Smart Grid Can Make India Megawatt Exporter

Salman Hameed, Santosh Kumar Varshney, Mohammad Saood

Electrical Engineering Department. ZH College of Engineering and Technology, Aligarh Muslim University, Aligarh 202001. UP (INDIA)

Abstract In India additional 100,000MW is required by 2012 with estimated cost of Rs 80,000 billion. The immediate available alternative solution is, using the available energy intelligently. Untapped wind and solar energy sources, which are abundant throughout India, can be connected and optimally integrated into the grid through the use of smart grid technologies. Smart grid is an auto-balancing, self-monitoring power grid that accepts power from any source of fuel -like oil, sun or wind and delivers electricity from suppliers to consumers. It helps to control appliances, to save energy, reduces cost and increase reliability and transparency at consumers homes. This paper describes the attributes of a smart grid and how these act as driving force to modernize the electrical power grid. Moreover the vast availability of renewable energy sources like solar and wind in India and advantages in utilizing these sources through smart grid technologies are advocated in this paper. Key WordsSmart Grid, Renewable Energy, Energy Survey of India, Wind Energy, Solar Energy, Bio Fuels.

I.

INTRODUCTION

Energy is essential to economic & social development for improving quality of life of the people. Access to energy is globally agreed as fundamental rights of all human beings. India today has a vast population of 1000 millions out of which 72.2 percent are living in rural areas. Energy sector has received top priority in all the five year plans so far. Installed capacity of electric power has increased from 1362MW at the time of independence in 1947 to 150000 MW in 2008. Despite such achievements the gap between demand and supply of electrical energy is increasing every year. The deficit in installed capacity was nearly 10000MW per year or a deficit of 52513 Million Units in 2005-06. In India at least 20% of villages (about 80 million household) are yet to be electrified. Recently, fossil fuels supply has become unpredictable/ unreliable due to numerous reasons: artificially manipulated production quota, pricing arrangements etc. Meanwhile, technological advances in information and

communications technology (ICT), metering and generation are key enablers. The climate change crisis is driving the need for an urgent reduction in carbon emissions and thus a much more efficient power sector. India has a high potential for renewable and is keenly interested in taking an active part in the development of new technologies for exploiting and utilizing renewable sources of energy. The most natural renewable energy sources which are freely available are wind and solar. The power in the earth's wind and in the solar radiation in India is sufficient to make significant as well as considered contributions to the India energy supply. Therefore, it is important to explore ways by which this power can be utilized not only for domestic use but for export as well. Smart grid technologies can play an important role in this regards. Smart grid is the convergence of information and operational technologies applied to the electric power grid allowing sustainable options to customers and improved security, reliability and efficiency to utilities. Developing smart grid technologies can help countries like India, where this technology has huge potential, to meet at least part of worlds growing energy demand with renewable energy sources. The variations in resource availability tend to limit any particular single renewable technology to specific locations and uses. The solution can be obtained by means of providing decentralized power with high reliability smart grid systems. These systems do not rely on a single energy source, but on more potential sources. These systems improve economy by creating more new, green jobs related to the renewable energy industry manufacturing, plug-in electric vehicles, solar panels and wind turbine generation and energy conservation constructions [1-2]. The traditional business model is troubled and implementation of a Smart Grid vision may facilitate a reinvention of the business. Investment in a smart grid today may enable India to leapfrog into a vastly improved electricity scenario. Even under a business-as-usual case, the Government of India will have to invest heavily in the power sector over the next two decades and beyond. Smart grid technologies could enable India to leapfrog into a much more advanced grid infrastructure and electricity market, and more quickly achieve parity with developed economies.

The aim of this paper is, assess how smart grid technologies can be utilized in India and what benefit can be desired by tapping these technologies along with the wide spread use of renewable energy sources.

II.

SMART GRID- AN OVERVIEW

The Smart Grid cant be reduced to a simple formula. The broadest interpretation sees the electric industry transformed by the introduction of two-way communications and ubiquitous metering and measurement. It will enable creation of more reliable, more efficient and more secure electrical infrastructure. Smart Grid is a terminology originally proposed by the European Technology Platform. The short definition of Smart Grid is, [5]: A Smart Grid is an electricity network that can intelligently integrate the action of all users connected to it generators, consumers and those that do both in order to efficiently deliver sustainable, economic and secure electricity supplies. A power grid generally transits power from a few central power generators to a large number of users. Smart grid technologies enable this grid to be capable of routing power in more optimal ways. The conditions, to which a smart grid could respond, occur anywhere in the power generation, distribution and demand chain. Events may occur generally in the environment, commercially in the power supply market, locally on the distribution grid or in the home, which motivate a change to the power flow amount as well as the direction. A smart grid can provide such controls and thus can help to meet the world energy demand by virtue of its key attributes as discussed next.

