Final Report Bses

SUMMER INTERNSHIP PROJECT REPORT JULY –AUGUST 2013 ON

1.AUTOMATION OF REPORTS AND SCORECARDS EXISTING ON TECHNICAL AND COMMERCIAL SIDE OF BSES POWER DISTRIBUTION BUSINESS 2. TO STUDY THE OVERALL FEASIBILITY AND APPROACH TOWARDS SMART GRID APPLICATIONS @

BSES RAJDHANI POWER LIMITED Submitted by: Priyadarshini Kumari MBA (Power Management) III Semester, College Roll No-61

Sector-33, Faridabad – 121003, Haryana (Under the Ministry of Power, Govt. of India)

MAHARISHI DAYANAND UNIVERSITY, ROHTAK Page | 1

DECLARATION I, PRIYADARSHINI KUMARI, Roll No. 61 Class of 2012-14 of the MBA (Power Management) program from NPTI Faridabad hereby declare that the Summer Training Report entitled 1.AUTOMATION OF BUSINESS REPORTS AND SCORECARDS EXISTING ON COMMERCIAL & TECHNICAL SIDE OF BSES POWER DISTRIBUTION BUSINESS. 2. TO STUDY THE OVERALL FEASIBILITY & APPROACH TOWARDS SMART GRID APPLICATIONS. is an original work and has not been submitted to any other Institute for the reward of any other Degree. A seminar presentation of the report was made on and the suggestions as approved by the faculty were duly incorporated.

Presentation In charge

Internal Guide

Signature of the candidate

Counter signed by Principal Director/Director CAMPS-NPTI

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ACKNOWLEDGEMENT First and foremost I would like to express my sincere thanks and gratitude to BSES RAJDHANI POWER LIMITED. for giving me the opportunity to undergo this project. I wish to express my sincere and grateful thanks to the people who helped and extended their support in this endeavour. I would like to thank Mr. MUNISH SHARMA, for his support from time to time and for providing the necessary resources for the timely completion of the project. I am also thankful to Mr. J.S.S.Rao Principle Director(CAMPS),

Mrs. Manju Mam

Director(CAMPS), Mrs. Indu Maheshwari ,Deputy Director (CAMPS), Mr. Rohit Verma ,Deputy Director (CAMPS), Mrs.Sugandha Aggrwal for giving valuable suggestions towards the project. Finally, I am highly obliged to Director (CAMPS), NPTI, who gave me the opportunity to do summer internship in a pioneer organization like BSES DELHI.

I take the opportunity to express my sincere thanks to Mrs. Daizy Ahuja, Mr. Kailash Kumar Bhatt & Mr. Sudhanshu Jha, for his scholarly guidance through the course of the project and without whose efforts, this project would not have been possible.

THANK YOU Priyadarshini kumari MBA (Power Management)

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EXECUTIVE SUMMARY  This report presents the past and current status of the reports generated in BSES Rajdhani Power Limited and the work done on the Automation of these reports. Basically, the reports generated in any company should be on an Automated Plateform.  I have done a detailed study on the formation of Dashboards and Scorecards which need to be automated to reduce the errors that are occurred in manually data entry in MS-Excel.  I have done a detailed study on how the concept of Smart Grid emerged, how the transition of the traditional electric power grid to the modern Smart Grid took place and the benefits and opportunities upon the implementation of Smart Grid.

 I have also done a detailed study of the challenges faced for the implementation of the Smart Grid, the analysis of typical cost configurations for the implementation of Smart Grid and the enabling technologies & driving forces which made the deployment of Smart Grids possible.

 I have done a detailed study on the implementation processes of Smart Grid going on in various states of India.

 I have also listed out the vendors of the Smart Grid equipments and their respective offerings for the deployment of Smart Grid technologies.

 And I have also discussed the vision of Smart Grid and importance of its implementation for the Indian power sector and the linkage of the Smart Grid with RAPDRP.

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LIST OF ACRONYMS  ABR -- AVERAGE BILLING RATE  AMI – ADVANCED METERING INFRASTRUCTURE  AMPS -- ASSISTANT MANAGER POWER SUPPLY  BAM -- BILL AMENDMENT MODULE  BD

-- BREAKDOWN CONSTRAINTS

 BST -- BULK SUPPLY TARIFF  CO -- COMMERCIAL OFFICER  CCO -- CUSTOMER CARE OFFICER  CE -- COLLECTION EFFICIENCY  DR – DEMAND RESPONSE  FD-INT -- FIXED DEPOSIT INTEREST  GIS – GEOGRAPHIC INFORMATION SYSTEM  G- SEC – GOVERNMENT SECURITY  GCC – GOVERNMENT CONSUMER CATEGORY  GPS – GLOBAL POSITIONING SYSTEM  HTLS – HIGH TEMPERATURE LOW SAG  HVDS – HIGH VOLTAGE DISTRIBUTION SYSTEM  ICD --

INTER COMPANY DEPOSIT

 IDC --

INTEREST ON DEBT COST

 IED – INTELLIGENT ELECTRONIC DEVICES  IEGC – INDIAN ELECTRICITY GRID CODE  IEX -- INDIAN EXCHANGE  JNNSM – JAWAHARLAL NEHRU NATIONAL SOLAR MISSION  KCC – KEY CONSUMER CATEGORY Page | 5

 MLCC – MEDIUM LOAD CONSUMER CATEGORY  MF -- MULTIPLYING FACTOR  MGI – MODERN GRID INITIATIVE  MOP – MINISTRY OF POWER  MTD -- MONTH TILL DATE  MISC -- MISCELLANEOUS  NHAI -- NATIONAL HIGHWAY AUTHORITY OF INDIA  PFC – POWER FINANCE CORPORATION  PGCIL – POWER GRID CORPORATION OF INDIA  PMU – PHASOR MEASUREMENT UNIT  PXIL -- POWER EXCHANGE OF INDIA LIMITED  REC – RENEWABLE ENERGY CERTIFICATE  RTTR – REAL TIME THERMAL RATING  SAP – SYSTEM AND APPLICATION PROGRAMMING  SCADA – SUPERVISORY CONTROL AND DATA ACQUISITION  SD -- SHUTDOWN CONSTRAINTS  ST -- STREET LIGHT  VSMC – VOLTAGE STABILITY MONITORING AND CONTROL  WAMS – WIDE AREA MONITORING SYSTEM  YOY -- YEAR OVER YEAR  YTD -- YEAR TILL DATE  YTM – YEAR TILL MONTH

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LIST OF FIGURES FIGURE 1- Delhi Distribution Area...............................................................17 FIGURE 2- Consumer Profile .........................................................................21 FIGURE 3- Benefits of Automation Levels ...................................................33 FIGURE 4- Comparison of a system with & without Automation..................33 FIGURE 5- A Structure to Automate Reports in Excel...................................34 FIGURE 6- Automation Framework................................................................36 FIGURE 7- Proposed Framework for Automation...........................................37 FIGURE 8- Smart Grid Benefits......................................................................52 FIGURE 9- Technologies of Smart Grid..........................................................60 FIGURE 10- Technologies Contribution to Smart Grid...................................76

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TABLE OF CONTENTS CHAPTER 1 -- INTRODUCTION

1.1 INTRODUCTION..........................................................................................................10 1.2 PROBLEM STATEMENT...........................................................................................11 1.3 OBJECTIVE OF PROJECT........................................................................................12 1.4 SIGNIFICANCE OF PROJECT.................................................................................13 1.5 COMPANY PROFILE..................................................................................................14 1.5.1 History of Electricity in Delhi ...................................................................................14 1.5.2 About BSES (Group Profile) .....................................................................................14 1.5.3 BSES Delhi....................................................................................................................16 1.5.4 BSES Rajdhani Power Limited (BRPL).....................................................................16 1.5.5 BSES Yamuna Power Limited (BYPL)......................................................................16 1.5.6 Geographical Reach......................................................................................................17 1.5.7 Business of the Organization........................................................................................18 1.5.7.1 Delhi Supply Division.................................................................................................19 1.5.7.2 Operational Statistics.................................................................................................19 1.5.8 Classification of Supply...............................................................................................20 1.5.9 Customer Profile..........................................................................................................20

CHAPTER 2 – PROJECT STRUCTURE

2.1 REVIEW OF LITERATURE.......................................................................................22 2.2 RESEARCH METHODOLOGY..................................................................................23

CHAPTER 3 – AUTOMATION OF REPORTS ACROSS BSES POWER DISTRIBUTION BUSINESS

3.1 REPORTS PREPARED IN BSES (BRPL & BYPL).................................................24 Page | 8

3.2 SCORECARDS PREPARED IN BSES (BRPL & BYPL).......................................29 3.3 NEED FOR AUTOMATION OF REPORTS............................................................31 3.4 BENEFITS OF AUTOMATION.................................................................................31 3.5 TO AUTOMATE REPORTS IN EXCEL..................................................................34 3.6 PROPOSED FRAMEWORK FOR AUTOMATION...............................................35 3.7 OVERVIEW FOR AUTOMATION OF REPORTS.................................................37 3.8 CREATION OF DASHBOARD..................................................................................38 3.9 FREEZING OF FORMAT AND OUTPUT SCREEN IN EXCEL.........................40

CHAPTER 4 – FEASIBILITY STUDY OF SMART GRID 4.1 SMART GRID – DEFINITION, BASICS AND FEATURES.....................................45 4.2 SMART GRID IMPLEMENTATION IN GENERATION,TRANSMISSION AND DISTRIBUTION SECTOR..................................................................................................47 4.3 SMART GRID CHARACTERISTICS AND BENEFITS..........................................49 4.4 TECHNOLOGIES USED IN THE FIELD OF SMART GRID.................................57 4.5 MAJOR CHALLENGES FACED WHILE DESIGNING SMART GRID TECHNOLOGY.....................................................................................................................60 4.6 BARRIERS TO SMART GRID IMPLEMENTATION IN INDIA...........................64 4.7 REGULATORY FRAMEWORK OF SMART GRID................................................65 4.8 SMART GRID PILOT PROJECTS RUNNING IN INDIA.......................................68 4.9 RECENT DEVELOPMENTS .......................................................................................77 4.10 INDIAN SMART GRID FORUM................................................................................78

