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Smart Grid Concepts

Dr S N Saxena
Why Smart Grid?
• There is continuous increase in electrical power
consumption by industrial, commercial and
residential consumers. To meet the increasing
demand, large capacity generating stations and
corresponding new transmission & distribution
systems are required to be set up.
• But, because of the problems being faced in land
acquisitions and environmental issues, the
installation of new large capacity power stations
(thermal, large hydro or nuclear) and new EHV & HV
lines is becoming more & more difficult, requiring
authorities to think about the alternatives.
Why Smart Grid?
• The EHV transmission systems are already well-
equipped with sophisticated controls and monitoring
systems (can be called “Smart”), and can be made
“Smarter” using the technologies which are already
available and have been implemented in the other
• The advanced technologies are also being applied at
the level of generating sub-stations and other
sending-end & receiving-end sub-stations, that are
connected to EHV & HV transmission system.
Why Smart Grid?
• On the distribution lines, feeders, or at the
consumers’ premises, application of advanced
technology is practically negligible.
• Therefore, the distribution systems are in problem
today to meet the challenges.
• In many situations today, supply authorities are not
being able to meet growing demand of power by
consumers, especially at peak times, resulting in poor
power quality and many times power cuts. Hence,
there has been necessity to improve the capabilities
of the distribution systems to provide reliable &
quality power to consumers. What is to be done???
What is a Smart Grid?
• As given by National Smart Grid Mission (NSGM)
India: “A smart grid is an electrical grid with
automation, communication and IT systems, that can
monitor power flows from points of generation to
points of consumption (sometimes even down to
appliances level) and control power flow or curtail
load to match generation on real-time basis. It
involves two-way communication among generating
units, control centres of distribution utilities and
What is a Smart Grid?
• As given by NSGM, the smart grid enables increased
predictability & control of generation and demand
through consumer involvement, thus bringing
flexibility in both generation and consumption,
enabling utility to better integrate intermittent RES
and reducing costs of peak power.

• “Smart Grid” concept was introduced by Power

System engineers to overcome the problems being
faced by the distribution systems.
Approaches under Smart Grid
• (1) “Demand-Side Management” (DSM), which
requires consumers to go for: (a) energy efficiency
(use of efficient equipment & efficient operation of
equipment), (b) energy conservation (use only when
& whatever energy required as per real necessity, &
avoiding wastage of energy), and (c) shifting of loads
from “peak hours” to “off-peak hours”.
• (2) Installation of ”Smart Meters”, which can give all
the information related to consumer’s equipment to
control centre and permit their control to have DSM.
This is an essential part to make the grid “Smart”.
Approaches under Smart Grid
• (3) “Application of ICT”: Other essential features of
“Smart Grid” include providing sensors at all critical
locations in grid and transmitting signals of sensed
quantities to the control centres for supervision and
to take the remedial measures (SCADA).
• (4) “Distributed Generation“: which involves use of
conventional (mini-micro hydro, gas turbine, diesel
gen) & RES; integration of RES with grid; forecasting
of RE generation; electric vehicles (EVs); plug-in
hybrid electric vehicles (PHEVs); integration of EVs &
PHEVs with grid; etc.
Approaches under Smart Grid
• (5) “Attempt to Reduce AT&C Losses”: Although all
the above attempts are to make the grid smart
through involvement of consumers, the distribution
authorities can also take many steps to reduce AT&C
losses, so that overall efficiency of system can be
How to make a Grid “Smart”?
(1) Demand-Side Management
Demand-Side Management
• “Demand-Side Management” (DSM) or “Energy
Demand Management” is selection, planning &
implementation of measures to have influence on
customer’s demand. Thus, DSM aims to modify
consumer’s demand of energy through various
methods, such as financial incentives, consumer
education and, if required, by remote control .
• DSM program can reduce energy costs for utilities,
and in the long term, it can limit requirement for
further generation capacity augmentation and
strengthening of T&D system.
Demand-Side Management
• Thus, goal of DSM is to encourage consumer to use
less energy, particularly during peak hours, or to shift
the time of energy use to off-peak times (such as
night time & week-ends). This approach is called
“Demand Response” (DR), which is an effort to create
additional capacity during peak hours, by involving
“consumers’ voluntary load/consumption curtailment
or adjustment during peak hours or when requested
by DISCOMs”.
• Peak demand management may not necessarily
decrease total energy consumption, but can reduce
need for investments in networks and / or power
plants for meeting peak demands.
Demand-Side Management
• Reducing consumer’s demand during peak hours and
thus avoiding installation of new facilities have great
effect. Considering overall efficiency from power
station to consumer, energy saved at consumer end
can avoid capacity addition by 3 to 4 times.
• The capital expenditure saved through DSM by
avoiding investments in power plants and EHV/HV
transmission system can be used for strengthening
the distribution system and for installation of
advanced metering at consumers’ premises.
Implementation of DSM
• Use of improved, intelligent equipment by
consumers: It is necessary for consumers to have
“improved” & “intelligent” equipment / devices in
their premises, so that devices can have their own
programmed operation or remote operation &
control by owner or distribution authority, with the
objective of “energy conservation”.
• Thus, emphasis is on reducing energy consumption
by some programmed operation. For ex: get
switched on only when required (lights/fans in lifts,
room lights/fans/ACs, street lights, etc).
Implementation of DSM
• Use of efficient equipment by consumers: To reduce
consumption, it is necessary for consumers to have
high efficiency equipment (for ex: use of 5-star air-
conditioners, induction heating, efficient lighting
etc). Higher efficiency devices are slightly costlier, but
due to energy saving over a period of time, pay-back
period (PBP) is only a few months or years.

