean energy resources will control schemes among substations and control centers; mitigate the conflicts between the human society and 4) seamless compatibility with various market development and environment sustainability.operation styles and plug-and-play capability to accommodate progressive technology upgrades with 2) Advanced power electronics and devices. Advanced power hardware and software components. electronics will be able to greatly improve the quality of

power supply and flexibility of power flow control.C. Intelligence

3) Sensing and measurement. Smart sensing and Intelligent technologies and human expertise will be measurement and advanced instrumentation technologies incorporated and embedded in the smart transmission will serve as the basis for communications, computing, grid. Self-awareness of the system operation state will control, and intelligence.be available with the aid of online time-domain analysis such as voltage/angular stability and security analysis. 4) Communications. Adaptive communication networks will Self-healing will be achieved to enhance the security of allow open-standardized communication protocols to transmission grid via coordinated protection and control operate on a unique platform. Real-time control based on schemes. a fast and accurate information exchange in different plat-

forms will improve the system resilience by the D. Resiliency enhancement of system reliability and security, and

optimization of the transmission asset utilization.The smart transmission grid will be capable of delivering electricity to customers securely and reliably 5) Advanced computing and control methodologies: High-in the case of any external or internal disturbances or performance computing, parallel, and distributed hazards. A fast self-healing capability will enable the computing technologies will enable real-time modeling system to reconfigure itself dynamically to recover from and simulation of complex power systems. The accuracy attacks, natural disasters, blackouts, or network of the situation awareness will be improved for further component failures. Online computation and analysis suitable operations and control strategies. Advanced will enable the fast and flexible network operation and control methodologies and novel distributed control controls such as intentional islanding in the event of an paradigms will be needed to automate the entire emergency. customer-centric power delivery network.

E. Sustainability 6) Mature power market regulation and policies. The mature regulation and policies should improve the transparency,

The sustainability of the smart transmission grid is liberty, and competition of the power market. High featured as sufficiency, efficiency, and environment- customer interaction with the electricity consumption friendly. The growth of electricity demand should be should be enabled and encouraged.satisfied with the implementation of affordable alternative energy resources, increased energy savings 7) Intelligent technologies. Intelligent technologies will via technology in the electricity delivery and system enable fuzzy logic reasoning, knowledge discovery, and operation, and mitigation of network congestion. self-learning, which are important ingredients integrated Innovative technologies to be employed should have in the implementation of the above advanced technologies less pollution or emission, and decarbonize with to build a smarter transmission grid.consideration to the environment and climate changes.

F. Customization III. SMART CONTROL CENTERS

The design of the smart transmission grid will be client- The vision of the future smart control centers is built on the tailored for the operators' convenience without the loss of existing control centers, originally developed approximately its functions and interoperability. It will also cater to a half-century ago. The expected new functions, such as

16

monitoring/visualization, analytical capability, and However, if the global frequency and particularly the controllability of the future control centers, are discussed frequency change can be monitored and traced, it is possible in this section. Also discussed is the interaction with to identify the fault location, even in a remote location, electricity market, although this work excludes the through the use of possible frequency wave technology. market operation from the control centers' functions. Once these new monitoring technologies are implemented

with the wide-area GIS data, the voltage stability margin and A. Monitoring/Visualization frequency wave can be displayed on top of the actual wide-

area map in real time. This will greatly assist the operators in The present monitoring system in a control center identifying potential problems in the real-time operation. depends on state estimators, which are based on data Another noteworthy technology can be the alarming system. collected via SCADA systems and remote terminal units The present technology typically presents alarming signals (RTUs). In the future control center, the system-level without priority. The future control centers should be able to information will be obtained from the state measurement provide the root cause of possible problems to enable the modules based on phasor measurement units (PMUs). operators to provide closer monitoring.The PMU-based state measurement is expected to be more efficient than the present state estimation since B. Analytical Capabilitysynchronized phasor signals provide the state variables, in particular, voltage angles. As a comparison, the The present online analytic tool in control centers typically present state estimation demands additional running time performs steady-state contingency analysis. Each credible and is less robust ,since the data collected from the RTUs contingency event is analyzed using contingency power flow is not synchronized and significant effort must be made studies allowing line flow violations to be identified. In the for topology checking and bad data detection. future control center, it is expected that online time-domain-

based analysis, such as voltage stability and transient The present visualization technology displays the system angular stability, should be available. In addition, online configuration with one-line diagrams that can illustrate small-signal stability analysis is expected.which buses are connected with a specific bus. However, it is not exactly matched to the geographic location. In C. Controllabilityaddition, it is typical that only buses in the control area, together with some boundary buses, are displayed in the In the present control centers, the ultimate control action, monitoring system. In the future, the results from state such as separation, is taken based on offline studies. In the measurement shall be combined with a wide-area future, the system separation will be performed in real time geographical information system (GIS) for visual display to better utilize the dynamic system condition. Similarly, the on the screens of the control center. The wide-area GIS present restoration plan based on offline studies should be shall cover a broad region including the control center's replaced with online restorative plans.own service territory as well as all interconnected areas, Presently, the protection and control settings are configured and even the whole Eastern Interconnect or WECC as fixed values based on offline studies. In the future, these system. This will increase the situational awareness settings should be configured in real time in a proactive and across a broad scope and prevent inappropriate adaptive approach to better utilize the generation and trans- operations when a neighboring system is not fully mission asset when the system is not stressed and to better known. protect the system under extremely stressed conditions

Since the future visualization and monitoring technology The present technology lacks the sufficient coordination of will cover a much broader scope, an increased protection and control systems. Each component takes information exchange is needed. The present technology actions based on its own decision. This uncoordinated for communications includes a mix of obsolete and control could lead to an overreaction under the present current technologies, such as telephone lines, wireless, contingency plan. The future control centers shall have the microwave, and fiber optics. In the future, the capability to coordinate multiple control devices communication channels are expected to be more distributed in the system such that optimal coordination can dedicated such as employing a fiber optic network for be achieved simultaneously for better controllability.communications with quality of service (QoS) implemented. Not surprisingly, this also demands a D. Interactions With Electricity Marketunified protocol for better communications among different control areas. The electricity market is highly intertwined with the future

smart grid. An efficient electricity market is powered by an With the state variables obtained from state measurement advanced grid infrastructure. On the other hand, a smart grid and GIS data, it is desirable to display the system would not be called “smart” without achieving higher stability measures in real time. The present technology market efficiency. The constantly changing electricity typically displays the voltage magnitude. As the system market requires the control center to adapt to the dynamic is more stressed and voltage collapse becomes a transition during the market's development. The control recurring threat, not merely depends on voltage center associated with a market actively interacts with other magnitudes alone, a true indicator of voltage stability control centers, existing market participants, and new margin is needed for better monitoring. Similarly, the entrants. Thus, modern control centers should be able to present technology monitors the local frequency. cope with the changing business architecture. More 17

sophisticated tools should be provided by the control in the transmission network to provide a flexible control of centers to facilitate the system operators' ability to the transmission network and increase power transfer levels monitor and mitigate market power. Furthermore, given without new transmission lines. These devices also improve the increasing interest in utilizing renewable energy and the dynamic performance and stability of the transmission controllable load to meet future demand, the smart network. Through the utilization of FACTS technologies, control center should be flexible to include such energy advanced power flow control, etc., the future smart resources into the unit dispatch. The market clearing transmission grids should be able to maximally relieve algorithms should be robust enough to accommodate the transmission congestions, and therefore fully support volatile nature of certain renewables such as wind deregulation and enable competitive power markets. In generators with finer forecasting and scheduling addition, with the trend of increasing penetration of large-methods. Demand-side participants should have access scale renewable/alternative energy resources, the future to the market through certain communications, control, smart transmission grids should be able to enable full and information channels. Congestion management is integration of these resources.another important feature of the smart control centers. The control centers should forecast and identify the HVDC lines are widely used to provide an economic and potential congestions in the network and alleviate them controllable alternative to ac lines for long distance and with help from the wide-area GIS systems. high-capacity power transmission and integration of large

wind farms. Power electronics-based fault current limiters or IV. SMART TRANSMISSION NETWORKS current limiting conductors may achieve maximum

utilization of line and system capacity, increased reliability, This vision of the smart transmission networks is built on and improved system operation under contingencies. Solid-the existing electric transmission infrastructure. state transformers are used to replace traditional However, the emergence of new technologies, including electromagnetic transformers to provide flexible and advanced materials, power electronics, sensing, efficient transformation between different voltage levels. communication, signal processing, and computing will Solid-state circuit breakers are used to replace traditional increase the utilization, efficiency, quality, and security mechanical breakers. These solid-state devices are free from of existing systems and enable the development of a new arcing and switch bounce, and offer correspondingly higher architecture for transmission networks. reliability and longer lifetimes as well as much faster

switching times.. High-Efficiency and High-Quality Transmission

. Self-Healing and Robust Electricity TransmissionNetworks In the concept of smart transmission networks, ultra- high-voltage, high-capacity transmission corridors Smart transmission networks will extensively incorporate can link major regional interconnections. It is thus advanced sensing, signal processing, and communication possible to balance electric supply and demand on a technologies to monitor operating conditions of transmission national basis. Within each regional interconnection, lines, transformers, and circuit breakers in real time.long-distance transmission is accomplished by using A cost-effective distributed power line condition monitoring controllable high-capacity ac and dc facilities. system, based on a distributed power line wireless sensor net Underground cables are widely used when overhead in which each distributed intelligent sensor module lines are not practical, mostly in urban and underwater incorporates with advanced signal processing and areas. Advanced conductors, including high-temperature communication functions, is able to continuously measure composite conductors for overhead transmission and line parameters and monitor line status in the immediate high-temperature superconducting cables, are widely vicinity of the sensor that are critical for line operation and used for electricity transmission. These conductors have utilization, including measurement of overhead conductor the properties of greater current-carrying capacity, lower sags, estimation of conductor temperature profile, estimation voltage drops, reduced line losses, lighter weight, and of line dynamic thermal capacity, detection of vegetation in greater controllability. In addition, new transmission line proximity to the power line, detection of ice on lines, configurations, e.g., 6- or 12-phase transmission line detection of galloping lines, estimation of mechanical configurations, allow for greater power transmission in a strength of towers, prediction of incipient failure of particular right-of-way with reduced electromagnetic insulators and towers, identification of the critical span fields due to greater phase cancellation. limiting line capacity, and identification of the fault location

of the line. A sophisticated transformer monitoring system is . Flexible Controllability, Improved Transmission able to monitor health and efficiency, measure dissolved

Reliability and Asset Utilization Through the Use of gases-in-oil, and load tap changers of transformers in real AdvancedPower Electronics time. A circuit breaker monitoring system is able to measure In a smart transmission network, flexible and reliable the number of operations since last maintenance, oil or gas transmission capabilities can be facilitated by the insulation levels, and breaker mechanism signatures, and advanced Flexible AC Transmission Systems (FACTS), monitor the health and operation of circuit breakers in real high-voltage dc (HVDC) devices, and other power time.electronics-based devices.

Based on the parameters and operating conditions of trans- FACTS devices (including traditional large-scale FACTS mission facilities, it can automatically detect, analyze, and and new distributed FACTS devices are optimally placed respond to emerging problems before they impact service;

AC

B

16

monitoring/visualization, analytical capability, and However, if the global frequency and particularly the controllability of the future control centers, are discussed frequency change can be monitored and traced, it is possible in this section. Also discussed is the interaction with to identify the fault location, even in a remote location, electricity market, although this work excludes the through the use of possible frequency wave technology. market operation from the control centers' functions. Once these new monitoring technologies are implemented

with the wide-area GIS data, the voltage stability margin and A. Monitoring/Visualization frequency wave can be displayed on top of the actual wide-

area map in real time. This will greatly assist the operators in The present monitoring system in a control center identifying potential problems in the real-time operation. depends on state estimators, which are based on data Another noteworthy technology can be the alarming system. collected via SCADA systems and remote terminal units The present technology typically presents alarming signals (RTUs). In the future control center, the system-level without priority. The future control centers should be able to information will be obtained from the state measurement provide the root cause of possible problems to enable the modules based on phasor measurement units (PMUs). operators to provide closer monitoring.The PMU-based state measurement is expected to be more efficient than the present state estimation since B. Analytical Capabilitysynchronized phasor signals provide the state variables, in particular, voltage angles. As a comparison, the The present online analytic tool in control centers typically present state estimation demands additional running time performs steady-state contingency analysis. Each credible and is less robust ,since the data collected from the RTUs contingency event is analyzed using contingency power flow is not synchronized and significant effort must be made studies allowing line flow violations to be identified. In the for topology checking and bad data detection. future control center, it is expected that online time-domain-

based analysis, such as voltage stability and transient The present visualization technology displays the system angular stability, should be available. In addition, online configuration with one-line diagrams that can illustrate small-signal stability analysis is expected.which buses are connected with a specific bus. However, it is not exactly matched to the geographic location. In C. Controllabilityaddition, it is typical that only buses in the control area, together with some boundary buses, are displayed in the In the present control centers, the ultimate control action, monitoring system. In the future, the results from state such as separation, is taken based on offline studies. In the measurement shall be combined with a wide-area future, the system separation will be performed in real time geographical information system (GIS) for visual display to better utilize the dynamic system condition. Similarly, the on the screens of the control center. The wide-area GIS present restoration plan based on offline studies should be shall cover a broad region including the control center's replaced with online restorative plans.own service territory as well as all interconnected areas, Presently, the protection and control settings are configured and even the whole Eastern Interconnect or WECC as fixed values based on offline studies. In the future, these system. This will increase the situational awareness settings should be configured in real time in a proactive and across a broad scope and prevent inappropriate adaptive approach to better utilize the generation and trans- operations when a neighboring system is not fully mission asset when the system is not stressed and to better known. protect the system under extremely stressed conditions

Since the future visualization and monitoring technology The present technology lacks the sufficient coordination of will cover a much broader scope, an increased protection and control systems. Each component takes information exchange is needed. The present technology actions based on its own decision. This uncoordinated for communications includes a mix of obsolete and control could lead to an overreaction under the present current technologies, such as telephone lines, wireless, contingency plan. The future control centers shall have the microwave, and fiber optics. In the future, the capability to coordinate multiple control devices communication channels are expected to be more distributed in the system such that optimal coordination can dedicated such as employing a fiber optic network for be achieved simultaneously for better controllability.communications with quality of service (QoS) implemented. Not surprisingly, this also demands a D. Interactions With Electricity Marketunified protocol for better communications among different control areas. The electricity market is highly intertwined with the future

smart grid. An efficient electricity market is powered by an With the state variables obtained from state measurement advanced grid infrastructure. On the other hand, a smart grid and GIS data, it is desirable to display the system would not be called “smart” without achieving higher stability measures in real time. The present technology market efficiency. The constantly changing electricity typically displays the voltage magnitude. As the system market requires the control center to adapt to the dynamic is more stressed and voltage collapse becomes a transition during the market's development. The control recurring threat, not merely depends on voltage center associated with a market actively interacts with other magnitudes alone, a true indicator of voltage stability control centers, existing market participants, and new margin is needed for better monitoring. Similarly, the entrants. Thus, modern control centers should be able to present technology monitors the local frequency. cope with the changing business architecture. More 17

sophisticated tools should be provided by the control in the transmission network to provide a flexible control of centers to facilitate the system operators' ability to the transmission network and increase power transfer levels monitor and mitigate market power. Furthermore, given without new transmission lines. These devices also improve the increasing interest in utilizing renewable energy and the dynamic performance and stability of the transmission controllable load to meet future demand, the smart network. Through the utilization of FACTS technologies, control center should be flexible to include such energy advanced power flow control, etc., the future smart resources into the unit dispatch. The market clearing transmission grids should be able to maximally relieve algorithms should be robust enough to accommodate the transmission congestions, and therefore fully support volatile nature of certain renewables such as wind deregulation and enable competitive power markets. In generators with finer forecasting and scheduling addition, with the trend of increasing penetration of large-methods. Demand-side participants should have access scale renewable/alternative energy resources, the future to the market through certain communications, control, smart transmission grids should be able to enable full and information channels. Congestion management is integration of these resources.another important feature of the smart control centers. The control centers should forecast and identify the HVDC lines are widely used to provide an economic and potential congestions in the network and alleviate them controllable alternative to ac lines for long distance and with help from the wide-area GIS systems. high-capacity power transmission and integration of large

wind farms. Power electronics-based fault current limiters or IV. SMART TRANSMISSION NETWORKS current limiting conductors may achieve maximum

utilization of line and system capacity, increased reliability, This vision of the smart transmission networks is built on and improved system operation under contingencies. Solid-the existing electric transmission infrastructure. state transformers are used to replace traditional However, the emergence of new technologies, including electromagnetic transformers to provide flexible and advanced materials, power electronics, sensing, efficient transformation between different voltage levels. communication, signal processing, and computing will Solid-state circuit breakers are used to replace traditional increase the utilization, efficiency, quality, and security mechanical breakers. These solid-state devices are free from of existing systems and enable the development of a new arcing and switch bounce, and offer correspondingly higher architecture for transmission networks. reliability and longer lifetimes as well as much faster

switching times.. High-Efficiency and High-Quality Transmission

. Self-Healing and Robust Electricity TransmissionNetworks In the concept of smart transmission networks, ultra- high-voltage, high-capacity transmission corridors Smart transmission networks will extensively incorporate can link major regional interconnections. It is thus advanced sensing, signal processing, and communication possible to balance electric supply and demand on a technologies to monitor operating conditions of transmission national basis. Within each regional interconnection, lines, transformers, and circuit breakers in real time.long-distance transmission is accomplished by using A cost-effective distributed power line condition monitoring controllable high-capacity ac and dc facilities. system, based on a distributed power line wireless sensor net Underground cables are widely used when overhead in which each distributed intelligent sensor module lines are not practical, mostly in urban and underwater incorporates with advanced signal processing and areas. Advanced conductors, including high-temperature communication functions, is able to continuously measure composite conductors for overhead transmission and line parameters and monitor line status in the immediate high-temperature superconducting cables, are widely vicinity of the sensor that are critical for line operation and used for electricity transmission. These conductors have utilization, including measurement of overhead conductor the properties of greater current-carrying capacity, lower sags, estimation of conductor temperature profile, estimation voltage drops, reduced line losses, lighter weight, and of line dynamic thermal capacity, detection of vegetation in greater controllability. In addition, new transmission line proximity to the power line, detection of ice on lines, configurations, e.g., 6- or 12-phase transmission line detection of galloping lines, estimation of mechanical configurations, allow for greater power transmission in a strength of towers, prediction of incipient failure of particular right-of-way with reduced electromagnetic insulators and towers, identification of the critical span fields due to greater phase cancellation. limiting line capacity, and identification of the fault location

of the line. A sophisticated transformer monitoring system is . Flexible Controllability, Improved Transmission able to monitor health and efficiency, measure dissolved

Reliability and Asset Utilization Through the Use of gases-in-oil, and load tap changers of transformers in real AdvancedPower Electronics time. A circuit breaker monitoring system is able to measure In a smart transmission network, flexible and reliable the number of operations since last maintenance, oil or gas transmission capabilities can be facilitated by the insulation levels, and breaker mechanism signatures, and advanced Flexible AC Transmission Systems (FACTS), monitor the health and operation of circuit breakers in real high-voltage dc (HVDC) devices, and other power time.electronics-based devices.

Based on the parameters and operating conditions of trans- FACTS devices (including traditional large-scale FACTS mission facilities, it can automatically detect, analyze, and and new distributed FACTS devices are optimally placed respond to emerging problems before they impact service;

AC

B

18

make protective relaying to be the last line of defense, 3) Coordination: The smart substation should be ready and not the only defense as it is today; quickly restore the find it easy to communicate and coordinate with other sub- faulty, damaged, or compromised sections of the system stations and control centers. Adaption of protection and during an emergency; and therefore enhance dynamic control schemes should be achieved under coordination of and static utilization and maintain the reliability and control centers to improve the security of the whole power security of the transmission system. grid.

. Advanced Transmission Facility Maintenance 4) Self-healing: The smart substation is able to reconfigure itself dynamically to recover from attacks, natural

In the smart transmission networks, live-line disasters, blackouts, or network component failures.maintenance can be used to clean and deice conductors, The main functions of a smart substation are summarized as clean and lubricate moving parts that open and close, follows:replace spacer/dampers, disconnect/connect breakers, tighten or replace bolts, and install sensors and A. Smart Sensing and Measurementmeasuring devices. Advanced maintenance and power line condition monitoring technologies allow for In a smart substation, all measurement signals will be time prioritized equipment ranking, condition based stamped with high accuracy by using a global positioning maintenance, prevention programs, smart equipment system (GPS) signal. The RTU function will be replaced by replacement programs, and right-of-way maintenance. a PMU in the future. The traditional electromechanical This reduces catastrophic failures and maintenance costs, current transformer (CT) and potential transformer (PT) will and improves the overall reliability of the transmission be replaced by an optical or electronic CT and PT whose system. advantages include wide bandwidth, high accuracy of

measurement, and low maintenance costs. Computational . Extreme Event Facility Hardening System intelligence technology will be incorporated in the sensing

and measurement circuits to reduce the burden of An extreme event facility hardening system is able to communications.identify potential extreme contingencies that are not readily identifiable from a single cause, develop various B. Communicationsextreme event scenarios (e.g., floods, extreme weather, etc.), develop modular equipment designs for lines and Each smart substation has its own high-speed local area novel system configuration to manage failures, and network (LAN) which ties all measurement units and local enable rapid system restoration under catastrophic applications together. Each smart substation also has a server events. that connects to the higher level communication network via

a router. A smart substation should be based on a self-V. SMART SUBSTATIONS healing communication network to significantly improve the

reliability of monitoring and control of substations. Based on The smart substation concept is built on the existing intelligent and ubiquitous IT techniques, proposed a comprehensive automation technologies of substations. It prototype platform of smart substations that provides a should enable more reliable and efficient monitoring, compatible connection interface for various wired and operation, control, protection, and maintenance of the wireless communication capabilities, flexible networking for equipment and apparatus installed in the substations. wired and wireless topologies, un- interruptible SCADA From the operation viewpoint, a smart substation must network. If existing wired (serial bus) networks have a rapidly respond and provide increased operator safety. To fault or accident, then the ubiquitous network re- configures achieve these goals, the major characteristics of a smart itself to bypass or detour around the fault in the local substation shall include the following. substation.

