Proc. of Int. Conf.

on Emerging Trends in Engineering and Technology

Role of Smart Grid to Power System Planning and

Operation in India
Aadesh Kumar Arya1, Saurabh Chanana2 and Ashwani Kumar3
Department of Electrical Engineering, National Institute of Technology, Kurukshetra

adesh_kumararya@rediffmail.com, s_chanana@rediffmail.com2, ashwa_ks@yahoo.co.in3

AbstractIndian giant power system is facing the various problems. Due to these problems,
the growth of electricity market is very slow. The present grid system in this country is
incapable to handle these discrepancies. To handle these discrepancies and other typical
snags in power system, there is a need to complete automation. Viewing these problems
Smart Grid technologies is to be introduce/embedded in power system of our country. In
these days Smart Grid is the panacea of most of the problems in the power system. The
smart grid will check and eradicate the various bottlenecks and discrepancies in the present
power grid system.
Kew wards: Power grid problems, self-healing process, Demand Response, Smart Grid

I. INTRODUCTION
India is the world's fourth largest energy consumer after United States, China and Russia [1]. India is the
seventh largest country by geographical area; the second largest by population, there are 3.4% of global
energy. India has registered a GDP growth of 6.5% in 2011-12. India's GDP grew by 9.3% in 201011; thus,
the growth rate has nearly halved in just three years. Planning Commission has estimated that during XII Five
Year plan period (2012-13 to 2016-17), for a GDP growth of 9% per year, energy supply has to grow at 6.5%
per year. GDP growth rose marginally to 4.8% during the quarter through March 2013, forecasted from about
4.7% in the previous quarter. The government has forecast a growth rate of 6.1%-6.7% for the year 2013-14,
whilst the RBI expects the same to be at 5.7%. In the right way, meaning of expansion of energy is to getting
the electricity by 2.4 billion people. But 1.4 billion people who still no access the electricity (87% of whom
live in the rural areas) and 1 billion people that only has access to unreliable power networks.
The International Energy Agency (IEA) calculated, India required an investment of at least $135 billion to
provide best facility to access of electricity by its population. Power cuts are main problem in India and the
consequent grid failure to satisfy the demand for electricity has adversely effected Indian economic growth
[2]-[3]. The electricity generation capacity additions from 1950 to 1985 were very low when compared to
developed countries. Since 1990, India has been one of the fastest growing electrical markets for electrical
generation capacity. Indian economy is the ninth-largest in the world by nominal GDP and the third-largest
by purchasing power parity (PPP)[4]. The ability to meet the energy requirement will depend upon Indias
ability to expand domestic production in the critical subsectors such as petroleum, natural gas and coal, and
meeting the balance requirement through imports. In Indian power sector, the central, state government and
private electrical companies have important role. With the private sector growing of power sector at a faster
rate. Indian central government and state governments jointly regulate power sector in India. To develop and
maintain the modern economy & society, the economical, social and environmental sustainability are
DOI: 03.AETS.2013.3.258
Association of Computer Electronics and Electrical Engineers, 2013

