Comparative Study Between Utility Computing and Grid Computing
The Smart Grid Vision for Jodhpur Power Utility
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Transcript of The Smart Grid Vision for Jodhpur Power Utility
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PA CONFIDENTIAL - Internal use only
THE SMART GRID VISION FOR
JODHPUR POWER UTILITYJodhpur
Rakesh Kumar Goyal
22nd April 2010
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PA Knowledge Limited 2010. Page 2PPT presentation template V1-10.pptPA CONFIDENTIAL - Internal use only
The Smart Grid is the future of the electric industry
The Smart Grid results from a convergence of powerful forces
Today, the Smart Grid is still a vision more than a blueprint
But infusing T&D networks with computing and telecommunications capabilities is theheart of the Smart Grid vision
Smart Grids could radically transform the way electricity is produced, transported andused
Important dimensions include:
T&D automation to enhance operational efficiency and reduce cost
AMI + demand response to optimize energy usage
Promote RE and EE to reduce carbon emissions
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Why are efficient electricity networks important?
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Electricity is the premium form of end-use energy
Electricity is the premium energy source for an increasingly digital world
Growth in demand for electricity is unrelenting
Population growth and increasing affluence feed demand for reliable powerElectricity is the fastest growing form of end-use energy
Non-OECD countries will use 58% of world energy by 2030
US energy needs met by electricity grew from 20% in 1960 to 40% in 2000
This is a harbinger of the global future
Source: US Energy Information Administration, International Energy Outlook,2009
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Indias power sector has added challenges
Supply shortfalls
Peak load management issues
Higher technical and commercial lossesIncreasing global competition for resources
Challenges for Jodhpur Power Utility
High Solar potential
Higher technical and commercial lossesAbout 40% agriculture consumption with no economic incentive to useefficiently
Dispersed Geographical area
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The power sector is also one of the biggest carbon emitters
Indias installed thermal power generation capacity represents 60% of net generationcapacity and 57% of greenhouse gas emissions
Based on current plans, this scenario will likely continue until 2020
Thus, the national goal to install 20,000 MW of solar powerby 2020
Wind and other renewables are growing rapidly too
Smart Grids are needed to enable grid management tocope with the unique dispatchability characteristics
of renewable energy sources
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An historic convergence is reshaping the electric business
Relentless growth in electricity demand as the premiumform of energy
Demand for higher quality by more discerning andaffluent customers
Meanwhile, technological advances in information and communications technology(ICT), metering and generationare key enablers
Continued reductions in the cost of technology vastlyexpands its scope
The climate change crisis is driving the need for an urgent reduction in carbon emissions and thus a much moreefficient power sector
The traditional business model is troubled and implementationof a Smart Grid vision may facilitate a reinvention of the business
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PA Knowledge Limited 2010. Page 9PPT presentation template V1-10.pptPA CONFIDENTIAL - Internal use only
What, exactly, is a Smart Grid?
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The Smart Grid is a vision more than a blueprint
The Smart Grid cant be reducedto a simple formula.
The broadest interpretation sees theelectric industry transformed by theintroduction of two-way communicationsand ubiquitous metering and measurement.
It will enable creation of more reliable,more efficient and more secure electricalinfrastructure
Key characteristics of the smart grid
Self-healing: The grid rapidly detects, analyzes, responds,and restores
Empowers and incorporates the consumer: Ability toincorporate consumer equipment and behavior in griddesign and operation
Tolerant of attack: The grid mitigates and is resilient tophysical / cyber-attacks
Provides power quality needed by 21st-century users: Thegrid provides quality power consistent with consumer andindustry needs
Accommodates a wide variety of supply and demand: Thegrid accommodates a variety of resources, includingdemand response, combined heat and power, wind,photovoltaics, and end-use efficiency
Fully enables and is supported by competitive electricity
markets.
Robert Galvin and Kurt Yeager, Perfect Power, McGraw Hill, 2009, p. 82.
