Professional Documents
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Joint Research on
Accelerated Deployment of
Smart Grid Technologies
in India
Sponsored by
New Energy and Industrial Technology
Development Organization (NEDO)
Project Report
Joint Research on
Accelerated Deployment of
Smart Grid Technologies
in India
Sponsored by
New Energy and Industrial Technology
Development Organization (NEDO)
© New Energy and Industrial Technology Development Organization, 2013
4. CONCLUSION 33
5. WAY FORWARD 35
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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 1
1. Introduction
Availability and accessibility of adequate electricity infrastructure is necessary for ensuring continued economic
development. With 223 GW of installed capacity, India’s power sector is now the fourth largest in the world, but
at the same time faces significant energy and peak shortages. Energy and peak shortages across India stood at 8.7%
and 9%, respectively in 2012–13. Further, the per-capita consumption of electricity in India is only about one-
fourth of the world average and only 66% of the people have access to electricity.
India is witnessing a tremendous growth in demand of electricity and the potential demand by 2032 is estimated
to be as high as 900 GW. With limited and depleting conventional energy resources, India has been pursuing
an aggressive renewable generation programme. Targets for Renewable Energy (RE) generation in the 12th Five
Year Plan of the Government of India (GOI) is stated at 36 GW, which will increase the current 12% share of RE
(excluding hydro) to 20% by end of this decade. A power system of this size, growing at a pace of 8–10% per
year, with an increasing share in RE, requires smarter systems to manage it efficiently and ensure its stability and
reliability. It is important not only to manage the generation but also the loads in an optimum and efficient manner.
Transmission and distribution losses are still very high in the Indian power system and the distribution network
hence aggregate technical and commercial (AT&C) loss reduction continues to be the top priority of both
governments and utilities. Smart Electric Grid which is an application of digital information and communication
technologies (ICT) can help in monitoring, measuring, and even controlling power flows in real time that can
contribute to the identification of losses and thereby help in taking appropriate technical and managerial actions
to arrest the losses.
Other areas where smart grid technologies can play an important role are outage management and decentralized
generation. There is a growing need for minimizing the frequency, duration of outages and power cuts to not only
ensure the reliability of power supply but also to ensure higher level of consumer satisfaction. Further, onsite power
generation and consumption can also contribute significantly in bridging the demand supply gap. The surplus
power generated this way can also be supplied back to the grid. In the present scenario, there is an important
requirement of facilitating consumers to become ‘prosumers’, i.e., energy producing consumers.
India has also recently launched the National Mission on Electric Mobility (NMEM), with a target of 6 million
electric vehicles — 4 million two-wheelers and 2 million four-wheelers — by 2020. For an efficient rollout of the
Electric Vehicle (EV) programme, there is a need for upgrades in electrical distribution infrastructure and smarter
systems which will control/limit simultaneous charging of hundreds of EVs from the same feeder. Immediate policy-
level support is required to build enabling infrastructure to integrate EVs in to the electrical network so that millions
of EVs connected to the power system can be leveraged as Virtual Power Plants (VPPs) that can store energy when
there is surplus generation and support the grid during moments of deficit. Vehicle to Grid (V2G) technologies are
evolving rapidly that can achieve these objectives.
In this context of increasing demand–supply gap of electricity and the need to optimize electricity usage, it
has become imperative for India to focus on smart grids. The idea behind India’s smart grid vision is to transform
India’s power sector to develop a secure, adaptive, efficient, and sustainable system within a stipulated time-frame
that provides reliable and competitive energy to meet the needs and aspirations of all citizens through active
participation of all stakeholders and innovative technologies and policies.
A number of initiatives have been undertaken across the world relating to accelerated implementation of smart
grids. In 2010, the Japanese government introduced a roadmap for implementing smart grid with emphasis on
developing low-carbon societies and deployment of the natural grid to reduce greenhouse gas emissions. In this
regard, a number of demonstration projects have been implemented by the Ministry of Economy, Trade and Industry
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(METI) and New Energy and Industrial Technology Development Organization (NEDO) in Japan and also in other
countries such as Indonesia, the USA, France, etc. In Japan, METI is funding four smart community pilot projects
in the cities of Yokohama, Toyota City, Keihanna Science City, and the Kitakyushu. Initiatives such as installations
of smart metres, integration of EV car-sharing system, time of use and critical peak pricing rates, demand–response
programme, optimization of decentralized generation (through RE sources), etc., have been implemented during
the pilot phase. With the above background, The Energy and Resources Institute (TERI) undertook a joint research
study with NEDO to accelerate deployment of smart grid technologies in India and identify synergies with Japanese
experience on implementation of smart grids.
