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
 Smart Grid Maturity Model
L-5
Innovation and Optimization along the Supply Chain
L-4
Intra-Domain Cross Domain Integration and Optimization
Optimization

Optimize Optimize Optimize

Analyze Analyze Analyze
L-3 Communicate Communicate Communicate
Monitor Monitor Monitor
Measure Measure Measure
Customer Operation Grid Operation Work and Asset
Management
Infrastructure
Domain

Measured Automated Widespread

Estimated Manual Limited

Information Processes Communications 2

 Smartness is Step-by-Step & Continuous

Technology Evolution

Smart Restoration can be faster with analysis and AMI

With the use of AMI, OMS, Appropriate

Integrated Automated system, Much time saved, one section affected PQM,PLM, GIS,SCADA use of
till fault rectification, other section till isolation of fault network
Real-time analysis & control of systems
Managed with FLISR flexible
Reliability of system improve with alternate
sources of supply With the use of RMUs, switches
devices,
sensors,
Measured Fault location identification is faster networking of
Whole network affected from fault Fault location detection through
FPI
above and
analysing
Un- Whole system affected till fault rectification software make
measured much delay in Restoration
Radial feeder without backup and manual
system Smart
fault location identification, rectification and
system restoration

3
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”

4
Evolving Power Sector

5
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
 Public Charging Stations
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

No. of points/connector
Type Connectors Rated Voltage (V)
Guns (CG)
CCS (min. 50 kW) 200-1000 1/1
Fast CHAdeMO (min. 50 kW) 200-1000 1/1
Type-2 AC (min. 22 kW) 380-480 1/1
Bharat DC-001 (15 kW) 72-200 1/1
Moderate / Slow
Bharat AC-001 (10 kW) 230 3/3 of 3.3 kW each

Each Charging station need to provide connected load of minimum 150 Kw and a
charging station may be required after every 2-3 kms. 7
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
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
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
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 2010
and 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

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
 Smart Grid Solutions
System Balancing

Real-time
Better Demand Integrated
Smart inverters system
forecasting response storage
awareness

• Widespread • Inverters and other • Smart meters, • Storage can help to • Sensors across
instrumentation power electronics coupled with smooth short-term networks allows
and advanced can provide control intelligent variations in RE system operators to
computer models to system appliances and output, as well as have real-time
allow system operators, as well even industrial to manage awareness of
operators to better as to automatically scale loads, can mismatches in system conditions,
predict and provide some level allow demand-side supply and and the ability to
manage RE of grid support. contributions to demand. actively manage
variability and balancing. grid behavior.
uncertainty.

13
 Top-5 Ranked Technologies for SG Drivers
0 5 10 15 20 25 30 35
Advanced metering infrastructure (AMI)
Distributed energy resources integration
Smart network management for coordinated transmission Systemefficiency
Information and communications technology improvements
Renewables energy sources integration

Fault detection, identification, and restoration (FDIR)

Distribution management systems and outage management Reliability
Distributed energy resources integration improvements
Advanced metering infrastructure (AMI)
Smart network management for coordinated transmission

Renewables energy sources integration

Wind
Distributed energy resources integration RE standards or
Solar photovoltaic and solar thermal energy targets
Hydro power

Advanced metering infrastructure (AMI)

Smart homes Enabling new
Information and communications technology products, services,
Distributed energy resources integration and markets
Distribution management systems and outage management

Advanced metering infrastructure (AMI)

Smart homes Enabling customer
Information and communications technology choice and
Distributed energy resources integration
participation
Building energy management and automation

Condition-based monitoring and maintenance Reducing

Distribution management systems and outage management… operating and
Advanced metering infrastructure (AMI) maintenance costs
Information and communications technology
Distribution feeder circuit automation
Source: ISGAN Annex-2 Survey from 19 participants 14
 Smart Grid Pilot Projects
Remaining 1 pilot Kala Amb, HP
N
nearing 10 out of 11 pilots
(HPSEB)
Siliguri, WB
Manesar, SGKC (WBSEDCL)
completion declared go-live /
Panipat, HR
(UHBVN) (POWERGRID)
IIT Kanpur
completed / commercially (IITK)

operated

1.56 lakh Smart Naroda, GJ

Agartala, TR
(TSECL)
Meters installed out (UGVCL) Guwahati, AS
(APDCL)
of 1.66 lakh Jeedimetla, TS
(TSSPDCL)
envisaged Mysore, KA
(CESC)
Puducherry, PY
(PED)

11 pilots including
SGKC Completed / Declared Go-Live / Commercially Operated
Nearing Completion
Map not-to-scale

➢ 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
Smart Meter: Benefit Analysis
Current Operations Smart Meter Operations

Energy • Estimated and done at sub- • Enable near real time energy accounting
Accounting division/sub-station level/feeder level at Feeder and DT level.

