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Accelerated Deployment of Smart Grid

Technologies in India Present Scenario,

Challenges and Way Forward
Er. Alekhya Datta1, Dr. Parimita Mohanty2, Er. Mukesh Gujar3

Research Associate, 2Fellow and Area Convenor, 3Research Associate



TERI The Energy and Resources Institute

Darbari Seth Block, India Habitat Centre (IHC) Complex
Lodhi Road, New Delhi 110 003, India

Abstract The idea behind Smart Grid Vision for India is to

transform the Indian power sector into a secure, adaptive,
sustainable, and digitally enabled ecosystem that provides reliable
and quality energy for all with active participation of stakeholders.
Realizing the growing importance of Smart Grid technologies in
the Indian power sector, very recently Ministry of Power,
Government of India on the recommendation of India Smart Grid
Task Force (ISGTF) has shortlisted fourteen (14 Nos.) Smart Grid
pilot projects that are planned to be executed in power
distribution sector in India. As per the Smart Grid Roadmap for
India, these pilot projects are expected to help technology section
guides, develop business cases, policy and regulatory
recommendations for larger projects in the next phase, while
showcasing the relevance of Smart Grid on different aspects such
as, Advanced Metering Infrastructure (AMI), Outage
Management System (OMS), Peak Load Management System
(PLMS), Renewable Energy (RE) Integration etc. The average
estimated cost of each pilot project would be US$ 10 million
(approx.) out of which 50% is grant will be provided by
Government of India through (budgeted INR 2 Lakh Crores for
Smart Grid projects across India under 13th Five-Year Plan)
Restructured Accelerated Power Development and Reforms
Program (R-APDRP) and rest to be borne either fully by the
utility or, shared between the utility and the technology providers,
and targeted to be completed by the end of 2014.
The main objective of this technical paper is to underline the
present scenario of those selected Smart Grid pilots in India,
including proposed state-of-the-art Technology Integration,
Consumer Coverage (Base), and Key Performance Indicators
(KPIs). This study will also capture the Carnegie Mellons
Software Engineering Institute (SEI) Smart Grid Maturity Model
(SGMM), developed by the Global Intelligent Utility Network
Coalition (GIUNC) as a management tool, towards the Smart Grid
transformation to assess the performance (including, current

978-1-4799-3653-3/14/$31.00 2014 IEEE

status) of those utilities responsible for pilot demonstrations and

provide necessary recommendations to use this framework for
establishing future strategies and work plans as pertain to Smart
Grid implementations in the country. The purpose of this research
will further emphasize on the progress of applicable Smart Grid
interoperability and standards relevant to the Indian context,
development of indigenous low-cost smart solutions, gap analysis
and appropriate changes conducive to the deployment of Smart
Grid pilot projects, and discussion on National Smart Grid
Mission (NSGM) in India.



In India, the potential energy demand [1-2] by 2032 is estimated

to be as high as 900 GW, out of which the renewable energy
potential that can be exploited till 2032 is around 183 GW [3-4].
The twelfth Five Year Plan by Government of India (GoI)
target for renewable energy (RE) generation is 36 GW, which
will increase the current twelve per cent share of RE (excluding
hydro) to twenty per cent by end of this decade [5]. For
Commission (CERC) has foreseen Renewable Purchase
Obligations (RPOs) mandate of ten per cent of their power-mix
by 2015, and thereafter increasing at a rate of one per cent per
year till 2020, while the National Action Plan on Climate
Change (NAPCC) also aims for fifteen per cent of national
generation to be based on renewables by 2020. In addition to
that, Ministry of Heavy Industries and Public Enterprises

