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Artificial intelligenceMarket In India-Energy Sector

January-2020

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Overview of AI In Energy Sector driving today’s breakthrough

Table ofcontents

What perspectives for AI in the P&U Industry?

The use cases in the market today

Companies, working with AI Technology in the power sector-India

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The Energy sector faces a number of threats and challenges to its existingmodel – AI offers tools to help adapt

A great energy disruptionData revolution► Massive increase of data► Multiple sources of data

Digitalisation and Technology► Digitalisation along the P&U value

chain while ensuring safety fromcyber-attacks

► Exponentially improving newtechnologies efficiency

1A cleaner Energy mixClean Energy► Solar and wind farms► Mass-market electric vehicles

New Industry, new possibilities► Energy storage► Classical energy sources slowdown

Unpredictability and reliability issues► Renewables power sources are less

predictable► Maintain a secure, reliable

supply to customers

2A complex business modelNew business models► New business models to low-carbon

energy generation► Development of new products and

services

Competitive and deregulated P&Uecosystem► Opening the market to increasing

levels of competition

High volatility of costs► Continuous assessment of supply

and demand based on price signals

3Utilities need to resolve some fundamental issues:

P&U: power and utilities

SB1SB2SB3

Slide 3

SB1 1. UDAY 1.0 , 2.0 , IPDS ERP and RAPDRP Refresh (CCB, GIS etc)Sachin Bhardwaj, 13-01-2020

SB2 2. SOlar Target set and status, Thermal News (NTPC Will not setup any new thermal), BESS - Policy?, Reliability - NationalTariff policy Draft (Source)Sachin Bhardwaj, 13-01-2020

SB3 3. Carbon emission policy, paris agreement, Wire and retail seperation (Draft) EA 2014 (Draft), Privatise Discoms (News),RisingPower Purchase Costs (Search)Sachin Bhardwaj, 13-01-2020

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Overview of AI In Energy Sector driving today’s breakthrough

Table ofcontents

What perspectives for AI in the P&U Industry?

The use cases in the market today

Companies, working with AI Technology in the power sector-India

Page 5

How can utilities take advantage of AI in each section of the value chain?

Customer servicesSupply and demandbalancing

► Create new energy tradingcapabilities (modelling andforecasting of electricityprices)

Power generationDistribution systems

and Smart Grids

► Enable new generationmodels (DER, REN…)supporting the growth ofnew energy usages (Storage,EV,…)

► Maximize power generationefficiency with real timeadjustments

► Tackle uncertainty andunpredictability grids(consumption peaks, faultdetection…)

Reduce operating costs :► Enable predictive maintenance with smart operations management

(maintenance, security, monitoring…)► Minimize downtime with data management on the grid (supervision,

monitoring, autonomous piloting)

► Create new powerecosystems based on newways to produce andconsume power (e.g. Micro-grid) ► Improve demand and supply

balance using self-learningprediction models

► Perform short-term and long-term forecasting of spotprices based on variousfactors

► Provide autonomousresponse to market signalswith continuous assessmentof supply and demand

► Improve Customer retention dueto better understanding of hisbehaviour

► Provide new energy solutions tooptimise business consumption

► Commercialise new tailoredservices that suit customerspreferences (best pricing, energysupply, virtual agents)

► Pilot energy consumption withautonomous smart systems

Marketing

Energy services

Top line AI capability

Bottom line AI capability

SB4

Slide 5

SB4 Power Gen :Sachin Bhardwaj, 13-01-2020

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Overview of AI In Energy Sector driving today’s breakthrough

Table ofcontents

What perspectives for AI in the P&U Industry?