• Meter Readers (third party*) walk from • Send interval data directly to the utility
Meter house to house to capture meter data. and hence eliminating most of manual
Key Benefits

• Manual Punching of meter data by meter reading and punching labor costs
Reads
employees

• Field visits required to verify if meter is • Real-time remote diagnostic to determine if

Meter functioning correctly/ damaged meter is operating normally. If meter
Operations • Manual visits for meter disconnection/ receiving voltage, no field personnel
reconnection required to investigate
• Enable auto disconnect/ reconnect
• Overall Billing cycle takes around 15-
20 days • Billing cycle to reduce by 11 days
Billing • Average or provisional billing for cases • No cases of average billing
of meter failure or inaccessible
consumer
17
Smart Meter: Benefit Analysis
Current Operations Smart Meter Operations

• Lack of accurate records on • Reduced Distribution Transformer

Load Failure
sanctioned load
Management • With monitoring of sanctioned load
• Sizing of DT based on
estimates use and utilization of DT, optimized
Key Benefits

transformer load planning can be

undertaken
• Current meters do not offer Generate tampering alarms and
Power Theft capabilities to detect monitored meter data to identify
tampering (mis-wired or theft.
bypassed meters)

• Large no. of complaints Enable reduction in consumer

Grievance
related to meter reading and complaints on bill, meter failures
Redressal billing and outages and hence reducing
• Revenue department involved cost for grievance redressal
in both recovery and
grievance redressal
18
Technology Readiness Level (TRL)

TRL
System proven in operational environment
9

TRL
System complete and qualified
8

TRL
7
Integrated pilot system demonstrated AMI
TRL
Prototype system verified
6

TRL
Laboratory testing of integrated system
5

TRL Laboratory testing of prototype component or

4 process

TRL
Critical function, proof of concept established
3

TRL Technology concept and/or application

2 formulated

TRL
Basic principles are observed and reported
1

19
TRL for smart grid drivers

TRL
9
System proven in operational environment Revenue Efficiency Improvement
TRL
System complete and qualified
8
AMI
{
TRL Reliability Improvement
Integrated pilot system demonstrated
7

TRL
Prototype system verified
6 Reducing O&M Cost
TRL
Laboratory testing of integrated system
5

TRL Laboratory testing of prototype component or

4 process

TRL
Enabling New Products, Research

{
Critical function, proof of concept established
3 & Market
TRL Technology concept and/or application
2 formulated Enabling Customer Choice &
TRL
Basic principles are observed and reported Participation
1

20
 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:

Governing Council
Chair – Minister of Power
Convenor – AS (Tx) *

State Level Project

Empowered Committee Technical Committee
Management Unit
Chair – Secretary (Power) Chair – Chairperson, CEA
Chair – Energy Secretary
Convenor – AS (Tx)* Mem. Secy. – Dir. NPMU
(State)

NSGM Project Management

Smart Grid Knowledge
Bilingual website
Utility Smart Grid Cells Unit https://www.nsgm.gov.in
Centre (SGKC)
Head – Director NPMU

21
 Mission Update - Achievements
• Five projects sanctioned (₹686.6 Cr.)
• 9 National & 3 International
for ~7.50 lakh consumers. 2 projects
workshops
under approval and 2 projects in
pipeline • SG Course Developed
PROJECT CAPACITY • 11 Training programs for utilities (320
• Smart Grid Readiness – Self PLANNING BUILDING AND
Assessment Tool (SGR-SAT) utility engineers/professionals)
• Smart Meter Rollout plan submitted
AND COMMUNICATI • Bilingual website
• Impact assessment of Pilot projects
MONITORING ONS UNIT • Regular participation in ISGAN and
done by QCI UNIT (PPMU) (CBCU) Mission Innovation

INFORMATION TECHNOLOGY • IS 16444 (Part 1 & 2) and IS 15959

• AMI use cases developed AND CYBER AND (Part 2 & 3)
• Workshop on cloud infrastructure & SECURITY UNIT STANDARDS • Model Smart Grid Regulations
interoperability in association with (ICSU) UNIT (TSU) • NSGM Framework, Model RfP &
TSDSI Model DPR
• NSGM website enforced with HTTPS • Active participation in LITD 10, LITD
28 and ETD 13