required in the emerging future trend of energy. For the economical and social growth, the prime movers are
more important. The electrical energy is main prime mover for this. But there are crises of energy in India as
well as in the whole world. In India, the condition of electric energy is depending on two factors mainly: (a)
the infrastructure of electric power grid (b) sources of energy. To rectify the crises of electrical energy the
renewable energy sources are being used & various types of power plants have to be installed in the different
areas of country [5]. Because the atmosphere condition in different areas of India is very different. The power
grid is unidirectional. The Indian power grids are not secure, reliable and up to the mark. To reduce these
deficiencies, the technology of Smart Grid is required. The Smart Grid can be made by advance
technology, instruments and intelligent management system .Smart Grid is a necessary response to the
environmental, social, and political demands, placed on energy supply. The smart power grid becomes much
more complex than a traditional power grid as time-varying sources of energy and new dynamic loads are
integrated into it. The smart grids complexity will evolve over time and require new technologies for
efficient, reliable and secure operation and control as the demand for electricity increases. The purpose of
Smart Grid is to identify and correct supply demand imbalance instantaneously and detect faults through a
self-healing process that improves services quality, efficiency, enhances reliability and reduces costs
[6].With the advanced technologies, the smart electric power grid will be secure, reliable and bi-directional.
The Smart Grid will be providing green energy, high quality supply of power and integration of renewable
energy resources. The Smart Grid mainly consists two parts (a) intelligent components and (b) intelligent
supervisory systems. It will be more effective in the operation, control & monitoring of the electric power
system. The continuously access of electricity is the economic and social driver to achieve the goal of India.
With the need of clean and green energy sources, economy rapidly growing increases the incomes of
household, limit domestic reserves of fossil fuels and reduce adverse impact on the environment of rapid
development in urban and regional areas [7].
According to Indian Ministry of Power, there is proposed to set-up about 14.1 GW of new thermal power
plants under construction by December 2012, so are 2.1 GW capacities hydropower plants and 1 GW
capacity nuclear power plant [8]. India's installed generation capacity reached top 200 GW in 2012.
Government of India has initiated the methods to rapidly expand education of energy in the country, to
introduce courses related to energy capacity addition, maintenance, production in the curriculum of the
educational institutions. This initiative includes renewal and conventional of energy.
State Renewable Energy Agencies have been study of taken the initiatives to organize short-term course for
installation, maintenance and operation of renewable energy systems in the academic and industrial
organization. Renewable Energy Chairs have been developed in IIT Roorkee and IIT Kharagpur [9].
II. PRESENT POWER SCENARIO IN INDIA
Indian power sector suffers from high transmission and distribution losses, electricity shortages, poor
financial health of the State Electricity Boards, AT&C (non-technical) losses and big demand and supply gap
in electricity power [10].According to ministry of power, in Indian power grid transmission and distribution
losses nearly about 26% of total electricity production with some states as high as 62%, including nontechnical losses such as energy theft losses as may go as high as 50% [11]. India's network losses exceeded
32% in 2010 including non-technical losses, compared to world average of less than 15%. Both technical and
non-technical factors contribute to these losses, but quantifying their proportions is difficult. But the
Government pegs the national T&D losses at around 24% for the year 2011 & has set a target of reducing it
to 17.1% by 2017 & to 14.1% by 2022. A case study in Kerala estimated that replacing faulty meters could
reduce distribution losses from 34% to 29%[12].According to the Central Electricity Authority, at the end of
April 2012, the installed power generation capacity of India was 182,345MW and plans to add 100,000MW
during the 12th Plan period (2012-17).,while the per capita energy consumption was 733.54 KWh, but this
will be grow upto 1000 kWh in the near future. According to the Ministry of Power, the total installed
capacity of power is 225.133 GW in India as of May 2013[13]. Out of this, state sector, Central sector and
private sector contribute 86,343.35 MW (40.77%), 62,963.63MW (29.73%) and 62,459.24 MW (29.49%),
respectively[14].Non Renewable Power Plants constitute 87.55% of the installed capacity and 12.45% of
Renewable Capacity. In India, the present power scenario has resorted the need for integration of technology
that enables efficient management of use of power. The current grid is aging, inefficient, congested and in
capable of meeting future energy needs [15], [16]. The billing and collection efficiencies are in the range of
18%-62% with an average national level figure estimated at around 33.07%, primarily on account of power
theft and inefficient billing and collection. The rate of return of the state power sector is around 18% [15].
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The Grid failures have become severe problems in India. This problem has caused due to the insufficiency
of present power Infrastructure and the fundamental re-engineering to India. To overcome the present power
scenario, Government of India has been taken the great initivitve to improve and enhance the current power
system using Smart Grid Technology. Now-a-days, Smart Grid is at the initial stage in India. Yet the
standards and specifications are not declared for Smart Grid. Smart Grid can be implemented by considering
present power grid problem, environmental conditions, management conditions and electricity market
problems. The implementation of Smart Grid in the present power scenario is a main target of India for the
continuous rising consciousness of energy and environment [17].
III. PRESENT GRID TO SMART GRID
Traditionally, the term grid is used for a power system that may support to the following four operations:
power generation, power transmission, power distribution, and power control [18]. A power grid is a grouped
name for all the electrical wire, transformers and infrastructure that transport electricity from power plants to
consumers. The present day grid is unidirectional and does not maximize technological developments.
The operation of present grid is based only one-way communication from the utilities to the users. The power
flow is unidirectional from centralized supply sources (power plants) to demand. The information flow is
from lower side to higher operational centers. The present electrical grid system is shown in figure (1a). Due
to many factors, a major overhaul is requirement in the old power grid [5]: (a) A large gap between supply
and demand (b) Very high transmission and distribution losses (c)Manual operation of the network mainly
(d) Pooruse of ahugepotential for renewable energy (e) lowmeteringefficiencyandless friendly user
involvement (f) Lack of utilization of advancements in information technology in the power grid.
However, the operation of the smart grid is based on both side communications for information flow and
power flow on the basis of power engineering, communication engineering, digital and information
technologies as shown in Fig. 1(b). In the both side communication process, the users communicate with
utilities on hourly or daily basis to know about relevant information. After invention of the Smart Grid, the
participation of customers will be effective for the supply of electricity and consumption [19]. The Smart
Grid is capable to connecting the electricity sources to the other distributed generation sources such as
batteries, backup devices, Plug-in Hybrid Electric Vehicles (PHEVs), solar panels, wind energy sources,
etc,[20]. This aspect of the smart grid is expected to contribute to a quite complicated real-time consumer
power demand side management. The Smart Grid presents flexible and reliable power distribution through a
bi-directional process between the generation companies and the smart meters on the users-side. With the
new development in power system, the smart grid recommended the seamless integration of renewable
energy sources into the present electrical grid [21].

