SMART GRID The Future of electric

grid

Presented by : group 7
AMPAVATHINA DHARMATEJA
2013PGP037
ASIT ARUNAV MOHAPATRA
2013PGP085
JANMEET KAUR
2013PGP165
PARISHMITA GOGOI
2013PGP269
RAHUL VERMA
2013PGP305
Contents

Energy Situation in India

About Smart Grid

Components of Smart Grid

Business Model of Smart Grid

Market Analysis- Scope and Competition

Developments

Threats and Challenges

ENERGY SITUATION IN INDIA
Introducti Components
Energy Situation in India Business Market Developmen Challenges
on (IT)
India is third largest producerModel Analysis
and fourth largest consumer ts
of power. Sources of Power Generation
Electric power generation in India now accesses four basic Coal Hydro
energy sources: Fossil fuels such as oil, natural gas and Solar,Wind and Gas Nuclear

coal; Hydroelectricity; Nuclear power; and Renewable

6%3%
energy sources such as bio-fuels, solar, biomass, wind and 28%
ocean. 63%

In 2012 (2014) , installed capacity was about 185,000

(250000) MW. By 2030,India requires 400,000 MW. This
assumes an energy growth rate of 5% per annum. Plant Load
In India, electricity is still not available to the entire Factor
population; nearly 25% or 289 million Indians lack access
to electricity
The countrys peak power capacity deficit widen in 2010
to 12.6 percent
Operational of total
Efficiency capacity, up from 11.9 percent last
- Needs
year
Indias overall electricity generation efficiency remains relatively low compared to other
countries. 20% of operational thermal power units are more than 25 years old and
another 40% are more than 15 years, but less than 25 years old
India still needs to establish a national grid through integration of its existing regional
grids.
In 2012 India faced a series of two severe blackouts that occurred in most of northern
and easternIndiaon July 30 and 31, 2012. The 30 July 2012 India blackout affected over
300 million people and was the then-largest power outage in history, counting number of
Situation of Indias Energy Needs
Introducti Components Business Market Developmen Challenges
on (IT) Model Analysis ts
What is Smart Grid? Benefits of Smart
Grid
Modernizedelectrical grid that uses analog or
digital information or communications
technology to gather and act on information to
improve the reliability, economics and
sustainability of production and distribution of
electricity

They are beginning to be used on electricity

networks, from the power plants and wind
farms all the way to the consumers of
electricity in homes and businesses

It includes adding two-way digital

communication technology to devices Objectives of Smart Grid
Delivering technology using
associated with the grid. Each device on the
network can be given sensors to gather data digital technology
Alternative Green Energy sources
(power meters, voltage sensors, fault detectors,
New technology and scope for
etc.), plus two-way digital communication
between the device in the field and the utilitys future technology
Least cost economy and
network operations centre
environment
About Smart Grid
Introducti Components Business Market Developmen Challenges
on (IT) Model Analysis ts

Applications : Delivery of electricity to customers

Electricity Generation Process : Chemical Combustion, Nuclear Fission, Water,
Wind, Solar Radiation, etc.
Connection: Electrically connected to the Operations, Markets and Transmission
domains
ABOUT SMART GRID
Introducti Components Business Market Developmen Challenges
on (IT) Model Analysis ts

Applications : Bulk transfer of power from generation sources to distribution

through multiple substations
Connection: Electrically connected to the Bulk Generation and Distribution
domains, as well as communicating with the Operations, and Markets Domains
Benefit: Maintain stability by balancing generation (supply) with demand across
ABOUT SMART GRID
Introducti Components Business Market Developmen Challenges
on (IT) Model Analysis ts

Applications : Facilitate in supplying power to consumers

Connection: Electrically connected to the Transmission and customer domains, as
well as communicating with the Operations, and Markets Domains
Benefits: Ability to break into self-supporting "micro-grids" when a problem
occurs
ABOUT SMART GRID
Introducti Components Business Market Developmen Challenges
on (IT) Model Analysis ts

