Project on Demand Side Management (DSM) to meet peak demand through application of Smart Grid Technology in BSES Rajdhani Power Ltd

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Assignment:
Project on Demand Side Management (DSM) to meet peak demand
through application of Smart Grid Technology in BSES Rajdhani Power Ltd
due to congestion in Transmission network.
Submitted by
Sub: Power Markets & Smart Grids (PMSG) Kumar Mukund (P131020)
Term: 5th
Batch: PGPME15

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Table of Content
Page no.
1. Introduction ……………………………………………………………. 3
2. Problem Definition……………………………………………………. 3
3. SMART Problem statement…………………………………………. 3
4. Assumptions……………………………………………………………. 4
5. Key Benefits for BRPL………………………………………………… 4
6. Proposed DSM Programs…………………………………………….. 4
7. Conclusion……………………………………………………………….. 7
Appendix…………………………………………………………………. 8
References……………………………………………………………….. 8
BRPL Statisticss (according to CEA data in 2011)1
Total Consumers : Around 16.51 Lacs
Peak Demand : 1920 MW
Annual Energy Consumption : 10461 MU
Geographical Area : 750 Sq. Km
Consumer Density : 2200 consumers/Sq. Km
No. of divisions : 19
1
http://www.cea.nic.in/reports/articles/god/bestpractices/bses_rajdhani.pdf

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1. Introduction
BSES Rajdhani Power Limited (BRPL) came into existence on 1 July, 2002, when the Delhi
Government decided to privatize the business of electricity distribution in the national
capital. BRPL distribute reliable and quality power to more than1.6 millions consumers
spread across 750 sq km area. The unparalleled achievements of the electricity
distribution sector in Delhi stand out as the most “successful experiment and replicable
model” of Public-Private-Partnership (PPP). This view has been upheld repeatedly by
ICRA and CRISIL for the Ministry of Power, Govt. of India. Some of the achievements are:
 The company has reduced AT & C losses from a high of 62 % in July 2002 to less
than 17 % as on 31 March 2011
 Successfully met the maximum power demand of 1920 MW during the summer of
2010-2011 – a 57% increase over the maximum power demand of 1259 MW in 2002-
2003. Being biggest of the three discoms, BRPL has a 43% share in Delhi's
electricity distribution pie.
 This massive reduction in AT & C losses by BRPL since July 2002, along with capex,
loan repayment and payment of E Tax to the MCD has saved the Delhi government
Rs 8540 crore.
2. Problem Definition:
BRPL is currently facing the problem of demand-supply mismatch due to congestion in
transmission system of Delhi Transco. Also it is losing money due to wide gap in demand
and supply
3. SMART Problem Statement:
How to implement the DSM program using Smart Grid Technology so as to reduce the
expected peak demand in 2015 from 2520 MW to 2300 MW and average purchase tariff
from Rs.5/unit to Rs 4.8/unit.

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4. Assumptions:
The peak demand of 2520 MW in 2015 is calculated on the basis of 7% compounded
annual growth rate of the peak demand in 2011 (1920 MW). Further it is assumed that
the Delhi Transco’s has the capacity to meet demand up to 2300 MW.
5. Key Benefits for BRPL:
 Saving around Rs. 2742 millions (see appendix for calculation).
 No load shedding required.
 Better asset utilization.
 Consumer satisfaction.
 Increased brand image and value.
 Environmental impact- reduced CO2 emission.
 Various social and regulatory benefits.
6. Proposed DSM Programs:
To ensure stability on the electricity grid, electricity supply and demand must remain in
balance in real time. Traditionally utilities have called upon peaking power plants to
increase power generation to meet rising demand. Demand-side management (DSM),
which includes energy efficiency and demand response (DR), works from the other side
of the equation – instead of adding more generation to the system, it pays energy users
to reduce consumption. For our proposal we are focusing more on demand response
programs. The DSM programs mentioned below will help BRPL to achieve its goal:
6.1. Integration of Consumers to SCADA System: Tagging of all consumers to SCADA
system will help the utility to monitor power flow in the network. This will also helps to
generate relevant data to launch various DSM programs.

