Role of Emerging Technologies for Energy Challenges in India

Size: px
Start display at page:

Download "Role of Emerging Technologies for Energy Challenges in India"

Transcription

1 Role of Emerging Technologies for Energy Challenges in India Dr. Rahul Walawalkar CEM, CDSM, CSDP Vice President, Emerging Tech & Markets, Customized Energy Solutions Customized Energy Solutions Ltd Walnut Street, 22 nd Floor Philadelphia, PA USA Phone: Fax: Presented at IITBAA Pune Chapter 21 st January 2012 Customized Energy Solutions India Pvt. Ltd. A 501, GO Square Aundh - Hinjewadi Link Rd, Wakad Pune, Maharashtra India Phone: info@ces-ltd.com 2012 Customized Energy Solutions Ltd. 1 Overview Current Energy Scenario in India Opportunities & Challenges for generation additions Drivers for smarter grids in India Opportunities for Demand Response Summary 2012 Customized Energy Solutions Ltd

2 Electricity Generation and Population Growth 2011 Customized 3Energy Solutions Ltd. Source: Gapminder.org Overview of energy situation in India Current Scenario 174 GW of Installed capacity 123 GW peak load Captive Generation ~ 19.5 GW Annual Per Capita Consumption ~750 kwh Projections 8-9% economic growth Anticipated addition of GW over next years 4 2

3 Renewable Technology Options 5 India Wind Resource Potential GW of wind anticipated by 2013 source Wind Small hydro Solar Biomass Total Estimated potential 85 GW 15 GW 25 GW 200 GW 325 GW Source: MNRE Annual report A new Lawrence Berkeley National Laboratory Report suggests wind potential in 800 GW+ Source: Phadke et. al (2011). Reassessment of Wind Potential in India. LBNL. Forthcoming 6 3

4 Renewable Energy Cost Trends 7 Electricity Markets (US vs India) Combined energy trading & system operations through regional markets Established energy, ancillary services, capacity markets Up to 50% energy gets traded through markets Separate national level energy trading & regional system operations Established energy market, proposed ancillary services, capacity markets Currently ~5% energy is traded 8 4

5 Renewable Energy certificates & Feed In Tariffs Market Price REC Option Electricity Sell to Dis-Coms at Price Avg Price* REC [Solar & Non-Solar] Sale of RECs at Power Exchange Green Attributes Feed-in Tariff [State Regulated Tariff] Sale of electricity to DISCOMs at State regulated tariff (Preferential Tariff) * -Weighted Average Pooled Price at which distribution licensee has purchased electricity (including cost of self generation, long-term and short term purchase) in the previous year, but excluding the cost of RE power purchase 9 Capacity Factor for Different Technologies Source NREL

6 Challenges in integration of renewables Source: Dr. Michael Milligan NREL / AWEA : Dr. Jay Apt, CMU 11 India Grid Frequency

7 Evolution of Grid Frequency Control Planned Draft May 2010 Apr 2009 Freq Band Tightened Jan 2008 Apr 2007 Oct 2004 April 2004 UI Vector Tinkered July Implementing new Indian Grid Code 2012 Wind developers may have to pay financial penalties for deviations of more than ±30% of forecast New wind energy generators will be able to fine tune their schedules (based on forecasting) as close as three hours before actual generation. The operational frequency band has been further tightened from 50.3 Hz to 49.2 Hz to 50.2 to 49.5 Hz. This is generating interest in exploring better forecasting as well as integrating storage for wind farms

8 Regional wind power generation forecast for Germany and real observation data 15 Operational Drivers for Smart Grid projects Improving Grid Reliability Improve transfer capacity Deployment of AMI & associated IT infra. Renewable integration Expansion of Demand Response Social Lower energy prices Jobs growth Cleaner environment

9 Overview of a smarter electric grid Adapted from Walawalkar, Tongia et. al 2007 Smart Grid: Best Defined by Functionality Objectives of the smart grid are Enabling informed participation by customers Accommodating all generation and storage options Enabling new products, services, and markets Providing the power quality for the 21st century economy Optimizing asset utilization and operating efficiently Addressing disturbances through automated prevention, containment, and restoration Operating resiliently against all hazards Source: US Department of Energy

