India has made a timely move to adopt smart grid technologies in power transmission and distribution network to facilitate evacuation of electricity from grid and off-grid renewable generation sources. While the transmission sector looks well prepared, there are doubts about the ability of distribution utilities to absorb this new technology because of their poor financial health.
That apart, state-owned discoms also lack the required physical infrastructure and tech-savvy personnel, which are critical to absorbing the new technology.
With financial assistance available from the central government under the Restructured- APDRP scheme, state-owned utilities are implementing projects to strengthen their power distribution network. However, they are yet to focus on training their staff to make them ready for implementing the smart grid project.
The average aggregated technical and commercial (ATC) losses of distribution utilities in India is in the range of 30% compared to the global average of 10%. The Union power ministry had envisaged cutting down it to 15% by the end of the 10 th Plan. However, the target was badly missed.
By adopting smart grid technologies, state utilities can cut down on their losses, which should in turn help improve their financial health. Besides, this will also benefit consumers as they can better manage their electricity demand. ?In the Indian context, smart metering will be required for revenue protection and better demand side management,? says Sunil Singhvi, chairman, metering division, Indian Electrical and Electronics Manufacturers Association (IEEMA).
At the broader level, a reduction in discoms’ technical losses should lead to lower carbon emissions given that over 70% of India’s generation capacity is based on coal.
The good news is that the World Bank seems to be keen to finance smart grid projects in India. It is doing a study to ascertain the viability. However, if financial health of state of discoms continues to deteriorate, the multilateral lender might lose interest.
What is heartening is that India has adopted a structured approach towards implementation of this technology. The India Smart Grid Forum set up by the central government is mandated to look into all aspects of the project.
For example, a key item on the forum’s agenda is to coordinate with international standard-setting agencies like IEEE on formulation of technical standards for smart grid equipment. India’s participation in the exercise would ensure that its specific requirements are taken cognizance of while global standards for smart grid equipment are framed. That would help it absorb technological innovations in the filed.
?The participation of Indian professionals will ensure challenges and factors unique to India are considered in global standards development,? says Judy Gorman, managing director, IEEE Standards Association.
Smart grid is a new technology and its viability is yet to be established. Private distribution companies like NDPL and BSES have the resources and capability to implement smart grid projects. They are also involved in the process of standard-setting for smart grid equipment. It seems that they have done their cost-benefit analysis. But most state-owned utilities are still in a dilemma over this technology. The Centre needs to undertake a cost-benefit analysis of smart grid projects at its own level as cash-strapped states are unlikely to take initiatives in this direction.
Central transmission utility Power Grid is implementing pilot smart grid projects in the Western and Northern regions. ?If the projects are successful, they would be implemented in other regions as well,? a senior official in the CTU told FE. Apparently, the utility is fully prepared for the technological upgrade.
However, concerns remain about the preparedness of distribution companies to implement smart grid projects because of their weak network. ?Proper distribution infrastructure is a prerequisite for the success of a smart grid project,? Singhvi told FE.
Unless distribution utilities adopt the technology on a large scale, bringing down the manufacturing cost of smart grid equipment would be a serious challenge.
