Title of the Paper: SMART ENERGY OPERATIONS: PERSPECTIVES FOR SUSTAINABLE DEVELOPMENT IN INDIA

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1 Title of the Paper: SMART ENERGY OPERATIONS: PERSPECTIVES FOR SUSTAINABLE DEVELOPMENT IN INDIA Author and Organizational Affiliation: Dr (Mrs.) Malti Goel*, Scientist G, Department of Science & Technology, New Delhi. Abstract: Smart energy being an application of Information Technology (IT) optimizes energy operations. Its aim is to address users need in more effective manner by networking through different energy sources with storage devices. Such networking allows more efficient use of energy. It also reduces the need for costly energy transmission infrastructure and targets to achieve full economic benefit of renewable energy sources in tandem with other energy sources. India currently ranks sixth in the world in terms of total installed electricity generating capacity and accounts for about 3.3% of the world total. About 69 % of India's generating capacity is met from thermal-electric power plants. Hydroelectric generation has a share of 26 %; about 3% is from nuclear and the remaining 2% is from renewables. There is large amount of hydroelectric and other renewable capacity in construction and planning stages, and their contribution to total generation would soon increase. This paper describes how India s vast energy sector comprising of non-renewable and renewable energy, can be benefited by the application of information technology. In reality, both energy generation and energy consumption industries are becoming e-friendly in terms of equipment, technology and management. The growth of renewable energy development would however, depend on their market response. Future perspectives for introduction of decentralized distributed energy systems and smart energy operations, are presented. Such efforts would not only provide a better energy security, but also help in mitigating global energy environment concerns. Lead Author: Malti Goel* Dr. (Ms) Department of Science & Technology Ministry of Science & Technology Technology Bhawan, New Delhi , India Tel: , Fax: , mlg@nic.in * The views expressed here need not necessarily represent the views of the organization

2 Smart Energy Operations: Perspectives For Sustainable Development In India Malti Goel Scientist G, Department of Science & Technology Ministry of Science & Technology, Technology Bhawan, New Delhi , India, Abstract. Smart energy being an application of Information Technology (IT) optimizes energy operations. Its aim is to address users need in more effective manner by networking through different energy sources with storage devices. Such networking allows more efficient use of energy. It also reduces the need for costly energy transmission infrastructure and targets to achieve full economic benefit of renewable energy sources in tandem with other energy sources. India currently ranks sixth in the world in terms of total installed electricity generating capacity and accounts for about 3.3% of the world total. About 69 % of India's generating capacity is met from thermal-electric power plants. Hydroelectric generation has a share of 26 %; about 3% is from nuclear and the remaining 2% is from renewables. There is large amount of hydroelectric and other renewable capacity in construction and planning stages, and their contribution to total generation would soon increase. This paper describes how India s vast energy sector comprising of non-renewable and renewable energy, can be benefited by the application of information technology. In reality, both energy generation and energy consumption industries are becoming e- friendly in terms of equipment, technology and management. The growth of renewable energy development would however, depend on their market response. Future perspectives for introduction of decentralized distributed energy systems and smart energy operations, are presented. Such efforts would not only provide a better energy security, but also help in mitigating global energy environment concerns. 1 Introduction: India s Energy and GDP India is a land of diversities extending over 3.28 million sq kms. It is surrounded by oceans on its three sides and is bordered by the highest mountain chain of the world, the Himalayas in the north. Its growing population has already crossed the one billion. The whole governance is divided into thirty four States and six Unions Territories. India is first among the developing countries, which stressed on heavy industry development and recognized the importance of scientists and engineers for building a strong national economy in the 1950s. The early economic policies also led to an increase in saving investment rate from a low level of 5 to 6 % of the Gross Domestic Product (GDP) to as much as 24-26% over the period The growth of economy got an upsurge in the later part of the decade of 1980s and especially after the new industrial policy was announced in There exists a strong correlation between the energy use and the national income. However, as GDP almost doubled during 1993 to 2003, power consumption growth has not kept pace with it (Singh 2005). The growth of GDP and energy consumption is shown in Table 1. India ranks sixth in the world in terms of energy generation. The population of India is also one sixth of the world

