In a recent interview with Power Line, S.R. Narasimhan, Chairman and Managing Director, Grid Controller of India Limited (GRID-INDIA), commented on the current state of the power sector and its performance during the past one year. He also spoke about the progress under the security constrained economic despatch (SCED) model and the cybersecurity measures needed to ensure grid safety. Edited excerpts…
How has the sector performed in the past one year or so?
India’s power sector has made remarkable strides and set new benchmarks in meeting the growing energy demand. Highlighting the robustness of the Indian grid amid ever-increasing electricity demand, the grid frequency remained within the IEGC-prescribed band for 74 per cent of the time in the past year.
The Central Electricity Regulatory Commission (CERC) notified the IEGC 2023, which came into force on October 1, 2023, marking a new era in the Indian power sector. Subsequently, access to the ISTS transitioned to the General Network Access (GNA) regime, bringing about a paradigm shift in power market operations.
All regional load despatch centres and the National Load Despatch Centre worked diligently to ensure the successful implementation of IEGC-2023 and GNA regulations from October 1, 2023. Their tireless efforts and coordinated actions were crucial in managing a smooth transition to the new regulatory regime. Also, as per the provisions of IEGC 2023, Grid-India is now performing an assessment of reserve requirements on a year-ahead basis, day-ahead basis and intra-day basis.
Ancillary services are an essential pillar of electricity market design and contribute to the reliability and security of the national grid. GRID-INDIA has continuously taken initiatives to expand the footprint of secondary reserve ancillary services and tertiary reserve ancillary services (TRAS) from the interstate to intra-state level, from thermal to renewable energy.
During 2023-24, the total generation capacity added in the power system was 24,312 MW, comprising thermal 5,948 MW (including gas), hydro 78 MW, solar (including rooftop and off-grid solar) 15,033 MW and wind 3,253 MW. New wind and solar generating stations commissioned in 2023-24 have been integrated into the respective renewable energy management centres (REMCs). As of March 31, 2024, 45.35 GW of wind and 58.21 GW of solar capacity are being monitored through these REMCs.
However, high renewable energy penetration presents significant grid management challenges. Between January 2022 and June 2024, a total of 57 grid events occurred in renewable energy pockets connected to the ISTS, each involving a generation loss ranging from 1,000 MW to 7,000 MW. The matter has been taken up with all the developers for ensuring compliance with the CEA’s technical standards.
An important step towards the clean energy transition is the Carbon Credit Trading Scheme 2023, notified by the Ministry of Power on June 28, 2023. GRID-INDIA will serve as the registry for the Indian carbon market.
What are the unresolved issues in the sector?
As the country undergoes a massive energy transition, it is widely recognised that a range of operational and electricity market reforms are necessary to operate effectively under this new energy landscape. The rapidly evolving and transitioning energy scenario calls for continuous innovation and flexibility on the part of both suppliers and procurers. Meeting the future demand requirements through predominantly renewable energy sources calls for innovative strategies. There is a need for suitable amendments in the CEA’s standards, mandating demand response from new bulk load entities, such as data centres and electrolysers for green hydrogen.
Scientific resource adequacy planning is the need of the hour to ensure that an optimal resource mix is developed and forms the basis for a capacity market in the future. Resource adequacy is the foundational basis for deeper energy market operations and the introduction of measures such as market-based economic despatch and market-based integration of renewable energy.
Recently, the country has been facing an acute shortage of downward reserves due to the high injection of renewable energy into the grid and lower demand during the monsoon period. With interstate reserves exhausted and thermal generators operating at their technical minimum levels, the inadequacy of downward reserves poses a serious grid security challenge for system operators. There is a need to enable the flexibilisation of thermal fleet (MTL reduction from 55 per cent to 40 per cent) at both ISTS and intra-state levels. Energy storage capacity needs to ramp up sharply, commensurate with wind and solar capacity. Additionally, implementing SCED at the intra-state level is essential to achieve national optimisation. Enhanced forecasting tools, incorporating AI and machine learning (ML), are also critical to reducing the need for reserves in grid management.
What has been the progress under the SCED? What is the future outlook?
