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Smart Grid: Implementation, Challenges & Way Forward Presented By:- KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: www.nsgm.gov.in 1

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Page 1: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Smart Grid: Implementation, Challenges & Way Forward

Presented By:-

KUMUD WADHWA

Sr. General Manager

National Smart Grid Mission-PMU

Ministry of Power, GoI

Website: www.nsgm.gov.in 1

Page 2: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Smart Grid Maturity Model

Measured

Estimated

Automated

Manual

Widespread

Limited

L-5

L-4

L-3

Information Processes Communications

OptimizeAnalyze

CommunicateMonitorMeasure

Customer Operation Grid Operation Work and Asset

Management

OptimizeAnalyze

CommunicateMonitorMeasure

OptimizeAnalyze

CommunicateMonitorMeasure

Cross Domain Integration and Optimization

Innovation and Optimization along the Supply Chain

Intr

a-D

om

ain

O

pti

miz

atio

nD

om

ain

In

fras

tru

ctu

re

2

Page 3: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Radial feeder without backup and manual fault location identification, rectification and

system restoration

Fault location detection through FPI

With the use of RMUs, switches

Real-time analysis & control of systems with FLISR

Smartness is Step-by-Step & Continuous

Un-measured

Measured

Smart

IntegratedWith the use of AMI, OMS, PQM,PLM, GIS,SCADA

Managed

Technology Evolution

Automated system, Much time saved, one section affected till fault rectification, other section till isolation of fault

Restoration can be faster with analysis and AMI

Whole system affected till fault rectificationmuch delay in Restoration

Fault location identification is fasterWhole network affected from fault

Reliability of system improve with alternate sources of supply

Appropriate use of

network flexible devices, sensors,

networking of above and analysing

software make system Smart

3

Page 4: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

4

Smart Grid Vision For India

“Transform the Indian power sector into a

secure, adaptive, sustainable and digitally

enabled ecosystem that provides reliable

and quality energy for all with active

participation of stakeholders”

Page 5: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Evolving Power Sector

5

Page 6: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Challenges of EV Proliferation

Increase in Harmonics

Managing Mobile Load

Managing Charging Infrastructure

Controlled charging requirements to manage peak load

Performance Expectations

• Utility to Consumer

• Consumer to Utility

• 3rd Parties to Utility

• Utility to 3rd Parties

Prosumer Enablement

6

Page 7: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Public Charging Stations

Type Connectors Rated Voltage (V)No. of points/connector

Guns (CG)

Fast

CCS (min. 50 kW) 200-1000 1/1

CHAdeMO (min. 50 kW) 200-1000 1/1

Type-2 AC (min. 22 kW) 380-480 1/1

Moderate / SlowBharat DC-001 (15 kW) 72-200 1/1

Bharat AC-001 (10 kW) 230 3/3 of 3.3 kW each

MoP Guidelines for Charging Station➢ Transformer with all related equipment including safety➢ 33/11 kV cables with metering➢ Civil works and adequate space for parking, entry and exits➢ Adoption of international standards as well as Indian standards (published by BIS)➢ Tie up with online network service providers (NSP) to enable advanced/remote booking with geo

tagging, types and availability information➢ Minimum charging points shall be installed as per below table

Each Charging station need to provide connected load of minimum 150 Kw and acharging station may be required after every 2-3 kms. 7

Page 8: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Challenges of RE Integration

Economic, Policy, and Regulatory Challenges

• Capital-intensive grid upgrades

• Uncertain RE project costs and cash flows

• Commercial impediments to real power balancing such as UI prices

• Generation planning with adequate share of flexible generation to respond to system variability

Technical Challenges

• Managing variability and uncertainty during the continuous balancing of the system

• Balancing supply and demand during generation scarcity and surplus situations.

• Voltage management due to heavy reactive power draw by RE generators

• Sudden ingress or withdrawal of RE from grid require tertiary resources with quick ramp-up rates for balancing

8

Page 9: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

RTPV: Technical Issues and Challenges

Issues at MV and LT level:

1. Voltage rise: If the generation from PV resources are high enough to offset the loads on the feeder, the surplus power will create voltage rise. With cluster-based installation of PV, the voltage rise impact may propagate to upstream MV network.

2. Effect of clouds: PV output ramps up and down at high rates as per the irradiation level. At certain locations, voltage at inverter end may exceed beyond a certain limit, which may cause undesirable tripping

3. High neutral current: Unbalanced allocation of PV units can create a high neutral current, particularly in the mid-day, when reverse power flow is at the peak level.

