ISGF Smart Grid Bulletin - Vol 2 Issue 7 (July 2015)

Volume 2, Issue 7, 2015Deen Dayal Upadhyaya Gram Jyoti Yojana'(DDUG JY) Launched by Prime Minister ModiTo ensure round the clock power supply to farmers and rural households Prime MinisterthNarendra Modi launched the 'Deen Dayal Upadhyaya Gram Jyoti Yojana' (DDUGJY) on 26July, 2015. The demand of power in rural areas is increasing day by day due to changingconsumer base, improving living standards for which augmentation of rural infrastructureneeds to be regularly undertaken. The investment in the electricity distribution network is lowdue to bad financial health of the distribution companies. DDUGJY scheme will help thediscoms to overcome the rural electrification problems and improve the reliability and qualityof supply.The major components of the new scheme are feeder separation (rural households andagricultural); strengthening of sub-transmission and distribution network; metering at all levels(electronic meters for feeders, distribution transformers and all categories of consumers);micro grid and off grid distribution network & rural electrification- Already sanctioned projectsunder RGGVY will be completed. The scheme has an outlay of Rs 76,000 crore forimplementation of the projects under which the Centre shall provide grant of Rs 63,000 crore.All the discoms including private players and state power departments will be eligible forfinancial assistance under this scheme. Rural Electrification Corporation Limited (REC) will benodal agency for all the operations of the scheme. Decentralized Distributed Generation(DDG) from conventional, non-conventional & renewable energy sources is envisaged inDDUGJY for villages where gird is either not feasible or not cost effective. The scheme wouldhelp in:• Improvement in hours of power supply in rural areas• Reduction in load shedding for farmers• Improvement in billed energy based on metered consumption• Providing access to electricity to rural householdsIN THIS ISSUE• Deen Dayal Upadhyaya Gram ...........................1Jyoti Yojana' (DDUGJY) Launched byPrime Minister Modi• India Smart Grid Forum Announces ..................2ISGF-VJTI Joint Certificate Courseon Smart Grids• ISGF & ERDA Announces..................................23 Days Foundation Course on Smart Grid• Smart Grid Updates:•••••••••ooooPolicy, Regulations & Standards ................ 3Key Appointments and Transfers .................4Technology & Projects................................ 4Pilot Projects in India...................................6• ISGF invites all Indian Utilities to .......................5Join Smart Utilities GroupSmart Grid Events .............................................8Key Contacts .....................................................8Management Development Program ................9(MDP) on “Smart Electric Grid for 24x7 Power:Development and Deployment”Second EU-India Smart Grid Workshop.............9OpEd: Smart Cities and Lessons.....................10from Smart GridsISGF Welcomes ...............................................11New Appointments in MoPthISGF Announces 5 Workshop on ...................11Cyber Security for Power SystemsISGW 2016.......................................................12thThe 16 Regulators & ......................................12Policymakers Retreat 2015Please visit www.indiasmartgrid.orgfor more information or to download apdf version of the bulletinFor receiving copies of SMART GRIDBulletin, please write tosgbulletin@indiasmartgrid.org1 | SMART GRID Bulletin | Volume 2, Issue 7 | July 2015www.indiasmartgrid.org

Smar t Grid Updates: Policy, Regulations & StandardsMNRE Issued Draft Renewable Energy Act 2015MNRE issued Draft Renewable Energy Act to promote the production of energy from renewable energy sources, in order to reducedependence on fossil fuels, ensure energy security and reduce local and global pollutants, keeping in view economic, financial, social andenvironmental considerations, and for matters connected therewith or incidental thereto. Act mandates the constitution of a bodies likeNational Renewable Energy Committee and National Renewable Energy Advisory Group within three months from the date ofcommencement of this Act. Within six months of this Act, the Ministry shall, in consultation with the State governments, prepare andpublish, the National Renewable Energy Policy. A