Model Regulation on Smart Grid by Forum of Regulators

  1. Applicability
  • These Regulations shall be applicable to all Generating Companies, Transmission Licensees, Distribution Licensees & consumers in the State & connected to the state grid.
  1. New Concepts
    • “Aggregator” is an entity registered with the Distribution Licensee to provide aggregation of services like demand response services under the demand response mechanism, Distributed Generation, Energy Storage etc.
    • “Interoperability” means the measure of ease of integration between two systems or software components to achieve a functional goal;
    • “Wide Area Measurement Systems” is advanced measurement technology, information tools & operational infrastructure facilitating the management of large power systems to enhance the system operator’s “situational awareness” for safe & reliable grid operation;
    • “Smart Grid” is an electricity network that can cost-efficiently integrate all users connected to it, in order to ensure economically efficient, sustainable power systems with low losses & high levels of quality & security of supply & safety.
  1. Smart Grid Objectives: To enable integration of various smart grid technologies & bring improvement in generation, transmission & distribution, enhance network security, integrate renewable energy into the grid.
  1. Constitution of Smart Grid Cell, its roles & responsibilities:
    • Every transmission licensee, distribution licensee shall, constitute a Smart Grid Cell.
    • The Smart Grid Cell shall be responsible for:
  2. Baseline study & development of data
  3. Formulation of Smart Grid Plans, Programmes, Projects,
  • Design & development of Smart Grid projects including cost benefit analysis, plans for implementation, monitoring & reporting & for measurement & verification
  1. Seeking necessary approvals to Smart Grid Plans, Programmes, Projects
  2. Implementation of Smart Grid programmes
  3. Any other additional function that may be assigned by the Commission.
    • The licensees may combine activities related to Energy efficiency, Demand side management & Smart Grid implementation within the same cell.
  1. Baseline study & development of data:
    • The Licensees shall undertake baseline study to identify the targets & final outcomes.
    • The licensees shall undertake study to estimate potential for employment of specific efficiency technologies & applications, establish key performance indicators etc.
    • As per study, the licensees shall develop smart grid programme for its area of supply.
  1. Formulation of Smart Grid Plan, Programmes, Projects:
    • The licensees shall submit an Multi-Year Smart Grid Plan for the approval of Commission.
    • All Smart Grid projects requiring investments of more than Rupees 10 Crores shall be submitted to the Commission for prior approval of investments:
    • Provided that investments of less than Rupees 10 Crores shall not require prior approval of the Commission if it is part of Multi-Year Smart Grid Plan of the utility approved by the Commission
    • The proposal for Smart Grid Projects shall include
  2. Detailed Project Report
  3. Customer engagement & participation plan as applicable
  • Training & capacity building plan &
  1. any other information that may be stipulated by the Commission from time to time:
  1. Approval of Smart Grid Plan, Programme, Project Document
    • The Commission shall approve a Smart Grid Projects in line with these Regulations.
    • The Commission may take assistance & advice of experts as it deems necessary.
    • The Commission while according approval to the proposals, may identify costs, relating to the programme, project, & decide the methodology, procedure, process for recovery of such costs.
    • The Commission may provide the incentive / dis-incentive mechanism for the licensees linked to the execution, implementation & performance during the life of the project.
    • The Commission may also specify financial incentives/dis-incentives to participating consumers to encourage active & effective participation in the Smart Grid programs.

  1. Execution of Smart Grid projects
    • The licensees shall execute the projects in line with the approval given by the Commission.
    • The licensees shall normally adopt the system standards as per Regulations notified by the CEA. In respect of network, communication, products, interoperability & cyber security, the standards as provided by BIS or such appropriate authority shall be adopted.
    • The Regulations relating to standards of performance as notified by the Commission shall apply.
    • The licensees & other agencies responsible for implementation of the Smart Grid projects shall ensure that protection of consumer data & consumer privacy is accorded the highest priority.
  1. Mechanism for Cost Recovery
    • The licensees shall identify the net incremental costs, associated with planning, design & implementation of projects.
    • The licensees may propose methodology for recovery of net incremental costs through tariff or any other mechanism.
    • In order to qualify for cost recovery, each program must be:
  2. Approved prior to implementation &
  3. Implemented in accordance with the approved program plan.
  1. Smart Grid Programme, Project Completion Report
    • The licensees will prepare & submit a detailed Project Completion Report & submit the same to the Commission within one month of completion of such project.
    • The Report shall cover the project expenses, physical achievements, constraints & difficulties faced, & deviations, if any.
    • The licensees shall place the completion report in public domain through its website.
  1. Monitoring, Evaluation, Measurement & Verification of execution & performance
    • The Smart Grid projects shall be monitored & evaluated based on appropriate methodology including Key Performance Indicators as decided by the Commission.
    • The licensees shall also submit an evaluation report to the Commission, which inter alia will include outcomes, benefits, lessons learnt & way forward.

  Views on the Regulations:

  • These regulations are good to start with.
  • However, more detailed regulations would have to be prepared by respective SERC’s.
  • Key Performance Indicators for evaluation need to be built-in in the regulations.
  • Same is the case for Technical standards to be followed.

About the Author:

Abhishek Amarnani has completed his MBA in ‘Power Management’ from National Power Training Institute (NPTI), Faridabad and is a B.E. in ‘Power Generation’ from NPTI, Nagpur. Abhishek wants to ‘create a difference’ in the power sector and is currently employed with Feedback Infra’s Energy division

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1 Response

  1. Shashank says:

    Well Done Abhishek Amarnani !!!

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