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Project Report

Joint Research on
Accelerated Deployment of
Smart Grid Technologies
in India

Sponsored by
New Energy and Industrial Technology
Development Organization (NEDO)
Project Report

Joint Research on
Accelerated Deployment of
Smart Grid Technologies
in India

Sponsored by
New Energy and Industrial Technology
Development Organization (NEDO)
© New Energy and Industrial Technology Development Organization, 2013

Suggested format for citation


T E R I. 2013
Joint Research on Accelerated Deployment of Smart Grid Technologies in India
New Delhi: The Energy and Resources Institute. 42 pp.
[Project Report No. 2013IE01]

Unveiled at 5th India-Japan Energy Forum 2013 and opening


ceremony of 7th Renewable Energy India Expo 2013.

About Renewable Energy India Expo 2013: The Renewable Energy


India (REI) Expo is Asia’s largest and most influential renewable energy
event. Running successfully in its 7th year, the 2013 REI is scheduled
from 12th - 14th September, at the India Expo Centre, Greater Noida,
India. This event provides tremendous opportunities to professionals from the
solar PV, solar thermal, wind, biomass, geothermal, hydro and energy efficiency
industries to network, do business and discuss the growth, challenges and future of
the renewable energy industry.

For more information, visit http://www.ubmindia.in/renewable_energy

For more information


Project Monitoring Cell
T E R I Tel. 2468 2100 or 2468 2111
Darbari Seth Block E-mail pmc@teri.res.in
IHC Complex, Lodhi Road Fax 2468 2144 or 2468 2145
New Delhi – 110 003 Web www.teriin.org
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Table of Contents
1. Introduction 5

2. SMART GRID INITIATIVES IN INDIA 7

2.1 Smart Grid Pilot Project in Rajasthan 9

2.2 Smart Grid Pilot Project in Haryana 10

2.3 Smart Grid Pilot Project in Assam 11

3. SMART GRID INITIATIVES IN JAPAN 13

3.1 Overview of Japanese Power Sector 13

3.2 Yokohama Smart City Project 17

3.3 Kitakyushu Smart Community Project 21

3.4 Smart Grid Pilot Project in Toyota City 27

3.5 Keihanna Eco City Project 29

4. CONCLUSION 33

5. WAY FORWARD 35

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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 1

1. Introduction
Availability and accessibility of adequate electricity infrastructure is necessary for ensuring continued economic
development. With 223 GW of installed capacity, India’s power sector is now the fourth largest in the world, but
at the same time faces significant energy and peak shortages. Energy and peak shortages across India stood at 8.7%
and 9%, respectively in 2012–13. Further, the per-capita consumption of electricity in India is only about one-
fourth of the world average and only 66% of the people have access to electricity.
India is witnessing a tremendous growth in demand of electricity and the potential demand by 2032 is estimated
to be as high as 900 GW. With limited and depleting conventional energy resources, India has been pursuing
an aggressive renewable generation programme. Targets for Renewable Energy (RE) generation in the 12th Five
Year Plan of the Government of India (GOI) is stated at 36 GW, which will increase the current 12% share of RE
(excluding hydro) to 20% by end of this decade. A power system of this size, growing at a pace of 8–10% per
year, with an increasing share in RE, requires smarter systems to manage it efficiently and ensure its stability and
reliability. It is important not only to manage the generation but also the loads in an optimum and efficient manner.
Transmission and distribution losses are still very high in the Indian power system and the distribution network
hence aggregate technical and commercial (AT&C) loss reduction continues to be the top priority of both
governments and utilities. Smart Electric Grid which is an application of digital information and communication
technologies (ICT) can help in monitoring, measuring, and even controlling power flows in real time that can
contribute to the identification of losses and thereby help in taking appropriate technical and managerial actions
to arrest the losses.
Other areas where smart grid technologies can play an important role are outage management and decentralized
generation. There is a growing need for minimizing the frequency, duration of outages and power cuts to not only
ensure the reliability of power supply but also to ensure higher level of consumer satisfaction. Further, onsite power
generation and consumption can also contribute significantly in bridging the demand supply gap. The surplus
power generated this way can also be supplied back to the grid. In the present scenario, there is an important
requirement of facilitating consumers to become ‘prosumers’, i.e., energy producing consumers.
India has also recently launched the National Mission on Electric Mobility (NMEM), with a target of 6 million
electric vehicles — 4 million two-wheelers and 2 million four-wheelers — by 2020. For an efficient rollout of the
Electric Vehicle (EV) programme, there is a need for upgrades in electrical distribution infrastructure and smarter
systems which will control/limit simultaneous charging of hundreds of EVs from the same feeder. Immediate policy-
level support is required to build enabling infrastructure to integrate EVs in to the electrical network so that millions
of EVs connected to the power system can be leveraged as Virtual Power Plants (VPPs) that can store energy when
there is surplus generation and support the grid during moments of deficit. Vehicle to Grid (V2G) technologies are
evolving rapidly that can achieve these objectives.
In this context of increasing demand–supply gap of electricity and the need to optimize electricity usage, it
has become imperative for India to focus on smart grids. The idea behind India’s smart grid vision is to transform
India’s power sector to develop a secure, adaptive, efficient, and sustainable system within a stipulated time-frame
that provides reliable and competitive energy to meet the needs and aspirations of all citizens through active
participation of all stakeholders and innovative technologies and policies.
A number of initiatives have been undertaken across the world relating to accelerated implementation of smart
grids. In 2010, the Japanese government introduced a roadmap for implementing smart grid with emphasis on
developing low-carbon societies and deployment of the natural grid to reduce greenhouse gas emissions. In this
regard, a number of demonstration projects have been implemented by the Ministry of Economy, Trade and Industry

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2 Joint Research on Accelerated Deployment of Smart Grid Technologies in India

(METI) and New Energy and Industrial Technology Development Organization (NEDO) in Japan and also in other
countries such as Indonesia, the USA, France, etc. In Japan, METI is funding four smart community pilot projects
in the cities of Yokohama, Toyota City, Keihanna Science City, and the Kitakyushu. Initiatives such as installations
of smart metres, integration of EV car-sharing system, time of use and critical peak pricing rates, demand–response
programme, optimization of decentralized generation (through RE sources), etc., have been implemented during
the pilot phase. With the above background, The Energy and Resources Institute (TERI) undertook a joint research
study with NEDO to accelerate deployment of smart grid technologies in India and identify synergies with Japanese
experience on implementation of smart grids.

1.1 Objectives and approach followed for this study


The broad objective of this study was to analyse Japanese experiences of implementing smart grid technologies and
identify areas for technology collaboration between India and Japan. In this regard, 3 out of the 14 smart grid pilot
projects were selected in-consultation with Ministry of Power. This include smart grid pilot project planned to be
implemented in Jaipur, Rajasthan; Panipat, Haryana; and Guwahati, Assam.
TERI and NEDO team visited the sites of these pilot projects to understand the status of the existing policy and
technological environment with regard to promoting smart grid technologies. Interactions were not just undertaken
with the management of the utilities, but also ground staff and targeted consumers to understand the specific
requirements of the utilities and the consumers in particular. Subsequently, the experience related to deployment
of smart grid technologies in the four smart community projects (funded by METI) in Japan was studied. Interactions
were carried out with various technology providers (including FUJI Electric, NTT Communication, NTT Facilities,
Mitsui Corp, Shimizu Corp, Mitsubishi Electric, Toshiba, Hitachi and Sony) in Japan to identify appropriate smart
grid technologies for collaboration. Site visits were also conducted for the two smart community pilot projects
in Kityakushu and Yokohama city. Further, technologies and functionalities implemented in the other two pilot
projects in Toyota and Keihanna city were studied from the information available in the public domain. Various
meetings and site visits carried out for the present study are presented in the table below.

Table 1 Chronology of meetings and site visits carried out under this study

Time period Activities

May, 13 Interactions with Ministry of Power and identification pilot sites for the study

25th June, 13 Discussion with JVVNL and site visit to Sanganer

28th June, 13 Discussion with UHBVN in Chandigarh

2nd July, 13 Discussion with APDCL and site visit in Guwahati

5th July, 13 Site visit to Panipat

11th July, 13 Discussion with JSCA in Kawasaki

12th July, 13 Meeting with NTT Communications, Toshiba and others.