Table 1 Chronology of meetings and site visits carried out under this study
May, 13 Interactions with Ministry of Power and identification pilot sites for the study
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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 3
19th July, 13 Meeting with TEPCO, and Hitachi. Site visit to Yokohama smart city project
29th August, 13 Meeting with JVVNL and site visit with technology companies
30th August, 13 Meeting with UHBVN and site visit with technology companies
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4 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
The Ministry of Power, Government of India, has launched A-APDRP in the XIth Five Year Plan. Power Finance Corporation
Limited (PFC) has been designated as the Nodal Agency for the programme. This is an IT initiative by Distribution Utilities
in India under which they are building IT Infrastructure, IT Applications, and Automation Systems.
The size of the programme is to the tune of Rs 500 billion. The programme consists of Part-A (around Rs 10,000
crore) covering IT application in the electricity distribution system and Part-B (around Rs 40,000 crore) covering the
system strengthening, improvement, and augmentation of distribution system capacity. The programme is proposed to
be implemented on an all-India basis covering towns and cities with a population of more than 30,000 (10,000 in case of
Special Category States, such as Assam in north-east India) as per population data of 2001 Census. Additionally, in certain
high-load density rural areas with significant loads, works of separation of agricultural feeders at High Voltage Distribution
System (11kV) will also be taken up.
Automatic Data Logging for all Distribution Load bifurcation and load balancing Asset and Maintenance
Transformers and Feeders; Management
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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 5
At the same time, the government has taken initiatives such as the formation of the India Smart Grid Task Force
(ISGTF) and the India Smart Grid Forum (ISGF). ISGTF is an inter-ministerial group which serves as government
focal point for activities related to Smart Grid in India while ISGF is a public–private partnership initiative of
the MoP for accelerated development and deployment of Smart Grid technologies in the Indian power sector.
Both these groups work on a range of issues from distributed generation, renewable, cyber security to advanced
transmission and distribution, metering, communications, etc.
Apart from these, various smart grid projects have been implemented throughout the country. Power Grid
Corporation of India Limited (PGCIL) in collaboration with the Puducherry government is going to implement
Smart City project in the country. The Energy and Resources Institute (TERI) has developed a first-of- its kind
renewable energy based Smart Mini-Grid (SMG) System in India, which incorporates optimum utilization of power
generated from renewable energy sources at different operating conditions, for ensuring supply of reliable and
good quality power. Another initiative taken by MoP with the support of ISGTF and ISGF is to launch India Smart
Grid Knowledge Portal (ISGKP) which is a knowledge-sharing platform.
Further, based on the recommendation of ISGTF, MoP has approved 14 Smart Grid pilot projects in various
states to showcase the relevance of Smart Grid on different aspects. These 14 pilots are expected to help technology
section guides and business case developments for larger projects in the next phase. Multiple functionalities such
as Advanced Metering Infrastructure (AMI), Outage Management System (OMS), Peak Load Management (PLM),
RE integrations, etc., have been included in these pilot projects.
Various working groups (including members from CEA, CPRI etc.) under ISGF are also focusing on the
development of Smart Gird Interoperability and Standards and recently they have introduced Functional
Requirements Specification of Low Cost Single-Phase Smart Meters to roll-out in proposed Smart Grid pilots.
Among these 14 pilot projects, three sites in Jaipur (Rajasthan), Panipat (Haryana), and Guwahati (Assam) have
been selected for the current study. The main objectives of implementing Smart Grid pilot project in the three
selected sites are to reduce AT&C losses, reduce frequency of outages and time for restoration, and improve quality
of power supply and peak demand management. Functionalities proposed for achieving these objectives mainly
includes implementation of AMI, OMS, and PLM, among others. Similar pilot projects on Smart Grid and Smart
Community were implemented in Japan wherein initiatives such as installations of Smart Metres, integration of EV,
time of use and critical peak pricing rates, demand–response programme, optimization of decentralized generation
(through RE sources), etc., have been implemented.
The selected three pilot projects are discussed in detail in the following sections based on specific detailed
project reports that are compiled on the basis of utilities and information provided during the site visits.