National Renewable Energy Fund will also be created which will be operated by theCentral Government. Act also focuses on formulation of new or existing corporate entity that will be designated as Renewable EnergyCorporation of India which will act as a national level RE procurement entity and support development of RE investment zones across thecountry. Read More: http://mnre.gov.in/file-manager/UserFiles/draft-rea-2015.pdfBihar State Electricity Regulatory Commission (BERC) issued Final “Rooftop Solar Grid Interactive Systems Based on NetMetering”The eligible consumer should install Rooftop Solar System under Net Metering arrangement. Capacity of individual Rooftop PV Systemwould be equal to sanctioned load of the consumer provided system to be installed shall not be less than 1 KWp and not more than1MWp. Cumulative capacity of grid connected Rooftop solar system to be allowed shall not exceed 15% of the peak capacity ofDistribution Transformer. Electricity generated from rooftop solar system shall not be more than 90% of the electricity consumption byeligible consumer at the end of settlement period. Net metering arrangement can be self-owned or third party owned. Consumer availingNet metering scheme shall be exempted from wheeling and Cross subsidy surcharge.Read More: http://berc.co.in/media/Regulation/Net%20Metering%20Regl-Gazette.pdfMERC issued draft (Terms & Conditions for determination of Renewable Energy Tariff) Regulations, 2015Maharashtra Electricity Regulatory Commission (MERC) issued draft Tariff Regulations which shall apply to new RE Projects which arecommissioned in the State of Maharashtra for the generation and sale of electricity to Distribution Licensees in the State, are EligibleEntities for the purposes of these Regulations, and whose tariff is to be determined by the Commission under the provisions of Section62 read with Section 86 of the Act. Tariff period specified for wind project is 13 years, while for solar it is 25 years. Treatment of RE plantsexcept Biomass and Co-generation will be as "must run" and shall not be subjected to "merit order despatch", however if an appropriateframework for scheduling and forecasting is developed, the same may be adopted. Capital cost mentioned for wind power plant is 597.79Lakhs/MW linked to CERC indexation for future years and for Solar it is 605.85 Lakhs/MW for FY 16. Rooftop and small scale solar (upto5 MW) tariff will be 0.50/kWh higher than large scale plantsRead More: http://www.mercindia.org.in/pdf/Order%2058%2042/Draft_RE_tariff_Regulations__2015.pdfMaharashtra Issued Renewable Energy Policy 2015Government of Maharashtra issued Renewable Energy Policy 2015. The total capacity of 5000 MW of wind has been envisaged in thepolicy, out of which 1500 MW will be for RPO fulfilment, Supervision charges of MERC shall not be applicable for power evacuationarrangement for new projects. Under this policy 7500 MW Solar PV Power projects shall be developed. Out of which 2500 MW Solarpower generation shall be developed by MAHAGENCO to fulfil their RPO under (public private partnership) PPP model. Remaining 5000MW power generation shall be developed by different project developers.Read More: http://www.mahaurja.com/PDF/MEDA_ConsolidatedPolicy2015.pdfCalifornia plans to integrate distributed resources into its ISO marketA New era of grid operations is about to begin in California. The state's grid operator is preparing to offer aggregators of distributedenergy resources (DERs) the opportunity to sell into its marketplace, the first in the nation to do so. The plan has the full attention of thestate’s utilities and its solar and energy storage providers. The resources on the customer side or the distribution grid side of the electricsystem, such as rooftop solar, energy storage, plug-in electric vehicles, and demand response are typically below the 500 kW minimumsize required to sell into the ISO system. But with “proper aggregation” they will offer multiple operational benefits and ISO is working tofacilitate the participation of the DER provider (DERP) in wholesale markets consistent with reliable system operations. The plan “allowsthe aggregator, which could be a utility or any other entity, to have access to the ISO electricity marketRead More: http://www.utilitydive.com/news/how-california-plans-to-integrate-distributed-resources-into-its-iso-market/401123/New York Regulators Passed Demand Response for AllExpanded retail-level demand response (DR) programs will take effect as soon as July 1 in targeted areas of upstate New York undermeasures approved by the New York Public Service Commission. The PSC ordered the five distribution utilities outside of New York City3 | SMART GRID Bulletin | Volume 2, Issue 7 | July 2015www.indiasmartgrid.org