16th July, 13 Meeting with Fuji Electric and Shimizu Corp.

17-18th July, 13 Site visit to smart community pilot project in Kitakyushu

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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 3

Time period Activities

19th July, 13 Meeting with TEPCO, and Hitachi. Site visit to Yokohama smart city project

29th August, 13 Meeting with JVVNL and site visit with technology companies

30th August, 13 Meeting with UHBVN and site visit with technology companies

10-11th Sept, 13 Indo-Japan Energy Forum

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4 Joint Research on Accelerated Deployment of Smart Grid Technologies in India

2. Smart Grid Initiatives in India


Over the past couple of years, several programmes and policy initiatives have been taken towards the development
of Smart Electric Grids in India. One of the most important initiatives taken by the Ministry of Power (MOP),
Government of India (GOI), has been the Restructured Accelerated Power Development and Reforms Programme
(R-APDRP) which is ensuring that some of the key elements of Smart Grid infrastructure — SCADA, GIS, Consumer
Indexing, and DT Metering — will soon be in place in most electricity distribution companies (Refer Box 1).

Box 1: Restructured Accelerated Power Development and Reforms Programme (R-APDRP)

The Ministry of Power, Government of India, has launched A-APDRP in the XIth Five Year Plan. Power Finance Corporation
Limited (PFC) has been designated as the Nodal Agency for the programme. This is an IT initiative by Distribution Utilities
in India under which they are building IT Infrastructure, IT Applications, and Automation Systems.
The size of the programme is to the tune of Rs 500 billion. The programme consists of Part-A (around Rs 10,000
crore) covering IT application in the electricity distribution system and Part-B (around Rs 40,000 crore) covering the
system strengthening, improvement, and augmentation of distribution system capacity. The programme is proposed to
be implemented on an all-India basis covering towns and cities with a population of more than 30,000 (10,000 in case of
Special Category States, such as Assam in north-east India) as per population data of 2001 Census. Additionally, in certain
high-load density rural areas with significant loads, works of separation of agricultural feeders at High Voltage Distribution
System (11kV) will also be taken up.

The activities to be covered under each part are as follows:

Part A Part B Part C

Consumer Indexing, Asset Mapping; Renovation, modernization, and Capacity building


strengthening of 11 kV substations and development of
and transformers franchisees;

GIS Mapping of the entire distribution Re-conductoring of lines at 11 kV Validation of Baseline


network; level & below; Data;

Automatic Meter Reading (AMR) on DT & Replacement of electromagnetic Project Evaluation;


Feeders; meters with tamper proof electronic
meters;

Automatic Data Logging for all Distribution Load bifurcation and load balancing Asset and Maintenance
Transformers and Feeders; Management

SCADA/DMS in big towns/cities (with HVDS (11kV) Consumer Attitude Survey


population>4 lakh and energy input>
350 MU)

Feeder Segregation/Ring Fencing; Installation of capacitor banks and


mobile service centres, etc.

Establishment of IT-enabled customer service Aerial Bunched Conductors in


centres populated areas;

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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 5

At the same time, the government has taken initiatives such as the formation of the India Smart Grid Task Force
(ISGTF) and the India Smart Grid Forum (ISGF). ISGTF is an inter-ministerial group which serves as government
focal point for activities related to Smart Grid in India while ISGF is a public–private partnership initiative of
the MoP for accelerated development and deployment of Smart Grid technologies in the Indian power sector.
Both these groups work on a range of issues from distributed generation, renewable, cyber security to advanced
transmission and distribution, metering, communications, etc.
Apart from these, various smart grid projects have been implemented throughout the country. Power Grid
Corporation of India Limited (PGCIL) in collaboration with the Puducherry government is going to implement
Smart City project in the country. The Energy and Resources Institute (TERI) has developed a first-of- its kind
renewable energy based Smart Mini-Grid (SMG) System in India, which incorporates optimum utilization of power
generated from renewable energy sources at different operating conditions, for ensuring supply of reliable and
good quality power. Another initiative taken by MoP with the support of ISGTF and ISGF is to launch India Smart
Grid Knowledge Portal (ISGKP) which is a knowledge-sharing platform.
Further, based on the recommendation of ISGTF, MoP has approved 14 Smart Grid pilot projects in various
states to showcase the relevance of Smart Grid on different aspects. These 14 pilots are expected to help technology
section guides and business case developments for larger projects in the next phase. Multiple functionalities such
as Advanced Metering Infrastructure (AMI), Outage Management System (OMS), Peak Load Management (PLM),
RE integrations, etc., have been included in these pilot projects.
Various working groups (including members from CEA, CPRI etc.) under ISGF are also focusing on the
development of Smart Gird Interoperability and Standards and recently they have introduced Functional
Requirements Specification of Low Cost Single-Phase Smart Meters to roll-out in proposed Smart Grid pilots.
Among these 14 pilot projects, three sites in Jaipur (Rajasthan), Panipat (Haryana), and Guwahati (Assam) have
been selected for the current study. The main objectives of implementing Smart Grid pilot project in the three
selected sites are to reduce AT&C losses, reduce frequency of outages and time for restoration, and improve quality
of power supply and peak demand management. Functionalities proposed for achieving these objectives mainly
includes implementation of AMI, OMS, and PLM, among others. Similar pilot projects on Smart Grid and Smart
Community were implemented in Japan wherein initiatives such as installations of Smart Metres, integration of EV,
time of use and critical peak pricing rates, demand–response programme, optimization of decentralized generation
(through RE sources), etc., have been implemented.
The selected three pilot projects are discussed in detail in the following sections based on specific detailed
project reports that are compiled on the basis of utilities and information provided during the site visits.

2.1 Smart Grid Pilot Project in Rajasthan


The pilot project in the State of Rajasthan has been planned to be implemented in Sanganer Subdivision of Jaipur.
Electricity Distribution in Sanganer is done by the Jaipur Vidyut Vitran Nigam Ltd (JVVNL). JVVNL supplies power
to eastern Rajasthan covering 12 districts. Sanganer subdivision covers 98 km2 of area with a population of 400,000.
This subdivision has 34,752 consumers. Present distribution system has energy input and peak demand as 148 MU
and 37 MW, respectively. Overloaded system is resulting in frequent interruption of supply, poor voltage profile,
and technical losses. AT&C losses during FY 2012–13 were 19.10% which include 7.6% technical and remaining
11.5% commercial losses.

With this background, implementation of various Smart Grid technologies has been proposed with the following
objectives:
ƒƒ Reduction in AT&C losses
ƒƒ Enhanced consumer participation in energy management
ƒƒ Improvement in reliability by reduction in outages and duration
ƒƒ Increase in consumer satisfaction
The initiatives and facilities planned to achieve these objectives are:
ƒƒ Advanced Metering Infrastructure (AMI): AMI to be installed in Sanganer Subdivision of Jaipur shall have
facilities for demand-side management, demand response programme, peak load management, and two-way

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6 Joint Research on Accelerated Deployment of Smart Grid Technologies in India

communications. Under this, Smart Metres are proposed to be installed for all the LT (low-tension) industrial
consumers with display units. This will help in the monitoring of load on a real time basis and reporting of
metre tampering. The utility will be able to detect theft on real time basis and have the control to disconnect
the consumer on non-payment of bills and for tamper events. Communication of AMI with Data Concentrator
Unit (DCU) is planned to be done through GPRS.
ƒƒ Peak Load Management (PLM): Main objective of PLM is to reduce the peak demand and hence reduce cost of
power purchase by minimizing purchase of power through Unscheduled Interchange (UI) or power exchanges
which are costly. PLM will include implementation of the demand–response program and charging of variable
prices for peak and off peak hours for demand management. This management of peak demand would be done
using Smart Metres, which have been proposed to be installed as part of AMI.
ƒƒ Outage Management System (OMS): Primary objective of OMS is to reduce frequency and duration of
outages which will increase consumers’ level of satisfaction. Equipment such as Fault Passage Indicators and
Distribution Transformer Monitoring Units (DTMU) will be installed for identification of fault location and
prevention of DT failure respectively. Auto-reclosers, sectionalisers, and isolators will be installed at different
locations which will help in maintaining the availability of line in case of faults. RTUs would be installed at
each substation for data collection and communication to enable real time monitoring.