CHAPTER 5 – CONCLUSION AND THE WAY FORWARD

5.1 CONCLUSION................................................................................................................80 5.2 RECOMMENDATIONS & SUGGESTIONS..............................................................81 5.3 BIBLIOGRAPHY...........................................................................................................82

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CHAPTER 1 1.1 INTRODUCTION Automated Reports are often needed in the business world. In any business, the underlying business data is constantly changing as new products are sold , payments are received and new employees are hired. To enable managers to make informed decisions , business intelligence reports need to be available with data that is as current as possible. Additionally, with the business units spread across continents, automating the reporting process is even more important. A smart grid includes an intelligent monitoring system that keeps track of all electricity flowing in the system. It also incorporates the use of superconductive transmissionlines for less power loss, as well as the capability of integrating renewableelectricity such as solar and wind. When power is least expensive the user can allow the smart grid to turn on selected home appliances such as washing machines or factory processes that can run at arbitrary hours. At peak times it could turn off selected appliances to reduce demand.” A smart grid integrates new innovative tools and technologies with the T&D system that connects the entire grid all the way from generation to appliances and equipment inside consumer’s homes. A smart grid would create a digital energy system that will: • • •

Detect and address emerging problems on the system before they affect service, Respond to local and system-wide inputs and have much more information about broader system problems, Incorporate extensive measurements, rapid communications, centralized advanced diagnostics, and feedback control that quickly return the system to a stable state after interruptions or disturbances.

The evolution of smart grid can be mapped broadly in the following sequences – Manual Meter Reading → Automatic Meter Reading → Advanced Metering Infrastructure → Smart Meters → Smart Grid.

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1.2 PROBLEM STATEMENT Electric power distribution system is an important part of electrical power systems in delivery of electricity to consumers. Electric power utilities worldwide are increasingly adopting the computer-aided monitoring, control and management of electric power distribution system to provide better services to electric consumers. Therefore, research and development activities worldwide are being carried out to automate the electric power distribution system utilizing recent advancement in the area of IT and data communication system. At present, power utilities have realized the need for full scale distribution automation to achieve on-line system information and remote control system. The main motivation for accepting the distribution automation in developing countries such as India is to improve operating efficiency of distribution system through the automation and smart grid technologies. Therefore, automation of reports and implementation of smart grid are very reliable steps to provide accurate power supply to each and every house. The major driving forces to modernize current power grids can be divided in four, general categories. •

Increasing reliability, efficiency and safety of the power grid.

• Enabling decentralized power generation so homes can be both an energy client and supplier (provide consumers with an interactive tool to manage energy usage, as net metering). •

Flexibility of power consumption at the clients side to allow supplier selection (enables distributed generation, solar, wind, biomass).

•

Increase GDP by creating more new, green-collar energy jobs related to renewableenergy industry manufacturing, plug – in electric vehicles, solar panel and wind turbine generation, energy conservation construction.

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1.3 OBJECTIVE OF THE PROJECT

The main objectives of the project are :- To Provide schedule of automation and facilitate the work break down in terms of all critical business reports and scorecards existing on commercial and technical side of the BSES Power Distribution Business.

 To Study about about the implementation of SMART GRID in power sector and to develop a broadview of the initiatives taken in the field of SMART GRID by different states in India.

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1.4 SCOPE OF THE PROJECT 1. To review the existing set of performance reports (across BRPL & BYPL) in terms of

the

domain, frequency, user group, etc. 2. To study various resources in terms of databases and systems providing input for such MIS. 3. To prepare broad schema for automation & convergence of existing platforms especially Monthly Scorecard & proposed Daily Dashboard. 4. To know about Pert chart with scheduled timelines. 5. To study about the SMART GRID features with special reference to implement in transmission and distribution sectors. 6. To develop a broad view about the different technologies used in SMART GRID field. 7. To develop a broad view about the initiatives taken in India and also the various Pilot Projects running in India. 8. To find suggestive measures to use SMART GRID in India on a large scale and to get maximum benefit out of it.

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1.5 COMPANY PROFILE 1.5.1 History of Electricity in Delhi: The history of electricity in Delhi dates back to 1905 when M/s John Flemming Company was awarded the license as per Indian Electricity Act, 1903, for generation and distribution of power in Delhi. Electricity those days was a luxury and the privilege of the high ranking British officials and a few rich people. It was a rare and costly commodity with a perception of being dangerous. Infact even rich Indian accepted this at a much later stage. M/s John Fleming Company was replaced by the Delhi Tramway and Lighting Company, which was subsequently renamed as Delhi Electricity Supply & Traction Company. In 1939, The Delhi Central Electric Power Authority (DCEPA) was formed to run the services. In 1951, the DCEPA was taken over by the Delhi State Electricity Board, constituted under Indian Electricity (Supply) Act 1948. In 1958, Delhi Electricity Supply Undertaking came into existence and was once again converted to Delhi Vidyut Board in 1997. In July 2002, Delhi Vidyut Board unbundled into five successor entities – the three distribution companies, a transmission and a holding company. Two of the three distribution companies have been handed over to BSES, and one to TATA POWER. 1.5.2 About BSES: BSES Limited is India's premier utility engaged in the generation, transmission and distribution of electricity. Formerly, known as Bombay Suburban Electric Supply Limited, it was incorporated on 1st October 1929, for the distribution of electricity in the suburbs of Mumbai, with a pioneering mission to make available uninterrupted, reliable, and quality power to customers and provide value added services for the development of the power and infrastructure sectors. BSES caters to the needs of 2.07 million consumers over an area of 384 sq. km. with a maximum system demand of approximately 1198 MVA. With 7 decades in the field of power distribution, the Electricity Supply Division of BSES has achieved the distinction of operating its distribution network with 99.98% on-line reliability and has a distribution loss of only 29.9%. BSES was amongst the first utilities in India to adopt computerization in 1967 to meet the increasing workload and to improve services to its customers. With a view to optimally Page | 14

utilize trained manpower and expertise in the field of power, the company commenced contracting activities in 1966 by undertaking turnkey electrical contracts, thermal, hydro and gas turbine installations and commissioning contracts, transmission line projects etc. BSES set up its own 500 MW Thermal Power Plant and the first 2 x 250 MW units of Dahanu Power Station were synchronized and began commercial operation during 19951996. A dedicated 220 kV double circuit transmission line network with three 220 / 33 kV receiving stations have been installed to evacuate the power to the distribution area of the Company. This demonstrates BSES’ in-house capabilities ranging from engineering, operation & maintenance of power plants and transmission and distribution systems. BSES through international competitive bidding acquired an equity stake of 51% in three of the four Distribution Companies of Orissa. At present, BSES along with its subsidiaries provide electricity to more than 2.7 million consumers in an area covering about 1,23,000 sq. km with an estimated population of 34 million. In July 2002, Delhi Vidyut Board unbundled into five successor entities – the three distribution companies, a transmission and a holding company. Two of the three distribution companies have been handed over to BSES, and one to TATA POWER. As a part of its active support to the privatization process, BSES has recently acquired an equity stake of 51% in two of the three Distribution Companies of Delhi after unbundling and privatization of the erstwhile Delhi Vidyut Board. The two distribution companies, BSES Rajdhani Power Limited covering South and West areas and BSES Yamuna Power Limited covering Central and East regions provide electricity to around 22 lakhs consumers spread across an area of 960 sq kms (approx). BSES became part of the Reliance Group on January 18, 2003. BSES will be renamed ‘Reliance Energy’ to reflect the change in ownership, and to leverage brand equity of Reliance. The new name ‘Reliance Energy’ will directly communicate association with the internationally respected Reliance Group, and reflect the larger dimension of BSES’ future plans. So presently BSES deals with mainly distribution sector in the country 1.5.3 BSES Delhi Page | 15

Following the privatization of Delhi‟s power sector and unbundling of the Delhi Vidyut Board in July 2002, the business of power distribution was transferred to BSES Yamuna Power Limited (BYPL) and BSES Rajdhani Power Limited (BRPL). These two of the three successor entities distribute electricity to 22.6 lakh customers in two thirds of Delhi. The Company acquired assets, liabilities, proceedings and personnel of the Delhi Vidyut Board as per the terms and conditions contained in the Transfer Scheme.

1.5.4 BSES Rajdhani Power Limited (BRPL) BRPL distributes power to an area spread over 750 sq. km with a population density of 1360 per sq km. Its‟ over 12.2 lakh customers are spread 19 districts across South and West areas including Alaknanda, Khanpur, Vasant Kunj, Saket, Nehru Place, Nizamuddin, Sarita Vihar, Hauz Khas, R K Puram, Janakpuri, Najafgargh, Nangloi, Mundka, Punjabi Bagh, Tagore Garden,Vikas Puri,Palam and Dwarka. Since taking over distribution, BSES‟ singular mission has been to provide reliable and quality electricity supply. BSES has invested over Rs 3500 crore on upgrading and augmenting the infrastructure which has resulted in a record reduction of AT&C losses. From a high of 63. % AT&C losses in BYPL area the losses have come down to 29.8% a record reduction around 33%.Similarly, in BRPL area AT&C losses have been reduced from 52.% to 27.% - a record reduction of 29%.

1.5.5 BSES Yamuna Power Limited (BYPL) BYPL distributes power to an area spread over 200 sq kms with a population density of 4230 per sq km. Its 10.4lakh customers are spread over 14 districts across Central and East areas including Chandni Chowk, Daryaganj, Paharganj, Shankar Road, Patel Nagar, G T Road, Karkardooma, Krishna Nagar, Laxmi Nagar, Mayur Vihar, Yamuna Vihar, Nand Nagri and Karawal Nagar. BYPL distributes power to an area spread over 200 sq kms with a population density of 4230 per sq km. Its 10.4lakh customers are spread over 14 districts across Central and East areas including Chandni Chowk, Daryaganj, Paharganj, Shankar Road, Patel Nagar, G T Road, Karkardooma, Krishna Nagar, Laxmi Nagar, Mayur Vihar, Yamuna Vihar, Nand Nagri and Karawal Nagar. Page | 16

1.5.6 Geographical Reach Figure 1: Delhi Distribution Area

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SN Particular

Unit

BYPL Central)

(East&

BRPL(South

BSES

West)

Delhi

1.

