The distribution segment’s smart grid journey has progressed significantly. The National Smart Grid Mission (NSGM), which was established by the Indian government in 2015, has made significant strides in advancing smart grid initiatives across discoms in the country. The mission has facilitated the development of an advanced metering infrastructure (AMI) ecosystem and the demonstration of various smart grid functionalities. In its initial phase, the NSGM handheld utilities through pre-feasibility studies, technology selection, cost-benefit analysis and financing. Additionally, it provided training and capacity building for state-level project management units and project teams, developed model standard bidding documents and best practices, and promoted consumer awareness. Now, with the large-scale roll-out of 250 million smart meters under the Revamped Distribution Sector Scheme (RDSS), the country’s smart grid road map is readying itself for a significant transformation.
Journey so far
Under the NSGM, 11 pilots worth Rs 2.47 billion, including a smart grid knowledge centre in Manesar, have been completed, with 50 per cent funding from the Ministry of Power (MoP). Approximately 0.16 million smart meters were installed in these pilots, which demonstrated important functionalities such as AMI, peak load management and outage management systems. Impact assessments have also been carried out for these pilots.
Building on these initiatives, the NSGM facilitated the development of a new generation of communication technology with enhanced performance based on radio frequency mesh as an evolution of the technology deployed at CESC Limited, Mysore. Additionally, the technology was validated through a pilot project in Tripura. Two innovative smart meter products have also been introduced under the mission.
Besides technology innovations, the mission has helped build capabilities in other critical areas. One such initiative is the development of a smart grid readiness self-assessment tool, which gives utilities the ability to develop their own road map and also learn from their peers. Cost-benefit analysis tools have also been developed. For training and capacity-building, national and international workshops, along with several utility training programmes, have been conducted.
The mission also facilitated the creation of a comprehensive framework, including standard bidding documents for advanced metering infrastructure service providers (AMISPs) under the opex model – a blueprint for utilities for the roll-out of smart meter projects, yielding significant outcomes.
To enable data visualisation and access to real-time data, smart metering dashboards have also been launched and are being actively maintained by NSGM project management units. These dashboards compile smart metering deployment status data from all nodal agencies. As of November 2024, as per the dashboard, for smart consumer metering, 222.45 million meters have been sanctioned, with 16.83 million installed. For distribution transformer (DT) metering, 5.27 million meters were sanctioned, with 0.21 million installed and 5.06 million pending. For feeder metering, 0.19 million meters were sanctioned, with 0.08 million installed and 0.12 million yet to be completed.
Issues and challenges
While smart metering serves as the foundation for future smarter grids, utilities have faced challenges in its implementation. Smart meter deployment across states varies. Delhi has achieved 100 per cent consumer smart meter deployment, while Andhra Pradesh, Bihar and Chhattisgarh show promising progress, with deployment rates exceeding 30 per cent. However, progress is lacking in other states. Issues hampering smart meter deployments include consumer resistance and the lack of awareness, alongside limited support for meter replacement and non-availability at premises. Mistakes in consumer indexing, where meters are linked to incorrect consumers, further complicate implementation. Geographic challenges, including natural calamities and adverse weather conditions, also hinder progress. Technological obstacles include communication technology issues, integration with legacy systems, and interoperability between different vendors and systems.
Other issues include limited consumer engagement, such as low participation in demand response programmes and a lack of understanding of time-of-day (ToD)/time-of-usage (ToU) tariffs. Concerns over cybersecurity and data privacy, regulatory gaps for prepayment systems and ToD tariffs, and challenges in managing prepaid meter connections, such as timely recharge or disconnection, have also posed barriers to the effective roll-out of smart meters.
Another crucial aspect to be tackled in the future is renewable energy integration. Technically, managing the inherent variability and uncertainty of generation from renewable sources such as solar and wind, balancing supply and demand during both scarcity and surplus situations, maintaining stable voltage levels amidst fluctuating output, and ensuring quick response from backup power sources are critical concerns. Economically, significant capital investments are required for grid upgrades to accommodate these sources. Uncertainties in project costs and cash flows create financial risks, while commercial impediments, such as unfavourable market pricing, hinder real-time power balancing. Careful generation planning is essential to incorporate sufficient flexible generation capacity to complement these sources and maintain system stability. These intertwined technical and economic obstacles must be effectively addressed to facilitate a successful transition to a grid powered by renewable energy.