Figure1. Smart Grid Outline

A. Keep healing and free from attack Smart grid will likely have a control system that analyzes its performance using autonomous reinforcement learning controllers that have strategies to manage the behavior of the grid for ever changing environment due to some equipment failures [4]. Such a system must be used to control electronic

switches that are coupled to multiple substations with varying costs of generation and reliability. By using real-time information from embedded sensors and automated controls to detect and respond to system problems, a smart grid can automatically avoid power outages, power quality problems and service disorders. They can thus easily isolate affected areas and redirect power flows around the damaged facilities, thereby maintaining power availability. B. Motivate consumers participation A smart grid will help consumers to be compensated for their efforts to save and sell energy by real- time and twoway communications through net-metering. It helps the consumers for peak sharing, demand sensitive management. By enabling distributed energy resources like residential solar panels, small wind generators and hybrid vehicle, smart grid motivates small players like individual homes and small businesses to sell power to their neighbors or back to the grid [2]. The same should hold true for larger commercial businesses that have renewable or back-up power generation facilities which can provide power for a price during the peak demand hours. Therefore, these attributes can result in reduction of peak demand on the system and can be a major motivation for demand side and demand sensitive management. C. Provide enough storage and high quality power Smart grids support traditional loads; moreover they also can easily interconnect micro turbines, renewable, fuel cells and other distributed generation technologies at local, regional, national and international levels. Integration of small-scale, localized, or on-site power generation allows residential, commercial and industrial customers to selfgenerate and sell excess power to the grid with minimal technical or regulatory barriers. This improves power quality and reliability. It also reduces electricity costs and offers more choices to the customers. D. Enable electricity market and optimize assets. Significant increases in bulk transmission capacity will require improvements in the transmission grid management. These improvements are aimed to create an open marketplace where alternative energy sources from geographically distant locations can easily be sold to the customers wherever they may be located. It can optimize capital assets while minimizing operations and maintenance costs. Optimized power flows maximize the use of lowest cost generation resources and reduce the waste. Balanced local distribution with interregional energy flows and transmission improves use of the existing grid assets and reduces grid jamming and blocking, which produces consumer savings. These aspects help in optimizing the power system assets. E. Enable high penetration of intermittent generating sources The renewable energy resources are for the most part intermittent in nature. Climate and environmental changes make the availability of these resources intermittent [3]. Smart grid technologies can enable the power systems to operate with large amount of such energy resources in such a manner that both suppliers and consumers are able to compensate for such irregularities.

It is clear from this brief discussion that smart grid technologies can play an important role in integration of renewable technologies in the electric power network.

III.

POWER SCENARIO IN INDIA

Table 1 : Renewable Energy Potential of India Generation of electricity from renewable sources, like wind and hydro, is one direction India could move towards. The renewable energy initiative is expected to help India reduce its dependence on fossil fuels. This can be integrated to the power network by using smart grid technologies.

Countrys present power generation capacity is 160,000 MW. Peak Electricity Demand exceeds supply by 13.3% (March 2010, Provisional data by CEA). Indias commercial energy supply needs to grow by about 6% per annum to sustain 8% GDP growth. 11th plan targets addition of 78,700 MW spending Rs 6.67 L Crores (as per mid plan review, 50,000 MW is expected to be added). In India out of more than one lac un-electrified villages about 25,000 will have considerable infrastructure problems due to high cost of extending utility grid. Indias installed thermal power generation capacity represents 60% of net generation capacity and 57% of greenhouse gas emissions. Based on current plans, this scenario will likely continue until 2020. Thus, the national goal to install 20,000 MW of solar power by 2020. Wind and other renewables are growing rapidly too. Smart Grids are neeeded to enable grid management to cope with the unique dispatchability characteristics of renewable energy sources.

V.

INDIAN WIND ENERGY SECTOR

In terms of wind power installed capacity, India is ranked 5th in the World after the US, Germany, Spain and China with a wind power installed capacity (cumulative) of about 10,242 MW in 2009. Indian gross wind potential is about 45000 MW and technical potential is estimated at about 13000 MW. Top states in India with wind power capacity are Tamil Nadu, Maharashtra, Karnataka, Gujarat and Rajasthan. The capital cost for wind power generation is Rs 5.5 6 Cr/ MW. Gross potential (MW) 8275 9675 6620 875 5500 3650 1700 5400 3050 450 Technical potential (MW) 1750 1780 1120 605 825 3020 680 895 1750 450 Installed capacity (MW) 121 376 688 2 53 1242 2 386 3148 2

State Andhra Pradesh Gujarat Karnataka Kerala Madhya Pradesh Maharashtra Orissa Rajasthan Tamil Nadu West Bengal

IV.