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The Smart Grid environment spans the electricity value chain
Source
Generation Dispatch, AREVA IEEE Smart Grid Conference January 2010.
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Advanced technologies will make smart grids possible
Meters
Storage devices
Distributed generationRenewable energy
Energy efficiency
Home area networks
Demand response
IT and back office computing
Security
Integrated communications systems
Superconductive transmission lines
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Technology enables improvements in many areas
Phasor Measurement
Unit
Demand response
Capacitor control
Islanding
Time-of-use tariffs
Distributed, standbyand off-gridgeneration
Renewable energy
DSM and LM
Mini-SCADA
Outage monitoring
and evaluation
Remotedisconnection andreconnection
Automated meterreading
CRM applicable
Increase
electricitysupply
Reduce
commerciallosses
Reduce
operating costsReliabilityAvailability
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But where does the customer fit in?
ARC + GCR = QCS is the formula for Quality Customer Service [Availability, Reliability,Cost + Good Customer Relations]
For many, the as-delivered service may feel like ARC + GCR
Much of the Smart Grid is focused on other results, e.g.
Reducing carbon emissions
Improving the efficiency of the networks
Promoting renewable energy and energy efficiency
Enhancing security of supply
But customer uptake will be critical to achieving full benefits
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Customer response is a critical success factor for SmartGrids
Customers want utilities to produce benefits, including
Reduced Monthly Electricity Bill
Reduced outagesIncreased control over energy consumption and cost via better data on usage and usagepatterns (like telcoms)
More choices for energy sources
Options to supply energy to the grid
Green choices to increase environmental sustainability
The price differential between peak power vs. solar and diesel generation alternativesis shrinking
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Kitna hai? How Much?What are the cost-benefit analysis issues?
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Smart Grid cost-benefit analysis warrantsa broad-gauged approach
It should incorporate societal benefits and externalities as well as the costs and benefitsof conventional investment proposals.
This will require a delicate balance, but the transformational potential of the smart grid
vision warrants it.
A reduction in carbon emissions will improve public health.
Some smart grid projects will create employment, enhance agricultural security,stimulate economic growth or provide other benefits that are outside the boundaries of
conventional projects.
These should be taken into account.
Such benefits are difficult to measure, but that shouldnt deter policy makers andregulators from devising a methodology.
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Potential benefits
Peak load reduction. TOD price signals has unique potential for India.
AT& C loss reduction. This is a major commercial and regulatory consideration. Discoms
may consider communication technology.
Self-healing. A smart grid automatically detects and responds to routine problems andquickly recovers, minimizing downtime and financial loss.
Consumer motivation. Smart grids give consumers visibility into pricing offers anopportunity to control usage
Attack resistance. Smart grids have security built-in from the ground up.
Improved power quality. A smart grid helps provide power free of sags, spikes,disturbances and interruptions.
Accommodation of all generation and storage options. Enables interconnection to
distributed sources of power and storageEnabled markets. Supports investment and innovation.
Optimized assets and operating efficiently. Lowers need for construction of newinfrastructure and enables sale of more power through existing system.
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Risk factors
The Impact of a Smart Grid projects scale and complexity Uncertainties create afinancial risk that actual benefits from a smart meter plan may prove to be less than the
stated projections.The Systems Integration Effect The costs and benefits of a partial, stand aloneSmart Grid implementation might be notably less attractive than the costs and benefits of
a broader, holistic program.
Accelerated depreciation of technology The technological and cost curves for
computers are very different from the equipment historically used in the electric industry.If advanced metering systems exhibit technological and cost behaviors similar to those ofcomputers, their useful lives may turn out to be shorter than estimated.
Risk of stranded assets This could involve equipment that was, at the point ofinstallation, state-of-the art but before it reached the end of its useful life it was eclipsedby newer technology costing much less.
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Whats the way forward?
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Connecting the smart grid dotsTM framework
Connecting the smart grid dots framework is trade marked by PA Consulting
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You may need to rebuild the ship, but you cant stop sailing
There is much unfinished business to be taken care of before adopting advanced smartgrid features on a broad scale, but action should not be delayed.