Cost Low efficiency equipment

High efficiency equipment

Implementation of DSM
• Efficient operation of equipment by consumers:
Consumers must have efficient operation of the
equipment to reduce their power consumption.
• For ex, industries use large number of pumps, fans,
compressors etc driven by induction motors; mostly
run at constant speed and use inefficient mechanical
means (such as, damper, valve, throttle etc) to
reduce fluid flow to match the load. Instead, if
variable-speed drives (VSDs) are employed, then
same output can be obtained with reduced input at
lower speed, increasing efficiency of drive. (These
VSDs are already being used in power stations.)
Implementation of DSM
• For pumps, reduction of flow by throttle control
results in nearly same power input, due to losses in
throttle. However, with speed control, reduced flow
is obtained with reduced power input.

Reduction of flow by Reduction of flow by

throttle control speed control

Head Head
N1 N2 < N 1

Flow Flow
Demand-Side Management
• High efficiency & PF can be obtained if fixed speed
motors are operated at near their rated output. Also,
at design stage, for obtaining highest efficiency,
attempt must be made to have directly-driven pump
or fan, without using gear, chain, belt etc.

or PF 90%

Demand-Side Management
• Also, for obtaining increased efficiency, regular
maintenance of motors must be done; such as,
correct lubrication of bearings using appropriate
lubricating oil / grease, cleaning the heat transfer
surfaces, vents, ducts etc to have improved cooling,
giving lower motor temperature.
Demand-Side Management
• In order to obtain high efficiency in manufacturing
process using heating, the planning engineers must
design the process with electrical heating (resistance
heating, induction heating, dielectric heating,
infrared heating, electric arc heating, etc) instead of
heating with fuels (which make the process highly
inefficient, apart from creating pollution).
• Electric heating has additional advantages of giving
quick start & stop, uniform heating and possibility of
faster heating with precise control of heat.
How to make a Grid “Smart”?
(2) Installation of “Smart Meters”
Installation of Smart Meters
• Smart Meters: Improved meters were being installed
for past 30 years in large and medium scale industrial
consumers, and also recently in the premises of
newly-built small industrial and most of the modern
gated-community apartments.
• These meters provide the authorities with
information related to consumption pattern of all the
consumers. These meters provide information
related to: V, I, P, Q, PF, energy etc. Also, it can
provide graph of energy Vs time.
Installation of Smart Meters
• “Smart Meter” has communication facilities with all
the power equipment within the consumer’s
premises and also with the supplier’s control centre
of that area.
• Thus, with smart meter acting as a hub, modem or
server, the power equipment in house can be
controlled by consumer using mobile phone (either
from any place inside the house or from remote
location) or also by the distribution authorities.
Installation of Smart Meters
• This activity of smart grid involves installation of a
large number of smart meters. For new colonies or
industries, this may be an easy task. But, the problem
would arise when replacements are carried out for a
large number of consumers having old integrating
type of meters.
North and NW Delhi “Smart Grid” Project of Tata Power
• As reported in Feb 2017, Tata Power Distribution Ltd is
going to become the first Discom in India to set up
“Smart Grid” project in area of 510 sq.km of North and
North-West Delhi.
• Project will be implemented in partnership with
“Landis+Gyr”. The contract covers design, supply,
installation, testing, commissioning and AMC of a single
RF mesh best in class “Gridstream” network platform
that can support multiple applications, like AMI (Advance
Metering Infrastructure), DA (Distribution Automation),
ADR (Automated Demand Response), distributed energy
resources (solar), street light management, Grid
Substation Automation Solution (GSAS) back-up
North and NW Delhi “Smart Grid” Project of Tata Power