Connection: Electrically connected to Distribution Domains, as well as

communicating with Distribution, Operations, Markets, and Service Provider
Benefits: Remote load control, monitoring and control of distributed generation,
in-home display of customer usage, reading of non-energy meters, and
integration with building management systems. It may also provide
ABOUT SMART GRID
Introducti Components Business Market Developmen Challenges
on (IT) Model Analysis ts

Applications : Ongoing management functions necessary for the smooth

operation of the power system
Outsource: Tasks are outsourced to market domains
Functions: Network operation, network operation monitoring, network control,
fault management, operation feedback analysis, operational statistics and
ABOUT SMART GRID
Introducti Components Business Market Developmen Challenges
on (IT) Model Analysis ts

Applications : Perform pricing or balance supply and demand within the power
system
Connections: communicates with all other domains
Benefits: Real-time pricing, efficient matching of production with consumption
relies on markets
ABOUT SMART GRID
Introducti Components Business Market Developmen Challenges
on (IT) Model Analysis ts

Applications : Organizations support the business processes of power system

producers, distributors and customers
Connections: Electrically connected at the Customer domain& communicates
with the Markets, Operations and Customer domains
Benefits: Create new and innovative services (and products) in response to
Components of Smart Grid
Introduction Components Business Market Developmen Challenges
(IT) Model Analysis ts
Transmission and distribution
Demand Management Distributed Electricity Generation
Grid Management

Demand Management
To reduce electricity consumption in homes, offices, and factories by continually monitoring
electricity consumption and actively managing how appliances consume energy
Demand Response: during peaks of energy use electronic alerts are sent by utility
companies to turn off non-essential electrical companies, when Smart Grid is fully
functional alerts will be sent automatically.
Smart Meters and Variable pricing: Smart meters allow utility companies to monitor
consumer usage frequently give customers the ability to choose variable-rate pricing
based on the time of day.
Smart Buildings with Smart Appliances: Building control systems that manage
various appliances(HVAC), and lightingalso are converging onto a common IT
infrastructure that allows these devices to communicate with each other .
Energy dashboards and controllers Online energy dashboards and controllers, will
provide real-time visibility into individual energy consumption and generation while
automatically turning major appliances on and off.
Green ITElectricity requirements can be improved for bringing about the energy
efficiency of IT equipment include network-based power management, network printers,
server virtualization, the procurement of energy-efficient equipment, and
telecommuting.
Components of smart grid
Introduction Components Business Market Developmen Challenges
(IT) Model Analysis ts
Distributed Electricity Generation
Accelerating Widespread Installation of Renewable Energy Sources
Storage and PHEVs utility companies could use fleets of PHEVs to supply power to the
grid to respond to peaks in electricity demand; car batteries.
Smart Grid communities- formation of energy cooperatives that pair corporations
and government facilities with residential homes to self-manage some of their energy
needs.
Transmission and Distribution Grid Management
IT solutions to monitor and control the electrical grid in real time.
Grid monitoring and controlsensors to monitor and control the electrical grid in near-
real time (second milliseconds) to detect faults in time to respond.
Grid security and surveillance- Substations, transformers, and power lines are being
connected to data networks, allowing utility companies to monitor their security using live
video, tamper sensors, and active monitoring.
Smart grid: should analytics be a core strategic system
Introduction Components Business Market Developmen Challenges
(IT) Model Analysis ts
Collecting huge Guiding principle for technology
amount of evaluation
comprehensive
data
Data should be moving to achieve low
Integrating
latency
Derive sharper unstructured Generate predictable outcomes
insights data with Process real time or stored data
master data Respond Instantaneously
What Smart
Handle missedGrid can do
data