(MoHIPE), Government of India has also recently launched a

National Mission for Electric Mobility (NMEM) with a target
of six million electric vehicles by 2020 [6-7]. In India, a power
system of this size growing at such pace (8-10 per cent per
year) with an increased share of renewable energy requires
smarter systems to manage it efficiently and ensure its stability
and reliability. Thus, Smart Electric Grid as a collection of
Information and Communications Technologies (ICTs) will
enable utilities to modernize the way the electric network
operates and is managed.
The major driving factors for implementing Smart Grid pilots
for different stakeholders (including Utilities, Consumers,
Government and Regulators) in India [8] are: a) Consumption
Monitoring and Detection of Tampering, b) AT&C Loss
Reduction and Efficiency Improvements, c) Access to Energy
for the Masses, d) Renewable Energy Integration into the Grid,
e) Peak Load Management thorough Demand Forecasting, f)
System Improvements, and g) Outage Management and
Customer Service.
Recently announced fourteen Smart Grid pilot projects [9] by
Ministry of Power (MoP), Government of India (GoI) on the
recommendation of India Smart Grid Task Force (ISGTF) are:
1) Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL),
Panchkula (Haryana) Location: Panipat City Subdivision (Haryana State); Consumer Base: 31,914 Nos.
2) Chamundeshwari Electricity Supply Corporation Limited
(CESCL), Mysore (Karnataka) Location: Additional City
Area Division (ACAD), Mysore; Consumer Base: 21,824
3) Tripura State Electricity Corporation Limited (TSECL),
Agartala (Tripura) Location: Electrical Division No. 1 of
Agartala town; Consumer Base: 46,071 Nos.
4) Kerala
Thiruvananthapuram (Kerala) Location: Selected
Distribution Section offices spread over the geographical
area of Kerala State; Consumer Base: 25,078 Nos.
5) Electricity Department, Government of Puducherry (PED)
Location: Division 1 of Puducherry; Consumer Base:
87,075 Nos.
6) Uttar Gujarat Vij Company Limited (UGVCL), Mehsana
(Gujarat) Location: Naroda of Sabarmati circle which is
a cluster of industrial and residential area, and Deesa of
Palanpur circle which is an agricultural area; Consumer


Base: 20,524 no. of consumers in Naroda and 18,898 nos.

agricultural unmetered consumers in Deesa-II division.
Central Power Distribution Company of AP Limited (APCPDCL), Hyderabad (Andhra Pradesh) Location:
Jeedimetla Industrial Area; Consumer Base: 11,904 Nos.
Assam Power Distribution Company Limited (APDCL),
Guwahati (Assam) Location: Guwahati distribution
region; Consumer Base: 15,000 Nos.
Maharashtra State Electricity Distribution Company
Limited (MSEDCL), Mumbai (Maharashtra) Location:
Baramati Town; Consumer Base: 25,629 Nos.
Chhattisgarh State Power Distribution Company Limited
(CSPDCL), Raipur (Chhattisgarh) Location: Siltara Urla
area of Raipur District; Consumer Base: 508 Nos.
Himachal Pradesh State Electricity Board Limited
(HPSEBL), Shimla (Himachal Pradesh) Location:
Industrial town of Kala Amb; Consumer Base: 650 Nos.
Punjab State Power Corporation Limited (PSPCL), Punjab
Location: Industrial Division of City Circle Amritsar;
Consumer Base: 85,746 Nos.
West Bengal State Electricity Distribution Company
Limited (WBSEDCL), West Bengal Location: Siliguri
Town in Darjeeling District; Consumer Base: 4404 Nos.
Jaipur Vidyut Vitran Nigam Limited (JVVNL), Jaipur
(Rajasthan) Location: Vishwakarma Industrial Area
(VKIA), Sanganer sub-division of Jaipur; Consumer Base:
34,752 Nos.

