1) The document discusses India's growing power sector and the need for a smarter grid to address issues like rising demand, transmission losses, and renewable energy integration. 2) Key drivers for a smarter grid include reducing transmission and distribution losses, managing the intermittent supply from renewable sources, and enabling demand response. 3) The smarter grid will require new technologies, business models, and regulatory frameworks to transform the grid from centralized generation to an integrated system with two-way power flows.

1. Dr Shailendra Fuloria, Manager – Smart Grids, ABB Ltd , India 26th Aug, 2012
Towards a smarter grid
Combining technology, policy and
regulation

2. India Power sector scenario
Fast capacity addition, loss reduction, inefficient consumption
Installed generation capacity (GW) Transmission Network (x1000 ckt kms)
>= 66kV
304 359 385 394 402 409
206
2002 2007 2008 2009 2010 2011
174
159
148
143
132
< 66kV
105
5726 6581 6902 7079 7094 7392
2002 2007 2008 2009 2010 2011 2012 2002 2007 2008 2009 2010 2011
Per-capita electricity consumption (kWh) Electricity to produce 1$ of GDP (kWh)
779 813
717 733 Improving Delivery efficiency
672
0.72
0.70
0.69 0.68
0.66 0.66
Reducing Consumption efficiency
0.59
0.56
0.54
0.53
0.50 0.50
2007 2008 2009 2010 2011 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Consumption Generation
© ABB Group
August 31, 2012 | Slide 2
Source: Ministry of Power, ‘Growth of Electricity Sector in India from 1947 – 2011 ’

3. Installed generation capacity
Demand-supply gap despite substantial capacity addition
Installed generation capacity (GW) Peak Demand vs Demand Met (GW)
19.68%
Peak Demand Demand Met
218
301
175
10.6%
200
130
174
122
119
116
159
110
110
109
148
104
143
101
97
132
91
87
Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 2017 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2016-17
• Installed capacity to double between 2010 - 2017
• Peak supply-demand gap expected to increase from 10.6 to 19.68%
• Need policy support towards ‘time-of-use’ tariffs
Strong driver for ‘Demand Response’
© ABB Group
August 31, 2012 | Slide 3
Source: Ministry of Power, ‘Growth of Electricity Sector in India from 1947 – 2011 ’, CEA reports

4. T&D losses among highest in the world
Potential to save over 10 BUSD per year
Transmission & Distribution losses (percentage)
10.1
15.8
24.0
13.1
7.4
8.9
6.3
7.1
5.4
6.2
5.2
3.8
7.6
6.1
9.0
 Average T&D losses (2010-11) = 24%  approximately 13 BUSD loss
 Money saved if T&D losses are equivalent to Korea = 10.77 BUSD
 Money saved if T&D losses are equivalent to World average = 8 BUSD
© ABB Group
August 31, 2012 | Slide 4

5. Renewable potential
Sustainable integration of renewables a driving factor
Renewable installed generation (GW)
44
39
35
31
28
25
2012 2013 2014 2015 2016 2017
More than 80% generation is concentrated in the following 5 states
Leading States Installed Generation (MW)
Tamilnadu 7338.01
Maharashtra 3630.05
Gujarat 3498.64
Karnataka 3183.23
Rajasthan 2365.55
© ABB Group
August 31, 2012 | Slide 5

6. Strong drivers towards a new type of power systems
Consequences
Conv. System
Driver Transmission Distribution Application
generation operation
 FACTS
Remote, bulk  Long dist. transm.  Stabilization
generation with FACTS
 Overlay grid/ HVDC
 Communi-
 Automation
Distributed cation
 Voltage
generation  Control
regulation
 VPPs1
 High effi-  Trans-regional  Storage (in
leveling  Demand
Volatile ciency all over  Distributed applications)
response
generation output range  Overlay grid/ HVDC storage  Demand
 VPPs1
 Flexibility  Bulk storage response
Cost pressure,  Automation  Automation
ageing infra-  Demand
 Asset
health  Asset
health
structure, response
reliability management management
New loads  Charging  Demand
(E-mobility) infrastructure response
© ABB Group 1 VPP: Virtual Power Plant
August 31, 2012 | Slide 6

7. From traditional to smart grids
 Centralized power generation
traditional grid
 One-directional power flow
 Generation follows load
 Top-down operations planning
 Operation based on historical experience
 Centralized and distributed power generation
smart grids
 Volatile renewable power generation
 Multi-directional power flow
 Flexibility in demand – load follows
generation
 Operation based on real-time data
© ABB Group
August 31, 2012 | Slide 7

8. Smart Grid is also a regulatory and policy issue
Many players need to be informed consistently
political leaders
Smart Grid as key to achieve
consumers / voters / NGOs
electricity targets
government departments,
regulators
parliaments
legal framework
utility CEOs, boards
investment plans to support
business targets
technical and sociable solutions to achieve targets
© ABB Group
August 31, 2012 | Slide 8

9. Smart Grid, a puzzle based on:
An evolution challenging the entire power system (OT)
Increased transfer
capacity and
Connecting large Energy storage
scale renewables
Charging Improved Active consumer
infrastructure control of the Micro generation
E-mobility distribution
system
Increased need Improved
Improved
of balancing control and security
power quality
power of the network
Business models Policy Standards Regulation
© ABB Group
August 31, 2012 | Slide 9

