model smart grid regulations in india · 6 • on 28th aug 2015 for relaesed draft model sg...
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Special Workshop -5: Theme: D Regulations for Smart Grids
Vijay L Sonavane
Former Member MERC Mumbai
Model Smart Grid
Regulations in India
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• In 2010, for advising appropriatePolicies & Programs for SG, MOPconstituted ISGTF & ISGF
• In Sept 2013, MOP constituted aTechnical Committee for preparationof Draft SG Regulations.
• Office Memorandum for NSGM issuedon 27th March 2015. ISGTF mergedwith NSGM Project Management Unit(NPMU)
• SG Knowledge Center is beingdeveloped by PGCIL.
SG Institutional, Policy & Regulatory Framework
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Preamble:
• An Act for taking measures conducive to
(1) Development of electricity industry,
(2) Promoting competition therein,
(3) Protecting interests of consumers
(4) Promotion of efficient & environmental
friendly policies
• S 61 (c): “ Commission…. shall be guidedby the factors which would encouragecompetition, efficiency, economical useof resources, good performance &optimum investments
SG Projects: EA 2003(Mandate for Reforms)
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• Bill defines a Smart Grid as “AnElectricity Network that uses Info& Communication Technology togenerate, transmit & distributeelectricity efficiently.
• SG: For Improving efficiency,Reliability, sustainability &Economics in G/T/D of Electricity
• S 55: Sub-section2; the provisoincluded for installation of Smartmeters for proper accounting &measurement of consumption.
Inclusion of SG in the Electricity Bill, 2014: S 79
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• SG cannot evolve withoutdynamic, flexible “Enabling”Regulations
• Regulator needs to be facilitatorto SG business (“Catalyst”)
• Discoms need to demonstrateclear positive benefits toconsumers (“Business Case”)
• Regulators more than ever needto protect the interests ofconsumers (“Avoid Tariff Shock”)& “Data Privacy Protection”
Role of Regulators in framing SG Regulations
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• On 28th Aug 2015 FOR relaesed draft modelSG regulations
• Usher greater Tech adoption to bring out:– Efficiency in operation– Enhance N/W security– Integrate RES to grid– Enhance N/W visibility & access– Improve customer– Prosumer Service level
• Enhancing network visibility & access,promoting optimal asset utilization,improving consumer service levels, therebyallowing for their participation in operations.
Objectives of FOR’s Model SG Regulations
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• Aggregator: Entity registered with DLto provide aggregation of services likeDR services, Distributed Gen, EnergyStorage etc.
• Interoperability: Measure of ease ofintegration between two systems orsoftware components to achieve afunctional goal
• Wide Area Measurement System:Advanced measurement technology,Info tools & operationalinfrastructure, facilitating themanagement of Large PS to enhanceSystem Operator’s “situationalawareness” for safe & reliable gridoperation
New Concepts definedin Model Regulations
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• Licensees to ADHERE TO Guidelinesissued by SERC through SG Cells
• To carry out Baseline study &development of data
• Formulation of SG Plans, Programs,Projects & seeking necessary approvals
• Design & development of SG projectsincluding cost benefit analysis, plans forimplementation, monitoring &reporting and for M&V
• Implementation of SG programs
• DL may combine activities related to EE,DSM & SG in the same Cell
Licensees to establish Smart Grid Cell
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• Submission of MY SG Plan along with MYTPetition
• Prior approval of SERC for projects requiringinvestments > Rs. 10 Cr.
• Proposal to include DPR, Customer engagement& participation plan, Capacity building plan
DPR to include:
• Technical Feasibility Study/ FinancialImplications
• Cost-Benefit Analysis/ Mechanism for recoveryof costs
• Implementation Mechanism: Schedule/ M&VPlan
Formulation of SG Plan, Programs, Projects
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• SERC shall approve the SGProgram/ Project
• SERC may identify costs &decide methodology, process,procedure, for recovery of suchcosts
• SERC may provide Incentive/Penalty mechanism linked tothe execution, implementation& performance during the lifeof project.
Approval of SG Plan, Program, Project Document
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• Execution to be in line with theapproval given by SERC
• System standards CEA Regulationsor Regulations notified by SERC
• For network, communication,products, interoperability & cybersecurity, Standards of BIS orrelevant IEC/ IEEE/ ANSI Standardsshall be followed in that order.
• Bureau of Indian Standards (BIS)published “Standard for the dataexchange protocol for Smart Meters,IS 15959 (Part 2)”
• SOP Regulations of SERC shall apply.
Execution of SG Programs, Projects
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• Identification of net incremental costs,if any, associated with planning, design& implementation of programs
• Licensee may propose methodology forrecovery of “net incremental coststhrough tariff” or Additional Surcharge.