to offer dynamic load management to customers. Payments would be made to customers who reduce load during “called demandresponse events,” when load is expected to reach its peak. The programs are mandated to be available everywhere by July 2016, withimplementation plans due in January. DR is already available in the Consolidated Edison service territory.Read More: http://www.rtoinsider.com/new-york-demand-response-15883/Brazil, the United States and China to have 20% Renewable Energy by 2030Brazil, the United States and China — three of the world’s top 10 greenhouse gas emitters— all announced new goals to curb climatechange. President Obama and Brazilian President Dilma Rousseff, leaders of the Western Hemisphere’s, pledged each country to get 20percent of its electricity by 2030 from renewable sources, not including hydropower.Read More: http://www.washingtonpost.com/news/energy-environment/wp/2015/06/30/china-brazil-and-the-u-s-all-announce-newclimate-and-clean-energy-goals/SDG&E Proposes a ‘Bring-Your-Own-Battery’ TariffSan Diego Gas & Electric (SDG&E) wants to try out a novel method to get customers to install behind-the-meter batteries and makethem available for utility needs: a tariff that would reward customers who bring their own batteries to the grid. SDG&E unveiled theproposal as part of its distribution resource plan, the document that it and California’s other two investor-owned utilities turned in to stateregulators. Much like similar utility pilot projects around the country and the globe, it’s meant to to see if batteries can reliably defer thecosts of upgrading local grid circuits and transformers, as well as help balance energy supply and demand at a system-wide scale. Thispilot will provide an opportunity to test the ability of customer-owned, behind-the-meter storage assets.Read More: http://www.greentechmedia.com/articles/read/sdges-proposes-a-bring-your-own-battery-tariffRenewables Green Energy Program for New YorkNew York recently announced a game-changing Shared Renewables program for the state. The community net metering system willfinally allow New York residents to choose from a number of renewable energy options to meet their power needs. In addition toproviding individual households with a choice of renewable energy sources, the initiative will also help the state as a whole movetowards becoming more sustainable. As part of the new program, New Yorkers will be able to subscribe to local renewable energyprojects of their choice and will be eligible to receive a utility bill credit for their portion of the energy produced.Read More: http://inhabitat.com/nyc/governor-cuomo-announces-landmark-shared-renewables-green-energy-program-for-new-york/Key Appointment and TransfersPolicy, Regulations & Standards (Contd...)• Mr. Badri Narain Sharma has been appointed as Additional Secretary, Ministry of Power• Mr. Bhagwati Prasad Pandey has been appointed as Additional Secretary, Ministry of Power• Mr. M.K. Shankaralinge Gowda has been appointed as Chairperson, Karnataka Electricity Regulatory Commission• Mr. S Venugopal has been appointed as Member, Kerala State Electricity Regulatory Commission• Mr. Anupam Anand has been appointed as Managing Director, Utter Gujarat Vij Company LimitedSmart Grid Updates: Technology & ProjectsNew York awards grants for building 83 microgridsThe Governor of New York recently announced thatapproximately USD 100,000 each will be given to 83communities across the state to support innovative microgridprojects. This initiative was a part of the NY Prize microgridcompetition that will support a new generation of communitybasedpower under the Energy Vision strategy. Thesecommunity microgrids will be able to operate as standalonesystems by operating independently of the main grid. Readmore: http://on.ny.gov/1DL6t3r5-year Pacific Northwest Smart Grid Demonstration projectcompletedThe Pacific Northwest Smart Grid Demonstration project, oneof the largest and most comprehensive