This system will have interface with SCADA, GIS mapping, and a customer care centre which are already being
planned under R-APDRP.

2.2 Smart Grid Pilot Project in Haryana


The pilot project in the State of Haryana has been planned to be implemented in the city Subdivision of Panipat.
Electricity distribution in this subdivision is done by Uttar Haryana Bijli Vitran Nigam Ltd. (UHBVNL). The city
subdivision of Panipat covers 16 km2 of area with a population of 250,000. This subdivision has 31,914 consumers.
Present distribution system has an annual energy consumption and unrestricted peak demand as 132 MU and 42
MVA, respectively. Overloaded system is resulting in frequent interruption of supply, poor voltage profile, and
technical losses. AT&C losses are estimated to be 36% which are highest among the three selected pilot projects.
Moreover, the average failure rate of distribution transformer for the last three years was 7.9%.

To overcome these challenges, implementation of various Smart Grid technologies have been proposed with the
following objectives:
ƒƒ Reduction in AT&C losses
ƒƒ Enhanced consumer participation in energy management
ƒƒ Improvement in reliability by reduction in outages and duration
ƒƒ Increase in consumer satisfaction
ƒƒ Integration of RE resources for sustainable development

The initiatives and facilities planned to achieve these objectives are:


ƒƒ Advanced Metering Infrastructure (AMI): AMI to be installed in Panipat shall have a facility for demand-
side management, demand response, peak load management, and two-way communications. Under this,
Smart Metres shall be installed on all domestic, commercial, and other categories of LT consumers in the City
Subdivision of Panipat. This will help in monitoring of load on real time basis and reporting of metre tampering.
Utility will be able to detect theft on real time basis and have the control to disconnect the consumer on non-
payment of bills and for tamper events. Communication of AMI with Data Concentrator Unit (DCU) is planned
to be through GPRS.
ƒƒ Peak Load Management (PLM): Main objective of PLM is to reduce the peak demand and hence reduce cost of
power purchase by minimizing purchase of power through Unscheduled Interchange (UI) or power exchanges
which are costly. PLM will include implementation of demand–response programme and charging variable

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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 7

prices for peak and off peak hours for demand management. This management of peak demand would be done
using Smart Metres, which have been proposed to be installed as part of AMI.
ƒƒ Outage Management System (OMS): The primary objective of OMS is to reduce frequency and duration of
outages which will increase consumers satisfaction. Equipment such as Fault passage indicators and Distribution
Transformer Monitoring Units (DTMU) will be installed for identification of fault location and prevention of DT
failure, respectively. Auto-reclosers, sectionalisers, and isolators will be installed at different locations which
will help in maintaining the availability of line in case of faults. RTUs will be installed at each substation for
data collection and communication to enable real time monitoring. The SCADA system would be installed
under the pilot project for monitoring and controlling of 11 kV feeders. This system will have interface with
GIS mapping and customer care centre which are already being planned under RAPDRP.

2.3 Smart Grid Pilot Project in Assam


Assam Power Distribution Company has been facing an acute power shortage. A pilot project in the state has
been proposed to be implemented in the city of Guwahati comprising three sub-divisions namely Paltanbazar
(with AT&C losses of 12.6%); Ulubari (20.7%) and Narengi (6.8%); and IIT Campus, Guwahati (for R&D purpose,
demand response).

The major objectives of the proposed Smart Grid pilot project are:
ƒƒ Reduction in AT&C losses
ƒƒ Increase in billed energy by load curtailment instead of load shedding for demand management
ƒƒ Improvement in reliability by reduction in outages and duration
ƒƒ Integration of RE resources for sustainable development

The initiatives and facilities planned to achieve these objectives are:


ƒƒ Advanced Metering Infrastructure (AMI): AMI will be installed which shall help in improving billing
efficiency, have facility for demand-side management, demand response, peak load management, and two-
way communication. This will help in monitoring of load on a real time basis and reporting of metre tampering.
Smart Meters with embedded Radio Frequency chips that rely on the network infrastructure to relay critical
data to the Data Centre have been planned to be deployed. With regard to metering, an important initiative has
been the introduction of pre-paid metres — even made mandatory for apartments — which are independent
of any manual intervention and lead to advance collection of money. This has reduced delays and defaults in
receipt of bill payments.
ƒƒ Peak Load Management (PLM): The main objective of PLM is to reduce the peak demand and hence reduce
cost of power purchase by avoiding purchase of power during peak when it is costly and to increase the
security of the distribution network. Implementation of PLM will include load forecasting, comparison of
various peak management strategies, and identifying customer-side demand responses. Time of Day tariff has
already being implemented for HT industries.
ƒƒ Outage Management System (OMS): Utility has planned to deploy a comprehensive and integrated outage
management system and aims to develop a common operations model and decision support environment for
its Control Centre. The solution will work with the Smart Metres to be deployed under AMI, as well as GIS and
SCADA (part of R-APDRP).
ƒƒ Distributed Generation: It is being planned to integrate a PV farm together with its battery backup with
the grid. Even though the quantum of distributed generation considered is minimal, it is expected that the
methodology and design derived by this project would be scaled up and used when distributed energy
resources are integrated in future. This system also, like the other two pilot projects, will have interface with
SCADA (commissioning expected by April 2014), GIS mapping, and a customer care centre which are already
being planned under R-APDRP.

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8 Joint Research on Accelerated Deployment of Smart Grid Technologies in India

3. Smart Grid Initiatives in Japan

3.1 Overview of Japanese Power Sector


With an installed generation capacity of 230 GW and electricity generation of 918 billion units1 (FY 2011–12),
Japan is the third largest electricity producing country in the world. The power sector is mainly governed by the
Electricity Business Act under which a license must be obtained by any entity before engaging in the electricity
business from the Ministry of Economy, Trade and Industry (METI). The Japanese power sector can be broadly
classified in retail supply (distribution) business, wholesale business, transmission, and generation. These are
elaborated in the following sections.

3.1.1 Retail supply


There are 10 vertically integrated General Electricity Utilities (also known as Electric Power Company) which are
responsible for power generation, transmission, and distribution of electricity to their respective service areas.
These utilities mainly source power from their own generating stations, wholesale suppliers, other utilities, and the
Japan Electric Power Exchange. Figure
Figure 1: Annual electricity sales for FY 2010–11 for
1 shows the annual electricity sales for
the 10 electric power companies
FY 2010–11 for the 10 utilities. Apart
from this, there are three other types Tokyo 2682
of retail suppliers. These are Specified- Kansai 1460
Scale Electricity Utilities, Specified
Chubu 1279
Electricity Utilities, and Specified
Electric power company

Suppliers. Kyushu 875


Tohoku 753
ƒƒ Specified-scale Electricity
Utilities: The consumers with Chugoku 601
contract demand of 50 kW and Hokkaido 321
above can source their power from Hokuriku 289
utilities other than the General
Shikoku 284
Electricity Utility. Specified-scale
Okinawa 74
Electricity Utilities are allowed
to supply electricity to these 0 500 1000 1500 2000 2500 3000
consumers and they must make Billion units
certain filings, but need not obtain Source: Operating and financial data published by Japan Electric Power Information, Inc.
a license from METI.
ƒƒ Specified Electricity Utilities: They are allowed to supply electricity to meet demand at a specified service
point, such as a specific building, after obtaining a license from METI.
ƒƒ Specified Supplier: They are allowed to supply electricity to its own associates like subsidiaries, etc. They also
need to take prior approval from METI.

3.1.2 Wholesale supply


Further, there are two major wholesale electricity utilities (generating companies) which are supplying electricity to

1 Japan Electric Power Information Center

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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 9

General Electricity Utilities. These wholesale electricity utilities have obtained license from METI. Apart from this,
there are few Independent Power Producers (IPPs) and generators using renewable sources.

