India and the European Union come together to share their own knowledge to create a common new body of knowledge – the ‘Smart Grid Replication Handbook for India’. The Florence School could not be more grateful to the EU-India Clean Energy & Climate Partnership for its vision and leadership. Together we are more than 1,800 million humans looking at a better future driven by new technologies promoting energy access and climate sustainability. Two centuries of steam, mechanical or electrical engineering are ending with the supremacy of information & communication technologies, electronics and the coming “Internet of Things”. Such powerful tools should facilitate giving an access to modern energy to all, and building a long-term horizon of carbon neutrality. Smart grids have gained maturity in many domains, and several footholds in others, as with “Smart Cities”, “Electric Mobility”, “Mini Grids & Micro Grids”, “Peer-to-Peer Exchange” or “Demand Response”. India, with its world-famous cohorts of engineers and top managers, has much to teach us, the Europeans, about the many futures that can come. EU, with its advanced energy regulatory frame and demanding climate policy, has many ideas and tools to be tested and challenged overseas. The remarkable quality and usefulness of the forty-four pages of this Handbook Chapter 4 (“CBA & SRA Analysis”) testify beyond any dream.
India has embarked on an ambitious sustainable development pathway by applying a multi-pronged approach spanning several sectors from developing smart cities to enabling electric vehicles. In the power sector, it is necessary to transform and prepare the grid at both the transmission and distribution levels to ensure the success of India’s sustainability journey. Smart grids are next-generation electrical power systems and are typified by increased use of communication and information technology in the generation, delivery and consumption of electrical energy. A group of technological innovations are combined to improve grid efficiency, facilitate automation, reduce cost and improve the quality of the grid. These solutions enable integration and optimisation of distributed and renewable generation, and promote interaction between consumers and utilities that will provide benefits for both. The adoption of smart grids will help transform conventional grids making them transparent, intelligent and smart with bi-directional energy flow, and improve overall grid stability and reliability. Smart grids will also enable
better utilisation of assets and help reduce capital expenditure for network companies. Furthermore, smart grids can enable greater participation by consumers. They will also enable optimal utilisation of assets and help reduce capex investments in infrastructure by DSOs and give them a higher return on investments.
What are smart grids?
WHAT ARE SMART GRIDS?
A smart grid is an electricity grid with communication, automation and IT systems that enable real time monitoring and control of bi-directional power flows and information flows from the point of generation to the point The drivers of smart grids for the different stakeholders are: of consumption at the level of appliances. Smart grid technologies provide an interactive grid which gives consumers the option to
be prosumers and provides them with the opportunity to both consume and sell electricity according to their requirements and the price of the electricity available.
Smart grid use case selection
SMART GRID USE CASE SELECTION
To select appropriate use cases to study in this research, it is necessary to quantify the value of each use case under consideration. This consists of a four-stage process that is described in this section. The section also includes insights from the second platform workshop.
CBA and SRA Analysis
CBA AND SRA ANALYSIS
Assessment of investment activities is a pillar in strategic management at any level. When investment activities involve the deployment of projects, project evaluation aims to determine the effects caused to foster the best allocation of scarce resources (e.g. capital, labour, land, water). In project evaluation, laws of economics are pivotal to determine the profitability of an initiative -. However, projects of social interest have to be assessed considering a broader range of impacts -. Assessment can be performed before project deployment to forecast the effects expected (ex-ante), during project deployment to check the performance level to identify corrective measures (in medias res) or after the time horizon of the project to verify the actual impacts generated.
The main objective of a scalability and replicability analysis (SRA) is to determine if a specific use case, system or service can be carried out in different places and/or under different technical and non technical conditions. Three main concepts must be considered in an SRA: scalability, replicability and boundary conditions.
The first stage in the JRC CBA methodology involves characterising the project. The project’s objective, context and the main technology involved have to be identified and comprehensively described. Analysis of the context is fundamental to define the baseline and relevant economic parameters Furthermore, a deep analysis of the project’s features leads to identification of the functionality enabled. The JRC guidelines provide recommendations that help the analyst map project assets onto the functionalities enabled , . In the second main stage, the potential benefits resulting from deploying the project are identified through a mapping activity that starts with the functionalities enabled. The baseline established allows definition of the reference level at which to quantify the benefits. The JRC CBA guidelines also provide recommendations to quantify and monetise all the positive and negative impacts and understand the benefit allocation The last stage in the JRC CBA methodology concerns calculating the CBA indicators (e.g. NVP) by comparing the discounted costs and the benefits. Sensitivity analysis allows understanding of the robustness of the CBA outcome regarding changes in the values of the variables that define the baseline scenario and the monetisation of costs and benefits.
Implementation of innovative smart grid projects will enable India to reach its ambitious sustainability goals. However, a multitude of challenges in rolling out these novel solutions on a nationwide scale continue to persist. The purpose of this research was to develop a handbook containing insights and tools that will aid implementation of innovative smart grid projects in India.
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