Transitioning to a smart grid vision tailored to Indias unique circumstances wouldinclude:
Develop a national vision and a flexible plan to pursue smart grid benefits
Build on R-APDRP and link service quality improvements to measurable KPIs
Develop smart grid pilots to reinforce operational efficiency at discoms Conduct customer and marketing surveys to refine the understanding of what drives
customer satisfaction
Craft policies and regulations to create a more receptive environment for smart gridsby encouraging innovation, establishing interoperability standards, and allowing moremarket-oriented and entrepreneurial solutions.
Implement techno-commercial proof of concept pilot projects for initiatives that havepotentially high impacts, including those that can be implemented independently ofthe grid.
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Whats the next move?
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Overall, the major elements include:
Developing a smart grid vision
Conducting appropriate communication to educate and develop consensus
Identifying viable funding options
Implementing appropriate policy and regulatory actions to set common standards andencourage innovation.
In tandem with these actions, certain techno-commercial pilot projects could be
implemented to demonstrate their commercial viability. A high-level view of the nextsteps is presented in the following table.
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Smart grid focus areas for Jodhpur power utility
High potential impact Contributing impact Enabling precondition
8.Direct debit delivery of subsidiescoupledwith cost-based tariffs
7. Advanced Volt/VAR support
6. TOU rate pilot project
5. Distributed RE generation in
remote rural villages
4. Off-grid renewable energy for
irrigation pumping
3. Replacement of small- scale
gensets with renewable energy
2. Smart green apartment complex
1. Link R-APDRP to measurable
service- quality KPIs
Transformthe BizModel /
AccelerateReform
ReduceDemand on
Discoms
FacilitateDemand
Response
and EnergyEfficiency
Improve
ServiceQuality /Enhance
Transparency
Reduce /MitigateCarbon
Emissions
ReduceAT&C
Losses /Improve
EfficiencyPossible Pilot Project/Study
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The initial capital cost could be significant
Installation and O&M costs are unknown.
Reliable electricity for irrigation pumping
Enhanced control of ability to irrigate crops for farmers
Improved agricultural outcomes, i.e., crop quality,farmer incomes
Reduction in power sector subsidies
CostsBenefits
A intensive program to educate farmers will likely be required
Regulatory approval and assent by a discom may be required if an ESCO (with a contractwith the local discom) will own the RE source
Vested interests who get free electricity under Ag tariffs may oppose something thatreduces the known benefit they now receive
The economic viability of the program might require metering and possibly a cost-recovermechanism, e.g., tariff.
Analyze EA03 and state regulations to identify preconditions
Survey RE and high-efficiency pump manufacturers to identify the technologyoptions and estimated costs
Study the results of Ag DSM pumping pilotsand franchise pilots
Develop an economic model, evaluate costs and benefits,and assess funding options
Plan demonstration pilots for several regionswith different RE.
Key Challenges and QuestionsImplementation Approach
Many of Indias 10,000,000 irrigation pumps are powered by electricity that is provided free or at a nominal tariff. These dysfunctional but politically correct tariffs have caused thewasteful use of water and electricity. Underground aquifers are being depleted at an ever-increasing rate and estimates of electricity used for irrigation pumping range from 20 to30% of total. Distributed renewable energy (e.g., wind, solar) could be used to provide power to operate pumps that could irrigate fields directly or pump water to storage tanks forlater use or, alternatively, energize batteries. A one-time capital grant to offset the installation cost of such a system might be justified in terms of the value of subsidies to thepower sector that could be discontinued. This could be integrated as part of an ESCO Agricultural DSM solution as is being tested at Doddaballapur, Karnataka or with othermodels considered (e.g., farmer cooperative), including the franchise model to improve the economic viability of franchises with significant agricultural demand.
Business Case
Off-Grid Renewable Energy for Irrigation Pumping
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The secret to survival is to embrace change and to adapt- Rohinton Mistry, A Fine Balance