3.1.3 Transmission and distribution


The transmission and distribution Table 1: Voltage-wise length of transmission and
network is owned and operated by distribution network in Japan
General Electricity Utilities (Electric
Power Companies). These utilities are Transmission lines Circuit length (km)
obliged to provide transmission services
Voltage Overhead Underground
to other wholesale or retail suppliers
in accordance with the tariff filed with 500 15,016 177
METI.
The transmission grid is divided in 275 14,883 1,456
two, with eastern Japan transmitting at
220 5,034 124
a frequency of 50Hz, and the western
grid at 60Hz.2 Both of these grids are 187 5,217 35
interconnected through three Frequency
Converter Facilities (FCFs), Sakuma 110-154 28,488 1,895
and Higashi-Shimizu in Shizuoka
66-77 68,123 12,812
Prefecture, and Shin-Shinano in Nagano
Prefecture, and are in operation with a <55 21,643 9,692
total conversion capacity of 1130MW.
Table 1 shows the voltage-wise length of Distribution Lines
3,968 68
transmission and distribution network in [thousand km]
Japan. Source: Japan Electric Power Information Center

3.1.4 Generation Figure 2: Source-wise and year-wise installed power


The generation sector is dominated by generation capacity in Japan
General Electricity Utilities which are 300
responsible for supplying electricity
in their respective areas. The peak 250
load3 in Japan is around 154 GW with
annual consumption of 926 TWh (FY 200
2011). Figure 2 shows the year-wise and
GW

source-wise installed power generation 150


capacity in Japan. Nearly 65% of power
is generated from thermal — coal, gas, 100
and oil — based power plants and 17%
50
is generated from nuclear and hydro
power plants each. With limited natural
0
resources, the country has been highly
02

03

04

05

06

07

08

09

10

11

dependent on imports for meeting


20
20
20
20

20

20

20

20

20

20

FY
FY
FY
FY

FY

FY

FY

FY

FY

FY

its energy requirement. Post 2011, Year


when a 9.0 magnitude earthquake and Thermal Nuclear Hydroelectric Wind power Solar cell
subsequent tsunami hit Japan’s North- Geothermal Fuel cell

2 Nesheiwat. Julia., Cross. S. Jeffrey., Japan’s post-Fukushima reconstruction: A case study for implementation of sustainable energy technologies, Energy Policy 2013
3 Peak load is the average value of the three highest daily loads at the transmission end occurring during the month in which the annual peak in recorded. Source:
Operating and Financial Data published by Japan Electric Power Information Center

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10 Joint Research on Accelerated Deployment of Smart Grid Technologies in India

East Pacific coast, power generation from nuclear power plants has decreased drastically. You may remove
this line.
While Japan has been working towards implementing Green and Smart Grid technologies, the earthquake
has also led to increased interest in accelerating these efforts. In 2010, the Japanese government adopted a Basic
Energy Plan which was the third such plan that the government had approved since the enactment of the Electricity
Business Act. It envisages improvement in Japan’s self-sufficiency rate from 18% to 40%, while reducing the carbon
dioxide emissions at least by 30% till 2030 compared to the 1990 level. The Basic Energy Plan emphasized on
measures such as building next-generation Smart Grid, establishing smart communities, demonstration projects
(both national and international), promoting installation of smart energy management systems, etc. The METI and
NEDO have also created the Japan Smart Community Alliance (JSCA), which is a public–private partnership initiative
involving various utilities, private and public organizations, think tanks, and academia. Apart from this, both the
METI and NEDO have launched Smart homes, Smart city and Smart community consortiums, and experiments in
several target cities.4 In the year 2010, METI took up an initiative of setting up Smart community pilot projects on a
massive scale. The METI received proposals from 20 areas, of which four areas/towns — city of Yokohama, Toyota
city, Keihanna Science city, and the city of Kitakyushu — were selected for implementation. The key objectives,
technologies and functionalities implemented in these four pilot projects are presented in the following sections.
TERI team also visited two of these pilot projects, namely Yokohama Smart City project and Kitakyushu Smart
Community project, in July 2013. Figure 3 provides the geographical location of these four pilot projects.

Figure 3: Smart Community pilot projects in Japan

Keihanna eco-city next-


generation energy and social
systems demonstration project

Kitakyushu smart
community project

Yokohama smart
city project

Toyota city low-carbon


society verification
project

4 Including smart community projects in Europe, USA, Indonesia and other countries.

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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 11

3.2 Yokohama Smart City Project


Yokohama is the capital city of Kanagawa Prefecture with total population of 3.69 million (August 2012).5 Tokyo
Electric Power Company (TEPCO) is responsible for electricity distribution in the city. The local government has
undertaken many initiatives in response to the climate change issues and for fostering Green growth. The city was
also selected by the Japanese government as Future City aimed at creating and promoting solutions for a variety
of social issues related to the environment and the aging society. Some of the local initiatives are Yokohama Anti-
Climate Change Action Policy, incentives for green buildings, subsidies for installation of renewable energy based
generation technologies, Yokohama Green Valley project and Yokohama Smart City project.

3.2.1 Objectives
The Smart City project was initiated with grant from METI and it covers three areas, namely Minato Mirai 21,
Kohoku New Town, and the Yokohama Green Valley area, with 165,600 households. The broad objective of this
project is to build and demonstrate the ‘Next Generation Energy Infrastructure and Social System’ for transformation
into a low-carbon city. This includes the following:
ƒƒ Introduce and demonstrate benefits of Energy Management Systems (EMS) such as Home EMS (HEMS), Building
EMS (BEMS), Factory EMS (FEMS), and Community EMS (CEMS)
ƒƒ Implementation of demand response programme for households, commercial, and industrial consumers
ƒƒ Installation of solar roof top systems and integration with grid
ƒƒ Demonstration of EV technology for demand response

3.2.2 Initiatives and target planned under the pilot


The Smart City project is a five-year (ending in 2014) pilot programme being undertaken with a consortium of
technology companies. Under this project, various applications are being installed for achieving the broad objective
of building a low-carbon city. Figure 4 presents shows the key functionalities and technologies introduced under
this project.

Figure 4: Various applications implemented under the Yokohama Smart City project

Solar PV HEMS BEMS FEMS EVs

Installation of solar PV Installation of HEMS Installation of BEMS FEMS has been Target of 2000 EV with
based generation up in 4000 households in 4 office buildings installed in sumitomo charging and
to 27 MW including apartments, and 2 commercial electric industries, Ltd. discharging facilities
Battery storage for and individual houses buildings This also integrates a
managing the Management of A system for large battery storage
intermittent power generation through consolidation of data system and system
solar PV and from BEMS is also and solar PV systems
implementation of installed
demand response
program

CEMS

Notes: HEMS: Household Energy Management System BEMS: Building Energy Management System
FEMS: Factory Energy Management System EV: Electric Vehicle CEMS: Community Energy Management System

5 http://jscp.nepc.or.jp/en/yokohama/, last accessed on 28th July, 2013

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The various applications being implemented under the pilot project are given in the following sections.
3.2.2.1 Implementation of demand response programme
Under the Smart City project, three types of incentive-based demand response programmes are being examined: (i)
Peak Time Rebates (PTR), (ii) Limited Peak Time Rebates (L-PTR), and (iii) Capacity Commitment Program (CCP).
Under the PTR method, rebates are paid for the amount of electricity not used during peak time periods, whereas
under the L-PTR method, consumers receive rebates for the amount of electricity that is registered below target
amounts (predetermined between the utility and consumers) during peak periods. In case of the CCP method,
financial incentives are provided when demand reductions below standard levels are achieved, and nothing is
provided if these targets are not attained. A combination of these options is being experimented under the pilot
project with all type of consumers — domestic, commercial, and charging stations. This will enable which type
of DR is the optimal type and which DR should be issued in what situation, etc., to be discovered. A similar
experiment was implemented in December 2012 with commercial consumers (BEMS) in which it was observed
that power demand decreased by 400 kWh (from 3,000 kWh to 2,600 kWh).6
Further, a demand-response experiment is planned in summer of 2013 (July–August) with households, for a study
of their consumption behaviour. Apart from this, information related to the ranking of amount of electricity used
by each household against other will also be provided to the each household. This is being done for stimulating
a competitive spirit within residents, and the changes in consumption customs generated by this information will
then be measured.
3.2.2.2 Energy management for industries
Under the Yokohama Smart City project, FEMS has been installed by Sumitomo Electric Industries, Limited in
their own factory along with a gas cogeneration system (6 units x 648 kW) which was installed prior to this
experiment. The company has also installed storage batteries (Redox flow cells) with a storage capacity of 5,000
kWh (maximum output of 1,000 kW) and a 200 kW concentrated photovoltaic (CPV) unit. The FEMS is now used
for optimal operation of a combination of these four sources of power supply including power purchased from
the power company. The FEMS is used to predict the amount of electricity generated by the solar power system
and the amount of electricity required in accordance with the factory’s production plan for controlling the energy
distribution for the factory with energy provided by the cogeneration system and storage batteries. This system can
also help in regulating the supply from solar system and batteries in the event of demand-response signal sent by
the utility.7
3.2.2.3 Multiple storage batteries for grid stability
A storage battery SCADA system is implemented under the Yokohama Smart City project for grid management.
Apart from the small battery system (installed in consumer premises), lithium-ion batteries with combined capacity
of 650 kW (300 kW, 250 kW, and 100 kW) are connected with the grid. The SCADA system connected to both
type of battery systems and is used for charging and discharging of these batteries depending upon demand–supply
situations and demand–response signals (for small batteries) issued by system operator.
3.2.2.4 Hybrid system for charging and recharging of Electric Vehicles (EV)
Under the Yokohama Smart City project an experiment for using a Battery and Charger Integration System (BCIS)
is also being carried out. This system consists of two chargers with a rated output of 50 kW, 64 kWh lithium-ion
storage batteries, an incoming transformer, and an electrical power controller. The charging facility is being used
for quick recharging of EVs by optimally using the chargers and thereby decreasing the actual peak demand of the
charging station during peak hours (when multiple EV are to be charges simultaneously). Further, this system is
being integrated with CEMS to examine the use of EV as a demand management tool. This means at the time of
high prices the charging station will use batteries for charging the vehicles and batteries can be recharged during
off peak hours when prices are low.