RENEWABLE ENERGY IN INDIA

India's economy is growing presently at the rate of 10 per cent per annum. This means that we will double up all the inputs in seven years. Last year we imported about Rs 85,000 crore worth of petroleum products. And still there are about 60 percent of rural households, which do not have electricity. Sustenance of energy demand cant be achieved through fossil fuel as the limited reserves are fast depleting. Global warming and Clean Development drive forcing countries to reduce polluting industries. There are increasing calls for moving towards renewable energy sources and internalization of social and environmental externalities in energy. By March 2012, total capacity from renewable sources is expected to reach 24,000 MW, accounting for nearly 12% of the total envisaged capacity from all sources (vers 10 % as of Oct 2009). Capacity addition of 30,000 MW is envisaged during 12th Plan for renewables, raising the total capacity to 54,000 MW by 2022, which would comprise 40,000 MW wind power, 6,500 MW from small hydropower and 7,500 MW from biomass. Potential from renewables energy sources is estimated to be approximately 85,000 MW. Table 1 shows estimated potential of India for different alternate energy sources. Technology Wind Power Small Hydro Power (<25MW) Bio-Mass Urban & Industrial Waste Solar Photo Voltaic Estimated Potential 45,000 MW 15,000 MW 19,500 MW 1,700 MW 20 MW/Sq Km

Total (All India) 45195 12875 6018 Table 2: State Wise Wind Power Potential in India There are many regions having a high wind energy potential that makes a good sense to build wind farms in them such as Maharashtra, Gujrat, Andhra Pradesh, Tamil Nadu etc. Table 2 shows the wind energy potential in India. Wind energy can be harvested and connected to power network and smart grid technologies can help in this.

VI.

HYDRO POWER IN INDIA

India ranks 8th in the world in terms of hydro power generation. Hydropower contributes only 24% of the total power capacity (overall capacity 156,092 MW) as on 31st December 2009. India plans to increase it to 40% in next eight years time. As per the assessment of Central Electricity Agency (CEA), the country has the potential to harness 148,700 MW of hydro power installed capacity from the identified basins & rivers. Table 3 shows state wise identified small hydle sites upto 25 MW capacity and total potential. Hydro power investment is attractive on various counts proven

technology, low O&M costs; high energy conversion efficiency of around 70%. S.No Name of State IDENTIFIED NUMBER OF SITES Total Capacity (in MW)

Andhra Pradesh 489 552.29 Arunachal Pradesh 566 1333.04 Assam 60 213.84 Bihar 94 213.75 Chhatisgarh 164 706.62 Goa 9 9.10 Gujarat 292 196.97 Haryana 33 110.05 Himachal Pradesh 547 2268.41 Jammu & Kashmir 246 1411.72 Jharkhand 103 208.95 Karnataka 128 643.16 Kerala 247 708.10 Madhya Pradesh 99 400.58 Maharashtra 253 762.58 Manipur 113 109.10 Meghalaya 102 229.81 Mizoram 75 166.94 Nagaland 99 196.98 Orissa 222 295.47 Punjab 234 390.02 Rajasthan 67 63.17 Sikkim 91 265.54 Tamil Nadu 176 499.31 Tripura 13 46.86 Uttar Pradesh 220 292.16 Uttaranchal 458 1609.25 West Bengal 203 393.79 A&N Island 12 7.91 TOTAL 5,415 14,305.47 Table 3: State wise identified Small Hydle Sites and Potential upto 25 MW Capacity.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

