Smart Grid Vision for India’s Power Sector
 

Government of India has been struggling with last mile connectivity between villages and the state run electricity grids. Even large distribution companies have very low penetration in this market on account of power shortages and relatively higher costs and associated risks of servicing rural consumers.

Given the nature of renewable technology, generating electricity ‘off-the-grid’ and in a decentralised manner is an attractive option. Some of the nascent developments that have taken place in the renewable energy space in India are categorised into three segments:

In the first segment, large grid connected power plants are established and all of the electricity produced is fed into state-run utility grids (which may or may not service rural areas).

The second segment consists of hand-held portable devices such as solar lamps or very small solar power stations – both of which are meant for domestic use by individuals.

The third and perhaps largest segment of the market is that of rural customers who need utility grade power. There is no active player in the rural electricity market who can cater to the entire spectrum of emerging needs of the rural customers. Decentralised generation and distribution of power through smart micro grids is possibly the most viable way to serve the needs of such consumers. The future lies in decentralised renewable energy based mini-grids.

India in recent years has seen tremendous growth and potential for solar based energy generation. Solar technology has been identified as one of the most promising decentralised energy applications having significant potential to reduce emissions at the generation end. Solar based energy generation is now being accorded as an application that can help off grid rural areas and micro scale industries in reducing their dependence on the grid.

Conventional power stations in the present scenario of energy generation are centralised and often require electricity to be transmitted over long distances. In comparison, renewable energy based systems are decentralised, modular and more flexible. Located close to the villages, they typically serve with a capacity ranging from 30 KwH to 100 KwH.

Micro discoms / utility businesses can actually cater to energy demand with all the latest load monitoring gadgets to help the individual customers create and establish his / her specific load demand with supply at preferred hours and thus pay only for use and not the ancestral and established KW/hr rate system. Frankly speaking the ancestral system has actually spoilt the consumer habits and led to misuse of energy supply at the premises, whereas a decentralised micro grid is a localised grouping of electricity generation, energy storage and loads that normally operate connected to a traditional centralised grid (macro grid) which can be disconnected and thus the micro grid can function autonomously.

Reality Check

Generation and loads in a micro grid are usually interconnected at low voltage. From the point of view of the grid operator, a connected micro grid can be controlled as if it were one entity. Use of renewable energy sources such as small hydro, biomass, biogas, solar power, wind power and geothermal power play an important role for the energy supply through micro grid distribution system and can resolve the short comings of distribution network over long distances and make the local community more responsible with availability of power at the required hours and payment for the same as per demand and usage. The system has its own short comings and integration problems. Solar PV and wind power both have intermittent and unpredictable generation, so they create many stability issues for voltage and frequency. However, this issue can be resolved by integrating with intelligent hybrid inverters.

Vision is the Need

The adaptation of the smart grid vision to the Indian context offers the potential to revolutionise electricity supply and increase the probability of achieving the Government of India’s electricity sector goals sooner and more effectively. High pitch voices being raised at the national and international platforms for deep rooted concern on environmental challenges have added to the urgency of finding a sustainable, high-growth, low carbon economic model. The design of a sustainable smart grid model can also provide a blueprint for developing nations across the world.

Practical Application Demonstrated

The smart grid is not a simple formula or template. It is as much a vision as a blueprint. In its broadest interpretation, the smart grid vision sees the electric supply industry actually transformed by the introduction of two-way communications and ubiquitous metering and measurement. It enables much finer control of energy flows to the end user integrating the processes that have not been practicable to date. It also creates more reliable, more robust and more secure electrical infrastructure.

TARA Micro-Utilities Pvt. Ltd. (TMPL)1 (erstwhile TARAurja)

Access to clean and green energy for the rural market has been at the forefront for the Development Alternatives (DA) group and its social enterprise wing – TARA. TARAurja was formally operationalised in 2013 as an operational business unit, incubated within TARA for the deployment and management of renewable energy based mini-grids. TARAurja now known as TMPL has in the last few months ramped up operations across Bihar and UP. The team has set up a total of 21 micro-grids across these two states and is currently servicing more than 1,500 consumers.

Smart Grid Technology - Our Competitive Advantage

TMPL has developed intelligent hardware devices and software that allow it to monitor and control electricity in individual households remotely through cloud technology. This helps by ensuring timely revenue collection and in the prevention of theft of electricity along the distribution line.

TMPL’s target segment are people who require reliable power for Time-of-Use (TOU). TMPL has thus impacted lives of the consumers, who are benefitting from the consumption of power at much economical rates. The beneficiaries now have access to guaranteed power for a minimum number of hours per day. This has enabled shopkeepers to have longer operation hours and households are at last self-reliant and no longer need to burn midnight kerosene oil. In addition to the immediate savings for households in terms of kerosene bills and other power backup options, they are no longer subjected to harmful fumes produced from burning kerosene.

TMPL visualises having 300 such mini-grids up and running by the end of 2018 with an average annual revenue of INR 274,000,000 (or $4.5 Million). These mini-grids will be servicing an anticipated 60,000 consumers through a network of franchised operators. q

Dr Utparn Dubey
udubey@devalt.org

Endnotes
1 TMPL will enter a village through its primary line of business i.e. electricity services and will soon start offering its consumer base access to broad-band like speeds through Wi-Fi, followed by clean drinking water and other allied services.

 

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