Vol 1, Jul - Sep, 2017

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Report Release on Pathways to Integrate 175 Gigawatts of Renewable Energy into India’s Electricity Grid

USAID’s Greening the Grid (GTG) is a five year program implemented in partnership with India’s Ministry of Power (MOP) under the U.S.-India Partnership to Advance Clean Energy Deployment (PACE-D). This program aims to support the Government of India’s (GOI) efforts to manage large-scale integration of RE into the grid. The program combines three components which interact with each other. These include:

1. Power system planning reforms and targeted analysis for large RE parks and RE integration pilots implemented by U.S. Department of Energy (DOE) laboratories

2. Renewable Integration and Sustainable Energy (RISE) initiative to implement innovation pilots, aimed at testing and evaluating building blocks to improve the integration of RE

3. Peer-to-Peer exchanges between U.S.-India system operators (System Operator Partnership) and regulators (India Regulatory

partnership)

USAID’s Greening the Grid (GTG) is a five year program implemented in partnership with India’s Ministry of Power (MOP) under the U.S.-India Partnership to Advance Clean Energy Deployment (PACE-D). This program aims to support the Government of India’s (GOI) efforts to manage large-scale integration of RE into the grid. The program combines three components which interact with each other. These include:

1. Power system planning reforms and targeted analysis for large RE parks and RE integration pilots implemented by U.S. Department of Energy (DOE) laboratories

2. Renewable Integration and Sustainable Energy (RISE) initiative to implement innovation pilots, aimed at testing and evaluating building blocks to improve the integration of RE

3. Peer-to-Peer exchanges between U.S.-India system operators (System Operator Partnership) and regulators (India Regulatory

About GTG ProgramAbout GTG Program

Shri Piyush Goyal, Honorable Minister of State (IC) for Power, Coal, New and Renewable Energy, and Mines, Government of India, released the national study on “Pathways to Integrate 175 Gigawatts of Renewable Energy into India’s Electric Grid” in New Delhi on June 29th, 2017. The report jointly prepared by the National Renewable Energy Laboratory (NREL), Power System Operation Corporation (POSOCO) and Lawrence Berkeley National Laboratory (LBNL) is conducted over a year modeling exercise. It evaluates the operation of India’s power grid in 2022 with 175 GW of renewable energy (RE) to identify potential cost and operational concerns and actions that will be needed to efficiently integrate the targeted levels of wind and solar generation. This study has been conducted under the Greening the Grid program, an initiative co-led by India’s Ministry of Power and the U.S. Agency for International Development (USAID).

The report resolves many questions about how India’s electricity grid can manage the variability and uncertainty of adding large amounts of renewable energy into the grid. The results demonstrate that power system balancing with 100 GW solar and 60 GW wind is achievable at 15-minute operational timescales with minimal reduction in renewable energy output. India’s current coal-dominated power system has the inherent flexibility to accommodate the variability associated with the targeted renewable energy capacities.

Some of the key operational impacts that came out of the report were: (1) large-scale benefits of fuel savings and reduced emissions due to increased renewable energy production; (2) fast-ramping infrastructure (such as natural gas turbines) is not necessary to maintain grid balance; and (3) in post-175 GW clean energy scenario, coal plants operating at only half their capacity will pave the way for a new tariff structure that moves away from focusing on energy delivery and instead compensates plants for performance that achieves flexibility goals.

The study also evaluates the value of strategies to better integrate renewable energy and demonstrates the importance of policy and market planning The results were based on a number of key assumptions including perfect transmission planning existing within each state but not necessarily on corridors between states; compliance of all coal plants with the Central Electricity Regulatory Commission (CERC) regulation that coal plants be able to operate at 55 percent of rated capacity; and a perfect load forecast. Input data, assumptions and study results were validated extensively by more than 150 technical experts from central agencies including the Central Electricity Authority (CEA), Power Grid Corporation of India Ltd. (PGCIL), and National Thermal Power Corporation Limited (NTPC); state institutions including grid operators, power system planners, renewable energy nodal agencies and distribution utilities; and the private sector, including renewable energy developers, thermal plant operators, utilities, research institutions, market operators and industry representatives. To find more information on the report, please visit https://www.nrel.gov/analysis/india-renewable-integration-study.html

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Quotes from the Report Release

Press and Media Coverage

It is really a great occasion in many respects. The fear that we were having for the large integration of renewable sources is no more there. I congratulate USAID and POSOCO for steering this study and giving us the comfort that there is no cause to worry.