• It is proposed to supply “Smart Meters” to its

consumers free-of-cost in phased manner .
• 20 lakh electronic meters will be changed, that will
enable “two-way communication” with the
consumers. RF communication will allow integration
with current and future applications, like Advanced
Distribution Management System (ADMS), SCADA
and SAP, etc.
• This will help to monitor transformers and prevent
over-loading. It will also help faster outage detection
& restoration of service to consumers.
North and NW Delhi “Smart Grid” Project of Tata Power
Project Benefits:
• Better and effective management of increase in
electricity demand.
• Reduction in loss levels through a real-time check on
meter tampering.
• Assistance in accurate meter reading and enhanced
collection efficiency.
• Minimizing human intervention, resulting in lesser
human error and misuse of information.
• Renewable energy sources integration, such as wind
and solar generation.
• Online data acquisition and analysis for smart
Installation of Smart Meters
• Apart from providing facility of remote monitoring &
recording consumer’s energy details, smart meters
give following facilities to the authorities:
• (1) Remotely-controlled switch, by which authorities
can block supply when old owner vacates the
premises and can provide supply to new owner; can
do selective load shedding in premises when
network is over-loaded, so that complete tripping of
supply can be avoided.
• (2) Remote programming for authorities to load tariff
changes and “Time-of-Day” (TOD) tariff.
What is Time-of-Day Tariff ?
• “Time-of-Day” (TOD) or “Time-of-Use” (TOU) is a
tariff structure, in which different rates are applicable
for use of electricity at different time of the day.
• That is, the cost of using 1 kWh will be different in
morning, noon, evening and nights, as pre-declared
by the State Electricity Regulatory Commission
(SERC) for that financial year.
• This means, using appliances during certain period of
the time will be cheaper than using them during
other period.
What is Time-of-Day Tariff ?
• Depending upon the past data of energy
consumption available of the target consumers, SERC
divides 24-hour period in a day into: (a) “Normal
Period”, (b) “Peak Period”, and (c) “Off-peak Period”.
• There may be only one “Peak Period” during evening
(say 1800 hrs to 2200 hrs), or there may also be
second “Peak Period” during morning (say 0900 hrs
to 1200 hrs).
• The “Off-peak Period” is mostly in night (say 2200 hrs
to 0600 hrs).
Time-of-Day Tariff in India


2200 0600
What is Time-of-Day Tariff ?
• SERC of each state decides the electricity rates of
different customers during “Normal Period”.
• Then for certain class of customer (say “Industrial”),
SERC declares “Peak Period”, during which they will
be charged at higher rates, and also “Off-peak
Period” to be charged at lower rates.
• The time period and rates could be different during
different months of the year (say one rate during
April to Oct and another rate during Nov to March ).
Time-of-Day Tariff in India
• Ex.(1) Maharashtra (Normal: Rs.7.13/kWh)
• (Normal) 0600 to 0900 hrs : Normal charges
• (Peak) 0900 to 1200 hrs : Extra (+) Re.0.80/kWh
• (Normal) 1200 to 1800 hrs : Normal charges
• (Peak) 1800 to 2200 hrs : Extra (+) Re.1.10/kWh
• (Off-peak) 2200 to 0600 hrs : Rebate (-) Re.1.50/kWh
Time-of-Day Tariff in India
• Ex.(2) Chhattisgarh
• (Normal) 0500 to 1800 hours : Normal kWh rate
• (Peak) 1800 to 2300 hours : 130% of the normal
• (Off-peak) 2300 to 0500 hours : 85% of the normal