1) Digitalization: The smart substation provides a unique The communication protocol of a smart substation should be and compatible platform for fast and reliable sensing, standardized and open. A good option is the IEC 61850 measurement, communication, control, protection, and standard, which provides an open interface not only among maintenance of all the equipment and apparatus installed the intelligent electronic devices (IEDs) inside a substation, in a variety of substations. All of these tasks can be done but also between substations and between substations and in the digital form, which allows for easy connection control centers. This improves the interoperability of with control centers and business units. communication networks significantly.

2) Autonomy: The smart substation is autonomous. The C. Autonomous Control and Adaptive Protectionoperation of the smart substation does not depend upon the control centers and other substations, but they can A smart substation should contain fully intelligent communicate with each other to increase the efficiency decentralized controllers for auto-restoration, remedial and stability of power transmission. Within a substation, actions, or predictive actions or normal optimization. the operation of individual components and devices is Traditional automatic voltage/Var controllers based on local also autonomous to ensure fast and reliable response, measurement information in a substation will be coordinated especially under emergency conditions. by control centers. Voltage instability conditions can be

assessed much faster based on local PMU measurement

D

E

19

information. Further, the results of voltage stability status changes and trips. For example, smart substations can assessment calculations can be directly incorporated into provide immediate alarm warnings to authorized users via remedial action schemes to improve the power system cell phones, pagers, and the intranet to improve awareness. security. While an increasing amount of data about fault conditions is

gathered in a substation, a more intelligent alarm In a smart grid, a great improvement is that the settings management and processing system, of protective relays can be remotely modified in real time to adapt to changes in the grid configuration. A such as an expert system, should be developed to find the smart substation will serve as an intelligent unit of root cause of the fault. Traditionally, these common devices, special protective schemes (SPS) to improve the such as battery chargers, UPS systems, and fire alarm reliability of the power grid. Advanced protective relay systems, alarm a fault condition locally; but unless a algorithms based on travelling waves are under substation visit is performed, the fault may go undetected for development. extended periods. Ignoring these faults could cause more

catastrophic failures to occur.D. Data Management and Visualization

F. Diagnosis and PrognosisIn a smart substation, widely deployed decentralized applications require a strong distributed database Fast diagnosis and prognosis are necessary in a smart sub- management system, which will manage and share all station, and several technologies have been produced to data in the substation and communicate with other achieve this. Online asset condition monitoring based on communication units such as the control centers and advanced sensor technology provides stable operation and other substations by just publishing the data to the reduces the re- pair time. Expert system based fault communication network with the publishersubscriber diagnosis technology provides intelligent maintenance and infrastructure. All the data from the PMU units, relays, management of devices in a substation.fault recorders, power quality monitors, and equipment

monitors should be efficiently managed and displayed. G. Advanced Interfaces with Distributed ResourcesReal-time data visualization provides the operators with Smart substations should provide advanced power

electronics and control interfaces for renewable energy and a clear picture of the current operation status of the local demand response resources so that they can be integrated substation as well as the grid through distributed into the power grid on a large scale at the sub transmission intelligence.level. By incorporating microgrids, the substation can deliver quality power to customers in a manner that the E. Monitoring and Alarmingpower supply degrades gracefully after a major commercial outage, as opposed to a catastrophic loss of power, allowing Advances in modern communications enable remote more of the installations to continue operations. Smart operators to be informed immediately of equipment

Fig. 2. Interaction among smart transmission grid, generation, and distribution.

18

make protective relaying to be the last line of defense, 3) Coordination: The smart substation should be ready and not the only defense as it is today; quickly restore the find it easy to communicate and coordinate with other sub- faulty, damaged, or compromised sections of the system stations and control centers. Adaption of protection and during an emergency; and therefore enhance dynamic control schemes should be achieved under coordination of and static utilization and maintain the reliability and control centers to improve the security of the whole power security of the transmission system. grid.

. Advanced Transmission Facility Maintenance 4) Self-healing: The smart substation is able to reconfigure itself dynamically to recover from attacks, natural

In the smart transmission networks, live-line disasters, blackouts, or network component failures.maintenance can be used to clean and deice conductors, The main functions of a smart substation are summarized as clean and lubricate moving parts that open and close, follows:replace spacer/dampers, disconnect/connect breakers, tighten or replace bolts, and install sensors and A. Smart Sensing and Measurementmeasuring devices. Advanced maintenance and power line condition monitoring technologies allow for In a smart substation, all measurement signals will be time prioritized equipment ranking, condition based stamped with high accuracy by using a global positioning maintenance, prevention programs, smart equipment system (GPS) signal. The RTU function will be replaced by replacement programs, and right-of-way maintenance. a PMU in the future. The traditional electromechanical This reduces catastrophic failures and maintenance costs, current transformer (CT) and potential transformer (PT) will and improves the overall reliability of the transmission be replaced by an optical or electronic CT and PT whose system. advantages include wide bandwidth, high accuracy of

measurement, and low maintenance costs. Computational . Extreme Event Facility Hardening System intelligence technology will be incorporated in the sensing

and measurement circuits to reduce the burden of An extreme event facility hardening system is able to communications.identify potential extreme contingencies that are not readily identifiable from a single cause, develop various B. Communicationsextreme event scenarios (e.g., floods, extreme weather, etc.), develop modular equipment designs for lines and Each smart substation has its own high-speed local area novel system configuration to manage failures, and network (LAN) which ties all measurement units and local enable rapid system restoration under catastrophic applications together. Each smart substation also has a server events. that connects to the higher level communication network via

a router. A smart substation should be based on a self-V. SMART SUBSTATIONS healing communication network to significantly improve the

reliability of monitoring and control of substations. Based on The smart substation concept is built on the existing intelligent and ubiquitous IT techniques, proposed a comprehensive automation technologies of substations. It prototype platform of smart substations that provides a should enable more reliable and efficient monitoring, compatible connection interface for various wired and operation, control, protection, and maintenance of the wireless communication capabilities, flexible networking for equipment and apparatus installed in the substations. wired and wireless topologies, un- interruptible SCADA From the operation viewpoint, a smart substation must network. If existing wired (serial bus) networks have a rapidly respond and provide increased operator safety. To fault or accident, then the ubiquitous network re- configures achieve these goals, the major characteristics of a smart itself to bypass or detour around the fault in the local substation shall include the following. substation.

1) Digitalization: The smart substation provides a unique The communication protocol of a smart substation should be and compatible platform for fast and reliable sensing, standardized and open. A good option is the IEC 61850 measurement, communication, control, protection, and standard, which provides an open interface not only among maintenance of all the equipment and apparatus installed the intelligent electronic devices (IEDs) inside a substation, in a variety of substations. All of these tasks can be done but also between substations and between substations and in the digital form, which allows for easy connection control centers. This improves the interoperability of with control centers and business units. communication networks significantly.

2) Autonomy: The smart substation is autonomous. The C. Autonomous Control and Adaptive Protectionoperation of the smart substation does not depend upon the control centers and other substations, but they can A smart substation should contain fully intelligent communicate with each other to increase the efficiency decentralized controllers for auto-restoration, remedial and stability of power transmission. Within a substation, actions, or predictive actions or normal optimization. the operation of individual components and devices is Traditional automatic voltage/Var controllers based on local also autonomous to ensure fast and reliable response, measurement information in a substation will be coordinated especially under emergency conditions. by control centers. Voltage instability conditions can be

assessed much faster based on local PMU measurement

D

E

19

information. Further, the results of voltage stability status changes and trips. For example, smart substations can assessment calculations can be directly incorporated into provide immediate alarm warnings to authorized users via remedial action schemes to improve the power system cell phones, pagers, and the intranet to improve awareness. security. While an increasing amount of data about fault conditions is

gathered in a substation, a more intelligent alarm In a smart grid, a great improvement is that the settings management and processing system, of protective relays can be remotely modified in real time to adapt to changes in the grid configuration. A such as an expert system, should be developed to find the smart substation will serve as an intelligent unit of root cause of the fault. Traditionally, these common devices, special protective schemes (SPS) to improve the such as battery chargers, UPS systems, and fire alarm reliability of the power grid. Advanced protective relay systems, alarm a fault condition locally; but unless a algorithms based on travelling waves are under substation visit is performed, the fault may go undetected for development. extended periods. Ignoring these faults could cause more

catastrophic failures to occur.D. Data Management and Visualization

F. Diagnosis and PrognosisIn a smart substation, widely deployed decentralized applications require a strong distributed database Fast diagnosis and prognosis are necessary in a smart sub- management system, which will manage and share all station, and several technologies have been produced to data in the substation and communicate with other achieve this. Online asset condition monitoring based on communication units such as the control centers and advanced sensor technology provides stable operation and other substations by just publishing the data to the reduces the re- pair time. Expert system based fault communication network with the publishersubscriber diagnosis technology provides intelligent maintenance and infrastructure. All the data from the PMU units, relays, management of devices in a substation.fault recorders, power quality monitors, and equipment

monitors should be efficiently managed and displayed. G. Advanced Interfaces with Distributed ResourcesReal-time data visualization provides the operators with Smart substations should provide advanced power

electronics and control interfaces for renewable energy and a clear picture of the current operation status of the local demand response resources so that they can be integrated substation as well as the grid through distributed into the power grid on a large scale at the sub transmission intelligence.level. By incorporating microgrids, the substation can deliver quality power to customers in a manner that the E. Monitoring and Alarmingpower supply degrades gracefully after a major commercial outage, as opposed to a catastrophic loss of power, allowing Advances in modern communications enable remote more of the installations to continue operations. Smart operators to be informed immediately of equipment

Fig. 2. Interaction among smart transmission grid, generation, and distribution.

20

substations should have the capability to operate in the particular type of work. The actual control process may require a few iterations among the three types of actions.

islanding mode taking into account the transmission capacity, load demand, and stability limit, and provide Fig. 2 also shows the generation and distribution systems mechanisms for seamlessly transitioning to islanding that will be equipped with distributed intelligent agents for operation. local decisions as well as interactions with peer agents and

the control center through the communication infrastructure. Under a disturbance in the generation or distribution system, H. Real-Time Modelinglocal decisions may be made for a fast response and central decisions are necessary for global control, especially for A real-time model of substations should be built for severe disturbance. Mean- while, the interactions with other better control inside and outside a smart substation. In peer agents at various sites in generation, transmission order to produce a reliable and consistent real-time network devices, substations, and distribution are highly model for a substation, the substation level topology desired for a regionally optimal decision. Details of this processor will build the substation topology while the interactive, decentralized architecture shall be the subject of state estimator at the substation level will estimate the possible future research.substation states to provide a more reliable and full view

of the substation. Development and implementation of the proposed integration framework demands a concerted effort to apply and extend the existing technologies through initiatives in Previous work focusing on the distributed state the near future, while promoting forward-looking research estimation has already provided the idea of building the and development to solve underlying critical issues in the substation-level state estimator and related filter long term to ensure economic prosperity and environmental technology. health. To achieve this goal, government agencies, utility executives, energy policy makers, and technology providers VI. INTEGRATION FRAMEWORKmust agree on a common vision and take action to accelerate the process towards final deployment. Given the scale of the The integration framework of the above three effort required and the enormity of the challenges ahead, components as well as the future generation and collaboration among different sectors is essential and should distribution can be briefly illustrated in Fig. 2. Under the be developed through various channels in order to ensure general framework of the smart transmission grid with and accelerate the success of realizing the smart the advanced communication infrastructure, the transmission grid.backbone of the integration is the distributed intelligence

at the smart transmission networks and substations, VII. CONCLUSIONwhich can assist with making decisions based on local

information to reduce the work load of the control center. This paper has presented a unique vision of the next-Meanwhile, the control center oversees the entire system generation smart transmission grids. It aims to promote and sends the system-level decisions, such as various technology innovation to achieve an affordable, reliable, and control actions, to remote devices or substations. Also, sustainable delivery of electricity. With a common the intelligent agents at transmission network devices or digitalized platform, the smart transmission grids will enable substations may interact with neighbor agents to achieve increased flexibility in control, operation, and expansion; broader information in order to make improved allow for embedded intelligence, essentially foster the decisions without extensive communication back to the resilience and sustainability of the grids; and eventually control center. In short, the actual control action will be a benefit the customers with lower costs, improved services, combination of local decisions from the distributed and increased convenience. This paper presents the major intelligent agents, central decisions from the smart features and functions of the smart transmission grids in control center, and the “regional” decision based on the detail through three interactive, smart components: smart information exchange among peer substations and control centers, smart transmission networks, and smart network devices. Each type of action shall have a substations. different response time and is most efficient for a

The author has completed his B.E., (EEE) from University of Madras and ME(Electrical Machines) from PSG College of Technology, Coimbatore, Tamil Nadu, and MBA (HRM) from IGNOU, New Delhi and PhD (Wearable Electronics) from Anna University, Chennai. He has both teaching and industrial experience of 14 years. At present he is working as Associate Professor in the Department of Electrical & Electronics Engg. He has got 11 research projects from various Government funding agencies. He has published 32 Technical papers in reputed National and International Journal and presented 65 research articles in International and National Conferences. He has received YOUNG ENGINEER AWARD from Institution of Engineers, India. He

is a member of various National & International Technical bodies like ISTE, IETE, TSI, BMSI, ISSS, SESI, SSI & TAI. His areas of specializations are Wearable Electronics and Renewable Energy Systems. His contact email: [email protected] 21

Sandia National Laboratories has developed an which provides a more accurate measurement of the power experimental “smart outlet” that autonomously measures, potentially available to drive the loads, allowing the outlets monitors and controls electrical loads with no connection to better adapt to changing energy needs and production.to a centralized computer or system. The goal of the smart

Similar technology could be built into energy-intensive outlet and similar innovations is to make the power grid appliances and connected to a home monitoring system, more distributed and intelligent, capable of reconfiguring allowing the homeowner greater control of energy use. itself as conditions change. Decentralizing power What is different about the smart outlet is that distributed generation and controls would allow the grid to evolve into autonomous control allows a homeowner with little a more collaborative and responsive collection of technical expertise to manage loads and the utility to microgrids, which could function individually as an island manage loads with less hands-on, and costly, human or collectively as part of a hierarchy or other organized intervention.system.

Utilities currently use mostly fossil fuels and nuclear “A more distributed architecture can also be more reliable reactors to generate base load electric power, the amount because it reduces the possibility of a single-point failure. needed to meet the minimum requirements of power users. Problems with parts of the system can be routed around or Utilities know how much power they need based on dropped on and off the larger grid system as the need decades of usage data, so they can predict demand under arises,” said smart outlet co-inventor Anthony Lentine. normal conditions.Such flexibility could make more use of variable output

energy resources such as wind and solar because devices “With the increased use of variable renewable resources, such as the smart outlet can vary their load demand to such as wind and solar, we need to develop new ways to compensate for variations in energy production. “This new manage the grid in the presence of a significant generation distributed, sensor-aware, intelligent control architecture, that can no longer supply arbitrary power on demand,” of which the smart outlet is a key component, could also Lentine said. “The smart outlet is a small, localized identify malicious control actions and prevent their approach to solving that problem.”propagation throughout the grid, enhancing the grid's cyber

security profile,” Lentine said.The research was supported by Laboratory Directed Research and Development (LDRD), Sandia National Anatomy of a smart outletLaboratories, U.S. Department of Energy under contract DE-AC04-94AL85000, LDRD Project Number 130752,

The outlet includes four receptacles, each with titled “Scalable microgrid for a safe, secure, efficient and

voltage/current sensing; actuation (switching); a computer cost effective electric power infrastructure.”

for implementing the controls; and an Ethernet bridge for communicating with other outlets and sending data to a Editor's Note: collection computer.

The outlet measures power usage and the direction of power flow, which is normally one-way, but could be bi-directional if something like a photovoltaic system is connected to send power onto the grid. Bi-directional monitoring and control could allow each location with its own energy production, such as photovoltaic or wind, to become an “island” when the main power grid goes down. For Sandia news media contact: Stephanie Holinka, Currently, that rarely occurs due to the lack of equipment to prevent power from flowing back toward the grid.

The outlet also measures real power and reactive power,

Sandia National Laboratories is a multi-program laboratory operated by Sandia Corporation, a wholly owned subsidiary of Lockheed Martin company, for the U.S. Department of Energy's National Nuclear Security Administration. With main facilities in Albuquerque, N.M., and Livermore, Calif., Sandia has major R&D responsibilities in national security, energy and environmental technologies and economic competitiveness.

[email protected]


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substations should have the capability to operate in the particular type of work. The actual control process may require a few iterations among the three types of actions.

islanding mode taking into account the transmission capacity, load demand, and stability limit, and provide Fig. 2 also shows the generation and distribution systems mechanisms for seamlessly transitioning to islanding that will be equipped with distributed intelligent agents for operation. local decisions as well as interactions with peer agents and

the control center through the communication infrastructure. Under a disturbance in the generation or distribution system, H. Real-Time Modelinglocal decisions may be made for a fast response and central decisions are necessary for global control, especially for A real-time model of substations should be built for severe disturbance. Mean- while, the interactions with other better control inside and outside a smart substation. In peer agents at various sites in generation, transmission order to produce a reliable and consistent real-time network devices, substations, and distribution are highly model for a substation, the substation level topology desired for a regionally optimal decision. Details of this processor will build the substation topology while the interactive, decentralized architecture shall be the subject of state estimator at the substation level will estimate the possible future research.substation states to provide a more reliable and full view

of the substation. Development and implementation of the proposed integration framework demands a concerted effort to apply and extend the existing technologies through initiatives in Previous work focusing on the distributed state the near future, while promoting forward-looking research estimation has already provided the idea of building the and development to solve underlying critical issues in the substation-level state estimator and related filter long term to ensure economic prosperity and environmental technology. health. To achieve this goal, government agencies, utility executives, energy policy makers, and technology providers VI. INTEGRATION FRAMEWORKmust agree on a common vision and take action to accelerate the process towards final deployment. Given the scale of the The integration framework of the above three effort required and the enormity of the challenges ahead, components as well as the future generation and collaboration among different sectors is essential and should distribution can be briefly illustrated in Fig. 2. Under the be developed through various channels in order to ensure general framework of the smart transmission grid with and accelerate the success of realizing the smart the advanced communication infrastructure, the transmission grid.backbone of the integration is the distributed intelligence

at the smart transmission networks and substations, VII. CONCLUSIONwhich can assist with making decisions based on local

information to reduce the work load of the control center. This paper has presented a unique vision of the next-Meanwhile, the control center oversees the entire system generation smart transmission grids. It aims to promote and sends the system-level decisions, such as various technology innovation to achieve an affordable, reliable, and control actions, to remote devices or substations. Also, sustainable delivery of electricity. With a common the intelligent agents at transmission network devices or digitalized platform, the smart transmission grids will enable substations may interact with neighbor agents to achieve increased flexibility in control, operation, and expansion; broader information in order to make improved allow for embedded intelligence, essentially foster the decisions without extensive communication back to the resilience and sustainability of the grids; and eventually control center. In short, the actual control action will be a benefit the customers with lower costs, improved services, combination of local decisions from the distributed and increased convenience. This paper presents the major intelligent agents, central decisions from the smart features and functions of the smart transmission grids in control center, and the “regional” decision based on the detail through three interactive, smart components: smart information exchange among peer substations and control centers, smart transmission networks, and smart network devices. Each type of action shall have a substations. different response time and is most efficient for a

The author has completed his B.E., (EEE) from University of Madras and ME(Electrical Machines) from PSG College of Technology, Coimbatore, Tamil Nadu, and MBA (HRM) from IGNOU, New Delhi and PhD (Wearable Electronics) from Anna University, Chennai. He has both teaching and industrial experience of 14 years. At present he is working as Associate Professor in the Department of Electrical & Electronics Engg. He has got 11 research projects from various Government funding agencies. He has published 32 Technical papers in reputed National and International Journal and presented 65 research articles in International and National Conferences. He has received YOUNG ENGINEER AWARD from Institution of Engineers, India. He

is a member of various National & International Technical bodies like ISTE, IETE, TSI, BMSI, ISSS, SESI, SSI & TAI. His areas of specializations are Wearable Electronics and Renewable Energy Systems. His contact email: [email protected] 21

Sandia National Laboratories has developed an which provides a more accurate measurement of the power experimental “smart outlet” that autonomously measures, potentially available to drive the loads, allowing the outlets monitors and controls electrical loads with no connection to better adapt to changing energy needs and production.to a centralized computer or system. The goal of the smart

Similar technology could be built into energy-intensive outlet and similar innovations is to make the power grid appliances and connected to a home monitoring system, more distributed and intelligent, capable of reconfiguring allowing the homeowner greater control of energy use. itself as conditions change. Decentralizing power What is different about the smart outlet is that distributed generation and controls would allow the grid to evolve into autonomous control allows a homeowner with little a more collaborative and responsive collection of technical expertise to manage loads and the utility to microgrids, which could function individually as an island manage loads with less hands-on, and costly, human or collectively as part of a hierarchy or other organized intervention.system.