4. Lower power Factor: Along with PV generation, reactive power compensation or power factor improvement is needed.

5. Variation of feeder power loss: Power loss may vary due to the variation of PV output throughout the day.

6. Voltage Unbalance: As the allocation of inverters of a feeder are varied by the category of customers, the distribution of PV generation may not be equal at all the phases.

7. Change in tap operations: Voltage rise caused by PV clusters may require the regulators to operate during midday to keep the voltage profile below the upper limit

9

Page 10: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Discom Business challenges

“With an average load of 1 KW per household and average use for eight hours a day, an additional 28,000 MW would be needed every year to meet the demand created under Saubhagya ”

Increase in technical losses due to expansion of network, consumers mostly subsidised and with lesser revenue realisation rate. Billing Challenges.

Delhi’s peak power demand during the summers of 2019 around 7400 MW.

Penalty/ incentive for harmonics. Draft amendment proposes that the utilities should record and report in public the data pertaining to harmonics, voltage sag, and swells and disruptions on a monthly basis

5,595 electric buses for 64 cities under the FAME India scheme's second phase. Charging load of Tesla may range from 120kW to 10kW with charging time of 0.5 hrs vs 9hrs for 426 km run

Stranded and Under Utilised assets. Higher capex resulting into tariff hike and operational inefficiency

Proposal to pay damages to consumers in case of load shedding

10

Page 11: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Discom Business challenges“Distributed Generation like Solar Roof Top : Loss of subsidizing consumers and cross subsidy, tariff hike of poor .

Cumulative DISCOM losses may touch pre –UDAY level figure of 2.8 lakh crore

MNRE directive to ensure ‘must run’ status to both wind and power projects in line with the Indian Electricity Grid Code 2010and the Electricity Act 2003.

Now mandatory for DISCOMs to open and maintain enough Letters of Credit as the payment security mechanism under power purchase agreements.

CERC proposes for 100% power sale in spot market

Challenges of Power Planning and Scheduling. If enough power not contracted then can not supply 24*7 or else stranded assets

Supply and Network Business Separation

Prosumer Enablement

Mobile Load Management

16/Aug/19 Presented By:- Kumud Wadhwa, Sr. GM(NPMU) 11

Page 12: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Flexibility Needs for System

Flexibility for Power

Flexibility for Energy

Flexibility for Transfer Capacity

Flexibility for Voltage

SMART GRID by adopting Information and Communications Technology to facilitate bidirectional flow of Energy and Information for flexibility needs.

12

Page 13: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Smart Grid Solutions System Balancing

Better forecasting

• Widespread instrumentation and advanced computer models allow system operators to better predict and manage RE variability and uncertainty.

Smart inverters

• Inverters and other power electronics can provide control to system operators, as well as to automatically provide some level of grid support.

Demand response

• Smart meters, coupled with intelligent appliances and even industrial scale loads, can allow demand-side contributions to balancing.

Integrated storage

• Storage can help to smooth short-term variations in RE output, as well as to manage mismatches in supply and demand.

Real-time system

awareness

• Sensors across networks allows system operators to have real-time awareness of system conditions, and the ability to actively manage grid behavior.

13

Page 14: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Top-5 Ranked Technologies for SG Drivers

Source: ISGAN Annex-2 Survey from 19 participants

0 5 10 15 20 25 30 35

Systemefficiencyimprovements

Reliabilityimprovements

RE standards ortargets

Enabling customer choice andparticipation

Enabling newproducts,services, andmarkets

Reducingoperating and maintenance costs

Advanced metering infrastructure (AMI)Distributed energy resources integration

Smart network management for coordinated transmissionInformation and communications technology

Renewables energy sources integration

Fault detection, identification, and restoration (FDIR)Distribution management systems and outage management

Distributed energy resources integrationAdvanced metering infrastructure (AMI)

Smart network management for coordinated transmission

Renewables energy sources integrationWind

Distributed energy resources integrationSolar photovoltaic and solar thermal energy

Hydro power

Advanced metering infrastructure (AMI)Smart homes

Information and communications technologyDistributed energy resources integration

Distribution management systems and outage management

Advanced metering infrastructure (AMI)Smart homes

Information and communications technologyDistributed energy resources integration

Building energy management and automation

Condition-based monitoring and maintenanceDistribution management systems and outage management…

Advanced metering infrastructure (AMI)Information and communications technology

Distribution feeder circuit automation

14

Page 15: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Smart Grid Pilot Projects

11 pilots including SGKC

1.56 lakh Smart Meters installed out of 1.66 lakh envisaged

10 out of 11 pilots declared go-live / completed / commercially operated

Remaining 1 pilot nearing completion

Completed / Declared Go-Live / Commercially OperatedNearing CompletionMap not-to-scale

Guwahati, AS

(APDCL)

