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International Conference on
        Roadmap for Smart Grid
                     03-04 August 2011


       An Approach to smart grid pilots




                        V.Arunachalam
                             CPRI


CENTRAL POWER RESEARCH INSTITUTE
Bangalore, India
OVERVIEW


   1. Genesis
   2. Smart Grid drivers
   3. Smart Grid Philosophy
   4. Smart Grid definition
   5. Smart Grid Characteristics
   6. Typical Attributes
   7. Need for Pilots
   8. Pilots world wide
   9. WEF findings
   10. Kind of pilots

 International Conference on Roadmap for Smart Grid
                                                      2
GENESIS


   • The current energy path is unsustainable.

   • Future patterns of global energy consumption and
     production
      – Need at least 50% more energy in 2030 than it uses
        today

   • Carbon emissions are set to follow a similar track.




 International Conference on Roadmap for Smart Grid
                                                      3
SMART GRID - DRIVERS

 The key market drivers behind Smart Grid solutions

 1)   Need for more energy.
 2)   Sustainability.
 3)   Security of supply.
 4)   Need to embrace renewable energy resources.
 5)   Ageing infrastructure.

                                               Installed capacity   = 1,64,836 MW
                                               Per capita usage     = 612 kwh
                                               Energy short fall    = 10.6%
                                               Demand short fall    = 12.1%
                                                                [As of September 2010]



 International Conference on Roadmap for Smart Grid
                                                           4
Drivers for India

  Six factors

  1. Supply shortfalls - Demand continues to outpace supply.

  2. Loss reduction – AT & C loss about 25-30%,.

  3. Human element - AMR would lower recording and other errors

  4. Peak load management - Direct control or Pricing incentives.

  5. Renewable energy – 20,000 MW of solar energy by 2020

  6. Technological leapfrogging – Bring in latest technology


 International Conference on Roadmap for Smart Grid
                                                      5
SMART GRID PHILOSOPHY
                                   A reform process which aims at optimally
                                   utilizing the available energy with demand



                                          Integrated
                                         Intelligence
DG – Distributed Generation                                   DR – Demand Response
                                           Network
                                              I2N




      Courtesy - IEEE




     International Conference on Roadmap for Smart Grid
                                                          6
Smart Grid - definition



  • A “smart grid” is a digital, self-healing energy system that
    delivers electricity from generation sources, including
    distributed renewable, to points of consumption.

  • It is capable of optimizing power delivery and facilitating
    two-way flow of power and information across the grid,
    enabling end-user energy management.




   International Conference on Roadmap for Smart Grid
                                                        7
Smart Grid - characteristics
  The important characteristics of smart grid are
  1. Self-Healing and Adaptive – Rapidly detects re-configures and
      restores power supply.
  2. Interactive with consumers and markets - Motivates and
      includes the consumer and stakeholders.
  3. Best use of resources and equipment - Optimizes assets and
      operates efficiently.
  4. Predictive rather than reactive – the system operation can be
      planned to avoid emergencies.
  5. Accommodates all generation and storage options.
  6. Two-way communication across the grid - Enabling end-user
      energy management.


   International Conference on Roadmap for Smart Grid
                                                        8
TYPICAL ATTRIBUTES
                  1.    AMI
                  2.    Smart Distribution
                  3.    Consumer Portal
                  4.    Smart Pricing
                  5.    Demand Control
                  6.    Building / Home automation
                  7.    Renewable Integration
                  8.    PEV Bay
                  9.    Asset Management
                  11.   Mobile Workforce Management
                  12.   Enterprise Application Integration
                  13.   Business Intelligence
                  14.   Energy Accounting / Audit


  International Conference on Roadmap for Smart Grid
                                                       9
Need for pilots



      Smart grid pilots are essential

                Operate in lowered risk environment
                Field-test technologies
                Develop understanding
                Business model implications
                Regulatory aspects
                Mainstream roll out.




   International Conference on Roadmap for Smart Grid
                                                        10
OPPORTUNITIES AND CHALLENGES
  The industry has taken a significant step forward towrdas
  technology & opportunities to extract more insight and
  value.

  key challenges of today’s smart grid pilots:
  • Lack of regulatory measures.
  • difficulty to align and allocate risk and reward
  • Data privacy, cyber security, interoperability and standards
  • Technologies and pricing structures - make it difficult to
     understand cause and effect.
  • Consumer engagement challenges
  • Metering pilots could not convince the regulator and the
    consumer over the true benefit.
                                                World Economic Forum - www.weforum.org

  International Conference on Roadmap for Smart Grid
                                                           11
Lessons Learned
 Political and Regulatory Context
         Right regulatory and policy framework
         Drive for global standards
 Scoping Phase
         Clarity and ambition in design
         Grid vs Consumer pilots
         Successful commercial collaboration
         Experiment with new operating and business models
 Develop consumer insight
         Segment consumers by behavior
         Target business customers
 Execution
         Engage and educate consumers
         Re-engineer in the field
         Share lessons from the field
                                              World Economic Forum - www.weforum.org

   International Conference on Roadmap for Smart Grid
                                                           12
Generation pilots


       Generation pilots - To integrate all forms of Renewable
                           Energy (RE) with grid especially at LT
                           level.