Utilities currently use mostly fossil fuels and nuclear “A more distributed architecture can also be more reliable reactors to generate base load electric power, the amount because it reduces the possibility of a single-point failure. needed to meet the minimum requirements of power users. Problems with parts of the system can be routed around or Utilities know how much power they need based on dropped on and off the larger grid system as the need decades of usage data, so they can predict demand under arises,” said smart outlet co-inventor Anthony Lentine. normal conditions.Such flexibility could make more use of variable output

energy resources such as wind and solar because devices “With the increased use of variable renewable resources, such as the smart outlet can vary their load demand to such as wind and solar, we need to develop new ways to compensate for variations in energy production. “This new manage the grid in the presence of a significant generation distributed, sensor-aware, intelligent control architecture, that can no longer supply arbitrary power on demand,” of which the smart outlet is a key component, could also Lentine said. “The smart outlet is a small, localized identify malicious control actions and prevent their approach to solving that problem.”propagation throughout the grid, enhancing the grid's cyber

security profile,” Lentine said.The research was supported by Laboratory Directed Research and Development (LDRD), Sandia National Anatomy of a smart outletLaboratories, U.S. Department of Energy under contract DE-AC04-94AL85000, LDRD Project Number 130752,

The outlet includes four receptacles, each with titled “Scalable microgrid for a safe, secure, efficient and

voltage/current sensing; actuation (switching); a computer cost effective electric power infrastructure.”

for implementing the controls; and an Ethernet bridge for communicating with other outlets and sending data to a Editor's Note: collection computer.

The outlet measures power usage and the direction of power flow, which is normally one-way, but could be bi-directional if something like a photovoltaic system is connected to send power onto the grid. Bi-directional monitoring and control could allow each location with its own energy production, such as photovoltaic or wind, to become an “island” when the main power grid goes down. For Sandia news media contact: Stephanie Holinka, Currently, that rarely occurs due to the lack of equipment to prevent power from flowing back toward the grid.

The outlet also measures real power and reactive power,

Sandia National Laboratories is a multi-program laboratory operated by Sandia Corporation, a wholly owned subsidiary of Lockheed Martin company, for the U.S. Department of Energy's National Nuclear Security Administration. With main facilities in Albuquerque, N.M., and Livermore, Calif., Sandia has major R&D responsibilities in national security, energy and environmental technologies and economic competitiveness.

[email protected]


22

Dear Solar Friends:We need to understand with evidence that what kind of subsidies or tax rebate is given to Chinese suppliers (by its Following is our experience while setting up industry government) for poly silicon, wafers, cells, Panels, glass, related to power, steel and cement industry. Solar aluminium and such raw materials at various stages of Photovoltaics (SPV) industry is new, but, unfortunately,

manufacture or value addition.the system failed to address the earlier known key issues of good manufacturing processes, good Industry

The multiple taxation (i.e. in INDIA, sales tax becomes a promoters with good teamwork, tax (mis) administration cost and an immediate cash out, which is a hit on working and high working capital needs with unviable high capital which comes at a high rate of interest). So, we need to interest rates, hence, INDIA is obviously EXPENSIVE compare the scale up disadvantages vis a vis small companies and can never be LOW COST COUNTRY for Solar PV. (who have low overheads and well scattered) needs a proper However, cheap labour in Steel, power and cement address.industry gave an edge, but, solar PV can not find a place

for the same as the "Labour cost component" is an The SEZ or FTZ stupidity needs a Clear address. Small insignificant number.companies end up in satisfying tax authorities due to small margins and crash in price but, can't think on research or Scaling done by Moser Baer, Indo Solar is a complete product development or improvement.failure including Solyndra, LDK solar, Q cells etc.

India needs an uniform manufacturing policy with a simple The raw material supply chain and the control on price, tax administration to avoid duplicacy of work or multiple manufacturing process, logistics, taxation, interest on taxing procedures, CENVAT claim settlement which in turn high working capital in INDIA are the key deterrents.


blocks working capital and the Tax compliance during and the real manufacturing competence.March end, which, virtually brings down the productivity as The devil called "Tax Compliance with various ill CHINA govt. may be supporting subsidy, but, Europe is not interpretations for categories viz. rubber, glass, because we can't ask poor farmer to bear the tax rebates of aluminum, cells, wafers, import concessions, duty Industry, rather, we need to find cost reduction in every stage drawback / DEPB issues, VAT, work tax, local taxes, "Concept to Commissioning" including project award costs Octroi limits, SEZ compliance, expensive overheads due by bringing transparency of project awards or order to expensive SEZ land for manufacturing, etc" are the placement by Private companies to component manufacturers major set back in solar or such innovative business to avoid SOFT costs or corrupt practices, if any.products.

Currency devaluation needs a proper hedging strategy for the New Manufacturing policy does not address these WELL import of raw material with good forward contract pricing, KNOWN tax (mis) administration and the wastage of but, is always has a risk associated with it apart from its manpower in doing compliance on paper rather than associated costs which need recovery. "finding new ways or research or to be competitive in the world". For the time being, till the consolidation takes place, it may

be prudent to allow import of good quality Tier 1 PV panels Can WE, the Industry leaders, CII, Government Babus manufactured in China with a mandatory JV between a Tier 1 (all concerned ministries at State and Centre Govt. level PV Panel company and a Tier 1 / Tier 2 INDIAN panel with open mind with a little Solar Industry knowledge) manufacturing company with a 2.5% commission to the take the serious note of these issues, "though late" and INDIAN Panel manufacturing company, thus, we can ensure we are nowhere near GST consensus!! low cost project execution of NVVNL and assure

replacement of panels in case of failure during 25 years of Who has to bell the CAT with such gigantic and Warranty period, which is a project risk (no power generation cascading problems, which needs a SIMPLE COMMON till the replacement of defective panels, if the panels were to SENSE to address these issues , which has become a rare come from China), with necessary stock piling at the stores or commodity or UNCOMMON. FTZ storage yard of the INDIAN panel manufacturing

company so that Inventory is assured at short notice.Wake up and let us address these issues and let us not ask SUBSIDY from Government (i.e. begging / robbing the Disclaimer: "The data collection from the web site shall indemnify the

author or KK NESAR or the concerned for any inaccuracy, omissions or Common Man or poor Farmer) rather streamline errors or commissions as per the necessary acts"procedures and reduce the overheads in tax compliance

and concentrate on the technology, supply management

23

The author is a Gold Medalist from SLN College of Engineering, Gulbarga University. Industrial work

experience over 23 years with PSU, MNCs. He had worked for: Tungabharda Steel Products Ltd, Hospet

from 1988 to 1995. Executed engineering of 21 Hydro Mechanical Equipment projects. Deputed to Japan

for 5 months as part of UNIDO program to become JICA participant-1994. He introduced CAD in TSPL

with software programs for design of Gates, Hoists and Cranes. He was deputed to TSPL Hyderabad branch

to assist business development of Steel Plant Equipments. With SMS Demag India Ltd, German MNC), he

engineered Steel Melt Shop equipments of Jindal Vijay Nagar Steel Plant. Apart from being the Head of

Secondary refining equipments viz VD, VOD, RH, RHOB, SMS equipments, he supported the pre-bid and

business development activities thru ICB of SMS Demag Secondary refining equipments. Visited SMS Demag, Duisburg on

company assignments

ALSTOM Portugal / India (French MNC) hired him as a Consultant and Part of Management team to launch Hydro

Mechanical Equipment in India in their Baroda factory. Prepared Business plans, Export support (1ME,Owenfalls ,Uganda),

tendering support to realize and launch Omkareshwar Project. Visited ALSTOM Lisbon, France, Grenoble on assignments and

important missions. He was a Project Manager of Omkareshwar HME (24 ME) and Implementation Manager to rebuild

(15ME) Alstom Baroda factory to manufacture Hydro turbines, Generators and HME to cater to their Indian and Export

Markets. He visited USA, Russia for special equipment evaluations, purchase and installations. He was the Project Director of

Nam Ngum, Laos HME project (10ME).

Established KK NESAR PROJECT PRIVATE LIMITED to execute renewable energy projects on EPC basis with a

collaborative business approach with Indian specific needs.

His contact email: [email protected]

22

Dear Solar Friends:We need to understand with evidence that what kind of subsidies or tax rebate is given to Chinese suppliers (by its Following is our experience while setting up industry government) for poly silicon, wafers, cells, Panels, glass, related to power, steel and cement industry. Solar aluminium and such raw materials at various stages of Photovoltaics (SPV) industry is new, but, unfortunately,

manufacture or value addition.the system failed to address the earlier known key issues of good manufacturing processes, good Industry

The multiple taxation (i.e. in INDIA, sales tax becomes a promoters with good teamwork, tax (mis) administration cost and an immediate cash out, which is a hit on working and high working capital needs with unviable high capital which comes at a high rate of interest). So, we need to interest rates, hence, INDIA is obviously EXPENSIVE compare the scale up disadvantages vis a vis small companies and can never be LOW COST COUNTRY for Solar PV. (who have low overheads and well scattered) needs a proper However, cheap labour in Steel, power and cement address.industry gave an edge, but, solar PV can not find a place

for the same as the "Labour cost component" is an The SEZ or FTZ stupidity needs a Clear address. Small insignificant number.companies end up in satisfying tax authorities due to small margins and crash in price but, can't think on research or Scaling done by Moser Baer, Indo Solar is a complete product development or improvement.failure including Solyndra, LDK solar, Q cells etc.

India needs an uniform manufacturing policy with a simple The raw material supply chain and the control on price, tax administration to avoid duplicacy of work or multiple manufacturing process, logistics, taxation, interest on taxing procedures, CENVAT claim settlement which in turn high working capital in INDIA are the key deterrents.


blocks working capital and the Tax compliance during and the real manufacturing competence.March end, which, virtually brings down the productivity as The devil called "Tax Compliance with various ill CHINA govt. may be supporting subsidy, but, Europe is not interpretations for categories viz. rubber, glass, because we can't ask poor farmer to bear the tax rebates of aluminum, cells, wafers, import concessions, duty Industry, rather, we need to find cost reduction in every stage drawback / DEPB issues, VAT, work tax, local taxes, "Concept to Commissioning" including project award costs Octroi limits, SEZ compliance, expensive overheads due by bringing transparency of project awards or order to expensive SEZ land for manufacturing, etc" are the placement by Private companies to component manufacturers major set back in solar or such innovative business to avoid SOFT costs or corrupt practices, if any.products.

Currency devaluation needs a proper hedging strategy for the New Manufacturing policy does not address these WELL import of raw material with good forward contract pricing, KNOWN tax (mis) administration and the wastage of but, is always has a risk associated with it apart from its manpower in doing compliance on paper rather than associated costs which need recovery. "finding new ways or research or to be competitive in the world". For the time being, till the consolidation takes place, it may

be prudent to allow import of good quality Tier 1 PV panels Can WE, the Industry leaders, CII, Government Babus manufactured in China with a mandatory JV between a Tier 1 (all concerned ministries at State and Centre Govt. level PV Panel company and a Tier 1 / Tier 2 INDIAN panel with open mind with a little Solar Industry knowledge) manufacturing company with a 2.5% commission to the take the serious note of these issues, "though late" and INDIAN Panel manufacturing company, thus, we can ensure we are nowhere near GST consensus!! low cost project execution of NVVNL and assure

replacement of panels in case of failure during 25 years of Who has to bell the CAT with such gigantic and Warranty period, which is a project risk (no power generation cascading problems, which needs a SIMPLE COMMON till the replacement of defective panels, if the panels were to SENSE to address these issues , which has become a rare come from China), with necessary stock piling at the stores or commodity or UNCOMMON. FTZ storage yard of the INDIAN panel manufacturing

company so that Inventory is assured at short notice.Wake up and let us address these issues and let us not ask SUBSIDY from Government (i.e. begging / robbing the Disclaimer: "The data collection from the web site shall indemnify the

author or KK NESAR or the concerned for any inaccuracy, omissions or Common Man or poor Farmer) rather streamline errors or commissions as per the necessary acts"procedures and reduce the overheads in tax compliance

and concentrate on the technology, supply management

23

The author is a Gold Medalist from SLN College of Engineering, Gulbarga University. Industrial work

experience over 23 years with PSU, MNCs. He had worked for: Tungabharda Steel Products Ltd, Hospet

from 1988 to 1995. Executed engineering of 21 Hydro Mechanical Equipment projects. Deputed to Japan

for 5 months as part of UNIDO program to become JICA participant-1994. He introduced CAD in TSPL

with software programs for design of Gates, Hoists and Cranes. He was deputed to TSPL Hyderabad branch

to assist business development of Steel Plant Equipments. With SMS Demag India Ltd, German MNC), he

engineered Steel Melt Shop equipments of Jindal Vijay Nagar Steel Plant. Apart from being the Head of

Secondary refining equipments viz VD, VOD, RH, RHOB, SMS equipments, he supported the pre-bid and

business development activities thru ICB of SMS Demag Secondary refining equipments. Visited SMS Demag, Duisburg on

company assignments

ALSTOM Portugal / India (French MNC) hired him as a Consultant and Part of Management team to launch Hydro

Mechanical Equipment in India in their Baroda factory. Prepared Business plans, Export support (1ME,Owenfalls ,Uganda),

tendering support to realize and launch Omkareshwar Project. Visited ALSTOM Lisbon, France, Grenoble on assignments and

important missions. He was a Project Manager of Omkareshwar HME (24 ME) and Implementation Manager to rebuild

(15ME) Alstom Baroda factory to manufacture Hydro turbines, Generators and HME to cater to their Indian and Export

Markets. He visited USA, Russia for special equipment evaluations, purchase and installations. He was the Project Director of

Nam Ngum, Laos HME project (10ME).

Established KK NESAR PROJECT PRIVATE LIMITED to execute renewable energy projects on EPC basis with a

collaborative business approach with Indian specific needs.

His contact email: [email protected]

24

“India continues to depend on fossil fuels to power its spectacular economic growth. However, this growth is unsustainable as it comes at a great cost of complete environmental degradation. Renewable Energy (RE) sources form a tiny portion (less than 10%) of India's overall Energy consumption today. India has to quickly get RE sources to play a major role in servicing the energy needs of its population, if it has to realize the ambition of 9% growth of the economy, year-on-year. Despite the best efforts of all the relevant stakeholders, the adoption of RE sources by consumer communities in India is poor. One way to accelerate adoption of RE sources would be bake in technology innovation, policy making and new business models into a single unified theme, as successfully demonstrated by a few countries in the World. This article will focus on one such case; renewable energy growth in California, in the US to underline the importance of conscientious coordinated efforts to accelerate adoption of RE sources by consumers”

policies adopted to promote RE sources and technology innovations that are taking place in the field of clean energy that could possibly accelerate adoption of RE sources. However, policies and technology innovation alone, although important, are insufficient to create a sustainable demand for RE sources from consumer communities in India. One has to take a holistic approach of combining innovative business models to the mix and look at the intersection area of policies, innovation and business models to create a sustainable niche. Of course, the pace of adoption varies for each product category and cannot be extrapolated to all the RE sources as it is; but the concepts can be used as a guide to debate strategies that could be adopted by all stakeholders to accelerate adoption of clean energy sources.

India's Energy Story and Market opportunities for RenewablesThe main sources of renewable energy in India are biomass, biogas, solar, wind and hydro power. Renewable sources contribute about 5% of the total power production in India. India is also the world's highest biogas user and is fifth in the world in terms of both wind power as well as photovoltaic production.

Out of the energy installed base of about 150,000 MW in India about 66% is thermal energy (85 % of which is coal based) followed by hydro with 26%, nuclear with 3% and renewable energy with 5%. Of the current total installed renewable energy base, wind constitutes 69%, followed by small hydro (19%), biomass (co-generation, 11.5%), Introduction

Renewable Energy (RE) sources contribute hardly 10% (excluding large hydro projects) of the total power generated in India. Out of this 10%, one or two states in the country contribute majority of power generated through RE (Wind + Solar) sources. The rest of the country put together accounts for less than 5% of clean power [9, 10]. If India has to meet its ambitious waste-to energy (0.42%), and solar (0.03%). India's growth plans, the energy availability of the country needs renewable energy resource potential is significant with to grow at a much faster pace that it is today. This growth Wind energy, biomass, Solar and small hydropower cannot be met by fossil fuels alone. At some point the representing the technologies with the largest potential contribution of Renewable energy sources must form a [11, 12]substantial portion of the overall Energy bucket. The reasons are well known and well documented a) Wind could potentially account for up to 45,000 MW Environmental concerns, depleting fossil fuel resources, [9] of energy per year. The majority of wind resources are excessive dependency on Oil imports etc. that it hardly found in coastal states, where geographic and climatic merits repetition. However, adoption of Renewable conditions are favorable for wind farms.energy has really not caught on among the consumer communities in India. Unless a substantial number of

b) India has an estimated hydropower potential of citizens adopts RE sources, the costs of producing energy from RE sources will continue to remain high and thereby 84,000 MW, of which 15,000 MW can be generated creating a downward spiral of poor patronage among the from small hydropower (SHP) [9, 10, 11].public for RE adoption for its daily use.

c) India also receives abundant solar radiation There are several publications available on the proactive


thFig 1: Progress of Renewable Energy Programme 11 five year plans (2010)(in MW)

25

equivalent to over 5,000 trillion kilowatt hours the collateral damage the consumers have to pay for

(kWh) per year [9, 10, and 11]. patronizing these conventional fuels

The three points above are addressed in the reverse order. First d) The approximate potential for biomass

the lack of appreciation of the permanent damage to ecology utilization (largely co-generation) is estimated at and environment caused by fossil fuels - There have been

several studies that has documented the havoc created by about 22,000 MW. Waste-to-energy potential is unbridled use of fossil fuels by the world community (one approximately 2,700 MW. It has been estimated that study highlighted in the figure 2, below), that the ill effects of

India produces 139 million tons of surplus biomass wanton use of fossil fuels are understood by many today. For

every year, which can produce about 16,000 MW of instance, in the US during a 9 year period, economic damages electricity [9]. caused by natural disasters (Climate changes mainly due to use

of fossil fuels) amounted to $ 575 Billion.

As can be observed, potential for renewable energy in Fig -2: Economic damages caused by natural disasters for the India is enormous but only a miniscule quantity has been period from 1996 to 2005 exceeded US $ 575 Billion.tapped. High capital costs, uncertain payback, poor

financial health of Electricity boards, evolving Source: Translated based on graphic in: Munich RE Group, evacuation facilities and, most importantly, poor Edit ion Wissen, Topics GEO, Jahresrueckblick patronage of renewable energy sources by consumers Naturkatastrophen 2005, p. 13could be plausible reasons for sector to the modest

performance of this sector.While, it's true that consumers need to be continuously informed about the damage caused by fossil fuels, a reasonable This paper will try to examine the issue of poor patronage number of people are well informed about the consequences of of renewable energy sources by consumers in India and reckless use of these fuels. Hence lack of knowledge of the recommend mitigation strategies, which can be considered destruction caused by fossil fuels may not be an overriding to grow the sector.factor for poor adoption of renewable fuels.That leaves two other reasons, namely, high cost of electricity Three major reasons, among others, for poor adoption of from renewable energy source and lack of integrated approach clean energy sources could bein encouraging adoption of clean energy.

1. Cost of power from renewable sources being Costs of electricity from renewable sources are presently high. substantially high vis-à-vis fossil fuels (thanks to distorted Electricity from solar thermal plants currently costs around Rs subsidy structure) and no tax on carbon emission as yet.14/Kwh depending on the location of the plant and the amount of sunshine it receives. But with improvements in the

2. The policies and incentive structures for support performance of plants, economies of scale and better sites, solar thermal electricity could soon be cheaper than coal ( as demonstrated by Germany), and also generate huge amounts of reliable, clean electricity. Solid oxide fuel cells generate electricity that is 20% cheaper than electricity generated by fossil fuels in the US. The cost of wind energy has declined from 40 cents per kilowatt-hour to less than 5 cents. The cost of electricity from the sun, through photovoltaic has dropped from more than $1/kilowatt-hour to nearly 20cents/kilowatt-hour today. And ethanol fuel costs have plummeted from $4 per gallon in the early 1980s to $1.20 today. Similarly, there are several examples, from the world-over, of tariffs of electricity from renewable sources being on par with the rates of electricity generated from fossil fuels. the growth of renewable energy adoption are not

Economies of scale, continuing tax incentives, penal taxes on integrated and not aligned to motivate the consumers to emissions and regulatory concerns will tilt the scale in favour

switch to these eco-friendly sources of renewable sources in India.

Probably, the most important area that will have the highest 3. Lack of appreciation of the devastation that impact on the adoption of renewable energy sources in India fossil fuels will eventually wreak to the environment and

24

“India continues to depend on fossil fuels to power its spectacular economic growth. However, this growth is unsustainable as it comes at a great cost of complete environmental degradation. Renewable Energy (RE) sources form a tiny portion (less than 10%) of India's overall Energy consumption today. India has to quickly get RE sources to play a major role in servicing the energy needs of its population, if it has to realize the ambition of 9% growth of the economy, year-on-year. Despite the best efforts of all the relevant stakeholders, the adoption of RE sources by consumer communities in India is poor. One way to accelerate adoption of RE sources would be bake in technology innovation, policy making and new business models into a single unified theme, as successfully demonstrated by a few countries in the World. This article will focus on one such case; renewable energy growth in California, in the US to underline the importance of conscientious coordinated efforts to accelerate adoption of RE sources by consumers”

policies adopted to promote RE sources and technology innovations that are taking place in the field of clean energy that could possibly accelerate adoption of RE sources. However, policies and technology innovation alone, although important, are insufficient to create a sustainable demand for RE sources from consumer communities in India. One has to take a holistic approach of combining innovative business models to the mix and look at the intersection area of policies, innovation and business models to create a sustainable niche. Of course, the pace of adoption varies for each product category and cannot be extrapolated to all the RE sources as it is; but the concepts can be used as a guide to debate strategies that could be adopted by all stakeholders to accelerate adoption of clean energy sources.

India's Energy Story and Market opportunities for RenewablesThe main sources of renewable energy in India are biomass, biogas, solar, wind and hydro power. Renewable sources contribute about 5% of the total power production in India. India is also the world's highest biogas user and is fifth in the world in terms of both wind power as well as photovoltaic production.