• Ex.(3) Bihar
• (Normal) 0500 to 1700 hours : Normal kWh rate
• (Peak) 1700 to 2300 hours : 120% of the normal
• (Off-peak) 2300 to 0500 hours : 90% of the normal
Time-of-Day Tariff in India
• Ex.(4) Assam
• (Normal) 0600 to 1700 hrs : Rs.3.85/kWh
• (Peak) 1700 to 2200 hrs : Rs.5.30/kWh (138%)
• (Off-peak) 2200 to 0600 hrs : Rs.3.35/kWh (87%)
• Ex.(5) Karnataka
• (Normal) 0600 to 1800 hrs : Normal charges
• (Peak) 1800 to 2200 hrs : Extra (+) Re.0.80/kWh
• (Off-peak) 2200 to 0600 hrs : Rebate (-) Re.0.80/kWh
Time-of-Day Tariff in India
• Ex.(6) Jharkhand
• (Peak) 0600 to 1000 hours : Rs.4.60/kWh (128%)
• (Normal) 1000 to 1800 hours : Rs.3.60/kWh
• (Peak) 1800 to 2200 hours : Rs.4.60/kWh (128%)
• (Normal) 2200 to 0600 hours : Rs.3.60/kWh
Time-of-Day Tariff in India
• Ex.(7) Himachal Pradesh
• Peak Hrs Summer 1900 to 2200 Hrs : Addl 100%
• Peak Hrs Winter 1830 to 2130 Hrs : Addl 100%
• Off-peak Hrs 2400 to 0600 Hrs : (-) Re.0.20/kWh
• Normal charges during other hours.
Time-of-Day Tariff in India
• The periods considered as peak hour, off-peak hour
and normal hour vary from state to state in India.
The energy rates are also widely different in different
states as decided by SERC for that financial year.
• In hilly states, such as, Himachal Pradesh,
Uttarakhand etc, each SERC has given “Seasonal
Tariff”, giving different time periods for summer
(April to Oct) and winter (Nov to March).
• Most of the states have specified TOD tariff only for
HT Industrial and large Commercial consumers.
Benefits of TOD Tariff
• By introducing TOD Tariff and educating consumers
about it, it is expected that consumers would shift
some of their possible loads to off-peak hours.
• For ex, the loads could be: charging of batteries of
electric vehicles, pumping of water to overhead
tanks, use of washing machines, etc.
How to make a Grid “Smart”?
(3) Application of ICT
Information & Communication Technology
• Integrated and automated communication among
components of distribution network: The “two-way
communication” is the most important part of
“Smart Grid”, so that based on on-line data received
by distribution authorities about present status at
different points in network, they can take
appropriate actions for giving required power flow
and quality supply to all consumers.
• Further, using available mathematical tools &
software and diagnostics, supplier can estimate the
future behaviour of system and take appropriate
advance actions before abnormal operation of any
equipment occurs.
Information & Communication Technology
• Information Technology (IT) includes all technologies
that are used to collect, process, protect & store
information. It relates to hardware, software and
computer networks.
• Information & Communication Technology (ICT)
involves transfer or communication & use of all types
of information.
• For acquisition, supervision and control of all the
data collected from different equipment in grid and
consumers’ meters, SCADA (Supervisory Control &
Data Acquisition) can be employed.
• Supervisory control and data acquisition (SCADA) is a
system of software and hardware elements, that is
used in a distribution network for the following:
• (a) Collect real-time data of different devices and
transmit the data to control centre for supervision
and performing the desired operation.
• (b) Control the operation of devices locally and also
at remote locations (at control rooms of sub-stations
or at central control centre). Display on-line situation
in the system (“Human-Machine Interface” HMI).
• (c) Record or log the events for future planning.
• SCADA concept was developed as a universal means
of remote access to a variety of local control
modules, which could be from different
manufacturers allowing access through standard
automation protocols.
• It can control a large number of devices that can
include multiple sites, and work over large distances.
It is one of the most commonly-used types of control
Functionality Levels in SCADA
With CEO