The Energy and Resources Institute (TERI) has carried-out a

research study to understand the present scenario, challenges,
and techno-economic viability for these five out of fourteen
selected Smart Grid pilot projects in Rajasthan, Haryana,
Assam, Mysore and Puducherry [10-14]. The average estimated
cost for each pilot is around INR 45 Crores over and above to
the cost implication of R-APDRP Scheme [15-17], and the
estimated payback period would be about five years. Since,
most of these pilots are having an interface between Meter Data
Management System (MDMS) and Meter Data Acquisition
System (MDAS) of these Smart Grid pilots and R-APDRP
through Web Services for achieving the following
functionalities, a) Energy Audit: Data of Sub-station, DTs and
HT consumers shall be pulled from MDMS of R-APDRP at a
specified time interval; b) Billing: Billing data of LT consumers
shall be pushed to MDMS of R-APDRP at the end of billing
cycle; and, c) GIS Mapping and Consumer Indexing data shall
be pulled from MDMS of R-APDRP and periodic
synchronization shall be carried-out. Therefore, all of these
selected pilots need to be covered under R-APDRP Scheme
which includes Consumer Indexing, Asset Mapping, GIS
Mapping of the entire Distribution Network, Automatic Meter

Reading (AMR) on DTs and Feeders, Renovation,

Modernization and Strengthening of 11 kV sub-stations and
transformers etc. and completion of R-APDRP will be a
stepping-stone for developing Smart Grids for the distribution
sector in India. Some of the leading private distribution utilities
in India mainly, TATA Power Delhi Distribution Limited
(TPDDL), BSES Yamuna Power Limited (BYPL) also have
implemented various Smart Grid technologies [18] in their
selected distribution feeders which includes, SCADA, DMS,
GIS, OMS, SAP based Billing System and CRM etc. to
increase their operational efficiency and reliability in isolation
through improved Key Performance Indicators (KPIs) such as,

Indian Institute of Technology, Rajasthan (IIT-J) and

Indian Institute of Technology, Guwahati (IIT-G), both
intend to setup a Smart Grid Research Laboratory.
USA Trade and Development Agency (USTDA)
concluded a US$ 692,000 grant agreement with Central
Power Research Institute (CPRI), Bangalore to prepare a
detailed planning and procurement document for the
implementation of a Smart Grid Test-Bed project in
Bangalore, India.
The Smart Metering Lab and Knowledge Center
established by Itron Inc. in Noida, India is a demonstration
center to showcase and demonstrate Itrons Smart Metering
and AMI solutions.
HCLs Center of Excellence (CoE) Smart Grid Lab in
Noida, India provides end-to-end smart solutions
encompassing the entire Smart Grid.
TERIs state-of the-art Smart Controller Laboratory
(SCLab) in New Delhi, India established under TERINorwegian Framework Agreement (NFA) with a vision to
design and develop innovative, cost-effective smart and
sustainable distributed power solutions for various

These demonstration projects by the private utility companies

required to be followed by those responsible utilities as a
mature role model [19] while implementing Smart Grid pilots in
their respective areas to leverage the benefits of the Smart Grid
technologies for up-scaling their distribution business, as well
as they can assess those detailed gap analysis on affected
domains, identify metrics for tracking effectiveness of Smart
Grid deployment, and periodic monitoring of progress through
objective evaluation of metrics and identifying relevant actions
by following SEIs Smart Grid Maturity Model (SGMM).




