The Smart Grid Vision For Jodhpur Power Utility

THE SMART GRID VISION FOR JODHPUR POWER UTILITY
Jodhpur
Rakesh Kumar Goyal 22nd April 2010
PA CONFIDENTIAL - Internal use only
The Smart Grid is the future of the electric industry

The Smart Grid results from a convergence of powerful forces Today, the Smart Grid is still a vision more than a blueprint But infusing T&D networks with computing and telecommunications capabilities is the heart of the Smart Grid vision Smart Grids could radically transform the way electricity is produced, transported and used Important dimensions include: T&D automation to enhance operational efficiency and reduce cost AMI + demand response to optimize energy usage Promote RE and EE to reduce carbon emissions

PA Knowledge Limited 2010. PPT presentation template V1-10.ppt
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Why are efficient electricity networks important?

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Electricity is the premium form of end-use energy

Electricity is the premium energy source for an increasingly digital world Growth in demand for electricity is unrelenting Population growth and increasing affluence feed demand for reliable power Electricity is the fastest growing form of end-use energy Non-OECD countries will use 58% of world energy by 2030 US energy needs met by electricity grew from 20% in 1960 to 40% in 2000 This is a harbinger of the global future 2009 Source: US Energy Information Administration, International Energy Outlook,

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Indias power sector has added challenges

Supply shortfalls Peak load management issues Higher technical and commercial losses Increasing global competition for resources
Challenges for Jodhpur Power Utility High Solar potential Higher technical and commercial losses About 40% agriculture consumption with no economic incentive to use efficiently Dispersed Geographical area
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The power sector is also one of the biggest carbon emitters

Indias installed thermal power generation capacity represents 60% of net generation capacity and 57% of greenhouse gas emissions Based on current plans, this scenario will likely continue until 2020 Thus, the national goal to install 20,000 MW of solar power by 2020 Wind and other renewables are growing rapidly too Smart Grids are needed to enable grid management to cope with the unique dispatchability characteristics of renewable energy sources

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An historic convergence is reshaping the electric business

Relentless growth in electricity demand as the premium form of energy Demand for higher quality by more discerning and affluent customers Meanwhile, technological advances in information and communications technology (ICT), metering and generation are key enablers Continued reductions in the cost of technology vastly expands its scope The climate change crisis is driving the need for an urgent reduction in carbon emissions and thus a much more efficient power sector The traditional business model is troubled and implementation of a Smart Grid vision may facilitate a reinvention of the business

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Technological leapfrogging offers intriguing possibilities

Investment in a smart grid today may enable India to leapfrog into a vastly improved electricity scenario. Even under a business-as-usual case, the GOI will have to invest heavily in the power sector over the next two decades and beyond. Smart grid technologies could enable India to leapfrog into a much more advanced grid infrastructure and electricity market, and more quickly achieve parity with developed economies.

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What, exactly, is a Smart Grid?

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The Smart Grid is a vision more than a blueprint
The Smart Grid cant be reduced to a simple formula. The broadest interpretation sees the electric industry transformed by the introduction of two-way communications and ubiquitous metering and measurement. It will enable creation of more reliable, more efficient and more secure electrical infrastructure
Key characteristics of the smart grid Self-healing: The grid rapidly detects, analyzes, responds, and restores Empowers and incorporates the consumer: Ability to incorporate consumer equipment and behavior in grid design and operation Tolerant of attack: The grid mitigates and is resilient to physical / cyber-attacks Provides power quality needed by 21st-century users: The grid provides quality power consistent with consumer and industry needs Accommodates a wide variety of supply and demand: The grid accommodates a variety of resources, including demand response, combined heat and power, wind, photovoltaics, and end-use efficiency Fully enables and is supported by competitive electricity markets.
Robert Galvin and Kurt Yeager, Perfect Power, McGraw Hill, 2009, p. 82.

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The Smart Grid environment spans the electricity value chain
Source Generation Dispatch, AREVA IEEE Smart Grid Conference January 2010. PA CONFIDENTIAL - Internal use only
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Advanced technologies will make smart grids possible

Meters Storage devices Distributed generation Renewable energy Energy efficiency Home area networks Demand response IT and back office computing Security Integrated communications systems Superconductive transmission lines

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Technology enables improvements in many areas
Availability Automated meter reading Remote disconnection and reconnection Outage monitoring and evaluation Mini-SCADA DSM and LM Renewable energy Distributed, standby and off-grid generation Time-of-use tariffs Islanding Capacitor control Demand response Phasor Measurement Unit
Reliability
Reduce operating costs
Reduce commercial losses
Increase electricity supply
CRM applicable
Page 13
But where does the customer fit in?