3 but per capita commercial energy consumption is one fourth of the world average. Energy as a key to development has been high on the planning map of independent India. Starting from the 1951 onwards, i.e., from the first Five Year Plan, the investment in the energy sector has been increasing not only in the gross value, but also as percentage share. The share of energy in the total Plan outlay increased from an initial 19 per cent during the first five Plans ( ) to 28 per cent during the sixth, seventh and eighth, and 26.5 per cent during the ninth five year Plan ( ). As a result of this investment, the total energy production has increased by a factor of six during the years 1951 to 2001 i.e., from 82 billion kwh in 1951 to 499 billion kwh in A high rate of increase in energy demand is expected in future because of the expected rapid economic growth. The current energy situation, future energy needs, sustainability issues in the power sector are presented here. The role of information technology in the power sector, challenges and future perspectives for integration of generation and transmission functions in decentralized distribution and smart energy are also discussed. Table 1: Growth of gross domestic product and India s position in commercial energy consumption Financial Year Gross Domestic product in thousand crores Energy Consumption in billion units Source- Indian Economic Review Current Energy Situation The growth of electricity generation capacity upto 2004 is shown in Fig.1. Fig.1: The growth of electricity generation from 1950 to 2004.

4 Electricity generation is contributed by a variety of resources viz. coal, lignite, natural gas, hydroelectric, nuclear and renewables. As on September 2002, the share of thermal power generation from coal, oil & gas was 75,083 MW, hydropower contributed 26,402 MW, nuclear sources 2,720 MW and windmills share 1,628 MW (Prasad and Mittal, 2003). In the thermal generation coal dominates as primary energy resource. India ranks third in coal production. About 350 million tons of coal was produced in Its geological coal resources are estimated at billion tons, which are about 6 per cent share of world coal resources. The inferred reserves are billion tonnes, the proven recoverable reserves are recently revised to 39.8 billion tonnes. In addition lignite resources are estimated at billion tonnes. The hydropower potential by conventional dam generation is 84,044 MW at 60% load factor. This corresponds to an installed capacity of 1,47,701 MW. Of this 26,900 MW has been commissioned so far. In hydroelectric generation new development is identification of pumped storage schemes (PSS). The PSS potential has been assessed at 93,920 MW, of which only 1704 MW has been developed. Pumped storage schemes are well suited to supply power and to level peaks in demand. The frequency can be regulated by absorbing surplus power during the lean periods and making it available during the peak power requirement. Renewable energy resources are those, which can be regenerated on a very short time scale i.e., within our lifetime. Quantum of such renewable energy resources at a place is largely determined by the amount of sunlight received. On an average earth receives 5x10 15 kwh of solar energy per annum. This is more than adequate to meet the world energy supply and is an unlimited source. The solar heat as well as light can be utilized directly or indirectly for the generation of electricity. The Indian sub-continent being in the tropical belt is endowed with a reasonably high amount of renewable energy resource. Average flow on the Indian continent at ground level is 1.3 kw/sqm as compared to 0.2kW/sqm average in USA. The total renewable energy resource potential is high and the achievements so far are shown in Table 2. Table 2: Renewable energy potential in India and achievements as on Jan Renewable Energy Total Potential (MW) Achievements (MW) Wind Power 45, Small Hydel Power 15, Biomass Power 19, Biomass Cogeneration Biomass gasifiers Solar Photovoltaic 20 MW/sq km 47 Waste to energy Source: Power India Handbook (ASSOCHAM) India being an agro-based economy, non-commercial energy resources in the form of fuel wood, agro-waste and animal waste contributed to meet the day-to-day needs of the rural population. As a result, the share of non-commercial energy at the beginning of the Planning era has been substantial in the total energy consumed. But non-commercial energy being less efficient, its use is continuously declining. With the advancement of technology, we can expect to increase its efficiency as well as its use as renewable energy fuel.