Out of the energy installed base of about 150,000 MW in India about 66% is thermal energy (85 % of which is coal based) followed by hydro with 26%, nuclear with 3% and renewable energy with 5%. Of the current total installed renewable energy base, wind constitutes 69%, followed by small hydro (19%), biomass (co-generation, 11.5%), Introduction

Renewable Energy (RE) sources contribute hardly 10% (excluding large hydro projects) of the total power generated in India. Out of this 10%, one or two states in the country contribute majority of power generated through RE (Wind + Solar) sources. The rest of the country put together accounts for less than 5% of clean power [9, 10]. If India has to meet its ambitious waste-to energy (0.42%), and solar (0.03%). India's growth plans, the energy availability of the country needs renewable energy resource potential is significant with to grow at a much faster pace that it is today. This growth Wind energy, biomass, Solar and small hydropower cannot be met by fossil fuels alone. At some point the representing the technologies with the largest potential contribution of Renewable energy sources must form a [11, 12]substantial portion of the overall Energy bucket. The reasons are well known and well documented a) Wind could potentially account for up to 45,000 MW Environmental concerns, depleting fossil fuel resources, [9] of energy per year. The majority of wind resources are excessive dependency on Oil imports etc. that it hardly found in coastal states, where geographic and climatic merits repetition. However, adoption of Renewable conditions are favorable for wind farms.energy has really not caught on among the consumer communities in India. Unless a substantial number of

b) India has an estimated hydropower potential of citizens adopts RE sources, the costs of producing energy from RE sources will continue to remain high and thereby 84,000 MW, of which 15,000 MW can be generated creating a downward spiral of poor patronage among the from small hydropower (SHP) [9, 10, 11].public for RE adoption for its daily use.

c) India also receives abundant solar radiation There are several publications available on the proactive


thFig 1: Progress of Renewable Energy Programme 11 five year plans (2010)(in MW)

25

equivalent to over 5,000 trillion kilowatt hours the collateral damage the consumers have to pay for

(kWh) per year [9, 10, and 11]. patronizing these conventional fuels

The three points above are addressed in the reverse order. First d) The approximate potential for biomass

the lack of appreciation of the permanent damage to ecology utilization (largely co-generation) is estimated at and environment caused by fossil fuels - There have been

several studies that has documented the havoc created by about 22,000 MW. Waste-to-energy potential is unbridled use of fossil fuels by the world community (one approximately 2,700 MW. It has been estimated that study highlighted in the figure 2, below), that the ill effects of

India produces 139 million tons of surplus biomass wanton use of fossil fuels are understood by many today. For

every year, which can produce about 16,000 MW of instance, in the US during a 9 year period, economic damages electricity [9]. caused by natural disasters (Climate changes mainly due to use

of fossil fuels) amounted to $ 575 Billion.

As can be observed, potential for renewable energy in Fig -2: Economic damages caused by natural disasters for the India is enormous but only a miniscule quantity has been period from 1996 to 2005 exceeded US $ 575 Billion.tapped. High capital costs, uncertain payback, poor

financial health of Electricity boards, evolving Source: Translated based on graphic in: Munich RE Group, evacuation facilities and, most importantly, poor Edit ion Wissen, Topics GEO, Jahresrueckblick patronage of renewable energy sources by consumers Naturkatastrophen 2005, p. 13could be plausible reasons for sector to the modest

performance of this sector.While, it's true that consumers need to be continuously informed about the damage caused by fossil fuels, a reasonable This paper will try to examine the issue of poor patronage number of people are well informed about the consequences of of renewable energy sources by consumers in India and reckless use of these fuels. Hence lack of knowledge of the recommend mitigation strategies, which can be considered destruction caused by fossil fuels may not be an overriding to grow the sector.factor for poor adoption of renewable fuels.That leaves two other reasons, namely, high cost of electricity Three major reasons, among others, for poor adoption of from renewable energy source and lack of integrated approach clean energy sources could bein encouraging adoption of clean energy.

1. Cost of power from renewable sources being Costs of electricity from renewable sources are presently high. substantially high vis-à-vis fossil fuels (thanks to distorted Electricity from solar thermal plants currently costs around Rs subsidy structure) and no tax on carbon emission as yet.14/Kwh depending on the location of the plant and the amount of sunshine it receives. But with improvements in the

2. The policies and incentive structures for support performance of plants, economies of scale and better sites, solar thermal electricity could soon be cheaper than coal ( as demonstrated by Germany), and also generate huge amounts of reliable, clean electricity. Solid oxide fuel cells generate electricity that is 20% cheaper than electricity generated by fossil fuels in the US. The cost of wind energy has declined from 40 cents per kilowatt-hour to less than 5 cents. The cost of electricity from the sun, through photovoltaic has dropped from more than $1/kilowatt-hour to nearly 20cents/kilowatt-hour today. And ethanol fuel costs have plummeted from $4 per gallon in the early 1980s to $1.20 today. Similarly, there are several examples, from the world-over, of tariffs of electricity from renewable sources being on par with the rates of electricity generated from fossil fuels. the growth of renewable energy adoption are not

Economies of scale, continuing tax incentives, penal taxes on integrated and not aligned to motivate the consumers to emissions and regulatory concerns will tilt the scale in favour

switch to these eco-friendly sources of renewable sources in India.

Probably, the most important area that will have the highest 3. Lack of appreciation of the devastation that impact on the adoption of renewable energy sources in India fossil fuels will eventually wreak to the environment and

26

would be embracing an integrated approach to policy, From 1998 to December 31, 2006, the Energy Commission's innovation and business models. Emerging Renewables Program funded grid-connected, The main objective of this paper is to study the success solar/photovoltaic electricity systems under 30 kilowatts on stories in adoption of clean energy by consumers in homes and businesses in the investor-owned utilities' service California and how they have successfully integrated the areas, wind systems up to 50 kW in size, fuel cells (using a policy, innovation and business models to accelerate the renewable fuel), and solar thermal electric. The California growth of renewable energy sources. Public Utilities Commission (CPUC) funded larger self-

generation projects for businesses. Since 2007, the Emerging The key questions that need to explored are: Renewables Program has focused on providing incentives

toward the purchase and installation of small wind systems and 1. What are the lessons to be learnt by observing the fuel cells using a renewable fuel. Statewide effort known adoption of clean energy sources by consumer collectively as 'Go Solar California' and has set a goal of communities in California, US? Can these lessons be 3,000 MW of solar generating capacity with a budget of $3.35 transportable to Indian context? billion. There have been several such policies under the

Existing Renewables program, Emerging Renewables program and New Renewables program over the years that 2. If India has to gather momentum in the adoption have aggressively promoted the adoption of Renewable of RE sources, what could be some of the policy Energy sources.recommendations that need to be considered from the case

studies around the world?Achieving these renewable energy goals became even more important with the enactment of AB 32), the California Global

3. How coming together of enabling policy Warming Solutions Act of 2006. This legislation sets

environment, technology innovation and newer business aggressive greenhouse gas reduction goals for the state and its

models aid in adoption of RE sources?achievements will depend in part on the success of renewable energy programs.

Case study of Successful adoption of RE These provide strong incentives for adoption of growth of sources by the State of California, USArenewable energy technologies in CA.

State of California in the US is a leader in adoption of . California improved the processes for licensing Renewable Energy sources and has successfully got the

renewable projects. State agencies to create comprehensive combination of policies, innovation and business models plans to prioritize regional renewable projects based on an right to accelerate use of Renewable sources. There are area's renewable resource potentialseveral valuable lessons to be learnt by India and other

countries from the achievements of California. Key drivers Impact: Renewable Energy projects had 'quicker time to that helped the state of California weremarket cycle' and went live sooner than before. State of PoliciesCalifornia attracted 60% of venture-capital funding in the California (CA) has adopted ambitious environmental and entire US. This implies that State of California attracted more energy policy goals, including reducing state-wide CHG clean-technology money that the rest of the country put emissions to 1990 levels by 2020 and to 20% of 1990 levels together.by 2050 . In 2002, California established its Renewables

Portfolio Standard (RPS) Program, with the goal of 2. Establish a coordinated approach with US Federal increasing the percentage of renewable energy in the state's agencies to reduce the time and expense for developing electricity mix to 20 percent by 2017. The law requires renewable energy on federally-owned California landpublicly owned utilities to set their own RPS goals Impact: Reduce potential delays and avoid cost over-runs.recognizing the intent of the Legislature to attain a target of

20 percent of California retail sales of electricity from 3. To streamline the application process for renewable renewable energy by 2010 and setting a renewable energy energy development, the Energy Commission will identify goal of 33 percent by 2020 for California. renewable energy development areas and develop a best management practices manual with the goal of reducing the RPS applies to all electricity retailers in the state including application time in half for specific renewable projects 50 MW publicly owned utilities, investor-owned utilities, and greater proposed in the designated renewable energy electricity service providers, and community choice development areas.aggregators. All of these entities must adopt the new RPS

goals of 20 percent of retails sales from renewables by the Impact: Faster clearances, more clean-tech funding, end of 2013, 25 percent by the end of 2016, and the 33 repeatable process leading to steep learning curve, best percent requirement being met by the end of 2020.practices incorporated in the execution.

The Energy Commission's Renewable Energy Program 4. Streamlined permitting and environmental review has provided market-based incentives for new and process. This should also help reduce the time and uncertainty existing utility-scale facilities powered by renewable normally associated with licensing new renewable projectsenergy. It also offers consumer rebates for installing new

wind and solar renewable energy systems. Impact: Reduce cost and time overrun

1

27

26

would be embracing an integrated approach to policy, From 1998 to December 31, 2006, the Energy Commission's innovation and business models. Emerging Renewables Program funded grid-connected, The main objective of this paper is to study the success solar/photovoltaic electricity systems under 30 kilowatts on stories in adoption of clean energy by consumers in homes and businesses in the investor-owned utilities' service California and how they have successfully integrated the areas, wind systems up to 50 kW in size, fuel cells (using a policy, innovation and business models to accelerate the renewable fuel), and solar thermal electric. The California growth of renewable energy sources. Public Utilities Commission (CPUC) funded larger self-

generation projects for businesses. Since 2007, the Emerging The key questions that need to explored are: Renewables Program has focused on providing incentives

toward the purchase and installation of small wind systems and 1. What are the lessons to be learnt by observing the fuel cells using a renewable fuel. Statewide effort known adoption of clean energy sources by consumer collectively as 'Go Solar California' and has set a goal of communities in California, US? Can these lessons be 3,000 MW of solar generating capacity with a budget of $3.35 transportable to Indian context? billion. There have been several such policies under the

Existing Renewables program, Emerging Renewables program and New Renewables program over the years that 2. If India has to gather momentum in the adoption have aggressively promoted the adoption of Renewable of RE sources, what could be some of the policy Energy sources.recommendations that need to be considered from the case

studies around the world?Achieving these renewable energy goals became even more important with the enactment of AB 32), the California Global

3. How coming together of enabling policy Warming Solutions Act of 2006. This legislation sets

environment, technology innovation and newer business aggressive greenhouse gas reduction goals for the state and its

models aid in adoption of RE sources?achievements will depend in part on the success of renewable energy programs.

Case study of Successful adoption of RE These provide strong incentives for adoption of growth of sources by the State of California, USArenewable energy technologies in CA.

State of California in the US is a leader in adoption of . California improved the processes for licensing Renewable Energy sources and has successfully got the

renewable projects. State agencies to create comprehensive combination of policies, innovation and business models plans to prioritize regional renewable projects based on an right to accelerate use of Renewable sources. There are area's renewable resource potentialseveral valuable lessons to be learnt by India and other

countries from the achievements of California. Key drivers Impact: Renewable Energy projects had 'quicker time to that helped the state of California weremarket cycle' and went live sooner than before. State of PoliciesCalifornia attracted 60% of venture-capital funding in the California (CA) has adopted ambitious environmental and entire US. This implies that State of California attracted more energy policy goals, including reducing state-wide CHG clean-technology money that the rest of the country put emissions to 1990 levels by 2020 and to 20% of 1990 levels together.by 2050 . In 2002, California established its Renewables

Portfolio Standard (RPS) Program, with the goal of 2. Establish a coordinated approach with US Federal increasing the percentage of renewable energy in the state's agencies to reduce the time and expense for developing electricity mix to 20 percent by 2017. The law requires renewable energy on federally-owned California landpublicly owned utilities to set their own RPS goals Impact: Reduce potential delays and avoid cost over-runs.recognizing the intent of the Legislature to attain a target of

20 percent of California retail sales of electricity from 3. To streamline the application process for renewable renewable energy by 2010 and setting a renewable energy energy development, the Energy Commission will identify goal of 33 percent by 2020 for California. renewable energy development areas and develop a best management practices manual with the goal of reducing the RPS applies to all electricity retailers in the state including application time in half for specific renewable projects 50 MW publicly owned utilities, investor-owned utilities, and greater proposed in the designated renewable energy electricity service providers, and community choice development areas.aggregators. All of these entities must adopt the new RPS

goals of 20 percent of retails sales from renewables by the Impact: Faster clearances, more clean-tech funding, end of 2013, 25 percent by the end of 2016, and the 33 repeatable process leading to steep learning curve, best percent requirement being met by the end of 2020.practices incorporated in the execution.

The Energy Commission's Renewable Energy Program 4. Streamlined permitting and environmental review has provided market-based incentives for new and process. This should also help reduce the time and uncertainty existing utility-scale facilities powered by renewable normally associated with licensing new renewable projectsenergy. It also offers consumer rebates for installing new

wind and solar renewable energy systems. Impact: Reduce cost and time overrun

1

27

28

While Policies and technology innovation are necessary ingredients for success but they alone are not sufficient to ensure sustainable growth. Changing customer preference needs changing business models as well. Only when new business models align with policies and innovation, one could expect certainty of 5. The Energy Commission to certify and verify

growth and adoption. There are several examples of this eligible renewable energy resources procured by publicly phenomena from other industries like Mobile telephony in owned utilities and to monitor their compliance with the India, that helped accelerate the adoption of mobile phone in RPS. The Energy Commission will continue to certify and India from a mere 25,000 users in 1997 to 800 Million users in verify RPS procurements by retail sellers. 2011.

Impact: Effective Governance and monitoring Renewable companies in the State of California have started to mechanism in place with rewards and penalties built in to offer 'asset-light', pay per use business model to consumers influence desired, positive outcomeswherein the customers pay just for the electricity consumed Source: The California Energy Commissionand not for the cost of the equipment or the installations. Moreover, the cost of the electricity produced from these 'in-Technology Innovationsitu' boxes are 20% cheaper than what the customers pay to California's proactive, investor friendly renewable energy electric utilities that supply power from fossil fuels. Also, the policies, coupled with huge inflow of venture capital funds cost of electricity produced by renewable sources is have spawned several clean-tech companies that are maintained at current price levels for a period of 10 years, even working on the cutting edge of technology research. Not though the cost of electricity from fossil fuels may escalate only companies that work with traditional renewables during the 10 year period. Apart from these benefits, the (Solar, Wind) are growing but also new ones, which focus renewable energy provider will handle all the maintenance and on sparingly used technologies like fuel cells, are growing service issues of operating the distributed energy boxes at no at faster pace. One such company which holds huge extra cost to the customer. Such innovative business model promise has made significant progress in Solid oxide fuel eliminates any downside risks for the customers while there's cells without using any expensive precious metals, huge upside benefits from adopting clean energy sources at corrosive acids, or molten materials but by using widely their homes, thereby accelerating the adoption of renewable available, low cost ceramic materials. energy sources.

Impact: Over 21,000 MW of Renewable Energy contracts signed in California since 2002Intersection of Technology Innovation, Proactive Policies and

producing clean, reliable power at the c u s t o m e r ' s p r e m i s e s . S u c h breakthrough in technology was possible because of the enabling environment present in the state of California that encouraged innovation, rewarded risk taking and celebrated entrepreneurs who successfully circumvented challenges posed by material science”New Business Models

“Technologies that use fuel cells operate in a distributed environment, power generation at the point of consumption, eliminate the cost, complexity, interdependencies, and inefficiencies associated with transmission and distribution networks thereby

Swaminathan Mani is a PhD scholar of University of Petroleum and Energy Studies. He has done his BE (Hons.) from BITS Pilani and MBA from Bharathidasan University, Trichy. His contact email address: [email protected].

Dr. Tarun Dhingra is a former ICSSR doctoral research fellow at MNNIT Allahabad, is a faculty of Strategic Management at University of Petroleum and Energy Studies (UPES), Dehra Dun. He has published several papers in national and international journals of repute and is reviewer of interscience journal. Dr. Dhingra has conducted Management Development Programs (MDP) on strategic management for many companies in the Energy sector. He can be reached at [email protected] 29

“Everyone in business is under constant pressure to produce ever-increasing volumes of work to generate more revenue using existing staff. Also, to gain competitive advantage, corporate growth and financial stability organizations take multiple steps and adopt various methodologies. Outsourcing Information Technology allows a business to focus on business objectives and streamlining the business operations. More importantly it provides access to wide range of specific skilled resources and access to high-quality services at a cost-effective price; thus improving the quality without any hassles for continually updating their technology stack and resources. The key objective of the IT solution is to minimize human interface in commercial processes to avoid human errors and chances of willful mistakes. Information Technology (IT) plays a vital role in contributing significantly in the power reforms process, particularly in the areas of Aligning Business to IT, Customer relationship Management (CRM), Billing, Portal & Business Intelligence, Enterprise Applications, Emerging Models like Cloud and SaaS, Business process automation, revenue and commercial management, distribution system automation, and ATC loss reduction”

competitive market, they are discovering thatthey can cut costs and maintain quality by relying more on outside service providers for activities viewedas supplementary to their core business. At many instances Business is not aligned with IT.

Introduction This isbecause of multiple factors pertaining to the understanding of IT and its advantages.

The Indian power sector is hovering towards growth. Ministry of Power has taken conscious efforts towards There is tremendous diversity found in the IT application power sector reforms which received a momentum in the landscape, infrastructure used, businessmodels, etc. The early 1990s with the opening up of generation to private global IT market for the power distribution sector provides a players this was driven by the shortfall in supply. This wide range oftechnologies and solutions. These solutions was followed by structural changes that included address the entire business value chain in powerdistribution establishment of independent regulatory commissions from setting up distribution network and service connection and the intent to unbundled State Electricity Boards to distribution loadmanagement, delivery of power and (SEBs) in some states. The third phase of reforms customer facing processes. IT is a large and important entity focused on operational changes including improving the atglobal utilities. Usually there is a CIO or a similar executive distribution through activities like Accelerated Power reporting directly to the CEO who isresponsible for the Development and Reforms Program (APDRP), which effective performance of the organization's IT assets.began as the Accelerated Power Development Program (APDP). Information Technology has been used as a tool to address a

specific issue or two at a time and not as along-term, holistic The reforms process was further reinforced by laws and strategy. While Indian IT sector has helped numerous policies with an aim to bring in commercial viability organizations around the globederive substantial benefits and competition into the sector, the most notable being from application of IT, there is plenty of room for IT the Electricity Act 2003. APDRP will also include application within thepower sector in India. There is a need to adoption of IT applications for meter reading, billing & look at the global practices in IT adoption in the power sectorcollection; energy accounting & auditing; MIS; so that India can benefit from it.redressal of consumer grievances; establishment of IT enabled consumer service centers etc. Information Technology (IT) can offer a framework for an Aligning Information Technology to business is to assure efficient power system, providing the technical design of a the investments in IT generate business values future and help management address commercial and and mitigate risks. The implementation of a set of best IT behavioral issues. The technicaldesign of an IT landscape, practices is key to delivering good business can help monitor and control electricity real-time with fine services that meet organizational needs and vice versa. granularity,construct a robust, self-healing grid detect Also, as some of the organizations seek to outages, load, congestion and shortfall, and establish twowayenhance their competitive positions in an increasingly


28

While Policies and technology innovation are necessary ingredients for success but they alone are not sufficient to ensure sustainable growth. Changing customer preference needs changing business models as well. Only when new business models align with policies and innovation, one could expect certainty of 5. The Energy Commission to certify and verify

growth and adoption. There are several examples of this eligible renewable energy resources procured by publicly phenomena from other industries like Mobile telephony in owned utilities and to monitor their compliance with the India, that helped accelerate the adoption of mobile phone in RPS. The Energy Commission will continue to certify and India from a mere 25,000 users in 1997 to 800 Million users in verify RPS procurements by retail sellers. 2011.

Impact: Effective Governance and monitoring Renewable companies in the State of California have started to mechanism in place with rewards and penalties built in to offer 'asset-light', pay per use business model to consumers influence desired, positive outcomeswherein the customers pay just for the electricity consumed Source: The California Energy Commissionand not for the cost of the equipment or the installations. Moreover, the cost of the electricity produced from these 'in-Technology Innovationsitu' boxes are 20% cheaper than what the customers pay to California's proactive, investor friendly renewable energy electric utilities that supply power from fossil fuels. Also, the policies, coupled with huge inflow of venture capital funds cost of electricity produced by renewable sources is have spawned several clean-tech companies that are maintained at current price levels for a period of 10 years, even working on the cutting edge of technology research. Not though the cost of electricity from fossil fuels may escalate only companies that work with traditional renewables during the 10 year period. Apart from these benefits, the (Solar, Wind) are growing but also new ones, which focus renewable energy provider will handle all the maintenance and on sparingly used technologies like fuel cells, are growing service issues of operating the distributed energy boxes at no at faster pace. One such company which holds huge extra cost to the customer. Such innovative business model promise has made significant progress in Solid oxide fuel eliminates any downside risks for the customers while there's cells without using any expensive precious metals, huge upside benefits from adopting clean energy sources at corrosive acids, or molten materials but by using widely their homes, thereby accelerating the adoption of renewable available, low cost ceramic materials. energy sources.

Impact: Over 21,000 MW of Renewable Energy contracts signed in California since 2002Intersection of Technology Innovation, Proactive Policies and

producing clean, reliable power at the c u s t o m e r ' s p r e m i s e s . S u c h breakthrough in technology was possible because of the enabling environment present in the state of California that encouraged innovation, rewarded risk taking and celebrated entrepreneurs who successfully circumvented challenges posed by material science”New Business Models

“Technologies that use fuel cells operate in a distributed environment, power generation at the point of consumption, eliminate the cost, complexity, interdependencies, and inefficiencies associated with transmission and distribution networks thereby

Swaminathan Mani is a PhD scholar of University of Petroleum and Energy Studies. He has done his BE (Hons.) from BITS Pilani and MBA from Bharathidasan University, Trichy. His contact email address: [email protected].