smart grid4 | SMART GRID Bulletin | Volume 2, Issue 7 | July 2015demonstration is now complete. The USD 179 million project thatwas co-funded by the US Department of Energy (DoE), was theonly demonstration that included multiple states and cooperationfrom multiple electric utilities, including rural electric co-ops,investor-owned, municipal, and other public utilities. It was foundthat the peak power demand reduced by 7.8% by using transactiveDR equipment on 30% of the regional grid. In future, policy reformswould be neededin order to increase consumer engagement.Furthermore, interoperability, particularly while integratingtechnology into the same project, was cited as a major problemwhich delayed the overall project. Download the complete report:http://1.usa.gov/1LS4RwSUS power grid at a trillion-dollar risk in case of a cyber attackIn a recently released report on ‘Business Blackout’, it is reportedthat that the US electric grid could cause over a USD 1 trillionwww.indiasmartgrid.org

Technology & Projects (Contd...)damage if a cyber attack is launched successfully. The reportevaluates the financial impact of a scenario in which 15 statesand Washington, D.C. suffers a blackout as a result of cyberattack on the power grid. The US ICS-CERT said that 32% of itsresponses to threats against critical infrastructure in 2014accurred the energy sector. The report also states that incidentsharing mechanisms will be the key to developing defensiveplans. Read more: http://bit.ly/1CsmHDrThread Group releases its wireless networking protocolThe Thread Group recently announced the release of Thread, anew IP-based wireless mesh networking protocol designed forlow power connected products inside the consumer premises.This protocol uses IPv6 and 6LoWPAN as its foundation, andclaims to offer reliable, less complex and secure networks.Furthermore, the millions of existing IEEE 802.15.4 wirelessdevices can perform a software enhancement and run theThread protocol. Read more: http://bit.ly/1De7zo5Tech Mahindra to invest in smart EV charging project inOntarioTech Mahindra, an Indian technology firm, recently announcedthat it will build an Intelligent Electric Vehicle Charging System(IEVCS) for Ontario’s clean energy future. The project that issponsored by the Ministry of Energy and funded in part throughthe Ontario Smart Grid Initiative, will study the effects ofelectric vehicle charging on transformers by creating a real timetransformer monitoring and analytics solution. Read more:http://bit.ly/1GXoZpgDTE Energy is examining IoT and data analyticsDTE Energy, a Michigan-based utility, that provides electricity to2.1 million customers, is examining the Internet of Things (IoT)and data analytics primarily for asset management and weatheranalytics. Currently, DTE Energy is using IoT via deployingsmart meters that not only enable remote metering operationsbut also work as sensors on the distribution grid. The utilityenvisages to install 2.5 million end-point sensors by 2017. Inaddition, IoT will enable prediction of weather-related damageto the distribution assets. Read more: http://bit.ly/1KvwzN1New technology could remove biggest barrier to LithiumbatteriesResearch being conducted at Stanford University has found outthat the tendency of Lithium batteries to catch firecan bedecreased by adding two chemicals to the electrolyte of a Lithiummetal battery. Apart from preventing overheating, this discoverywould also help future batteries store up to 10 times more energyper weight. The next step would be to employ this technique inbatteries used in electric vehicles and cell phones. Read more:http://bit.ly/1LPgwepHP to use renewables to power their data centersHewlett-Packard (HP) has recently signed a 12-year powerpurchase agreement (PPA) with SunEdison for 112 MW ofrenewable energy for powering 100% of its data centers in Texas.This agreement is part of HP’s ongoing efforts of reducing itscarbon footprint across all operations, within its supply chain andproduct portfolio. This will allow HP to achieve its target ofreducing greenhouse gas emissions by the year 2015, five yearsahead of schedule. Post this agreement, SunEdison will now beginthe construction of its 300 MW wind farms in Texas. Read more:http://bit.ly/1U3A0PbLandis+Gyr bags huge order for smart metering inNetherlandsLandis+Gyr, a leading global energy management