India Smart Grid Roadmap 2016 Update Shalabh Srivastava

India Smart Grid Roadmap: 2016 Update Shalabh Srivastava Principal Accenture Role of Smart Cities in New Programmes of Govt. of India

Background: Why Update? 2013 2016 NSGM UDAY Tariff Policy LED Smart City Smart Grid India Smart Grid Vision and Roadmap National Electric Mobility Mission 175 GW 100 GW Solar 40 GW DRE Urban - Rural 100 Smart Cities Smart Meter Smart Home 2

Local Indian Context Europe/ America Supply Chain / Competition Single vs Multi Utility Socio-Economic Environment Transmission & Distribution Electricity Distribution City Gas Distribution High Manpower Cost + + Retail Low Theft India Transmission Electricity Distribution & Retail High Theft + Distribution & Retail Gas Distribution & Retail Drivers for Growth of Smart Grids in India ü ü ü Loss Reduction Lifeline Power TOU Tariff Rooftop Solar Smart City Electric Vehicle Low Manpower Cost 3

Roadmap Features based on Smart Grid Drivers for India Smart Grid Driver: Loss Reduction Smart Metering of entire Network, down to transformer Smart Metering of all consumers under a transformer Energy Audit: • Granular • Near Real Time Disconnection / Reconnection to enforce Recovery Policy Change to enable instant disconnection on red-handed theft Policy Change: Auto-disconnect on exceeding Sanctioned Load by some margin Technology Enablement + Policy Changes = Business Outcome Policy Change: Load Curtailment at Locality Level 4

Roadmap Features based on Smart Grid Drivers for India Smart Grid Driver: Lifeline Power Supply to Bottom of Pyramid Smart Metering of entire Network, down to transformer Smart Metering of all consumers under a transformer Technology Enablement Policy Change: Autodisconnect on exceeding Sanctioned Load by some margin + Policy Changes = Business Outcome Policy Change: Load curtailment at transformer Level 5

Roadmap Features based on Smart Grid Drivers for India Smart Grid Driver: TOU Tariff Smart Metering of all consumers Model Regulations for TOU Tariff Reduce Peak Load Elastic Demand Inelastic Demand Increase in Peak-time Revenues for Discoms Model Regulations for Demand Response 6

Roadmap Features based on Smart Grid Drivers for India Smart Grid Driver: Distributed Renewable Energy Rooftop Solar in Cities Net Metering: ü Policy ü Technology Smart Metering with Dual Energy Source and Bidirectional Flow DRE in Cities + DRE in Villages = Solar Minigrids in Remote Villages Offgrid Minigrid: ü Policy ü Technology Future integration of Offgrid Minigrid with Discom Grid Renewable Growth riding on Smart Grids 7

Roadmap Features based on Smart Grid Drivers for India Smart Grid Driver: Electric Vehicles Policy framework for V 2 G Charging Infrastructure: ü Physical Infra ü Remotely Managed Operations ü Online Payment Settlements Vehicles as Transport Technology Evolution leading to Reducing Prices: Ø Electric Vehicles Ø Energy Storage (LIB) Ø Renewable Energy (Solar) Vehicles as Energy Storage + Charging Infrastructure = Electric Vehicles’ takeoff in India 8

Roadmap Features based on Smart Grid Drivers for India Smart Grid Driver: Cost of Smart Meters LED “Model” Metering Standards Standardization of Specs + Testing & Certifications Bulk Sourcing by a nodal body = Entry of new meter manufacturers, especially SME Pan India Smart Metering Rollout 9

Roadmap Features based on Smart Grid Drivers for India Smart Grid Driver: Foundation for Analytics & Digital Technologies Utilities need to mobilize Analytics capability… …through right mix of external collaboration… …and in-house capability development + Power Purchase Portfolio Optimzation A High Priority Area of Applying Analytics: Day-ahead Load Forecast Accurate Demand Forecast = Short to Medium Term Demand Forecast + Price Forecast Very Long Term Demand Supply Forecast from various sources Cost Savings for Discoms 10

Roadmap: Smart Grid / Smart City Interplay Globally, TELCOs are taking lead in becoming an Anchor for smart city Data Backbone In India, we believe Electricity Discoms are best suited to take up this role Discoms could best serve as the Public Partner of PPP Model Wherein Private Players could bring in the much needed investment into Smart Cities market Benefits to the Citizen? Facilitate Governance? Return for the Investor? 11

Roadmap: Smart Grid / Smart City Interplay How Discoms can serve as the Anchor for sharing their pre-existing Data Backbone Database of City’s Infrastructure: Customer Data: Consumer = Citizen Customer and Meter Data on GIS: Premises = Property Customer and Billing Data: Bill = Proxy for Income Customer, Billing and Payment Data: Payment = Creditworthiness § Streetlights, Traffic Lights, Toll Plaza (Roads) § Petrol Pumps, Police Stations, Fire Stations… (Public Facilities) Organisational Wherewithal: § Manpower with intimate knowledge of last mile Discom’s Billing Database is the only pre-existing database that exhaustively links for entire cities: LT Poles mapped on GIS: Huge Upside waiting to be tapped Property Citizen Income Creditworthiness § Streetlight, Solar, Battery, Video Surveillance, Advertisement, Telecom Equipment… 12

Roadmap: Smart Grid / Smart City Business Model Institutional Buyers Industries Customer Database PPP SPV Commercial Establishments Poles SPV ~ = “UBER” with Poles and Customer Leads available on call Households Consumers: Target Market Discom ~ = “Google”, with huge database Solar Vendors 5 * Rated Electric Appliances LED Vendors Advertisers Vendors of Green Energy Solutions (Illustrative; Not Exhaustive) 13

Roadmap: Smart Grid / Smart City – How to Operationalize? Gas MIS Integrated Analytics Specialized applications for e. Governance, Utilities, Safety, etc. Generic Applications Water Electric Step 1. Use Electric Utility to serve as the first Smart Utility Step 2. Use water as the add-on Smart Utilities, to reuse the people-&-property database created for electric Utility Step 3. Piggyback CGD on top of electricity applications Common Database of Citizens, Premises, etc. Common ICT Infrastructure & Telecommunication Database Layer 1. Common Foundation: (i) Infrastructure, (ii) Database and (iii) Generic Applications Layer 2. Specialized Applications for specific services Layer 3. Integrated Analytics 14

“THANK YOU” Contact: Shalabh. Srivastava@Accenture. com