With this background, implementation of various Smart Grid technologies has been proposed with the following
objectives:
Reduction in AT&C losses
Enhanced consumer participation in energy management
Improvement in reliability by reduction in outages and duration
Increase in consumer satisfaction
The initiatives and facilities planned to achieve these objectives are:
Advanced Metering Infrastructure (AMI): AMI to be installed in Sanganer Subdivision of Jaipur shall have
facilities for demand-side management, demand response programme, peak load management, and two-way
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6 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
communications. Under this, Smart Metres are proposed to be installed for all the LT (low-tension) industrial
consumers with display units. This will help in the monitoring of load on a real time basis and reporting of
metre tampering. The utility will be able to detect theft on real time basis and have the control to disconnect
the consumer on non-payment of bills and for tamper events. Communication of AMI with Data Concentrator
Unit (DCU) is planned to be done through GPRS.
Peak Load Management (PLM): Main objective of PLM is to reduce the peak demand and hence reduce cost of
power purchase by minimizing purchase of power through Unscheduled Interchange (UI) or power exchanges
which are costly. PLM will include implementation of the demand–response program and charging of variable
prices for peak and off peak hours for demand management. This management of peak demand would be done
using Smart Metres, which have been proposed to be installed as part of AMI.
Outage Management System (OMS): Primary objective of OMS is to reduce frequency and duration of
outages which will increase consumers’ level of satisfaction. Equipment such as Fault Passage Indicators and
Distribution Transformer Monitoring Units (DTMU) will be installed for identification of fault location and
prevention of DT failure respectively. Auto-reclosers, sectionalisers, and isolators will be installed at different
locations which will help in maintaining the availability of line in case of faults. RTUs would be installed at
each substation for data collection and communication to enable real time monitoring.
This system will have interface with SCADA, GIS mapping, and a customer care centre which are already being
planned under R-APDRP.
To overcome these challenges, implementation of various Smart Grid technologies have been proposed with the
following objectives:
Reduction in AT&C losses
Enhanced consumer participation in energy management
Improvement in reliability by reduction in outages and duration
Increase in consumer satisfaction
Integration of RE resources for sustainable development
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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 7
prices for peak and off peak hours for demand management. This management of peak demand would be done
using Smart Metres, which have been proposed to be installed as part of AMI.
Outage Management System (OMS): The primary objective of OMS is to reduce frequency and duration of
outages which will increase consumers satisfaction. Equipment such as Fault passage indicators and Distribution
Transformer Monitoring Units (DTMU) will be installed for identification of fault location and prevention of DT
failure, respectively. Auto-reclosers, sectionalisers, and isolators will be installed at different locations which
will help in maintaining the availability of line in case of faults. RTUs will be installed at each substation for
data collection and communication to enable real time monitoring. The SCADA system would be installed
under the pilot project for monitoring and controlling of 11 kV feeders. This system will have interface with
GIS mapping and customer care centre which are already being planned under RAPDRP.
The major objectives of the proposed Smart Grid pilot project are:
Reduction in AT&C losses
Increase in billed energy by load curtailment instead of load shedding for demand management
Improvement in reliability by reduction in outages and duration
Integration of RE resources for sustainable development
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8 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
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General Electricity Utilities. These wholesale electricity utilities have obtained license from METI. Apart from this,
there are few Independent Power Producers (IPPs) and generators using renewable sources.
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2 Nesheiwat. Julia., Cross. S. Jeffrey., Japan’s post-Fukushima reconstruction: A case study for implementation of sustainable energy technologies, Energy Policy 2013
3 Peak load is the average value of the three highest daily loads at the transmission end occurring during the month in which the annual peak in recorded. Source:
Operating and Financial Data published by Japan Electric Power Information Center
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10 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
East Pacific coast, power generation from nuclear power plants has decreased drastically. You may remove
this line.
While Japan has been working towards implementing Green and Smart Grid technologies, the earthquake
has also led to increased interest in accelerating these efforts. In 2010, the Japanese government adopted a Basic
Energy Plan which was the third such plan that the government had approved since the enactment of the Electricity
Business Act. It envisages improvement in Japan’s self-sufficiency rate from 18% to 40%, while reducing the carbon
dioxide emissions at least by 30% till 2030 compared to the 1990 level. The Basic Energy Plan emphasized on
measures such as building next-generation Smart Grid, establishing smart communities, demonstration projects
(both national and international), promoting installation of smart energy management systems, etc. The METI and
NEDO have also created the Japan Smart Community Alliance (JSCA), which is a public–private partnership initiative
involving various utilities, private and public organizations, think tanks, and academia. Apart from this, both the
METI and NEDO have launched Smart homes, Smart city and Smart community consortiums, and experiments in
several target cities.4 In the year 2010, METI took up an initiative of setting up Smart community pilot projects on a
massive scale. The METI received proposals from 20 areas, of which four areas/towns — city of Yokohama, Toyota
city, Keihanna Science city, and the city of Kitakyushu — were selected for implementation. The key objectives,
technologies and functionalities implemented in these four pilot projects are presented in the following sections.
