A study of smart grids in India: An implementation roadmap

Abstract

We live in an era of “smart” technology. Everything, right from our watches and mobile phones to our cars and homes are branded “smart” if they are powered by the latest technologies. In such a scenario, it is only imperative that the electricity that drives all these technologies, itself becomes a smart technology. In fact, if we look carefully into the evolution of the electrical energy sector, we realize that it had undergone very little structural changes until recently. The electricity grid that was designed in the era of Thomas Edison has been retained in it basic form for over a century. However, with the growing global population, and the rising living standards, the demand for electricity has gone up manifold. Further, the pressures to limit emissions from energy sources have been rising. The simultaneous need for a stable, growing, sustainable and reliable electricity solution has led to the evolution of the “smart grid”, the so-called energy grid of the future. This report starts by arriving at a consensus definition of “smart grids”, and describes an ideal smart grid. It highlights a few noteworthy pilot projects from across the world and shows how are helping to develop new grid technologies. Then, it takes a look at the existing Indian electricity grid and identifies gaps that must be plugged before we can implement and benefit from smart-grids. Some of the initiatives launched by the government in this direction are described, followed by an implementation roadmap for smart grid adoption by 2027. It is seen that there is an urgent need to augment both renewable energy generation and transmission capabilities to overcome the existing power deficits. Also, distribution efficiency needs significant improvement by nation-wide universal meter coverage and reducing AT&C. Only after this, we can start a roll-out of the smart grid implementation plan – a detailed 10-year plan for which has been discussed by multiple stakeholders – including government, power companies, industry organizations etc. and has also been covered towards the end of this report.