5 3 Future Energy Projections Energy demand projections for the year 2012 and 2020 have been made. According to Plan projection the installed electricity capacity is expected to become 2,12,000 MW by the year The corresponding energy requirement is estimated to be 1318 billion units in 2012 and 2108 billion units in Major share in it is expected to come from thermal power generation. An ambition programme for hydro development has also been launched to install 50,000 MW by According to IEA projections the contribution from renewable energy sources may become about 20 % in total global generation by this time. The renewable energy contribution in India is projected to become billion units. The programmes of` renewable sources of energy are being given greater thrust for developing R&D intensive indigenous technologies, setting up of large scale demonstration projects, testing of devices under field conditions and making them reach the customer. 4 Sustainability Issues in Energy Sector India has made major strides in stepping up the production of commercial energy keeping pace with its economic growth. Looking at the energy production pattern in 1951 the share of noncommercial energy and commercial energy was 71 per cent and 29 per cent, respectively. In 2001, it has turned around and became 29 per cent and 71 per cent, respectively. The share of commercial energy is expected to increase further and reach 85 per cent in the year 2010, with non-commercial energy consumption falling at the rate of 1.3 to 1.5 percent per annum. Main issues concerning sustainable development of energy sector are energy security, concern for environment and energy efficiency improvement as discussed below. 4.1 Energy Security The energy resource base can be classified into (i) conventional and (ii) renewables. Conventional resources include fossil fuels such as coal, oil or gas and hydropower generation. Renewable sources are solar energy, wind energy, biomass energy, small hydropower, ocean energy and geothermal energy. A balanced growth with greater emphasis on capacity addition and renewable energy development has been targeted. In thermal power generation clean coal technologies are being promoted. However, the growth of energy sector has not been as expected. Recognizing the fact that the cost of energy development is high and it requires not only vast infrastructure, but also the technology and financial resources, non-availability of new technologies and desired capital investment have played an important role. The transmission and distribution losses are continuing to remain high. In hydropower development, pumped storage systems holds greater potential, but there are difficulties in locating pump storage closer to the load. Dependence on imports of oil and gas continues to grow and has increased many folds in the total energy demand. Growth of renewables is not as expected due to high cost and lack of buyers. New Electricity Act 2003 addresses to some of these concerns and aims to facilitate better environment for growth. To optimize the use of power generated, it has permitted consumer to have non-discretionary open-access for power higher than 1 MW capacity. Policy guidelines include deregulation of tariff fixation in certain specific areas. Multiple licenses are allowed in each distribution area to facilitate trading. To make electricity sales more competitive from multiple buyers, for generation other than hydro no license is required. The act has introduced compulsory metering for all generation and has given more freedom to set up captive power plants. It is also expected to give boost to generation from renewable energy sources.

6 4.2 Concern for Environment Production and use of fossil fuels to meet the energy demand contribute the extent of 65% of the CO 2 emissions worldwide. Power generation accounts to about 35% of the global CO 2 emissions. The accumulation of CO 2 in the atmosphere along with other greenhouse gases is giving rise to the threat of global warming and consequent climate change. With Kyoto Protocol coming into force in February 2005, industrialized countries are committed to make voluntary commitment to reduce their greenhouse gas emissions by 5.2 % from their 1990 level over the first commitment period from , to address the climate change issue. India has accepted the Kyoto Protocol on 26 th Aug and has agreed to establish inventories of greenhouse gases though no commitment is made to reach specific targets. A big stride towards sustainable development by making available the new technologies to developing countries is yet to be seen (Parikh 2002). India with several other countries has also joined Carbon Sequestration Leadership Forum (CSLF) with the objective to develop cost effective technologies for carbon sequestration by organizing collaborative R&D. The CO 2 emissions per capita continue to be low at 0.5 tc as compared to the world average of 1.06 tc and USA 5.5 tc per capita (Mitra 1999). With rapid economic growth and energy demand the carbon emissions are likely to increase and therefore efforts are being made to reduce carbon intensity through technology intervention and use of alternate fuels. Shift towards low carbon fuels in thermal generation and improvement in energy efficiency have been targeted. In thermal power, coal while continuing to be predominant source of energy, its overall contribution declined from 98 per cent in 1951 to about 70 per cent in On the other hand, use of cleaner fuels like oil & gas has increased gradually in total energy use from 1.2 per cent in 1951, to 30 per cent in The natural gas production has also increased considerably resulting in a gradual shift towards the fuels of low carbon content. The concern for mitigating environmental degradation is one of the national goals from the beginning. Keeping this in view, India started quite early on development of pollution free hydro electricity and nuclear energy as non-fossil energy resources. The percentage share of hydroelectricity grew rapidly from initial 30 per cent in 1953 to about 50 per cent in 1963 with the commissioning of large projects at Bhakra-Nangal and Hirakund. The share of hydroelectricity declined temporarily after 1960s due to faster growth of thermal power generation in the subsequent years. In 1998, New Hydropower Policy was introduced to accelerate development of conventional as well as pump storage hydro systems. The environment impact of pump storage system is expected to be much less as compared to conventional systems. India also has to its credit the first commercial nuclear power plant in Asia, commissioned way back in Total generation from nuclear power plants through indigenous efforts has reached approximately 3,000 MW. The share of different fuels in the year 2001 in energy generation is depicted in Fig Energy Conservation and Efficiency Improvement Energy technologies (ET) are continuously evolving towards conservation and improvement in efficiency. Energy intensity is an important indicator for assessing new energy technology penetration at a place. It varies from country to country and is different at different stages of its development. Its high value suggests the need for reducing specific energy consumption or increasing energy efficiency. For India, from an initial high value of greater than one, the energy intensity has come down to 0.82, yet it continues to be high compared to industrialized countries.