TERI team also visited two of these pilot projects, namely Yokohama Smart City project and Kitakyushu Smart
Community project, in July 2013. Figure 3 provides the geographical location of these four pilot projects.
Kitakyushu smart
community project
Yokohama smart
city project
4 Including smart community projects in Europe, USA, Indonesia and other countries.
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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 11
3.2.1 Objectives
The Smart City project was initiated with grant from METI and it covers three areas, namely Minato Mirai 21,
Kohoku New Town, and the Yokohama Green Valley area, with 165,600 households. The broad objective of this
project is to build and demonstrate the ‘Next Generation Energy Infrastructure and Social System’ for transformation
into a low-carbon city. This includes the following:
Introduce and demonstrate benefits of Energy Management Systems (EMS) such as Home EMS (HEMS), Building
EMS (BEMS), Factory EMS (FEMS), and Community EMS (CEMS)
Implementation of demand response programme for households, commercial, and industrial consumers
Installation of solar roof top systems and integration with grid
Demonstration of EV technology for demand response
Figure 4: Various applications implemented under the Yokohama Smart City project
Installation of solar PV Installation of HEMS Installation of BEMS FEMS has been Target of 2000 EV with
based generation up in 4000 households in 4 office buildings installed in sumitomo charging and
to 27 MW including apartments, and 2 commercial electric industries, Ltd. discharging facilities
Battery storage for and individual houses buildings This also integrates a
managing the Management of A system for large battery storage
intermittent power generation through consolidation of data system and system
solar PV and from BEMS is also and solar PV systems
implementation of installed
demand response
program
CEMS
Notes: HEMS: Household Energy Management System BEMS: Building Energy Management System
FEMS: Factory Energy Management System EV: Electric Vehicle CEMS: Community Energy Management System
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12 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
The various applications being implemented under the pilot project are given in the following sections.
3.2.2.1 Implementation of demand response programme
Under the Smart City project, three types of incentive-based demand response programmes are being examined: (i)
Peak Time Rebates (PTR), (ii) Limited Peak Time Rebates (L-PTR), and (iii) Capacity Commitment Program (CCP).
Under the PTR method, rebates are paid for the amount of electricity not used during peak time periods, whereas
under the L-PTR method, consumers receive rebates for the amount of electricity that is registered below target
amounts (predetermined between the utility and consumers) during peak periods. In case of the CCP method,
financial incentives are provided when demand reductions below standard levels are achieved, and nothing is
provided if these targets are not attained. A combination of these options is being experimented under the pilot
project with all type of consumers — domestic, commercial, and charging stations. This will enable which type
of DR is the optimal type and which DR should be issued in what situation, etc., to be discovered. A similar
experiment was implemented in December 2012 with commercial consumers (BEMS) in which it was observed
that power demand decreased by 400 kWh (from 3,000 kWh to 2,600 kWh).6
Further, a demand-response experiment is planned in summer of 2013 (July–August) with households, for a study
of their consumption behaviour. Apart from this, information related to the ranking of amount of electricity used
by each household against other will also be provided to the each household. This is being done for stimulating
a competitive spirit within residents, and the changes in consumption customs generated by this information will
then be measured.
3.2.2.2 Energy management for industries
Under the Yokohama Smart City project, FEMS has been installed by Sumitomo Electric Industries, Limited in
their own factory along with a gas cogeneration system (6 units x 648 kW) which was installed prior to this
experiment. The company has also installed storage batteries (Redox flow cells) with a storage capacity of 5,000
kWh (maximum output of 1,000 kW) and a 200 kW concentrated photovoltaic (CPV) unit. The FEMS is now used
for optimal operation of a combination of these four sources of power supply including power purchased from
the power company. The FEMS is used to predict the amount of electricity generated by the solar power system
and the amount of electricity required in accordance with the factory’s production plan for controlling the energy
distribution for the factory with energy provided by the cogeneration system and storage batteries. This system can
also help in regulating the supply from solar system and batteries in the event of demand-response signal sent by
the utility.7
3.2.2.3 Multiple storage batteries for grid stability
A storage battery SCADA system is implemented under the Yokohama Smart City project for grid management.