- Shri R.K. Verma, Chairperson, Central Electricity Authority

In 2014, when it was announced, we in the division of operation and management, were very anxious and concerned whether we will be able to make this 175 GW target a reality. This report answers many of our questions. The study has actually given us a lot of confidence. This is just the beginning. We are geared up to make the report’s recommendations a reality. I am sure that the dream that you Mr Minister have seen for 2022 will become a reality

- Ms Jyoti Arora, Joint Secretary, Ministry of Power

Greening the Grid initiative offers a toolkit for information and guidance materials to support emerging economies like India in defining and implementing grid integration roadmaps for renewable energy. It also sets a platform for deliberations on strategies for Indo-U.S. co-operation towards energy security and strengthening energy linkages between the two countries. I am sure the learning that has come out of this will be applicable to a lot of emerging economies who are going on a path of bringing in more renewables into the system

- Shri P.K. Pujari, Secretary of Power, Ministry of Power

USAID has a long-standing collaboration with the Government of India in the area of energy. Energy is a key determinant of growth and India needs sustainable energy sources to continue to grow at 7-8 percent annually. Introducing renewable energy solutions into established energy systems often requires changes to well-established policy, institutions, and market structures. This study will prove to be helpful in scaling up renewable energy in India effectively and sustainably

- Michael Satin, Director of USAID/India

It is time for the people of India to get ready and embrace the change with a ‘New Mindset’ of a ‘New Grid’ for a ‘New India’, which is ready to integrate large amount of renewable energy. It is appropriate time following on Honorable Prime Minister’s meeting with the U.S. President under a robust and focused U.S.-India Energy Partnership. The ministry is extremely appreciative of the continued engagement and support from USAID and congratulates all the stakeholders including POSOCO, NREL, LBNL on the achievement of this outcome. Combined and collaborative efforts such as these are labour and data intensive and detailed and often go unsung but are critical to creating the backbone for a reliable grid

--Shri Piyush Goyal, Honorable Minister of State (IC) for Power, Coal, New and Renewable Energy, and Mines, India .

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1) Battery Energy Storage System (BESS): To be implemented in collaboration with the Central Transmission Utility, the facility will test the techno-economic effectiveness of grid connected BESS in providing balancing energy services, other ancillary services, deferring network upgrades, capacity firming of Variable Renewable Energy (VRE) generators, peak shaving, etc. This pilot will also contribute to interconnection standards for grid connecting BESS and for estimating the systemic value of storage in the Indian power system, necessary to devise policies and regulations supporting deployment of BESS.

Stakeholders: PGCIL, POSOCO and Puducherry Electricity Department (PED).

2) Dynamic Compensation for Large Solar Park Integration: To be undertaken in partnership with a state transmission utility, the pilot shall involve detailed system studies to evaluate integration of a large solar park and to identify specific dynamic compensation measures including design enhancements to inverters and deployment of grid level compensation such as STATCOMs. The outcome of the pilot shall be to provide insights on development of guidelines and enhancements to standards for dynamic compensation and inverter specifications with reference to reactive power control and power quality aspects.

Stakeholders: Rajasthan Vidyut Prasaran Nigam Limited (RVPNL), Rajasthan State Load Dispatch Centre (SLDC), Rajasthan Renewable Energy Corporation Limited (RRECL), Solar Developers, and PGCIL.

3) Flexible Power Generation: Integration

studies under GTG have revealed the criticality of thermal based units in India for providing balancing support through flexing. This pilot shall be undertaken with a central sector power generation utility and a state sector power generation utility to identify and implement strategies for achieving high ramp rates and low technical minimums in order to identify scalable measures for adoption across the coal fleets in the country.