In Control

In s/s


• Level 0 contains intelligent field devices, such as
temperature, voltage/current sensors, and final
control elements, such as switches.
• Level 1 contains industrialized input / output (I/O)
modules, and their associated distributed electronic
processors, such as programmable logic controllers
(PLCs). These are connected to intelligent
sensors/actuators in equipment, and are networked
to supervisory system in Level 2. PLCs are
economical, versatile, flexible and configurable.
• Level 2 contains the supervisory computers, which
collate information from processor nodes on system,
and provide the operator control screens. It contains
SCADA software and computing platform. SCADA
software exists only at this supervisory level as
control actions are performed automatically by PLCs.
• SCADA control functions in Level 2 are usually
restricted to basic overriding or supervisory level
intervention. For ex, a PLC may control current of a
device to a set point level, but SCADA system
software will allow operators at Level 2 to change set
• The SCADA also enables alarm conditions, such as
high temperature, high current etc, to be displayed
and recorded. A feedback control loop is directly
controlled by PLC, but SCADA software monitors
overall performance of loop.
• Level 3 is the control centre, which does not directly
control the device, but is concerned with monitoring
status of system.
• Level 4 is the power scheduling level.
• Levels 3 and 4 are not strictly device control in the
traditional sense, but are where overall power flow
control and scheduling takes place.
• Data acquisition begins by PLCs (at Level 1) and
includes instrumentation readings and equipment
status reports, that are communicated to Level 2 as
required. Data is then compiled and formatted in
such a way that a control room operator using HMI
(Human Machine Interface) can make supervisory
decisions to adjust or override normal PLC controls.
• Human-machine interface (HMI) is operator window
of supervisory system. It presents plant information
to operating personnel graphically in form of mimic
diagrams, which are a schematic representation of
plant being controlled, and alarm & event logging
• HMI is linked to SCADA supervisory computer to
provide live data to drive mimic diagrams, alarm
displays & trending graphs. In many installations,
HMI is graphical user interface (GUI) for operator,
collects all data from external devices, creates
reports, performs alarming, sends notifications, etc.
• Mimic diagrams consist of line graphics & schematic
symbols to represent process elements, or may
consist of digital photographs of process equipment
with animated symbols.
• Supervisory operation of plant (at Level 2) is by
means of HMI, with operators issuing commands
using mouse pointers, keyboards & touch screens.
For ex, symbol of pump can show operator that
pump is running, and flow meter symbol can show
flow rate. Operator can switch pump off from mimic
by a mouse click or screen touch. HMI will show flow
rate of fluid in pipe decrease in real time.
Application of SCADA in Distribution
• The SCADA can be applied to “Smart” distribution
system for “data acquisition” of quantities from a
large number of distribution transformers, feeders,
circuit breakers, consumers’ meters etc and for
“supervisory control” at the control centre.
• The main purpose is to monitor a large number of
data to control the power flow on various feeders
under normal conditions, and also to take decisions
in case of faults or interruption of power on any
section so as to continue to provide power to the
remaining system.
Application of SCADA in Distribution
• This requires providing a large number of intelligent
sensors (voltage, current, temperature etc) on
distribution transformers, feeders, circuit breakers,
etc, and communication system for transmission of
these signals to control centre.
• Another associated activity is installation of a large
number of fast-acting switches, so that faulty section
can be removed at the earliest and supply can be
continued to the other areas.
• The above requires a huge investment in distribution
How to make a Grid “Smart”?
(4) Distributed Generation
Distributed Generation
• Increased Application of “Distributed Generation”:
To reduce power flow & losses in the T&D network, it
is necessary to go for “distributed generation”
using small capacity (< 50 MW) conventional or RE
• Some RE power plants (> 50 MW) are connected
directly at the transmission system level (132 kV or
66 kV), such as large PV Power, or large Solar Power,
or large Wind Farms. The small plants (< 50 MW) will
be integrated into distribution systems. These last
generation units (for ex. roof-top PV) are referred to
as a part of “distributed generation”.
Distributed Generation
• Distribution (or “Micro”) grids are at the forefront of
Smart Grid development to allow added value to be
provided to all users who are connected to it.
• This would permit more localized operation & control
of power in distribution network feeding the local
• Further, if consumer has his own RE generation
(becomes a “producer” + “consumer” = “prosumer”),
then consumer can choose his generation, or even
supplier (with communication facility with
consumer’s generation) can have remote operation
& control of consumer’s generating power, and feed
extra power to grid.
Distributed Generation
• Further, the expected development of the “Plug-in
Hybrid Electric Vehicle” (PHEV), with its charging
characteristics and storage possibilities, will give
more flexibility to the consumer.
• Battery bank of electric vehicle can be used as a
generating source of distributed generation, called as
“Vehicle-to-Grid” (V2G) supply. It can supply power
to grid during peak hours in morning or evening; and
can be charged in 6-8 hours either using energy from
grid during off-peak hours in mid-night or from
owner’s solar PV during day time.
Distributed Generation
• For ex: e-busses of schools (when not in use from
9AM to 3 PM) or of Road Transport Corporations
(when not being used during their idle time, e.g.
11AM to 3 PM) can be connected (V2G) to
distribution grid, who can use the battery supply
during peak-hours of load of that area during this
period. The batteries can be charged in 6-8 hours
during night time in off-peak hours of TOD tariff.
Distributed Generation
• For ex, RENAULT EV has 22 kWh lithium-ion battery
and can supply the domestic load of 2000 W (of
lights, fans, TV, fridge etc) for more than 10 hours.
• 100 such EVs in a campus have capacity of 2200 kWh
and can supply load “on demand” of 1 MW for 2 hrs.
There is no start-up time for this type of source.
• Owner of PHEV can use vehicle for transportation