Dr. Tarun Dhingra is a former ICSSR doctoral research fellow at MNNIT Allahabad, is a faculty of Strategic Management at University of Petroleum and Energy Studies (UPES), Dehra Dun. He has published several papers in national and international journals of repute and is reviewer of interscience journal. Dr. Dhingra has conducted Management Development Programs (MDP) on strategic management for many companies in the Energy sector. He can be reached at [email protected] 29

“Everyone in business is under constant pressure to produce ever-increasing volumes of work to generate more revenue using existing staff. Also, to gain competitive advantage, corporate growth and financial stability organizations take multiple steps and adopt various methodologies. Outsourcing Information Technology allows a business to focus on business objectives and streamlining the business operations. More importantly it provides access to wide range of specific skilled resources and access to high-quality services at a cost-effective price; thus improving the quality without any hassles for continually updating their technology stack and resources. The key objective of the IT solution is to minimize human interface in commercial processes to avoid human errors and chances of willful mistakes. Information Technology (IT) plays a vital role in contributing significantly in the power reforms process, particularly in the areas of Aligning Business to IT, Customer relationship Management (CRM), Billing, Portal & Business Intelligence, Enterprise Applications, Emerging Models like Cloud and SaaS, Business process automation, revenue and commercial management, distribution system automation, and ATC loss reduction”

competitive market, they are discovering thatthey can cut costs and maintain quality by relying more on outside service providers for activities viewedas supplementary to their core business. At many instances Business is not aligned with IT.

Introduction This isbecause of multiple factors pertaining to the understanding of IT and its advantages.

The Indian power sector is hovering towards growth. Ministry of Power has taken conscious efforts towards There is tremendous diversity found in the IT application power sector reforms which received a momentum in the landscape, infrastructure used, businessmodels, etc. The early 1990s with the opening up of generation to private global IT market for the power distribution sector provides a players this was driven by the shortfall in supply. This wide range oftechnologies and solutions. These solutions was followed by structural changes that included address the entire business value chain in powerdistribution establishment of independent regulatory commissions from setting up distribution network and service connection and the intent to unbundled State Electricity Boards to distribution loadmanagement, delivery of power and (SEBs) in some states. The third phase of reforms customer facing processes. IT is a large and important entity focused on operational changes including improving the atglobal utilities. Usually there is a CIO or a similar executive distribution through activities like Accelerated Power reporting directly to the CEO who isresponsible for the Development and Reforms Program (APDRP), which effective performance of the organization's IT assets.began as the Accelerated Power Development Program (APDP). Information Technology has been used as a tool to address a

specific issue or two at a time and not as along-term, holistic The reforms process was further reinforced by laws and strategy. While Indian IT sector has helped numerous policies with an aim to bring in commercial viability organizations around the globederive substantial benefits and competition into the sector, the most notable being from application of IT, there is plenty of room for IT the Electricity Act 2003. APDRP will also include application within thepower sector in India. There is a need to adoption of IT applications for meter reading, billing & look at the global practices in IT adoption in the power sectorcollection; energy accounting & auditing; MIS; so that India can benefit from it.redressal of consumer grievances; establishment of IT enabled consumer service centers etc. Information Technology (IT) can offer a framework for an Aligning Information Technology to business is to assure efficient power system, providing the technical design of a the investments in IT generate business values future and help management address commercial and and mitigate risks. The implementation of a set of best IT behavioral issues. The technicaldesign of an IT landscape, practices is key to delivering good business can help monitor and control electricity real-time with fine services that meet organizational needs and vice versa. granularity,construct a robust, self-healing grid detect Also, as some of the organizations seek to outages, load, congestion and shortfall, and establish twowayenhance their competitive positions in an increasingly


30

client's team after each stage of projectpower exchange with a large number of renewable this is the only model which fulfills this need. If the client generators, storage devices and devices such aswants to upgrade their existing system and migrate to the plug-in hybrid vehicles. In terms of commercial and latest technology then in such cases also the onsite model is behavioral issues, IT can help identify theft andpreferable, if the client is able to afford the changes that will losses, provide choice to customers, allow for new be required in their existing set-up to accommodate the pricing mechanisms such as Time-of-Day (ToD) orservice provider's onsite team.real-time, enable much improved transparency and

conservation, and provide the structure forOffsite Delivery Model - In Offsite Delivery Model, the sophisticated billing, collection and information service provider works in a nearby vicinity of themanagement.client i.e. the service provider will be located within the same

Outsourcing & IT the paradigm Shift city/country as that of the client. This will prove beneficial to the client as well as to the service provider as the service provider will have a better understanding of the client's need The IT industry has evolved over the last fifty years,

resulting from the fact of having an almost similar changed paradigms constantly from single, hugelybackground as farexpensive mainframe systems back in the 1960s and as the geographical factor is concerned.1970s; through the rise of the personal computer

in the 1980s then associated explosion in distributed Offshore Delivery Model In Offshore Delivery Model, the computing in the 1990s and server sprawl; andentire project is accomplished at the service provider's through to the new era of consolidation back onto offshore development center, which is located in a different centralized platforms. IT Outsourcing has evolvedcountry. The client will be dealing directly with the offshore from generic sourcing delivery models of Onsite, team. The service provider will have no face-to-face Offshore, Offsite, Hybrid to the NextGen IT of utilizinginteraction withthe client during the entire process once the Cloud computing, mobility or green sustainability.initial interaction with the client regarding their

Onsite Delivery Models requirements and expectations are over. Of course as the - Onsite Delivery Model is project progresses, both the parties will be communicating usually adopted where the scope of the project isregularly through other means of communication so as to repetitive and open-ended as is the case with most of the clear off any doubts that mayprocess re-engineering related services. Alsoarise.where the client is not very clear regarding the end

results required by them or where there is aHybrid model Combination of two or more delivery models possibility of fluctuating requirements during the course (Onsite-Offsite/ Onsite-Offshore) isof the project, Onsite is a preferred delivery model. preferred in software development outsourcing as the In some cases where direct and continuous client offshore factor results in huge cost savings asparticipation and interaction is desired after each and well as the total cost of ownership of the infrastructure and every step involved like getting the approval of the 31

30

client's team after each stage of projectpower exchange with a large number of renewable this is the only model which fulfills this need. If the client generators, storage devices and devices such aswants to upgrade their existing system and migrate to the plug-in hybrid vehicles. In terms of commercial and latest technology then in such cases also the onsite model is behavioral issues, IT can help identify theft andpreferable, if the client is able to afford the changes that will losses, provide choice to customers, allow for new be required in their existing set-up to accommodate the pricing mechanisms such as Time-of-Day (ToD) orservice provider's onsite team.real-time, enable much improved transparency and

conservation, and provide the structure forOffsite Delivery Model - In Offsite Delivery Model, the sophisticated billing, collection and information service provider works in a nearby vicinity of themanagement.client i.e. the service provider will be located within the same

Outsourcing & IT the paradigm Shift city/country as that of the client. This will prove beneficial to the client as well as to the service provider as the service provider will have a better understanding of the client's need The IT industry has evolved over the last fifty years,

resulting from the fact of having an almost similar changed paradigms constantly from single, hugelybackground as farexpensive mainframe systems back in the 1960s and as the geographical factor is concerned.1970s; through the rise of the personal computer

in the 1980s then associated explosion in distributed Offshore Delivery Model In Offshore Delivery Model, the computing in the 1990s and server sprawl; andentire project is accomplished at the service provider's through to the new era of consolidation back onto offshore development center, which is located in a different centralized platforms. IT Outsourcing has evolvedcountry. The client will be dealing directly with the offshore from generic sourcing delivery models of Onsite, team. The service provider will have no face-to-face Offshore, Offsite, Hybrid to the NextGen IT of utilizinginteraction withthe client during the entire process once the Cloud computing, mobility or green sustainability.initial interaction with the client regarding their

Onsite Delivery Models requirements and expectations are over. Of course as the - Onsite Delivery Model is project progresses, both the parties will be communicating usually adopted where the scope of the project isregularly through other means of communication so as to repetitive and open-ended as is the case with most of the clear off any doubts that mayprocess re-engineering related services. Alsoarise.where the client is not very clear regarding the end

results required by them or where there is aHybrid model Combination of two or more delivery models possibility of fluctuating requirements during the course (Onsite-Offsite/ Onsite-Offshore) isof the project, Onsite is a preferred delivery model. preferred in software development outsourcing as the In some cases where direct and continuous client offshore factor results in huge cost savings asparticipation and interaction is desired after each and well as the total cost of ownership of the infrastructure and every step involved like getting the approval of the 31

32

Abhishek Anand Kalavai is a PhD Scholar University of Petroleum and Energy Studies Dehra Dun. Abhishek is currently pursuing his PhD in management focus on Power sector from University of petroleum and energy studies, Dehra Dun. He is employed with Mahindra Satyam as presales lead for the consulting arm of Mahindra Satyam. He has close to 8 years of IT Industry experience working in the space of Marketing, Presales, Alliances, Sales, Business Development. He has good understanding to the technologies from the business stand point like ERP (SAP, Oracle), BI/DW (SAP-BOBJ, IBM-Cognos, Actuate, Informatica, DataStage), eBusiness Solutions (Microsoft, IBM, BEA), Consulting (ITIL/ITSM, Six Sigma, Theory Of Constraints, EPM Tools, SDLC Process using Agile/Scrum, IT Value Addition Management). Rich experience in building the team from scratch, building teams, training, and team management. Prior to Mahindra Satyam was associated with Yash Technologies Pvt. Ltd. Joined Yash

through campus as Executive Business development and his last role there was as Product Line Manager for the BI Practice. Abhishek has also have managed few alliances for Yash BI practice. Abhishek holds a degree in PGDBM from Dhruva College of Management, Hyderabad.

Dr. Devendra Kumar Punia is a Professor and Head of Department of Information Systems Management, College of Management & Economics Studies (CMES), UPES. Dr. Devendra Kumar Punia is Professor and Head of Department of Information Systems in CMES, UPES. He is responsible for academic planning and monitoring, faculty mentoring, research, consultancy and MDPs, budgeting etc. He is a member of Faculty Research Committee and guiding four doctoral students. He is also member of the Joint Coordination Committee for UPES-IBM alliance.Prior to joining UPES, he was working with FORE School of Management, New Delhi. There apart fromacademics, he also undertook consulting as e-governance expert to DFID funded Bihar governmentproject “Support Programme for Urban Reforms”. He was responsible for defining the IT & e-governance strategy for Urban Local Bodies (ULB) and the Urban Development Department, Govt. of

Bihar, DefineMoUs / Contracts / Service levels; Programme Management for consulting, software development, GISmapping projects. Earlier, he has worked with various organizations like Wipro Consulting Services, IAP Company Limited and UCPL in Government, Telecom, Banking, Utilities and SME domains covering e-Governance, IT Consultancy, Business Analysis, Software Development, Process Consultancy and Project Managementfields. He did his Bachelor of Engineering in Electronics and Telecommunications from MNIT, Jaipur. He has 29

32

Abhishek Anand Kalavai is a PhD Scholar University of Petroleum and Energy Studies Dehra Dun. Abhishek is currently pursuing his PhD in management focus on Power sector from University of petroleum and energy studies, Dehra Dun. He is employed with Mahindra Satyam as presales lead for the consulting arm of Mahindra Satyam. He has close to 8 years of IT Industry experience working in the space of Marketing, Presales, Alliances, Sales, Business Development. He has good understanding to the technologies from the business stand point like ERP (SAP, Oracle), BI/DW (SAP-BOBJ, IBM-Cognos, Actuate, Informatica, DataStage), eBusiness Solutions (Microsoft, IBM, BEA), Consulting (ITIL/ITSM, Six Sigma, Theory Of Constraints, EPM Tools, SDLC Process using Agile/Scrum, IT Value Addition Management). Rich experience in building the team from scratch, building teams, training, and team management. Prior to Mahindra Satyam was associated with Yash Technologies Pvt. Ltd. Joined Yash

through campus as Executive Business development and his last role there was as Product Line Manager for the BI Practice. Abhishek has also have managed few alliances for Yash BI practice. Abhishek holds a degree in PGDBM from Dhruva College of Management, Hyderabad.

Dr. Devendra Kumar Punia is a Professor and Head of Department of Information Systems Management, College of Management & Economics Studies (CMES), UPES. Dr. Devendra Kumar Punia is Professor and Head of Department of Information Systems in CMES, UPES. He is responsible for academic planning and monitoring, faculty mentoring, research, consultancy and MDPs, budgeting etc. He is a member of Faculty Research Committee and guiding four doctoral students. He is also member of the Joint Coordination Committee for UPES-IBM alliance.Prior to joining UPES, he was working with FORE School of Management, New Delhi. There apart fromacademics, he also undertook consulting as e-governance expert to DFID funded Bihar governmentproject “Support Programme for Urban Reforms”. He was responsible for defining the IT & e-governance strategy for Urban Local Bodies (ULB) and the Urban Development Department, Govt. of

Bihar, DefineMoUs / Contracts / Service levels; Programme Management for consulting, software development, GISmapping projects. Earlier, he has worked with various organizations like Wipro Consulting Services, IAP Company Limited and UCPL in Government, Telecom, Banking, Utilities and SME domains covering e-Governance, IT Consultancy, Business Analysis, Software Development, Process Consultancy and Project Managementfields. He did his Bachelor of Engineering in Electronics and Telecommunications from MNIT, Jaipur. He has 29

34

“A smart grid is a digitally enabled electrical grid that gathers, distributes, and acts on information about the behavior of all participants (suppliers and consumers) in order to improve the efficiency, importance, reliability, economics, and sustainability of electricity services”

and in the energy users' homes and offices.

For a century, utility companies have had to send workers out to gather much of the data needed to provide electricity. The workers read meters, look for broken equipment and measure voltage, for example. Most of the devices utilities use to deliver electricity have yet to be automated and

“Smart grid” generally refers to a class of technology computerized. Now, many options and products are being people are using to bring utility electricity delivery systems made available to the electricity industry to modernize it.into the 21st century, using computer-based remote control and automation. These systems are made possible by two- Renewable Energy and the Smart Gridway communication technology and computer processing that has been used for decades in other industries. They are Concerns about climate change have spurred efforts to beginning to be used on electricity networks, from the accelerate the introduction of energy from renewable power plants and wind farms all the way to the consumers sources like wind and solar into electricity supply of electricity in homes and businesses. They offer many industries worldwide. At the same time, formal wholesale benefits to utilities and consumers -- mostly seen in big markets for electricity have become the norm, having now improvements in energy efficiency on the electricity grid been in place for more than ten years in many regions of

the United States and for an even longer time in most industrialized countries of the world. Integrating a substantial amount of renewable energy sources into wholesale electricity markets presents two key challenges.

First, regulatory mechanisms must support the construction of appropriate transmission infrastructure. Because the richest renewable resource potential is often located far from population centers, the inability to site and build adequate transmission lines to interconnect renewable generation to the grid can be a major barrier to the expansion of renewable energy. Sorely-needed transmission expansions are not realized both because their benefits are difficult to quantify and because existing regulatory processes lack suitable means of allocating project costs to those who will benefit. Existing and planned research seeks to address the first problem by creating models of the benefits of


35

transmission expansions under scenarios of high renewable they are creating with their set up to get credits from the energy penetration. Such models must incorporate not only utilities by selling the excess back to them. If you generate the direct effect of new transmission lines on power flows, enough solar power to run your entire household for the but also the responses of market incumbents to the day with some left over, you could then sell the excess increased competition enabled by transmission expansion. back to the utility company. This would show up at the end A second component of research on transmission takes a of the month (or the year) as a credit toward your account. more holistic look at why some jurisdictions have been If you do this often enough, the amount that you receive relatively successful at bringing new transmission will more than offset your bill, eventually you will accrue infrastructure on-line while others. more generated energy than what you are using.

Second, the electricity system must be able to manage the Smart grids are smart not only for those who generate or intermittency of renewable energy sources such as wind use alternate energy sources, but also because it effectively and solar, which cannot be turned on and off at will like teaches about actual energy consumption and often, wastes. fossil fuel power plants. Adequate transmission If it is possible to see exactly how much energy is being infrastructure helps in managing intermittency but is not wasted by looking at a detailed bill, it is easier to find ways sufficient. It is likely that any electricity market with a significant fraction of energy from renewable sources will need to create mechanisms through which electricity consumers can respond to unpredictable (and sometimes highly correlated) changes in electricity supply. The fundamental obstacles to a "smart grid" that would let consumers see the true price of energy and adjust their consumption patterns in response are not technical but regulatory and behavioral. Regulatory bodies have felt the need to "protect" consumers from price volatility. However, it is this very price volatility that can allow consumers to benefit by "buying low and selling high" in the electricity market, in the process creating a genuine demand pull for needed energy storage technologies. A smart grid allows for resources which are renewable but not unlimited to be used more efficiently. The common misconception that people have about wind, water, and solar energy is that

to eliminate that waste.because they come from nature the supply is never ending. However, that is not always the reality, at least not in an The Smart Gridenergy demand sense.

The “grid” amounts to the networks that carry electricity Without a clear method of storing these energy sources, from the plants where it is generated to consumers. The they will more than likely go to waste. A solar panel grid includes wires, substations, transformers, switches and captures energy from the sun during the day when most much more. Much in the way that a “smart” phone these people really do not need as much electricity. Wind energy days means a phone with a computer in it, smart grid is most common and most prevalent at night, again when means “computerizing” the electric utility grid. It includes most people do not need as much. Traditional electrical adding two-way digital communication technology to energy comes into our homes from the outside wires, devices associated with the grid. Each device on the leading to a bill being generated whether any of it is ever network can be given sensors to gather data (power meters, used or not. A smart grid would allow a user to only be voltage sensors, fault detectors, etc.), plus two-way digital billed for actual energy consumption and would show how communication between the device in the field and the much energy is being used and where. utility's network operations center. A key feature of the

smart grid is automation technology that lets the utility adjust and control each individual device or millions of

A smart grid can adapt and switch to alternating power devices from a central location.

sources as needed. This eliminates worry about whether or not the energy will be there or that it will be costing more

The number of applications that can be used on the smart than it should. Current utility set ups place everyone at the

grid once the data communications technology is deployed mercy of the companies that provide the energy - you

is growing as fast as inventive companies can create and either pay what they demand or you are out in the darkness.

produce them. Benefits include enhanced cyber-security, With a smart grid, the energy sources could be mostly self-

handling sources of electricity like wind and solar power generated with the utility company being the last resort for

and even integrating electric vehicles onto the grid. The power.

companies making smart grid technology or offering such A smart grid user could also utilize the extra power that services include technology giants, established

34

“A smart grid is a digitally enabled electrical grid that gathers, distributes, and acts on information about the behavior of all participants (suppliers and consumers) in order to improve the efficiency, importance, reliability, economics, and sustainability of electricity services”

and in the energy users' homes and offices.

For a century, utility companies have had to send workers out to gather much of the data needed to provide electricity. The workers read meters, look for broken equipment and measure voltage, for example. Most of the devices utilities use to deliver electricity have yet to be automated and

“Smart grid” generally refers to a class of technology computerized. Now, many options and products are being people are using to bring utility electricity delivery systems made available to the electricity industry to modernize it.into the 21st century, using computer-based remote control and automation. These systems are made possible by two- Renewable Energy and the Smart Gridway communication technology and computer processing that has been used for decades in other industries. They are Concerns about climate change have spurred efforts to beginning to be used on electricity networks, from the accelerate the introduction of energy from renewable power plants and wind farms all the way to the consumers sources like wind and solar into electricity supply of electricity in homes and businesses. They offer many industries worldwide. At the same time, formal wholesale benefits to utilities and consumers -- mostly seen in big markets for electricity have become the norm, having now improvements in energy efficiency on the electricity grid been in place for more than ten years in many regions of

the United States and for an even longer time in most industrialized countries of the world. Integrating a substantial amount of renewable energy sources into wholesale electricity markets presents two key challenges.

First, regulatory mechanisms must support the construction of appropriate transmission infrastructure. Because the richest renewable resource potential is often located far from population centers, the inability to site and build adequate transmission lines to interconnect renewable generation to the grid can be a major barrier to the expansion of renewable energy. Sorely-needed transmission expansions are not realized both because their benefits are difficult to quantify and because existing regulatory processes lack suitable means of allocating project costs to those who will benefit. Existing and planned research seeks to address the first problem by creating models of the benefits of


35

transmission expansions under scenarios of high renewable they are creating with their set up to get credits from the energy penetration. Such models must incorporate not only utilities by selling the excess back to them. If you generate the direct effect of new transmission lines on power flows, enough solar power to run your entire household for the but also the responses of market incumbents to the day with some left over, you could then sell the excess increased competition enabled by transmission expansion. back to the utility company. This would show up at the end A second component of research on transmission takes a of the month (or the year) as a credit toward your account. more holistic look at why some jurisdictions have been If you do this often enough, the amount that you receive relatively successful at bringing new transmission will more than offset your bill, eventually you will accrue infrastructure on-line while others. more generated energy than what you are using.

Second, the electricity system must be able to manage the Smart grids are smart not only for those who generate or intermittency of renewable energy sources such as wind use alternate energy sources, but also because it effectively and solar, which cannot be turned on and off at will like teaches about actual energy consumption and often, wastes. fossil fuel power plants. Adequate transmission If it is possible to see exactly how much energy is being infrastructure helps in managing intermittency but is not wasted by looking at a detailed bill, it is easier to find ways sufficient. It is likely that any electricity market with a significant fraction of energy from renewable sources will need to create mechanisms through which electricity consumers can respond to unpredictable (and sometimes highly correlated) changes in electricity supply. The fundamental obstacles to a "smart grid" that would let consumers see the true price of energy and adjust their consumption patterns in response are not technical but regulatory and behavioral. Regulatory bodies have felt the need to "protect" consumers from price volatility. However, it is this very price volatility that can allow consumers to benefit by "buying low and selling high" in the electricity market, in the process creating a genuine demand pull for needed energy storage technologies. A smart grid allows for resources which are renewable but not unlimited to be used more efficiently. The common misconception that people have about wind, water, and solar energy is that

to eliminate that waste.because they come from nature the supply is never ending. However, that is not always the reality, at least not in an The Smart Gridenergy demand sense.

