5 mercados unbundling session

8/12/2019 5 Mercados Unbundling Session

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NATIONAL CONFERENCE

ON 10 YEARS OF THE ELECTRICITY ACT, 2003: A CRITICAL REVIEW

Vikas GabaNew Delhi, June 11, 2003

Role of Smart Grids in the Indian PowerSector: Current Developments, Challenges and

Way Forward


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Indias energy realities and emerging needs Smart Grids Concept and Application Areas Global Developments Developments in India Challenges to Accelerated Deployment Way Forward

Structure


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Indias Energy Realities andEmerging Need


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What is Smart Grid?


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System (G, T, D) with an advanced two-way communicationssystem

Enables real-time monitoring and control

Provide greater visibility and transparency

Consequently, enables cost reduction and efficiencyimprovement

Understanding Smart Grid

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Several Potential Application areas exist

Electricity

DistributionElectricityMarketsRenewable

EnergyEnergy StorageTransportIndustrial Energy

EfficiencyBuilding EnergyEfficiency

7Source: http://www.renesas.eu/ecology/eco_society/smart_grid/


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Glob ally, a num ber of in i t iat ivesh ave al read y s tar ted, m os t o f i t

t h ro u g h s t ro n g s u p p o r t fro m th eGovernment


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Global Market Trends

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Country National Smart Grid Initiatives

UnitedKingdom

OFGEM has set up a Low Carbon Networks fund that will allow up to GPB 500msupport to distribution network operator projects that test new technology,operating and commercial arrangements.

France The electricity distribution operator EDF is deploying 300000 smart meters in apilot project based on an advanced communication protocol named Linky . If thepilot is deemed a success, ERDF will replace all of its 35 million meters with Linkysmart meters from 2012 to 2016.

Brazil Several utilities are managing smart grid pilots , including Ampla, a powerdistributor in Rio de Janeiro State owned by the Spanish utility Endesa, which hasbeen deploying smart meters and secure networks to reduce losses from illegalconnections. AES Eletropaulo, a distributor in So Paulo State, has developed a smartgrid business plan using the existing fibre-optic backbone.

The utility CEMIG has started a smart grid project based on system architecturedeveloped by the IntelliGrid Consortium, an initiative of the California-based ElectricPower Research Institute.


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India guided by the developments

at the global level, is slowly gearingup


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Institutional Set-up for Smart Grids in thecountry

Bureau ofIndian

Standards

(BIS)

India Smart GridForum (ISGF)

India SmartGrid Task Force

(ISGTF)

CPRI,BEE, CERC

StateUtilities

Industry/ResearchInstitutes

Government of India / Ministry of Power

StateGovernment

CERC/SERCs

Indicates direct interaction among the entitiesIndirect interaction among the entities


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14 pilots supported by Govt. of India as Proof ofConcept

Power DemandShortage

Demand Side Management Demand Response

Peak Load Management Crew Management

Clean Energy Renewable Energy

IntegrationDemand Response

OperationalEfficiency

Improvement

Theft Management &Tamper Detection Asset Monitoring

Meter DataManagement

System

Substation Automation AMI

ConsumerService

StandardsPower Quality

Work ForceManagement

OutageManagement

Automatic Billing Consumer portal

National Priorities Smart Grid Interventions proposed by the Utilities

Lot of additional work is happening on issues such as Demandresponse, Micro-Grids, etc beyond the 14 pilots


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Challenges do exist


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Key ChallengesGovernment Support funding and to ensure coordinated development

National Road Map adopted but implementation wherewithal missing

Access of financial resources particularly due to poor financial health of thepower utilities

Lack of Policy and Regulation related to Smart Grid applications

No proven commercial viability of large scale smart grid implementation Cost and

benefit assessment (Most of the initiatives are pilots)

Development of Smart Grid Standards including pilot models that can beadopted by discoms based on their level of maturity to handle suchapplications

Ability of users to absorb implementation of advanced technology

Lack of awareness requiring knowledge creation, training and capacitybuilding of both the utility and consumers

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Electricity Act 2003 and the underlying policies does provide forintroducing all of the above, however implementation mechanism have

to be ensured


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Thank You


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Development Potential andIssues across application areas


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Development potential & issues across variousapplication areas

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Application Area

(Current Status)

Business Issues Potential/Importance of

Smart GridsDistribution

Inefficient Huge Theft Poor customer service &

reliability

Lack of measurements andcontrols

Antiquated technologies Poor business orientation

High (can bring rapidtechnological upgradation)

Supports loss reduction anddemand response

Markets

>10% of overall electricity sale Affected efficiency gains Send price signals to

consumption (distribution)

Poor networks. Problems inopen access

Inadequate BusinessProcesses and Controls

Poor cost signaling

High (Open access andcontrols can be veryeffectively supported)

Industrial Energy Efficiency

Improving rapidly Signalled by environmental

market

Lack of awareness High (SG enables better loadmanagement through DSMand DR)


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Application Area

(Current Status)


Smart GridsEnvironmental Markets(REC, PAT)

Nascent, developing fast Closely linked to energy

efficiency & renewables

Nascent, does not provideconfidence to investments

Baseline definition issues in(PAT) and monitoring

Trading system needs

refinement

High (SG can provide astrong information andcontrols base and also enableresponse to price signals)

Renewable Energy

Fast developing Fills Indias Energy void

Variability management &storage

Transmission networks andcontrols

Very High (SG can assist ingrid integration, forecasting,balancing and storage)

Energy Storage

Nascent in India Closely linked to RE & EE

Expensive Technological upgradation Space requirements

High (Has applications inenergy storage, enablingprovision for balancing power& islanding during blackouts)

Development potential & issues across variousapplication areas contd


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Application Area

(Current Status)`


Smart GridsTransport

Largest energy sub-sector afterelectricity

Pollution a significant issue Only Hybrid Vehicles (fossil fuel +

EV) available Current focus only on mobility andassociated environmental issues

EVs are expensive

Inadequateinfrastructure fordeployment and

proliferation Regulatory Issues

High

SG can integrate with gridand reduce short term powerpurchase; use as balancingresource; peak load

management)

Building Energy Efficiency

Fastest growing energy consumingsector

Widely varying energy efficiencylevels

Lack of awarenessamong builders andconsumers

High initial cost of EEappliance

High.

Smart Grid can enable realtime consumption monitoringand control;, enablingreduction of wastefulconsumption

Development potential & issues across variousapplication areas contd

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