about global climate change. Two major bio-fuels for the transportation sector, bio-ethanol and bio-diesel have gained worldwide acceptance. Among various options available for bioenergy - biodiesel, bioethanol and biomass gasification are three major options, which have huge potential in India to develop as energy sources and where investments made would be economical. In India, biomass-based power generation has attracted investments worth USD 120 million and generated more than 5,000 million units of electricity, besides providing an employment to more than 10 million man-days in rural areas. India ranks second in the world in biogas utilisation. Indian climatic conditions offer an ideal environment for biomass production. Bio-energy has remained critical to Indias energy mix. The current potential of surplus agro and forest residues to energy is estimated at 16,881 MW along with an additional waste-to-energy potential of 2,700 MW. With the setting up of new sugar mills and the modernization of existing ones, the potential of Bagasse cogeneration is estimated at 5,000 MW. The cumulative installed capacity, of grid-interactive biomass and Bagasse cogeneration power was 1,870.83 MW only, as on 30.6.2009. Under the 11th Plan period ( 2007-12) the Government of India plans to add as much as 1700 MW through biomass and Biogases cogeneration in various states. Close on the heels of the Kyoto protocol recommending a phased changeover to bio-diesel through blending, the Government of India has taken a number of initiatives to promote bio-fuels. The availability of biomass in India is estimated at about 540 million tones per year covering residues from agriculture, forestry, and plantations. By using these surplus agriculture residues, more than 16,000 MW of grid quality power can be generated. In addition, about 5,000 MW of power can be produced from sugar mills residues. Thus the estimated biomass power potential is about 21,000 MW. India has approximately 50 million hectares of degraded wasteland that lie outside the areas demarcated as national forests, and another 34 million hectares of protected forest area, in much of which tree cover is severely degraded.

VII.

BIOMASS IN INDIA

VIII.

SOLAR PHOTOVOLTAICS IN INDIA

Though the energy scenario in India today indicates a growing dependence on the conventional forms of energy, about 32% of the total primary energy use is still using biomass and more than 70% of the countrys population depends upon it for its energy needs. Various technologies including gasification, combustion and cogeneration are used for the conversion of biomass materials into electric power. Biomass is an important energy source contributing to more than 14% of the global energy supply. About 38% of such energy is consumed in developing countries, primarily in the rural and traditional sectors of the economy. The strong demand for bio-fuel is in response not only to high crude petroleum prices, but also to the growing concerns

Solar energy is the most readily available and free source of energy since prehistoric times. It is estimated that solar energy equivalent to over 15,000 times the world's annual commercial energy consumption reaches the earth every year. India receives solar energy in the region of 5 to 7 kWh/m2 for 300 to 330 days in a year. This energy is sufficient to set up 20 MW solar power plant per square kilometre land area. Solar energy can be utilised through two different routes, as solar thermal route and solar electric (solar photovoltaic) routes. Solar thermal route uses the sun's heat to produce hot water or air, cook food, drying materials etc. Solar photovoltaic uses suns heat to produce electricity for lighting

home and building, running motors, pumps, electric appliances, and lighting. India has today only around 33-35 grid interactive solar photovoltaic power plants with aggregate capacity of around 2-2.5 MW, that generate around 2.5 million units of electricity in a year, in sharp contrast to the estimated potential of 50,000 MW (assuming a generation of 20 MW per square km). Most of the existing capacity today is off-grid and for standalone applications in lighting, telecommunication, small power requirements, battery charging, water heating, cooking etc. There are currently around 14-15 lakh solar PV systems in operation and around 6 lakh solar cookers in use. Around 200,000 square meter collector area has been installed for solar water heating applications. India presents substantial potential for investments in the solar energy segment, particularly in the manufacture of solar photovoltaics. The recent Special Incentive Package Scheme (SIPS) for semi-conductors has attracted the interest of several players. Under this programme, the GOI would provide an incentive of 20 percent capital expenditure during the first ten years for the units in SEZs and 25 percent of the capital expenditure for other units. Any unit can claim incentives in the form of capital subsidy or equity participation. India is among top 5 destinations worldwide for solar energy development as per Ernst & Youngs renewable energy attractiveness index. Daytime production peak coincides with peak electricity demand making solar ideal supplement to grid. The Government of India has launched the National Solar Mission. The main features of the Mission are: Make India a global leader in solar energy and the mission envisages an installed solar generation capacity of 20,000 MW by 2022, 1,00,000 MW by 2030 and of 2,00,000 MW by 2050. The total expected investment required for the 30-year period will run is from USD 19 bn to USD 23 bn. Between 2017 and 2020, the target is to achieve tariff parity with conventional grid power and achieve an installed capacity of 20 gigawatts (Gw) by 2020. 4-5GW of installed solar manufacturing capacity by 2017. India has a great potential to generate electricity from solar energy and the Country is on course to emerge as a solar energy hub. The techno-commercial potential of photovoltaics in India is enormous. With GDP growing in excess of 8%, the energy gap between supply and demand will only widen. Solar PV is a renewable energy resource capable of bridging this gap. Most parts of India have 300 - 330 sunny days in a year, which is equivalent to over 5000 trillion kWh per year - more than Indias total energy consumption per year. Average solar incidence stands at a robust 4 - 7 kWh/sq.meter/day. About 66 MW of aggregate capacity is installed for various applications comprising one million industrial PV systems - 80% of which is solar lanterns, home/street lighting systems and solar water pumps, etc. The estimated potential envisaged by the Ministry for the solar PV programme, i.e. solar street/home lighting systems, solar lanterns is 20 MW/sq. kilometer.