Stakeholders: Gujarat State Energy Corporation Limited (GSECL), NTPC and CERC.

4) Automatic Generation Control (AGC): A pilot on evaluating AGC in providing secondary response in Southern India would provide insights for the planned adoption of AGC for ancillary market operation. The pilot shall cover conventional and renewable power plants and will identify both technical requirements as well as compensation mechanisms for the generation units which participate in AGC secondary reserve market.

Stakeholders: Karnataka Power Corporation Limited (KPCL), Karnataka State Load Despatch Center (SLDC), Southern Regional Load Despatch Centre (SRLDC), Wind and Solar Developers

5) Real-time monitoring of rooftop solar Photo Voltaic (PV) and net-load forecasting for distribution companies (DISCOMs): The pilot shall test efficacy of smart meters for real-time monitoring of distributed rooftop solar PV generation and assist a DISCOM in design and implementation of improved tools for net-load forecasting. The outcome of this pilot shall provide guidelines on metering, communication and forecasting of roof top solar PV

and net-load forecasting.

Stakeholders: A DISCOM (under discussions), CEA and Forum of Regulators (FOR)

6) Regional platform for reserves sharing: This pilot shall test and implement a platform and mechanisms for day-ahead and intra-day sharing of reserves between utilities in a region as a test case for adoption of regulations enabling operation of larger balancing areas to enable more effective RE integration. The outcome of the pilot shall provide the framework guidelines for regional coordination and adoption of commercial mechanisms for sharing of reserves.

Stakeholders: State level utilities and Load Despatch Centers in Southern Region, Southern Regional Power Committee (SRPC) and FOR

In addition to the above mentioned six pilots, GTG has already initiated a grid integration pilot which is as follows:

7) Automated Demand Side Management (ADSM) Pilot: The focus of the first pilot under GTG is to test a new resource to balance the power grid as the proportion of RE increases, and to address the power quality issues related to the integration of rooftop solar systems on the distribution network. This public-private partnership between USAID/India, Innovari (a U.S. ADSM developer) and the Bangalore Electricity Supply Company Limited (BESCOM) will support the deployment of 5 megawatt (MW) ADSM pilot.

Stakeholders: BESCOM, Karnataka Power Transmission Corporation Limited (KPTCL), SRLDC, Innovari

Grid Integration PilotsCentral to GTG, is the design, implementation, and scaling of a series of prioritized innovation pilots that support the integration of RE into the grid. As part of the GTG-RISE Initiative, successful deployment and scale-up of these pilot solutions will offer new market opportunities for innovative technologies, solutions and services. The pilots will be supported by other GTG components such as integration studies and analytical support by NREL and capacity building of key stakeholders through partnerships with United States Energy Association (USEA) and National Association of Regulatory Utility Commissioners (NARUC). In consultation with key GOI stakeholders, RISE has identified six grid integration pilots. Each of these pilots, tests the validity of a critical approach to reduce barriers to integrating RE into the power grid at scale. These pilots shall be designed and implemented with technical assistance (TA) and grant support under GTG-RISE. These grid integration pilots are as follows:

Battery EnergyStorage System(BESS)

DynamicCompensationfor LargeSolar ParkIntegration

Flexible PowerGeneration

AutomaticGenerationControl (AGC)

Real-timemonitoring ofrooftop solar PV andnet-load forecastingfor DISCOMs

Regionalplatformfor reservessharing

Automated DemandSide Management(ADSM) Pilot *

1

2

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3

6

4

3

3

* This public private partnership is a direct engagement between USAID/ India, Innovari and BESCOM under a separate mechanism under GTG