The “grid” amounts to the networks that carry electricity Without a clear method of storing these energy sources, from the plants where it is generated to consumers. The they will more than likely go to waste. A solar panel grid includes wires, substations, transformers, switches and captures energy from the sun during the day when most much more. Much in the way that a “smart” phone these people really do not need as much electricity. Wind energy days means a phone with a computer in it, smart grid is most common and most prevalent at night, again when means “computerizing” the electric utility grid. It includes most people do not need as much. Traditional electrical adding two-way digital communication technology to energy comes into our homes from the outside wires, devices associated with the grid. Each device on the leading to a bill being generated whether any of it is ever network can be given sensors to gather data (power meters, used or not. A smart grid would allow a user to only be voltage sensors, fault detectors, etc.), plus two-way digital billed for actual energy consumption and would show how communication between the device in the field and the much energy is being used and where. utility's network operations center. A key feature of the

smart grid is automation technology that lets the utility adjust and control each individual device or millions of

A smart grid can adapt and switch to alternating power devices from a central location.

sources as needed. This eliminates worry about whether or not the energy will be there or that it will be costing more

The number of applications that can be used on the smart than it should. Current utility set ups place everyone at the

grid once the data communications technology is deployed mercy of the companies that provide the energy - you

is growing as fast as inventive companies can create and either pay what they demand or you are out in the darkness.

produce them. Benefits include enhanced cyber-security, With a smart grid, the energy sources could be mostly self-

handling sources of electricity like wind and solar power generated with the utility company being the last resort for

and even integrating electric vehicles onto the grid. The power.

companies making smart grid technology or offering such A smart grid user could also utilize the extra power that services include technology giants, established

36

communication firms and even brand new technology ambitions? One of the most recent examples comes from firms. American Electric Power, which since 1999 has worked

within the Consortium for Electric Reliability Technology Microgrids: Building Blocks of the Smart Solutions (CERTS), a Department of Energy/California

Grid Energy Commission-led group that's concentrated on The term “microgrid” may conjure up images of self- inverter technologies to allow the fast, safe disconnection sufficient military bases and remote outposts, generating and reconnection of microgrids to the larger grid. Modern and consuming power without any connections to the inverters can also allow a microgrid's power to serve as larger electricity grid. After all, backup generators that backup and stabilizer for the outside grid. Pike Research support multiple buildings the bare-bones definition of a has pointed to the CERTS systems as among the first to microgrid are already a mainstay of hospitals, refineries, standardize microgrid-grid interconnections. Will more data centers, semiconductor plants and other institutions such standard connection systems emerge?that can't afford to let the power go down, even for a The Potentialsecond. Such stand-alone microgrids now add up to about

The smart grid is expected to cost about $165 billion over 450 megawatts of commercial and industrial capacity, and the coming years, according to a recent middle-road another 322 megawatts in the campus and institutional estimate from the Electric Power Research Institute. Taking sector, in the U.S., according to Pike Research.

But utilities, as well as their customers and partners, are a larger view, the Galvin Electricity Initiative a nonprofit increasingly looking past microgrids' ability to “island” founded by former Motorola CEO Bob Galvin that is a big themselves to protect from broader power outages, and are proponent of microgrids estimates that the world will need seeking out ways they can use their on-site distributed $6 trillion in grid investment over the next 25 years. What power generation, and demand reduction and management share of that build out will come in the form of microgrids? systems to help the grid at large. Theoretically, these types According to Pike Research, the microgrid market will of microgrids could help the outside grid keep its own grow to about $7.8 billion in cumulative investment by power quality stable, helping entire neighborhoods ride 2015 or so.through disruptions. And at the end of the road, microgrids Where are the next-generation microgrids being built? could sell their generation and demand reduction back to Right now, several microgrid projects are being funded the utilities they usually buy power from, giving would-be with DOE smart grid stimulus grants, including Galvin microgrid operators a whole new set of financial incentives Electricity Initiative's Perfect Power System at the Illinois to help bolster their business cases. Institute of Technology campus in Chicago. Viridity

Energy is involved in two stimulus-funded projects one Microgrids As Toolswith Consolidated Edison in New York City, and another

How do microgrids help utilities manage their smart grid 37

M.R. Menon has more than two decades of experience as a journalist and a writer on

Energy and Environment subjects, interacting with energy sectorsboth conventional as well

as non-conventionalin India and the Kingdom of Bahrain. In the Eighties, he was the

Bahrain Correspondent for 'Middle East Electricity' magazine published by Reeds, U.K. He

also worked as the Media Manager (India) for Washington, DC-based publication 'Business

Times' which promotes India's commercial interests in North America. He was also the

editor and publisher of 'Sun Power', a quarterly renewable energy magazine during 1995-

2002. His contact email address: [email protected]

with PECO at the Philadelphia campus of Drexel University. San Diego Gas & Electric is working on a small-scale microgrid project in Borrego Spring, Calif., but a larger project planned for the University of California at San Diego campus may be reconsidered after it failed to secure DOE funding last fall.

There are more projects that incorporate various concepts that underlie microgrids, including “virtual power plants” that coordinate local distributed generation and demand response resources, and distribution automation systems that apply new technologies to balance grid power. But just what is and isn't a microgrid is a matter of some uncertainty, with definitions shifting as time goes on. Stay tuned for future posts on these distinctions, and other microgrid-related topics including the question of whether it will be utilities or private operators who push them forward the fastest.

The Seven Principal Characteristics of the Smart Grid:

Enables active participation by consumers Consumer choices and increased interaction with the grid bring tangible benefits to both the grid and the environment, while reducing the cost of delivered electricity;

Accommodates all generation and storage options Diverse resources with “plug-and-play” connections multiply the options for electrical generation and storage, including new opportunities for more efficient, cleaner power production;

?

?

?

?

?

?

?

efficient grid maintenance programs result in fewer equipment failures and safer operations;

Anticipates and responds to system disturbances (self-heals) The smart grid will perform continuous self-assessments to detect, analyze, respond to, and as needed, restore grid components or network sections, and

Operates resiliently against attack and natural disaster The grid deters or withstands physical or cyber attack and improves public safety. The deployment of technology solutions that achieve these characteristics will improve how the smart grid is planned, designed, operated, and maintained. These improvementsin each of the key value areas presented abovelead to specific benefits that are enjoyed by all.

The following technology solutions are generally considered when a smart grid implementation plan is developed:

? Advanced Metering Infrastructure (AMI);? Customer Side Systems (CS);? Demand Response (DR);? Distribution Management System/Distribution

Automation (DMS);? Transmission Enhancement Applications (TA);? Asset/System Optimization (AO);? Distributed Energy Resources (DER)? Information and Communications Integration (ICT)

Deploying in Developing Countries Smart grids play a critical role in the deployment of new electricity infrastructure in developing countries and

Enables new products, services, and markets The grid's emerging economies like India. As well as enabling more

open-access market reveals waste and inefficiency and efficient operations, grids can also help to keep downward

helps drive them out of the system while offering new pressure on the cost of electricity. Small "remote? systems consumer choices such as green power products and a new -- not connected to a centralized electricity infrastructure generation of electric vehicles. Reduced transmission and initially employed as a cost-effected approach to rural congestion also leads to more efficient electricity markets;electrification -- could later be connected easily to a

Provides power quality for the digital economy Digital- national or regional infrastructure.grade power quality for those who need it avoids

Smart grids could be used to get electricity to sparsely production and productivity losses, especially in digital-populated areas by enabling a transition from simple, one-device environments;off approaches to electrification (e.g. battery-based

Optimizes asset utilization and operates efficiently household electrification) to community grids that can Desired functionality at minimum cost guides operations then connect to national and regional grids.and allows fuller utilization of assets. More targeted and

36

communication firms and even brand new technology ambitions? One of the most recent examples comes from firms. American Electric Power, which since 1999 has worked

within the Consortium for Electric Reliability Technology Microgrids: Building Blocks of the Smart Solutions (CERTS), a Department of Energy/California

Grid Energy Commission-led group that's concentrated on The term “microgrid” may conjure up images of self- inverter technologies to allow the fast, safe disconnection sufficient military bases and remote outposts, generating and reconnection of microgrids to the larger grid. Modern and consuming power without any connections to the inverters can also allow a microgrid's power to serve as larger electricity grid. After all, backup generators that backup and stabilizer for the outside grid. Pike Research support multiple buildings the bare-bones definition of a has pointed to the CERTS systems as among the first to microgrid are already a mainstay of hospitals, refineries, standardize microgrid-grid interconnections. Will more data centers, semiconductor plants and other institutions such standard connection systems emerge?that can't afford to let the power go down, even for a The Potentialsecond. Such stand-alone microgrids now add up to about

The smart grid is expected to cost about $165 billion over 450 megawatts of commercial and industrial capacity, and the coming years, according to a recent middle-road another 322 megawatts in the campus and institutional estimate from the Electric Power Research Institute. Taking sector, in the U.S., according to Pike Research.

But utilities, as well as their customers and partners, are a larger view, the Galvin Electricity Initiative a nonprofit increasingly looking past microgrids' ability to “island” founded by former Motorola CEO Bob Galvin that is a big themselves to protect from broader power outages, and are proponent of microgrids estimates that the world will need seeking out ways they can use their on-site distributed $6 trillion in grid investment over the next 25 years. What power generation, and demand reduction and management share of that build out will come in the form of microgrids? systems to help the grid at large. Theoretically, these types According to Pike Research, the microgrid market will of microgrids could help the outside grid keep its own grow to about $7.8 billion in cumulative investment by power quality stable, helping entire neighborhoods ride 2015 or so.through disruptions. And at the end of the road, microgrids Where are the next-generation microgrids being built? could sell their generation and demand reduction back to Right now, several microgrid projects are being funded the utilities they usually buy power from, giving would-be with DOE smart grid stimulus grants, including Galvin microgrid operators a whole new set of financial incentives Electricity Initiative's Perfect Power System at the Illinois to help bolster their business cases. Institute of Technology campus in Chicago. Viridity

Energy is involved in two stimulus-funded projects one Microgrids As Toolswith Consolidated Edison in New York City, and another

How do microgrids help utilities manage their smart grid 37

M.R. Menon has more than two decades of experience as a journalist and a writer on

Energy and Environment subjects, interacting with energy sectorsboth conventional as well

as non-conventionalin India and the Kingdom of Bahrain. In the Eighties, he was the

Bahrain Correspondent for 'Middle East Electricity' magazine published by Reeds, U.K. He

also worked as the Media Manager (India) for Washington, DC-based publication 'Business

Times' which promotes India's commercial interests in North America. He was also the

editor and publisher of 'Sun Power', a quarterly renewable energy magazine during 1995-

2002. His contact email address: [email protected]

with PECO at the Philadelphia campus of Drexel University. San Diego Gas & Electric is working on a small-scale microgrid project in Borrego Spring, Calif., but a larger project planned for the University of California at San Diego campus may be reconsidered after it failed to secure DOE funding last fall.

There are more projects that incorporate various concepts that underlie microgrids, including “virtual power plants” that coordinate local distributed generation and demand response resources, and distribution automation systems that apply new technologies to balance grid power. But just what is and isn't a microgrid is a matter of some uncertainty, with definitions shifting as time goes on. Stay tuned for future posts on these distinctions, and other microgrid-related topics including the question of whether it will be utilities or private operators who push them forward the fastest.

The Seven Principal Characteristics of the Smart Grid:

Enables active participation by consumers Consumer choices and increased interaction with the grid bring tangible benefits to both the grid and the environment, while reducing the cost of delivered electricity;

Accommodates all generation and storage options Diverse resources with “plug-and-play” connections multiply the options for electrical generation and storage, including new opportunities for more efficient, cleaner power production;

?

?

?

?

?

?

?

efficient grid maintenance programs result in fewer equipment failures and safer operations;

Anticipates and responds to system disturbances (self-heals) The smart grid will perform continuous self-assessments to detect, analyze, respond to, and as needed, restore grid components or network sections, and

Operates resiliently against attack and natural disaster The grid deters or withstands physical or cyber attack and improves public safety. The deployment of technology solutions that achieve these characteristics will improve how the smart grid is planned, designed, operated, and maintained. These improvementsin each of the key value areas presented abovelead to specific benefits that are enjoyed by all.

The following technology solutions are generally considered when a smart grid implementation plan is developed:

? Advanced Metering Infrastructure (AMI);? Customer Side Systems (CS);? Demand Response (DR);? Distribution Management System/Distribution

Automation (DMS);? Transmission Enhancement Applications (TA);? Asset/System Optimization (AO);? Distributed Energy Resources (DER)? Information and Communications Integration (ICT)

Deploying in Developing Countries Smart grids play a critical role in the deployment of new electricity infrastructure in developing countries and

Enables new products, services, and markets The grid's emerging economies like India. As well as enabling more

open-access market reveals waste and inefficiency and efficient operations, grids can also help to keep downward

helps drive them out of the system while offering new pressure on the cost of electricity. Small "remote? systems consumer choices such as green power products and a new -- not connected to a centralized electricity infrastructure generation of electric vehicles. Reduced transmission and initially employed as a cost-effected approach to rural congestion also leads to more efficient electricity markets;electrification -- could later be connected easily to a

Provides power quality for the digital economy Digital- national or regional infrastructure.grade power quality for those who need it avoids

Smart grids could be used to get electricity to sparsely production and productivity losses, especially in digital-populated areas by enabling a transition from simple, one-device environments;off approaches to electrification (e.g. battery-based

Optimizes asset utilization and operates efficiently household electrification) to community grids that can Desired functionality at minimum cost guides operations then connect to national and regional grids.and allows fuller utilization of assets. More targeted and

38

“The Smart Grid”: Utilities are crafting new technologies to make the power grid “ intelligent”- able to automatically conserve energy. 1. Solar panels and windmills mounted on houses generate power. If a family is generating a surplus, they can feed it back to the utility and get paid as micro-generators. 2. "Smart Appliances" monitor how much electricity they're using and shut down when power is too expensive. 3. Remote Control consumers can permit utilities to control their non-essential appliances - like pool pumps - turning them on and off to fine-tune the grid for maximum efficiency. 4. Plug-in hybrid cars refuel using clean electricity generated locally. 5. Locally-generated power avoids the 15% power-loss that occurs when you send electricity over long-distance power lines. “superconducting” power lines route extra electricity from out-of-state utilities when demand spikes. 6. Wireless Chips let individual houses communicate with power Utilities - swapping on-the-fly information about the current price and usage of electricity. 7. Web and Mobile-Phone Interfaces allow consumers to see how much Power their appliances are using when they're not at home - and even to turn them on or off remotely to reduce costs. 8. Energy Storage - When solar panels produce excess Energy, it can be stored in batteries so houses can use clean energy at night when the sun isn't shining”

At the same time the traditional base-load electricity generation will have been replaced by variable renewable energy in order to meet carbon reduction targets. Balancing supply and demand on a minute by minute basis and strengthening the electricity system without a smarter grid would require very substantial investment in additional generation capacity and network reinforcement. Smart grids will enable the challenges for clean energy to be met in a more cost-effective way and bring wider benefits through greater customer engagement. Smart Grids will allow customers to participate and be rewarded, for example, by varying the time of day when they use devices that consume the most energy.

What parts of the infrastructure will be involved in smart grid?

Smart grid will need to integrate all parts of the electricity network and all users, including those who also generate and feed surplus electricity in the local network. To ensure the best use of a smart grid, close collaboration will be required not only between the different players in the energy system but also with IT and telecommunications providers, manufacturers of electric vehicles and white goods, and operators of car parks providing electric What is a smart grid?vehicle charging.

A smart grid is an electricity network that can What are the timescales?intelligently integrate the actions of all users connected

to it--generators, consumers and those that do bothin In most developed countries smart grids need to be order to efficiently deliver sustainable, economic and deployed rapidly post 2020 if their de-carbonization and secure electric supplies. Smart grid is not a single energy security objectives are to be achieved. In the UK, it technology but an umbrella term that covers a multitude of is planned to roll out smart meters to all homes during the different elements that together create a new vision for period 2012-2017. Timescales are unavoidably long for more intelligent and responsive energy systems.achieving changes in this sector (particularly as existing services cannot be interrupted) and smart grid functionality Why will smart grids be needed?is expected to be trialled between now and 2015 with increasing wide area deployment being evident towards

Smart Grids are a key element in achieving a 2020.

sustainable energy system. For example, by 2020 there is expected to be increased demand for electricity for What will consumers' interaction with smart grids feel electric transport and space heating from heat pumps. like?


39

information locally to the customer.The aim of a smart grid is to enable low carbon energy to be used efficiently and best use to be made of available network capacity. In a world where the availability of Increased information from customers is also generation may be limited, especially at peak times, the important to the smarter operation of the wider energy aim is for smart grids to avoid an adverse impact on the system and will enable network companies to track the lifestyle of consumers and indeed offer attractive new quality of supply to customers and respond more choices and services. Home automation, for example, will promptly when for example, there is a loss of supply.pick up signals indicating the times when items such as dishwashers or electric vehicle charging can benefit from What is required for smart meters to enable a future the best prices for energy. They will also enable home smart grid?micro-generation, such as from solar panels, to be exported into the local network and for customers to be The requirements of the smart meters need to be specified paid for it. as a component in a future smart grid system.

Once smart grids become commonplace from around Meters have long lives and this field is moving quickly. 2020 onwards, some customers are likely to want to Therefore, the key to establishing a smart grid in the take close control of their energy consumption (or future is to agree a specification for smart meters that production) while others will welcome automated enables them to be operated as part of a smart grid systems or the services of third party providers. In all system in the future. It is important that smart meters cases there will be much more information available are designed with the capability to measure real time about our energy use that we have today. This will be consumption and key network parameters and up to date and easily accessible so that informed transmit this information in near real time via a range choices can be made. Early smart grid developments of communications options. It is also important that taking place now, especially in the area of smart they can link to future home energy management metering, recognize the importance of good experience systems.for customers including matters such as data privacy and security. What needs to be in place to ensure security?

What is the relationship between smart grids and The smart metering/smart grid system needs to be smart metering? designed with security and data protection built in from the

outset and as the default position.

What needs to be done?

Generating companies, the transmission companies, the distribution companies, metering companies and electricity supply companies are currently separate commercial entities whose interaction is closely regulated through licenses. Leadership of a high order will be needed at all levels so that implementation can be driven in a way that allows all stakeholders to play their part in realizing the vision for smart grids.

A smart meter

The purpose of the meter at the customer premises is to make measurements of the energy supply. The main measurement traditionally has been the amount of electricity used and this data has been manually collected. The degree of 'smartness' of a meter relates to the amount of communication applied to it, the range of measurements it can make and their granularity, and its ability to provide

(Courtesy: The Institution of Engineering & Technology (IET), U.K. - The Institution of Engineering and Technology (IET) has more than 150,000 members worldwide in 127

countries. The IET was formed in March 2006 by a merger of the Institution of Electrical Engineers (IEE) and the Institution of Incorporated Engineers (IIE). The Institution of Engineering and Technology is registered as a Charity in England and Wales and Scotland. IET members operate almost 100 Local Networks as well as 21 Technical and Professional Networks)

38

“The Smart Grid”: Utilities are crafting new technologies to make the power grid “ intelligent”- able to automatically conserve energy. 1. Solar panels and windmills mounted on houses generate power. If a family is generating a surplus, they can feed it back to the utility and get paid as micro-generators. 2. "Smart Appliances" monitor how much electricity they're using and shut down when power is too expensive. 3. Remote Control consumers can permit utilities to control their non-essential appliances - like pool pumps - turning them on and off to fine-tune the grid for maximum efficiency. 4. Plug-in hybrid cars refuel using clean electricity generated locally. 5. Locally-generated power avoids the 15% power-loss that occurs when you send electricity over long-distance power lines. “superconducting” power lines route extra electricity from out-of-state utilities when demand spikes. 6. Wireless Chips let individual houses communicate with power Utilities - swapping on-the-fly information about the current price and usage of electricity. 7. Web and Mobile-Phone Interfaces allow consumers to see how much Power their appliances are using when they're not at home - and even to turn them on or off remotely to reduce costs. 8. Energy Storage - When solar panels produce excess Energy, it can be stored in batteries so houses can use clean energy at night when the sun isn't shining”

At the same time the traditional base-load electricity generation will have been replaced by variable renewable energy in order to meet carbon reduction targets. Balancing supply and demand on a minute by minute basis and strengthening the electricity system without a smarter grid would require very substantial investment in additional generation capacity and network reinforcement. Smart grids will enable the challenges for clean energy to be met in a more cost-effective way and bring wider benefits through greater customer engagement. Smart Grids will allow customers to participate and be rewarded, for example, by varying the time of day when they use devices that consume the most energy.

What parts of the infrastructure will be involved in smart grid?

Smart grid will need to integrate all parts of the electricity network and all users, including those who also generate and feed surplus electricity in the local network. To ensure the best use of a smart grid, close collaboration will be required not only between the different players in the energy system but also with IT and telecommunications providers, manufacturers of electric vehicles and white goods, and operators of car parks providing electric What is a smart grid?vehicle charging.