22
 NPMU Challenges

• Training MoUs with

• Projects Worth Rs.800 Crs.
pending -lack of funds- • CPRI, Bangalore
✓ Agartala (TSECL), Naroda (UGVCL), • NPTI, Faridabad
PROJECT CAPACITY
Mumbai (Tata Power), Mysore (CESC),
BUILDING • SLPMU meetings held /Proposed
Chennai (TANGEDCO) PLANNING
AND • 5 out of 19 SLPMU
• High (70%) counterpart funding AND
MONITORING COMMUNICA • SLPMU formed for
• Microgrid relevance w.r.t. Grid TIONS UNIT
extension UNIT (PPMU) • 19 out of 37 states /UTs
(CBCU)

• Distributed Renewable energy • Plug & play/ Modular

INFORMATIO TECHNOLOGY
source penetration- Circle wise Communication Module
N AND CYBER AND
• Reliability improvement SECURITY STANDARDS • Standardization of Sub-Ghz RF
(Circle/feeder/DT/Discom) UNIT (ICSU) UNIT (TSU) profile
• DR relevance in supply • Cloud infrastructure’s
sufficiency. interoperability

23
 Smart Grid – Role of Regulators
• Smart Grids cannot evolve without dynamic,
flexible regulation (“Enabling”)
Investment Approval Recovery through Tariff
• Regulator will be a facilitator to smart grids
business (“Catalyst”)

• Discoms need to demonstrate clear positive

Delivering policy objectives.
benefits to consumers (“Business Case”)
Ensuring value and protection to
customers
• Regulators more than ever need to protect the
interests of the consumers (“Avoid Tariff
Shocks”) and (“Data and Privacy Protection”)
Promoting end use Providing Incentives

24
INVESTMENT
 AMI: Service Model
Smart Grid Services
PROJECT 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
O & M Charges (@ 7.5 %)
2.1. 20.25
(In line with ULDC practice)
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
27
 AMI: Service Model
Y1 Y2 Y3 Y4 Y5 Y6 Y7
AT&C Reduction
5% 2% 1% 1% 1% 1% 1%
Revenue projections
(business as usual 2081 2194 2285 2381 2480 2583 2660
scenario) (Rs. Cr.)
• Consumers- 5.5 lacs Increased Revenue for
• Energy Input- 3500MU
Utility due to Smart AMI 82 135 165 196 230 265 273
• Present Revenue -1941 Cr (Rs. Cr.)
• AT&C losses- 20%

Net Revenue for Utility YoY (Rs. Cr.)

250
209.45
217.45
200
140.45
150 174.45

100 79.45
109.45
50
26.45
0
Y1 Y2 Y3 Y4 Y5 Y6 Y7

• Profitable from the first year of operations

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

28
 Funding Mechanism-Investment Business Model
1 2 3 4
Data Reading Data Transportation Data acquisition & Control Data Analytics
Components

Smart Meter Comms Collector/DCU HES MDM Analytics

Capex – Investor based model

Capex Opex/endpoint/month
Model

Capex Opex/endpoint/month

Return on Fixed Duration Capex

Capex Opex/endpoint/month Capex

Demand Response : Asses High Revenue Customer Satisfaction : DG free/Customer

AT & C Loss/min 20%
Drivers

engagement : opportunity loss Electric Vehicle

Stress

Input Power Mgt : High charge agreement at DT Metering/DTMU : No of DT

Outage – Opportunity loss DER - Futuristic
Peak burn/year
Actors

MAP/MSP CSP DSP

Return on System Level SLA : L+G Business Level SLA : TPDDL
NSGM fund 30% Utility fund 20% Investor 50% Plan → Build → Operate → Own

Upfront money to SP Utility Benefits through Business case and reliability charge/unit to consumer
29
 Key Regulatory Considerations for Smart Grid Projects
Investment 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 likely
to benefit the stakeholders