solutionsprovider, will supply 3 million smart meters to 4 distributionsystem operators in Netherlands. The contracts include supply ofboth smart electricity and smart gas meters, majority of which willbe deployed by 2020. With this development, the 4 grid operatorsare complying with the legal obligation to offer a smart meter toevery household in the Netherlands before 2021. Read more:http://prn.to/1VKG6GeCG wins huge Saudi Electricity dealCrompton Greaves, a unit of India-based Avantha Group company,has recently won a massive order to supply substation equipmentto Saudi Electricity Company (SEC). SEC is the largest utilitycompany in the Middle East region and serves approximately 5million customers in Saudi Arabia. CG was also recently selectedas SEC´s main supplier of three-phase smart meters and has alsoprovided voltage sensors for MV automation. Since 2014, CGclaims to have received orders worth more than USD 8 millionfrom SEC. Read more: http://bit.ly/1h1YBpuISGF invites all Indian Utilities to Join Smart Utilities GroupISGF has launched the Smart Utility Group (SUG) with an aim to create a platform exclusively for utilitiesto exchange ideas and learn from each other. The senior management officials of utilities dealing withtechnology implementation, network operation and customer care are invited to participate in SUG.During its launch at a Special Luncheon Round table at the India Smart Grid Week (ISGW 2015) on 05Mar 2015 in Bengaluru, Mr. Praveer Sinha, CEO & ED, Tata Power Delhi Distribution Ltd by popularconsensus was selected as the founding Chairperson of SUG.SUG Membership: No fee for joining as a member of the SUG. The expenses of travel and other logistics related to participationin SUG activities will be borne by respective members.For more information or to join SUG, please write to: akshay@indiasmartgrid.org.5 | SMART GRID Bulletin | Volume 2, Issue 7 | July 2015www.indiasmartgrid.org

Smart Grid Updates: Pilot Projects in IndiaState Pilot Sites Details Functionalities Consultant Project StatusAssamUtility: Assam PowerDistribution CompanyLimited, AssamProject Area: GuwahatiDistribution RegionConsumers: 15,000AMI R, AMI I,PLM, OMS,and PQM, DGMedhajTechnoConceptPvt. Ltd.Project awarded to M/s Phoenix IT Solutions,an ISGF member (in consortium with Securo,Kepco and Nuri Telecom). Workplan to bestfinalized by 31 July 2015.ChhattisgarhUtility: Chhattisgarh StatePower Distribution CompanyLimited, ChhattisgarhProject Area: Siltara andDDU Nagar of RaipurConsumers: Around 1,987AMI I, PLM PGCIL Price quoted by L1 Bidder has been furtherrevised as the earlier cost was very high.Currently awaiting internal approval for therevised project cost from Board of Directors.GujaratUtility: Uttar Gujarat VijCompany Limited, GujaratProject Area: Naroda ofSabarmati circle and Deesa- IIof Palanpur circleConsumers: 39,422AMI I, AMI R,and OMSNoneBids evaluation process completed. Approvalfrom the UGVCL Board awaited for award ofthe contract.HaryanaUtility:Uttar Haryana Bijli VitranNigam Limited, HaryanaProject Area: Panipat CitySub-divisionConsumers: 31,914; revisedto 11,000AMI I, AMI R,and OMS,SCADA/DMSNoneProject is executed under a grant from NEDO,Japan. NEDO has completed the feasibilitystudies and the report has been approved byUHBVN and MoP. NEDO has awarded thecontract for detailed engineering and projectimplementation to a consortium of Japanesecompanies led by Fuji Electric. The project workstarted on Dec 4 2014. Approval of FeasibilityStudy Report by UHBVN by end of July 2015.HimachalPradeshUtility: Himachal PradeshState Electricity Board Ltd,Himachal PradeshProject Area: KalaAmbConsumers: 1,251AMI I, PLM,OMS, andPQMPGCILProject awarded to M/s Alstom T&D India for atotal cost of Rs. 194.5 Mn in Feb 28 2015.Project work has commenced. Currentlyundergoing field inspection.Karnataka(Mysore)Utility: ChamundeshwariElectricity Supply CorporationLimited, Mysore, KarnatakaProject Area: VV Mohalla,MysoreConsumers: 24,532AMI R, AMI I,PLM, OMS,and PQM,DG/MGPGCIL forProjectManagementProject awarded on Apr 30 2014 to a consortiumled by Enzen Global Solutions Pvt Ltd. CyanTechnology, UK has been engaged by Enzen forthe AMI part of the projects.Installation of 500 single phase meters arestexpected to complete by 31 July 2015. Installationof control centre equipment is completed.KeralaUtility: Kerala StateElectricity Board, KeralaProject Area: Restructured tothe R-APDRP towns (8 nos)Consumers: 25,078 revisedto 15,700100% AMI I(for LT)NoneRetendering is in progress.MaharashtraUtility: Maharashtra StateElectricity Distribution CompanyLimited, MaharashtraProject Area: Baramati TownConsumers: 29,997AMI I, AMI R,and OMSNoneProject in Baaramati has been cancelled.MSEDCL planning to propose a new project toMoP6 | SMART GRID Bulletin | Volume 2, Issue 7 | July 2015www.indiasmartgrid.org