GTG-RISE Grid Integration Pilots

1 Puducherry

Gujarat, Haryana, Telangana3

Karnataka4

Southern Region6

2 Rajasthan

Bengaluru5

Bengaluru7

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Events U.S. Study Tour (February 20-24, 2017): A senior delegation of policy makers and regulators from the centre and states visited U.S. and met with utilities and system operators in Western U.S. The visit show cased three case studies including (a) Xcel energy operating Public Service Company (PSCo) in Colorado, which has been practicing in a Joint Dispatch Service with utilities in the region, (b) PacifiCorp, which has recently joined an Energy Imbalance Market (EIM) to try and enlarge its balancing footprint to accommodate higher levels of RE penetration and (c) California ISO, which operates a full-fledged market with day-ahead and intra-day scheduling, dispatch and settlements. The delegation included representation from Central Ministry of Power, Central Electricity Regulatory Commission (CERC), Gujarat Electricity Regulatory Commission (GERC), USAID and GTG-RISE. The tour was organized by NARUC.

U.S. Study Tour (May 08-12, 2017): A senior delegation of policy makers and regulators from the centre and states visited U.S. and met with utilities and system operators in Western U.S. The visit show cased three case studies including a) Xcel energy operating Public Service Company in Colorado b) PacifiCorp, which has recently joined an Energy Imbalance Market to try and enlarge its balancing footprint to accommodate higher levels of RE penetration c) California ISO, which operates a full-fledged market with day-ahead and intraday scheduling, dispatch and settlements. d) Portland Gas and Electric, which is preparing itself for participation in the EIM by October 2017. e) Electric Reliability Council of Texas (ERCOT) f) Public Utility Commission, California, and g) Public Utility Commission, Oregano. The Indian delegation included representation from CERC, POSOCO, Karnataka State Load Despatch Centre (SLDC), Tamilnadu SLDC, DEA, USAID and GTG-RISE. The tour was organized by USEA.

AGC Pilot workshop (Aug 3, 2017): USAID’s GTG-RISE Initiative, in partnership with POSOCO, Karnataka Power Transmission Corporation Limited (KPTCL) and Karnataka Power Corporation Limited (KPCL), organized a workshop on “Automatic Generation Control (AGC) Pilot - Southern Region” in Bengaluru on August 3, 2017. More than 50 participants representing key stakeholders from KPCL, KPTCL, Karnataka Electricity Regulatory Commission (KERC) and Southern Regional Load Despatch Centre (SRLDC) participated and deliberated on evaluating AGC in providing secondary response in Southern India. The workshop provided insights for the planned adoption of AGC for ancillary market operation in the country. GTG-RISE pilot to be implemented over 2 years will cover both conventional and renewable power plants and will identify the technical requirements as well as compensation mechanism for the generating units to participate in AGC secondary reserve.

First International Conference on “Large Scale Grid Integration of Renewable Energy” (September 6-8, 2017) at Hotel Vivanta by Taj, Sector 2, Dwarka, New Delhi: The conference, jointly organized by the United State Agency for International Development (USAID) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of the German Federal Government, will bring together Indian stakeholders and international experts to share their learning and discuss interventions in the Indian context to enable integration of large scale renewable energy. Numerous international experts from the United States, Germany and other countries will be sharing their experiences and knowledge. The conference is being organized under the bilateral agreement of USAID and GiZ with Ministry of Power and the Ministry of New and Renewable Energy (MNRE), Government of India.For more information refer http://regridintegrationindia.org/

USAID/India Renewable Integration and Sustainable Energy (RISE) InitiativeDeloitte Consulting India Project503-504, Fifth Floor, DLF Place Mall Office Block, Saket, New Delhi - 110017Tel: +91-11-4045-0737/38www.gtg-india.com

Bhoopinder Singh BaliEmail: bbali@gtg-india.com

EDITORIAL TEAM

ADDRESS

CONTACTMonali Zeya HazraSenior Clean Energy SpecialistUSAID/IndiaEmail: mhazra@usaid.gov

Shubhranshu PatnaikChief of PartyUSAID GTG-RISE InitiativeEmail: spatnaik@gtg-india.com

Disclaimer This Newsletter is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this newsletter are the sole responsibility of Deloitte Consulting LLP., and do not necessarily reflect the views of USAID or the United States Government. This newsletter was prepared under Contract Number AID-386-TO-17-00001.

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