In TERI, we have envisaged some of the crucial policy

recommendations conducive to the accelerated deployment of
Smart Grid technologies in India are, i) Completion of on-going
programs which will lay the building blocks of Smart Grid such
as, System Strengthening, Consumer Indexing, GIS based Asset
Mapping as part of R-APDRP Scheme; ii) Deployment of
National Optical Fiber Network (NOFN) by connecting most of
the Gram Panchayats in the country by Optical Fiber Cable,
including the telecom link at the nearest 33/11 kV sub-station to
support Smart Grid in distribution for rural India; iii)
Development of Mini-Grids, Energy Storage Options, Virtual
Power Plants (VPP), Solar to Grid (PV2G), and Building to
Grid (B2G) technologies in order to manage peak demand,
optimally usage of installed capacity, and eliminate load
shedding and black-outs; iv) Policies for mandatory Rooftop
Solar PV generation for large establishments with connected
load more than 20 kW; v) Formulation of effective customer
outreach and communication programs for active involvement
of consumers in the Smart Grid implementation; vi)
Regulations for grid inter-connection of captive generation
through renewables, and policies for rooftop solar PV through
net-metering, feed-in tariff etc.; vii) Policies supporting
improved tariffs such as, dynamic tariffs, variable tariffs, time
of the day (ToD) tariffs, rule-based tariffs etc. including
demand response (DR) programs; viii) Development or,
adoption of appropriate standards for Smart Grid development
in India, and continuous engagement in evolution of applicable
standards relevant to the Indian context; ix) Study the results of
first set of Smart Grid pilot projects as per SGMM and
recommend appropriate changes conducive to Smart Grid
development in the Indian Electricity Act; x) Development of
business models to create alternate revenue streams by
leveraging the Smart Grid infrastructure to offer ancillary
services such as, security solutions, water metering, traffic
solutions etc. to municipalities, state governments and other
agencies; xi) Investment in Research and Development (R&D),
training and capacity building programs for creation of
adequate resource pools for developing and implementing
Smart Grid technologies in India as well as export of Smart
Grid know-how, products and services.


As an immediate way forward, there is a need for a strong

institutional framework that can drive Smart Grid development
in India. To begin with, ISGTF needs to be supported by the
permanent, independent members including industry experts in
respective areas on deputation from different entities, and with
the whole-time engagement of appropriate man-power who will

work exclusively for Smart Grid deployment in India. In order

to effectively implement the goals conceived in the Smart Grid
Vision and Roadmap for India, there should be unanimity in
launching a National Smart Grid Mission (NSGM) for India,
may be targeted by the end of 2014.

[1] Country statistical profile, OECD Factbook statistics: India 2013
[Online]. Available: (http://dx.doi.org/10.1787/csp-ind-table2013-1-en).
[2] Government of India, Central Electricity Authority [Online].
[3] Government of India, Central Electricity Authority [Online].
[4] Government of India, Central Electricity Authority [Online].
[5] Jawaharlal Nehru National Solar Mission, Phase II Policy
Document: Ministry of New and Renewable Energy, December
[6] Report on National Electric Mobility Mission Plan 2020.
[7] Policy Document: National Electric Mobility Mission Plan
(NEMMP) 2020, Ministry of Heavy Industries & Public
Enterprises, January 2013.
[8] Draft Smart Grid Vision and Roadmap for India [Online].
Available: (http://indiasmartgrid.org/en/knowledgecenter/Reports/Draft%20Smart%20Grid%20Vision%20and%20R
[9] Comparative Analysis of Smart Grid Pilots in India [Online].
Available: (http://indiasmartgrid.org/en/Pages/Projects.aspx).
[10] Detailed Project Report on Smart Grid at JVVNL, prepared by
[11] Detailed Project Report on Smart Grid at UHBVN, prepared by
[12] Detailed Project Report on Smart Grid at APDCL.
[13] Detailed Project Report on Smart Grid at CESCL.
[14] Detailed Project Report on Smart Grid at PED.
[15] ISGF Advanced Distribution; Addendum to R-APDRP Study
Report [Online]. Available:
[16] ISGF Advanced Distribution; R-APDRP Study Report [Online].
Available: (http://indiasmartgrid.org/en/knowledgecenter/Reports/ISGF%20Study%20Report%20on%20RAPDRP%2005%20June%202012.pdf).
[17] R-APDRP [Online]. Available: (http://www.apdrp.gov.in/).
[18] Infraline Plus Magazine: May, 2013 Issue.