Area

sq. km

200

750

950

2.

Customer

Cons/sq

4230

1360

1964

density

km 10.4

12.2

22.6

900

1420

2320

5000

8000

13000

3.

Total Registered Lacs Customers

4.

Peak Demand

MW

5.

Consumption per MU year

1.5.7 Business of the Organization

1.5.7.1 Delhi Supply Division: Caters to an area of 950 sq. Kms. Supply Area covers South Delhi, East Delhi, West Delhi and Central Delhi. Consumers include houses, residential complexes, high rise buildings, commercial Complex medium and large industrial houses, government establishment like Airport, Worship places, Milk Dairy, Mother Dairy and Municipal Hospitals, Sewerage projects etc. Caters to more than 22 lakh consumers. Provides highly reliable and continuous supply. All consumers are given metered supply only. Reliability 99.99 %

1.5.7.2 Operational Statistics Page | 18

Supply area

960 sq. kms(approx)

No. of Consumers

Above 22 lakhs

Population covered

Above 80 lakhs

System peak

5320 MW(approx)

Power Transformer

6024 MVA

No. of Dist. substations

9338(approx)

Dist Transformer capacity

5178.411 MVA

Power Factor

0.99

66 kV Capacitors

459.91 MVAr

33 kV Capacitors

226.52 MVAr

11 kV Capacitors

852.97 MVAr

LT Capacitors

297.20 MVAr

HT Mains

6285 kms (approx)

LT Mains

12240 kms(approx)

Street Light Poles

298089(approx)

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1.5.8 DELHI DISTRIBUTION NETWORK •

66/33/11 kV Sub Transmission Network.

•

Receiving Stations.

•

SALIENT FEATURES 1. Unit type system at 66/33/11 kV radial system 2. Open Ring type system at 11 kV Mesh Network. 3. Partial Ring type system at L T Secondary Distribution level. 4. Distribution system with overhead cum underground cable network.

1.5.9 CONSUMER PROFILE

Load

Domestic

Commercial

Industrial

Key

Consumer

Cell

Total

Company BYPL BRPL BYPL BRPL BYPL BRPL BYPL

BRPL

BYPL

0-10 kw 751925 937092 228826 170057 35120 18171 1295

2555

1017166 1127875

11-44 kw 10729

44-100 kw

87

>100 kw 0 Total

BRPL

40905

8358

14041

6593

6807

1377

3254

27057

65007

96

195

230

407

587

2200

3721

2889

4634

0

0

0

0

0

348

1247

348

1247

10777

1047460 1198763

762741 978093 237379 184328 42120 25565 5220

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FIGURE 2

Consumer Profile

1800000

D O M E S T IC

1600000 1400000

C O M M E R C IA L

1200000 1000000 IN D U S T R IA L

800000 600000 400000

KEY CONSUMER CELL

200000 0 consum er

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CHAPTER 2 – PROJECT STRUCTURE 2.1 REVIEW OF LITERATURE Jayant Sinha (Associate Vice President, Spanco Ltd.) states IT has the potential to contribute significantly in the power reforms process, particularly in the areas of business process automation, revenue and commercial management, distribution system automation, CRM (Consumer Relationship Management), Smart Grid and AT&C (Aggregate Technical & Commercial) loss reduction. The power distribution utilities in India have initiating major reforms using IT as the key enabler for improving revenue collection, minimizing AT&C losses, proper energy accounting and efficient consumer services. This report reviews research literature pertaining to trust in automated systems. Based on the review, we argue that trust in automation has many similarities with trust in the interpersonal domain, but also several unique dynamics and influences. Existing research has focused primarily on trust in automation that has an executive or control function, and to a lesser extent, has considered trust in automation that is designed to present information to operators (e.g. decision aids). We maintain that although there are many similarities between trust in automation and interpersonal trust, the dynamics of trust in automation also have some distinct qualities. Several models related to trust in automation have already been developed; in this report, a comprehensive -- although still preliminary -- model of trust in military automation is proposed. Several sets of factors are likely to impact on the development of trust in automation, including properties of the automation, properties of the operator, and properties of the context in which interaction with automation occurs. The consequences of trust in automation have yet to be fully explored. Based on this review, measures and methods to study trust in automation are considered, and a program of research to study trust in automated systems is described. Creation of a Smart Grid provides utilities and their customers a significant improvement in power reliability and services. To date, Smart Grid has attracted various researchers from different perspectives. This paper presents a review of Smart Grid technologies and its characteristics. An extensive literature review is introduced. One can see variety of problems and

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challenges in the field of Smart Grid. Hence, this paper can provide a help to find a new research point in this field.

2.2 RESEARCH METHODOLOGY The research work carried out for this project was more of descriptive in nature. Since this project is a study project, hence in this project the major task was collection of data, and analysing this data and also studying impact of Automation and Smart Grid in Distribution Sector. •

Study and analysis of reports of BSES(Delhi).

•

Search for Data and reports available.

•

Proper sorting and alignment of appropriate data and reports.

•

Collecting all the reports.

•

Prepare a framework for Automation.

•

Automate the reports.

•

Study about the Smart grid implementation in Power Sector.

•

Analyse the Smart Grid framework.

•

Suggestions about the improved working of the Reports and Smart grid.

.

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CHAPTER 3 PERFORMANCE REPORTS ACROSS BSES POWER DISTRIBUTION BUSINESS 3.1 REPORTS PREPARED IN BSES (BRPL & BYPL) A Report is any informational work (usually of writing, speech, television, or film) made with the specific intention of relaying information or recounting certain events in a widely presentable form. Written reports are documents which present focused, salient content to a specific audience. Reports are often used to display the result of an experiment, investigation, or inquiry. The audience may be public or private, an individual or the public in general. Reports are used in government, business, education, science, and other fields. Previously, the format of the reports prepared in BSES was different than what it is present. The format of reports contain the following fields :-1 . FINANCIAL PERFORMANCE 2. AT & C LOSSES 3. BILLING 4. COLLECTIONS 5. METER READING AND BILL DISTRIBUTION 6. CUSTOMER CARE 7. NEW CONNECTIONS 8. OPERATIONS & MAINTENANCE These are the main reports that were included in the old format. These reports have many parameters. Some of the main parameters include :-1. Short Load Consumer Category 2. Medium Load Consumer Category Page | 24

3. Key Consumer Category 4. Sales 5. Purchase 6. Operating Costs 7. Bill Amendments Module 8. Collection Efficiency 9. Provisional Bills 10. Average Bills 11. Metering 12. Billing 13. Capex Thus, here we come to know about the fact that all reports are prepared with the help of these parameters. Now-a-days, the main reports that are prepared in BSES Power Distribution Business are :-1 . CASH FLOW REPORT 2. AGGREGATE TECHNICAL & COMMERCIAL LOSS REPORT 3. COLLECTION REPORT 4. TECHNICAL REPORT 5. POWER PURCHASE REPORT 7. BULK SUPPLY TARIFF REPORT

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CASH FLOW REPORTS Cash Flow Reports contain all the details about the receipts from operations, financing and investments along with the payments for operations, financing and Capex. Cash Flow Reports are prepared on Monthly Basis. The main parameters of cash flow reports are :-1 . Collection from Operations 2. Collection from Financing 3. Collection from Investments

AGGREGATE TECHNICAL & COMMERCIAL LOSS REPORT AT&C Loss Report contains the following parameters: -1. Energy Input 2. Energy Billed 3. Amount Billed 4. Amount Collected 5. Derivatives 6. AT&C Loss Comparison On the basis of these parameters, 12 months rolling loss is calculated in %.

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COLLECTION REPORTS Collection Reports contain the following parameters:-1. Daily Revenue Collection Summary 2. Target Versus Actual Comparison 3. Last 5 year Comparison 4. YOY Comparison 5. Segment wise Comparison Collection Reports are prepared daily. Collection Reports are calculated in terms of month till date and year till date.

TECHNICAL REPORTS Technical Reports contain the following parameters :-1. Maximum Demand 2. Energy Consumption 3. Total units lost due to Outages 4. Total no current Complaints received 5. Total number of breakdown 6. Total number of cable faults 7. Street light complaints received 8. Total number of shutdowns Page | 27

POWER PURCHASE REPORT Power Purchase Reports contain the following parameters:-1. Source-Wise power purchase 2. Trader-Wise power purchase 3. Energy MUs 4. Cost 5. Rate at Source 6. Percentage Share The transactions involved in these reports are :1. Bilateral 2. Exchange 3. Banking 4. UI (Unscheduled interchange)

BULK SUPPLY TARIFF REPORT The Bulk Supply Tariff Reports contain the following parameters:-1. Long term power purchase 2. Bilateral short term power purchase 3. Short term power purchase through power exchange 4. Banking arrangement Page | 28

5. Intra state power purchase

6. UI Purchase 7. UI sale 8. Open access charges

3.2 SCORECARDS PREPARED IN BSES POWER DISTRIBUTION BUSINESS There are two types of scorecards prepared in BSES :1. Commercial Scorecards 2. Operations & maintenance Scorecards The scorecard is a strategy performance management tool and a semi-standard structured reports supported by design methods and automation tools. The scorecards are used by the managers to keep track of the execution of activities by the staffs within their control and to monitor the consequences arising from these actions . 1 . COMMERCIAL SCORECARDS Commercial scorecard deal with the performance cards like:-1. Total Score 2. AMPS(Assistant manager power supply) score 3. CO (Commercial Officer) Score 4. CCO( Customer Care Officer) Score Also it includes the Ranks i.e. Page | 29

1. Division Rank 2. AMPS Rank 3. CO Rank 4. CCO Rank 2. OPERATIONS & MAINTENANCE SCORECARDS O&M Scorecards deal with the performance card, ranking operational excellence , customer service and energy audit. The main parameters used are:-1. T&D 2. Distributive Transformer Defective 3. R&M Expenses 4. % reduction in HT BDs 5. % reduction in LT BDs 6. Safety/Accident 7. Wrong closures 8. % HT Cable fault restoration in Freeze Panes from the menu.  A vertical black line will appear between columns C and D and a horizontal line between rows 3 and 4.  Rows 1 to 3 and columns A to C are the frozen areas of the screen.