Smart Grid EventsInternational Conference and Exhibitionon Smart Grids and Smart Cities15 - 19 March, 2016Manekshaw Center, Dhaula KuanNew Delhi, IndiaPlease visit www.isgw.in and @isgw2016INDIANAug 6 - 8 2015: International Conference on Smart GridTechnologies, Amrita Vishwa Vidyapeetham University(Coimbatore), http://bit.ly/1CK1DqithAug 21 - 23 2015: 6 World Renewable Energy TechnologyCongress, New Delhi, http://wretc.in/rdAug 22 - 232015: IEEE INDIA COUNCIL 3 National Workshop onCyber Security, Bengaluru, http://bit.ly/1TVLFjfAug 27 - 29 2015: ITEC 2015, Chennaihttp://www.itecindia-conf.com/index.phpSep 2 - 4 2015: Cleantech India, New Delhi, http://bit.ly/1GrVCMvthSep 2 - 5 2015: 14 edition of 'Energy Efficiency Summit',International Conference &Exposition on Energy Efficiency,Hyderabad, http://bit.ly/1Iq0ubzSep 3 - 4 2015: Sustainable Smart Cities India, Bangalorehttp://nispana.com/ssci/thSep 3 - 6 2015: The 16 Regulators & Policy makers Retreat 2015,Goa, http://www.ippairetreat.com/Oct 6 2015: India Smart Cities Investment Summit, New Delhihttp://smart-cities-india.com/Oct 8 2015: India Smart Cities Investment Summit, Mumbaihttp://smart-cities-india.com/Oct 14 - 16 2015: Cyfy: The India Conference on Cyber Securityand Internet Governance, New Delhi, http://bit.ly/1gRy0eJthNov 24 - 27 2015: 8 Urban Mobility India (UMI) Conference andExpo, New Delhi, http://bit.ly/1FoGctPDec 7 - 9 2015: Energy Storage India, New Delhihttp://esiexpo.in/index.htmlINTERNATIONALAug 17 - 19 2015: IEEE International Conference on SmartEnergy Grid Engineering, Oshawa, Canadahttp://www.sege-conference.com/Aug 26 - 28 2015: International Workshop Innovative ElectricalNetworks for a sustainable development in low carbon scenarios,Italy, http://bit.ly/1DAxhU1thAug 26 - 28 2015: 8 International Conference on Energy Efficiency inDomestic Appliances and Lighting – EEDAL’15, Lucerne, Switzerlandhttp://bit.ly/1s6F4roAug 27 - 29 2015: Power & Energy Africa: Dar –es –Salaam, Tanzaniahttp://bit.ly/1VDyBAIAug 31 - Sep 02 2015: 2015 CIGRÉ Canada Conference, Canadahttp://www.cigre.ca/Sep 2 - 4 2015: World Smart Energy Week 2015, Osaka, Japanhttp://www.wsew.jp/en/ndSep 6 - 9 2015: IEEE 82 Vehicular Technology Conference, Boston,USA, http://www.ieeevtc.org/vtc2015fall/Sep 15 - 17 2015: Smart Cities Week, Washington DChttp://www.smartcitiesweek.com/Sep 15 - 17 2015: Electric & Hybrid Technology Expo, USAhttp://www.evtechexpo.com/thSep 20 - 24 2015: 7 Annual IEEE Energy Conversion Congress &Exposition (ECCE 2015), Montreal, Quebec, Canadahttp://2015.ecceconferences.org/Sep 28 - 29 2015: CyberSec: European Cyber Security Forum, Polandhttp://cybersecforum.eu/en/Oct 18 - 20 2015: Renewable Energy Markets, Washington DC, USAhttp://bit.ly/1sRCN0SNov 3 - 5 2015: European Utility Week 2015, Vienna, Austriahttp://www.european-utility-week.com/thNov 22 - 25 2015: 4 International Conference on Renewable EnergyResearch and Applications, Italy, http://www.icrera.org/Nov 24 - 26 2015: Low Carbon Networks & Innovation Conference,ACC Liverpool, http://bit.ly/1EmGzs7Dec 08 - 10 2015: Renewable Energy World Conference & EXPO, USAhttp://bit.ly/1syGU44WEBINARSDetails of previously held ISGF webinars are available athttp://indiasmartgrid.org/en/Pages/webinarrep.aspx. Recordingsavailable to members only.Disclaimer: This information is from the public domain. ISGF does nothold any responsibility for the information provided in this section.Editorial BoardDr. Rahul TongiaMr. VL SonavaneMr. Reji Kumar PillaiDr. Pradeep YemulaManaging EditorMs. Reena Suri, ISGFEditorMs. Sapna Gopal, ISGFKEY CONTACTSKey ContributorsAkshay Ahuja: Business Analyst, ISGFAmol Sawant: Business Analyst, ISGFAmritha. C: Business Analyst, ISGFHem Thukral: Research Officer, ISGFRonkini Shome: Asst Mgr - Communications, ISGF(For suggestions and feedback on the ISGF SMART GRID Bulletin, please write to sgbulletin@indiasmartgrid.org)India Smart Grid Forum (ISGF), registered under Indian Societies Registration Act (Act XXI of 1860) is a Public Private Partnership initiativeof Ministry of Power, Government of India for accelerated development of Smart Grid technologies in the Indian power sector.This SMART GRID BULLETIN is published by ISGF. THIS IS FOR PRIVATE CIRCULATION ONLY8 | SMART GRID Bulletin | Volume 2, Issue 5 | May 2015www.indiasmartgrid.org

