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 Smart City Smart Grid Smart Home Smart Meter Tariff Policy LED UDAY NSGM India Smart Grid Vision and Roadmap National Electric Mobility Mission 175GW 100GW Solar 40GW DRE Urban - Rural 100 Smart Cities

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

Roadmap Features based on Smart Grid Drivers for India Smart Grid Driver: Loss Reduction Technology Enablement Policy Changes Business Outcome + = 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 Policy Change: Load Curtailment at Locality Level Smart Metering of entire Network, down to transformer Smart Metering of all consumers under a transformer

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: Auto-disconnect on exceeding Sanctioned Load by some margin Policy Changes = Business Outcome Policy Change: Load curtailment at transformer Level

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

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

Roadmap Features based on Smart Grid Drivers for India Smart Grid Driver: Electric Vehicles Energy Storage Charging Infrastructure Electric Vehicles’ takeoff in India + = Policy framework for V2G Charging Infrastructure: Physical Infra Remotely Managed Operations Online Payment Settlements Technology Evolution leading to Reducing Prices: Electric Vehicles Energy Storage (LIB) Renewable Energy (Solar) Vehicles as Transport Vehicles as Energy Storage

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

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 Accurate Demand Forecast Power Purchase Portfolio Optimzation Cost Savings for Discoms + = A High Priority Area of Applying Analytics: Day-ahead Load Forecast Short to Medium Term Demand Forecast + Price Forecast Very Long Term Demand and Supply Forecast from various sources

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 Benefits to the Citizen? Facilitate Governance? Return for the Investor? 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

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: Streetlights, Traffic Lights, Toll Plaza (Roads) Petrol Pumps, Police Stations, Fire Stations… (Public Facilities) Organisational Wherewithal: Manpower with intimate knowledge of last mile LT Poles mapped on GIS: Huge Upside waiting to be tapped Streetlight, Solar, Battery, Video Surveillance, Advertisement, Telecom Equipment… 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 Discom’s Billing Database is the only pre-existing database that exhaustively links for entire cities: Property  Citizen  Income  Creditworthiness

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

Roadmap: Smart Grid / Smart City – How to Operationalize? Electric Water Gas Specialized applications for eGovernance, Utilities, Safety, etc. Common ICT Infrastructure & Telecommunication Database Common Database of Citizens, Premises, etc. Generic Applications MIS Integrated Analytics Layer 1. Common Foundation: (i) Infrastructure, (ii) Database and (iii) Generic Applications Layer 2. Specialized Applications for specific services Layer 3. Integrated Analytics 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

Contact: Shalabh.Srivastava@Accenture.com