7 Percentage share Year Fig. 1: Share of different fuels in energy generation Global warming threat and impending climate change have given rise to new thrust for energy efficiency improvement in generation and use. The potential for overall improvement of energy efficiency in industry, transport and building sectors has been assessed and new programmes are targeted through incentives for introduction of new technology. There is scope for improving energy efficiency in both metal and non-metal industry by % and efforts are being made though promotion of R&D. In transport sector introduction of compressed natural gas in public transport and blending of bio fuels in gasoline have been mandated. Mass Rapid Transit System (MRTS) and system control for vehicular traffic management are other means of saving energy being adopted in metro cities. Share of urban development & domestic sector is increasing and is one fifth share of total energy demand. Larger part of this is met by non-commercial sources in rural areas. In the urban areas, management of large energy intensive buildings and development of energy management codes for different type of buildings, improved buildings designs according to different climate zones are some of the issues being addressed. Energy Efficiency Standards for public buildings like hotels, hospitals, schools etc. are some of the targets to be achieved in the near future. 5 The Role of Information Technology In the history of man s existence on earth, communication and exchange of information have played a vital role in the development process. Starting from search for new sources, development of conversion techniques, improvement in efficiency to energy demands for the future dependence on information technology (IT) is growing. Modeling and forecasting studies cannot be done without the aid of IT tools, which incorporate vast databases. Current status of IT penetration in the electricity sector and future perspectives are discussed below. 5.1 IT in Resource Generation Application of IT in resource production and management is fairly well developed and playing a vital role. For each type of resource different data sets are required to be generated for planning purpose. For coal resource assessment, mine planning and tackle environmental issues such as resettlement and rehabilitation Geographical Information Systems (GIS) and Geographical Positioning System (GPS) are being introduced. IT applications are being explored in controlling