Jeedimetla, TS

(TSSPDCL)

Kala Amb, HP

(HPSEB)

Panipat, HR

(UHBVN)

Manesar, SGKC

(POWERGRID)

IIT Kanpur

(IITK)

Siliguri, WB

(WBSEDCL)

Agartala, TR

(TSECL)

Puducherry, PY

(PED)

Mysore, KA

(CESC)

Naroda, GJ

(UGVCL)

N

➢ New generation communication technology with improved performance based on RF mesh developed as an evolution of Technology deployed at CESC, Mysore

➢ PLC technology performed well in Tripura SG Pilot➢ Two new product (Smart Meter) developed & deployed

16

Page 16: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Smart Meter: Benefit Analysis

• Meter Readers (third party*) walk from

house to house to capture meter data.

• Manual Punching of meter data by

employees

• Field visits required to verify if meter is

functioning correctly/ damaged

• Manual visits for meter disconnection/

reconnection

• Send interval data directly to the utility

and hence eliminating most of manual

meter reading and punching labor costs

• Real-time remote diagnostic to determine if

meter is operating normally. If meter

receiving voltage, no field personnel

required to investigate

• Enable auto disconnect/ reconnect

Current Operations Smart Meter OperationsK

ey B

en

efi

ts

Meter

Reads

Meter

Operations

Billing

• Overall Billing cycle takes around 15-

20 days

• Average or provisional billing for cases

of meter failure or inaccessible

consumer

• Billing cycle to reduce by 11 days

• No cases of average billing

• Estimated and done at sub-

division/sub-station level/feeder level

• Enable near real time energy accounting

at Feeder and DT level. Energy

Accounting

17

Page 17: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Smart Meter: Benefit Analysis

• Current meters do not offer

capabilities to detect

tampering (mis-wired or

bypassed meters)

Generate tampering alarms and

monitored meter data to identify

theft.

Current Operations Smart Meter OperationsK

ey B

en

efi

ts

Power Theft

• Large no. of complaints

related to meter reading and

billing

• Revenue department involved

in both recovery and

grievance redressal

Enable reduction in consumer

complaints on bill, meter failures

and outages and hence reducing

cost for grievance redressal

Grievance

Redressal

• Lack of accurate records on

sanctioned load

• Sizing of DT based on

estimates

• Reduced Distribution Transformer

Failure

• With monitoring of sanctioned load

use and utilization of DT, optimized

transformer load planning can be

undertaken

Load

Management

18

Page 18: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

19

Technology Readiness Level (TRL)

AMI

TRL 9

System proven in operational environment

TRL 8

System complete and qualified

TRL 7

Integrated pilot system demonstrated

TRL 6

Prototype system verified

TRL 5

Laboratory testing of integrated system

TRL 4

Laboratory testing of prototype component or process

TRL 3

Critical function, proof of concept established

TRL 2

Technology concept and/or applicationformulated

TRL 1

Basic principles are observed and reported

Page 19: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

20

TRL for smart grid drivers

AMI

Revenue Efficiency Improvement

Reliability Improvement

Reducing O&M Cost

Enabling New Products, Research & Market

Enabling Customer Choice & Participation

{

{

TRL 9

System proven in operational environment

TRL 8

System complete and qualified

TRL 7

Integrated pilot system demonstrated

TRL 6

Prototype system verified

TRL 5

Laboratory testing of integrated system

TRL 4

Laboratory testing of prototype component or process

TRL 3

Critical function, proof of concept established

TRL 2

Technology concept and/or applicationformulated

TRL 1

Basic principles are observed and reported

Page 20: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

National Smart Grid Mission

NSGM has been established vide MoP dtd 27th Mar 2015 and Extended till Mar 2020 vide OM dtd 7th May 2018 (Total Outlay 990 Crore with GBS of 312 Crore) with institutional framework as below:

21

Bilingual websitehttps://www.nsgm.gov.in

Governing CouncilChair – Minister of Power

Convenor – AS (Tx) *

Empowered CommitteeChair – Secretary (Power)

Convenor – AS (Tx)*

NSGM Project Management Unit

Head – Director NPMU

State Level Project Management Unit

Chair – Energy Secretary (State)

Utility Smart Grid CellsSmart Grid Knowledge

Centre (SGKC)

Technical CommitteeChair – Chairperson, CEAMem. Secy. – Dir. NPMU

Page 21: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Mission Update - Achievements

• Five projects sanctioned (₹686.6 Cr.) for ~7.50 lakh consumers. 2 projects under approval and 2 projects in pipeline

• Smart Grid Readiness – Self Assessment Tool (SGR-SAT)

