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India Smart Grid Summit 12 February 2014

India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

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Page 1: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

India Smart Grid Summit

12 February 2014

Page 2: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

India’s Energy Sector is evolving significantlyNational Priorities Current Situation Implications

Meeting Demand Shortage

• Chronic power shortages

• Rapid demand growth

• Inadequate energy access

• Augmentation of generation capacity

• Power evacuation and grid access

Clean Energy Deployment

• RE capacity increasing ~ 3000+ MW added each year

• Require smarter systems for power balancing to deal with variability & unpredictability

Operational Efficiency Improvement

• Poor operational efficiency

• High system losses

• R-APDRP has provided much needed support

• Need for ability to control and monitor power flow till customer level

Enhancing Consumer Service Standards

• Poor system visibility

• Lack of reliability

• Real time system to enable better system visibility and consumer participation

Smart Grids can transform the existing grid into a more efficient, reliable, safe and enable address sector challenges. Evolution has

already started.

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Page 3: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Several Application areas have emerged

Key Application Areas

Electricity Distribution

Electricity Markets

Environmental Markets

Renewable Energy

Energy Storage

Transport

Industrial Energy Efficiency

Building Energy Efficiency

Source: http://www.renesas.eu/ecology/eco_society/smart_grid/

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Page 4: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Development potential & issues across various application areas

Application Area(Current Status) Business Issues Potential/Importance of

Smart Grids

Distribution

• Inefficient• Huge Theft• Poor customer service &

reliability

• Lack of measurements and controls

• Antiquated technologies• Poor business orientation

• High (can bring rapid technological upgradation)

• Supports loss reduction and demand response

Markets

• >10% of overall electricity sale

• Affected efficiency gains• Send price signals to

consumption (distribution)

• Poor networks. Problems in open access

• Inadequate Business Processes and Controls

• Poor cost signaling

High (Open access and controls can be very effectively supported)

Industrial Energy Efficiency

• Improving rapidly • Signalled by environmental

market

• Lack of awareness• High (SG enables better load

management through DSM and DR)

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Page 5: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Application Area(Current Status) Business Issues Potential/Importance of

Smart Grids

Environmental Markets (REC, PAT)

• Nascent, developing fast• Closely linked to energy

efficiency & renewables

• Nascent, does not provide confidence to investments

• Baseline definition issues in (PAT) and monitoring

• Trading system needs refinement

• High (SG can provide a strong information and controls base and also enable response to price signals)

Renewable Energy

• Fast developing • Fills India’s Energy void

• Variability management & storage

• Transmission networks and controls

• Very High (SG can assist in grid integration, forecasting, balancing and storage)

Energy Storage

• Nascent in India • Closely linked to RE & EE

• Expensive• Technological up-gradation• Space requirements

• High (Has applications in energy storage, enabling provision for balancing power & islanding during blackouts)

Development potential & issues across various application areas

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Page 6: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Application Area(Current Status)` Business Issues Potential/Importance of

Smart Grids

Transport

• Largest energy sub-sector after electricity

• Pollution a significant issue• Only Hybrid Vehicles (fossil fuel +

EV) available• Current focus only on mobility

and associated environmental issues

• EVs are expensive

• Inadequate infrastructure for deployment and proliferation

• Regulatory Issues

• High

• SG can integrate with grid and reduce short term power purchase; use as balancing resource; peak load management)

Building Energy Efficiency

• Fastest growing energy consuming sector

• Widely varying energy efficiency levels

• Lack of awareness among builders and consumers

• High initial cost of EE appliance

• High.

• Smart Grid can enable real time consumption monitoring and control;, enabling reduction of wasteful consumption

Development potential & issues across various application areas

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Page 7: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

In 2013, Government of India (GoI) has adopted a National Smart Grid Vision for India with following objective:

"Transform the Indian power sector into a secure, adaptive, sustainable and digitally enabled ecosystem that provides reliable and quality energy for all with active participation of stakeholders”

Smart Grid Roadmap provides several targets to be met

Key Targets and Highlights are as follows:

12th Plan 13th Plan 14th Plan

Completion of ongoing smart grid pilots

Augmentation of data centres and communication network for AMI Roll out

Distribution Automation & GIS/Automated distribution s/stns.

Development of indigenous smart meter

Dynamic tariffs, Sustainability Initiatives –promoting distributed generation

Development of 50 Smart cities.

Mandatory roof top solar Total Renewable integration

of 130 GW; 10% EV penetration

Nationwide AMI roll out for customers

Continuous Research &Development ;

Choice of electricity supplier Stable 24X7 power supply

Nationwide AMI roll out for customers >10KW load

Mandatory Roof Top Solar for large establishments

Total Renewable integration of 80GW;

EV charging infrastructure Development of micro grids

in total 10000 villages Distribution Automation

Page 8: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Existing initiatives and activities will need to be scaled up

India Smart Grid Task Force (ISGTF)

Created under the Ministry of Power (MoP) to provide policy direction to the Smart Grid initiatives in the country

India Smart Grid Forum (ISGF)

PPP initiative of MoP to support ISGTF, responsible for helping the stakeholders in the deployment of smart grid technologies and undertaking research work for promotion of such technologies

14 Pilot Projects

14 smart grids pilots have been proposed to be implemented across various stages through support from the GoI.