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6.2. SMART Grid Technologies Implementation: Advanced Metering Infrastructure (AMI)
systems, now deployed as part of growing Smart Grid initiatives across the world,
provide significant foundational platforms for engaging consumer response to
extraordinary Demand Response events. By supplementing this technology with Internet
usage, utilities can enable energy consumers to actively manage system capacity.
AMI implementations are one avenue to engage the consumer; many utilities ensure
that the system they deploy supports Demand Response functionality through
connectivity into the home via the Smart Meter. Since the middle of the last decade, AMI
vendors have been preparing their systems to support this functionality through industry
initiatives such as the ZigBee® Alliance. The Alliance promotes the integration of low-
power wireless sensor and control network technology into the meter to act as a
communicating gateway to devices in the home. These devices are used to both inform
the consumer of ongoing energy usage and to control the significant discretionary loads
available in the home. These Smart Meters and two-way AMI networks then enable the
measurement and verification capabilities that allow the utility to verify which controlling
devices participated in a Demand Response event and how much load was removed.
Figure mentioned below depicts the classical architecture for connecting devices in the
home via the Smart Meter.
Home Area Network (HAN) can include direct load control devices connected directly to
large appliances, programmable communicating thermostats (PCT) to manage the
heating and cooling system, and in-home displays (IHD) to provide near real-time energy

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usage information. These in-home displays can also inform the consumer of critical
electricity pricing events that are part of a utility’s Demand Response program.
6.3. Balancing Load on Transformers: This will increase the power supplying capacity of the
network and also helps to reduce the losses, which in turn will help to reduce the
demand supply gap.
6.4. PF Regulation and Voltage Regulation: Maintaining optimum power factor (pf) by
installing capacitor bank at strategical locations can help to increase the power supplying
capacity of the network, thus will reduce the demand supply gap.
6.5. Encourage Consumer to become Prosumer: Encourage the consumer to install solar
roof top by encouraging net metering. This will help to increase the capacity of
Distributed Generation.
6.6. Set up Solar plants with Storage System: BRPL has huge potential to install solar
plants at various locations under its jurisdiction like, transformer/ material stores, office
buildings, substations etc. Integration of this installed capacity with storage system will
help them to meet demand at peak hours.
6.7. Time of Day (TOD) Tariff of each Category of Consumers on Real Time basis: This
will incentivize the consumers to participate in DR programs.
6.8. Consumer Awareness Programs: For the successful implementation of any program,
consumers’ participation is vital. Awareness, incentives, penalties and legislation are four
main tools to involve consumer.
6.9. Tie up with utilities like, Jal Board, Municipalities’ and big industrial consumer to
participate in DR program.
6.10. Vendor Based DR Program: The whole BRPL area should be divided into DR zones and
a vendor/ third party should be appointed as DR mediator between utility and consumer.
The vendor/third party would be responsible to implement the DR program in his/her
area.

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6.11. Awareness and Training for the Staff: Involvement of the staff is prerequisite for the
success of the DSM project.
6.12. Encourage Bachat Lamp Yojana (BLY) scheme.
6.13. Use better forecasting technique.
6.14. Install automatic street lighting switch.
6.15. Encourage usage of star rated equipments with special focus on ACs.
6.16. Use optimum feeder length.
7. Conclusion:
The concept of DSM is not new and the key technologies for its implementation have
already been developed. However, the implementation of DSM has been slow because of
the challenges associated with it. The challenges could listed as given below:
 Lack of Information, Communication and Technology infrastructure.
 Improper market structure and lack if incentives.
 Lack of awareness program about DSM and its benefits.
 Economy associated with DSM based solutions in a long run
 DSM based approach increases the complexity of system when compared with
traditional approach.
 DSM based approach are often less competitive.
 Rehabilitation of distribution system network is quite tedious.
Considering the various benefits and challenges of DSM, its success lies in proper
prioritization and implementation.

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Appendix:
Saving for BRPL:
Total consumption in 2011= 10461 MU
Calculated consumption in 2015 at 7% compounded annual growth rate=
10461*((1.07)^4)= 13712.24 MU
Total Saving= Rs. (5.0-4.8)* 13712.24 million= Rs. 2742.45 million
References:
http://www.bsesdelhi.com/docs/pdf/BRPL_Citizen_s_Charter_English_Final.pdf
http://www.cea.nic.in/reports/articles/god/bestpractices/bses_rajdhani.pdf
http://www.enernoc.com/our-resources/term-pages/what-is-demand-side-management
http://bv.com/docs/articles/demand-response-technology-for-the-smart-grid
http://kalyan07.wordpress.com/2014/04/12/introduction-to-demand-side-management-
benefits-challenges-and-barriers/