Utilities

Transmission System

Consumers
Fig 1(a) represents the present electrical grid

However, with increasing level of renewable energy sources especially wind power [22] the intermittent and
fluctuating features of wind generator increase the uncertainties and challenges for future smart grids [22-23].
One of the smart grid objectives is to update the power system automation which includes transmission,
distribution, sub-station, individual feeder and customers using latest technology. With the introduction of
smart grid, consumers can manage their energy consumption by monitoring their voltage and power [24]. By
deploying the smart technologies, demand response and load management can be enhance to makes the
power transmission system more efficient, encourage renewable energy resources, and give facility to
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consumer for control over their usages and costs. At present, Indian Government has more attention on the
Smart Grid technology to cop-up the energy crises in future. The Indian Government considers to the Smart

Utilities

Consumers

Power Flow

Renewable Energy
Sources & Storage

Smart Meter
Smart Meter

System

Information Flow

Fig 1(b) represents Smart Grid

Grid main features for nation development [25]. A comparison between present electrical grid and smart grid
can be refereed in table (1).
List of Benefits and Requirements of Smart Grid: According to the report from NIST [26], the anticipated
benefits and requirements of Smart Grid are the following:
1. Improving power reliability and quality.
2. Optimizing facility utilization and averting construction of back-up (peak load) power plants.
3. Enhancing capacity and efficiency of existing electric power networks.
4. Improving resilience to disruption.
5. Enabling predictive maintenance and self-healing responses to system disturbances.
6. Facilitating expanded deployment and integration of renewable energy Sources.
7. Accommodating distributed power sources.
8. Automating maintenance and operation.
9. Reducing greenhouse carbon emissions by enabling electric vehicles and new power sources.
10. Reducing oil consumption by reducing the need for inefficient generation during peak usage periods.
11. Increased opportunities to improve grid security.
12. Enabling transition to plug-in electric vehicles and new energy storage options.
13. Increasing consumer choice.
14. Enabling new products, services, and markets.
IV. DEFINITIONS OF SMART GRID
While there is noformal definitionof the smart grid, but according to the features of it based on literature, the
Smart Grid is a modern grid which consist the advanced technologies of electrical engineering,
communication
engineering
and
software
engineering
with
the
present
power grid.
According to the U.S. Department of Energy Smart Grid System Report ,smart grid as todays grid joined by
advanced metering and control devices such as information technology, sensors, high speed and real-time
two way communications, energy storages, distributed generation and in-home energy controllers[28].
The State Grid Corporation of China interprets the Smart Grid [29] as A strong and robust electric power
system. It is backboned with Ultra High Voltage (UHV) networks; based on the coordinated development of
power grids at different voltage levels; supported by information and communication infrastructure;
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characterized as an automated and interoperable power system and the integration of electricity, information,
and business flows.