       Benefits - Validation of technologically feasible energy
                  sources.
                  Study of grid connectivity challenges.
                  Standardisation of Grid connectivity.
                  Business case for small roof top RE systems,
                  Micro grids formulation and study.




   International Conference on Roadmap for Smart Grid
                                                        13
Transmission pilots




      Transmission pilots can be planned with the objective of
                          studying WAMS of Transmission
                          Network
      Benefits - Dynamic insight into Power System




   International Conference on Roadmap for Smart Grid
                                                        14
Distribution pilots
       Distribution pilots - Aim of Transforming power
       distribution process in to an information based procedure
       involving monitoring and control of MV and LV networks.

       Benefits - Structured network
                  Standardised automation,
                  MV and LV network control
                  AMI
                  Asset management
                  Outage minimisation
                   Peak management
                   Volt / Var control,
                  Load Balancing


    International Conference on Roadmap for Smart Grid
                                                         15
Utilisation pilots

       Utilisation pilots - objective of addressing
                            End use energy efficiency
                            Demand Side Management
                            Customer premises control.

       Benefits - TOU options
                  DSM / DR programs
                  Smart buildings / homes
                  Smart appliances control
                  Optimum energy utilisation
                  Plug in Electric Vehicle



    International Conference on Roadmap for Smart Grid
                                                         16
AN APPROACH
       Smart grid philosophy - centers on removing or
       minimizing supply – demand gap

       For instance
       In the chosen project area
              restrictions if any are relaxed
              existing demand will go up.

       Option 1 –       Put RE for the increase
       Option 2 -       Moderate demand
       Option 3 -       Switch of non priority loads.
       Option 4 -       Introduce TOU tariff structure to study
                        load leveling


  International Conference on Roadmap for Smart Grid
                                                       17
BESCOM pilot area – e city




                1. Advanced Metering Infrastructure (AMI)
                2. Smart Distribution
                3. Renewable Integration.
                4. Condition Based Monitoring (CBM).
                5. Consumer web portal




   International Conference on Roadmap for Smart Grid
                                                            18
CONCLUSION



      •   Pilot study is a requirement.
      •   Focused pilots with converging objectives
      •   Business case for each scenario
      •   Evolving Regulatory frame work




International Conference on Roadmap for Smart Grid
                                                     19
REFERENCES


1. The Smart Grid Vision for India’s Power Sector,
  A white paper by PA Consulting for USAID,
  India., March 2010
2. Accelerating Successful Smart Grid Pilots, World
  Economic Forum,




  International Conference on Roadmap for Smart Grid
                                                       20
Thank You..




International Conference on Roadmap for Smart Grid
                                                     21

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Smart Grid Pilots Roadmap Conference