when desired by sending “NO” SMS to the
distribution authorities. But, when PHEV is not in
use, owner can send “YES” SMS to distribution
authorities, so that, using communication link, they
can do remote operation of battery controller to get
desired output from PHEV.
Distributed Generation
• Another important part of distributed generation is
“Storage” (other than EVs). Among all storage
systems, pumped storage hydro plant offers the best
solution; this plant has water storage reservoirs at
up-stream & down-stream sides of power plant.
• When there is requirement of power in network,
pumped storage plant generates electrical power by
flow of water from up-stream reservoir into hydro
turbine. But, when extra energy is available (during
nights), hydraulic machine works as a pump and
sends water from down-stream reservoir back to up-
stream reservoir and stores water for future use.
How to make a Grid “Smart”?
(5) Reduction in AT&C Losses
AT&C Losses
• Energy losses occur in the process of supplying
electricity to consumers due to technical and
commercial reasons.
• The “Technical Losses” are due to energy dissipated
in the conductors, transformers and other
equipments used for transmission, transformation,
sub-transmission and distribution of power. These
technical losses are inherent in a system and must be
reduced as much as technically possible.
AT&C Losses
• Pilferage by hooking, by-passing meters, defective
meters, and errors in meter reading are the main
sources of the “Commercial Losses”.
• “Commercial Losses” added to “Technical Losses”
gives “T&D Losses”.
• There is another component of commercial losses,
which is attributable to non-recovery of the billed
amount, which is reflected in “Collection Losses”.
• “T&D Losses” together with “Collection Losses” gives
“Aggregate Technical & Commercial (AT&C) Losses”.
Reduction of Technical Losses
• Network reconfiguration: Construction of more
numbers of HV distribution lines, as and where they
are techno-commercially feasible, can give reduction
in line copper losses due to reduction in line current.
It gives an option to handle the increased demand
and to increase system reliability.
• PF improvement: By installation of automatic PF
controller (distribution STATCOM or SVC) at different
locations in system to bring PF close to 1.0 can give
reduction in line current and line copper losses.
• Regulating voltage in distribution circuit by automatic
voltage booster
Reduction of Technical Losses
• Balancing load in three phase distribution: can give
reduced losses.
• Use of improved transformer design with reduced
• Periodic maintenance of distribution system can give
loss reduction.
• Use of underground cable: can give better reliability
and can also avoid power theft.
Steps Required to Make Grid “Smart”
• In case of a new industry, township or colony, the
authorities can plan to make that grid “smart” right
from inception.
• But, for a large number of existing industries,
townships, or colonies, the consumers or supply
authorities have to incorporate the new technologies
(in equipment and in information & communication),
so that there is two-way communication among the
existing distribution system, the existing consumers,
and the control centres; with the main objective of
reduction of consumers’ demand during peak hours
of the distribution system.
Steps Required to Make Grid “Smart”
• Transition from present day grid to smart grid is not a
one time activity. Because of enormous funds
required to incorporate even the minimum essential
items in distribution network (sensors, meters and
communication system at a large number of
transformers, feeders, consumers etc), and
involvement of consumers in demand-side
management, the up-gradation will be gradual and
has to be implemented in step-by-step manner.
• But benefits of improvements will be visible even at
incremental up-gradation stages.
Steps Required to Make Grid “Smart”
• Due to on-line monitoring of transformers, feeders
etc, there will be reduced number of faults; and also
the recovery after the system fault will be quicker.
• The above will result in more reliable and quality
power to consumers. Also, installation of PV power
will reduce energy bill of consumers; and availability
of PV power during day time will help distribution
utilities in supplying power to more consumers.
• Further, TOD tariff will induce some of major
consumers to shift some of their loads from peak
period to off-peak period, giving reduction in peak
demand for distribution authorities.
Steps Required to Make Grid “Smart”
• With the expected benefits in mind, Government of
India started thinking about implementing smart
grids in India.
• As a first step, Government started National Smart
Grid Mission (NSGM) under Ministry of Power.
• As the funds required for implementing smart grid in
India will be enormous, Government took up 17
“Pilot Projects” in various parts of India.
Background of NSGM in India
• A Smart Grid Vision and Roadmap for India was
approved by Ministry of Power in August 2013,
under which National Smart Grid Mission (NSGM)
was launched in March 2015. It has its own
resources, authority, functional & financial autonomy
to plan and monitor implementation of the policies
and programmes for smart grid.
• It was noted that Smart Grid is a dynamic and
evolving concept due to constant technological
innovations. Therefore, the objectives, structure and
functioning of NSGM must be such as to allow
sufficient freedom and flexibility of operations
without needing to refer the matter to different
Ministries / Agencies frequently.
Background of NSGM in India
• NSGM has functional and financial autonomy within
overall budgetary allocation for meeting its objective
of rolling out Smart Grid operations in country.
• NSGM has NSGM Project Management Unit (NPMU),
headed by the Director NPMU (presently, Shri Arun
Kumar Mishra), and supported by 5 exec of
Powergrid & 1 from PFC. NPMU is the implementing
agency for operationalizing the Smart Grid activities.
• NPMU Secretariat is housed at Powergrid. Services of
Energy Efficiency Services Limited (EESL), which is a JV of
NTPC, PFC, REC & Powergrid, will also be utilized for
Smart Grid projects. 17 “Pilot Projects” were taken up.
Smart Grid Pilot Projects in India
(under National Smart Grid Mission)
(1) VV Mohalla, Mysore
• Project involves 21,824 consumers with a good mix
of residential, commercial, industrial and agricultural
consumers, including 512 irrigation pump sets
covering over 14 feeders and 473 distribution
transformers and accounting for input energy of
151.89 MU. Additional functionality, like Agriculture
DSM with community portal, consumer portal to