Since its inception in April 2019, SCED has resulted in a reduction in the variable cost of power generation by over Rs 37 billion. At the power station level, reduced perturbations and increased certainty in the injection schedule enabled better fuel management. After the introduction of the real-time market (RTM) on June 1, 2020, which has provided additional opportunities to market players for portfolio optimisation, SCED operates after the RTM to mop up further savings, if any. The market-based TRAS has been successfully operationalised since June 1, 2023 in line with the CERC (Ancillary Services) Regulations, 2022. To facilitate TRAS, SCED software has been customised to withhold the TRAS market-procured reserves and run before the real-time despatch of TRAS reserves. The CERC (Indian Electricity Grid Code) Regulations, 2023 has also provided for security constrained unit commitment (SCUC), which is a mechanism for maintaining reserves in the system. The day-ahead SCUC has been implemented since April 26, 2024. In real time after the RTM, the injection schedules of the day-ahead SCUC committed units are increased up to the minimum turndown level, and the output of the SCUC is provided as input to SCED.
One of the major learnings on the system operations front has been the support to system reliability, along with signals for technology interventions. The SCUC/SCED process also highlighted the need for enhancing the thermal flexibility attributes of power plants such as higher ramping capability, lowered minimum turndown level and requirement for two-shifting operations of thermal plants. Efforts are under way to extend SCED at the intra-state level by various states. Under the aegis of the forum of load despatchers (FOLD), the “My-SCED” project, led by various states, has started. This initiative aims to establish an optimisation-based scheduling process within states, while enhancing system flexibility—a critical need in the current scenario of high renewable energy integration.
What are the cybersecurity measures needed to maintain a secure and stable grid?
The cybersecurity architecture necessary to maintain a secure and stable grid, especially from the grid operators’ perspective, encompasses security implementation in both the operational technology (OT) and information technology (IT) domains. The design and implementation of security controls should necessarily address risks associated with all the three pillars, namely, people, process and technology. Proper hardened segregation of IT and OT is one of the key areas to focus on. The OT security implementation must also focus on establishing peripheral security around the legacy system. Identification and necessary replacement plan of the legacy environments, along with configuration of adequate security controls and monitoring of the legacy applications and hardware resources, help plug in the major gap in threat dynamics of OT systems. It is important that all players and establishments of the integrated power system ensure suitable security at its perimeter as well as the inter-connectivity in between.
Physical security is a critical aspect of the overall security strategy. The critical information infrastructure locations should be suitably safeguarded through advanced access control mechanisms that include biometric systems to prevent unauthorised entry. Adherence to the regulatory provisions, guidelines and directions from various statutory bodies and intelligence agencies must be ensured.
To enhance visibility, organisations should establish and operate next-generation security operations centres (SOCs) equipped with advanced tools, for monitoring the cybersecurity landscape in real-time. Leveraging AI-based systems for behaviour analysis, threat hunting and malware analysis, deep-forensic capabilities, etc., may be utilised for enhancing the security posture and mitigate zero-day threats.
Overall, an emphasis on awareness programmes, regular mock exercises, preparation and enhancement of the cyber crisis management plan and effective collaboration among all responsible entities must be ensured to build a robust, cyber-secure and resilient grid.
What more needs to be done at the grid level to manage the growing renewable energy integration?
The Indian electricity sector is evolving to meet the increasing power demand and adapt to a changing energy mix, particularly with the growing penetration of renewable energy. As of August 2024, the installed renewable energy capacity, including large hydro, reached approximately 200 GW, accounting for around 44 per cent of the total installed capacity.
The promotion of energy storage systems is crucial for facilitating India’s clean energy transition. Significant advancements in battery technology have emerged, with nickel-chromium, redox-flow, sodium-sulphur and vanadium flow batteries gaining traction alongside traditional lead-acid and lithium-ion variants. Their rapid response rates, quick installation and ability to support multiple start-stop cycles make them essential for addressing renewable energy grid-related challenges in India.
The deployment of energy storage would be indispensable as a flexible resource for ensuring resource adequacy in the future grid with large-scale integration of variable and intermittent energy sources.