ARC + GCR = QCS is the formula for Quality Customer Service [Availability, Reliability, Cost + Good Customer Relations] For many, the as-delivered service may feel like ARC + GCR Much of the Smart Grid is focused on other results, e.g. Reducing carbon emissions Improving the efficiency of the networks Promoting renewable energy and energy efficiency Enhancing security of supply But customer uptake will be critical to achieving full benefits

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Customer response is a critical success factor for Smart Grids

Customers want utilities to produce benefits, including Reduced Monthly Electricity Bill Reduced outages Increased control over energy consumption and cost via better data on usage and usage patterns (like telcoms) More choices for energy sources Options to supply energy to the grid Green choices to increase environmental sustainability The price differential between peak power vs. solar and diesel generation alternatives is shrinking

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Kitna hai? How Much? What are the cost-benefit analysis issues?

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Smart Grid cost-benefit analysis warrants a broad-gauged approach

It should incorporate societal benefits and externalities as well as the costs and benefits of conventional investment proposals. This will require a delicate balance, but the transformational potential of the smart grid vision warrants it. A reduction in carbon emissions will improve public health. Some smart grid projects will create employment, enhance agricultural security, stimulate economic growth or provide other benefits that are outside the boundaries of conventional projects. These should be taken into account. Such benefits are difficult to measure, but that shouldnt deter policy makers and regulators from devising a methodology.

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Potential benefits
Peak load reduction. TOD price signals has unique potential for India. AT& C loss reduction. This is a major commercial and regulatory consideration. Discoms may consider communication technology. Self-healing. A smart grid automatically detects and responds to routine problems and quickly recovers, minimizing downtime and financial loss. Consumer motivation. Smart grids give consumers visibility into pricing offers an opportunity to control usage Attack resistance. Smart grids have security built-in from the ground up. Improved power quality. A smart grid helps provide power free of sags, spikes, disturbances and interruptions. Accommodation of all generation and storage options. Enables interconnection to distributed sources of power and storage Enabled markets. Supports investment and innovation. Optimized assets and operating efficiently. Lowers need for construction of new infrastructure and enables sale of more power through existing system.

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Risk factors
The Impact of a Smart Grid projects scale and complexity Uncertainties create a financial risk that actual benefits from a smart meter plan may prove to be less than the stated projections. The Systems Integration Effect The costs and benefits of a partial, stand alone Smart Grid implementation might be notably less attractive than the costs and benefits of a broader, holistic program. Accelerated depreciation of technology The technological and cost curves for computers are very different from the equipment historically used in the electric industry. If advanced metering systems exhibit technological and cost behaviors similar to those of computers, their useful lives may turn out to be shorter than estimated. Risk of stranded assets This could involve equipment that was, at the point of installation, state-of-the art but before it reached the end of its useful life it was eclipsed by newer technology costing much less.

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Whats the way forward?

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Connecting the smart grid dotsTM framework
Connecting the smart grid dots framework is trade marked by PA Consulting

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You may need to rebuild the ship, but you cant stop sailing
There is much unfinished business to be taken care of before adopting advanced smart grid features on a broad scale, but action should not be delayed. Transitioning to a smart grid vision tailored to Indias unique circumstances would include: Develop a national vision and a flexible plan to pursue smart grid benefits Build on R-APDRP and link service quality improvements to measurable KPIs Develop smart grid pilots to reinforce operational efficiency at discoms Conduct customer and marketing surveys to refine the understanding of what drives customer satisfaction Craft policies and regulations to create a more receptive environment for smart grids by encouraging innovation, establishing interoperability standards, and allowing more market-oriented and entrepreneurial solutions. Implement techno-commercial proof of concept pilot projects for initiatives that have potentially high impacts, including those that can be implemented independently of the grid.

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Whats the next move?

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Overall, the major elements include:

Developing a smart grid vision Conducting appropriate communication to educate and develop consensus Identifying viable funding options Implementing appropriate policy and regulatory actions to set common standards and encourage innovation. In tandem with these actions, certain techno-commercial pilot projects could be implemented to demonstrate their commercial viability. A high-level view of the next steps is presented in the following table.