Apart from the small battery system (installed in consumer premises), lithium-ion batteries with combined capacity
of 650 kW (300 kW, 250 kW, and 100 kW) are connected with the grid. The SCADA system connected to both
type of battery systems and is used for charging and discharging of these batteries depending upon demand–supply
situations and demand–response signals (for small batteries) issued by system operator.
3.2.2.4 Hybrid system for charging and recharging of Electric Vehicles (EV)
Under the Yokohama Smart City project an experiment for using a Battery and Charger Integration System (BCIS)
is also being carried out. This system consists of two chargers with a rated output of 50 kW, 64 kWh lithium-ion
storage batteries, an incoming transformer, and an electrical power controller. The charging facility is being used
for quick recharging of EVs by optimally using the chargers and thereby decreasing the actual peak demand of the
charging station during peak hours (when multiple EV are to be charges simultaneously). Further, this system is
being integrated with CEMS to examine the use of EV as a demand management tool. This means at the time of
high prices the charging station will use batteries for charging the vehicles and batteries can be recharged during
off peak hours when prices are low.
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3.3.1 Objectives
The Smart Community project is being implemented in the Higashida area of Kitakyushu city. The Higashida
district emits 30% less CO2 than other areas in the city due to establishment of various environment friendly
technologies and new energy sources implemented by the local government. The broad objective of the Smart
Community project is to achieve a further 20% reduction, reducing CO2 emissions to more than 50% less than
other areas in the city.8 This includes the following:
To transform consumers who use energy, such as residents and businesses, into ‘prosumers’ by installing
photovoltaic arrays and other systems
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14 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
To implement demand-side self-management, where individuals and corporates work with energy providers
in managing electricity demand
To introduce dynamic pricing and incentive programmes
Figure 5: Various initiatives taken under the Kitakyushu Smart Community project
Regional energy Energy management Hydrigeb town Solar PV and energy EVs (V2B)
management station system storage
Optimum energy Installation of HEMS Supply hydrogen Installation of rooftop Demonstration of
distribution in in 225 households generated as by solar PV generation utilizing EV as storage
accordance with 50 Office building product in steel unit up to 400 kW battery
power-generating and industries factory to city area Installation of Discharges electricity
status via pipeline individual and large from EV to building
Link with local energy
Rationalization of management station Demonstration of scale storage battery systems via quick
control from the and automatically using fuel cells in system for demand and chargers and linking
demand side for controls power homes and public supply management with BEMS
optimization of facilities to generate
demand power and hot
Visualization of energy water supply from
and CO2 hydrogen
Notes: HEMS: Household Energy Management System BEMS: Building Energy Management System
EV: Electric Vehicle
Various functionalities and operational experiments being conducted under the Kitakyushu Smart Community
project are explained in the following sections.
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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 15
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time (8:00–10:00 and 17:00–
22:00 hours), and night time Yen/kWh
(22:00–7:00 hours). Different
140 Level 5
levels of pricing signals are
sent through CEMS. The price 120
between Level 2 and 5 are
Level 4
applied when the maximum 100
estimated temperature is Level 3
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in summer, and when 60
the minimum estimated Level 2
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16 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 17
order to examine how effectively production plans can be modified for optimizing the use of electricity within the
community. These industrial consumers are using FEMS in number of ways for optimizing the electricity cost as
explained below.
The Watakyu Seimoa Corporation, which is involved in the washing, drying, and finishing of hotel linen and
clothes has implemented FEMS. The system adjusts the cleaning plan so that the items which consume more
electricity are processed during times when electricity rates are less expensive. This has enabled the industry to shift
its electricity consumption from peak to off peak periods.
The Yahata-Higashi Plant of Yaskawa Electric Corporation is a motor manufacturing unit. Implementation plans
for the production processes includes manufacturing of rotors and stators (motor parts) and assembly process.
The unit is using FEMS and battery storage systems for modifying the production plan and optimal utilization of
electricity to reduce the cost of electricity. The activities for which production plans cannot be modified are being
carried out with the discharge and recharge of storage batteries.
Another industrial consumer is Toyoda Gosei Co. Ltd., which is manufacturing grills, bumper moldings, and
other resin products for automobiles. FEMS installed in the factory not only provides information about electricity
consumption but also creates plans for the electricity generated by the solar power system and the recharge and
discharge of storage batteries. It also controls and adjusts LED lights within a range of 15% and 100% to make sure
that the floor area is illuminated at a level of 100 lux in consideration of the working environment.