8 drilling rig operation, tracking mobile equipment and positioning of shovel for better output. In the oil exploration sector, application of IT plays a major role in reservoir management. IT has played a vital role in instrumentation control, geographic data acquisition and processing. Digitized three-dimensional maps of seismic surveys are reproduced through computer graphics. Intranet between corporate office and field sites provide means for transfer of such on-line images and help in strategic decision making. The networking is targeted from site to achieve analysis of trends, projections, monitoring and planning through high quality exploration and product on-line data. Resource assessment of renewable energy across the length and breadth of a nation requires enormous data collection in space for a long time before harnessing them. Solar energy resource assessment comprises measurement of total solar radiation and diffused radiation, which changes. For wind energy, detail survey is carried out for making resource assessment and for deciding upon the location by knowing the approximate power output. Information is compiled as wind roses and helps in assessing the potential of wind farm locations. Such information can be put on the web eventually and accessed by interested parties on click of a button. In harnessing ocean energy, ocean waves and ocean surface temperature profiles are beginning to be monitored. Biomass energy conversion processes deal with waste recycling, co-generation and energy plantation. Identifying supply chains in them with variations in time and space would improve prospects of such conversions. In pumped hydro systems IT prospects are promising and can result in much higher utilization of existing plant & machinery. 5.2 IT in Functional Areas of Power Sector Use of automation and IT has become a necessity for the power sector. Use of computers in power plants is encouraged at several levels. Fuel management in generation cycle relates to application of information technology in production management and quality control. National Thermal Power Corporation has introduced GDAMS to manage resources from a centralized location. Information from geographically spread out plants is collated at one place and critical business decisions can be made in real time. For generation and control, plant data are collected and operation of turbine is monitored on continuous basis. Fuel monitoring and control are two other major functions for achieving improvement in efficiency and maintenance checks. Load surveys and monitoring of supply have been targeted. Supervisory Control and Automation (SCADA) systems are being introduced for functions like load management, improving and maintaining quality of power (Goel 2002) as well reduction in transmission losses. Use of automatic meter readers (AMR) equipped with sensors has been suggested for remote meter reading and spot billing has been proposed. Using computer communication systems, AMR with a meter interface allows sending electricity bills via internet and to receive payments electronically. It enables the utility to remotely monitor and control distribution of power with continuous data acquisition, its analysis and planning. The penetration of IT in functional areas of electricity to customer, with corresponding areas of application is shown in Fig. 2. In power business, role of information technology is relatively new and still being evolved. Unlike oil industry, which is far ahead in e-business in its many forms, especially in developing a knowledge base, material management, production and generation accounting, in the electricity sector e-business is in proposal stage. Coal India Ltd. has introduced e-billing and e-auction for coal on-line sales. On the other hand, IT is already providing new opportunities for training and human resource development. At National Power Training Institute, simulation and multi-media computer based training packages have been introduced as training tools. A power plant training simulator was commissioned as early as in The training simulator helps in coping with ever increasing demand for energy and due to supporting developments in the field of automation and

9 control engines. Real-time Engineering Application & Development System with various aspects of plant operation has been developed and provides a unique opportunity for operation engineers. Fig.2 Role of information technology in the power sector 6 Future Perspectives in Transmission of Power Power transmission grid system in India has been planned for integrated operations having intraregional transmission links. Both Alternating Current (AC) and High Voltage Direct Current (HVDC) transmission links for long distance transmission has been established. However, Development of new transmission technologies and deregulation of electricity industry are demanding introduction of new systems. The key issues besides the capacity addition are: reducing transmission losses and deriving full benefit of renewable energy generated. To address these decentralized distributed energy systems and smart energy networks are emerging. 6.1 Decentralized Distributed Energy Systems Renewable energy is considered to make greater contribution to electric power in the future. Deployment of renewable energy however, requires costly storage systems. The decentralized distributed generation systems have been proposed using hybrid combination of two different sources. For example solar PV cells and a biomass gasifier can be integrated by means of IT. When solar light is low or not there biomass source can maintain the supply. Such units enable improved plant load factor for small kw units, for meeting small-scale needs such as food processing and medicine storage use in remote areas. Such decentralized distributed energy systems are most suited for hospitals, telecommunication towers and data centers for supplying reliable and quality power through small generators. They can be appropriately designed to accelerate the process of introduction of computer kiosks in rural and remote areas. New niches for distributed zero emission power sources such as solar and small-scale wind or hydro can be developed.