CHECK THE RESULTS Use the scroll arrows to see the effect of freezing panes on a spreadsheet. Scroll Down

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Use the vertical scroll arrow in Excel to scroll down. Rows 1 to 3 should stay on screen, including the months of the year while the numbers 1 to 9 disappear off the spreadsheet page. Return to cell D4 Click on the Name Box above column A Type D4 in the Name Box and press the ENTER key on the keyboard. The active cell becomes D4 once again. Scroll Across Use the horizontal scroll arrow to scroll to the right. Column A should stay on the screen, including the numbers, while the months of the year disappear off the spreadsheet page.

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CHAPTER 4 FEASIBILITY STUDY OF SMART GRID 4.1 DEFINITION, BASICS & FEATURES :-A Smart Grid can be defined as an interconnected system of information, communication technologies and control systems used to interact with automation and business processes across the entire power sector encompassing electricity generation, transmission, distribution and the consumer. The idea of a Smart Grid is to make the existing grid infrastructure as efficient and robust as possible, through the use of intelligence and automation, by encouraging active supply and demand-side participation and by promoting innovative business practices and regulatory environments that provide incentives for efficient production, transmission, distribution and consumption of electricity across the entire value chain. The urgency for Smart Grids in India emerges from the key challenges that the industry is currently facing. India operates the 3rd largest transmission and distribution network in the world, yet faces a number of challenges such as: inadequate access to electricity, supply shortfalls (peak and energy), huge network losses, poor quality and reliability and rampant, theft. The evolution towards Smart Grid would address these issues and transform the existing grid into a more efficient, reliable, safe and less constrained grid that would help provide access to electricity to all.

The function of an Electrical grid is not a single entity but an aggregate of multiple networks and multiple power generation companies with multiple operators employing varying levels of communication and coordination, most of which is manually controlled. Smart grids increase the connectivity, automation and coordination between these suppliers, consumers and networks that perform either long distance transmission or local distribution tasks.

•

Transmission networks move electricity in bulk over medium to long distances, are actively managed, and generally operate from 345kV to 800kV over AC and DC lines.

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•

Local networks traditionally moved power in one direction, "distributing" the bulk power to consumers and businesses via lines operating at 132kV and lower.

This paradigm is changing as businesses and homes begin generating more wind and solar electricity, enabling them to sell surplus energy back to their utilities. Modernization is necessary for energy consumption efficiency, real time management of power flows and to provide the

bi-directional metering needed to compensate local producers of power.

Although transmission networks are already controlled in real time, many in the US and European countries are antiquated by world standards, and unable to handle modern challenges such as those posed by the intermittentnature of alternative electricity generation, or continentalscale bulk energy transmission. HISTORY

Today's alternatingcurrent powergrid evolved after 1896, based in part on NikolaTesla's design published in 1888. Many implementation decisions that are still in use today were made for the first time using the limited emerging technology available 120 years ago. Specific obsolete power grid assumptions and features (like centralized unidirectional electricpower transmission, electricity distribution, and demand-driven control) represent a vision of what was thought possible in the 19th century. Over the past 50 years, electricity networks have not kept pace with modern challenges, such as: • security threats, from either energy suppliers or cyber attack •

national goals to employ alternative power generation sources whose intermittent supply makes maintaining stable power significantly more complex

•

conservation goals that seek to lessen peak demand surges during the day so that less energy is wasted in order to ensure adequate reserves

•

high demand for an electricity supply that is uninterruptible

The term smart grid has been in use since at least 2005, when the article "Toward A Smart Grid", authored by S. Massoud Amin and Bruce F. Wollenberg appeared in the

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September/October issue of IEEE P&E Magazine .The term had been used previously and may date as far back as 1998. Smart grid technologies have emerged from earlier attempts at using electronic control, metering, and monitoring. In the 1980s, Automaticmeterreading was used for monitoring loads from large customers, and evolved into the AdvancedMeteringInfrastructure of the 1990s, whose meters could store how electricity was used at different times of the day. Smartmeters add continuous communications so that monitoring can be done in real time, and can be used as a gateway to demandresponse-aware devices and "smart sockets" in the home. The major driving forces to modernize current power grids can be divided in four, general categories. •

Increasing reliability, efficiency and safety of the power grid.

•

Enabling decentralizedpowergeneration so homes can be both an energy client and

supplier (provide consumers with an interactive tool to manage energy usage, as netmetering). •

Flexibility of power consumption at the clients side to allow supplier selection (enables distributed generation, solar, wind, biomass).

•

Increase GDP by creating more new, green-collar energy jobs related to renewable energy industry manufacturing, plug-inelectricvehicles, solar panel and wind turbine generation, energy conservation construction.

The emerging vision of the smart grid encompasses a broad set of applications, including software, hardware, and technologies that enable utilities to integrate, interface with, and intelligently control innovations.

4.2 SMART GRID IMPLEMENTATION IN GENERATION , TRANSMISSION & DISTRIBUTION SECTOR

POWER GENERATION – Power Generation has gained the most due to the entry of private players. The magnitude of capacity being added each year has increased manifold when compared to previous planning Page | 47

periods. Also, with the use of new and more advanced technologies, efficiency of thermal power plants has been improving and emission levels falling. Operational requirements related to scheduling and dispatch are driving the implementation of automation across the power system and for the Generators. All new plants now have sophisticated operational IT systems and the existing generation fleet is slowly upgrading to match. Renewable Energy (RE) based electricity generation has gained prominence over the years. Several fiscal and policy measures have been introduced to promote RE. On an average, over 3000MW of RE installed capacity has been added every year with major contribution from the wind energy segment. Solar energy is gaining momentum through the Jawaharlal Nehru National Solar Mission (JNNSM) and state policies. Given the economics of coal and gas, fuel security issues and environmental concerns that are being faced, generation from renewable energy is increasingly assuming a central role in power-system design. Smart RE Control Centres which can forecast and monitor RE availability and potentially use energy storage to manage dispatch the of power to match grid conditions or manage demand through Demand Response (DR) programs to match capacity availability are expected to become critical to the future integration of RE in order to comply with the requirements laid down by the Indian Electricity Grid Code.

POWER TRANSMISSION – The transmission sector in India is moving towards higher voltage levels of 1200kV and is introducing a higher level of automation and grid intelligence. Power Grid Corporation of India Ltd (PGCIL) has already installed Phasor Measurement Units (PMUs) for Wide Area Monitoring Systems (WAMS) on a pilot basis in select regions and is now pursuing a plan to install PMUs nationwide. Significant technological advancements such as increasing the capacity of transmission corridors through the use of Static VAR compensation and re-conductoring of lines using High Temperature Low Sag (HTLS) wires are also being taken up. Managing these systems will require real-time monitoring and control only possible with a robust state-of-the-art communication system. Power system operation is also under evaluation as a result of the disturbance in July 2012 and it is expected that policy reform will lead to more system control being given to the load dispatch centres and the phase out of the current.Unscheduled Interchange (UI) mechanism designed to discourage DisComs and GenCos from deviating from Page | 48

published schedules. The UI mechanism is expected to be replaced by an ancillary services market, which would be managed by the power exchanges, thus further liberalizing power markets and providing greater transparency on costs and prices of services. Whilst in the beginning generators are expected to provide these services, discussions are taking place to pave the way for Demand Response programmes and Energy Storage facilities also to participate in the ancillary services market.

POWER DISTRIBUTION – The electricity distribution sector in India is currently in the worst shape, plagued by high network and financial losses in almost all states. There is an urgent need to bring in new technologies and systems to arrest these leaks. The Restructured A c c e l e r a t e d P owe r De v e l o pme n t P r o g r am ( R - A PDR P ) ( s e e : http://www.apdrp.gov.in/) introduced by the GoI was aimed at reducing the network losses to 15%. Part-A of the program is aimed at creating IT Infrastructure and automation systems within utility operations, which until its introduction was largely missing in most of the distribution utilities in the country. And part B is aimed at strengthening the physical network. The R-APDRP is still under implementation and completion is expected during the 12th Five Year Plan. Once completely implemented, the program would provide a strong foundation for evolution to Smart Grids in the power distribution segment. For the distribution sector, Smart Grids will mean the introduction of Demand Response programs, managing the expected introduction of electric vehicles and integrating distributed energy resources in a way that can help the DisComs balance local supply and demand and reduce peak time consumption. For this to happen, Advanced Metering Infrastructure (AMI) will be required as well as reliable communication infrastructure. Building to Grid (B2G) or development of “Green Buildings” which can be incentivized to manage their consumption and even distributed energy resources to match grids conditions will also play their part in helping DisComs to manage supply and demand.

4.3 CHARACTERISTICS & BENEFITS OF SMART GRID Page | 49

Smart Grid benefits can be categorized into 5 types: • Power reliability and power quality. The Smart Grid provides a reliable power supply with fewer and briefer outages, “cleaner” power, and self-healing power systems, through the use of digital information, automated control, condition-based maintenance and autonomous systems. • Safety and cyber security benefits. The Smart Grid continuously monitors itself to detect unsafe or insecure situations that could detract from its high reliability and safe operation. Higher cyber security is built in to all systems and operations including physical plant monitoring, and privacy protection of all users and customers. • Energy efficiency benefits. The Smart Grid is more efficient, providing reduced total energy use, reduced peak demand, reduced energy losses, and the ability to induce end-user use reduction instead of new generation in power system operations. • Environmental and

conservation benefits.