• Smart Meter Rollout plan submitted

• Impact assessment of Pilot projects done by QCI

PROJECT PLANNING

AND MONITORING UNIT (PPMU)

• 9 National & 3 International workshops

• SG Course Developed

• 11 Training programs for utilities (320 utility engineers/professionals)

• Bilingual website

• Regular participation in ISGAN and Mission Innovation

CAPACITY BUILDING AND COMMUNICATI

ONS UNIT (CBCU)

• IS 16444 (Part 1 & 2) and IS 15959 (Part 2 & 3)

• Model Smart Grid Regulations

• NSGM Framework, Model RfP & Model DPR

• Active participation in LITD 10, LITD 28 and ETD 13

TECHNOLOGY AND

STANDARDS UNIT (TSU)

• AMI use cases developed

• Workshop on cloud infrastructure & interoperability in association with TSDSI

• NSGM website enforced with HTTPS

INFORMATION AND CYBER

SECURITY UNIT (ICSU)

22

Page 22: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

• Training MoUs with

• CPRI, Bangalore

• NPTI, Faridabad

• SLPMU meetings held /Proposed

• 5 out of 19 SLPMU

• SLPMU formed for

• 19 out of 37 states /UTs

• Plug & play/ Modular Communication Module

• Standardization of Sub-Ghz RF profile

• Cloud infrastructure’s interoperability

• Projects Worth Rs.800 Crs. pending -lack of funds-

✓ Agartala (TSECL), Naroda (UGVCL), Mumbai (Tata Power), Mysore (CESC), Chennai (TANGEDCO)

• High (70%) counterpart funding

• Microgrid relevance w.r.t. Grid extension

• Distributed Renewable energy source penetration- Circle wise

• Reliability improvement (Circle/feeder/DT/Discom)

• DR relevance in supply sufficiency.

NPMU Challenges

PROJECT PLANNING

AND MONITORING UNIT (PPMU)

CAPACITY BUILDING

AND COMMUNICATIONS UNIT

(CBCU)

TECHNOLOGY AND

STANDARDS UNIT (TSU)

INFORMATION AND CYBER

SECURITY UNIT (ICSU)

23

Page 23: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

24

Smart Grid – Role of Regulators

• Smart Grids cannot evolve without dynamic,

flexible regulation (“Enabling”)

• Regulator will be a facilitator to smart grids

business (“Catalyst”)

• Discoms need to demonstrate clear positive

benefits to consumers (“Business Case”)

• Regulators more than ever need to protect the

interests of the consumers (“Avoid Tariff

Shocks”) and (“Data and Privacy Protection”)

Investment Approval Recovery through Tariff

Promoting end use Providing Incentives

Delivering policy objectives.

Ensuring value and protection to customers

Page 24: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

INVESTMENT

Page 25: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

27

AMI: Service Model

Smart Grid ServicesPROJECT For 5.5 lac consumers

Monthly Fixed Charges Base Cost (@4900)

1.0. Project Cost '(Grant+Utility fund 50%, SGIA Equity 50%) 269.9

SGIA Investment 135

2.0. Fixed Charges

2.1.O & M Charges (@ 7.5 %)

(In line with ULDC practice)20.25

2.2 Depreciation (@12.86 %)(For Repayment of SGIA Investment) 17.36

Considering Project Lifecycle-7 years

2.3 Return on SGIA Equity @12% 16.2

2.4 Interest on Domestic Loan @10.5 % 0

2.5 Interest on Working Capital @ 12.8 %

a) on 2 months receivables 1.15

b) O & M (1 month) 0.22

c) Maintenance spares @ 15% of O& M expenses 0.39

Total Annual Fixed Charges 55.55

3.0. Monthly Fixed Charges (for Base Cost) 4.63

AIA to be paid Rs/month/consumer for 7yrs 84

Page 26: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

28

AMI: Service Model

• Consumers- 5.5 lacs

• Energy Input- 3500MU

AT&C ReductionY15 %

Y22%

Y31%

Y41%

Y51%

Y61%

Y71%

Revenue projections

(business as usual

scenario) (Rs. Cr.)

2081 2194 2285 2381 2480 2583 2660

Increased Revenue for

Utility due to Smart AMI

(Rs. Cr.)

82 135 165 196 230 265 273• Present Revenue -1941 Cr

• AT&C losses- 20%

26.45

79.45109.45

140.45174.45

209.45217.45

0

50

100

150

200

250

Y1 Y2 Y3 Y4 Y5 Y6 Y7

Net Revenue for Utility YoY (Rs. Cr.)

