The most ambitious smart grid initiatives appear to be those underway in China and the US, where smart grids are seen as a way to reduce energy consumption, increase the efficiency of the electricity network, and manage electricity generation from renewable technologies. Japan and Korea also have significant and long-term plans wherein incorporating solar power generation and national smart metering initiatives are the defining foundations. In Spain, Germany, the United Kingdom and France, too, there are smart grid initiatives with focused objectives that started as early as 2008, and in later years up to 2012. Some of these have started demonstrating limited sets of outcomes.
Australia also announced a 'Smart Grid, Smart City' initiative in 2009 to deliver a commercial-scale smart grid demonstration project. Additional initiatives are now on for achieving renewable energy deployment.
Smart grids typically consist of parts like advance metering infrastructure (AMI), demand response, distributed generation, home area network and communication. Globally, significant investments have been committed and made in these areas to make grids smart, robust, and adaptable to changing demands. Some of the components of smart grid infrastructure are still under development. As per the International Energy Agency (IEA), the components that have reached maturity stage are information and communications technology (ICT) integration, transmission enhancement applications, and AMI. Others such as wide-area monitoring and control, distribution management, and renewable and distributed generation integration are still developing at different paces.
Global investment in smart grid infrastructure has increased from an estimated $67 billion in 2009 to nearly $200 billion in 2015. During this period, the highest increase in the quantum of investment was registered in sensors and electrical components, followed by IT hardware and software. Communication systems and smart metres have shown a lower increase, possibly because these components of the smart grid infrastructure were already at a more evolved stage.
The India Story
India, too, is riding the trend. The Ministry of Power (MoP) leads the smart grid programme through its National Smart Grid Mission (NSGM). The government has committed a total outlay of Rs 980 crore with a budgetary support of around Rs 338 crore in the 12th plan period. MoP has allocated more than 90 per cent of its outlay in development of smart grids in the smart cities.
NSGM will broadly cover deployment of AMI, sub-station renovation and modernisation, distributed generation in terms of solar PV, monitoring and control of distribution transformers, including electrical vehicle (EV) charging infrastructure. It shall also supplement the other programmes run by MoP like Restructured Accelerated Power Development and Reforms Programme (R-APDRP) and Integrated Power Development Scheme (IPDS).
Currently, 14 smart grid pilot projects spread across the country are under implementation under the aegis of NSGM. Projects worth `640 crore have already been awarded under the active consultation of Power Grid Corporation of India (the national power carrier) and Central Power Research Institute. These pilot projects are being developed for around 450,000 consumers of the identified region with the intended functionalities like advance metering infrastructure, demand response, developing charging infrastructure for electrical vehicles, etc.
Undoubtedly, there is considerable development in the implementation of smart grid functionalities - for instance, more than 80 per cent advance metres have been installed in Mysore, and an industrial area under HPSEB (Himachal Pradesh State Electricity Board). However, the desired output of reduction in the loss (AT&C), grid stability, and efficacy of all the functionalities will require more ground-level data.
It is desirable that states start identifying the project areas on their own, and roll out smart grids by integrating distributed generation, developing infra for EV charging (including promoting EV through suitable fiscal incentives), and demand response and differential tariff for ToD (time of day) consumption, for achieving faster and focused benefits.
The Indian experience is likely to be different from that of the US and European countries, which started smart grid programmes on fully endowed grids. Part of the objectives of the programme in India is to ensure that latent and unserved demand is met first. Efficiency gains will lead to avoidance of unnecessary investment, but that may be a secondary outcome that we are seeking. The countries where fully-endowed grid networks are in place are looking towards enhancing the citizens' experience, and smart grid programmes have tended to be a part of Smart City-related initiatives. In India, part of the objective is to provide the experience in the first place.
Therefore, smart grid-related investments are likely to be ramped up in the next three to five years, as the programmes will ride on trends in the distribution network roll-out, and the capacity of distribution companies to integrate distributed and renewable-based generation into their long-range planning exercises.
The other trend that will determine the pace of smart grid deployment would be the success of smart cities, other urban infrastructure planning, efficiency-related programmes, development of commercial models to bring in private investments, and social engineering initiatives. ~