The Smart Grid is “green”. It helps

reduce greenhouse gases (GHG) and other pollutants by reducing generation from inefficient gasoline- powered vehicles with plug-in electric vehicles. • Direct financial benefits. The Smart Grid offers direct economic benefits. Operations costs are reduced or avoided. Customers have pricing choices and access to energy information. Entrepreneurs accelerate technology introduction into the generation, distribution, storage, and coordination of energy. Stakeholder Benefits The benefits from the Smart Grid can be categorized by the three primary stakeholder groups: • Consumers. Consumers can balance their energy consumption with the real time supply of energy. Variable pricing will provide consumer incentives to install their own infrastructure that supports the Smart Grid. This infrastructure is necessary to not only take advantage of lower- priced energy in off-peak hours, but also to minimize consumption of higher-priced energy in peak conditions. Smart grid information infrastructure will support additional services not available today. • Utilities. Utilities can provide more reliable energy, particularly during challenging emergency conditions, while managing their costs more effectively through efficiency and information. Page | 50

• Manufacturers. Manufacturers must produce and service the myriad components that actually comprise the Smart Grid. The burst of innovation in products will propel producers to new business developments and existing business enhancements. • Society. Society benefits from more reliable power for governmental services, businesses, and consumers sensitive to power outage. Renewable energy, increased efficiencies, and PHEV support will reduce environmental costs, including carbon footprints.

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FIGURE 8 –Smart Grid Benefits Page | 52

A benefit to any one of these stakeholders can in turn benefit the others. Those benefits that reduce costs for

utilities

lower

prices,

or

prevent

price

increases,

to

customers. Lower costs and decreased infrastructure requirements ameliorate social justice concerns around energy to society. Reduced costs increase economic activity which benefits society. Societal benefits of the Smart Grid can be indirect and hard to quantify, but cannot be overlooked.

Other stakeholders also benefit from the Smart Grid. Regulators can benefit from the transparency and audit-ability of Smart Grid information. Vendors and integrators benefit from business and product opportunities around Smart Grid components and systems.

Modern Grid Initiative Smart Grid Characteristics The MGI developed a list of seven behaviors that define the Smart Grid. Those working in each area of the Smart Grid can evaluate their work by reference to these behaviors. These behaviors match those defined by similar initiatives and workgroups.

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The characteristics (or the behaviors) of the Smart Grid as defined by MGI are:

•Enable Active Participation by Consumers. The Smart Grid motivates and includes customers, who are an integral part of the electric power system. The smart grid consumer is informed, modifying the way they use and purchase electricity. They have choices, incentives, and disincentives to modify their purchasing patterns and behavior. These choices help drive new technologies and markets. • Accommodate All Generation and Storage Options. The Smart Grid accommodates all generation and storage options. It supports large, centralized power plants as well as Distributed Energy Resources (DER). DER may include system aggregators with an array of generation systems or a farmer with a windmill and some solar panels. The Smart Grid supports all generation options. The same is true of storage, and as storage technologies mature, they will be an integral part of the overall Smart Grid solution set. • Enable New Products, Services, and Markets. The Smart Grid enables a market system that provides cost-benefit tradeoffs to consumers by creating opportunities to bid for competing services. As much as possible, regulators, aggregators and operators, and consumers can modify the rules of business to create opportunity against market conditions. A flexible, rugged market infrastructure exists to ensure continuous electric service and reliability, while also providing profit or cost reduction opportunities for market participants. Innovative products and services provide 3rd party vendors opportunities to create market penetration opportunities and consumers with choices and clever tools for managing their electricity costs and usage. • Provide Power Quality for the Digital Economy. The Smart Grid provides reliable power that is relatively interruption-free. The power is “clean” and disturbances are minimal. Our global competitiveness demands relatively fault-free operation of the digital devices that power the productivity of our 21st century economy. • Optimize Asset Utilization and Operate Efficiently. The Smart Grid optimizes assets and operates efficiently. It applies current technologies to ensure the best use of assets. Assets operate and integrate well with other assets to maximize operational efficiency and reduce costs. Page | 54

Routine maintenance and self-health regulating abilities allow assets to operate longer with less human interaction. • Anticipate

and

Respond

to System

Disturbances (Self-heal). The Smart Grid

independently identifies and reacts to system disturbances and performs mitigation efforts to correct them. It incorporates an engineering design that enables problems to be isolated, analyzed, and restored with little or no human interaction. It performs continuous predictive analysis to detect existing and future problems and initiate corrective actions. It will react quickly to electricity losses and optimize restoration exercises. Operate Resiliently to Attack and Natural Disaster. The Smart Grid resists attacks on both the physical infrastructure (substations, poles, transformers, etc.) and the cyber-structure (markets, systems, software, communications). Sensors, cameras, automated switches, and intelligence are built into the infrastructure to observe, react, and alert when threats are recognized within the system. The system is resilient and incorporates self-healing technologies to resist and react to natural disasters. Constant monitoring and self-testing are conducted against the system to mitigate malware and hackers.

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4.4 SMART GRID TECHNOLOGIES The bulk of smart grid technologies are already used in other applications such as manufacturing and telecommunications and are being adapted for use in grid operations. In general, smart grid technology can be grouped into five key areas:

1. Integrated communications Some communications are up to date, but are not uniform because they have been developed in an incremental fashion and not fully integrated. In most cases, data is being collected via modem rather than direct network connection. Areas for improvement include: substation automation, demand response, distribution automation, supervisory control and data acquisition (SCADA), Geographic Information System(GIS),energy management systems, wireless mesh networks and other technologies, power-line carrier communications, and fiber-optics. Integrated communications will allow for real-time control, information and data exchange to optimize system reliability, asset utilization, and security. 2. Sensing and measurement Core duties are evaluating congestion and grid stability, monitoring equipment health, energy theft prevention, and control strategies support. Technologies include: advanced microprocessor meters (smart meter) and meter reading equipment, wide-area monitoring systems, dynamic line rating (typically based on online readings by Distributedtemperaturesensing combined with Realtimethermalrating (RTTR) systems), electromagnetic signature measurement/analysis, timeof-use and real-time pricing tools, advanced switches and cables, backscatter radio technology, and Digitalprotectiverelays. SmartMeters A smart grid replaces analog mechanical meters with digital meters that record usage in real time. Smart meters are similar to Advanced Metering Infrastructure meters and provide a communication path extending from generation plants to electrical outlets (smartsocket) and other smart grid-enabled devices. By customer option, such devices can shut down during times of peak demand.

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PMU – High speed sensors called PMUs distributed throughout their network can be used to monitor power quality and in some cases respond automatically to them. Phasors are representations of the waveforms of alternating current, which ideally in real-time, are identical everywhere on the network and conform to the most desirable shape. In the 1980s, it was realized that the clock pulses from global positioningsystem(GPS) satellites could be used for very precise time measurements in the grid. With large numbers of PMUs and the ability to compare shapes from alternating current readings everywhere on the grid, research suggests that automated systems will be able to revolutionize the management of power systems by responding to system conditions in a rapid, dynamic fashion. A Wide-Area Measurement Systems (WAMS) is a network of PMUS that can provide real-time monitoring on a regional and national scale. Many in the power systems engineering community believe that the Northeastblackoutof2003 would have been contained to a much smaller area if a wide area phasor measurement network was in place. 3. Advanced components Innovations in superconductivity, fault tolerance, storage, power electronics, and diagnostics components are changing fundamental abilities and characteristics of grids. Technologies within these broad R&D categories include: flexible alternating current transmission system devices, high voltage direct current, first and second generation superconducting wire, high temperature superconducting cable, distributed energy generation and storage devices, composite conductors, and “intelligent” appliances. 4. Advanced control Power system automation enables rapid diagnosis of and precise solutions to specific grid disruptions or outages. These technologies rely on and contribute to each of the other four key areas. Three technology categories for advanced control methods are: distributed intelligent agents (control systems), analytical tools (software algorithms and high-speed computers), and operational applications (SCADA, substation automation, demand response, etc). Using artificialintelligence programming techniques, Fujian power grid in China created a wide area protection system that is rapidly able to accurately calculate a control strategy and execute it.

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The Voltage Stability Monitoring & Control (VSMC) software uses a sensitivity- based successivelinearprogramming method to reliably determine the optimal control solution. 5. Improved interfaces and decision support Information systems that reduce complexity so that operators and managers have tools to effectively and efficiently operate a grid with an increasing number of variables. Technologies include visualization techniques that reduce large quantities of data into easily understood visual formats, software systems that provide multiple options when systems operator actions are required, and simulators for operational training and “what-if”analysis. The deployment of these technology solutions is expected to create improvements in the six key value areas — 1.Reliability, 2.Economics, 3.Efficiency, 4.Environmental, 5.Safety, and 6.Security

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FIGURE 9 – Technologies of Smart Grid

4.5 MAJOR CHALLENGES FACED WHILE DESIGNING SMART GRID Page | 60

The Smart Grid poses many procedural and technical challenges as we migrate from the current grid with its one-way power flows from central generation to dispersed loads, toward a new grid with two-way power flows, two-way and peer to peer customer interactions, and distributed generation. These challenges cannot be taken lightly – the Smart Grid will entail a fundamentally different paradigm for energy generation, delivery, and use.