A smart grid is an electricity network that can What are the timescales?intelligently integrate the actions of all users connected

to it--generators, consumers and those that do bothin In most developed countries smart grids need to be order to efficiently deliver sustainable, economic and deployed rapidly post 2020 if their de-carbonization and secure electric supplies. Smart grid is not a single energy security objectives are to be achieved. In the UK, it technology but an umbrella term that covers a multitude of is planned to roll out smart meters to all homes during the different elements that together create a new vision for period 2012-2017. Timescales are unavoidably long for more intelligent and responsive energy systems.achieving changes in this sector (particularly as existing services cannot be interrupted) and smart grid functionality Why will smart grids be needed?is expected to be trialled between now and 2015 with increasing wide area deployment being evident towards

Smart Grids are a key element in achieving a 2020.

sustainable energy system. For example, by 2020 there is expected to be increased demand for electricity for What will consumers' interaction with smart grids feel electric transport and space heating from heat pumps. like?


39

information locally to the customer.The aim of a smart grid is to enable low carbon energy to be used efficiently and best use to be made of available network capacity. In a world where the availability of Increased information from customers is also generation may be limited, especially at peak times, the important to the smarter operation of the wider energy aim is for smart grids to avoid an adverse impact on the system and will enable network companies to track the lifestyle of consumers and indeed offer attractive new quality of supply to customers and respond more choices and services. Home automation, for example, will promptly when for example, there is a loss of supply.pick up signals indicating the times when items such as dishwashers or electric vehicle charging can benefit from What is required for smart meters to enable a future the best prices for energy. They will also enable home smart grid?micro-generation, such as from solar panels, to be exported into the local network and for customers to be The requirements of the smart meters need to be specified paid for it. as a component in a future smart grid system.

Once smart grids become commonplace from around Meters have long lives and this field is moving quickly. 2020 onwards, some customers are likely to want to Therefore, the key to establishing a smart grid in the take close control of their energy consumption (or future is to agree a specification for smart meters that production) while others will welcome automated enables them to be operated as part of a smart grid systems or the services of third party providers. In all system in the future. It is important that smart meters cases there will be much more information available are designed with the capability to measure real time about our energy use that we have today. This will be consumption and key network parameters and up to date and easily accessible so that informed transmit this information in near real time via a range choices can be made. Early smart grid developments of communications options. It is also important that taking place now, especially in the area of smart they can link to future home energy management metering, recognize the importance of good experience systems.for customers including matters such as data privacy and security. What needs to be in place to ensure security?

What is the relationship between smart grids and The smart metering/smart grid system needs to be smart metering? designed with security and data protection built in from the

outset and as the default position.

What needs to be done?

Generating companies, the transmission companies, the distribution companies, metering companies and electricity supply companies are currently separate commercial entities whose interaction is closely regulated through licenses. Leadership of a high order will be needed at all levels so that implementation can be driven in a way that allows all stakeholders to play their part in realizing the vision for smart grids.

A smart meter

The purpose of the meter at the customer premises is to make measurements of the energy supply. The main measurement traditionally has been the amount of electricity used and this data has been manually collected. The degree of 'smartness' of a meter relates to the amount of communication applied to it, the range of measurements it can make and their granularity, and its ability to provide

(Courtesy: The Institution of Engineering & Technology (IET), U.K. - The Institution of Engineering and Technology (IET) has more than 150,000 members worldwide in 127

countries. The IET was formed in March 2006 by a merger of the Institution of Electrical Engineers (IEE) and the Institution of Incorporated Engineers (IIE). The Institution of Engineering and Technology is registered as a Charity in England and Wales and Scotland. IET members operate almost 100 Local Networks as well as 21 Technical and Professional Networks)

40

Can't we think beyond green?

Sustainability in building design and construction including

operation and maintenance can never be thought of without

energy efficiency as worldwide, 30-40% of all primary

energy is used in buildings. While in high- and middle-

income countries this is mostly achieved with fossil fuels, The pattern of energy use in buildings is strongly related to biomass is still the dominant energy source in low-income the building type and the climate zone where it is located.

regions. In different ways, both patterns of energy The level of development also has an effect. Today, most of

consumption are environmentally intensive, contributing to the energy consumption occurs during the building's

global warming. Without proper policy interventions and operational phase, for heating, cooling and lighting

technological improvements, these patterns are not expected purposes, which urges building professionals to produce to change in the near future. more energy-efficient buildings and renovate existing

stocks according to modern sustainability criteria. The diversity of buildings, their distinct uses and extended life cycle pose a challenge for the prescription of energy

the residential sector accounts for the major part of the

energy consumed in buildings; in developing countries

the share can be over 90%. Nevertheless, the energy

consumption in non-residential buildings, such as

offices and public buildings and hospitals, is also

significant”

“On the global level, knowledge regarding the energy use of

building stocks is still lagging be-hind. Generally speaking,


View of office building of Chhattisgarh state electricity regulatory commission at Raipur

41

conservation measures. Specific solutions are needed for It is clear that there are no universal solutions for each situation, such as for the construction of new buildings, improving the energy efficiency of buildings. General for the renovation of existing ones, for small family houses guidelines must be adjusted to the different climate, and for large commercial complexes. Energy consumption economic and social conditions in different countries. The can be reduced with thermal insulation, high performance local availability of materials, products, services and the windows and solar shading, airtight structural details, local level of technological development must also be ventilation and heat/cold recovery systems, supported with taken into account. the integration of renewable energy production in the

The building sector has a considerable potential for building. positive change, to become more efficient in terms of

These strategies apply to buildings in both warm and cold resource use, less environmentally intensive and more climates. Site and energy chain planning also influence the profitable. Sustainable buildings can also be used as a energy efficiency of the individual building. However, mitigating opportunity for greenhouse gas emissions technological solutions will only be helpful when building under the flexible mechanisms of the Kyoto Protocol and occupants are committed to using energy-efficient systems in should be considered as a key issue for the post Kyoto an appropriate way. There are many factors that influence the period and still continuing in post Durban period. energy consumption behavior of individuals, such as gender,

Decision makers understanding the logic behind the age and socio-demographic conditions. Educational and behavior of different actors is important for successful awareness raising campaigns are therefore crucial in the development and deployment of policy instruments and process of ensuring the energy efficiency of buildings. technological options. Providing benchmarks on

The end of the functional service life of a building may inhibit sustainable buildings is an essential requirement for renovation projects when the building or its parts are no decision makers to take the correct course of action to longer suitable for the needs of the building user. In encourage energy efficient buildings. Solutions aiming to refurbishment processes, basically the same rationale applies improve the energy efficiency of buildings and as in the construction of new buildings. construction activities should be disseminated widely,

making use of existing or new technology transfer Since the operational energy is the major cause for programme. Influencing market mechanisms and greenhouse gas emissions in residential or commercial encouraging research and development projects, as well as buildings to be renovated, this should be the first aspect to be public-private partnerships, are of paramount importance taken into account when considering the improvement of the for this Endeavour.energy efficiency of building stocks. Moving towards the idea of life-cycle responsibility and introducing effective

The key issues of sustainability for low emissions commissioning processes will help to ensure the efficient should not be limited to LEED ratings of IGBC or life-cycle performance of the building. similar of TERI GRIHA. More and more action is desired on carrying out site specific designs in The high investment costs involved, the lack of information accordance with client's perspective as well. The office on energy-efficient solutions at all levels, as well as the building of Chhattisgarh Sate Electricity Regulatory (perceived or real) lack of availability of solutions to specific Commission (CSERC) at Raipur, Chhattisgarh is a well conditions, are considered as the major barriers to thought approach for a new generation sustainable implementing energy efficiency measures in buildings. In technology where significant energy issues are addition, there can be a number of organizational barriers, addressed. I will not mind to be over ambitious to design s u c h a s d i f f e r e n t d e c i s i o n m a k i n g l e v e l s , a zero energy, zero water and zero discharge building privatization/deregulation processes, different stakeholders like CSERC.deciding on the energy system and shouldering the energy

bill respectively, etc.

Tara Prasad Dhal is an Architect and the Chairman & CEO of The Design Group in Bhubaneswar, Odisha.

He has more than 20 years experience in Energy Conservation, Green Buildings, Zero Energy Buildings,

NEP Buildings, etc. He had handled important projects like, Chhattisgarh State Electricity Regulatory

Commission Building, Raipur; Chhattisgarh State Beverages Corporation Building Raipur; CHIPS Data

Centre, Raipur; Sainik School, Ambikapur. C.G; Collectorate buildings of Bilaspur and Kawardha. C.G.;

Police Commissionerate, Bhubaneswar. Odisha; Regional Institute of Urban Management, New Raipur.

C.G; Prison Academy Bhubaneswar, Odisha. His contact email: [email protected]

40

Can't we think beyond green?

Sustainability in building design and construction including

operation and maintenance can never be thought of without

energy efficiency as worldwide, 30-40% of all primary

energy is used in buildings. While in high- and middle-

income countries this is mostly achieved with fossil fuels, The pattern of energy use in buildings is strongly related to biomass is still the dominant energy source in low-income the building type and the climate zone where it is located.

regions. In different ways, both patterns of energy The level of development also has an effect. Today, most of

consumption are environmentally intensive, contributing to the energy consumption occurs during the building's

global warming. Without proper policy interventions and operational phase, for heating, cooling and lighting

technological improvements, these patterns are not expected purposes, which urges building professionals to produce to change in the near future. more energy-efficient buildings and renovate existing

stocks according to modern sustainability criteria. The diversity of buildings, their distinct uses and extended life cycle pose a challenge for the prescription of energy

the residential sector accounts for the major part of the

energy consumed in buildings; in developing countries

the share can be over 90%. Nevertheless, the energy

consumption in non-residential buildings, such as

offices and public buildings and hospitals, is also

significant”

“On the global level, knowledge regarding the energy use of

building stocks is still lagging be-hind. Generally speaking,


View of office building of Chhattisgarh state electricity regulatory commission at Raipur

41

conservation measures. Specific solutions are needed for It is clear that there are no universal solutions for each situation, such as for the construction of new buildings, improving the energy efficiency of buildings. General for the renovation of existing ones, for small family houses guidelines must be adjusted to the different climate, and for large commercial complexes. Energy consumption economic and social conditions in different countries. The can be reduced with thermal insulation, high performance local availability of materials, products, services and the windows and solar shading, airtight structural details, local level of technological development must also be ventilation and heat/cold recovery systems, supported with taken into account. the integration of renewable energy production in the

The building sector has a considerable potential for building. positive change, to become more efficient in terms of

These strategies apply to buildings in both warm and cold resource use, less environmentally intensive and more climates. Site and energy chain planning also influence the profitable. Sustainable buildings can also be used as a energy efficiency of the individual building. However, mitigating opportunity for greenhouse gas emissions technological solutions will only be helpful when building under the flexible mechanisms of the Kyoto Protocol and occupants are committed to using energy-efficient systems in should be considered as a key issue for the post Kyoto an appropriate way. There are many factors that influence the period and still continuing in post Durban period. energy consumption behavior of individuals, such as gender,

Decision makers understanding the logic behind the age and socio-demographic conditions. Educational and behavior of different actors is important for successful awareness raising campaigns are therefore crucial in the development and deployment of policy instruments and process of ensuring the energy efficiency of buildings. technological options. Providing benchmarks on

The end of the functional service life of a building may inhibit sustainable buildings is an essential requirement for renovation projects when the building or its parts are no decision makers to take the correct course of action to longer suitable for the needs of the building user. In encourage energy efficient buildings. Solutions aiming to refurbishment processes, basically the same rationale applies improve the energy efficiency of buildings and as in the construction of new buildings. construction activities should be disseminated widely,

making use of existing or new technology transfer Since the operational energy is the major cause for programme. Influencing market mechanisms and greenhouse gas emissions in residential or commercial encouraging research and development projects, as well as buildings to be renovated, this should be the first aspect to be public-private partnerships, are of paramount importance taken into account when considering the improvement of the for this Endeavour.energy efficiency of building stocks. Moving towards the idea of life-cycle responsibility and introducing effective

The key issues of sustainability for low emissions commissioning processes will help to ensure the efficient should not be limited to LEED ratings of IGBC or life-cycle performance of the building. similar of TERI GRIHA. More and more action is desired on carrying out site specific designs in The high investment costs involved, the lack of information accordance with client's perspective as well. The office on energy-efficient solutions at all levels, as well as the building of Chhattisgarh Sate Electricity Regulatory (perceived or real) lack of availability of solutions to specific Commission (CSERC) at Raipur, Chhattisgarh is a well conditions, are considered as the major barriers to thought approach for a new generation sustainable implementing energy efficiency measures in buildings. In technology where significant energy issues are addition, there can be a number of organizational barriers, addressed. I will not mind to be over ambitious to design s u c h a s d i f f e r e n t d e c i s i o n m a k i n g l e v e l s , a zero energy, zero water and zero discharge building privatization/deregulation processes, different stakeholders like CSERC.deciding on the energy system and shouldering the energy

bill respectively, etc.

Tara Prasad Dhal is an Architect and the Chairman & CEO of The Design Group in Bhubaneswar, Odisha.

He has more than 20 years experience in Energy Conservation, Green Buildings, Zero Energy Buildings,

NEP Buildings, etc. He had handled important projects like, Chhattisgarh State Electricity Regulatory

Commission Building, Raipur; Chhattisgarh State Beverages Corporation Building Raipur; CHIPS Data

Centre, Raipur; Sainik School, Ambikapur. C.G; Collectorate buildings of Bilaspur and Kawardha. C.G.;

Police Commissionerate, Bhubaneswar. Odisha; Regional Institute of Urban Management, New Raipur.

C.G; Prison Academy Bhubaneswar, Odisha. His contact email: [email protected]

42

“The combustion of coal has been used to generate electricity since early in the industrial era. Heat produced by burning coal is used to drive a heat engine, which usually utilizes

steam to drive electric turbines . Since humans first began to use coal to produce electricity we have developed much more efficient steam powered heat engines. This has helped to continually increase the efficiency of coal-fired electricity. Coal is used to produce more electricity than any other fuel source. Coal is the primary source of base load power in the world. Coal power plants are most cost-effective when they are run at full capacity all the time, with the exception of planned maintenance down times or emergencies”

Improvements

More efficient coal-fired power plant designs have been developed over the last century. These designs have improved efficiency as well as reduced the emitted gaseous pollutants. These designs have been adopted thanks to both government regulation and technological developments. The average thermal efficiency of coal power plants in the

world is 28%3 with designs existing with efficiencies as high as 48%4. This means that on average a coal plant

today turns thermal energy into electric energy with an efficiency of 28%. Government requirements to reduce emissions have driven down the nitrous oxide, sulphur oxide, particulate matter, and fly ash emissions of coal power dramatically over the past 40 years. However, this reduction is not enough, since these reduced emissions still pose a serious human health concern. Cost-effective scrubber and electrostatic precipitator technologies have yielded these benefits without significantly increasing the

cost of coal electricity.Heat into electricityThe efficiency at which coal can be converted into electricity varies with the thermal efficiency of the plant Further technological development will be necessary to and the quality of coal used. Using a reasonable set of meet pending pollution standards. Taxes on carbon assumptions, one can state that approximately 2.0 kilowatt- emission are especially relevant to coal-fired electricity. hours (kwh) of electricity can be generated from the These taxes are seeing increased implementation around

burning of one kilogram of coal. Using the value of 1995 the world in recent years5. High carbon dioxide emissions may make coal power significantly more expensive if billion kWh of coal power generated in the U.S., also carbon capture and sequestration technology is not rapidly generating 129 million tons of fly ash we can estimate a fly and cost-effectively developed.ash contribution of 58.6 grams/kWh on average. Using the

2008 average electricity use per U.S. household of 11,040 kWh/year, a household powered by coal-fired electricity is

Byproductsresponsible for the generation of approximately 647 kg of fly ash per year. This is significant since almost half of the Burning coal releases heat energy, but it also releases many electric power produced in the United States is from coal. other products. Combustion products such as carbon

The good, the bad and the ugly!!

Coal Power: Pollution, politics, and profitsBy Kyle Laskowski

43

dioxide, water vapour, nitrous oxides, sulphur oxides, particulate matter, and fly ash are also produced in varying The fine particulate matter emitted when coal is burned has amounts. Before it became a regulated waste, fly ash was the potential to significantly harm human health. These mostly released into the atmosphere along with the other small particles are breathed into the body, damaging lung combustion products. alveoli or helping to trigger lung cancer. The smallest

particles can work their way directly into the blood stream. In the past 45 years coal plants have been required by These particles can be filtered from emissions to a large regulation to capture increasing fractions of their fly ash extent with today's technology, but this is not always done. rather than expelling it into the atmosphere. In most Regulatory requirements vary from nation to nation, and developed countries, over 99% of the fly ash is captured not all have strong emissions standards. Without regulation and stored. However, this has created a large waste disposal forcing them to literally 'clean up their act', coal power issue that we will discuss in more detail later in this article.producers have little incentive to spend even the relatively Of these byproducts, only water vapor is not considered a small amount of money necessary to clean up these pollutant. The effects of these products on humans and the emissions.This type of pollution contributes to environment will be discussed in more detail later in this approximately 24,000 deaths in the USA per year by article. Additionally, coal-fired power plants need a damaging cardio-respiratory health and triggering lung constant and consistent supply of cooling water. The cancer. The EPA considers the majority of these to be exhaust of heated water represents the introduction of preventable deaths, as emissions reduction technology thermal pollution to the body of water used for cooling.exists to prevent approximately 90% of these deaths.

Health and environmental effects Unless removed before combustion, the sulphur present in coal will be emitted as sulphur oxides when the coal is Some negative externalities arise from the use of coal as a burned. In the atmosphere, sulphur oxides are capable of primary electricity source. Negative health effects on the forming sulphuric acid, which damages plants and nearby human population, plant life, and wildlife has been buildings through the production of acid rain. The hard to quantify precisely and thoroughly, and are generally concentration of sulphur in coal deposits varies from site to not included in the cost of coal power to the consumer. The site, but it is known that China has particularly high levels developed nations like India currently has comparatively of sulphur in their coal. In China alone, there are high standards for some forms of coal emissions, but this approximately 400,000 deaths each year due to sulphur does not avoid all loss of life in these places. We may not dioxide emissions, the majority of which are emissions remain so lucky, as there are ongoing struggles between from burning coal that has a high sulphur content.industry lobbies and environmental groups for the attention

of governments to consider loosening environmental regulations, as occurred under the “Clear Skys Act“.

Efforts to control the emissions of sulphur oxides in Europe and North America are a regulatory success

Some developing nations are not so forward-looking on story. The intent was to produce a cleaner and healthier this issue, choosing to allow the industry to emit toxins environment for us at manageable economic costs. In unhindered because that is the cheaper alternative. It is hard the U.S., a cap and trade system was phased in following a to blame the poorest nations for their relative lack of major study in 1991. This system contributed to decreasing environmental standards because they are doing the best acid rain levels by 65% compared to 1976 levels. The EPA they can to advance to a better standard of living. However, estimates the cost of the program at 1-2 billion dollars per it is possible to advance towards more healthy energy year, about a quarter of the original cost predictions. The sources without sacrificing very much wealth. If the EU saw a 70% decrease in acid rain levels over the same developed world aided impoverished nations more, this time period.problem could be alleviated to some extent.

Many plants and animals are sensitive to changes in soil Air pollution and water pH, so acid rain will have a variable but overall

negative effect on ecosystems. The plant and animal species that are particularly sensitive can be put in serious

In addition to the direct harm to humans, coal emissions danger by the emissions from coal power plants. Damage harm our environment as well. The emission of carbon to flora and fauna has a significant effect on the balance of dioxide has received an increasing amount of media the ecosystem.attention in the past decade, and for good reason.

Additionally, changes in soil pH cause the leaching of Emissions of the greenhouse gas carbon dioxide due to calcium and magnesium. This causes the soil to become human activities, such as coal power, are believed to be a more basic, which will require correction through soil key contributing factor to global warming and climate additives to minimize negative effects on life. Applying change by the scientific community. Rising levels of carbon such additives is only practical for agricultural land, as it dioxide in the atmosphere are also believed to be related to can be added like a fertilizer or other crop additive. Wild increasing acidification of the oceans. Ocean acidification areas, or those not under cultivation, are unlikely to be able is damaging sensitive sea life and ecosystems as well as to naturally correct for these effects in a timely manner. human industries dependent on ocean productivity.Changes in soil pH of this sort tend to reduce the health and

Particulate pollution

Sulphur oxides (SOx)

Carbon dioxide

42

“The combustion of coal has been used to generate electricity since early in the industrial era. Heat produced by burning coal is used to drive a heat engine, which usually utilizes

steam to drive electric turbines . Since humans first began to use coal to produce electricity we have developed much more efficient steam powered heat engines. This has helped to continually increase the efficiency of coal-fired electricity. Coal is used to produce more electricity than any other fuel source. Coal is the primary source of base load power in the world. Coal power plants are most cost-effective when they are run at full capacity all the time, with the exception of planned maintenance down times or emergencies”

Improvements

More efficient coal-fired power plant designs have been developed over the last century. These designs have improved efficiency as well as reduced the emitted gaseous pollutants. These designs have been adopted thanks to both government regulation and technological developments. The average thermal efficiency of coal power plants in the

world is 28%3 with designs existing with efficiencies as high as 48%4. This means that on average a coal plant

today turns thermal energy into electric energy with an efficiency of 28%. Government requirements to reduce emissions have driven down the nitrous oxide, sulphur oxide, particulate matter, and fly ash emissions of coal power dramatically over the past 40 years. However, this reduction is not enough, since these reduced emissions still pose a serious human health concern. Cost-effective scrubber and electrostatic precipitator technologies have yielded these benefits without significantly increasing the

cost of coal electricity.Heat into electricityThe efficiency at which coal can be converted into electricity varies with the thermal efficiency of the plant Further technological development will be necessary to and the quality of coal used. Using a reasonable set of meet pending pollution standards. Taxes on carbon assumptions, one can state that approximately 2.0 kilowatt- emission are especially relevant to coal-fired electricity. hours (kwh) of electricity can be generated from the These taxes are seeing increased implementation around

burning of one kilogram of coal. Using the value of 1995 the world in recent years5. High carbon dioxide emissions may make coal power significantly more expensive if billion kWh of coal power generated in the U.S., also carbon capture and sequestration technology is not rapidly generating 129 million tons of fly ash we can estimate a fly and cost-effectively developed.ash contribution of 58.6 grams/kWh on average. Using the

2008 average electricity use per U.S. household of 11,040 kWh/year, a household powered by coal-fired electricity is

Byproductsresponsible for the generation of approximately 647 kg of fly ash per year. This is significant since almost half of the Burning coal releases heat energy, but it also releases many electric power produced in the United States is from coal. other products. Combustion products such as carbon

The good, the bad and the ugly!!