TABLE I: C OMPARISON BETWEEN THE PRESENT ELECTRICAL GRID AND THE SMART GRID [27]
S.No
1
2
3
4

Present Electrical Grid

Electromechanical
devices
Centralized Source of
Supply
One way directional
Communication
Restoration through Manual

5
6

Few sensors
Limited price
information, static tariff

7
8

Operation based on historical

experience
Carbon based generation

9
10

Few customer choices

Limited control

Smart Grid
Digital devices
Centralized and distributed
power generation
Two way directional
communication
Restoration through Selfhealing
Sensors throughout
Full price information,
dynamic
tariff, demand response
Operation based on realtime data
Limited Carbon base and
green power credits
Many customer choices
Pervasive control

V. CHARACTERSTICS OF SMART GRID

The Electric Power Research Institute (EPRI), the U. S. National Technology Laboratory and the Smart Grids
European Technology platform have defined seven principal characteristics of a smart grid.
To full-fill the objective of electrical power sector, the Smart Grid has the great characteristics [30-31].
1. Safe and Reliable:The electricityisstill on thepower supply capacityfortheuser, rather thana large
areapower outagein largeelectricity failures, malfunctions, natural disasters andextreme weather, ormanmadedamagedoneto maintain.
2. Efficient and Economical:power grid, will be able toimprove the economic benefitsthroughrelated
policyinnovation, managementandenergyefficient, andmarket competitionorderly. Powernetworks
aresupportedto provide forrational allocationof resourcestopowerdealeffectivelywith theelectricity
market, to reducepower lossand improvethe energy efficiencyand finally.
3. Clean and Green: With the large-scale of renewable energy sources, Smart Grid can reduce the
potential impact on the environment e.g., carbon emission reduction, more green energy.
4. Optimization: The most appropriate price of the electrical energy provide to the society. Smart grid to
optimize resource utilization; reduce investment costs and operation and maintenance costs. Quality of
power meets industry standards and consumer needs.
5. Interactive: With the interaction and real-time response to the power market and users, the services are
increased. Mature wholesale market operations in place, well integrated nationwide and integrated with
reliability coordinators.
6. Self-healing: The new power grid has a features Self-healing. It is a process that improves services
quality, enhances reliability and reduces costs. It identify and correct supply demand imbalance
instantaneously and detect faults.
7. Flexible and Compatible: The new power grid can support correct, reasonable integration of renewable
energy resources and it is suitable for integration of distributed generation and micro power grid.
Moreover, it can improve and enhance the function of demand side management to achieve the efficient
interaction capability with consumers. It is compatible with the present grid also.
8. Integrated:A unified platform and model are employed on a grid. It can obtain good quality of
integration and information sharing of power grid and to achieve standard, normative and refined
management that integrates the infrastructure, processes, devices, information and structure of market so
that electricity can be generated, distributed, and used more efficiently and cost effectively.
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VI. COMPONENTS OF SMART GRID

The Smart Grid consist the various component. All components are inter-related and inter-linked too. All
components must be integrated to enhancement the reliability, more efficiency and security as shown in fig.3.
Smart Meter: It is a foundation for Smart Grid.It is a measuring device which is used to measure the energy
consumed by the user. It provides the two-way communication between energy providers and consumers.
When demand is high, the smart meters permit utilities to communicate with customers via e-mail or other
communication method, so that consumers can reduce their use of electricity [32].
The main functions of smart meter are following [33]:
1. Respective statistic of multi-period multi-rate model power, measures active power and reactive power
usage amount. Smart meter should have two-way metering function, and independent storage space for
storing electrical energies.
2. Supports bi-directional communication, can send data
and receive command, such as sending real-time power usage information, receiving real-time rate standard
and meter program upgrade set etc. remote operations.
3. According to the demand response requirement, achieves the intelligent restraint of total load. Smart
meter and smart interactive terminal will work together to realize smooth transition to an isolated system
when power grid fails.
4. Supports multipurpose value-added service, for example, reading smart gas meter, water meter, etc.
According to the functions of smart meter, the block diagram of smart meter as shown in figure 2.