OpEd: Smart Cities and Lessons from Smart GridsBy Dr. Rahul TongiaI once met a “smart” solutions provider that promised afantastic solution, high-tech, which was robust, foolproof, and“idiot-proof.” The problem was, he didn’t realize, someonewould always invent a better idiot. In all seriousness,consumers and citizens aren’t idiots. They are very smart, andrespond to incentives in a very rational manner. The problem isthe systems aren’t set optimally (with distortions, marketfailures, etc.), and individuals being rational don’t always lead tosocietally optimal choices (with known problems of tragedies ofthe commons, network effects, etc.)This challenge is amplified if we move from Smart Grids toSmart Cities, where multiple domains and jurisdictions need tointeract for societally optimal outcomes. Why the focus onSmart Cities? Is it just another buzzword, like “smart” or“clean” risks becoming? While all new technologies suffer fromhype, the potential for change and impact is undeniable.Smart Cities are inevitable in the same way Smart Grids areinevitable: Business As Usual (BAU) just isn’t good enough.Providing quality service to citizens and consumers in asustainable manner just hasn’t happened as fast as desired.We need something new, something better. On the supplyside, the rise of Information and Communications Technology(ICT), especially sensors, communications and analytics (“bigdata”) has enabled far greater monitoring, visualization, andgranularity than traditional systems could ever imagine. This,effectively, means one can be more efficient and even equitableif one so designs.Failures of BAU are also a reason that disruptive solutions aremore likely to work in India than many other countries. In theWest, people take electricity for granted, and few people wouldbe willing to change their lifestyle for perhaps saving a fewdollars per month (what I have called the Smart Grid Slice ofPizza Syndrome). However, in India, if you tell people theycould save 50 rupees per month, they’d be more interested andwilling to modify lifestyles, especially if that also meant reliablepower. Modify lifestyles? Most citizens already are heavilyengaged with the grid, due to periodic outages and loadshedding.What are some lessons from Smart Grids for Smart Cities?First, there is no one definition or even solution. We often hearthe analogy to the 5 blind men examining an elephant, and eachrespectively thinking it is a tree trunk, a rope, etc. (by touching aleg, the tail, etc.). While policy-makers have understood thatthere is no one-size fits all, it more subtle than this. SmartGrids/Cities are an enabling environment, and what we wantout of these is a choice we have to design towards. As soon aswe articulate what we want (access, lower cost, sustainability,new services, etc.), we will then see how there are inevitabletrade-offs. In the policy space, these are called WickedProblems, where this is no right or wrong, but choices to bemade, and how you frame the problem defines how you willsolve it. To use engineering speak, the problem is so overconstrained(or under-constrained) that traditional optimization isnot possible. The only solutions are multi-stakeholder iterative.Iterative and learning are the next lesson we have to embrace.Just like Smart Grids talk of pilots (and even these shouldideally be split into learning and deployment pilots), what does apilot mean for a city? The sheer size and scale (and multidomaineffects) imply that one cannot just do a part of it andexpect to learn meaningful results. This is a tough challenge,and we must be willing to embrace uncertainty and learning.Simulation and multi-stakeholder engagement are key steps inthis process.Electricity systems also have Regulators, who balanceproducer’s need to be profitable (or at least viable) withconsumer’s need for reliability and low costs. (Note, even “freemarkets” have regulators.) What is the equivalent in SmartCities? Today’s