Cybersecurity concerns
Cybersecurity is another area that utilities must prioritise as they collect more data through smart meters. To address issues related to cybersecurity, the Central Electricity Authority’s Cybersecurity in Power Sector, 2021, was issued. The guidelines focus on raising cybersecurity awareness and building a secure cyber ecosystem, establishing robust regulations and mechanisms for threat detection and response, securing remote operations and critical infrastructure, and mitigating supply chain risks by promoting open standards and research. Cybersecurity and associated risks have also been addressed in the standard bidding documents for AMISPs.
Meanwhile, AMISPs and utilities must comply with the Digital Personal Data Protection Act, 2023. It mandates consent for data collection and strengthens customer data rights (access, correction, deletion). It requires robust data security and breach notification protocols to be established. It also extends to third-party vendors, and requires that these vendors also comply with data protection regulations. It necessitates power sector entities to adapt to the regulatory framework established by the act, which may involve appointing data protection officers and conducting regular training for staff on compliance. If power companies operate internationally or utilise cloud services, the act requires them to ensure compliance with cross-border data transfer provisions in the act.
Next steps
The next steps for smart grid projects include smart distribution. A road map for implementing smart distribution technologies has already been developed. Smart distribution technologies will be implemented in two phases, with Phase I focusing on foundational elements until 2026 and Phase II aiming for broader implementation by 2030. Overall, this phased approach aims to progressively integrate smart technologies into India’s power distribution system for a
more efficient, reliable and consumer-focused grid.
Phase I (until 2026) includes DT and feeder metering, and AMI and consumer indexing. It aims for 50 per cent coverage, with 100 per cent by Phase II (2030). Supervisory control and data acquisition, distribution management and outage management systems will be set up at 33 kV and 11 kV levels, as well as for critical DTs under Phase I, with plans for future expansion to other DTs in Phase II. Distribution infrastructure improvements, such as underground lines and gas-insulated switchgear substations, will be based on network needs in
both phases.
Asset mapping will begin at substations and feeders, and then move to low tension lines and consumers. Initial DT monitoring will cover 10 per cent of DTs, with plans to scale up under Phase II. Smart street lighting will involve retrofits and new installations in Phase I, with more deployments in Phase II.
Data analytics for consumers and low voltage networks will start with pilot projects. Smart energy storage and charging stations will also undergo pilot testing before expansion. Drone-based asset management will initially be implemented for the 33 kV network, followed by 11 kV. Flexibility services, including ToU and demand response, will start as pilot projects and expand later. The distributed energy resources (DER) management system and peer-to-peer energy trading will be piloted in DER-rich areas before wider implementation in Phase II.
The complete framework for smart distribution has been finalised and presented to the MoP. A concept note with financial estimates for implementing smart distribution in approximately 10 cities/towns has been submitted to the ministry. Following the MoP’s directions, five cities (NDMC, Guwahati, Varanasi, Indore and Patna) have been selected for smart distribution implementation under the RDSS, with assessments conducted for other cities as well. Detailed project reports for Varanasi, Gurugram, Faridabad, Noida and Kanpur have been sanctioned by the RDSS monitoring committee.
Outlook
Smart grid technologies are essential for integrating prosumers, electric vehicles and renewable energy sources. Regulatory experiments via limited pilot projects are necessary. Projects should encompass entire cities or divisions for comprehensive load forecasting, system analysis and energy audits. Outage management systems, peak load management, demand response and similar technologies should be integrated into smart grid projects. New business models, similar to the ride-sharing model in transportation, should be explored for distribution. Further, consumer flexibility should be leveraged through demand response programmes. There is also a need for setting up a regulatory platform enabling anonymous power exchange for prosumers. Finally, integrated system planning incorporating smart controls will be required in the future to ensure the successful roll-out of smart grids. n
(Based on a presentation by Atul Bali, Executive Director, Powergrid and Director, National Smart Grid Mission, at the 19th Annual Conference on, Power Distribution in India)