6 <http://jscp.nepc.or.jp/article/jscpen/20130226/341667/index2.shtml>, last accessed on 28th July, 2013


7 Japan Smart City Portal website, last accessed on 28th July, 2013

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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 13

3.2.2.5 Local energy generation


Under the smart city project, experiments are being conducted to test the viability of using local generation for
meeting the electricity requirements. In one such project in Yokohama, HEMS were installed in a newly built four-
story building with 24 housing apartments (owned by Tokyo Gas). The major source of power for this building
is ENE-FARM. This includes 140 solar power panels with a total output of 25kW, two shared solar water heating
systems, one 40 kWh nickel-hydrogen storage battery, and 10 fuel cells with capacity of 750 W each. The farm
also uses the waste heat generated during the electricity production for meeting the hot water requirement of the
households. The integrated control system predicts demand and supply for the next day’s electricity, hot water
demand for each household and solar electricity generation using the weather forecast. In addition to this, each
household is notified about this information through HEMS and they are encouraged to shift their hot water or
electricity demand during peak hours (next day) through incentives. As per the information available at the Japan
Smart Community Portal, approximately 60% of electricity demand can be covered by the solar generation and
fuel-cell batteries (during fine whether conditions), and approximately 90% of hot water demand can be covered
with the cogeneration system (in summer months).

3.2.2.6 Differential pricing for peak and off peak hours


The experiment is being conducted with all the participant consumers under which electricity prices during peak
hours are increased manifold (with a ceiling limit of YEN 150 per kWh) to assess the consumption behaviour due
to change in prices. Energy management systems such as CEMS, BEMS, and HEMS are designed in such a way
that they assist the consumer in optimally utilizing the grid power at the peak demand time. The consumers are
divided into control groups and their behaviour, with respect to change in electricity prices during peak hours, is
being studied. These control groups includes households with solar PV and HEMS, households with only HEMS,
households without HEMS, etc.

3.3 Kitakyushu Smart Community Project


Kitakyushu is a city located in Fukuoka Prefecture of Japan with a total population of one million. The local
government has implemented various projects related to controlling environment pollution, enhancing energy
efficiency, and waste recycling in the city. The Kyushu Electric Power Company is responsible for electricity
distribution in the city and the Sumitomo Metal Corporation (formerly Nippon Steel Corporation) is responsible for
electricity distribution in the Higashida district of Kitakyushu, which is its designated supply area. The Kitakyushu
Smart Community project (funded by METI) is being implemented in this specified supply area where a natural gas
cogeneration system of 3,3MW capacity is used for electricity and heat supply. In addition, the 6.6 kV distribution
systems are connected to Kyushu Electric Power’s power grid. The Sumitomo Metal Corporation operates the
Yahata Higashida natural gas based 33-MW cogeneration power plant which is used to provide heat and electricity
in the pilot area.

3.3.1 Objectives
The Smart Community project is being implemented in the Higashida area of Kitakyushu city. The Higashida
district emits 30% less CO2 than other areas in the city due to establishment of various environment friendly
technologies and new energy sources implemented by the local government. The broad objective of the Smart
Community project is to achieve a further 20% reduction, reducing CO2 emissions to more than 50% less than
other areas in the city.8 This includes the following:
ƒƒ To transform consumers who use energy, such as residents and businesses, into ‘prosumers’ by installing
photovoltaic arrays and other systems

8 Japan Smart Community Portal

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ƒƒ To implement demand-side self-management, where individuals and corporates work with energy providers
in managing electricity demand
ƒƒ To introduce dynamic pricing and incentive programmes

3.3.2 Initiatives and target planned under the pilot


The Smart Community project is a five-year (ending in 2014) programme being undertaken with a consortium of
technology companies. Under this project, various initiatives such as demonstration of Vehicle to Building, use
of hydrogen generated from steel plants for meeting the local energy needs, demonstration of energy management
systems, solar PV, etc., have been taken (Figure 5).

Figure 5: Various initiatives taken under the Kitakyushu Smart Community project

Regional energy Energy management Hydrigeb town Solar PV and energy EVs (V2B)
management station system storage
Optimum energy Installation of HEMS Supply hydrogen Installation of rooftop Demonstration of
distribution in in 225 households generated as by solar PV generation utilizing EV as storage
accordance with 50 Office building product in steel unit up to 400 kW battery
power-generating and industries factory to city area Installation of Discharges electricity
status via pipeline individual and large from EV to building
Link with local energy
Rationalization of management station Demonstration of scale storage battery systems via quick
control from the and automatically using fuel cells in system for demand and chargers and linking
demand side for controls power homes and public supply management with BEMS
optimization of facilities to generate
demand power and hot
Visualization of energy water supply from
and CO2 hydrogen

Notes: HEMS: Household Energy Management System BEMS: Building Energy Management System
EV: Electric Vehicle

Various functionalities and operational experiments being conducted under the Kitakyushu Smart Community
project are explained in the following sections.

3.3.2.2 Energy management in small commercial stores


Under the Smart Community project, small-scale stores and buildings are also integrated in the regional energy
management loop. The BEMS, along with a solar panel of 10 kW capacity, a lithium-ion storage battery (capacity
of 12 kWh), and a store controller, which controls equipment inside the store, are installed in two commercial
stores. At each store, electric current sensors are installed to monitor the power consumption of each appliance and
this data is used for forecasting the next day electricity demand. The BEMS controls the light and air conditioning
settings in order to minimize the cost of electricity, based on tariff signals communicated by CEMS.
In addition to this, refrigerated/freezer delivery vehicles, used by these stores are equipped with 5.5 kWh lithium-
ion storage batteries, which can be charged at either of these stores. These batteries are used for refrigeration in
the delivery vehicles when the vehicles are stopped. Information about status of charging and health of batteries
is provided to the driver through a dedicated server with the goal of determining the timing for recharging the
batteries.