3.4.1 Objectives
The Smart City project in Toyota city (Smart Melit) was initiated by METI in conjunction with few private enterprises.
It covers two districts – Higashiyama and Takahashi (67 households for demonstration of HEMS) — and Toyota city
as a whole for trials of a low-carbon transport system and demand response programme (160 households across the
city). The broad objective of this project is to build and demonstrate ‘Smart Mobility and Energy Life in Toyota city’
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18 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
for creation of consumer-oriented low-carbon communities. It aims at 30% reduction in CO2 emissions by 2014 (as
compared to the 2005 level). The project includes the following:
Demonstration of benefits of HEMS, BEMS, and Energy Data Management System (EDMS) at the
community level
Operational experiment for demonstration of V2H technology
Development of Traffic Data Management System (TDMS), Intelligent Transportation System (ITS) including
development of a Harmonious Mobility Network transportation support system (Ha:mo), Smart Recharge
Systems
Figure 9 Various applications implemented under the Toyota Smart Melit project
Installation of IIEMS in 67 new EDMS connected with individual Traffic data management system
household buildings with energy management system for (TDMS) and intelligent
solar panels, batteries optimal utilization of energy transportation system (ITS)
Demand response program Used for demand forecasting, Promotion of harmonious
for 160 households system planning and demand mobility network transportation
Installation of BEMS in response (Ha:mo)
commercial facilities open Introduction of 3100
24 hours next-generation vehicles
V2H (vehicle to home) system
with facility of charging and
discharging
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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 19
3.5.1 Objectives
The Keihanna Eco City Project (funded by METI) is being implemented in 3 areas namely Kyotanabe City, Kizugawa
City and Seika Town in Kyoto. The main feature of the Keihanna pilot is to optimize the use of energy throughout
the entire area and reduce CO2 emissions. The main features of the Keihanna experimental project are to optimize
the use of energy throughout the entire area and reduce CO2 emissions. This includes the following:
Large scale installation of smart meters among domestic and commercial consumers
Installation of HEMS for general households, BEMS, and CEMS for energy management
Demonstration of Vehicle to building technology for transportation
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20 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
Figure 10 Various initiatives taken under the Keihanna Eco City Project
CEMS for energy management, Installation of HEMS, BMES Control group trial Demonstration of vehicle
demand and generation Link with CMES and experiment with 700 charging stations tool
forecasting and scheduling automatically controls households for demand management
Linked to individual energy power consumption Incentives for reducing About 100 Evs for
management system Energy management through power consumption participation in demand
mobile phone applications during peak hours response program
also implemented for 14
households
Notes: HEMS: Household Energy Management System BEMS: Building Energy Management System EV: Electric Vehicle
Various functionalities and operational experiments being conducted under the Keihanna Eco City Project are
explained in the following sections.
Demand Response experiment: Under the pilot project, 681 households out of approximately 40,000
households in Kyotanabe City, Kizugawa City and Seika Town agreed to participate in the demonstration project.
The participating households were divided into different groups in order to assess the scope of implementing
demand response programme. In the first group, smart meters were installed in all the households with a power
consumption tablet. The tablet is used to show the hourly power consumption of the household. In the second
group, the day before demand response program is being implemented under which requests are made for energy
conservation the following day in a notification sent to their tablet terminals (without financial incentive). Whereas
in the third group, demand response request are made a day before with variable level of virtual incentives as
explained below.
The experiment was conducted for a period of three months from July to September (December to February in
the winter period,) and 7,000 points were awarded to all households in third group
For those households which use electricity during the demand response period (weekdays from 13:00 to
16:00), 20 points are deducted for each kWh of electricity consumed
Further, demand response requests corresponding to deduction of 40, 60, and 80 points per kWh were also
issued to households for 15 days during (5 days for each) during the experiment period.
The relevant households were notified of this increase via the tablet terminals and e-mail at around 4pm on
the previous day
The households can redeem the remaining points after the experiment at a rate of YEN 1 per point
As per the results of this experiment available at Japan Smart Community Portal, the total power consumption on
weekdays during the demand response period for first group was about 0.25kWh per 30 minutes. The amount of
electricity consumed by second group which also received notifications was 3.6% less as compared to the first
group for the same time period. However the average consumption of 3rd group was 4.6% less when only 20 points
were deducted and 9.3% less for 40 points; 11.7% for 60 points, and 14.1% less when it was 80 points10.