Fig. 2 Block diagram of smart meter [33]

Distribution Automation: IEEE has defined Distribution Automation (DA) system as a system that enables
an electric utility to remotely monitor, coordinate and operate distribution components, in a real time mode
from remote locations[34].The distribution automation consists the four main components e.g., field
instrumentation, RTUs, communication engineering and automation software.
Demand Response Management: The definition of demand response that was used by the U.S. Department
of Energy [35] Changes in electric usage by end-use customers from their normal consumption patterns in
response to changes in the price of electricity over time, or to incentive payments designed to induce lower
electricity use at times of high wholesale market prices or when system reliability is jeopardized. Demand
Response, is most important component to electrical utilities to get higher efficiency and smoother load curve
[36]. Demand response plays an important role to the retail and wholesale power markets. Demand response
means by which demand will be dynamically and continuously balanced with supply-side resources to
produce a cost effective electricity system. It should have both supply sides and demand sides that respond to
transparent pricing schemes.
Demand Side Management [37]: Demand management is a mechanism to influence the ability and
willingness to reduce electricity consumption of customers.It is a program of utility in order to fine-tune
power consumption pattern of consumers, according to the energy production of utility and distribution
capacity. DSM programs consist of the monitoring, implementing, and planning activities of the utilities that
are designed to encourage consumers to modify their level and pattern of electricity consumption.
Demand management is based on a combination of the use of high-efficiency equipment and the efficient use
of electricity through good operating practices.
Demand Side Management (DSM) is the implementation of policies and measures that serve to control,
influence and usually reduce demand of electricity. The aims of DSM to enhance the electricity-consuming
systems reduce energy consumption, while maintaining the same level of service and comfort.
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Smart Appliances: The Smart Appliances is also important component of smart grid. The consumption of
energy is very less in smart appliances. The advantages of smart appliances are not limited to making life
easier, but very much helpful in energy saving also.
Transmission Automation: The power transmission system can be augmented by embedded career
communication system along with the exciting transmission system and newer which are under pipe line.
This automation can be supported by optical fiber communication. All types of information will be available
at every point of the power system which will be excellent facility for all the power personals engaged in the
system and even to consumers also. Transmission automation system can be developed by joining the smart
substations, smart communication system and smart measurement, command and control centers [38].

Fig. 3 Smart Grid Components

Electric Vehicles [39]: The wide use and deployment of an electric vehicle consists two concepts (a) Gridto-Vehicle (G2V) and (b) Vehicle-to-Grid (V2G). In G2V, electric vehicle are powered by stored electricity
originally from an external power source, and thus need to be charged after the batteries discharged. This
technology is conceptually simple.
One solution to mitigate the impact of electric vehicle on the grid is to optimize their charging profile. In
other words, we need to keep the peak power demand as small as possible, taking into account the extra
power consumption from the vehicle charging. This can be done by coordinating the charging operations of
different electric vehicle so that they are not charged at the same time.
In V2G, electric vehicle provide a new way to store and supply electric power. V2G-enabled electric vehicle
can sand the signal to the grid to deliver electricity into the grid, when they are parked and connected to the
grid.
Electric Storage: Electric Storage technologies such devices as advanced batteries, pumped hydro and others
require electricity to be stored and dispatched during times of peak demand or to provide power from
renewable resources.
Renewable Energy Sources: TheRenewable Energy Sourcesare most important component of Smart
Grid.Renewable Energy Sources are following types: wind generation small hydro, micro hydro, solar
technologies bio-gas. To protect environment and for sustainable development the importance of renewable
Energy sources cannot be overemphasized It. is an established and accepted fact that renewable and nonconventional forms of energy will play an increasingly important role in the future as they are cleaner and
easier to use and environmentally benign and are bound to become economically more viable with increased
use. Because of the limited availability of coal, there is considerable international effort into the development
of alternative/new/non-conventional Renewable/clean sources of energy.

