Smart Grid in India – Overview, Status and Challenges Math… · Radial topology Network topology Few sensors Monitors and sensors throughout Changing Grid Behavior Prone to failures

INFRASTRUCTURE & GOVERNMENT

ADVISORY / BPS

Smart Grid in India – Overview, Status and Challenges

Metering India – 2008, Mumbai, India

15 October 2008

2© 2008 KPMG Advisory Services Private Limited, an Indian private limited company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Presentation Structure

Smart Gird: Overview

Smart Gird: Status

1

Smart Grid: Challenges

2

3

What is Smart Grid?

Key Drivers of Smart Grid

Why Smart Grid?

Technological Advancements

Status of Smart Grid - Globally

Status of Smart Grid in India

Barriers to implement Smart Grid

Challenges specific to Indian Utilities




Smart Gird: Status

1


2

3

What is Smart Grid?

Key Drivers of Smart Grid.

Why Smart Grid?







What is the Smart Grid?

Different nomenclatures of Smart Grid exist such as Smart Grid, Intelligent Grid, Intelligent Utility Network etc. which are all based on EPRI’s vision for “Intelligrid”.

“Smart Grid is defined as the application of digita l information technology to optimize electrical pow er generation, delivery and end use”

Key features of a Smart Grid

• Automated Transmission and Distribution System operating in coordinated and reliable manner

• Handles emergency situations with self healing actions

• Has intelligent communication infrastructure

Self healing occurs by Fault Detection, Isolation and Restoration (FDIR) of the un-faulted sections

Smart Grid is the integration of Electrical Infrastructure with Information and Communication Infrastructure

In a conventional power grid, the grid observability is limited up to SCADA end points, which are high voltage or medium voltage substations, whereas in a Smart Grid, it is extended up to the individual end consumers through smart sensors and smart meters with two way communication capabilities

While High Voltage transmission network is intelligent to a certain extent, Smart Grid is more about building an intelligent Low Voltage network


Some defining functions of a Smart Grid include…

The grid will be ‘self-healing’

The grid will be more secure from physical and cyber threats

The grid will support widespread use of distributed generation

The grid will enable customers to better control the appliances and equipment in their homes and businesses

The grid will achieve greater throughput, thus lowering power costs

Sophisticated grid monitors and controls will anticipate and instantly respond to system problems in order to avoid or mitigate power outages and power quality problems

Deployment of new technology will allow better identification and response to man made or natural disruptions

Standardized power and communications interfaces will allow customers to interconnect fuel cells, renewable generation, and other distributed generation on a simple ‘plug and play’ basis

The grid will interconnect with energy management systems in smart buildings to enable customers to manage their energy use and reduce their energy costs

Upgraded grid will increase the throughput of the transmission network and optimize power flow. It will reduce waste and maximize use of the lowest-cost generation resources


Key drivers of Smart Grid in an upcoming business e nvironment…

…these forces are increasing the need for greater network reliability, efficiency, flexibility and observabilityrequiring improved enterprise integration and information transparency

Operational Excellence

Business Environment

Reliability & Quality of

Supply

SupplyReliability

PowerQuality

RenewableResources

GreenhouseGases

DemandResponse

AgingWorkforce

AgingInfrastructure

OperationalEfficiency

CustomerSatisfaction & Expectations

SMART GRID


Increasing customer expectations are forcing utilit ies to adopt Smart Grid….

Empowered ConsumerPassive Rate Payer

In the Past Now & Evolving

Low or practically No tolerance for outageHigh tolerance for outage

Open access provides freedom of chooseNo choice of supplier

Connected home with digital appliancesInteraction limited to once in month

Consumers expect utilities to lower GHG emissionsIndifference to climate concerns, fuel type etc.

Can buy and sellOnly buys power

Changing Customer Behavior

Evidence of changing consumer attitudes established through a survey conducted in the summer of 2007. The survey interviewed almost 100 utility executives and 1900 households and small businesses from the U.S., Germany, Netherlands, England, Japan and Australia.