10 6.2 Smart Energy Network Systems A Smart Energy Network puts together new energy technologies and economics through communication and control systems so as to optimize large-scale energy operations. It does intelligent integration of new technologies of generation, transmission, distribution and business functions. Under Energy Systems Transformation Initiative launched by Pacific Northwest National Laboratory of U.S.A, such integration has been demonstrated (Mazza 2004). It would provide links to generators and customers through automatic generator controls and would be capable of precisely managing the electrical power load through networking with vast number of small-scale distributed energy generation and storage devices. Energy users can benefit from it by receiving reliable and clean power supply free from outages at a better price. Various components of a conceptual smart energy network are described below. Automatic Generator Control. Automatic generator control comprises of a load frequency control to monitor generation and maintains frequency at a scheduled value. Its aim is to adjust generation against the load. Full benefit of deployment of renewable energy technologies, which are cleaner but suffer from intermittent generation, cannot be realized until they are integrated into larger power network through such controls. By integration of localized distribution networks coherent systems can be designed for existing and new small-scale generators like fuel cells and micro turbines. It is anticipated that creation of large virtual power plants composed of many networked small generators could take demand off from long distance transmission lines. By placing small generators near the point of utilization, the transmission losses are minimized. Demand Response. Demand response or dynamic response is at the center of smart energy revolution, as it can integrate with energy efficiency technologies and on-site distributed generation to create a two-way market plans. Application of information technology as communication and control systems throughout the power grid, buildings, appliances and equipments allows the customers to monitor and analyze their power use. By using advance energy management systems for industry and buildings that can automate, demand can be optimized. Smart chips that could be fitted on to equipment and appliances are being developed. In power plants large investment is made to serve the peak loads. By incorporating distributed energy systems and reduced demand operations with pricing benefits, saving in costly transmission infrastructure is envisaged. On-line Economic Dispatch. This is the last step in achieving full integration with energy business. An efficient two-way communication at generator level and at distribution level is built to be able to take on the spot price decisions. It can make use of switchable load device in which customer allow the utility to switch off certain loads without warning, for short durations. Use of meters equipped with ripple control receiver helps in activating switching off. As the system comprises of different generation units having different cost of generation, economic dispatch in real-time optimizes the contribution of each of these units. Load is met at a minimum cost as it involves the cost of generation as well the geographic location. Such economic load dispatch can be expected in a few years from now. 7 Conclusions: Convergence of ET and IT India s energy sector is vast comprising of conventional and renewable energy sources. Despite rapid growth it faces many challenges towards energy security and sustainable development. Energy conservation, energy efficiency improvement and cleaner generation have been targeted. Policy guidelines for open access to generation through Electricity Act 2003 have been evolved.

11 Open access to distribution has been proposed. Some pre-requisites for its success would be; i) identification of customer with consumption more than say 10 MW, ii) ability of the consumer to buy power directly from any source and iii) application of information technology to distribution. Until recently the application of information technology has mainly confined to generation sector. Some initiatives are being taken in transmission, distribution and business sectors on entity basis. Perspectives in convergence of new energy technology (ET) and information technology (IT) that can lead to development of decentralized distributed energy systems and smart energy networks are presented. Emergence of smart power introduces new possibilities, new challenges and new options for sustainability. Future needs for making it practical in the next few years by appropriate strategies with regard to operational problems are explored. Technology advancements in this direction would promote innovative alternatives to traditional up gradation of the capacity through creation of virtual power plants. Some regulatory measures would however, be required such that a minimum percentage of power is purchased from renewable generation. Advances in technology and new policy guidelines would pave the way for growth of alternate energy sources and introduction of smart energy networks faster. Acknowledgments The author is extremely grateful to Prof. V.S. Ramamurthy, Secretary Department of Science & Technology, Ministry of Science & Technology, Government of India for the encouragement. However, views expressed here need not necessarily represent views of the organization. References Goel, Malti (2002). e-transformations in Indian Energy Sector and Some DST Initiatives, Presented in National Conference on Advances in Contemporary Physics and Energy, (NCACPE 2002), Indian Institute of Delhi, New Delhi, Feb 8-9. Mazza, Patrick (2004). Smart Energy Technologies take off Power Demand and Bills, Smart Energy Bulletin, Mitra, A.P. (1998). Global Climate Change, Greenhouse Gas Emissions in India for the Base Year 1990, Report no. 11. Parikh, J.K. and Parikh Kirit (2002). Integrating Climate Change and Sustainable Development Issues, Opportunities and Strategies, Projections, Impacts and Mitigation Strategies in Climate Change India: Issues, Concerns and Opportunities, (Eds. P.R. Shukla, S.K.Sharma and P Venkata Ramana), Tata McGraw Hill Publishing Company Ltd., New Delhi, Prasad, Yogendra and Mittal, S.K. (2003). Country Report by NHPC, First International Summit on Sustainable Use of Water for Energy, International Hydropower Association, UK. Singh, K. (2005). Current Activities and Future Plans for Power Sector, 4 th Coaltrans India, New Delhi, March 7-8.