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VII. DRIVERS FOR SMART GRID IN INDIA

The most important factors that will drive to implementation the Smart Grid in India are discussed as
follow[40]:
The global movement toward smart grid is driven by improving the efficiency, improved customer
satisfaction, improved energy efficiency and environmental impact. These are elaborated below:
1. Operational Efficiency: Increase operational productivity; reduce operating cost and capital costs,
enhancement in physical and cyber security.
2. Efficient Energy Use: Optimize the utilization, the growing demand and improved utilization of
existing resources.
3. Customer Satisfaction: Improvement in reliability matrix, empower users to control electricity
utilization, stronger communications.
4. Environmental Aspects: Reduce green house gases emissions with utility, give more environmental
options to consumer, and adhere to regulatory mandates.
VIII. RECENT INITIATIVES TO SMART GRID I N INDIA
The power system in India has been faced a series of problems e. g, inefficient structure, inadequate
generation, frequent outages, poor power quality, etc [5]. Government of India has been initiated the various
reforms with the Indian Electricity Act 2003 and programmes like accelerated power development and
reforms programme(APDRP) and later its restructured version RAPDRP to improve the generation,
transmission and distribution sector in India. To upgrade the existing capacity of Indian power sector make a
direct transition to a "smart" system by capitalizing on energy, information and communication technologies.
The applications of Smart Grid with PMU, wide area measurement and self-healing systems are considered
for the power transmission, grid operation and management [41]. The Utilities have already been
implementing some of technologies such as supervisory control and data acquisition (SCADA), automated
meter reading (AMR) and geographic information systems (GIS). The smart grid system will ultimately
integrate these various scattered applications. In [24] the authors discussed the some smart grid deployment
strategies for Indian power sector. The distribution reforms like Restructured Accelerated Power
Development and Reforms Programme (RAPDRP) [42] mostly focus on reducing AT&C losses and adoption
of information and communication technology (ICT). The India Smart Grid Task Force (ISGTF) is an
interministerial group and will serve as government focal point for activities related to smart grid. Five
working groups have been constituted to take up the different task related to smart grid activities: WG1
Trials/Pilot on new technologies, WG2 Loss reduction and theft, data gathering and analysis, WG3Power
to rural areas and reliability & quality of power to urban areas, WG4Dist Generation & renewable, and
WG5Physical cyber security, standards and spectrum [43]. The following mentioned power sector
companies in India already took initiatives
1.
2.
3.
4.
5.

NDPL Smart Grid Initiatives

BESCOM Smart Grid Project
West Bengal State Electricity Distribution Company Ltd (WBSEDCL) Smart Grid Project
Smart Grid Customer Demo Center (CDC) by Mahindra Satyam in partnership with Schneider
electric
Smart Mini-Grid System at The Energy and resources Institute (TERI)

IX. CHALLENGES & LATEST TECHNOLOGY FOR DESIGNING OF SMART GRID

(a) The major challenges to be faced while designing of smart grid technology are as follows [44]:
1. System planning level: Too many decision makers, opposition to new plants and lines, lack of predictive
real-time system controls, inadequate focus on supply-side reliability solutions, proper tax incentives for
predictive real-time system, time dependent controls, pricing information and tax incentives for demand side
management(DSM) technologies.
2. Energy selling level: Public resistance to deregulation, lack of consumer participation in DSM,
environmental incentives/penalties to be addressed, consumer access to pricing information to enable DSM
technology.
3. Technology level : Communication bit falls for real-time management of grid, optimal power flow
control, automatic meter reading, reduction in energy consumption by use of improved technology,
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harnessing alternate energy sources and feeding the grid from them, energy storage devices, innovation in
smart sensorsand automation.
(b) The latest technology to be used for Smart Grid is as
follows:
1. Use of Superconductors for transmission lines, Transformers, Generators, HT Cables Nano materials
going to play a major role.
2. The sophisticated revenue models they will employ to shape customers' behavior.
3. Easy-to-install, low-cost sensors to measure energy use with high _ resolution
4. Networked power electronics for everything from solid state New Technology development opportunities
lighting to solar micro-inverters
5. Grid-scale electricity storage to buffer transients in supply and demand.
6. Electrified-vehicle infrastructure including batteries and charging stations (Few MW)
7. Universal Remote Control to a Set-top Box which includes Home Control
8. Fuel Cell
X. CONCLUSION
In the paper, the features of present power system operation in India have been discussed. The comparison of
present power grid and smart grid has been elaborated and the comparisons prove the superiority of smart
grid system. Viewing the technological advancement in the world in power system, India should also adopt
the latest methods like Smart Grid for the operation and management of power system. The integration of
smart grid technologies will help the present power system to manage and eradicate the existing problems in
the present power management in Indian power sector.
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