• In order to qualify for cost recovery:
– each program must be approvedprior to implementation &
– Implemented in accordance with theapproved program plan
Mechanism for Cost Recovery
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• DL to Submit Detailed Project CompletionReport to SERC within one month ofcompletion of such program
• Completion report: to be available on DLwebsite
• SG project shall be monitored & evaluatedbased on appropriate methodologyincluding KPI as decided by SERC usingsuitable M&V protocols identified bySERC
• DL shall also submit Evaluation report toSERC which will include outcomes,benefits, lessons learnt & way forward.
Completion Report, Monitoring, Evaluation, M&V of execution & performance
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• Automated Metering Infrastructure • DR & Peak Load Management • Grid Integration of RES & Energy
Storage • Micro-Grids / Distributed Gen• Dist SCADA/Dist Management • OMS & Asset Management System• Wide Area Measurement Systems • EV including Grid to Vehicle (G2V) &
Vehicle to Grid (V2G) Interactions • SG Data collection & analysis • Dynamic Tariff Mechanism including
TOU etc.
Indicative list ofComponents of SG Projects
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REGULATORY SUPPORT Needed
FOR SG PROJECTS
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Dynamic tariffs are designed:
To lower PP costs for utilities
Incentivize consumers to consume duringoff-peak hours
Tariff Design for SG project area :
• Time of Use tariff
• Critical Peak Pricing
• Real-Time pricing
• Variant & Combination tariff
Time of Use (TOU): Energy prices forconsumption during these periods are setin advance) & known to consumersallowing them to vary their usage inresponse to such prices
Need for Dynamic Pricing MechanismIn Indian Context
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• MERC introduced TOD tariff for HT IND for MSEB in May 2000.
• Changes have been made in TOD tariff to encourage consumers (> 20 KW) to shift load
• HT IND Tariff: (Ps/Unit) 671 Peak: 781 Off peak: 520
MSEDCL TOD: (Ps/Unit) (Effective Dynamic Pricing Mechanism
TIME Slot
2000-01
2001-02
2003-05
2006-10
2011-12
2012-14
2015-16
0900-1200
+30 +50 +60 +80 +80 +80 +80 (12%)
1800-2200
+60 +90 +100 +110 +110 +110 +110 (16%)
2200-0600
-50 -75 -85 -85 -100 -250 -150 (22%)
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Critical Peak Pricing (CPP):
• Much higher critical peak tariff in addition to TOD tariff
• Used for days on which, peak crosses a particular limit
Extreme Day Pricing: Similar to CPP/ Higher price in effect for all 24 hours of critical days
Extreme day CPP:
• Critical peak price & lower off peak price applies to critical peak hours on extreme day
• No TOD tariff on other days
Real Time Pricing:
• Tariff vary hourly or sub hourly for entire year
• Rates notified on day ahead or hour ahead basis
Dynamic Pricing Mechanism
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• Need for Institutional Regulatoryframework for SG Projects
• SG-CC may be constituted by SERC
• SGCC: Representatives from Licensees,SLDC, Academic Institutions, CRs & SGSpecialists : Consultative approach
• To Act as Nodal Agency for implementationof SG Projects in State
• Provide assistance to SERC in evaluation ofSG projects & recommending these toSERC for in-principle approval.
• Only those projects recommended by SG-CC may be considered by SERC for approval
My suggestion: Smart Grid Consultation Committee (SG-CC)
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• SERC may create a fund under the aegis of the Commission to fund activities to be carried out by SG-CC through:
–1% of Annual Licensees fees or 1% of Annual Budget (Rs.40 L)
My Suggestion: Funding for SG-CC
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• SERC may allow create of a fund as a provision for R&D activities in SG projects in ARR of DL: 1 Ps/U sales of DL & 0.10 % of ARR of TL
• Fund can be also be utilized as Equity participation for SM Pilots of DL/TL
• MAHA Case 150,000 MU sale R&D Fund: Rs 150 CR & TL ARR: Rs 8000 CR R&D Fund: 8 Cr
My Suggestion R&D Activities in SG: Need for funds
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Regulatory support for SG required across 3 key dimensions : To overcome its challenges
Economic Safety & Standards Awareness & Capacity Building
Optimal dynamic tariff design that promotes SG Applications (TOU)
Inter-operability standards (BIS)
Consumer Awareness
Investment Approval Mechanism (SG-CC)
Standards for Cyber Security
Capacity Building for Utilities, Regulators, (NSGM/USAID)
Standards for EV Integration
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• FOR “Model SG Regulations”: Effort inright direction : A complete Code
• Need: Dedicated SG Utility cell: SGCC
• Need Fast approvals by SERCs & thenquick implementation by Utilities
• Tech standards & KPI for evaluation and Financial support needs to be built-in
• Draft SG Regulations notified by ERCs:Assam/ Karnataka/ Tripura/ MP/Haryana: Good positive beginning
Conclusions: Let Us Make a SMART beginning
Smart Crow
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Thanks! We need to work ogether!! (Contact me: [email protected])
IF IT IS TO BE; IT IS UP TO ME!!!
SGCC
NSGM
NSGM