Procedural Challenges The procedural challenges to the migration to a smart grid are enormous, and all need to be met as the Smart Grid evolves: • Broad Set of Stakeholders: The Smart Grid will affect every person and every business in the United States. Although not every person will participate directly in the development of the Smart Grid, the need to understand and address the requirements of all these stakeholders will require significant efforts. • Complexity of the Smart Grid: The Smart Grid is a vastly complex machine, with some parts racing at the speed of light. Some aspects of the Smart Grid will be sensitive to human response and interaction, while others need instantaneous, automated responses. The smart grid will be driven by forces ranging from financial pressures to environmental requirements. • Transition to Smart Grid: The transition to the Smart Grid will be lengthy. It is impossible (and unwise) to advocate that all the existing equipment and systems to be ripped out and replaced at once. The smart grid supports gradual transition and long coexistence of diverse technologies, not only as we transition from the legacy systems and equipment of today, but as we move to those of tomorrow. We must design to avoid unnecessary expenses and unwarranted decreases in reliability, safety, or cyber security. • Ensuring Cyber Security of Systems. Every aspect of the Smart Grid must be secure. Cyber security technologies are not enough to achieve secure operations without policies, ongoing risk assessment, and training. The development of these human-focused procedures takes time—and needs to take time—to ensure that they are done correctly. • Consensus on Standards. Standards are built on the consensus of many stakeholders over time; mandating technologies can appear to be an adequate short cut. Consensus-based standards deliver better results over. Page | 61

• Development and Support of Standards. The open process of developing a standard benefits from the expertise and insights of a broad constituency. The work is challenging and time consuming but yields results more reflective of a broad group of stakeholders, rather than the narrow interests of a particular stakeholder group. Ongoing engagement by user groups and other. organizations enables standards to meet broader evolving needs beyond those of industry stakeholders. Both activities are essential to the development of strong standards. • Research and Development. The smart grid is an evolving goal; we cannot know all that the Smart Grid is or can do. The smart grid will demand continuing R&D to assess the evolving benefits and costs, and to anticipate the evolving requirements. • Regulatory and Policy. To maintain a consistent regulatory and energy policy framework over a transition period that will be lengthy. Further, to achieve a National modernization of the distribution grid since the regulation of the grid is delegated to local and statewide authorities.

Technical Challenges to Achieving the Smart Grid Technical challenges include the following: • Smart equipment. Smart equipment refers to all field equipment which is computer-based or microprocessor-based, including controllers, remote terminal units (RTUs), intelligent electronic devices (IEDs). It includes the actual power equipment, such as switches, capacitor banks, or breakers. It also refers to the equipment inside homes, buildings and industrial facilities. Smart Equipment also includes previously electromechanical switches, reclosers, voltage controllers, and other actuated hardware that have been retrofitted with sensors and controls used to monitor state, transmit that state to an external analysis point, and execute control commands returned from that point. Some of these packages are outfitted with local intelligence, used to carry out analysis and instructions when remote analysis is unnecessary or not economical. This embedded computing equipment must be robust to handle future applications for many years without being replaced. • Communication systems.

Communication systems refer to the media and to the

developing communication protocols. These technologies are in various stages of maturity. The smart grid must be robust enough to accommodate new media as they emerge from the communications industries and while preserving interoperable, secured systems. Page | 62

• Data management. Data management refers to all aspects of collecting, analyzing, storing, and providing data to users and applications, including the issues of data identification, validation, accuracy, updating, time-tagging, consistency across databases, etc. Data management methods which work well for small amounts of data often fail or become too burdensome for large amounts of data – and distribution automation and customer information generate lots of data. In many cases entirely new data models and techniques (such as datawarehousing and data-mining) are being applied in order to handle the immense amount of synchronization and reconciliation required between legacy and emerging databases. Data management is among the most time- consuming and difficult task in many of the functions and must be addressed in a way that will scale to immense size. Cyber Security. Cyber security addresses the prevention of damage to, unauthorized use of, exploitation of, and, if needed, the restoration of electronic information and communications systems and services (and the information contained therein) to ensure confidentiality, integrity, and availability. • Information and

Data

privacy. The protection and stewardship of privacy is a

significant concern in a widely interconnected system of systems that is represented by the Smart Grid. Data integrity and non-repudiation is needed for succinct, reliable communication across the grid. Additionally, care must be taken to ensure that access to information is not an all or nothing at all choice since various stakeholders will have differing rights to information from the Smart Grid. • Software applications. Software applications refer to programs, algorithms, calculations, and data analysis. Applications range from low level control algorithms to massive transaction processing. Application requirements are becoming more sophisticated to solve increasingly complex problems, are demanding ever more accurate and timely data, and must deliver results more quickly and accurately. One of the most prominent software development evolutions is shifting from a peer-to-peer integration environment to a services oriented architecture (SOA) built upon on a robust analysis, simulation, and data management infrastructure. Software engineering at this scale and rigor is still emerging as a discipline. Software applications are at the core of every function and node of the Smart Grid.

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4.6 BARRIERS TO SMART GRID IMPLEMENTATION The barriers t h a t are holding back the implementation of smart grids include mainly the issue of regulatory framework that is out of sync with today’s industry needs and society’s broader environmental objectives. In the following section, the current challenges that are holding back investments in smart grids will be examined.There are a number of factors that, in combination, are acting as a brake on smart grid investment, most of which are institutional and relate to the regulatory and policy frameworks that have evolved to support the existing power delivery system. Seven areas have been identified that will need to be addressed before smart grids become more widely adopted: 1.Policy and regulation – In many cases, utilities do not get as far as a business case for the smart grid as there are regulatory and policy barriers in place that either create reverse incentives or fail to create sufficient positive incentives for private sector investment. 2. Business case – Where policy-makers and utility executives are aware of the role that smart grids can play, they are often unable to make the business case for smart grid investments. Within the business case, two factors operate: first, the capital and operating costs are too high, as suppliers have not been able to achieve scale economies in production and delivery risk is priced in; and second, only those benefits that are economically tangible are factored in, while other ancillary and non-financial benefits are not included (e.g. the carbon benefits) or are aligned to the appropriate value-chain players. 3. Technology maturity and delivery risk – A smart grid brings together a number of technologies (communications, power electronics, software, etc.) at different stages of the technology

maturity lifecycle.

In

some

cases, these

technologies

have

significant

technology risks associated with them because agreed standards have not emerged. In addition, there are only a handful of examples of large scale implementation of more than 50,000 premises and therefore there continues to be significant delivery risk priced in to the estimates. 4. Lack of awareness – Consumers and policy-makers are becoming increasingly aware of the challenges posed by climate change and the role of greenhouse gas emissions in creating the problem. In some cases, they are aware of the role of renewable generation and energy Page | 64

efficiency in combating climate change. It is much less common that they are also aware of the way that power is delivered to the home and the role of smart grids in enabling a low-carbon future. 5. Access to affordable capital – Utility companies are generally adept at tapping the capital markets; however, where delivery risks are high and economic frameworks are variable, the relative cost of capital may be higher than normal, which acts as a deterrent to investment. Stable frameworks and optimum allocation of risk between the customer, the utility and government will be the key to accessing the cheapest capital possible. In the case of municipalities and cooperatives, this challenge may become amplified as the ability to manage delivery risk is reduced. 6. Skills and knowledge – In the longer term, a shortfall is expected in critical skills that will be required to architect and build smart grids. As experienced power system engineers approach retirement, companies will need to transition the pool of engineering skills to include power electronics, communications and data management and mining. System operators will need to manage networks at different levels of transition and learn to operate using advanced visualization and decision support. 7. Cyber-security and data privacy – Digital communication networks and more granular and frequent information on consumption patterns raise concerns in some quarters of cyberinsecurity and potential for misuse of private data. These issues are not unique to smart grids but are cause for concern on what is a critical network infrastructure. Of the seven barriers outlined above, the first three pose the most significant hurdles, but, if addressed, will go a long way towards creating an environment that will encourage investment in smart grids. None of these barriers is insurmountable; however, it is important to understand the root cause of the issues before developing strategies to break them down. In the following sections, each area will be looked at in more detail with examples that highlight the challenge.

4.7 REGULATORY SUPPORT FOR SMART GRID PROJECTS IN INDIA The development of a dynamic regulatory environment is a pre-requisite to stimulate the market towards Smart Grids in India. Providing clear signals to different stakeholders such as utilities, Page | 65

investors and technology providers of the direction of the market and thus providing some certainty and confidence for the necessary investments. Through incentives and performance guarantees, consumers can be motivated to also take an active role and demonstrable cost benefits will convince regulators of the necessary investment requirements. Regulatory support for Smart Grids is required across 3 key dimensions: (i) Economic Regulation; (ii) Safety and Standards; and (iii) Awareness and Capacity Building Consumer awareness and capacity building at all levels will need to be pursued throughout to ensure buy-in and involvement.It is important to mention that many regulatory instruments will need to be interrelated,and hence coherence across these will be necessary. Within India several entities including ISGTF, BIS and CEA have already been working on a wide range of activities covering the different instruments required under the above framework. However, there is still a need for an institutional setup that ensures strong coordination among all. The following section lists out the key regulatory challenges being faced by the Industry related to Smart Grid deployment:-CHALLENGES AND SUGGESTED INTERVENTIONS:1.CHALLENGE – Several of the Smart Grid initiatives such as Demand Response and peak load management require adoption of dynamic/ time of use (TOU)/ time of day (TOD) tariffs, which are currently absent in many states. INTERVENTIONIntroduction of appropriate tariff structures. Initially, participation in programs could be voluntary. Such efforts should be coordinated through the Forum of Regulators. 2. CHALLENGE – Implementation of Smart Grid applications will require incurring capital expenditure. The regulatory guidelines in normal course would permit investments if the benefits outweigh the cost. However some benefits are intangible so in order to promote demonstration projects, liberal

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investment approval regulations are required to reflect the uncertainty associated with new technologies, new applications and the foreseen benefits. INTERVENTION – Development of a conducive investment approval framework to promote innovation. Introduction of performance and service related incentives such as power quality and peak power. Recognition of transverse and less tangible benefits such as reducing emissions. 3. CHALLENGE – Interoperability ensures compatibility between new systems, applications and communication technologies with old ones and among themselves. A lack of interoperability standards leads to deployment of technologies which are either not compatible with the existing system or may not have adequate interface facilities defeating the basic objective of Smart Grids to communicate between different components on real time basis. One of the problems that faced with implementation of R-APDRP was the in-ability to read proprietary data from meters and lack of standardization in metering. In R-APDRP, while the issue was addressed to some extent by the adoption of IEC 62056 / Indian Companion Standard to BIS, this was limited to distribution transformer (DT) level. INTERVENTION – Interoperability standards for various applications/equipment. Definition of an interoperability roadmap at national level that maps out and comprehensively addresses various use cases/applications and presents an action plan for large scale deployment. 5 . CHALLENGE – Various Smart Grid deployments will demand different levels of user access, access points and security. Uniformity in such standards is much needed to ensure the smooth interaction of multiple systems and protection of data as well as operational systems/resilience to attack. INTERVENTION – Regulations/standards for Cyber Security to ensure coordinated development across various Smart Grid applications. Current pilot projects could be used as test cases. 6 . CHALLENGE – Standards for integrating EVs as well as all distributed energy resources need to be defined to ensure the protection of the grid. Page | 67

INTERVENTION – Grid code needs to be defined in consultation with EV manufacturers, charging station operators/aggregators and grid operators. 7. CHALLENGE – Implementation of Smart Grids will facilitate consumer participation with multiple options regarding provision of electricity or curtailment of load related to price, energy efficiency, renewable content etc. In this context, issues related to the roles and responsibilities of different stakeholders in: creating awareness, rules for enrolling consumers in programs, data protection etc. need to be defined. INTERVENTION – Capacity Building is required for all stakeholders including policy makers, regulators, utilities, industry, research and academia and should cover: rate design, methods for approval of investments, technical standards, updates on new concepts and technology, roles and responsibilities of different stakeholders etc. Training of utility officials is required at all levels of management from senior management to field level officials and should cover: emerging technologies, operation of new systems, data management, data analysis etc. Education of consumers on the benefits of Smart Grids and how they can improve their electricity usage experience through availability of reliable and quality power and reduce electricity bills.