3.3.2.3 Differential pricing for peak and off peak hours


The concept of differential pricing for peak and off peak period is implemented under the pilot project for all
consumer categories. The energy management system (HEMS, BEMS, etc.) helps the consumers in planning their

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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 15

electricity usage to minimize


Figure 6 Hourly electricity pricing during May to October
the overall electricity cost.
Based on the extent of Yen/kWh
power crunch for the day, 140 Level 5
demonstration was done on
an experimental basis, where 120
pricing fluctuated based on 100
Level 4
5 patterns, from ‘Level 1 (15
yen/kWh)’ to ‘Level 5 (150 Level 3
80
yen/kWh)’ was implemented.
Figures 6 and 7 show the 60
Level 2
hourly pricing of electricity 40 Level 1
implemented under the pilot
for summers (May to October) 20
and winters (November to
April), respectively. 0
00
00
00
00

6: 0
00
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00

10 0
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0:
Hours
four time periods, namely
peak time (13:00–17:00), day
time (10:00–13:00), living Figure 7 Hourly electricity pricing during November to April
time (8:00–10:00 and 17:00–
22:00 hours), and night time Yen/kWh
(22:00–7:00 hours). Different
140 Level 5
levels of pricing signals are
sent through CEMS. The price 120
between Level 2 and 5 are
Level 4
applied when the maximum 100
estimated temperature is Level 3
80
above 30 oC during weekdays
in summer, and when 60
the minimum estimated Level 2
temperature falls below 5 C o 40 Level 1
during weekdays in winter.
20
The electricity prices are not
varied during holidays. The 0
price level to be applied is
00
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6: 0
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0:

communicated through smart Hours


metres to the consumers either
a day before or on the morning of the day. Approximately, 230 households and 50 business offices are participating
in this experiment.

3.3.2.1 Energy management through CEMS and smart metres


Under the Kitakyushu smart community project a CEMS (also known as community Setsuden-sho) is installed in
smart community centre in the Kyushu Human Media Creation Centre. The system uses weather forecast for the next
day (temperature, intensity of solar radiation, wind volume, etc.) to estimate the total demand and the renewable
energy generation. Based on this, operating plan is drawn up for power generators and storage batteries within the
community. Consequently, a price for electricity is determined based on the supply and demand situation, and that
cost is transmitted to the households (HEMS). Subsequently, HEMS provide the revised demand schedule to CEMS,
and the overall operating plan is also revised (Figure 8).

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16 Joint Research on Accelerated Deployment of Smart Grid Technologies in India

Figure 8 Energy management systems in Kitakyushu Smart Community project

3.3.2.4 Household energy management through smart phones


The broad objective of implementing differential pricing is to change the energy consumption pattern of consumers.
In case of households, many times consumers are not able to access the display units (of HEMS, Smart Metres) as
they are away from the houses. In such cases, display of electricity rates on smartphone screens could allow for
changes in consumer behaviour and address this problem. Under the Smart Community project, iPhones were
provided to 11 households (on an instalment basis), to which the data from the CEMS is communicated. This data
is temporarily stored in the data distribution server, and then sent out to iPhones with the use of a Virtual Personal
Network (VPN). Further, this also involves the display of electricity-saving rankings for the participating households
to each other. An application that displays maps of nearby facilities related to the environment has also been
developed. According to the information available at Japan Smart City Portal, the application was used while away
from home and while at home, etc., with no particular bias being seen in location or time. Some users even used
it more frequently than checking the HEMS screens.

3.3.2.5 Multiple storage batteries for grid stability


Energy storage systems play a vital role in the management of variable power generated from RE sources such
as solar and wind. Under the Kitakyushu Smart Community project, a 300 kW community stationary-type lead
storage battery is installed in Yahata-Higashi ward, 100 kW and 10 kW lead storage batteries and a 10 kW Li-ion
storage battery are installed in the Kitakyushu Museum of Natural History and Human History, and a 10 kW lead
storage battery is installed in the Kyushu Human Media Creation Center. These batteries are connected to CEMS
through a storage battery management system. As mentioned above, CEMS creates an operating plan for the power
generators and storage batteries.

3.3.2.6 Energy management in industries


Electricity usages of individual industries differ from each other. Under the Smart Community project, FEMS is
provided to many industrial consumers with different production line ups. All FEMS are connected to CEMS in

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order to examine how effectively production plans can be modified for optimizing the use of electricity within the
community. These industrial consumers are using FEMS in number of ways for optimizing the electricity cost as
explained below.
The Watakyu Seimoa Corporation, which is involved in the washing, drying, and finishing of hotel linen and
clothes has implemented FEMS. The system adjusts the cleaning plan so that the items which consume more
electricity are processed during times when electricity rates are less expensive. This has enabled the industry to shift
its electricity consumption from peak to off peak periods.
The Yahata-Higashi Plant of Yaskawa Electric Corporation is a motor manufacturing unit. Implementation plans
for the production processes includes manufacturing of rotors and stators (motor parts) and assembly process.
The unit is using FEMS and battery storage systems for modifying the production plan and optimal utilization of
electricity to reduce the cost of electricity. The activities for which production plans cannot be modified are being
carried out with the discharge and recharge of storage batteries.
Another industrial consumer is Toyoda Gosei Co. Ltd., which is manufacturing grills, bumper moldings, and
other resin products for automobiles. FEMS installed in the factory not only provides information about electricity
consumption but also creates plans for the electricity generated by the solar power system and the recharge and
discharge of storage batteries. It also controls and adjusts LED lights within a range of 15% and 100% to make sure
that the floor area is illuminated at a level of 100 lux in consideration of the working environment.

3.3.2.7 Energy storage through fuel cells


Under the Kitakyushu Smart Community project, an experiment in which surplus electricity from solar PV systems
is stored with the use of hydrogen has been installed. The system consists of water electrolysis devices, hydrogen
storage tanks, and fuel cell batteries. The fuel cell batteries are high-molecular solid electrolytes with a capacity
of approximately 5kW, and the hydrogen storage tanks have a capacity of 20Nm3. The fuel cell batteries are a co-
generation system that can supply electricity and heating.
Further, in the Kitakyushu Museum of Natural History and Human History, 100 kW phosphoric acid fuel cell
batteries have been installed. In this experiment, hydrogen by-products generated by a steel foundry are supplied
via a pipeline to provide the museum with electrical power, and at the same time, the heat generated through
electricity generation is used to power the air-conditioning. This system is linked with the BEMS and CEMS for
optimization of electricity cost.

3.4 Smart Grid Pilot Project in Toyota City


Toyota is the largest city of Aichi Prefecture with a total population of 422,830 (April 2012).9 Chubu Electric Power
Company is responsible for electricity distribution in the city. The government has taken a number of initiatives
to implement the concept of ‘hybrid city’ in which residents, environmental considerations and technology come
together and work towards Green growth. The city has also been selected as the eco-model city by the Government
of Japan. Some of the initiatives of the government are forming a eco-management network for small- and medium-
scale industries, low-carbon society model, an Eco Points programme, establishment of a forest development
council, and the Toyota City Low-carbon Society Verification Project (Smart Melit).

3.4.1 Objectives
The Smart City project in Toyota city (Smart Melit) was initiated by METI in conjunction with few private enterprises.
It covers two districts – Higashiyama and Takahashi (67 households for demonstration of HEMS) — and Toyota city
as a whole for trials of a low-carbon transport system and demand response programme (160 households across the
city). The broad objective of this project is to build and demonstrate ‘Smart Mobility and Energy Life in Toyota city’

9 http://jscp.nepc.or.jp/en/toyota/index.shtml, last accessed on 30th July, 2013

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for creation of consumer-oriented low-carbon communities. It aims at 30% reduction in CO2 emissions by 2014 (as
compared to the 2005 level). The project includes the following:
ƒƒ Demonstration of benefits of HEMS, BEMS, and Energy Data Management System (EDMS) at the
community level
ƒƒ Operational experiment for demonstration of V2H technology
ƒƒ Development of Traffic Data Management System (TDMS), Intelligent Transportation System (ITS) including
development of a Harmonious Mobility Network transportation support system (Ha:mo), Smart Recharge
Systems

3.4.2 Initiatives and target planned under the pilot


The Smart Melit project is a five-year (initiated in 2010 and ending in 2014) pilot programme being undertaken
with a consortium of technology companies. This project aims at optimizing energy use throughout the society as a
whole. Several applications that are being implemented in various environments including household, commercial,
and transport sectors are provided in Figure 9.