Unlocking data into information

Data safety and data availability to be
Disbursed multi
ensured
Real time Real time querying to be achieved against
capture of data location, multi
format data live data to be streamed or historic data
stored
What IT companies offer for Smart Outage detection and mapping. Enhanced
Grid customer satisfaction
IT capabilities to make the utilities Analyze consumption data to drive rates
self-healing Apply grid analytics for monitoring and
Data centre design and development managing the grid
Billing and Customer financial Self monitoring and healing of grids
Business Models
Introduction Components Business Market Developmen Challenges
(IT) Model Analysis ts
Electrical Traditionally regulated industry
Equipment A lot of actors in the business too
Manufacturers many products to sell
Implementation of Smart home, Smart
Appliances, Smart Cities, etc. required

Consumer ICT Industry Customer Value Propositions to

Products generate revenue:
Smart Grid
To sell energy efficiency
To develop new services
To share the value of Smart Grids
Building Industry Future Grid v/s Traditional Grid

Electrical Eqp. Manufacturers:

Production, transformation & Protection
Equipment
ICT Industry: Communication equipment,
software Data Management & Cyber
Security
Building Industry: HVAC, Energy Mgmt.
System
 Business Models
Introduction Components Business Market Developmen Challenges
(IT) Model Analysis ts
Passive Persistence - traditional utility market
structures still dominate, and consumers either accept
or prefer the historical supplier-user relationship
Operations Transformation- Combination of grid and
network technology evolves to enable shared
responsibility, but consumers cannot exert much
control.
Constrained Choice - Consumers take decisive steps
towards control but are limited by regulators and/or
technological constraints
Participatory Network- A wide variety of grid and
Traditional Customer network technologies that
Aggregator enable shared responsibility.
ESCO Telco style
Model Provisioned Model Model Business
Model Model( Under
1. Utilities 1. Large 1. Via 1. Savings by Price per kWH
Research)
PRESENT MODELS

identify DR and customers aggregation installation of vs Fixed-Cost

develop DR purchase intermediary efficient Pricing Model
plans demand response 2. Aggregator equipment Movement in
2. Non technology benefits from 2. Cost Energy Market
restructured 2. Enabling to DR programs sharing - Mobile
markets decrease 3. Restructured between Network
operation costs markets customers Operators
Scope and Competition
Introduction Components Business Market Developmen Challenges
(IT)
Driving Forces for Smart GridModel
High Analysis ts
Scope Global Players in this Segment
Technology Evolution: Advanced
metering infrastructure and &
communication technology
Customer Needs: Energy bill Some Leading End to End providers
reduction; Low metering and collection
efficiency
Regulatory mandate: It has become
a regulatory mandate in the US to
ensure Green Energy promotion Some Smart Meter Manufacturers
Ageing Grid and reliability :Demand
and Supply mismatch; Power outages
and overloading of equipment
Market Leading Communication Layer Players
Currently the countries like China, US, The growth of the smart grid and the value it
Japan , South Korea and Spain are the creates will vary across geographies,
largest markets for Smart Grid. depending on the number of electric grid, and
In India wealth of the economy, and the makeup of its
Smart grid is yet to come in India, regulatory regime. The impact of these factors
however some implementation has is most visible when contrasting the likely
been started in the Maharashtra areas. growth paths of Europe and China relative to
that of US. India is still facing challenges in its
Smart grid: global scenario and trends
Introduction Components Business Market Developme Challenges
(IT) Model Analysis ntsFederal Investments in billion $
Global Developments in Smart Grid
Singapore constructing worlds largest
experimental energy smart grid at a cost of 27
milion USD
Advanced metering Infrastructure, smart grid
analytics and Transmission upgrades are the
recent global trends in Smart grid
The global smart grid market is expected to
0 1000 2000 3000 4000 5000 6000 7000 8000
reach $80.6 billion in 2016 from $22.8 billion in
Investments in biillion $
2011 at a CAGR of 28.7% from 2011 to 2016
Source: Data obtained from respective region
Issue such as government policies and federal agencies
Global Smart Grid Market size in billion S
technology standards will shape the growth in
the years to come 2014
Major players are: App and Services- IBM,SAP; 2013
Smart charging- Oracle; Grid optimization- 2012
Accenture Year 2011
Large capacity renewable energy generation 2010
and their integration 2009
Over 100 IEC Standards have been identified
0 20 40 60 80 100 120 140 160 180
as relevant to the Smart Grid. Some of them are
IEC 62351- security Market size in billion $