4.8 SMART GRID PILOT PROJECTS RUNNING IN INDIA There are 14 SMART GRID pilot projects running in India now-a-days. These include :-1 . AP CPDCL (ANDHRA PRADESH) – Location - Jeedimetla Industrial Area Project Summary – The Project proposes covering 11,904 consumers. The proposed project area is covered under RAPDRP Scheme; DAS, IT and SCADA shall be implemented . The functionalities of Peak load management, Power Quality and Outage Management are proposed by implementing Automated Metering Infrastructure (AMI) for Residential Consumers and Industrial Consumers. Benefits envisaged – 1. Reduced AT&C loss Page | 68

2. Reduced purchase of high cost power at peak hours.

2. APDCL ASSAM – Location – Guwahati distribution region Project summary – The pilot project covers 15,000 consumers involving 90MUs of input energy. APDCL is in the process IT Implementation under R-APDRP and SCADA/DMS implementation is also to be taken up shortly. APDCL has proposed the functionality of Peak Load Management using Industrial and Residential AMI, Integration of Distributed Generation (Solar and available back-up DG Set) and Outage Management system. The utility has envisaged that Power Quality Monitoring will be a by-product of the deployment. Benefits envisaged – 1. Increased available energy during peak time 2. Revenue increase through Power Quality measurements and power factor penalty 3. Reduction in AT&C Losses 4. Reduction in interest payments due to deferred Capital Investment in sub-transmission networks 5. Improvement of availability (reduction of Customer Minutes Lost) 6. Improved management of power procurement options 7. Unscheduled Interchange using Short Term Load Forecasts

3 . CSPDCL CHHATTISGARH – Location –Siltara – Urla area of Raipur District (Chhattisgarh State) Project Summary –The pilot project includes installing smart meters at 508 H.T. & L.T Industrial Consumer premises as well as Automatic Meter Reading (AMR) at 83 DTs. The area has around 2140.86 MU input energy consumption. The proposed project area is not covered under RAPDRP Scheme. The functionality of Peak load management is proposed by implementing Automated Metering Infrastructure (AMI) for Industrial Consumers. Page | 69

Benefits envisaged – 1. Reducing Distribution T&D losses 2. Reducing Peak load consumption through shifting of Peak Load demand to a non-peak time thereby saving UI charges 3. Reducing cost of billing

4 . UGVCL GUJARAT – Location –Naroda of Sabarmati circle which is an industrial and residential area and Deesa of Palanpur circle which is an agricultural area Project Summary –Project proposes covering 20,524 consumers in Naroda and 18,898 agricultural unmetered consumers in Deesa-II division and accounting for input energy of around 1700MU (Naroda : 374.52 MU &Deesa : 1321.27 MU for 2010-11). The functionalities of Peak load management, Outage Management, Power Quality Management are proposed by implementing Automated Metering Infrastructure (AMI) for Industrial, Commercial and Residential Consumers. Some additional functionalities like Load forecasting and Asset Management are also proposed and functionalities of load forecasting, peak power management and outage management are also considered at utility level which will impact all consumers of utility (i.e. 27 lac consumers) indirectly. Renewable energy integration has also been proposed to be carried out at Patan Solar Park and few roof top installations at some of the universities. Benefits Envisaged – 1. Reduction in AT&C losses 2. Savings in Peak Power Purchase cost by reduction of peak load 3. Reduction in Transformer failure rate 4. Reduction in number of outages 5. Reduction in Meter Reading cost, Cost of payment collection etc.

5 . UHBVN HARYANA – Location –Panipat City Subdivision (Haryana State)

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Project Summary –The pilot project covers 30,544 consumers and distribution system of 531 DTs. The area has around 131.8 MU input energy consumption. The proposed project area is covered under R-APDRP Scheme for IT implementation and system strengthening. The functionality of Peak load management is proposed by implementing Automated Metering Infrastructure (AMI) for Residential Consumers and Industrial Consumers. Benefits Envisaged 1. Reduced Distribution Losses 2. Reduced Peak Load Consumption 3. Reduced Cost of Billing

6 . HPSEB HIMACHAL PRADESH – Location – Industrial town of KalaAmb Project Summary – The pilot project covers 650 consumers and having annual input energy of 533 Mus. The functionality of peak load management and outage management is proposed by implementing Automated Metering Infrastructure (AMI) for Industrial Consumers, Distribution Automation and Substation Automation and power quality management by deploying Power Quality meters at HT consumers. Benefits Envisaged – 1. Shifting peak load 2. Reduction in penalties 3. Reduction in outages

7. KSEB KERALA – Location – Selected Distribution Section offices spread over the geographical area of Kerala State Project Summary - Pilot is proposed for around 25078 LT Industrial consumers of Selected Distribution Section offices spread over the geographical area of Kerala State. The input energy for the total scheme area is mentioned as 2108 MUs and for the LT Industrial consumers is mentioned as 376 MUs. Part of this area is covered in R APDRP scheme. By implementing Automated Metering Infrastructure (AMI) it is proposed to provide quality service. Page | 71

prevent tampering and unauthorized usage of load, accurate and timely metering and billing, avoiding costly field visits of Sub Engineers for meter reading, reducing supply restoration time, peak load management through load restriction for Remote Disconnection/Reconnection and Time of Day tariff. Benefits Envisaged – 1. Reduction in AT&C losses through reduction in loss due to manual error, tampers, thefts, short assessment etc., 2. Savings on employee and travel cost for meter reading 3. Introducing incremental tariff for peak hours through TOD Tariff

8. MSEDCL MAHARASHTRA – Location - Baramati Town Project Summary – Project proposes covering 25,629 consumers with a mix of residential, commercial and industrial consumers and input energy of 261.6 MU. The functionality of Outage management is proposed by implementing Automated Metering Infrastructure (AMI) for Residential Consumers and Industrial Consumers. In addition MSEDCL has proposed to leverage AMI for Remote connect/disconnect of customers, Monitoring the consumption pattern, Tamper detection, Contract load monitoring, Load

curtailment program i.e. reduced power

supply instead of no power scenario, Time of Use Metering and Dynamic and Real Time Pricing, Demand forecasting etc. Benefits Envisaged – 1. Reduction in AT&C losses 2. Reduction in requirement of field staff through proper management of unforeseen outages 3. Improvement in reliability parameters like SAIFI, SAIDI, CAIDI etc. 4. Reduction in Meter Reading cost, bringing efficiency in meter reading etc.

9. CESC MYSORE – Location – Additional City Area Division (ACAD), Mysore Project Summary – Project involves 21,824 consumers with a good mix of residential, commercial, industrial and agricultural consumers including 512 irrigation pump sets covering Page | 72

over 14 feeders and 473 distribution transformers and accounting for input energy of 151.89 MU. The functionalities of Peak load management, Outage Management are proposed by implementing Automated Metering Infrastructure (AMI) for Residential Consumers and Industrial Consumers and Integration to Distributed . Generation / Micro Grid Integration. Some additional functionality like Agriculture DSM with community Portal, Consumer Portal to Support DSM/DR, Employee portal for Knowledge Sharing and Benefit realization, KPI based MIS and Data Analytics for decision Support are also proposed. Benefits Envisaged – 1. Reduction in AT&C losses 2. Shifting of load in industrial and domestic consumer during peak hours 3. Reduction in number of transformer failure 4. Reduction in Meter Reading cost 5. Reduction in unforeseen outages and also recovery time for unforeseen outages.

10.ELECTRICITY DEPARTMENT, GOVERNMENT OF PUDUCHERRY, (PED) – Location – Division 1 of Puducherry Project Summary –Project proposes covering 87031 no. of consumers with dominant being domestic consumers (79%). The area has around 367 MU input energy consumption. The proposed project area is also covered under RAPDRP Scheme for IT implementation and system strengthening which is likely to be completed in 2013. The module of Automated Metering Infrastructure (AMI) for Residential Consumers and Industrial Consumers

are proposed to be

implemented to assist with consumer issues like event management & prioritizing, billing cycle review and revenue collection efficiency for Energy auditing and AT&C loss reduction. Benefits Envisaged – 1. Reduction in Distribution Losses 2. Reducing cost of billing 3. Increasing revenue collection efficiency

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11. PSPCL PUNJAB – Location –Industrial Division of City Circle Amritsar Project Summary –The functionality of Outage Management (OM) is proposed to be implemented in the project area for all the 85746 consumers and distribution system in area using AMI by installing 9000 Smart Meters and by Transformer Monitoring. The proposed project area is covered under RAPDRP Scheme for SCADA Implementation and GIS Mapping. Benefits Envisaged – 1. Reduction in feeder outage restoration time 2. Reduction in transformers outages and transformer outage restoration time

12. JVVNL RAJASTHAN – Location –VKIA Jaipur Project Summary –Project proposes covering 2646 no. of consumers, dominated by Industrial consumers (56.46%) and around 374.68 MU input energy consumption. Proposed project area is also covered under RAPDRP Scheme for IT implementation and system strengthening. The functionality of Peak load management is proposed by implementing Automated Metering Infrastructure (AMI) for Residential Consumers and Industrial Consumers. Benefits Envisaged – 1. Reduction in AT&C losses. 2. Reduction in Peak load consumption through shifting of Peak Load demand .