support DSM/DR, data analytics for decision support,
etc, are also proposed.
• Evaluated Project Cost: Rs.32.56 Cr;
MoP Share: Rs.16.28 Cr.
(2) Satguru Feeder, Ajmer City
• Test pilot for implementation of AMI with co-
existence of smart meters and over-the-top module
retrofitted meters for approx 1000 consumers.
• Benefits: (1) Coexistence of meters from different
vendors. (2) Reduction in AT&C Losses. (3) Better
energy audit.
• Total Cost of Project: Invested by USAID, supported
by NSGM.
(3) Guwahati Distribution Region, Assam
• The pilot project covers 15,000 consumers involving
90MUs of input energy. Under RAPDRP Part-A,
SCADA / DMS is also being implemented which shall
be utilized as basis infra for Smart Grid development.
Distributed Energy Integration (solar and available
DG back-up) is also considered for the pilot project.
• Functionalities: Advanced Metering Infrastructure;
Peak Load Management; Outage Management;
Distributed Generation.
• Total Cost of Project: Rs.29.86 Cr; MoP Share:
Rs.10.46 Cr; Funding Programme: IPDS
(4) Kala Amb Industrial Area, HP
• The project area covers a base of 1,251 consumers,
dominated by HT consumers with a peak demand of
97MW. High end power quality meters are also being
installed at HT consumers for capturing power
quality data remotely for identifying decision on
corrective actions in collaboration with consumers.
• Functionalities: Advanced Metering Infrastructure;
Peak Load Management; Outage Management;
Power Quality Measurement.
• Project Cost: Rs.19.45 Cr; MoP Share: Rs.9.73 Cr;
Funding programme: IPDS.
(5) Division No.1, Puducherry
• The project proposes covering 34,000 no. of
consumers, dominantly domestic consumers. The
proposed project area is also covered for IT
implementation and system strengthening. Common
Meter Data Management System is proposed to be
developed that shall take data from MDMS of
different meter manufacturer/solution provider and
integrate the information for use with Time-of-Use
and Net Metering tariffs.
• Functionalities: Advanced Metering Infrastructure.
• Project Cost: Rs.35.53 Cr; MoP Share: Rs.17.76 Cr;
Funding Programme: IPDS.
(6) Tech-II, Sub-Div, SAS Nagar, PSPCL, Punjab
• The proposed project area has 2,737 no. of
consumers, predominantly domestic consumers with
an overall consumption of 112.8 MUs per annum.
Unrestricted Peak demand is about 30 MW.
• Functionalities: Advanced Metering Infrastructure.
Peak Load management.
• Project Cost: Rs.7.16 Cr; MoP Share: Rs.3.58 Cr;
Funding Programme: IPDS.
(7) Electrical Div No.1, Agartala, Tripura
• The pilot project covers 45,290 no. of consumers.
The proposed project area is covered under RAPDRP
Scheme for IT implementation and system
strengthening. Time of Use models and Net Metering
tariff mechanisms were also proposed for adoption.
• Functionalities: Advanced Metering Infrastructure;
Peak Load Management.
• Project Cost: Rs.62.43 Cr; MoP Share: Rs.31.72 Cr;
Funding Programme: IPDS.
(8) Jeedimetla Industrial Area, Hyderabad
• The proposed project area covers 11,904 consumers
for Smart Meters installations. The project area is
covered under for DAS, IT and SCADA
• Functionalities: Advanced Metering Infrastructure;
Peak Load Management; Outage Management;
Power Quality Measurement.
• Project Cost: Rs.34.93 Cr; MoP Share: Rs.17.47 Cr;
Funding Programme: IPDS.
(9) Panipat City Sub-Div, UHBVN, Punjab
• The pilot project covers 11,000 consumers with
70MU input energy consumption. The proposed
project area is covered under RAPDRP Scheme for IT
implementation and system strengthening.
• Functionalities: (1) Advanced Metering
Infrastructure. (2) Peak Load Management. (3)
Outage Management
• Total Cost of Project: Under Grant from NEDO, Japan;
MoP Share: Nil
(10) Naroda of Sabarmati Circle, UGVCL, Gujarat
• The pilot project proposes covering 22,230
consumers in Naroda.
• Functionalities: Advanced Metering Infrastructure;
Peak Load Management; Outage Management.
• Project Cost: Rs.82.7 Cr; MoP Share: Rs.41.35 Cr;
Funding Programme: IPDS.
(11) WBSEDCL, West Bengal
• The proposed project area had 5,265 consumers with
two no. of 11 kV feeders and 46 DTs. The overall
consumption of around 7.46 MUs per annum.
• Functionalities: Advanced Metering Infrastructure;
Peak Load Management.
• Project Cost: Rs.7.03 Cr; MoP Share: Rs.3.52 Cr;
Funding Programme: IPDS.
(12) IIT Kanpur
• The project aims to develop a Smart City prototype and
R&D platform for smart distribution systems and
demonstrates the future capabilities of a Smart City. The
project area includes three substations for implementing
substation automation, residential flats for smart home
system implementation. Grid connected solar PV will also
be installed for RE integration.
• Functionalities: (1) Advanced Metering Infrastructure; (2)
Smart City Control Center; (3) Smart Homes; (4)
Advanced IT Infrastructure; (5) Renewable Integration
• Project Cost: Rs.12.5 Cr; MoP Share: Rs.6.25 Cr; Funding
Programme: IPDS.
(13) Sub-Div No.5, CED, Chandigarh
• Project covers about 30,000 consumers with a good
mix of residential and commercial consumers. The
area was not covered under RAPDRP scheme of GoI.
SCADA is also considered for implementation.
• Functionalities: Advanced Metering Infrastructure;
Substation Automation including SCADA; Integration
of Rooftop Solar; Distribution Transformer
• Project Cost: Rs.28.58 Cr; NSGM Share: Rs.8.574 Cr;
Funding Programme: NSGM.
(14) Amravati Town, MSEDCL
• Project involves about 1,48,000 consumers with a
good mix of domestic, commercial, and industrial
sections covering the entire city with a peak demand
of 105 MW and losses of 23.3% on average.
• Functionalities: Advanced Metering Infrastructure;
Outage Management; Demand Response.
• Project Cost: Rs.99.05 Cr; NSGM Share: Rs.27.02 Cr;
Funding Programme: Grant under NSGM.
(15) MSEDCL, Congress Nagar, Maharashtra
• Project covers about 1,25,000 consumers with good
mix of residential, commercial and industrial
consumers. Congress Nagar division is under
MSEDCL, while other divisions are with private
• Functionalities: Advanced Metering Infrastructure;
Outage Management; Demand Response; SCADA.
• Project Cost: Rs.139.15 Cr; NSGM Share: Rs.41.75 Cr;
Funding Programme: Grant under NSGM.
(16) KESCO, Kanpur City
• Project involves about 5,39,000 consumers with a
good mix of residential, industrial and commercial
segments all over the city with a peak demand of
• Functionalities: Advanced Metering Infrastructure;
Outage Management; Distribution Transformer
Monitoring; Distributed Generation Integration .
• Project Cost: Rs.319.57 Cr; NSGM Share: Rs.95.87 Cr;
Funding Programme: Grant under NSGM.
S Estimated Support for
Activity Cost
Budgetary 12th Plan (Rs.cr)
No support 2014 2015 2016
-15 -16 -17