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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 21
Demonstration experiment for V2X technology: Under the Kiehanna pilot project, batteries mounted onto
electric vehicles are being used for energy storage. The verification experiment for utilizing these mobile storage
batteries is represented by V2X (Vehicle to X). Similar verification experiments including V2G (Vehicle to Grid) and
V2H (Vehicle to Home) are also being carried out.
In one of such experiment carried out in production building and employee parking lot in Mitsubishi Motors,
solar power panels with an output capacity of 20 kW have been installed on the roof and parking space for five EV
vehicles is available beneath the roof. The electricity generated by the solar power panels is used to recharge the
EVs and reused storage batteries during the morning and evening and during the daytime (peak demand period)
power generated by the solar power panels and power discharged from the EVs and reused storage batteries is
used to reduce the electricity consumption from grid. An EV Integration System (EIS) is also developed which
controls the recharging and discharging of batteries while taking into consideration the power demand of the main
production facility, the amount of electricity generated by the solar power panels and the level of charge in the
reused storage batteries, etc.
Electric vehicles for demand management: In an experiment conducted for 60 EV (83% of which are owned
by individuals and 17% by companies) an EV Management Center is created for monitoring the battery recharge
status and location information for each of sixty EVs with the use of an Intelligent Transportation System (ITS). The
system consists of communication equipment mounted onto the EVs, recharging facilities (Recharge Network)
and the EV Management Center. The system is used to communicate demand response request to the consumers
(through CEMS) to encourage them to suppress recharging activities, alter recharging times, suppress usage during
peak periods, or promote recharging. The demand response request are advised to EV users at around 6 pm on
the evening prior to implementation via e-mail. These requests contain information on the required action and the
level of urgency, as well as the number of points that will be awarded to EV users if they conform to the required
actions. These points represent an incentive for EV users.
Energy management through CEMS: CEMS installed under the pilot is connected to other energy management
systems like HEMS, BEMS and EV management system to discover how far electrical power demand can be
controlled in accordance with pre-planned parameters just with the use of DR requests. This system can help in
improving the operation rates of the electricity supply system and reduction of electricity power costs in the long-
term. CEMS forecast the peak demand, and also issues instructions to reduce power demand to all of the energy
management systems. Each energy management system revises the electricity usage plan based on the DR request
and submits the same to CEMS. This information is used for power planning for the next day.
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22 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
4. Conclusion
The major challenge faced by the Indian electricity distribution sector includes increasing peak deficit, high AT&C
losses, RE integration improving reliability and quality of power supply, DSM and aging distribution infrastructure,
among others. Recognizing this, a number of initiatives have been taken both at central and state levels for
improvements in the power distribution sector — RAPDRP and Smart Grid pilot projects are few of them. The
major objectives of the Indian Smart Grid pilot projects are reduction in frequency and duration of outages, peak
load management, and introduction of automated metering infrastructure. The three pilot projects proposed in
Rajasthan, Haryana, and Assam, covered under this study, envisage implementation of AMI, OMS, RE integration,
and peak load management.
In the Japanese power sector, current priorities include a shift from fossil fuels to RE and creating a low-carbon
society. METI has funded four Smart Community pilot projects for demonstration of Smart Grid technologies in
different cities. These four pilot projects aim at demonstration for deployment of next-generation energy and social
systems for building low-carbon societies. Under these pilot projects, various initiatives have been undertaken
such as the introduction of a demand–response programme, critical peak pricing, proactive consumer participation
in DSM through appropriate pricing, energy management through application of Smart Grid technologies such as
individual- and community-based energy management system, solar PV system, individual- and community-based
energy storage system (including batteries and fuel cells), EVs, etc. Individual energy management systems such as
HEMS and BEMS are installed to enable the consumers for optimal usage of electricity and to respond to pricing
signals. Table 2 shows the comparative picture of functionalities and technologies planned to be implemented
under Smart Grid pilots in India and Japan.
S. Functionalities/ Planned under Indian pilots Implemented under Japanese pilot projects
No. technologies (Rajasthan, Haryana, and Assam) (Kitakyushu, Yokohama, Toyota, and Keihanna)
1 Energy AMI for all consumers; display units HEMS, BEMS, and FEMS for selected
conservation for LT industries consumers (which are participating in the
demonstration projects).
CEMS and EDMS for energy management and
planning at centralized level
2 Peak load DR programme planned to study the Provision of individual energy management
management consumer behaviour system to enable the consumers to respond to
variable pricing signals
Installation of solar PV and battery storage
system for using the local energy during the
peak periods.