  • 1. International Conference on Roadmap for Smart Grid 03-04 August 2011 An Approach to smart grid pilots V.Arunachalam CPRI CENTRAL POWER RESEARCH INSTITUTE Bangalore, India
  • 2. OVERVIEW 1. Genesis 2. Smart Grid drivers 3. Smart Grid Philosophy 4. Smart Grid definition 5. Smart Grid Characteristics 6. Typical Attributes 7. Need for Pilots 8. Pilots world wide 9. WEF findings 10. Kind of pilots International Conference on Roadmap for Smart Grid 2
  • 3. GENESIS • The current energy path is unsustainable. • Future patterns of global energy consumption and production – Need at least 50% more energy in 2030 than it uses today • Carbon emissions are set to follow a similar track. International Conference on Roadmap for Smart Grid 3
  • 4. SMART GRID - DRIVERS The key market drivers behind Smart Grid solutions 1) Need for more energy. 2) Sustainability. 3) Security of supply. 4) Need to embrace renewable energy resources. 5) Ageing infrastructure. Installed capacity = 1,64,836 MW Per capita usage = 612 kwh Energy short fall = 10.6% Demand short fall = 12.1% [As of September 2010] International Conference on Roadmap for Smart Grid 4
  • 5. Drivers for India Six factors 1. Supply shortfalls - Demand continues to outpace supply. 2. Loss reduction – AT & C loss about 25-30%,. 3. Human element - AMR would lower recording and other errors 4. Peak load management - Direct control or Pricing incentives. 5. Renewable energy – 20,000 MW of solar energy by 2020 6. Technological leapfrogging – Bring in latest technology International Conference on Roadmap for Smart Grid 5
  • 6. SMART GRID PHILOSOPHY A reform process which aims at optimally utilizing the available energy with demand Integrated Intelligence DG – Distributed Generation DR – Demand Response Network I2N Courtesy - IEEE International Conference on Roadmap for Smart Grid 6
  • 7. Smart Grid - definition • A “smart grid” is a digital, self-healing energy system that delivers electricity from generation sources, including distributed renewable, to points of consumption. • It is capable of optimizing power delivery and facilitating two-way flow of power and information across the grid, enabling end-user energy management. International Conference on Roadmap for Smart Grid 7
  • 8. Smart Grid - characteristics The important characteristics of smart grid are 1. Self-Healing and Adaptive – Rapidly detects re-configures and restores power supply. 2. Interactive with consumers and markets - Motivates and includes the consumer and stakeholders. 3. Best use of resources and equipment - Optimizes assets and operates efficiently. 4. Predictive rather than reactive – the system operation can be planned to avoid emergencies. 5. Accommodates all generation and storage options. 6. Two-way communication across the grid - Enabling end-user energy management. International Conference on Roadmap for Smart Grid 8
  • 9. TYPICAL ATTRIBUTES 1. AMI 2. Smart Distribution 3. Consumer Portal 4. Smart Pricing 5. Demand Control 6. Building / Home automation 7. Renewable Integration 8. PEV Bay 9. Asset Management 11. Mobile Workforce Management 12. Enterprise Application Integration 13. Business Intelligence 14. Energy Accounting / Audit International Conference on Roadmap for Smart Grid 9
  • 10. Need for pilots Smart grid pilots are essential Operate in lowered risk environment Field-test technologies Develop understanding Business model implications Regulatory aspects Mainstream roll out. International Conference on Roadmap for Smart Grid 10
  • 11. OPPORTUNITIES AND CHALLENGES The industry has taken a significant step forward towrdas technology & opportunities to extract more insight and value. key challenges of today’s smart grid pilots: • Lack of regulatory measures. • difficulty to align and allocate risk and reward • Data privacy, cyber security, interoperability and standards • Technologies and pricing structures - make it difficult to understand cause and effect. • Consumer engagement challenges • Metering pilots could not convince the regulator and the consumer over the true benefit. World Economic Forum - www.weforum.org International Conference on Roadmap for Smart Grid 11
  • 12. Lessons Learned Political and Regulatory Context Right regulatory and policy framework Drive for global standards Scoping Phase Clarity and ambition in design Grid vs Consumer pilots Successful commercial collaboration Experiment with new operating and business models Develop consumer insight Segment consumers by behavior Target business customers Execution Engage and educate consumers Re-engineer in the field Share lessons from the field World Economic Forum - www.weforum.org International Conference on Roadmap for Smart Grid 12
  • 13. Generation pilots Generation pilots - To integrate all forms of Renewable Energy (RE) with grid especially at LT level. Benefits - Validation of technologically feasible energy sources. Study of grid connectivity challenges. Standardisation of Grid connectivity. Business case for small roof top RE systems, Micro grids formulation and study. International Conference on Roadmap for Smart Grid 13
  • 14. Transmission pilots Transmission pilots can be planned with the objective of studying WAMS of Transmission Network Benefits - Dynamic insight into Power System International Conference on Roadmap for Smart Grid 14
  • 15. Distribution pilots Distribution pilots - Aim of Transforming power distribution process in to an information based procedure involving monitoring and control of MV and LV networks. Benefits - Structured network Standardised automation, MV and LV network control AMI Asset management Outage minimisation Peak management Volt / Var control, Load Balancing International Conference on Roadmap for Smart Grid 15
  • 16. Utilisation pilots Utilisation pilots - objective of addressing End use energy efficiency Demand Side Management Customer premises control. Benefits - TOU options DSM / DR programs Smart buildings / homes Smart appliances control Optimum energy utilisation Plug in Electric Vehicle International Conference on Roadmap for Smart Grid 16
  • 17. AN APPROACH Smart grid philosophy - centers on removing or minimizing supply – demand gap For instance In the chosen project area restrictions if any are relaxed existing demand will go up. Option 1 – Put RE for the increase Option 2 - Moderate demand Option 3 - Switch of non priority loads. Option 4 - Introduce TOU tariff structure to study load leveling International Conference on Roadmap for Smart Grid 17
  • 18. BESCOM pilot area – e city 1. Advanced Metering Infrastructure (AMI) 2. Smart Distribution 3. Renewable Integration. 4. Condition Based Monitoring (CBM). 5. Consumer web portal International Conference on Roadmap for Smart Grid 18
  • 19. CONCLUSION • Pilot study is a requirement. • Focused pilots with converging objectives • Business case for each scenario • Evolving Regulatory frame work International Conference on Roadmap for Smart Grid 19
  • 20. REFERENCES 1. The Smart Grid Vision for India’s Power Sector, A white paper by PA Consulting for USAID, India., March 2010 2. Accelerating Successful Smart Grid Pilots, World Economic Forum, International Conference on Roadmap for Smart Grid 20
  • 21. Thank You.. International Conference on Roadmap for Smart Grid 21