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

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

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

Source: http://www.enernoc.com/our-resources/case-studies/547-midwest-energy-grows-new-energy-supply-with-enernoc-agricultural-demand-response 30
 California Utility Electric Rate Plan Options
Tariff Plan Rate plan details Ways to save money and energy
• Save money by reducing energy use within the lower-
• It includes a baseline credit that offers residential customers
Time-of-Use (Peak Pricing 4 - priced tier (baseline allowance).
a price discount for usage below their baseline allowance.
9 p.m. Every Day) • Shift usage to the least expensive hours: before 4 p.m.
• This rate offers bill protection for the first year.
and after 9 p.m. every day.
• This rate plan has no pricing tiers or baseline allowance. • Reduce your energy usage overall.
Time-of-Use (Peak Pricing 4 -
• Prices vary based on time of day, day of the week, and the • Shift usage to the least expensive hours: Mon-Fri or any
9 p.m. Weekdays) E-TOU-B
season. time on weekends and most holidays.
• Save money by reducing energy use within the lower-
• This rate plan’s prices vary based on the time of day
priced tier (baseline allowance).
Time-of-Use (Peak Pricing 3 - electricity is used, day of the week, and the season.
• Shift more usage to the least expensive hours: before 3
8 p.m. Weekdays) E-TOU-A • It includes a baseline credit that offers residential customers
p.m. and after 8 p.m. Mon-Fri or any time on weekends
a price discount for usage below their baseline allowance
and most holidays.
• This rate plan has multiple pricing levels, known as tiers. • You can save money each month by using less
Tiered Rate Plan E-1 • After exhausting allotted electricity quota for each tier within electricity and avoiding the higher-priced tier. Prices do
a billing period, you move to the next, higher priced tier. not vary throughout the day.
• One meter is used for both EV/battery charging and home • Save money by charging your EV during off-peak hours.
Home Charging EV2-A (Non-
energy use. The price for usage varies depending on the time • Consider shifting other household energy use to less
tiered, Time-of-Use)
of day. expensive, off-peak hours, especially 12 a.m. to 3 p.m.
• Involves installing a second (separate) electric meter for
• Save money by charging your EV at night during
EV-B (Non-tiered, Time-of- charging your EV.
offpeak hours, especially after 11 p.m. on weekdays
Use) • The price you pay for vehicle charging is based on the time of
and after 7 p.m. on weekends and holidays.
day, and day of the week. 31
 Electricity Vending System (EVS) – A Singapore Case Study

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)
Siemens Power
Automation
 Quick statistics of the Trial Run (1)
• Total number of
Purchases
Number of Total Purchase
Number of Purchases Made purchases 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

Siemens Power
Automation
 Singapore Open Electricity Market

Open Market Insight Inherent Features

• Pilot test of the Open Electricity Market began in Jurong • Singapore Power Group (SPG) continues to operate and
on 1st Apr’18- Homeowners were given an option for the maintain the power grid, while providing market support
first time for switching supplier. services such as billing and meter reading
• For five months, more than 30% of consumers switched • SP Group is paid for these network costs and market
to different provider, with savings of about 20% support services that are reviewed annually and regulated
• Energy Market Authority (EMA) announced nationwide by the EMA
roll-out of the Open Electricity Market in Sep’18 • Opting for a different provider will not affect supply
• The agency surveyed 400 people that have switched reliability
retailers; about 80% agreed that the initiative has its • Even as retailers leave the Open Electricity Market, there
benefits such as competitive pricing and innovative will be no power disruptions
offers. • 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.
34
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.
35
 Demand Response for Flexibility

✓The current pricing mechanism does not provide appropriate signal to end consumer for
judicious 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 a
neutral bill impact from participation.

✓As per survey data, there is probability that consumers will shift/ reduce their loads when
ToU 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 of
Australians would prefer to see peak demand managed through demand response rather than
building new generators and higher capacity networks.”
36
 Regulatory Sandbox: DR Case Study
BSES Yamuna Tata Power, Delhi Tata Power, Mumbai
• BSES Yamuna implemented DR • Participation - 161 customers > • Tata power, Mumbai
program to manage its peak load 100 kW (cold storage, commercial, implemented both aggregator
and maintaining tie- line schedule. education, flour mill, hospital, based and auto DR projects in
• Overall, 9-15 consumers industrial, pumping, retail. Mumbai at Malls, Hospitals, IT
participated in each event, • 17 DR events for 30 to 60 minutes parks and Municipal sewage
• Resulted in demand savings of each in the summer of 2014 treatment plants etc.
0.89 to 3.45 MW per event. • Achieved max shed potential of • Aggregator level DR was triggered
7.2 MVA with a cumulative saving 21 times each for duration of 2
• Maximum reduction provided by
of 0.063 MUs. hours.
manufacturing units, followed by
• Max demand reduction ranged • 15 MW curtailment achieved.
hotels, malls, hospitals, and others
from 2% (for Education) to 28%
(for Packaging).