10 Challenges for Smart Grid Deployment Defining and understanding business case System planning & selection of right projects Regulatory & policy Consumer acceptance Culture and education Technical & Engineering Design Workforce training and education 19 Integrating advanced wind forecasting & scheduling CES-SecureRT Data Acquisition System -- Secure internet SCADA --Database/interface Internet or Private Network Facility Real Time Data (output, wind, availability, etc) Wind Facility 1 Internet based FTP site Internet Internet w/ VPN Encryption Wind Facility n Facility Output / Availability / Wind Data Wind Forecast Provider Wind Output Forecasts (15 minute) State Load Dispatch Center (SLDC) Customized s Market Operations Center currently actively manages over 2650 MW of generation, energy storage and demand response resources to maximize profits for our clients

11 India Grid Frequency Analysis 21 Role of Energy Storage in Renewable Integration Adapted from EPRI & AEP presentation

12 Role of Electricity Markets in understanding the value Provides price transparency to quantity value proposition of various EES technologies Market Design Access to various markets for energy, ancillary services capacity Generation Supply mix & Demand Curve Market size Locational factors Electric transmission network & interconnection 23 Smart Grid (EES) Demonstration Projects Major projects include: CAES demonstration (NY and CA), Renewable Integration (CA, TX, NM), Peak Shaving, Community Energy Storage and demonstration of new technologies. Visit for additional details. 12

13 Demand Response (DR) DR can reduce marginal costs of peak production Especially the case where generators are paid market clearing prices under uniform auctions DR of 5% can mitigate market power, and reduce uneconomical investment in peaker units (as per studies) India has virtually no peaker units we resort to load-shedding! DR might also manage variability in supply from renewables such as wind and solar PV 25 Load Profiles Summer Months MW Jan 13-Jan 25-Jan 6-Feb 18-Feb 1-Mar 13-Mar 25-Mar 6-Apr 18-Apr 30-Apr 12-May 24-May Days in Year 5-Jun 17-Jun 29-Jun 11-Jul 23-Jul 4-Aug 16-Aug 28-Aug 9-Sep 21-Sep 3-Oct 15-Oct 27-Oct 8-Nov 20-Nov 2-Dec 14-Dec 26-Dec S17 S21 S1 S5S9S13 Hrs in Day 13

14 Short Run Marginal Cost Curve & Price Duration Curve * This price duration curve shows only the wholesale energy prices corresponding to the generation component of customer s electricity bill. T&D costs are added onto these wholesale energy costs. Demand Response can help balance supply & demand Energy Efficiency

15 Integrating energy efficiency and demand response Thermal Ice Storage Building Automation Emergency Generators Lighting Controls Energy Efficient Motors Variable Speed Drives Air Compressor System Opportunities for DR Program Participation Customer Type Residential Commercial Industrial Equipment / Building Component Control Strategy Emergency (Capacity) DR Programs Economic (Energy) Ancillary Regulation & Reserve Air Conditioners Cycling/Forced Demand Shedding Water Heaters Cycling Pool Pumps Cycling Chillers Demand limiting during on peak period Chillers Pre-cool bldg over night- storage HVAC DX Forced Demand Scheduling Refrigerator/ Prioritized Demand Shedding Lighting Scheduled dimming of selected circuits Chillers Demand Limiting on time Schedule Electric Furnace Demand Limiting through Heat Stages Electric Furnace VSDs Curtail (during peak period) Limit Output on Scheduled basis Production Eqpt Prioritized demand on selected units 2010 Customized Energy Solutions Ltd

16 Summary There is tremendous growth potential for renewable integration as well as demand response in India Current grid and supply mix is not geared to tackle the potential challenges that could impact power quality and reliability Smarter grids utilizing emerging technologies such as energy storage and smarter regulation can help Need to learn from international experiences as well as challenges faced by wind energy in recent years 31 Contact US Folsom, CA Richardson, TX Carmel, IN New York, NY Philadelphia, PA Midlothian, VA Mumbai, India Pune, India Customized Energy Solutions Ltd Walnut Street, 22 nd Floor Philadelphia, PA USA Phone: Fax: Dr. Rahul Walawalkar Vice President, Emerging Tech & Markets Phone: Mobile: Customized Energy Solutions India Pvt. Ltd. A 501, GO Square Aundh - Hinjewadi Link Rd, Wakad Pune, Maharashtra India Phone: info@ces-ltd.com