10. IT becoming more prominent in power systems
Smart Grid IT solution map
Physical Asset & Work Mgmt. Mobile Workforce Mgmt. Customer Mgmt.
Asset Mgmt. -Operations Mgmt. Forecasting & Planning Customer Information
-Supply Chain -Safety & Compliance Scheduling & Dispatch Billing Management
-Work Mgmt. Mobile Work Execution Call Center Management
Network Management Systems
SCADA: Supervisory Control & Data Acquisition
Generation Coordination & Control -Security Control & Assessment -System Monitoring
-Automated Generation Control -Switching Control -Switching Orders
-Real Time Market Communications -Transmission Coordination -Reliability Control
-Control Area Function -Reliability Management -Volt/VAR Optimization
Energy Commercial Operations Energy Planning & Analytics
Forecasting & Analysis -Market Data Intelligence
Load & Rev Forecasting -Unit Optimization & Bidding
Market Price Formation -Advisory Energy Consulting
Demand Response -Physical Scheduling
-Portfolio Analysis and Planning
Trading & Risk Mgmt -Market Comms & Settlement
Smart Grid Operations
© ABB Group
August 31, 2012 | Slide 10

11. Integrating Operations Technology with IT
© ABB Group
August 31, 2012 | Slide 11

12. Efficient generation, transport and better utilization of
electricity
Commercial
Primary energy Transport Generation T&D Industry Residential
30 % saving
80 % losses
Available energy
Improved well Improved More efficient Lower line losses,
efficiency pipeline flows higher substation Improved
fuel combustion
efficiency productivity Building
management
Energy efficiency along the value chain can reduce losses by 30 percent
*Source: European Commission
© ABB Group
August 31, 2012 | Slide 12

13. Integrating supply and demand side
MEREGIO – Minimum Emission REGIOn, Germany
 Develop and install a complete IT-
system covering automated meter
reading (AMR), remote control for
distributed generation (DG),
communication infrastructure, network
control system and accounting system
in a distribution network area of EnBW
in Karlsruhe (Germany)
 Optimize spinning reserves with
increased amount of renewables
 Reduce transmission losses
 Demand response (regulatory demand)
- real time price information
 Optimize electricity consumption
– home automation
© ABB
2011-10-25
SG_IntroABB_20110502.ppt |
GF-SG | 13

14. Minimum Emission Regions (MEREGIO)
System-Structure
E-Energy
MEREGIO Market Place Billing market place /
System-Structure energy / balancing power / services commercial
Variable Tariffs
systems
Certification
CO2-Emissions
of network
ABB-Parts Billing operator
Milestones Market Place CORE network usage and
Challenges of smart- ancillary services Plattform ancillary services
grid projects Middleware
Summary technical
systems
Network Control Interface to of network
SCADA and operator
network applications Smart Meters
Distribution Autom.
RTU, communication
bay level
Smart Meters Smart Meters
customers
Generation / Storages Consumption
Web-Services / E-Mail Web-Services / E-Mail
© ABB Group
August 31, 2012 | Slide 14

15. Stockholm Royal Seaport project - Sweden
Targeting 1.5 t CO2 per annum per capita by 2020 and neutrality
by 2030…
Customers
• Fortum (a leading Nordic energy company)
• Stockholm Municipality
Focus areas
• Efficient energy use
• Environmentally efficient transports
• Local recycling
• Environmental life styles
• Regulatory framework
Project highlights
• Timeline: 2010 – 2030
• Scope: 10,000 apartments, 30,000
workplaces and required infrastructure
• The first installation of secondary
substation according to Smart Grid
specifications is planned for 2012
• First set of apartments will be ready to
move in by Q1 of 2013
• Integrated functional tests: Q2 of 2013
© ABB Group
August 31, 2012 | Slide 15

16. Karnataka Power Transmission Corporation Limited
Integrated Extended SCADA
 Designed to be the largest EMS & DMS
data handling SCADA project in the world
 First project in India covering Entire State
Electricity Network of Generation,
transmission & Distribution
 First SCADA Project implementation in
India with MFTDMA VSAT Communication,
connected to 867 Locations across
Karnataka through INSAT 3A with
communication bandwidth of 11.5 MHz.
Another 450 locations added subsequently
 First SCADA Smart Grid Project
implementation in India with
SCADA/EMS/DMS/ Energy Billing, Energy
Auditing & ABT Meter Interface
© ABB Group
August 31, 2012 | Slide 16

17. Conclusions
 Smart Grid is the evaluation of today's systems and the enabler for a
more sustainable energy system with a more consumer driven
electricity market which includes:
 integration of renewable energy sources, efficient energy
consumption, AMI etc.
 Both transmission and distribution
 both automation/IT and power devices
 both technology, business models and regulatory/market
frameworks
 Smart Grid is still a learning process. An important arena to develop and
demonstrate solutions for the future power system together with all stake
holders including authorities and end users
 Most of the components and systems needed exists today but new
standards must be developed
 Everyone has to reconsider the individual energy consumption behavior