Coal Power: Pollution, politics, and profitsBy Kyle Laskowski

43

dioxide, water vapour, nitrous oxides, sulphur oxides, particulate matter, and fly ash are also produced in varying The fine particulate matter emitted when coal is burned has amounts. Before it became a regulated waste, fly ash was the potential to significantly harm human health. These mostly released into the atmosphere along with the other small particles are breathed into the body, damaging lung combustion products. alveoli or helping to trigger lung cancer. The smallest

particles can work their way directly into the blood stream. In the past 45 years coal plants have been required by These particles can be filtered from emissions to a large regulation to capture increasing fractions of their fly ash extent with today's technology, but this is not always done. rather than expelling it into the atmosphere. In most Regulatory requirements vary from nation to nation, and developed countries, over 99% of the fly ash is captured not all have strong emissions standards. Without regulation and stored. However, this has created a large waste disposal forcing them to literally 'clean up their act', coal power issue that we will discuss in more detail later in this article.producers have little incentive to spend even the relatively Of these byproducts, only water vapor is not considered a small amount of money necessary to clean up these pollutant. The effects of these products on humans and the emissions.This type of pollution contributes to environment will be discussed in more detail later in this approximately 24,000 deaths in the USA per year by article. Additionally, coal-fired power plants need a damaging cardio-respiratory health and triggering lung constant and consistent supply of cooling water. The cancer. The EPA considers the majority of these to be exhaust of heated water represents the introduction of preventable deaths, as emissions reduction technology thermal pollution to the body of water used for cooling.exists to prevent approximately 90% of these deaths.

Health and environmental effects Unless removed before combustion, the sulphur present in coal will be emitted as sulphur oxides when the coal is Some negative externalities arise from the use of coal as a burned. In the atmosphere, sulphur oxides are capable of primary electricity source. Negative health effects on the forming sulphuric acid, which damages plants and nearby human population, plant life, and wildlife has been buildings through the production of acid rain. The hard to quantify precisely and thoroughly, and are generally concentration of sulphur in coal deposits varies from site to not included in the cost of coal power to the consumer. The site, but it is known that China has particularly high levels developed nations like India currently has comparatively of sulphur in their coal. In China alone, there are high standards for some forms of coal emissions, but this approximately 400,000 deaths each year due to sulphur does not avoid all loss of life in these places. We may not dioxide emissions, the majority of which are emissions remain so lucky, as there are ongoing struggles between from burning coal that has a high sulphur content.industry lobbies and environmental groups for the attention

of governments to consider loosening environmental regulations, as occurred under the “Clear Skys Act“.

Efforts to control the emissions of sulphur oxides in Europe and North America are a regulatory success

Some developing nations are not so forward-looking on story. The intent was to produce a cleaner and healthier this issue, choosing to allow the industry to emit toxins environment for us at manageable economic costs. In unhindered because that is the cheaper alternative. It is hard the U.S., a cap and trade system was phased in following a to blame the poorest nations for their relative lack of major study in 1991. This system contributed to decreasing environmental standards because they are doing the best acid rain levels by 65% compared to 1976 levels. The EPA they can to advance to a better standard of living. However, estimates the cost of the program at 1-2 billion dollars per it is possible to advance towards more healthy energy year, about a quarter of the original cost predictions. The sources without sacrificing very much wealth. If the EU saw a 70% decrease in acid rain levels over the same developed world aided impoverished nations more, this time period.problem could be alleviated to some extent.

Many plants and animals are sensitive to changes in soil Air pollution and water pH, so acid rain will have a variable but overall

negative effect on ecosystems. The plant and animal species that are particularly sensitive can be put in serious

In addition to the direct harm to humans, coal emissions danger by the emissions from coal power plants. Damage harm our environment as well. The emission of carbon to flora and fauna has a significant effect on the balance of dioxide has received an increasing amount of media the ecosystem.attention in the past decade, and for good reason.

Additionally, changes in soil pH cause the leaching of Emissions of the greenhouse gas carbon dioxide due to calcium and magnesium. This causes the soil to become human activities, such as coal power, are believed to be a more basic, which will require correction through soil key contributing factor to global warming and climate additives to minimize negative effects on life. Applying change by the scientific community. Rising levels of carbon such additives is only practical for agricultural land, as it dioxide in the atmosphere are also believed to be related to can be added like a fertilizer or other crop additive. Wild increasing acidification of the oceans. Ocean acidification areas, or those not under cultivation, are unlikely to be able is damaging sensitive sea life and ecosystems as well as to naturally correct for these effects in a timely manner. human industries dependent on ocean productivity.Changes in soil pH of this sort tend to reduce the health and

Particulate pollution

Sulphur oxides (SOx)

Carbon dioxide

44

quantity of vegetation growth. many mountaintop removal projects would no longer be economically viable.Acid rain also causes damage to human construction,

including outdoor masonry and art. The acidity dissolves This land has, however, been found to be appropriate for the calcium in marbles and limestone over time. other uses, such as real estate development, grazing, and Additionally, acidic solutions increase the corrosion rate of the farming of game animals. Additionally, the sale of bronze and copper art and architecture. This can cause the lumber may provide supplemental income before the

degradation and eventual loss of priceless human artifacts mining begins, if it is not simply burned. One of the starkest and most obvious changes is visible in the deforestation and altered topography of sites that have

Nitrogen oxides are produced from the oxygen and undergone mountain top removal. To this author, it seems a nitrogen gases present in high-temperature coal pity to sacrifice such sites of natural beauty, as well as the combustion. Nitrogen oxides contribute to the greenhouse health of those fortunate enough to live near them, in order effect, the formation of acid rain, ground level ozone to extract a marginal amount of coal.production, and photochemical smog. Nitrogen oxides can also produce nitric acid when interacting with moisture and other chemicals in places such as the human lungs. Ozone, Water bodies that are downstream have been found to a product of nitrogen oxide reactions with other pollution contain elevated levels of arsenic and other pollutants and the atmosphere, is a harmful oxidizing agent that which can pose a definite human health hazard. Even damages the lungs. As a result of all of these effects, worse, much of this pollution is in excess of existing nitrogen oxides released through the combustion of coal regulatory limits that are not being enforced. To combat lead to numerous early deaths due to respiratory and heart this, coalitions of environmental activist organizations and damage, as well as the aggravation of asthma and bronchial locals must often take polluters to court at their own conditions. expense.

Coal miningWhen warm water used to cool a coal power plant is exhausted into bodies of water that harbor life, it becomes

Historically, coal mining was a very dangerous undertaking thermal pollution which can have negative effects on the for those involved. Underground coal mines were prone to ecosystem. Heating a body of water decreases its dissolved collapse, with the potential to harm miners. The oxygen content, which has the potential to harm animals modernization of the coal mining industry has drastically dependent on it for oxygen. Heating also leads to an reduced this risk. It is now the case that in the U.S., only increase in the metabolic rate of the organisms living in the tens of coal miners die per year compared to times in body of water, causing them to require more food. Warmer history when yearly coal miner deaths numbered in the waters can trigger algae blooms, further depriving the hundreds to thousands. water of oxygen.

Some forms of life may benefit from changes to the temperature of water bodies. In particular, the manatee is Most of the ill effects of coal mining today are due to known to use the thermal output of power plants as a pollutants that are released during the mining process. Most refuge in the winter. However, changes in temperature tend of this pollution is caused by a technique known as to cause biodiversity in these areas to go down. These local mountaintop removal, in which the 'overburden' above a ecosystems are being forcibly moved away from the self-coal seam is removed into valleys, along with other waste directed equilibria in which the diversity of life has from the mining process. Mountaintop removal exposes established some degree of balance.toxic contaminants in the ground that are found along with

coal. These toxic materials are often swept into the What can be done about thermal pollution? Fortunately, ecosystem by rain and streams that have been buried in the there is some hope. The more efficient a thermal power valleys. plant is, the less thermal pollution needs to be rejected into

the environment to produce the same amount of electricity. The use of cooling ponds and cooling towers reduces the Deforestation and elimination of streams due to quantity of heat exhausted into the living environment. mountaintop removal can have a drastic effect on the Both of these techniques use man-made structures to ecosystem. In particular, they damage the biodiversity of encourage heat dispersal through water evaporation and the the local ecosystem by driving out or killing species heating of the air.populations. The current environmental re-mediation Alternatively, the extra heat can be used for human and efforts are inadequate to replace the ecosystem services that industrial needs, such as space heating, district heating, or were once provided by the living ecosystems of the regions industrial processes requiring 'low grade' heat. 'Low grade' before they were subjected to mountaintop removal.heat refers to thermal resources that are at a relatively low temperature by industrial standards, generally below about

Ecosystems that were once largely forested are repopulated 130ºC, or 266ºF. The process of utilizing waste heat from a with fast growing non-native grasses. Streams which were power plant for other uses is known as co-generation.an integral part of the local ecosystem are filled in with mining waste and rubble. Weak environmental regulations

Fly ash represents the large particulate matter left over after permit this woefully incomplete re-mediation process. If a coal is burned. It contains large amounts of silicon and more thorough ecosystem replacement were required,

.Nitrogen oxides (NOx)

Downstream contamination

Thermal pollution

Mine collapse

Pollutants released

Damage to ecosystem

Fly ash

45

calcium oxides as well as smaller proportions of heavy to carry their true prices in order for free market economics metals such as mercury and arsenic. Fly ash is a very toxic to function effectively. Coal power should only be used if material. Since the formation of the EPA, stringent the benefits outweigh its true costs, and those individuals emission regulations have required the removal of larger who are harmed through its use are fairly compensated.and larger fractions of fly ash from atmospheric emissions. In the western world, it is common for more than 99% of

So far, this article has largely been a list of warnings, fly ash to be captured at the stack. While this has been a quantifying the damaging effects of using coal for electrical great boon for air quality worldwide, this has created a new production. The reader might ask, why then do we still form of hazardous waste that we need to deal with.burn coal? Well, for starters, burning coal to make power is

Unlike the other pollutants emitted by the burning of coal, cheap. Coal is a fairly inexpensive and abundant fuel which are gaseous or energy, there is a large volume and source and humanity has had much practice in developing mass of fly ash that needs to be dealt with. In the U.S. more cost effective and thermally efficient ways of burning alone, 129 million tons of fly ash are produced each year. it. We have commented in the past that it is difficult to find While some of this ash is cycled into other uses such as a a cheaper source of power than 'burning flammable dirt'.concrete filler, a significant amount of it remains stored in

As discussed earlier, many of the costs of burning coal ash ponds and landfills.remain unaccounted for in the bills of those using coal

We assert that land filling fly ash is not a solution; it only power. Some of these costs are born in other ways, such as creates an ever-growing accident waiting to happen. As the through lower agricultural productivity and higher health amount of fly ash stored worldwide increases, accidents care costs, while other costs will not necessarily be seen such as this one in Tennessee will continue to happen at immediately or locally.increasing costs to people's health and pocketbooks, as well

Many of the institutions of our developed society as the environment.directly or indirectly benefit from very low electricity

If we can produce less fly ash through the burning of costs. For our society to continue functioning as we less coal, we can move toward the goal of reusing more expect it to, it is transitioning towards electricity fly ash than is produced each year. The goal is to sources that can compete with coal in terms of cost. In decrease the amount of fly ash stored, since it the past decades we have seen cost-effective power represents a significant danger to human and ecosystem sources from natural gas, hydro, wind, nuclear, biomass health. Fly ash is considered fit for a variety of uses, and geothermal.from fill material on Portland cement to use as a sewage

Some relatively new forms of electricity such as solar stabilizer for human waste, to 'cinder blocks' used for

photo-voltaics and solar thermal power are also showing construction.

great promise. When calculations include the full cost of coal, including the negative effects on the environment and human health, cleaner forms such as wind energy have It is in the interest of those profiting from the producing already taken the lead as the cheapest form of electricity in and use of coal power to keep the costs of this damage many areas of the world.external, and knowledge of the extent of the damage poorly

developed. This means that it is in the economic interests of It is also advisable to reduce our electricity use while the coal industry to keep the public ignorant of these

these new technologies are being refined and negative effects, and thus keep these extra costs from

implemented. This will extend the lifetime of our affecting their profits, or knowledge of the damage from

existing power infrastructure and reduce the impact hurting their reputation or catalysing the creation of stricter that changes in the cost of electricity will have on our regulations.lives. Transitioning away from coal-fired electricity will take a lot of time and effort, but technologies exist that

It is in the interest of those suffering the ill effects of this can currently be implemented to steadily replace it as our damage to ensure that companies and people responsible primary source of electrical power. There may be difficulty for producing coal power internalize the costs they have in this transition, but we can choose an energy path that is placed on society and the environment. Market goods need less costly to our health and environment.

Why do we still do it?

Coal industry Vs the people

Kyle Laskowski is a recent graduate from the University of Regina's Honours Physics program. He

originally hails from a small town in the area of Lanigan, Saskatchewan. He has been interested in

nuclear power and large scale energy systems for a long time. After taking a keen interest in the

Saskatchewan Uranium Development Partnership consultation effort, he has invested a lot of his time

into research and discussion of Saskatchewan's possible energy futures.

44

quantity of vegetation growth. many mountaintop removal projects would no longer be economically viable.Acid rain also causes damage to human construction,

including outdoor masonry and art. The acidity dissolves This land has, however, been found to be appropriate for the calcium in marbles and limestone over time. other uses, such as real estate development, grazing, and Additionally, acidic solutions increase the corrosion rate of the farming of game animals. Additionally, the sale of bronze and copper art and architecture. This can cause the lumber may provide supplemental income before the

degradation and eventual loss of priceless human artifacts mining begins, if it is not simply burned. One of the starkest and most obvious changes is visible in the deforestation and altered topography of sites that have

Nitrogen oxides are produced from the oxygen and undergone mountain top removal. To this author, it seems a nitrogen gases present in high-temperature coal pity to sacrifice such sites of natural beauty, as well as the combustion. Nitrogen oxides contribute to the greenhouse health of those fortunate enough to live near them, in order effect, the formation of acid rain, ground level ozone to extract a marginal amount of coal.production, and photochemical smog. Nitrogen oxides can also produce nitric acid when interacting with moisture and other chemicals in places such as the human lungs. Ozone, Water bodies that are downstream have been found to a product of nitrogen oxide reactions with other pollution contain elevated levels of arsenic and other pollutants and the atmosphere, is a harmful oxidizing agent that which can pose a definite human health hazard. Even damages the lungs. As a result of all of these effects, worse, much of this pollution is in excess of existing nitrogen oxides released through the combustion of coal regulatory limits that are not being enforced. To combat lead to numerous early deaths due to respiratory and heart this, coalitions of environmental activist organizations and damage, as well as the aggravation of asthma and bronchial locals must often take polluters to court at their own conditions. expense.

Coal miningWhen warm water used to cool a coal power plant is exhausted into bodies of water that harbor life, it becomes

Historically, coal mining was a very dangerous undertaking thermal pollution which can have negative effects on the for those involved. Underground coal mines were prone to ecosystem. Heating a body of water decreases its dissolved collapse, with the potential to harm miners. The oxygen content, which has the potential to harm animals modernization of the coal mining industry has drastically dependent on it for oxygen. Heating also leads to an reduced this risk. It is now the case that in the U.S., only increase in the metabolic rate of the organisms living in the tens of coal miners die per year compared to times in body of water, causing them to require more food. Warmer history when yearly coal miner deaths numbered in the waters can trigger algae blooms, further depriving the hundreds to thousands. water of oxygen.

Some forms of life may benefit from changes to the temperature of water bodies. In particular, the manatee is Most of the ill effects of coal mining today are due to known to use the thermal output of power plants as a pollutants that are released during the mining process. Most refuge in the winter. However, changes in temperature tend of this pollution is caused by a technique known as to cause biodiversity in these areas to go down. These local mountaintop removal, in which the 'overburden' above a ecosystems are being forcibly moved away from the self-coal seam is removed into valleys, along with other waste directed equilibria in which the diversity of life has from the mining process. Mountaintop removal exposes established some degree of balance.toxic contaminants in the ground that are found along with

coal. These toxic materials are often swept into the What can be done about thermal pollution? Fortunately, ecosystem by rain and streams that have been buried in the there is some hope. The more efficient a thermal power valleys. plant is, the less thermal pollution needs to be rejected into

the environment to produce the same amount of electricity. The use of cooling ponds and cooling towers reduces the Deforestation and elimination of streams due to quantity of heat exhausted into the living environment. mountaintop removal can have a drastic effect on the Both of these techniques use man-made structures to ecosystem. In particular, they damage the biodiversity of encourage heat dispersal through water evaporation and the the local ecosystem by driving out or killing species heating of the air.populations. The current environmental re-mediation Alternatively, the extra heat can be used for human and efforts are inadequate to replace the ecosystem services that industrial needs, such as space heating, district heating, or were once provided by the living ecosystems of the regions industrial processes requiring 'low grade' heat. 'Low grade' before they were subjected to mountaintop removal.heat refers to thermal resources that are at a relatively low temperature by industrial standards, generally below about

Ecosystems that were once largely forested are repopulated 130ºC, or 266ºF. The process of utilizing waste heat from a with fast growing non-native grasses. Streams which were power plant for other uses is known as co-generation.an integral part of the local ecosystem are filled in with mining waste and rubble. Weak environmental regulations

Fly ash represents the large particulate matter left over after permit this woefully incomplete re-mediation process. If a coal is burned. It contains large amounts of silicon and more thorough ecosystem replacement were required,

.Nitrogen oxides (NOx)

Downstream contamination

Thermal pollution

Mine collapse

Pollutants released

Damage to ecosystem

Fly ash

45

calcium oxides as well as smaller proportions of heavy to carry their true prices in order for free market economics metals such as mercury and arsenic. Fly ash is a very toxic to function effectively. Coal power should only be used if material. Since the formation of the EPA, stringent the benefits outweigh its true costs, and those individuals emission regulations have required the removal of larger who are harmed through its use are fairly compensated.and larger fractions of fly ash from atmospheric emissions. In the western world, it is common for more than 99% of

So far, this article has largely been a list of warnings, fly ash to be captured at the stack. While this has been a quantifying the damaging effects of using coal for electrical great boon for air quality worldwide, this has created a new production. The reader might ask, why then do we still form of hazardous waste that we need to deal with.burn coal? Well, for starters, burning coal to make power is

Unlike the other pollutants emitted by the burning of coal, cheap. Coal is a fairly inexpensive and abundant fuel which are gaseous or energy, there is a large volume and source and humanity has had much practice in developing mass of fly ash that needs to be dealt with. In the U.S. more cost effective and thermally efficient ways of burning alone, 129 million tons of fly ash are produced each year. it. We have commented in the past that it is difficult to find While some of this ash is cycled into other uses such as a a cheaper source of power than 'burning flammable dirt'.concrete filler, a significant amount of it remains stored in

As discussed earlier, many of the costs of burning coal ash ponds and landfills.remain unaccounted for in the bills of those using coal

We assert that land filling fly ash is not a solution; it only power. Some of these costs are born in other ways, such as creates an ever-growing accident waiting to happen. As the through lower agricultural productivity and higher health amount of fly ash stored worldwide increases, accidents care costs, while other costs will not necessarily be seen such as this one in Tennessee will continue to happen at immediately or locally.increasing costs to people's health and pocketbooks, as well

Many of the institutions of our developed society as the environment.directly or indirectly benefit from very low electricity

If we can produce less fly ash through the burning of costs. For our society to continue functioning as we less coal, we can move toward the goal of reusing more expect it to, it is transitioning towards electricity fly ash than is produced each year. The goal is to sources that can compete with coal in terms of cost. In decrease the amount of fly ash stored, since it the past decades we have seen cost-effective power represents a significant danger to human and ecosystem sources from natural gas, hydro, wind, nuclear, biomass health. Fly ash is considered fit for a variety of uses, and geothermal.from fill material on Portland cement to use as a sewage

Some relatively new forms of electricity such as solar stabilizer for human waste, to 'cinder blocks' used for

photo-voltaics and solar thermal power are also showing construction.

great promise. When calculations include the full cost of coal, including the negative effects on the environment and human health, cleaner forms such as wind energy have It is in the interest of those profiting from the producing already taken the lead as the cheapest form of electricity in and use of coal power to keep the costs of this damage many areas of the world.external, and knowledge of the extent of the damage poorly

developed. This means that it is in the economic interests of It is also advisable to reduce our electricity use while the coal industry to keep the public ignorant of these

these new technologies are being refined and negative effects, and thus keep these extra costs from

implemented. This will extend the lifetime of our affecting their profits, or knowledge of the damage from

existing power infrastructure and reduce the impact hurting their reputation or catalysing the creation of stricter that changes in the cost of electricity will have on our regulations.lives. Transitioning away from coal-fired electricity will take a lot of time and effort, but technologies exist that

It is in the interest of those suffering the ill effects of this can currently be implemented to steadily replace it as our damage to ensure that companies and people responsible primary source of electrical power. There may be difficulty for producing coal power internalize the costs they have in this transition, but we can choose an energy path that is placed on society and the environment. Market goods need less costly to our health and environment.

Why do we still do it?

Coal industry Vs the people

Kyle Laskowski is a recent graduate from the University of Regina's Honours Physics program. He

originally hails from a small town in the area of Lanigan, Saskatchewan. He has been interested in

nuclear power and large scale energy systems for a long time. After taking a keen interest in the

Saskatchewan Uranium Development Partnership consultation effort, he has invested a lot of his time

into research and discussion of Saskatchewan's possible energy futures.

46

46

Documents

Energy Blitz June-july 2012 issue