13 . TSECL TRIPURA – Location – Electrical Division No.1, of Agartala town Project Summary –The pilot project covers 46,071 no. of consumers. The proposed project area is covered under RAPDRP Scheme for IT implementation and system strengthening. The functionality of Peak load management is proposed by implementing Automated Metering Infrastructure (AMI) for Residential Consumers and Industrial Consumers. Benefits Envisaged – 1. Reduced Distribution Losses 2. Reduced Peak load consumption Page | 74

3. Reduced cost of billing

14 . WBSEDCL WEST BENGAL – Location –Siliguri Town in Darjeeling District Project Summary –The pilot project proposes to take up 4 nos. of 11 KV feeders for implementation of Smart Grid covering 4404 consumers. The area has 42 MU input energy consumption. The utiliy has proposed the functionality of AT&C loss reduction and Peak Load Management using Automated Metering Infrastructure (AMI) for Residential and Industrial Consumers. Benefits Envisaged – 1.Reduced Distribution Losses . 2.Reduction in AT&C Losses.

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FIGURE 10 – Technologies contributions to Smart Grid

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4.9 RECENT DEVELOPMENTS 1. Smart Grid Venture Capital funding totalled $50 million in Q2 2013 – Smart grid venture capital (VC) funding in the second quarter of 2013, totalled $50 million in ten deals, according to Mercom Capital Group, llc, a global clean energy communications and consulting firm. Except for one quarter, the third quarter of 2012, VC funding has been stuck in the $50-$70 million range with 9-12 deals for almost two years, said Mercom.

2. Holland's Power Matching City has entered its second phase with pilots –

Holland's Power Matching City has entered its second phase with pilots in two more Dutch cities, Groningen and Hoogkerk . Residents will be able to view their own energy consumption data on tablet computers. The pilot will also test consumer demand for renewable energy. As the name implies, the project automatically matches supply and demand, both within each household and between households. Power Matching City will test and balance a wide variety of equipment, including smart appliances, electric vehicles, energy storage, demand response, "hybrid' heat pumps, and combined heat and power. The project consortium includes several utilities and universities.

3. National Grid makes sustainability hub part of its smart grid pilot –

National Grid today unveiled plans for the future home of its Sustainability Hub, a 2,200 squarefoot facility centrally located within the company’s smart grid pilot area in Worcester, Mass. The space, located at 912 Main Street, has been donated by Clark University and will connect the community and customers under one roof to provide interactive education about energy efficiency and emerging technologies. It is an integral part of the company’s smart grid pilot – now known as the Smart Energy Solutions Program – for 15,000 customers who choose to participate .

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4.10 INDIAN SMART GRID FORUM Union Minister of Power Shri Sushil kumar Shinde launched the India Smart Grid Forum, the first initiative of its kind in the power sector, in New Delhi on 26th May , 2010. 'Smart' and 'Intelligent' are becoming the buzz words for Indian Power Sector because deployment and adoption of latest technologies will help it to leap forward into a new orbit. Smart Grid will bring ICT and Power Technologies in unison and establish a comprehensive power infrastructure.

Objective: 1. The proposed India Smart Grid Forum will be a non-profit voluntary consortium of public and private stakeholders with the prime objective of accelerating development of Smart Grid technologies in the Indian Power Sector. 2. The goal of the Forum would be to help the Indian power sector to deploy Smart Grid technologies in an efficient, cost-effective, innovative and scalable manner by bringing together all the key stakeholders and enabling technologies. 3. The India Smart Grid Forum will coordinate and cooperate with relevant global and Indian bodies to leverage global experience and standards where ever available or helpful, and will highlight any gaps in the same from an Indian perspective. 4. Governance of the Forum will be overseen by a Board of Governors / Directors. Initially there will be 7 members in Board of Governors, 5 of which will be elected and other two being representatives of Ministry of Power and Power Finance Corporation (PFC). 5. The Forum will operate in a hierarchical or layered structure with different working groups focusing on different aspects of Smart Grid. A Core Group will comprise of Founding Members and will be responsible for overall coordination of the working groups. Members of core committee and working groups will be decided by elections and few nominations from Government agencies. Nominations from Government agencies will be done by MoP / PFC. 6. Forum will be open for voluntary memberships from all appropriate interested entities. There will be different categories of membership with different rights and responsibilities based on

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the entity size and other status such as government, regulator, non-profit organisations, industry, utility etc. 7. Secretariat of the Forum will be initially at PFC, New Delhi. CSTEP will be the knowledge partner and Advisor for the Forum. The terms of engagement will be finalised by PFC and later reviewed by Smart Grid Forum. 8. Funding of the Forum will be from the annual membership fee from all members (except those specifically exempted) based on their categories. Initial funding of the Forum has been proposed through Ministry of Power, who will be the Patron of the Forum. 9. Initially the Forum will be open by invitation and a temporary President of forum will be appointed. Invitation will be sent to selected state power utilities, private power utilities, power sector PSUs, empanelled System Integrators, SCADA Consultants and Implementing Agencies of R-APDRP, selected educational and research institutes, NGOs, CEA, CERC, CPRI and FICCI After 1st meeting, forum will operate by election of core committee members and full fledged chairman. MoP, PFC and REC will be permanent invitees and members of the forum. Ministry of Power will be Patron of the Forum.

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CHAPTER 5 CONCLUSION & THE WAY FORWARD 5.1 CONCLUSION Distributed energy resources: The ability to connect distributed generation, storage, and renewable resources is becoming more standardized and cost effective. While the penetration level remains low, the area is experiencing high growth. Several other concepts associated with a smart grid are in a nascent phase of deployment these include the integration of microgrids, electric vehicles, and demand response initiatives, including gridsensitive appliances. Electricity infrastructure: Those smart grid areas that fit within the traditional electricity utility business

and

policy

model

have

a

history

of

automation

and

advanced

communication deployment to build upon. Advanced metering infrastructure is taking automated meter reading approaches to a new level, and is seen as a necessary step to enabling dynamic pricing and consumer participation mechanisms. Though penetration of these systems is still low, the growth and attention by businesses and policymakers is strong. Transmission substation automation remains strong with greater levels of information exchanged with control centers. Cost/benefit thresholds are now encouraging greater levels of automation at the distribution substation level. While

reliability indices

show some slight

degradation,

generation and electricity transport efficiencies are improving. Business and policy: The business cases, financial resources, paths to deployment, and models for enabling governmental policy are only now emerging with experimentation. This is true of the regulated and non-regulated aspects of the electric system. Understanding and articulating the environmental and consumer perspectives also remains in its infancy, though recent reports and deliberations indicate that significant attention is beginning to be given to these issues. High-tech culture change: A smart grid is socially transformational. As with the Internet or cell phone communications, our experience with electricity will change dramatically. To successfully integrate high levels of automation requires cultural change. The integration Page | 80

of automation systems within and between the electricity delivery infrastructure, distributed resources, and end- use systems needs to evolve from specialized interfaces to embrace solutions that recognize well- accepted principles, methodology, and tools that are commonly recognized by communications, information technology, and related disciplines that enable interactions within all economic sectors and individual businesses.

The solutions to improving physical and cyber security, information privacy, and interoperability (conveniently connect and work within a collaborative system) require disciplines and best practices that are subscribed to by all stakeholders. A cross disciplinary change that instills greater interaction among all the stakeholders is a necessary characteristic as we advance toward a smart grid. Progress in areas such as cyber security and interoperability is immature and difficult to measure, though improved approaches for future measurements are proposed.

5.2 RECOMMENDATIONS AND SUGGESTIONS 1) To Automate all the Reports of the company so that work can be done without error. 2) Promote the Smart Grids Vision to all stakeholders – it is vital that there is ‘buy-in’ to the Smart Grids Vision across all stakeholders for it to be successful. 3) Encourage innovation by network companies and stakeholders – only the network companies can actually deliver the Vision. They must be motivated for that. 4) Encourage a pan-European approach to the Smart Grids ‘project’ – a sustainable future for Europe will increasingly depend on open energy trading. Co-operation between Member States will be increasingly important. 5) Encourage early deployment of Smart Grids technologies and solutions through demonstration projects – ”de-risking” technologies requires demonstration on real networks. Demonstration projects are vital to achieve widespread adoption. 6) Further develop the Smart Grids Business Opportunities to build the case for deployment – new approaches are needed to take account of the wider benefits of Smart Grids.

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7) Engage the demand side – it is a vital part of the Smart Grids Vision to promote active demand side / user participation. 8) Address technical standards in the electricity and telecommunications sectors - engage the standards and regulatory bodies from both sectors to ensure that they are in line with the Smart Grids Vision and its needs. 9) Understand and manage the environmental impacts of network development – stakeholders’ concerns must be understood and addressed appropriately. 10) Promote open access to network performance data – vital for effective functioning of the market, for grid operational security but also for the effective R&D. 11) Develop the “skills” base in the electricity networks sector – without resolving this problem of resources, any progress will be severely constrained.

5.3 REFERENCES AND BIBLIOGRAPHY Following Websites has been used for reference :-1 . www.bsesdelhi.com 2. www.smartgridnews.com 3. www.drsgcoalition.org 4 . www.sgiclearinghouse.org 5 . www.isgf.com 6. Smart infrastructure: the future, The Royal Academy of Engineering, Jan. 2012. 7 .SMART 2020: Enabling the Low Carbon Economy in the Information Age 8. The Smart Grid Vision For India’s Power Sector – A White Paper 9. ieeexplore.ieee.org 10. www.drdc-rddc.gc.ca

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