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FOR issues model Smart Grid regulations, suggests formation of smart grid cell

According to reports, the Centre’s much ambitious smart grid project has got yet another push as the Forum of Regulators (FOR) has formulated draft model regulations for the state electricity regulatory commissions (SERCs). The objectives of these regulations are to enable integration of various smart grid technologies and measures to bring about economy, efficiency improvement in generation, transmission and distribution licensee operations, manage the transmission and distribution networks effectively, enhance network security, integrate renewable and clean energy into the grid and micro grids.

Every transmission licensee, distribution licensee will have to constitute Smart Grid Cell within three months of notification of these regulations and the cell have the authority and necessary resources for execution of regulations. Besides, transmission licensee, distribution licensee will undertake baseline study to identify the targets and final outcomes for Smart Grid project programmes and will build the necessary database.

Further, the transmission licensee, distribution licensee will submit an integrated Multi-Year Smart Grid Plan for their respective Licence areas along-with Multi-Year Tariff Petition or annual revenue requirement (ARR) Petition, for the approval SERC. All Smart Grid projects requiring investments of more than Rs 10 crore will be submitted to the SERC for prior approval of investments:

PowerGrid Corporation’s former CMD RP Singh told Business Standard,” Smart Grid as a concept appears very attractive, but it is being seen and planned in a narrow perspective. For example, green corridor being talked about will pose more problem than solution.We will end up in similar situation as we landed with gas projects. For a country which is perpetually power deficit,we need smart solution at the moment,which is in the form of quickly harvesting non-conventional energy resources in a distributed manner rather than end up in a situation like UMPP and 50,000 MW hydro initiative and suffer both commercially and technically.”

ABB India’s president, (power systems) N Venu said the dedicated smart grid cell will bring the desired focus on to conceptualize, plan and implement programs with the desired ease and speed.

”The key to the success would be the constitution of the smart grid cell and the time taken for approvals and then implementation. The 14 identified list of indicative components are areas which need due focus and attention. Microgrids and grid integration of renewables are two areas which will be key to fulfilling government’s ambition of renewable target and providing 24X7 electricity for all. At the grid level, planning and operating power system with high levels of renewable energy sources could demand smart grid regulations such as energy management system with applications including estimation, prediction, contingency analysis, automatic generation control and economic dispatch systems,” notes Venu.

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