• Profitable from the first year of operations

• Overall net revenue of Rs. 957 Cr. over 7 years for the utility

Page 27: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

29

Funding Mechanism-Investment Business Model

Smart Meter Comms Collector/DCU HES MDM

Input Power Mgt : High charge agreement at Peak

Demand Response : Asses Stress

Analytics

Data Reading

1Data Transportation

2Data acquisition & Control

3Data Analytics

4

AT & C Loss/min 20%

Outage – Opportunity loss

High Revenue Customer Satisfaction : DG free/Customer engagement : opportunity loss Electric Vehicle

Mo

del

System Level SLA : L+G

MAP/MSP

Capex Opex/endpoint/month

Capex Opex/endpoint/month

Return on Fixed Duration Capex

Capex – Investor based model

Capex Opex/endpoint/month Capex

Business Level SLA : TPDDL

DT Metering/DTMU : No of DT burn/year

Dri

vers

CSP DSP

Return on

NSGM fund 30% Utility fund 20% Investor 50%

Upfront money to SP Utility Benefits through Business case and reliability charge/unit to consumer

DER - Futuristic

Co

mp

on

ents

Act

ors

Plan → Build → Operate → Own

Page 28: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

30

Key Regulatory Considerations for Smart Grid ProjectsInvestment Cost Recovery – Specific Tariff Schemes and Designs

This recovery method involves introduction of specific schemes to incentivize users for promoting a particular application that is likelyto benefit the stakeholders

System operators such as PJM Interconnector USA publish Critical Peak Pricing (CPP) rates, (normally during times of stress for a period of 2 weeks and related to summer cooling load) that encourage downstream connected entities to reduce consumption during this time

Specific Tariff Scheme: CPP

RTP programs are offered by Ameren Illinois and ComEd in Illinois, USA where consumers pay electricity supply rates that vary by the hour. With Ameren's residential real-time pricing program, hourly prices for the next day are set the night before and can be communicated to consumers so they can determine the best time of day to use major appliances

Specific Tariff Scheme: RTP

Through a 3rd party service provider (EnerNoc), Midwest Energy in the US targets consumers with peak summer demand > 30kW. For accounts having 40hp motors at pumping sites there is no charge for participation and sites with a 25hp motor can participate by paying a $500 installation fee. For participation, Midwest Energy pays $20 per kW of interrupted capacity

EnerNoc Incentive Scheme

Source: http://www.enernoc.com/our-resources/case-studies/547-midwest-energy-grows-new-energy-supply-with-enernoc-agricultural-demand-response

Page 29: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

31

California Utility Electric Rate Plan Options

Tariff Plan Rate plan details Ways to save money and energy

Time-of-Use (Peak Pricing 4 -9 p.m. Every Day)

• It includes a baseline credit that offers residential customers a price discount for usage below their baseline allowance.

• This rate offers bill protection for the first year.

• Save money by reducing energy use within the lower-priced tier (baseline allowance).

• Shift usage to the least expensive hours: before 4 p.m. and after 9 p.m. every day.

Time-of-Use (Peak Pricing 4 -9 p.m. Weekdays) E-TOU-B

• This rate plan has no pricing tiers or baseline allowance.• Prices vary based on time of day, day of the week, and the

season.

• Reduce your energy usage overall. • Shift usage to the least expensive hours: Mon-Fri or any

time on weekends and most holidays.

Time-of-Use (Peak Pricing 3 -8 p.m. Weekdays) E-TOU-A

• This rate plan’s prices vary based on the time of day electricity is used, day of the week, and the season.

• It includes a baseline credit that offers residential customers a price discount for usage below their baseline allowance

• Save money by reducing energy use within the lower-priced tier (baseline allowance).

• Shift more usage to the least expensive hours: before 3 p.m. and after 8 p.m. Mon-Fri or any time on weekends and most holidays.

Tiered Rate Plan E-1• This rate plan has multiple pricing levels, known as tiers.• After exhausting allotted electricity quota for each tier within

a billing period, you move to the next, higher priced tier.

• You can save money each month by using less electricity and avoiding the higher-priced tier. Prices do not vary throughout the day.

Home Charging EV2-A (Non-tiered, Time-of-Use)

• One meter is used for both EV/battery charging and home energy use. The price for usage varies depending on the time of day.

• Save money by charging your EV during off-peak hours.• Consider shifting other household energy use to less

expensive, off-peak hours, especially 12 a.m. to 3 p.m.

EV-B (Non-tiered, Time-of-Use)

• Involves installing a second (separate) electric meter for charging your EV.

• The price you pay for vehicle charging is based on the time of day, and day of the week.

• Save money by charging your EV at night during offpeak hours, especially after 11 p.m. on weekdays and after 7 p.m. on weekends and holidays.