Municipal Authorities are neither designed norequipped for this role. We need some framework for balancingthe often conflicting multi-stakeholder needs. The worstscenario is when we have logjams due to accusations ofgovernment favoring a developer or solutions provider.Probably the most important lesson from Smart Grids is thatthese are a journey and not a destination. Stated another way,these are a process, and not a product. These cannot bedropped in, even for greenfield developments. It is thetransformation (of the utility or the city) into an empoweringecosystem that many designers feel is the real goal. There is noSKU that one can buy solutions for. Even asking for the“standard” is a futile task as there are multiple standards, andthe portfolio of standards, with interoperability and layering (justlike the Internet) is far more important than a single standard.Focusing on functionalities than technologies can guide ustowards success. It is said that a Smart Grid succeeds whenwe get the design right. But it fails when stakeholders don’twant it. Focusing on the pain points of citizens is the mosteffective design criteria for the success of Smart initiatives.Consumers (and all stakeholders) respond to incentives, and areactually very smart (in an economics sense).Ultimately, for the lay person, Smart is just a means to an end,towards a “good” city, one that is clean, safe, offering lots ofopportunities, etc. By such tokens, a few cities in the Westmight even be viewed as Smart (where public transport is notjust ubiquitous but your smartphone can track the buses). ButSmart Cities are more than this. These offer a transformation,like with utilities, where the bottom-up matters far more thanthe top down.Smart Grids can be an anchor tenant for the Smart City – afterall, nothing else works without electricity. The design ofcommunications should obviously cater to all SmartInfrastructure of the city. We must take bold steps towardsSmart Grids and Smart Cities. Elephants give us another insightto such grand challenges and grand visions. If one were soinclined, how does one eat an elephant? One bite at a time.(Dr. Rahul Tongia is a Fellow at Brookings India, and adjunctprofessor at Carnegie Mellon University. He is also the Advisorto ISGF. All views are personal).10 | SMART GRID Bulletin | Volume 2, Issue 7 | July 2015www.indiasmartgrid.org

ISGF Welcomes New Appointments in MoPMr. P.K. PujariAppointed as Secretary, Ministry of PowerMr. Badri Narain SharmaAppointed as Additional Secretary, Ministry of PowerMr. Bhagwati Prasad PandeyAppointed as Additional Secretary, Ministry of PowerthISGF Announces 5 Workshop on CYBER SECURITY FOR POWER SYSTEMS17 - 19 September, 2015 | New Delhi, IndiaIndia Smart Grid Forum (ISGF), in association with NCIIPC and VJTI has announced a Workshop on Cyber Security for PowerSystems from 17 - 19 September, 2015 at CBIP Building, Malcha Marg, Chanakya Puri, New Delhi, India. This is the fifthworkshop in a series planned for providing training in the field of Cyber Security. The inaugural workshop was held inJanuary, 2014, the second in August 2014, the third in November 2014 and the fourth was in January 2015. The faculty forthis workshop will include experts from the Government, Industry and leading Research & Development organisations inIndia. This workshop is for officials from Utilities, Industry, Research & Development organisations and technologyenthusiasts.Topics covered are:17 September 2015 (Day 1)• Smart Grid Pilot Projects and ISGF Updates• Smart Grid Communications• Cyber Security for Critical Infrastructure & Role ofNCIIPC• Understanding Threats and Attacks on Smart Grids18 September 2015 (Day 2)• Role of Data Analytics in Securing Smart Grids• Cyber Security Framework for Smart Grids (Designand Implementation)• Anatomy of a Cyber Attack: A case study of STUXNET• Cyber Security Audit & Assessment for Smart Grids19 September 2015 (Day 3)• Mapping of NCIIPC Controls to Attack Vectors• ISGF-NCIIPC Cyber Security Assessment Project forIndian Power SectorFor more information, please write to hemthurkral@indiasmartgrid.org• Site visit to Tata Power Delhi Distribution Limited(TPDDL)/Northern Regional Load Dispatch Center(NRLDC)11 | SMART GRID Bulletin | Volume 2, Issue 7 | July 2015www.indiasmartgrid.org

12 | SMART GRID Bulletin | Volume 2, Issue 7 | July 2015www.indiasmartgrid.org