HIGH PRIORITY MARKET - SMART GRID
Deploying IT-based monitoring systems – spearheaded by a government-funded scheme
The Scheme
Ÿ Officially known as the Restructured Accelerated Power Development and Reforms Programme ( R-APDRP ) Ÿ
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This central government sponsored scheme aims at reducing network losses of state-owned power distribution utilities by funding projects in IT-based energy systems as well as physical network overhaul
The scheme also provides for funding utilities ’ initiativesin technology adoption such as smart grid pilot projects
Funding Structure
Part-A Category
Ÿ This category pertained to projects related to IT-based energy accounting and monitoring systems as well as baseline network data
Ÿ Over 1,400 towns were identified in this regard . Within these , select towns were identified for SCADA
Ÿ Total budgeted outlay for this was about USD 1.7 billion , to be released as upfront grants for utilities
Part-B Category
Ÿ In this category , utilities were expected to undertake projects related to network and system strengthening – essentially involving physical infrastructure
Ÿ This covers about 1,260 towns for implementation of key projects in utilities ’ power distribution network
Ÿ Total budgeted outlay for this was about USD 7 billion , to be released based on milestones
The case for smart grids – leapfrogging utilities ' technology profile
Concept
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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 value chain
Through technology , the aim is to make the entire grid efficient – by minimising human errors , encouraging active interactions between demand and supply sides and setting appropriate incentives for the value chain
Context
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In the Indian context , the need for smart grid is being driven by rising complexity in overall power sector transactions p There is a synchronous operation of bulk power transmission that needs to be coordinated and balanced p Power generation is increasingly diversified , thus making it difficult to plan and schedule power flow p Rising consumer base and its requirements entail appropriate business models p As cost of power rises , the network losses in distribution need to be minimized
Emerging requirements of power utilities across the value chain
Generation
Transmission
Ÿ Emergence of multiple distributed generation sources ( as a shift from traditional centralised generation )
Ÿ Stress on maintaining plant availability in the grid
Ÿ Setting up dedicated capacities for peak demand in power network
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World ’ s largest synchronous grid operational in India – requiring coordination from multiple players Regulating grid discipline – automated controls required for pre-emptive steps Intelligent controls and analytics for integrating renewable energy
Distribution
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Long identified as the weakest link in power system value chain – strong need to cut lossesin network Need for demand response systems to reflect market forces in power market Analytics and forecasting capabilities to ensure optimal resource planning in power procurement
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