Consumers are awakening to the concept of choice, and they welcome it. Some interesting findings: • 83% of those who cannot yet choose their utility provider would welcome that option • Roughly two-thirds of the customers that do not yet have renewable power options would like the choice • Almost two-thirds are interested in operating their own generation, provided they can sell power back to the utility


Smart Grid of the future…

DigitalElectromechanical

20th Century Grid 21 st Century Grid

Two-way communicationsOne way communication (if any)

Accommodates distributed generationBuilt for centralized generation

Network topologyRadial topology

Monitors and sensors throughoutFew sensors

Changing Grid Behavior

Adaptive protection and islandingProne to failures and blackouts

Full price informationLimited price information

Decision support systems, predictive reliabilityEmergency decisions by committee and phone

Grid 2030 Vision of US calls for the construction of a 21st century electric system that connects everyone to abundant, affordable, clean, efficient, and reliable electric power anytime, anywhere.


Building blocks of Smart Grid

• Regulatory & Market Incentives• Environment – Conservation

• Reliability

• Organizational Capabilities• Business Processes

• Roles & Responsibilities - Skills

• Technology• Supply Side

• Distributed & Demand-Side Resources

• Interconnections and Micro-Grids

• Power Delivery

• Network Design

• Protection and Control Strategies

• Asset Management & Utilization

• Information Technologies

• Data Communications

• Data Management

• Enterprise Level Integration and Inter-operability

• Intelligent Applications

Grid Design &

ConfigurationData Communications

Data Processing,

Analysis & Intelligent Applications

Systems and Data Integration / Interoperability

Business Processes

Organizational Capabilities

Distributed Generation

Technologies

Demand-Side

Automation

Intelligent Devices; Metering. Protection, Control & Monitoring Equipment

Regulatory Incentives

Tec

hnol

ogy

Tec

hnol

ogy

Peo

ple

&

Pro

cess

Peo

ple

&

Pro

cess

Pol

icy

Pol

icy

Grid Design &

ConfigurationData Communications

Data Processing,

Analysis & Intelligent Applications

Systems and Data Integration / Interoperability

Business Processes

Organizational Capabilities

Distributed Generation

Technologies

Demand-Side

Automation

Intelligent Devices; Metering. Protection, Control & Monitoring Equipment

Regulatory Incentives

Tec

hnol

ogy

Tec

hnol

ogy

Peo

ple

&

Pro

cess

Peo

ple

&

Pro

cess

Pol

icy

Pol

icy


Key benefits of Smart Grid

Reduced Capital Expenses

• Reduce per unit capital expenses through increased utilization of the components

• Slow peak demand growth by using smart meters to implement time-of use tariffs

• Support distributed generation with remote asset monitoring and control

Reduced Operating Expenses

• Reduce theft and improve revenue collection with automated meter management

• Avoid emergency maintenance and replacement of assets with remote asset monitoring

Improved Reliability

• More accurately forecast demand to improve real time configuration of the network, allowing components to operate within their actual capabilities

• Leverage detailed, real time information to prevent blackouts whenever possible, and to keep them as short as possible when they occur

• Avoid sudden price shocks from unanticipated network failures

Improved Business Case for Infrastructure Upgrade

• Win the approval of regulators by convincing them that prudent investment decisions are being made

• Defer infrastructure investment by using smart meters to implement time of-use tariffs




Smart Gird: Status

1


2

3

What is Smart Grid?

Key Drivers of Smart Grid

Why Smart Grid?







Witnessing continuous technological advancements…

Continuous technological advancements led to:

• Low cost of electronic equipment

• Multiple Communication Options – Earlier: utilities had to rely on self owned communication systems (PLCC, Fiber etc.). Now: shared public digital network (CDMA, GSM, GPRS, internet etc.) can be leveraged for utility applications

• Advancement in IT and automation technologies – faster processors, smart meters, smart sensors, digital relays etc.

…there is thus an increasing need for graduating to Smart Grid and there are technologies that can facilitate this transformation

Distributed Resources

Power Grid Management

Customer Power Management

Distributed Generation Interconnection

Energy Storage Integration

Real Time Monitoring

Transmission-distribution

Demand Response Automation

Communication Networks

Smart Meters

Smart Buildings/ Equipments

Smart Appliances

Voltage Regulation

Are

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f Tec

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ogic

al

Adv

ance

men

ts


Status of Smart Grid Globally

• Even for advanced utilities in the developed countries, a fully operational Smart Grid is still 3-5 years away

• Globally, several utilities are implementing Advanced Metering Infrastructure (AMI), which is the first step

to Smart Grid.