As renewable energy penetration increases, larger balancing areas and shorter gate closures will become critical. Both generators and distribution utilities should have the flexibility to adjust deviations in renewable generation schedules through a liquid electricity market. The future redesign of the electricity market must enable renewable energy to be schedulable and despatchable, either directly in the market or through market-linked pricing. This approach will allow discoms to meet the overall demand optimally without being locked into inflexible, bilateral, long-term contracts.
The increase in renewable energy in the overall energy mix will require reforms, particularly in areas of developing electricity infrastructure, capacity markets, financial products, distribution system operators, better forecasting (AI/ML-based forecasting), visualisation of high-resolution data, deepening of electricity markets, resource adequacy planning, robust market monitoring and capacity building at inter/intra state levels.
What are your priorities and key focus areas for GRID-INDIA?
Ensuring grid integrity and security is our topmost priority. Further, GRID-INDIA is committed to ensuring the reliable operation of the electricity grid as the country works towards achieving its target of 500 GW of non-fossil fuel generating capacity by 2030. Our internal policies prioritise talent management and workplace diversity, while empowering and motivating system operators to meet growing stakeholder expectations. GRID-INDIA is a young organisation with the average age being below 35 years, with an enthusiastic workforce laying the foundation for a robust resilient grid of 2047 and beyond.
GRID-INDIA actively pursues green initiatives to reduce its carbon footprint. We implement energy efficiency measures, digitalise workflows to promote paperless operations, utilise online platforms for collaborative work to reduce travel and adopt a minimalist approach in all functions and infrastructure. Both mindsets and skillsets must adapt to the integration of new technologies, such as electric vehicles, energy storage, green hydrogen and institutions such as aggregators and distribution system operators. Modernising control centres with AI tools and maximising system performance are critical for ensuring cybersecure and efficient operations.
Fostering learning is one of GRID-INDIA’s core values, extended not only to its own employees but also to the broader power system operators’ community, including but not limited to FoR, FOLD and SLDCs. The company is actively involved in various international forums and has established productive collaborations with power system operators worldwide. Additionally, GRID-INDIA has assumed the GO15 presidency for 2024. The organisation also plays an active role in CIGRE (International Council on Large Electric Systems), a leading body focused on the technical, economic, organisational and regulatory aspects of the electric power systems.
What is your outlook for the power sector?
India aims to achieve net zero by 2070. The sector will continue to witness a shift toward renewables and an increased focus on green hydrogen, green ammonia, emission-based despatch, flexible/virtual power purchase agreements, etc.
The power sector has undergone significant transformation in recent years, driven by the increasing integration of renewables, the emergence of new sources of clean energy such as rooftop solar and green hydrogen and new loads such as space cooling, EVs, data centres, electrolysers and electric cooking.
Climate change-induced adverse weather conditions and an increase in high-impact, low-probability incidents highlight the urgency of enhancing system resilience. These events pose a significant threat to the reliability and security of the power system.
South Asian regional cross-border trade is being promoted through initiatives such as One Sun, One World, One Grid; the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation; and the Bangladesh, Bhutan, India and Nepal initiative. The development of digital infrastructure, cybersecurity and scalable ways of working, supported by interoperable information and communications systems, is imperative.
Several legal and regulatory reforms have been undertaken in the past decade. The Energy Conservation (Amendment) Act, 2022 has laid the legislative foundation to develop carbon markets. The Change in Law Rules, 2021 and the Late Payment Surcharge Rules, 2022 have enforced fiscal discipline among discoms. The Green Open Access Rules, 2022 seek to promote renewables’ development. The CERC’s General Network Access Regulations, 2022; the Grid Code, 2023; and market regulations have created a robust pathway for market development and optimal utilisation of the national grid. Additionally, the modernisation of control centres with AI tools and the maximisation of system performance are crucial measures. Risk-based probabilistic transmission planning processes and criteria, along with non-wire alternatives, have to evolve. Offshore wind and hybrid renewables (such as wind-solar and wind-solar storage) should be seamlessly integrated into the grid.