[19] Smart Grid Maturity Model: SGMM Compass Assessment

Version 1.2, September 2011 [Online]. Available:
[20] IEA World Energy Outlook 2007: China and India insights
[Online]. Available:


Er. Alekhya Datta received B. Tech degree

in Electrical Engineering from West Bengal
University of Technology, Kolkata, India, in
2008 and MS degree in Geo-Informatics
from Symbiosis International University,
Pune, India, in 2010. In February 2010, he
has joined Solar Energy Centre, Ministry of New and
Renewable Energy (Government of India) as a Project Fellow
and was one of the key member for India Solar Resources
Assessment project in collaboration with National Renewable
Energy Laboratory, USA under Indo-US Energy Dialogue. In
November 2010, he then associated with WTI Advanced
Technology Limited (A 100% Subsidiary of TATA
Consultancy Services Limited) as an Assistant Systems
Engineer in GIS domain and has carried out several GIS based
projects for Qwest Telecom, USA as well as R-APDRP which
is a GIS based Electrical Assets Mapping project, initiative
taken by Ministry of Power (Government of India). Currently
he is working with TERI The Energy and Resources Institute
(formerly TATA Energy Research Institute) as a Research
Associate since March 2012. His research area includes GIS
and Renewable Energy Technologies, Distributed Generations,
Smart Grid including Micro-Grids, Smart Grid Training and
Workshops and Smart Controllers. He has also participated and
presented several papers in many national and international
conferences and is also serving as a Guest Faculty in several
institutional programs.

Dr. Parimita Mohanty (Fellow and Area

Convener: The Energy and Resources
Institute). She has a PhD degree from IIT,
Delhi on control strategies for distributed
generation based micro-grids. Currently Over
a span of more than one decade, she has a
vast experience in the areas of smart mini
grid and smart grid, solar PV based product design and
customization, battery storage, testing and assessment of
various RE products etc. She has been involved in feasibility
study, detailed designing and execution, project management
and commissioning as well as performance assessment of

various distributed generation based mini-grid projects. She has

more than 16 published papers in her credit, which were
published in reputed national and international journals. She is
also a member of various technical committees for standard
formulation and quality assurance aspect of solar photovoltaic.
She has initiated and plays the critical role in establishing
various solar PV based laboratories such as solar lighting lab,
battery testing lab, solar hybrid and smart controller lab etc.
She is currently responsible for strategic alliance with various
industry partners working in solar lighting, smart grid and smart
mini-grid domain. Along with her team, she is currently dealing
with more than 20 industry partners nationally as well as
internationally. She is also responsible for strategic linkages
with academic institutions and Universities for carrying out
advanced research on solar lighting and smart mini-grid. She
has handled over 15 projects as team leader or project manager
dealing with various aspects of renewable energy and
distributed generation such as technology development and
customization, product testing and approval, technology
adaption and technology transfer, monitoring and impact
assessment, project execution both nationally and
internationally. She has experience in working in various
countries such as India, Nepal, Bhutan, Myanmar, Thailand,
Indonesia, Philippines, Australia, Norway, The Netherland, etc.
She has more than 15 technical papers, published in reputed

national and international peer-reviewed journals, more than 15

invited and featured articles in various newspapers and
magazines and more than 5 patents applied for in her credit.
She is also the co-author of a book published by TERI on
Renewable Energy Technologies titled Renewable Energy
Engineering and Technology A Knowledge Compendium.
Er. Mukesh Gujar received B.E. degree in
Electrical Engineering from M.B.M
Engineering College (Jai Narayan Vyas
University), Jodhpur, India in 2008 and M.
Tech Degree in Power Electronics and
Control System from Indian Institute of
Technology, Kanpur, India, in 2010. In July
2011, he has joined Nirma Institute of
Technology, Ahmadabad as an Assistant Professor in Power
System and Power Electronics Department. Currently he is
working with TERI The Energy and Resources Institute
(formerly TATA Energy Research Institute) as a Research
Associate since April 2012. His research area includes Power
system and Power Electronics and Renewable Energy
Technology, Distributed Generations, Smart Grid including
Micro/Mini-Grids and Smart Controller. He has also
participated in many national and international conferences.