Who is working on it in US?

GridWise Alliance

Intelligrid

Other Efforts

• The GridWise Alliance aims to lead a national development and deployment effort for innovative smart grid technologies.

• The Alliance works in coordination with the GridWise Program in the U.S. Department of Energy’s (DOE) Office of Electricity and Energy Assurance.

• This is an effort to develop software architecture for the smart grid undertaken by the Electric Power Research Institute (EPRI).

• Intelligrid products are already being used by the Long Island Power Authority, Electricite de France and the California Energy Commission.

• DOE is also undertaking related efforts to accelerate energy storage, superconductivity and other grid technologies.

• The Power Systems Engineering Research Center joins 13 universities (including Washington State University) in collaborative research aimed at solving grid problems.


Grid 2030 Vision of US

“Grid 2030” energizes a competitive North American m arketplace for electricity. It connects everyone to abundant, affordable, clean, efficient, and reliable electric power anytime, anywhere. It provides the best and most secure electric

services available in the world.

Vision Statement

A sample of potential products and services made po ssible by progress toward the vision



• EHV Grid – India can boast of a fairly advanced High Voltage grid compared to many developed

countries. However, integration of different systems continues to be an issue.

• Power system is operated as five regional grids, which are now being interconnected to form a national grid. This system deploys most advanced control systems. However, the real time information collected by the control systems are not available for the power market to operate efficiently. Thus, the grid operating systems and the individual business systems (demand supply forecasting, trading and financial settlement systems) are not integrated.

• On the Low Voltage side, distribution utilities (mostly state owned) are still grappling with basic challenges of containing network losses, increasing network reliability and quality of supply etc.

• Some of the utilities, particularly in the metros have implemented automation and IT systems, which again are functioning as independent islands

• Implementation of automation and IT solutions and its integration is still a far distant away for the Indian utilities.

• In developing countries utilities which have implemented various automation and IT systems in the last few decades are now struggling to integrate these systems. The same asset has different nomenclature in databases of each application.

• In India, most distribution utilities have insignificant automation and IT systems and are therefore, in a position to leap-frog straight to Smart Grid technologies through an integrated approach.




Smart Gird: Status

1


2

3

What is Smart Grid?

Key Drivers of Smart Grid.

Why Smart Grid?







Barriers to Smart Grid across the World

Having established the case for Smart Grids, following are the potential barriers in

implementation of the same across the World:

• Cultural barriers to change

• Costs of development and implementation

• High levels of uncertainty

• Regulatory risk

• Perceived complexity

• Risks from Cyber crime

• Burden of operating and maintaining the solutions

• Vested interests


Certain challenges are specific to the Indian Utili ties

• Monolithic applications, particularly SCADA systems, non-standard and non-normalised

data models, rudimentary user interfaces etc. are some of the issues in interconnection

of grids.

• Proprietary standards and protocols adopted by equipment manufacturers (meters,

relays, sensors).

• Financial Viability of Utilities.

• Regulatory approvals for capital investments

• Skill gap in utilities – for evaluating and adopting appropriate systems, operating, and

maintaining the systems


Grid 2030 Vision document (US) summarizes the chall enges in achieving the vision…

Demand-side participation

In power markets

Workably competitive market design

NIMBY

Addressing Customer &

Public Needs

Federal-state cooperation

Market power of incumbent suppliers

Public purpose programs

Stable regulatory framework

Sustained R&D funding

Monetizing revenue streams

Matching rewards to risks

Testing Versions

Unobtrusive power lines

Lower cost storage

Long distance superconductivity

Clean power generation

Real-time information systems

Advanced composite conductors

Capital investment

Education, training and development of workforce

Fragmented industry subject to balkanization

Low level of R&D spending

Attitudes resistant to change

Slow turn-over of the capital stock

Lack of success in some markets

Developing Better Public

Policies

Finding Profitable Business

Model

Developing Better

Technologies

Attracting Resources

Overcoming Inertia


Presenter’s contact detailsName: Siddhartha MathurKPMG Advisory Services Pvt. Ltd.Phone: +91-9811064848Email: [email protected]

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Documents

Smart Grid in India – Overview, Status and Challenges Math… · Radial topology Network topology Few sensors Monitors and sensors throughout Changing Grid Behavior Prone to failures