IEC 61850- Power utility automation Market size

 Smart Grid Indias developments
Introduction Components Business Market Developme Challenges
(IT) Model Analysis nts
India- third largest market for smart grid investment
India Smart Grid Task Force (ISGTF) Implementation Strategy
Inter ministerial group, govt. focal point for smart
grid related affairs Study domain requirements WHER
Non-profit consortium, public & private stakeholders Identify hot zones E?
Objective: help Indian power sector to deploy smart Pin point the most feasible options for
the
grid technologies in efficient, cost effective, scalable
and innovative manner initial phase
Identify project partners

Technology Grid Pilot projects for the initial WHEN

Leapfrogging Peak Load improvements phase; no mass rollouts ?
Start/test redefine
Mgt.
Anticipate uncertainty that the pilot projects
can encounter and prepare for the same
Major
Loss Drivers in Environment Gain experience through initial HOW
reduction India round of pilot projects ?
Cost benefit analysis of pilots
Supply Review and recalibrate to scale up
and
shortfalls
Renewable Cost mass rollout
Smart Grid Indias developments
Introduction Components Business Market Developme Challenges
Pilot Projects (IT)
(2013-16) Model Analysis nts
14 pilot projects planned by Ministry of Power
(MoP)
MoP set up India Smart Grid Task Force (ISGTF)
and India
Smart Grid Forum (ISGF) to help prepare the
roadmap for
smart grid rollout
What will these pilot programs be evaluated
on?
Techno-commercial benefits
Technology evaluation
Plan to scale out into full projects thereafter
Functionalities being opted as part of pilot
programs
Peak load management
Power quality
Outage management
Micro-grids
Distributed generation
AMI (Advanced Metering Infrastructure) for
residential, commercial & industrial
sectors
Challenges faced
Introduction Components Business Market Developmen Challeng
(IT) Model Analysis ts es
Vulnerabilities

Customer security: Smart meters autonomously collect massive amounts of data

and transport it to the utility company, consumer, and service providers. This data
includes private consumer information that might be used to infer consumers
activities, devices being used, and times when the home is vacant.

Greater number of intelligent devices: A smart grid has several intelligent

devices that are involved in managing both the electricity supply and network
demand. These intelligent devices may act as attack entry points into the network.
Moreover, the massiveness of the smart grid network (100 to 1000 times larger than
the internet) makes network monitoring and management extremely difficult

Physical security: Unlike the traditional power system, smart grid network
includes many
components and most of them are out of the utilitys premises. This fact increases
the number of insecure physical locations and makes them vulnerable to physical
access.

The lifetime of power systems: Since power systems coexist with the relatively
short lived IT
systems, it is inevitable that outdated equipments are still in service. This equipment
Barriers to smart grid
Introduction Components Business Market Developmen Challeng
(IT) Model Analysis ts es
Different Teams backgrounds: Inefficient and unorganized communication between
teams might cause a lot of bad decisions leading to much vulnerability.

Using Internet Protocol (IP) and commercial off-the- shelf hardware and
software: Using IP standards in smart grids offer a big advantage as it provides
compatibility between the various components. However, devices using IP are inherently
vulnerable to many IP-based network attacks such as IP spoofing, Tear Drop, Denial of
Service, and others.

More stakeholders: Having many stakeholders might give raise to a very dangerous
kind of attack. Barriers in Smart Grid Implementation
Policy and regulation Access to affordable capital
Business case Skills and knowledge
Technology maturity and delivery risk Cyber security and data privacy
Awareness / Customer Exponential data flood
Transformation
Of the eight barriers outlined above, the first three pose the most significant hurdles,
but, if addressed, will go along way towards creating an environment that will
encourage investment in smart grids
THANK YOU