Page 30: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Electricity Vending System (EVS) – A Singapore Case Study

Siemens Power

Automation

Feasibility study found that-

• System will pay off within 3 years by reducing the operational costs and bad debts.

• It will bring benefits to end consumers who will enjoy lower tariffs bills due to competition, choice of TOU

packages and usage pattern changes.

- EMA guarantee to pay anyone the difference if they actually pay more over the period of the trial by

participating in the EVS pilot.

• Pre-Trial Run :

Collect readings for post payment from two months to SP Services Billing system

• Actual Trial Run :

✓ Prepayment option only

✓ 3 pseudo retailers

• 455 EVS meters:

– 206 Volunteers

– 229 Repeaters (mesh)

– 5 Concentrators• Survey Findings

– For the same period of time, the volunteers’ consumption were found to rise less than the national average (Less by 2% overall consumption)

– Load Shifting, Load Saving – Awareness of Usage (Shift of load of 10% from peak to off peak)

Page 31: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

• Total number of Purchases

Number of Purchases Made

Number of

purchases

Total Purchase

Count

No. of customers who purchased once 17 17

No. of customers who purchased twice 20 40

No. of customers who purchased three times 64 192

No. of customers who purchased four times 61 244

No. of customers who purchased five times 18 90

No. of customers who purchased six times 11 66

No. of customers who purchased seven times 4 28

No. of customers who purchased eight times 5 40

No. of customers who purchased nine times 4 36

No. of customers who purchased eleven times 1 11

No. of customers who purchased twelve times 1 12

Total 206 776

Quick statistics of the Trial Run (1)

Siemens Power

Automation

Page 32: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Singapore Open Electricity Market

Inherent Features

• Singapore Power Group (SPG) continues to operate and maintain the power grid, while providing market support services such as billing and meter reading

• SP Group is paid for these network costs and market support services that are reviewed annually and regulated by the EMA

• Opting for a different provider will not affect supply reliability

• Even as retailers leave the Open Electricity Market, there will be no power disruptions

• Provision for comparison website that will be updated with the latest price plans

• Retailers are required to safeguard each household’s security deposits, and are banned from making unsolicited calls, messages or door-to-door visits.

Open Market Insight

• Pilot test of the Open Electricity Market began in Jurongon 1st Apr’18- Homeowners were given an option for the first time for switching supplier.

• For five months, more than 30% of consumers switched to different provider, with savings of about 20%

• Energy Market Authority (EMA) announced nationwide roll-out of the Open Electricity Market in Sep’18

• The agency surveyed 400 people that have switched retailers; about 80% agreed that the initiative has its benefits such as competitive pricing and innovative offers.

34

Page 33: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

35

Demand Response in India

Demand Side Management and Demand Response programs aim to influence power consumption by active engagement with end consumers.

NPMU is co-leading Demand Response PoW under Mission Innovation Smart Grid Agenda in association with DST.

NPMU engaged with PWC on behalf of British High Commission office under DFID to scoping study on Demand side management and Smart Grids

Tariffs based on Fixed timing (ToD) may not serve the purpose in the city like Delhi where summer peaks are mainly due to residential air-conditioning loads. (Load at 3.00AM > 8.00 PM)However, in Punjab mainly due to agricultural load the gap between peak and off peak loads is reduced by adopting ToD tariff.

It is desirable that regional / locational dynamic tariffs for Demand Response may be adopted by the utilities.

Page 34: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

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Demand Response for Flexibility

✓The current pricing mechanism does not provide appropriate signal to end consumer forjudicious use of electricity.

✓If we add some price component to existing tariff that could reflect the real time imbalances,the end consumers may shift their load to get some incentive or to avoid disincentives.

✓In various pilot smart grid projects in the US, participating customers were guaranteed aneutral bill impact from participation.

✓As per survey data, there is probability that consumers will shift/ reduce their loads whenToU tariff is high during the day (and/or if there is a discount at night).

✓Polling commissioned by The Australia Institute in September 2017 found that two-thirds ofAustralians would prefer to see peak demand managed through demand response rather thanbuilding new generators and higher capacity networks.”

Page 35: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

37

Regulatory Sandbox: DR Case Study

BSES Yamuna

• BSES Yamuna implemented DRprogram to manage its peak loadand maintaining tie- line schedule.

• Overall, 9-15 consumersparticipated in each event,

• Resulted in demand savings of0.89 to 3.45 MW per event.

• Maximum reduction provided bymanufacturing units, followed byhotels, malls, hospitals, and others

Tata Power, Delhi

• Participation - 161 customers >100 kW (cold storage, commercial,education, flour mill, hospital,industrial, pumping, retail.

