Smart Grid In India
Amit Narayan, Ph.D.,
Stanford University
Presented At: EE 402A
11/4/2010 1
Smart Grid – Areas of Interest
New Technologies Market Dynamics
Generation Wholesale Markets
o Solar, Wind, Fuel-Cells etc. o Day-ahead and hour-ahead markets
o Distributed Generation o IPPs and LSEs
Storage Retail Markets
o Utility Scale Storage o Demand Response
o Distributed Storage o New Rate Structures
o TOU, RTP, CPP, CPP-R…
Customer Participation o Retail Competition
o Smart-Meters / Smart-Appliances
o Residential Solar
o Electric Vehicles (PHEVs, BEVs)
2
Generation in India – Strong Growth in Generation
Capacity, Strong Emphasis on Renewable Sources
Capacity:
• Approx. 150 GW now (US: ~1000GW)
• >100% growth/decade until 2030
• 950 GW by 2030
Generation Mix:
• Thermal – 64%
• Hydro – 22%
• Renewable (mainly wind) – ~10%
• Nuclear – 3%
• Ministry of Renewable Energy; National Action Plan on Climate
• 18 states have Renewable Portfolio Standards; 9 states have feed-in tarrifs
• Wind – India has the world’s 3rd largest wind provider; largest in Asia (Suzlon)
• Solar – 20 GW by 2020; National Solar Mission
• Nuclear – 30 GW of nuclear by 2020; Collaboration with France, Russia, US
• Gujarat, Maharashtra, Rajasthan, Tamil Nadu pushing forward with renewables
3
Transmission Infrastructure In India
Northern Grid –
• Run-of-the-river hydro (snow fed)
• Highly weather sensitive load
• Net Deficit region
North-Eastern Grid –
• High hydro potential – micro Hydro
• Very low loads
• Electricity evacuation is a problem
Eastern Grid –
• High coal reserves – base load plants
• Low loads
• Net excess capacity
Western Grid –
• High load – industrial + agriculture
• High interest in solar / wind
Southern Grid –
• Hydro (rain dependent)
• High load (40% agriculture)
4
Transmission Infrastructure In India
5
Smart Grid for Transmission Network
• Power Grid Corp – operation of the national grid
• Growing at 40% CAGR;
• Aggressive deployment of Phasor Measurement Units (PMUs)
• Northern – already installed 4 PMUs, 20 more in progress
• Western – 25 PMUs
• Eastern – 70-80 PMUs
• Functioning wholesale electricity trading markets on commodity
exchanges
• Low volumes, ~5% of electricity traded on exchanges
• Lot of research activity related to PMUs in universities
• Optimal placement of PMUs
• Dynamic State Estimation
• Control schemes, Software for data visualization, …
6
Distribution Infrastructure In India
o 80% of villages are ‘electrified’, yet…
o 45% of the population doesn’t have access to electricity
o ~400 Million people without electricity (US population ~300 Million)
o For other 55%, power-cuts and rationing are a norm
o Aggregate Technical and Commercial (AT&C) losses are very high
o >30% on average, >50% in many states
o High electricity ‘theft’; poor policing / enforcement due to political
reasons
o Subsidies to agricultural sector
o Free or very low-cost power which is often un-metered;
o Hard to separate free power from ‘theft’
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Distribution Infrastructure In India
o ~60 Electricity Distribution companies in India
o Generally state-owned monopolies
o Generally loss making entities (average loss 11% of sales / year
mainly due to high AT&C losses and poor revenue collection)
o Reform of the distribution sector identified as a key need by the
government -
o APDRP, R-APDRP – Reducing AT&C losses a key focus
o Open-Access for the distribution network to foster competition
o Laws against theft - better enforcement, better communication
o Privatization & Franchising of distribution network
o Demand Side Management – especially in agricultural sector
o Rationalization of tariffs and removal of cross-subsidies
8
High Penetration of Distributed Energy Resources
o Many customer segments taking things in their own hands -
o Industrial centers, Software Export Zones (SEZs) have their own
captive generation
o Large residential complexes usually have near-100% power back-up
through captive generation
o Small residential customers have a high penetration of distributed
energy resources -
o Diesel-generators
o Battery-Inverter packs – peak-load shifting and load management
o No active government policy to encourage distributed generation
and storage (except renewable), yet a high-level of customer
adoption
o Feed-in tariffs, micro-grid creation, tax-incentives…
9
One Smart-Meter for Every House?
o Smart Metering coming to India -
o Driven by the need for reducing AT&C losses
o Measurement the first step towards improvement
o Some companies are already active – Echelon, GE, Landy+Gyr
o Can we build & deploy a smart-meter for $10-$20 ?
o US Typical smart-meter deployment cost is around $200-$250 / meter
o e.g. Baltimore installing 2 Million smart meters @ $450 Million
o Bill-of-Material is $50-100; rest is labor and back-office software
o We can build a laptop for $10 (One Laptop Per Child program)!
o Custom SoC, open-source software, low-installation cost
10
Water-Power Nexus in India
• High ground water usage for irrigation and household consumption
• Significant energy consumption in pumping ground water
• Poor power quality and unreliable power supply leads to inefficient use of of
ground water & electricity
• Subsidies to agricultural sector leads to poor / unreliable supply
• Opportunity to break the vicious cycle by –
• Demand Side Management
• Distributed Renewable Integration
• Higher efficiency equipment 11
On-going Smart Grid Activities in India -
o APDRP, R-APDRP initiative for distribution reform (AT&C focus)
o DRUM India – Distribution Reform Upgrade, Management
o Four pilot sites (North Delhi, Bangalore, Gujarat, Maharashtra)
o Smart Grid Vision for India
o Smart Grid Task Force – Headed by Sam Pitroda
o BESCOM project – Bangalore – Integration of renewable and distributed
energy resources into the grid
o KEPCO project in Kerala India - $10 Billion initiative for Smart-Grid
o L&T and Telvent project – Maharashtra – Distribution Management System
roll-out
o Housing –
o Rabirashmi Abasan Housing project – Kolkata (2008). First instance of net-
metering in India from roof-top Solar
o SA Habitat and Valence Energy – Hyderabad (2009) . Distributed generation via
roof-top solar for 40% in a micro-grid
12
Conclusion
o Lot of excitement around Smart Grid in India
o Power Infrastructure recognized as a key bottleneck in India’s growth
o Favorable government policies / investments
o Rural electrification, renewable generation, distribution reforms
o Implementation requires education and marketing of benefits to
consumers and implementers
o Strong leadership team coming together
o Opportunity to customize US / western solutions for Indian conditions
o Cost / feature trade-off;
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