Figure 9 Various applications implemented under the Toyota Smart Melit project

Individual energy Energy data management


Mobility
management system system

Installation of IIEMS in 67 new EDMS connected with individual Traffic data management system
household buildings with energy management system for (TDMS) and intelligent
solar panels, batteries optimal utilization of energy transportation system (ITS)
Demand response program Used for demand forecasting, Promotion of harmonious
for 160 households system planning and demand mobility network transportation
Installation of BEMS in response (Ha:mo)
commercial facilities open Introduction of 3100
24 hours next-generation vehicles
V2H (vehicle to home) system
with facility of charging and
discharging

3.4.2.1 Optimizing energy use at homes


Under this project, HEMS has been installed in 67 new households of the city. HEMS display units help in realizing
the generation and consumption of electricity along with other utilities like water. It also provides a power control
system which helps in optimal energy use. Another application that is being demonstrated in these households
is V2H system which not only allows vehicles to be recharged by homes; it also enables the storage batteries
mounted in vehicles to supply electric power to the homes.
Apart from these 67 households, 160 households across the city are participating in the demand response
programme. These have been divided in two groups with 80 households each. The 1st group is a reference group
and demand response programme is being implemented in the 2nd group. Electric metres equipped with data
transmission units have been installed in all the households and tablet-type terminals been distributed to the 2nd
group. The tablets are set up to display electricity consumptions and to receive demand response requests. The
households in the 2nd group can choose from two patterns of electricity rates- usual metered residential electric
service (at a flat rate of approximately 20 yen//kWh) or E-Life Plan (lower night rates and higher daytime rates).
Under this arrangement, electricity rates can be raised to a maximum of 110 yen per unit. The change in consumer
activity due to variation in prices will be verified by comparison with the consumption of households in the
1st group.

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3.4.2.3 Optimizing energy usage at commercial and public facilities


BEMS (Building Energy Management System) for commercial facilities (ex: clothes stores, restaurants etc.) developed
through the Toyota City’s Smart Melit project consists of BEMS controllers with built-in 6 kWh storage batteries,
heat-pump water heaters equipped with 460-litre hot water storage tanks, and rechargers for charging vehicles.
This is aimed at establishing an independent store energy management system while at the same time providing a
source of electricity for the collection and delivery vehicles that visit these stores.

3.4.2.4 Establishment of low carbon transportation system


As a mobility solution, Harmonious Mobility (Ha:mo) Network transportation support system has been installed. It
is a network system combining private car and public transportation efficiently while making transportation more
user-friendly, city-friendly and society-friendly by eradicating traffic congestion, cutting down on CO2 emissions
and reducing energy consumption waste.
This system comprises of (a) Ha:mo Navi which provides route guidance combining automobiles and public
transportation on smart phones (provides information on car navigation, available P&R (Park and Ride) parking lots,
departure and arrival times for trains, buses and other public transport, and connection routes) and (b) Ha:mo Ride,
a car sharing system using ultra compact electric vehicles. The main feature of Ha:mo Ride is that the people can
borrow the electric vehicle whenever needed from one place and leave it at the other station. The aim is to control
traffic flow and simultaneously promote eco-driving using TDMS and ITS. The program also targets introduction of
next-generation vehicles including EVs, PHVs and FCVs.

3.4.2.5 Support for Green-behaviour in the entire living environment


An EDMS (Energy Data Management System) has been installed in order to optimize the control of the energy
supply and demand balance throughout the entire community. The EDMS portal site enables consumers to see
a variety of data, including the energy consumption for the entire community, the amount of electricity being
generated by the solar power generators, and the amount of CO2 being emitted. It also helps in implementation of
DR program.

3.5 Keihanna Eco City Project


Keihanna city is located in a hilly region of three prefectures of Kyoto, Osaka and Nara and is also known as Kansai
science city. The city includes to other seven cities and one town namely Kyotanabe, Seika, Kizugawa, Hirakata,
Shijonawate, Katano, Nara and Ikoma in these three prefectures. It was developed recently under a national project
to serve as a centre of culture, learning, and research, a new cultural capital intended to open paths into the future.
The area consists of various research institutes, universities, companies and other institutions. Thus, it has been
identified as one of the cities for testing and verifying the outcomes of research on advanced technologies and new
social systems. Kansai Electric Power Company is responsible for electricity distribution in this city.

3.5.1 Objectives
The Keihanna Eco City Project (funded by METI) is being implemented in 3 areas namely Kyotanabe City, Kizugawa
City and Seika Town in Kyoto. The main feature of the Keihanna pilot is to optimize the use of energy throughout
the entire area and reduce CO2 emissions. The main features of the Keihanna experimental project are to optimize
the use of energy throughout the entire area and reduce CO2 emissions. This includes the following:
ƒƒ Large scale installation of smart meters among domestic and commercial consumers
ƒƒ Installation of HEMS for general households, BEMS, and CEMS for energy management
ƒƒ Demonstration of Vehicle to building technology for transportation

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3.5.2 Initiatives and target planned under the pilot


The Keihanna Eco City Project is a five-year (ending in 2014) program being undertaken with a consortium
technology companies. Under this project, various initiatives such as large-scale implementation of demand
response programme, critical peak pricing, demonstration of EV for demand management, community energy
management systems, etc., have been implemented (Refer Figure 10).

Figure 10 Various initiatives taken under the Keihanna Eco City Project

Community energy Energy management Large scale demand


management system response program and CPP Electric vehicles

CEMS for energy management, Installation of HEMS, BMES Control group trial Demonstration of vehicle
demand and generation Link with CMES and experiment with 700 charging stations tool
forecasting and scheduling automatically controls households for demand management
Linked to individual energy power consumption Incentives for reducing About 100 Evs for
management system Energy management through power consumption participation in demand
mobile phone applications during peak hours response program
also implemented for 14
households

Notes: HEMS: Household Energy Management System BEMS: Building Energy Management System EV: Electric Vehicle

Various functionalities and operational experiments being conducted under the Keihanna Eco City Project are
explained in the following sections.
Demand Response experiment: Under the pilot project, 681 households out of approximately 40,000
households in Kyotanabe City, Kizugawa City and Seika Town agreed to participate in the demonstration project.
The participating households were divided into different groups in order to assess the scope of implementing
demand response programme. In the first group, smart meters were installed in all the households with a power
consumption tablet. The tablet is used to show the hourly power consumption of the household. In the second
group, the day before demand response program is being implemented under which requests are made for energy
conservation the following day in a notification sent to their tablet terminals (without financial incentive). Whereas
in the third group, demand response request are made a day before with variable level of virtual incentives as
explained below.
ƒƒ The experiment was conducted for a period of three months from July to September (December to February in
the winter period,) and 7,000 points were awarded to all households in third group
ƒƒ For those households which use electricity during the demand response period (weekdays from 13:00 to
16:00), 20 points are deducted for each kWh of electricity consumed
ƒƒ Further, demand response requests corresponding to deduction of 40, 60, and 80 points per kWh were also
issued to households for 15 days during (5 days for each) during the experiment period.
ƒƒ The relevant households were notified of this increase via the tablet terminals and e-mail at around 4pm on
the previous day
ƒƒ The households can redeem the remaining points after the experiment at a rate of YEN 1 per point

As per the results of this experiment available at Japan Smart Community Portal, the total power consumption on
weekdays during the demand response period for first group was about 0.25kWh per 30 minutes. The amount of
electricity consumed by second group which also received notifications was 3.6% less as compared to the first
group for the same time period. However the average consumption of 3rd group was 4.6% less when only 20 points
were deducted and 9.3% less for 40 points; 11.7% for 60 points, and 14.1% less when it was 80 points10.