There are utilities like BESCOM, Tata Power Delhi Distribution Limited, CESC etc. who have started their own initiatives

There are also several additional initiatives that various entities have been undertaking working in their domain for smart grid support and

implementation in India- CEA, BIS, CPRI, BEE etc.

National Smart Grid Mission aims to further strengthen the above initiatives

Page 9: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

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• Smart Grids cannot evolve without dynamic, flexible regulation

• The regulator will be a facilitator to smart grids business

• Discoms need to demonstrate clear positive benefits to consumers

• Regulators more than ever need to protect the interests of the consumers

Investment Approval

Recovery through Tariff

Promoting end use

Providing Incentives

Delivering policy objectives.

Ensuring value and protection to customers

A conducive regulatory framework will also be critical

Page 10: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Regulations will need to deal with multiple aspects

New Players• Consumers

• 3rd party service providers

New Resources• Distributed

• Demand-side• Consumer owned

Changing Investment Scenario

• Bigger Values• Riskier Technologies• Longer lead-times for

realization of full benefits

New Standards• Technology

• Interoperability• Cyber security

New Products

• Tariffs (Dynamic, pay for what you use etc.)

• Incentives to participate• Penalties for non or

poor performance

New Technology

• AMI• Electric Vehicles

• Energy Storage etc.

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Page 11: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Scope of Smart Grid Regulations

Approval of Smart Grids investments consistent with the objectives

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Tariff design for enabling consumers, prosumers and utilities to derive benefits of the SG investments

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Incentive/dis-incentive design for promoting deployment

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Adoption of relevant equipment, communication and interoperability standards and codes

5Security of network operations, particularly with respect of cyber security

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Protection of consumer privacy, maintaining integrity of data

4Integration of Renewable/Distributed Generation for better grid visibility and efficiency

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Entities may be required to demonstrate adherence to the requirements stipulated herein through appropriate reporting structures (preferred

through automated means with minimum human intervention)

Page 12: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Initiative on this has already started

A facilitative regulatory framework for promoting smart grid investments and applications is being laid out in India.

Through the Ministry of Power and the Forum of Regulators in India, model smart grid regulations are under development.

– Mr. B N Sharma, Joint Secretary (Distribution), MoP (Chairman)– Mr. Pravinbhai Patel, Member (Technical), GERC– Mr. Alok Gupta, Member, MPERC– Mr. Pankaj Batra, Chief Engineer, I/C, CEA– Mr. S A Soman, Professor, IIT-Mumbai– Mr. N. S. Sodha, Executive Director, PGCIL Ltd. (Convenor)

Draft regulations validated by the Committee has been presented to the Forum of Regulators

A Technical Committee constituted by MoP for development of SG Regulations has been formed

Page 13: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Thank YouAnish De, Chief Executive OfficerMercados Energy Markets India Private Limited1202, Tower B, Millennium Plaza, Sector 27Gurgaon, Haryana - 122002, IndiaTel: +91 124 4241750 | Mobile: +91 9810453776 | Fax: +91 124 4241751 [email protected] | www.afconsult.com | www.mercadosemi.es

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Page 14: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Functionalities of SG Utility pilots aim to address several issues plaguing the distribution segment

Power Demand Shortage

Demand Side Management Demand Response

Peak Load Management

Clean EnergyRenewable Energy

IntegrationDemand Response (for balancing)

Loss Reduction/ Operational Efficiency Improvement

Theft Management & Tamper Detection

Asset MonitoringMeter Data

Management System

Substation Automation AMI

Consumer Service Standards

Power QualityWork Force/Crew

ManagementOutage

Management

Automatic Billing Consumer portal

National Priorities

Smart Grid Interventions proposed under the 14 GOI Pilots

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Page 15: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Smart Grid Regulations Coverage

• Implement specific Tariff Structure to promote deployment

• Process of tariff setting

Tariff Design

Product Standards

System Standards

Performance Standards

Network and Communication Standards

Customer Data Protection Standards

Safety and Standards

Review and Approval of Smart Grid Investments

Recovery of Costs

Role of Smart Grid Consultation Committee (SG-CC)

Evaluation, Measurement & Verification

Investment

Constitution of Smart Grid Cell

Appointment of Nodal Officer

Smart Grid Cell and Nodal

Officer

Awareness and Capacity Building

Customer Participation and Incentives

Consumer or Prosumer Dispute Redressal Process

Customer Engagement

While the regulations provides details of various themes, in certain cases it interfaces with the developments/standards and process already laid out in various

documents

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Page 16: India Smart Grid Summit 12 February 2014. Indias Energy Sector is evolving significantly National Priorities Current Situation Implications Meeting Demand

Objective of Smart Grid Regulations

Considering early stages of development, provides flexibility to experiment with new technologies and applications while duly protecting the legitimate interests of consumers and prosumers

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Takes into consonance the National & State Roadmaps, and aims to propagate investments in SG and allied technologies in accordance with these roadmaps

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By greater technology adoption across the value chain in electricity sector (especially in T&D)

Efficiency in generation and licensee operations

Manage T&D network effectively Enhance network security Integrate renewable and clean energy into

the grid Enhance network visibility and access Improve customer / prosumer service level

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