A. Dev of SG in Smart Cities Rs. 890 cr Rs.267 cr 1 155 111

B. Devt of Micro Grids Rs. 27 cr Rs.8 cr 1 4 3

Training & Capacity Building
C. (Funding for SGKC etc)
Rs. 8 cr Rs.8 cr 1 4 3

Consumer Engagement
Rs. 30 cr
(20 lakhs p.a.
D. (Funding to State-Owned
for each
Rs.30 cr 2 13 15
Discoms ~60)

E. NSGM Establishment, O&M Rs. 25 cr Rs.25 cr 5 10 10

Total Outlay Rs. 980 cr Rs.338 cr 10 186 142
Benefits Expected from Pilot Smart Grid Projects
• Reduced AT&C loss.
• Reduced peak load consumption.
• Improved management of power procurement
options (reduction in purchase of high cost power at
peak hours).
• Possibility of unscheduled power interchange using
Short Term Load Forecasts.
• Reduction in interest payments due to deferred
capital investment in sub-transmission networks.
Benefits Expected from Smart Grid Projects
• Experience of comparing meters from different
• Better energy audit.
• Revenue increase through Power Quality
measurements and power factor penalty.
• Development of Smart Home Management Systems.
• Reduced cost of billing (reduction in meter reading
cost) and increase in collection efficiency.
Benefits Expected from Smart Grid Projects
• Development of Smart City R&D Platform.
• Development of Substation Automation.
• Roof-top Solar PV Integration.
• Reduction in transformer failure rate.
• Reduction in number of outages.
• Improvement in availability of power to consumers
Thank You