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Smart grid focus areas for Jodhpur power utility

Reduce AT&C Losses / Improve Efficiency Reduce / Mitigate Carbon Emissions Improve Service Quality / Enhance Transparen cy Facilitate Demand Response and Energy Efficiency Transform the Biz Model / Accelerate Reform
Possible Pilot Project/Study
Reduce Demand on Discoms
1. Link R-APDRP to measurable service- quality KPIs 2. Smart green apartment complex 3. Replacement of small- scale gensets with renewable energy 4. Off-grid renewable energy for irrigation pumping 5. Distributed RE generation in remote rural villages 6. TOU rate pilot project 7. Advanced Volt/VAR support 8.Direct debit delivery of subsidies coupled with cost-based tariffs
High potential impact Contributing impact Enabling precondition

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Off-Grid Renewable Energy for Irrigation Pumping

Business Case
Many of Indias 10,000,000 irrigation pumps are powered by electricity that is provided free or at a nominal tariff. These dysfunctional but politically correct tariffs have caused the wasteful use of water and electricity. Underground aquifers are being depleted at an ever-increasing rate and estimates of electricity used for irrigation pumping range from 20 to 30% of total. Distributed renewable energy (e.g., wind, solar) could be used to provide power to operate pumps that could irrigate fields directly or pump water to storage tanks for later use or, alternatively, energize batteries. A one-time capital grant to offset the installation cost of such a system might be justified in terms of the value of subsidies to the power sector that could be discontinued. This could be integrated as part of an ESCO Agricultural DSM solution as is being tested at Doddaballapur, Karnataka or with other models considered (e.g., farmer cooperative), including the franchise model to improve the economic viability of franchises with significant agricultural demand.
Implementation Approach
Analyze EA03 and state regulations to identify preconditions Survey RE and high-efficiency pump manufacturers to identify the technology options and estimated costs Study the results of Ag DSM pumping pilots and franchise pilots Develop an economic model, evaluate costs and benefits, and assess funding options Plan demonstration pilots for several regions with different RE.
Key Challenges and Questions

A intensive program to educate farmers will likely be required Regulatory approval and assent by a discom may be required if an ESCO (with a contract with the local discom) will own the RE source Vested interests who get free electricity under Ag tariffs may oppose something that reduces the known benefit they now receive The economic viability of the program might require metering and possibly a cost-recover mechanism, e.g., tariff.
Benefits
Reliable electricity for irrigation pumping Enhanced control of ability to irrigate crops for farmers Improved agricultural outcomes, i.e., crop quality, farmer incomes Reduction in power sector subsidies
Costs
The initial capital cost could be significant Installation and O&M costs are unknown.
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The secret to survival is to embrace change and to adapt

- Rohinton Mistry, A Fine Balance

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The Smart Grid Vision For Jodhpur Power Utility

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THE SMART GRID VISION FOR JODHPUR POWER UTILITY

Rakesh Kumar Goyal 22nd April 2010

PA CONFIDENTIAL - Internal use only

The Smart Grid is the future of the electric industry

PA CONFIDENTIAL - Internal use only

Why are efficient electricity networks important?

PA CONFIDENTIAL - Internal use only

Electricity is the premium form of end-use energy

PA CONFIDENTIAL - Internal use only

Indias power sector has added challenges

The power sector is also one of the biggest carbon emitters

PA CONFIDENTIAL - Internal use only

An historic convergence is reshaping the electric business

PA CONFIDENTIAL - Internal use only

Technological leapfrogging offers intriguing possibilities

PA CONFIDENTIAL - Internal use only

What, exactly, is a Smart Grid?

PA CONFIDENTIAL - Internal use only

The Smart Grid is a vision more than a blueprint

PA CONFIDENTIAL - Internal use only

The Smart Grid environment spans the electricity value chain

Advanced technologies will make smart grids possible

PA CONFIDENTIAL - Internal use only

Technology enables improvements in many areas

Reduce operating costs

Reduce commercial losses

Increase electricity supply

But where does the customer fit in?

PA CONFIDENTIAL - Internal use only

Customer response is a critical success factor for Smart Grids

PA CONFIDENTIAL - Internal use only

PA CONFIDENTIAL - Internal use only

Smart Grid cost-benefit analysis warrants a broad-gauged approach

PA CONFIDENTIAL - Internal use only

PA CONFIDENTIAL - Internal use only

PA CONFIDENTIAL - Internal use only

Whats the way forward?

PA CONFIDENTIAL - Internal use only

Connecting the smart grid dotsTM framework

Connecting the smart grid dots framework is trade marked by PA Consulting

PA CONFIDENTIAL - Internal use only

Whats the next move?

PA CONFIDENTIAL - Internal use only

Overall, the major elements include:

PA CONFIDENTIAL - Internal use only

Smart grid focus areas for Jodhpur power utility

Possible Pilot Project/Study

Reduce Demand on Discoms

PA CONFIDENTIAL - Internal use only

Off-Grid Renewable Energy for Irrigation Pumping

Key Challenges and Questions

The secret to survival is to embrace change and to adapt

PA CONFIDENTIAL - Internal use only

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