• 17 DR events for 30 to 60 minuteseach in the summer of 2014

• Achieved max shed potential of7.2 MVA with a cumulative savingof 0.063 MUs.

• Max demand reduction rangedfrom 2% (for Education) to 28%(for Packaging).

Tata Power, Mumbai

• Tata power, Mumbaiimplemented both aggregatorbased and auto DR projects inMumbai at Malls, Hospitals, ITparks and Municipal sewagetreatment plants etc.

• Aggregator level DR was triggered21 times each for duration of 2hours.

• 15 MW curtailment achieved.

Page 36: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Delhi: Seasonal Variations in FY 2018-19

Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sept'18 Oct'18 Nov'18 Dec'18 Jan'19 Feb'19 Mar'19

Max Peak Demand 4530 5283 5535 5842 5159 4948 4544 3660 3619 3657 6716 3577

Max Off Peak Demand 4387 5606 6062 5882 5134 4739 3773 2113 1664 1745 4257 2451

Min Peak Demand 3291 3528 3876 4107 3727 3857 2896 2499 2903 2548 4756 2074

Min Off Peak Demand 2598 3792 4412 3665 4138 2698 2048 1480 1435 1369 3463 1446

0

1000

2000

3000

4000

5000

6000

7000

8000

De

man

d in

MW

Max Peak Demand Max Off Peak Demand Min Peak Demand Min Off Peak Demand

Peak Time - 20:00 Hrs Off Peak Time -03:00 Hrs

Max difference b/w Peak & Off peak Demand: 1955 MW (Dec.)

23rd June

Page 37: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

39

Delhi: Load Curve for 23rd Jun’18

Page 38: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

40

EV Penetration & Typical Solar Rooftop Generation Profile

To assess the impact of EVs on the grid, BYPL selected afeeder by considering aspects like EV charging stations,Solar RT penetration in the feeder, feeder loading &voltage profile, DT loading, Consumer mix monthlyconsumption etc.

• Peak Load of the feeder is 4.5MW at 00.15 hrs. &corresponding EV Load is 152.71 kW.

• EV peak load of 257.02 kW at 20:30 hrs. & correspondingfeeder load is 2.99 MW (EV load is 8.6% of the feeder load)

• Total Energy consumed by feeder is 86.73 MWh including3.24 MWh by the connected EV loads (3.74% of feederdaily energy consumption) & 12.75 MWh Solar generation.

Observations:

• Impact of EV charging during rooftop PV generation isminimum or nil.

• Feeder can take up more EV Charging penetration duringPV generation.

• Additional PV load can be taken with PV generation byimplementing ToU.

Page 39: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

41

DR: Stakeholder Benefits

Stakeholder Benefit

Consumers • Financial incentive for participating in schemes• Provides focus on energy efficiency• Improved supply reliability (in the long term)• Reduced cost of power (in the long term)

DISCOM • Provides focus on load patterns and energy efficiency• Low cost/fast to deploy mechanism to balance supply and demand• Avoided cost in purchasing expensive power from wholesale market/short term contracts required to meet supply deficit• Deferral of asset investment for infrastructure required only to meet peak demand• Improved revenue due to avoidance of load shedding through better load management• Increased integration of RE resources into the grid

System Operators • Low cost/fast to deploy mechanism to provide ancillary services

Regulators • Provides an additional resource to help address power shortages• Demonstrates a move towards energy efficiency and greener solutions for meeting load requirements• Positive impact on cost of power to consumers as DISCOMs and system operators rely less on purchasing expensive power

Economy • Positive impact on cost of power to consumers as DISCOMs and system operators rely less on purchasing expensive power• Low cost/fast to deploy additional resource to help address power Shortages

Environment • Less dependence on thermal power required to manage balancing and regulation issues.• Deferral of asset investment for infrastructure required only to meet peak demand.• Increased RE penetration

Source: USAID Smart Grid Training Course Material

Page 40: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

42

DR and DSM

Page 41: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Way Forward – State Level PMUs

SLPMUs at 19 States/UTs:1. Andhra Pradesh2. Assam3. Chandigarh4. Chhattisgarh5. Delhi6. Haryana7. Himachal Pradesh8. Jammu & Kashmir9. Jharkhand10. Karnataka11. Kerala12. Maharashtra13. Odisha14. Puducherry15. Rajasthan16. Tamil Nadu17. Telangana18. Tripura19. West Bengal

