Smart Grid in India – Overview, Status and Challenges Math… · Radial topology Network topology...
Transcript of Smart Grid in India – Overview, Status and Challenges Math… · Radial topology Network topology...
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
3© 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
4© 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.
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
5© 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.
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
6© 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.
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
7© 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.
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
8© 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.
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.
9© 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.
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
10© 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.
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
11© 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
12© 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.
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
as o
f Tec
hnol
ogic
al
Adv
ance
men
ts
13© 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.
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.
14© 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.
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
15© 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.
Status of Smart Grid in India
• 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.
16© 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
17© 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.
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
18© 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.
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
19© 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.
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
20© 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.
Presenter’s contact detailsName: Siddhartha MathurKPMG Advisory Services Pvt. Ltd.Phone: +91-9811064848Email: [email protected]
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