DR with EV in Keihanna
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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 23
S. Functionalities/ Planned under Indian pilots Implemented under Japanese pilot projects
No. technologies (Rajasthan, Haryana, and Assam) (Kitakyushu, Yokohama, Toyota, and Keihanna)
4 Solar roof top Solar PV based generating system Roof to systems installed at households,
system will be installed in selected locations, commercial buildings with battery storage. Also
mainly government buildings used for DR programme.
5 Use of Electric Not planned under the pilot projects Charging stations have been installed at various
Vehicles locations for quick charging of batteries and are
also being used as demand management tool,
especially in Keihanna and Toyota cities.
6 Hydrogen as Not planned under any of the three In Kitakyushu hydrogen produced as by product
fuel for meeting pilot projects in the steel factory is being supplied to the
the energy community through pipelines.
requirements
Based on the analysis presented, it can be observed that there are many functionalities and technologies which
have not been envisaged to be implemented in the Smart Grid pilot projects proposed in India. These include
introduction of energy management system to enable consumers to respond to variable pricing signals, CMES
for large-scale energy management, energy storage technologies, electric vehicles, etc. Further, there is also a
difference in application of some of these technologies; e.g., solar PV based generating system implemented in
Japanese pilot projects are being used for using the locally generated energy during peak periods through provision
of storage batteries. Similarly, experiments related to assessing consumer behaviour with respect to variable pricing
on the basis of control group trial experiment would help in determining the appropriate tariff structure.
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24 Joint Research on Accelerated Deployment of Smart Grid Technologies in India
5. Way Forward
It can be concluded from the above analysis that although priorities in India are presently limited to improvement
in reliability of power supply, reduction in AT&C losses, RE integration etc., the technologies once getting
implemented are likely to soon pave way for much advanced applications. It is therefore desirable that a long term
view should be taken for application of smart grid technologies.
Smart grid technologies such as AMI, OMS, energy management systems, etc. are already deployed in the Smart
Community projects in Japan. Distribution automation systems for remote supervision and automatic control of
distribution equipment are in widespread use. Further, Japanese distribution system is considered among the most
reliable distribution systems in the world. Japanese experience in this regard would be useful for Indian smart grid
projects.
For peak load management, implementation of smart grid technologies like AMI and energy management systems
are prerequisite. Various experiments related to Critical Peak Pricing, and Demand Response programs are being
carried out in the four smart community pilot projects implemented in Japan. In Indian context, these programs
need to be designed in an efficient way depending on the consumer mix, socio-economic status, consumption
profile of the utility and consumers, etc. The Japanese experience in this regard coupled with overall energy
management practices is likely to prove extremely useful. A programmatic study of consumer perception, local
needs and consumer preferences would be required prior to initiating such a project. Therefore, a pilot project for
demonstration of these technologies and functionalities can be implemented in selected feeders /sub-stations in any
of the three sites studied under this project (Jaipur, Panipat and Guwahati).
The selection of feeders/sub-stations should depend on the consumer mix, condition of existing distribution
infrastructure, implementation of IT systems and applications under R-APDRP, etc. Hence, a pre-feasibility study
can be conducted for identification of the feeders/sub-stations within/outside the area covered under the above
three pilot projects. These feeders can act as demonstration sites of Japanese smart community technologies and
functionalities. The study can cover the assessment of existing distribution infrastructure, baseline survey including
assessment of AT&C losses, duration and frequency of outages, socio-economic and load profiling of consumers,
their willingness to participate in the programs, indicative assessment of costs and benefits, etc. Based on the
results of pre-feasibility study and discussions with the distribution utility, site for implementation of demonstration
project can be identified. Subsequently, technology companies and distribution utility of pilot area should conduct
a detailed feasibility study to identify the technologies and functionalities, scale of implementation, costs and
benefits, project timeline, etc. A pro-active role on part of State Electricity Regulatory Commission (SERCs) will also
be necessary for successful implementation of the projects. The SERCs need to allow differential time based pricing
for experimental purposes in the selected demonstration sites.
The actual implementation of the project would involve demonstration of identified technology and functionalities
in the selected feeders/sub-stations and detailed assessment of cost and benefits post implementation of the
project. The learning’s and experience of this project will also be useful for the distribution utilities and regulatory
commissions of other states. The results of this demonstration project would provide a background for large scale
deployment of smart grid technologies in India.
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