10 http://jscp.nepc.or.jp/article/jscpen/20130221/341058/index2.shtml, last accessed on 2nd August, 2013

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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 21

Demonstration experiment for V2X technology: Under the Kiehanna pilot project, batteries mounted onto
electric vehicles are being used for energy storage. The verification experiment for utilizing these mobile storage
batteries is represented by V2X (Vehicle to X). Similar verification experiments including V2G (Vehicle to Grid) and
V2H (Vehicle to Home) are also being carried out.
In one of such experiment carried out in production building and employee parking lot in Mitsubishi Motors,
solar power panels with an output capacity of 20 kW have been installed on the roof and parking space for five EV
vehicles is available beneath the roof. The electricity generated by the solar power panels is used to recharge the
EVs and reused storage batteries during the morning and evening and during the daytime (peak demand period)
power generated by the solar power panels and power discharged from the EVs and reused storage batteries is
used to reduce the electricity consumption from grid. An EV Integration System (EIS) is also developed which
controls the recharging and discharging of batteries while taking into consideration the power demand of the main
production facility, the amount of electricity generated by the solar power panels and the level of charge in the
reused storage batteries, etc.
Electric vehicles for demand management: In an experiment conducted for 60 EV (83% of which are owned
by individuals and 17% by companies) an EV Management Center is created for monitoring the battery recharge
status and location information for each of sixty EVs with the use of an Intelligent Transportation System (ITS). The
system consists of communication equipment mounted onto the EVs, recharging facilities (Recharge Network)
and the EV Management Center. The system is used to communicate demand response request to the consumers
(through CEMS) to encourage them to suppress recharging activities, alter recharging times, suppress usage during
peak periods, or promote recharging. The demand response request are advised to EV users at around 6 pm on
the evening prior to implementation via e-mail. These requests contain information on the required action and the
level of urgency, as well as the number of points that will be awarded to EV users if they conform to the required
actions. These points represent an incentive for EV users.
Energy management through CEMS: CEMS installed under the pilot is connected to other energy management
systems like HEMS, BEMS and EV management system to discover how far electrical power demand can be
controlled in accordance with pre-planned parameters just with the use of DR requests. This system can help in
improving the operation rates of the electricity supply system and reduction of electricity power costs in the long-
term. CEMS forecast the peak demand, and also issues instructions to reduce power demand to all of the energy
management systems. Each energy management system revises the electricity usage plan based on the DR request
and submits the same to CEMS. This information is used for power planning for the next day.

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22 Joint Research on Accelerated Deployment of Smart Grid Technologies in India

4. Conclusion
The major challenge faced by the Indian electricity distribution sector includes increasing peak deficit, high AT&C
losses, RE integration improving reliability and quality of power supply, DSM and aging distribution infrastructure,
among others. Recognizing this, a number of initiatives have been taken both at central and state levels for
improvements in the power distribution sector — RAPDRP and Smart Grid pilot projects are few of them. The
major objectives of the Indian Smart Grid pilot projects are reduction in frequency and duration of outages, peak
load management, and introduction of automated metering infrastructure. The three pilot projects proposed in
Rajasthan, Haryana, and Assam, covered under this study, envisage implementation of AMI, OMS, RE integration,
and peak load management.
In the Japanese power sector, current priorities include a shift from fossil fuels to RE and creating a low-carbon
society. METI has funded four Smart Community pilot projects for demonstration of Smart Grid technologies in
different cities. These four pilot projects aim at demonstration for deployment of next-generation energy and social
systems for building low-carbon societies. Under these pilot projects, various initiatives have been undertaken
such as the introduction of a demand–response programme, critical peak pricing, proactive consumer participation
in DSM through appropriate pricing, energy management through application of Smart Grid technologies such as
individual- and community-based energy management system, solar PV system, individual- and community-based
energy storage system (including batteries and fuel cells), EVs, etc. Individual energy management systems such as
HEMS and BEMS are installed to enable the consumers for optimal usage of electricity and to respond to pricing
signals. Table 2 shows the comparative picture of functionalities and technologies planned to be implemented
under Smart Grid pilots in India and Japan.

Table 2 Comparative analysis of smart grid technologies and functionalities

S. Functionalities/ Planned under Indian pilots Implemented under Japanese pilot projects
No. technologies (Rajasthan, Haryana, and Assam) (Kitakyushu, Yokohama, Toyota, and Keihanna)

1 Energy AMI for all consumers; display units ƒƒ HEMS, BEMS, and FEMS for selected
conservation for LT industries consumers (which are participating in the
demonstration projects).
ƒƒ CEMS and EDMS for energy management and
planning at centralized level

2 Peak load DR programme planned to study the ƒƒ Provision of individual energy management
management consumer behaviour system to enable the consumers to respond to
variable pricing signals
ƒƒ Installation of solar PV and battery storage
system for using the local energy during the
peak periods.
ƒƒ DR with EV in Keihanna

3 Reduction in OMS planned to be installed ƒƒ Reliable and distribution automation


frequency and systems for remote supervision and
duration of
automatic control of distribution
outages
equipment are in widespread use

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Joint Research on Accelerated Deployment of Smart Grid Technologies in India 23

S. Functionalities/ Planned under Indian pilots Implemented under Japanese pilot projects
No. technologies (Rajasthan, Haryana, and Assam) (Kitakyushu, Yokohama, Toyota, and Keihanna)

4 Solar roof top Solar PV based generating system Roof to systems installed at households,
system will be installed in selected locations, commercial buildings with battery storage. Also
mainly government buildings used for DR programme.

5 Use of Electric Not planned under the pilot projects Charging stations have been installed at various
Vehicles locations for quick charging of batteries and are
also being used as demand management tool,
especially in Keihanna and Toyota cities.

6 Hydrogen as Not planned under any of the three In Kitakyushu hydrogen produced as by product
fuel for meeting pilot projects in the steel factory is being supplied to the
the energy community through pipelines.
requirements

Based on the analysis presented, it can be observed that there are many functionalities and technologies which
have not been envisaged to be implemented in the Smart Grid pilot projects proposed in India. These include
introduction of energy management system to enable consumers to respond to variable pricing signals, CMES
for large-scale energy management, energy storage technologies, electric vehicles, etc. Further, there is also a
difference in application of some of these technologies; e.g., solar PV based generating system implemented in
Japanese pilot projects are being used for using the locally generated energy during peak periods through provision
of storage batteries. Similarly, experiments related to assessing consumer behaviour with respect to variable pricing
on the basis of control group trial experiment would help in determining the appropriate tariff structure.

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24 Joint Research on Accelerated Deployment of Smart Grid Technologies in India

5. Way Forward
It can be concluded from the above analysis that although priorities in India are presently limited to improvement
in reliability of power supply, reduction in AT&C losses, RE integration etc., the technologies once getting
implemented are likely to soon pave way for much advanced applications. It is therefore desirable that a long term
view should be taken for application of smart grid technologies.
Smart grid technologies such as AMI, OMS, energy management systems, etc. are already deployed in the Smart
Community projects in Japan. Distribution automation systems for remote supervision and automatic control of
distribution equipment are in widespread use. Further, Japanese distribution system is considered among the most
reliable distribution systems in the world. Japanese experience in this regard would be useful for Indian smart grid
projects.
For peak load management, implementation of smart grid technologies like AMI and energy management systems
are prerequisite. Various experiments related to Critical Peak Pricing, and Demand Response programs are being
carried out in the four smart community pilot projects implemented in Japan. In Indian context, these programs
need to be designed in an efficient way depending on the consumer mix, socio-economic status, consumption
profile of the utility and consumers, etc. The Japanese experience in this regard coupled with overall energy
management practices is likely to prove extremely useful. A programmatic study of consumer perception, local
needs and consumer preferences would be required prior to initiating such a project. Therefore, a pilot project for
demonstration of these technologies and functionalities can be implemented in selected feeders /sub-stations in any
of the three sites studied under this project (Jaipur, Panipat and Guwahati).
The selection of feeders/sub-stations should depend on the consumer mix, condition of existing distribution
infrastructure, implementation of IT systems and applications under R-APDRP, etc. Hence, a pre-feasibility study
can be conducted for identification of the feeders/sub-stations within/outside the area covered under the above
three pilot projects. These feeders can act as demonstration sites of Japanese smart community technologies and
functionalities. The study can cover the assessment of existing distribution infrastructure, baseline survey including
assessment of AT&C losses, duration and frequency of outages, socio-economic and load profiling of consumers,
their willingness to participate in the programs, indicative assessment of costs and benefits, etc. Based on the
results of pre-feasibility study and discussions with the distribution utility, site for implementation of demonstration
project can be identified. Subsequently, technology companies and distribution utility of pilot area should conduct
a detailed feasibility study to identify the technologies and functionalities, scale of implementation, costs and
benefits, project timeline, etc. A pro-active role on part of State Electricity Regulatory Commission (SERCs) will also
be necessary for successful implementation of the projects. The SERCs need to allow differential time based pricing
for experimental purposes in the selected demonstration sites.
The actual implementation of the project would involve demonstration of identified technology and functionalities
in the selected feeders/sub-stations and detailed assessment of cost and benefits post implementation of the
project. The learning’s and experience of this project will also be useful for the distribution utilities and regulatory
commissions of other states. The results of this demonstration project would provide a background for large scale
deployment of smart grid technologies in India.

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