The use cases in the market

Companies, working with AI Technology in the power sector-India

Page 7

Smart Metering Analytics – Use Cases and VAS

Planning Analytics for Meter Deployment

Operational Efficiency Analytics

Customer Analytics

Revenue Leakage Analytics

Advanced Forecasting

Analytics driven Decision Support Dashboard

Grievance analytics

SmartMetering

Securitydeposit dueto increasedsanctioned

load

Crash billingsystem

OutageManagement

TOD Metering/Consumption

Analysis

Loadbalancing

Readingreversecases

analysis

Analytics Use Cases Value Added Services (VAS)

Revenue Increase,reduction in risk

of bad debt

IncreaseWorkingCapital

RevenueIncrease

CostOptimization

NetworkOptimization

RevenueIncrease

VAS for consumers would also be provided such as Insurance of Appliances, Energy Efficiency, Surge Protection etc.

Karnataka

Himachal Pradesh

Assam

West Bengal

Tripura

Telangana

Puducherry

Gujarat

Chandigarh

UP

40L

10L

2L

2L5L

20L

30 L

4L(3L)

10L (1L)

States currently implementingsmart metering projects

States undergoing a selectionprocess/Bidding

States planning to implementsmart metering projects in thenear future

Maharashtra10 L

1L

0.7k

3L

10L

10L

50K

1L

2 L

J&K

Rajasthan

Punjab

Chhattisgarh

MP

Haryana

Bihar

AP

Kerala

Jharkhand Manipur

2L

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Predictive maintenance and identify cable faults due to insulation breakdown or faulty joints

§ Reduce power cuts due to equipment wear

§ Reduce time to fix the power cuts by improving detection ofgrid dysfunctions

Which challenge is addressed in this use case?

AI in Underground Cable Fault Analytics- Use Cases

Dashboard with Risk categorization of assets with load profile ofeach asset

Asset Cost Vs Spend Analysis for each asset and supplier giving you totalcost of ownership vendor wise

Distribution of work orders month wise for each asset Cost spent on each type of work order across the months for a givenasset or type

§ Proactive alerts for likely underground cable faults with best possible levelof corrective actions

§ Identify the potential impacts of cable fault failures on rest of grid network

§ Identify locations where failure might occur and to provide early warningsigns of cable failures

§ Risk classification of cables based on their health parameters and generatenotifications if required

WHAT breakthrough does AI bring to the use case?

Page 9

Overview of AI In Energy Sector driving today’s breakthrough

Table ofcontents

What perspectives for AI in the P&U Industry?

The use cases in the market

Companies, working with AI Technology in the power sector-India

Page 10

Companies Leveraging AI applications

Mature applications: examples and benefits realized

Offering real-time energy management to offer a fully integratedend to end decision support system

With cloud-based solutions and analytics, application help to reducetheir power cost

Helping solar firms, how much solar can be installed and generateengineering design that maximises solar energy generation

Facilitate consumers with itemised billing, customer engagementplatform, personalised energy saving recommendations

With tools in UAVs, IoT enabled devices, providing accurateinformation to stakeholders while monitoring solar plant cost,locates hotspots with thermal scans and more.

Using technologies such as automated metering and big dataanalytics, it connects electricity meter to phone generating real-time insights about energy usage and house activity.

13%

38%

Multiple use cases at scale*Source: Capgemini Research Institute Intelligent Automation in Energy and Utilities Survey,February 2019, N=529 executives from energy and utilities organizations that are experimenting withor implementing intelligent automation initiatives.

*Multiple use cases at scale are defined as intelligent automation initiatives deployed across multipleprocesses and across the breadth of the countries the company operates in.

PROPORTION OF ORGANIZATIONSIMPLEMENTING AUTOMATION AT SCALE

IN INDIA

Key Area Take Away for Energy Sector In IndiaØ AI has the potential to add approximately USD 1 trillion by 2035. Globally,

India ranks third, right behind China and the US, in terms of penetration ofAI skills.

Ø In survey of state power distributors, only two states, Tamil Nadu andGujarat, prioritized predictive load balancing.

Ø Indian firms in this space utilizing machine learning like Climate ConnectØ Gujarat Electricity Regulation Commission recently announced new

regulations that permit day-ahead and intra-day scheduling changes forrenewables—up to 9 times a day for solar generators and up to 16 times aday for wind generators..

Survey: Centre for Strategic and International Studies