The potential of the solar thermal sector in India also remains untapped. The Ministry proposes an addition of 14 MW during the 11th Five-Year Plan period (2007-2012).

IX.

ROLE OF SMART GRID

Smart grid can interconnect and control the flow of the plentiful solar energy and wind energy throughout India with the existing energy sources for an optimal and reliable, power supply system allowing individual consumers to generate power onsite using any suitable method and helps to adapt their generation to their load, therefore making them less affected by the grids power failure. It also allows reverse flow of surplus energy generated by a local sub network, after meeting its consumption needs, to the main grid. Smart grid interacts with generators and loads in an automated fashion, in real time and coordinates according to the demand. It manages energy consumption in response to supply conditions or the market price. One advantage of a smart grid application is the time-based pricing. Consumer can monitor the changing price in seconds and thereby electrical equipments are given messages to react to such price variation. Smart grid encourages consumers to prefer suitable energy in cooperation with power grid at the most suitable time. It helps load shaving by motivating consumers to operate only the most essential appliances at peak load periods and to transfer the operation of less needed appliances at off peak hours when tariff may be lower. It will produce more electricity from available cheap and reliable sources at peak load. Thus the smart grid technologies will help in optimizing the use of power system assets. The effort to build smart grid will help to interconnect solar power plants and wind turbines with long distance power lines The effective use of renewable sources in India through smart grid technologies will reduce the amount of coal and oil used for producing electricity, thereby dependence on these fuels.

X.

CONCLUSIONS

Smart grid should incorporate societal benefits and externalities as well as the costs and benefits of conventional investment proposals. This will require a delicate balance, but the transformational potential of the smart grid vision warrants it. A reduction in carbon emissions will improve public health. Some smart grid projects will create employment, enhance agricultural security, stimulate economic growth or provide other benefits that are outside the boundaries of conventional projects. These should be taken into account. Such benefits are difficult to measure, but that shouldnt deter policy makers and regulators from devising a methodology. There is much unfinished business to be taken care of before adopting advanced smart grid features on a broad scale, but action should not be delayed. Transitioning to a

smart grid vision tailored to Indias unique circumstances would include: Develop a national vision and a flexible plan to pursue smart grid benefits Build on R-APDRP and link service quality improvements to measurable KPIs Conduct customer and marketing surveys to refine the understanding of what drives customer satisfaction Craft policies and regulations to create a more receptive environment for smart grids by encouraging innovation, establishing interoperability standards, and allowing more market-oriented and entrepreneurial solutions. Implement techno-commercial proof of concept pilot projects for initiatives that have potentially high impacts, including those that can be implemented independently of the grid. India is blessed with plenty of wind energy, hydro energy, bio-mass, solar energy etc. Smart grid technologies can transfer these blessings throughout the world. Smart grid improves the communications between the electricity producers and consumers and decisions about when and how to generate and consume electric energy. Smart grid is not fist a vision to future, but rather a solution to the energy and environmental challenges facing the world today. Lot of research work is essential to implement smart grid in the

India. Successful efforts to implement such technologies will make India a major megawatt exporter in the world and will lead to economic and environmental benefits.

REFERENCES [1] National Energy Technology Laboratory, "Smart Grid Principal Characteristic, Enable new Products, Services and Markets. 2010, www.netl.doe.gov/smartgrid [2] Smart grids Advisory Council. "Driving Factors in the Move Towards Smartgrids". European Smartgrids Technology Platform: Vision and Strategy. www.smartgrids.eu/documents/vision.pdf. [3] Battaglini A, Lilliestam J, Bals C and Haas A, "The Super Smart Grid," European Climate Forum 2008. [4] Space time insight, Visual Intelligence for the Smart Grid. www. spacetimeinsight.com. [5] European Technology Platform SmartGrids, Strategic Research Agenda for Europes Electricity Networks of the Future, European Commission, Directorate General for Research, Directorate Energy. [6] Samuel, P.; Gupta, R.; Chandra, D., Grid interface of photovoltaicmicro turbine hybrid based power for voltage support and control using VSI in rural applications, IEEE Power & Energy Society General Meeting (PES09), 2009, pp. 1-6. [7] World Energy Council,Survey of Energy Resources, 2010 [8] Bureau of Energy Efficiency,"Application of Non-Conventional & Renewable Energy Sources", 2010 [9] Singh Kuljit , "Renewable Energy in India : Opportunities and Challenges", Transaction Advisory Services, April 2008