Vision, goals and roadmap for the state Smart Grid activities

Develop program proposals & submit to NSGM

Evaluate program/project proposals from utilities

Work with SERCs to develop state regulations and policies

Adoption of Smart Grid standards

Monitor the impact of Smart Grid activities

Fun

ctio

ns

of

SLP

MU

Implementation & monitoring Smart Grid Projects

Process change based on learning

Adopting dynamic tariff

Consumer engagement initiatives / programs

Large scale rollout of smart metering

Coordinate among various schemes for sustainable outcomes

Funding for Smart Grid projects through innovative business models

Exp

ecta

tio

ns

fro

m S

LPM

U

43

Page 42: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Tariff Design

Page 43: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

45

Key Regulations, Legislation & Guidelines

Electricity Act 2003• Section 62(3) guides SERCs to incorporate ToD tariff:

• “The Appropriate Commission shall not, while determining the tariff under this Act, show undue preference to any consumer of electricity but may differentiate according to the consumer's load factor, power factor, voltage, total consumption of electricity during any specified period or the time at which the supply is required or the geographical position of any area, the nature of supply and the purpose for which the supply is required.” (Electricity Act, 2003, p.49)

Page 44: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

46

Dynamic Tariff Option for DR

Components considered for tariff design

• Cost of generation and transmission

• Service cost of DISCOM

• Reactive power consumption

• Voltage level

• Sanctioned/contracted load

• Subsidy

• Unscheduled Interchange charges for deviation from agreed drawal and generation schedule

• ToD or pre-announced prices based on a forecast for peak load hours

• ToU/CPP that can be linked to cost price or to an average of daily maximum demand

• Power supply quality- based on voltage fluctuations, reliability and harmonics

Co

mp

on

ents

of

AR

RP

rop

ose

d

Page 45: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Innovation & StandardP

erf

orm

ance

Time

New S-Curve

Ferment

Takeoff

Maturity

Discontinuity

Standard development/ Modification

New Innovation

Standard development/ Modification

47

Page 46: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Regulatory Sandbox

Technology Development

Technology Integration

System Integration

Market Integration

48

Page 47: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

49

Way Forward

Explore new/dynamic tariff options with flexibility for DISCOM to decide peak/off peak time and location

Consumer engagement thru tariff options for Demand Response

Consider ICT investment as an option while evaluating infrastructure CAPEX for short term needs

Engage with SLPMU and steer operational transformation

System generated Standard Reporting for KPIs including power quality parameters as notified by CEA in grid connectivity standards

Regulatory sandbox for new process/technology before including it as standard

Page 48: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Thank You

@NsgmIndiawww.nsgm.gov.in

50

Page 49: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Smart Inverter

• “Smart Inverter” is a inverter that can contribute to grid support during excursions from

normal operating voltage and frequency conditions by providing:

• Dynamic reactive and real power support

• Voltage and frequency ride-through

• Ramp rate controls

• Communication systems with the ability to accept external commands from the electric utility.

• California and Hawaii have already begun deployment of smart inverter functionality

• IEEE 1547, IEEE1547.1, IEC 62109, IEC 62116 and IEEE 2030.5 are the standards for Smart

inverters.

52

Page 50: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Grid Connectivity Standard (33kV & Above)

Parameters Limit Relevent Standards

Voltage and Current Harmonics - IEEE 519

Flicker - IEC 61000DC current Injection 0.50% -

Measuring and metering of harmonics Once in a year IEC 61000-4-30

Reactive Power Capability to maintain power factor at POI

±0.95 -

Frequency withstanding capability47.5 Hz - 52 Hz (rated power in the range

of 49.5 - 50.5Hz)-

Frequency Droop Control 3 to 6% (Dead band max ±0.03 Hz) -

Ramp Rate Control ±10% per minute -

HVRT

1.3 < V - Instant trip 1.3 ≥ V > 1.2 - 0.2 Sec 1.2 ≥ V > 1.1 - 2 Sec V ≤ 1.1 - Continuous

-

LVRT - -Short Circuit Ratio (SCR) not less that 5 at POI -

Page 51: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

Grid Connectivity Standard DERs (Below 33 kV)

Parameters Limit Relevent StandardsHarmonic current injection - IEEE 519Flicker - IEC 61000DC current Injection 0.50%Measuring and metering of harmonics - IEC 61000-4-30

Safety -CEA (measures relating to safety & Electricity Supply) Regulation, 2010

Over and Under Voltage protection110% - 80% (clearing time upto 2

Sec)-

Over and Under Frequency protection50.5 Hz - 47.5 Hz (clearing time

upto 0.2 Sec)-

Capacity of Devices of DERs to withstand voltage limit 220% -

Voltage fluctuation at POI at the time of synchronization ±5% -

Page 52: Smart Grid: Implementation, Challenges & Way Forward · KUMUD WADHWA Sr. General Manager National Smart Grid Mission-PMU Ministry of Power, GoI Website: 1. Smart Grid Maturity Model

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