37
 Delhi: Seasonal Variations in FY 2018-19
Max Peak Demand Max Off Peak Demand Min Peak Demand Min Off Peak Demand
8000
Peak Time - 20:00 Hrs Off Peak Time -03:00 Hrs
7000 23rd June

6000
Demand in MW

5000

4000

3000

2000

1000

0
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

Max difference b/w Peak & Off peak Demand: 1955 MW (Dec.)
Delhi: Load Curve for 23rd Jun’18

39
 EV Penetration & Typical Solar Rooftop Generation Profile

To assess the impact of EVs on the grid, BYPL selected a

feeder by considering aspects like EV charging stations,
Solar RT penetration in the feeder, feeder loading &
voltage profile, DT loading, Consumer mix monthly
consumption 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. & corresponding
feeder load is 2.99 MW (EV load is 8.6% of the feeder load)
• Total Energy consumed by feeder is 86.73 MWh including
3.24 MWh by the connected EV loads (3.74% of feeder
daily energy consumption) & 12.75 MWh Solar generation.
Observations:
• Impact of EV charging during rooftop PV generation is
minimum or nil.
• Feeder can take up more EV Charging penetration during
PV generation.
• Additional PV load can be taken with PV generation by
implementing ToU.

40
 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 41

DR and DSM

42
 Way Forward – State Level PMUs
SLPMUs at 19 States/UTs: Implementation & monitoring Smart
1. Andhra Pradesh Grid Projects
Vision, goals and roadmap for the state
2. Assam
Smart Grid activities
3. Chandigarh
4. Chhattisgarh Process change based on learning
Develop program proposals &

Expectations from SLPMU

5. Delhi submit to NSGM

Functions of SLPMU
6. Haryana
Adopting dynamic tariff
7. Himachal Pradesh Evaluate program/project
8. Jammu & Kashmir proposals from utilities
9. Jharkhand Consumer engagement
10. Karnataka Work with SERCs to develop initiatives / programs
11. Kerala state regulations and policies
12. Maharashtra Large scale rollout of smart
13. Odisha Adoption of Smart Grid standards metering
14. Puducherry
15. Rajasthan Monitor the impact of Smart Grid Coordinate among various
16. Tamil Nadu activities schemes for sustainable outcomes
17. Telangana
18. Tripura Funding for Smart Grid projects through
19. West Bengal innovative business models

43
Tariff Design
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)

45
 Dynamic Tariff Option for DR

Components considered for tariff design

• Cost of generation and transmission
Components of ARR

• Service cost of DISCOM

• Reactive power consumption
• Voltage level
• Sanctioned/contracted load
• Subsidy
• Unscheduled Interchange charges for deviation from agreed drawal and generation
schedule
Proposed

• 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

46
Innovation & Standard

Discontinuity
Performance

New S-Curve
Maturity
New Standard
Innovation development/
Takeoff Modification

Ferment Standard
development/
Modification

Time
47
Regulatory Sandbox

Technology Technology System Integration

Development Integration

Market Integration

48
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

49
 Thank You
www.nsgm.gov.in @NsgmIndia

50
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
Grid Connectivity Standard (33kV & Above)
Parameters Limit Relevent Standards
Voltage and Current Harmonics - IEEE 519
Flicker - IEC 61000
DC current Injection 0.50% -
Measuring and metering of harmonics Once in a year IEC 61000-4-30
Reactive Power Capability to maintain
±0.95 -
power factor at POI
47.5 Hz - 52 Hz (rated power in the range
Frequency withstanding capability -
of 49.5 - 50.5Hz)
Frequency Droop Control 3 to 6% (Dead band max ±0.03 Hz) -
Ramp Rate Control ±10% per minute -

1.3 < V - Instant trip

1.3 ≥ V > 1.2 - 0.2 Sec
HVRT -
1.2 ≥ V > 1.1 - 2 Sec
V ≤ 1.1 - Continuous

LVRT - -
Short Circuit Ratio (SCR) not less that 5 at POI -
Grid Connectivity Standard DERs (Below 33 kV)
Parameters Limit Relevent Standards
Harmonic current injection - IEEE 519
Flicker - IEC 61000
DC current Injection 0.50%
Measuring and metering of harmonics - IEC 61000-4-30
CEA (measures relating to safety &
Safety -
Electricity Supply) Regulation, 2010

110% - 80% (clearing time upto 2

Over and Under Voltage protection -
Sec)

50.5 Hz - 47.5 Hz (clearing time

Over and Under Frequency protection -
upto 0.2 Sec)

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

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

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